Quote from: Fuserleer on January 15, 2017, 04:01:03 PM

Quote from: deisik on January 15, 2017, 03:54:58 PM

Quote from: Peachy on January 15, 2017, 03:34:35 PM

If instead there was an autonomous computer that continuously monitored the supply of coins relative to the overall demand for them and instantly deposited the newly created supply into each citizen's wallet at a proportional and fair value relative to their existing holdings then the net effect would be a zero increase in inflation since all holders increased their holdings at the same level as before the increase. However, the new supply now enables businesses to continue operating and growing at optimal levels

There is no need in an outside computer

The system can be easily self-regulated. Create a bank inside it that would be able to create money when an entrepreneur needs to expand production and comes to the bank for a loan. Set interest rate to 0, and you will get basically the same result without externally manipulating the money supply. If the borrower defaults (e.g. his goods are not in demand or whatever), the bank sells his collateral or his assets and destroys the money

I think you are missing the point

There is no need for a bank, or debt for that matter, at all in such a system. Nor is what I propose an "external manipulation", it's totally internal and governed by the actors of the system itself (everyone agrees that more/less supply is needed and who gets it).

If you introduce a bank to manage the loans and supply it then becomes centralized and the bank can refuse loans and thus manipulate the value....which is the exact opposite to what we want.

It is a moot point really

I could just as easily challenge your stance by claiming that the actors of the system might disagree on how much they would want to increase or decrease money supply, and now what? In this sense, the bank would be more useful. Basically, it is the "autonomous computer" that runs inside the system itself. It is interesting as a feedback mechanism that allows automatic regulation of money supply in this society. Let's assume that its aim consists exclusively in creating and destroying money as required, i.e. not in manipulating it