Patri Friedman

If you short Basecoin, it's a near 0-risk trade. Keep shorting with large amounts and force massive amounts of bonds to be printed. If the peg holds, close your short with ~0 loss. If it doesn't you win big. Repeat until Basecoin breaks.

completely addressed here by basecoin team: http://www.getbasecoin.com/basecoin_faq.pdf … I think it's a great system @nadertheory is clearly smart enough to know how to design for the scenario you're proposing.

Huh, interesting argument about the interest rates in the FAQ. Seems like a convincing argument for why the particular scenario I mentioned wouldn't happen

Another criticism. The lower the price goes and the more bonds get printed, the lower the price each bond will sell for. The further you get from the peg, the less money each individual bond will remove from the system.

That's an interesting criticism, I think the response to this is that bonds have an expiry dates so that there will eventually open up more high priced bonds if need. But interested to see what @nadertheory has to say.

1/ I am in the process of trying to better understand systems that attempt to achieve a stablecoin (ie. Tether, Bitshares, etc) what would you recommend I could check out to help understand the process of trying to peg a currency to store of value?

I think the Basecoin white paper and FAQ are good primers: http://www.getbasecoin.com 

Cont. "Stablecoins" are just gen .5 of this type of money. I'm personally working on a theory paper. The more people that work on "decentralized monetary policy" the quicker we will see the day that crypto is actually used as real cash rather than speculation.