[than3]

This was done in the past. Money lending (usury) was outlawed.

For 100+ years, interest above a certain percentage was outlawed until congress created a exclusion loophole for federal financial institutions.

If you haven't already read the book "Debt, The First 5,000 yaers" by David Graeber, I think you'd get a lot out of it.

Also, Market system's aren't a silver bullet.

[willmadden]

I’m not talking about outlawing usury by fiat, more the automation and extension of equity markets into the general economy using smart contracts for ar/ap using margin calls for unpaid bills and a pre-defined money supply currency as the unit of account. Credit at interest would not be supported and would be unnecessary.

[_siis]

I never said fiat, I said usury (interest), and that goes on any underlying asset.

I see where this is going though. Its not a new idea, it runs very close to similar lines of thought put forth by the authoritarian socialists.

It all sounds like a magical utopia until you get into the details. Promises are put forth, but once power is ceded, abuses happen. Those in power will claim "but those only happen because there is not enough of power and we face oblivion, anyone not with us is against us, they threaten our future", and the fools that are scared will believe it, and they are the ones that allow everyone else to become slaves. Its part of a common authoritarian playbook, and has happened many times throughout history.

https://www.mit.edu/people/fuller/peace/war_goering.html

When you look at the requirements for clearing at a national scale, it requires a centralized system with coercive control, and absolute information (future sight). For the most part those systems only operate efficiently because of corruption, and there is no future sight thankfully.

It doesn't address a number of issues with any centrally planned economy and without incentives it must be centrally planned to produce goods. Having assets without being able to use them means no property rights. The borgeioux/monopolists take over and the common man only needs bare subsistence. That's fine in a pre-limits of growth world but we'll be at 9B people soon and predefined currency pool without expansion doesn't take into account population growth. So given contention, who decides who lives and has children, or dies and doesn't. In that kind of system, the people at the top.

You end up with no investment, no companies, and no future within a generation or two (20 years = 1 generation).

Inevitably shortages occur, and when they do it causes death when its a strategic good (i.e. food). That death also won't be coming to those at the top while there's such a larger pool below. The people at the top need the good more since they are responsible for decisions that impact the whole. Sometimes its necessary to cut off a leg so the body can survive. Its important that the designated people can continue to make these important decisions in times of crisis... so they would say.

You can tweak those systems any number of ways and end up with the exact same outcome when you don't address the core problem of economic calculation which doesn't have a solution in centrally planned economies. Its not new, its old, there's quite a large body of material from the 1920s-1940s on it.