Abstractly Represented Money: Introducing Metamoney

In his pocket, Joe has an old leather wallet. It contains enough banknotes to buy him a brand new wallet of a better model he saw in a magazine. This buying power is exclusive to him, who alone can use those bills to buy something. Likewise, if he transfers them to another person, then instead of him, only this other person will own their buying power.

However, although Joe’s transferring away his banknotes can always transfer along their control, it could never transfer along their whole property, which is not only his. The bills, as possibly distinct from their purchasing power, do not belong to him alone. For example, he has no right to create or destroy them: they are public. What belongs to either him or whoever else controls any such notes is rather their buying power, which hence is privately owned.

Indeed, by always just privately owning his banknotes, Joe could sell them independently of their purchasing power, which they could not represent. However, selling them in this way would prevent him at least temporarily from using the same bills to buy anything. Then bitcoin mixer, by recognizing their lost purchasing power as a monetary value, for keeping which they must remain its representations, one can conclude:

  1. All monetary value must be private.
  2. All its representations must be public, or unsellable.

Still, if not Joe, then who else can sell, buy, create, or destroy his or any equivalent banknotes? This question should be negligible if what he owns is their monetary value rather than the bills themselves. However, since the purchasing power of each bill can change once people sell, buy, create, or destroy other such bills, the same question becomes critical. Indeed, part of its answer is that now commercial banks create most of the money supply by selling it, in a process called fractional-reserve banking.

Privately Public Money

Distinguishing the letter “a” from its verbal sound would prevent this visual representation of that word. Likewise, distinguishing a banknote from its exchange value as money would prevent this concrete representation of that value.

The resulting indiscrimination between a representing entity and what it represents must happen to all representations of something dependent on them by something independent from them. Indeed, the letter “a” does not depend on its dependent word, or a banknote on its dependent trade value as money. Likewise, bank accounts do not depend on their dependent balance, nor precious metals on their dependent buying power. Anything that depends on being represented by something independent from representing it becomes indistinguishable from that representing entity.

Additionally, only by being concrete can objects remain independent from what they represent, which they always do. Hence, each alphabet letter, banknote, precious metal, bank account, or other self-independent representation, even if just imagined, must be concretely objective. While conversely, because money depends on its own representation, all its concrete representations must remain indistinguishable from their monetary value, despite this value and those representations being always respectively private and public.

So letting money concretely represent its own exchange value is inherently problematic: the resulting indistinction between this concrete money and that privately owned value must privatize its otherwise public representation of the same value. Consequently, all such purely objective representations of money will require an impossibly privatized control of their still necessarily public, unsellable selves, whether by their private owners publicly selling, buying, creating, or destroying them.

Even so, Joe still privately controls the exchange value of his always public banknotes. Indeed, people have long expressed that value concretely, with not only banknotes but also countless other objects, including precious metals and bank accounts. Yet how could they do it? How did they solve the ownership conflict inherent in any such privately public representations of money? How could each concrete representation of money be both private and public? The solution was to delegate its privatized ownership to a public monetary authority.

People had no other choice: any privatized ownership of a still necessarily public entity can only consist in the privatizing delegation of its public ownership. Then, all resulting delegates will constitute one same body administering or governing this public entity: the state or government, part of which must privately control any object that concretely represents money.

However, the private and public ownerships of one same thing are still mutually exclusive. Hence, the public authority that results from privately controlling all concrete representations of money must rather be private. Eventually, this conflict will segregate all administration of money by governments into a privatized part of their public selves: a central bank. Indeed, any privatized power could only remain public as long as just part of it became private. So the same governments will become private by delegating all their control over money to that private part of themselves, which conversely will remain public just by belonging to them.

 

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