From: hughes@ah.com (Eric Hughes)
Date: Tue, 3 May 94 10:57:46 PDT
To: cypherpunks@toad.com
Subject: The American money capture
In-Reply-To: <9405031416.AA24171@acs5.acs.ucalgary.ca>
Message-ID: <9405031733.AA28937@ah.com>
MIME-Version: 1.0
Content-Type: text/plain


>The trust issue is fungible.  If you trust Yankee greenbacks, and
>my receipts rank pari-pasu, with them, then you trust my
>receipts.  

Not completely fungible.  There is also trust in the trustee as a
trustee, who could abscond with the whole sum suddenly.  

This point is extremely important.  The difference between "your
receipts" and someone else's means that you don't have a completely
fungible system.

>No reserve is necessary, because I don't make loans.

It appears that you have 100% reserves, from the phrase _pari pasu_.

Eric