Bounded Input Bounded Output – How to design a stable currency
One of the major issues of our times is financial instability. Markets are subject to the availability of finance, which however tends to get syphoned off into purely speculative ventures. Consequently, production and trade suffer breakdowns because “there is no money”. So a stable currency and financial system could be said to be essential. Here is a proposed standard that would allow us to achieve financial stability by adjusting currency design.
From: Introduction to BIBO Currency
Stability is a universal concept used by scientists in both physical and logical systems that has never before been applied to “Currency Systems” in a formal fashion. Understanding exactly what stability is will help you see for yourself exactly why literally everything the current banking system focuses on to “stabilise” the system, is not only useless but entirely irrelevant because it is born out of a complete ignorance of stability and the most elementary concepts of Control Systems Theory.
It is therefore crucial to learn how and why the BIBO Currency Standard is stable and help disseminate this information to everyone before the definitive collapse of the current system takes place. So that when it happens, we will have the greatest chance to provide everyone with liquidity in a stable and trustworthy fashion, indispensable for accessing otherwise indivisible value to finance our survival in an orderly fashion.
In Control Systems Engineering, a system is considered “stable” when both its inputs and outputs are bounded values, hence the term “Bounded Input Bounded Output” or simply BIBO for short. Note there is the special case of a BIBO Stable system, where not only are inputs and outputs bounded but also outputs never exceed inputs. Such a system is said to be a “Passive” system, that is to say, such a system does not process to determine what the values will be, but rather simply associates and records them. All Passive systems are by definition BIBO systems but not all BIBO systems are Passive.
BIBO stability applies to all physical or logical systems of any size or complexity. As you will see, “currency systems” can be designed to be BIBO compliant without loss of functionality whatsoever.
More at www.bibocurrency.org/English/money.htm
Bringing money down to its very basic and at the same time simple foundation, this should open the way for some creative thinking on currency. What if we could, each one of us, bring currency into existence right at the act of exchange? How would this look in detail? How could larger investment type transactions be handled?
