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02767: Re: [WDDM] Economics and Change

From: Joshua N Pritikin <jpritikin(at)pobox.com>
Date: Mon, 17 Jan 2011 14:37:07 -0800
Subject: Re: [WDDM] Economics and Change

On Mon, Jan 17, 2011 at 02:30:30PM -0800, Joseph Hammer wrote:
If you give me a loan to eat lunch, and then I pay you back the loan, it is
self-liquidating. This is true whether I traded the loan for food, or if I
invested it in Tennis Shoes and bought food with the profit. Perhaps I
bought lunch and seventy pounds of ferret meat to sell in Elbonia. The
particulars of what I do with the capital have nothing to do with whether
the loan is self-liquidating.

If I borrow money and pay it to a worker who makes me a widget for my
nightstand... and then he buys lunch with the money, and I sell my old
widget to pay you back... self-liquidating. There are endless ways the money
could bounce around once you loan it, but if I pay it back, it is
self-liquidating...

You are getting confused looking at multiple transactions. Just look at
a single transactions at a time.

which is a fancy way to say, people have to pay you back. Jargon.

No, it has meaning in the context of a single transaction.


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