Hi Skot,

What an excellent summation of the current state you provided above. A gentleman above provided a history lesson about banking and banking philosophy. I think another interesting moment from banking history that may be worth visiting, and to help inform discussion around the current environment with debasement (look to financial markets for inflation central banks!); hangover effects, including a lack of public trust, from the Great Recession; and the emergence of blockchain technologies is the United States in the 19th century when each bank issued their own currency and their own notes. Eventually people realized one of the factors I mentioned in my fixed monetary supply piece, that currencies need a nearly universal demand curve to ensure liquidity.

For what it is worth, I am guessing what will happen going forward, is that several cryptocurrencies are likely to emerge that are transnational in nature and that are owned by the blockchain participants. I can even imagine very clever blockchains that layer in opportunities to exit into multiple currencies so as to hedge their overall liquidity risk. As for the banking system and Vollgeld, I have no idea what is going to happen. However, what I do know is that for Switzerland, that scion of banking, to be considering such a measure can directly be interpreted as a vote of "not much confidence" in banking and finance on the part of the public. However this happened is irrelevant, what is relevant is that society grants us a license to operate and a portion of society is saying that they still do not feel a sense of equilibrium with us.

Yours, in service,

Jason