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Money with expiry date

What if my salary expired after 90 days? I would have to spend, invest, or lose the money, saving is not an option. With elecronic cash, it would be possible to track each pound and give it a date after which it would no longer be valid.

An advantage of this is that the currency could be gold backed (cheating?) or limited by maths (à la bitcoin). However GDP should go up, creating employment, since the velocity of the money should increase. Investing would be an option, helping business to grow.

Something like this may be needed with universal income, to make sure the money is spent. Inflation is one way to get people to spend, but always ends badly.

There are some practicalities. E.g. money between individuals would still expire, but money paid by a medium/large business into a bank would get a new 90 day start.

Reply to
Dave
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It's called inflation, Your Honor! The usual assumption is 5% annually.

Reply to
Mr. Man-wai Chang

Yes, either, or both, could be used, but would this be a requirement? And currency could be backed by gold now. It wouldn't require it be electronic. I don't see it happening, however.

A problem I see is with gifts. If I should gift X amount to a person or charity, does the expiration date change? If I give my children X amount each week as an allowance, are they required to spend it within the time allotted me, or do they get a fresh 90 days. What if one child wishes to buy the newest game console and opts to save up to buy it. To reach the required funds, it will take them 120 days. If the money expires at 90 days, they will never be able to reach the amount needed. The same could apply to a charitable organization. Charity "A" may wish to help in the purchase a specific medial device for a local hospital. In order to reach the amount needed to meet the finical burden they have, it might take six months with standard donations. But they can never reach that level due to the money expiring after 90 days, or less, of the gifted money being received. There would be some real advantages to expiring money. You point out GDP. But there would be a lot of disadvantages that diminish any advantages.

Reply to
KWills Shill #3

The problem with FIAT money is that someone gets the idea that more is better, and it ends badly with bubbles and inflation. The problem with gold standard money is that the rich and powerful get to accumulate the money, and everyone else is at subsistence level to serve their needs.

Whereto? Maybe someone can get a prof. to sponsor a paper about this. The possibilities of electronic money are not just negative interest rates.

Reply to
Dave

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