mindstalk: (CrashMouse)
Couple of similar articles on what to do after the breach: https://www.consumerreports.org/equifax/how-to-lock-down-your-money-after-the-equifax-breach/ and https://www.nytimes.com/2017/09/08/your-money/identity-theft/equifaxs-instructions-are-confusing-heres-what-to-do-now.html?_r=0

They skip checking if you're affected (answer: probably yes), and recommend putting security freezes and fraud alerts on your accounts. Big three, plus this other one, Innovis? Anyway, I tried.

Equifax: fairly easy for both. Claims it will pass the alert on to the other Big Two. Their idea of a freeze PIN is amateur hour bullshit.

Experian: freeze in place for $5. Option to provide your own PIN, or accept their random 10 digit one. Rejected my alert attempt.

TransUnion: failed to do anything, even by phone. Requires making an account to try things online; rejects 21 character account passwords.

Innovis: freeze and alert in place. I was not given a freeze PIN via webpage.

I also turned on my credit card's activity alerts, and got a ShopSafe number, basically a number you can use online with its own credit sublimit and expiration date. You can have many, so in theory you could have one for each vendor or subscription. My bank doesn't do activity alerts, which has me thinking about a different bank...

Money Changes

2012-Jun-02, Saturday 16:45
mindstalk: (Default)
So, the top lesson I got out of the Small Change book is how unstable and fluid money has been over time. Like, I get the impression that if money is stable over 30 years it's doing well. Or 60, anyway. An exaggeration? Maybe, but not a huge one. History seems full of shortage of small change, debasements, recoinages, shifts in silver and gold values and use, experiments with copper tokens, siege moneys of leather or other material, private tokens... plus of course a diversity of minted coins from lots of little kingdoms, and physical diversity even within a denomination due to wear and tear on coins. (So a coin might be 10% or more underweight, just from abrasion over 30 years. That's a lot of lost silver.)

Insert coin to read more )

The Conclusion?

Given how much things have changed, I suppose we could be a bit more humble, rather than assuming the current regime is the apotheosis of financial economics. ('We' = economists or lay followers, who assume floating exchange rates are great and gold standard advocacy a sign of crazy.) Maybe capital controls will become the next big thing. Maybe quantum computers and high end replicators will shred both electronic banking (due to cracking encryption) and paper money (easy counterfeiting) and we'll have to go back to commodity coins. Maybe central banks will have their independence revoked due to insufficient attention to full employment.

OTOH, there have been advances in theory, about the nature and effect of money; we live in the century of Keynes, Friedman, and Mundell, themselves standing on centuries of painfully learned lessons (still being learned.) And, there's a weak direction in history: token or fiat money keeps coming up again and again, not just due to sovereign greed but often due to a need for 'money' of whatever kind... even stamped leather strips. If you can prevent counterfeiting and keeping from overprinting, it works great. Well, until your central banks become so allergic to overprinting that they refuse to print enough, as in Japan, the EU, and US...
mindstalk: (Enki)
There's a book out there, David Graeber's Debt: the First 5000 Years, which I've heard about but not read, talking about the origin of money. This is one summary/review, including:

Graeber notes that the mainstream view of money as emerging from barter spot trades goes back to Adam Smith (Graeber 2011: 24). The modern neoclassical economics profession is obsessed with barter because they regard money as a neutral veil and their “real” analysis of economies is essentially that of a barter system

I'm currently reading The Big Problem of Small Change, a book Amy was reading sometime after we met. It includes (page 93 hardcover, Medieval Ideas About Money; Qualifications) the following translation of a bit from the Roman Digest (of law), 18.1.1, written by the Roman jurist Paulus before AD 235 (when he died.)

All buying and selling has its origin in exchange or barter. For in times past money was not so, nor was one thing called 'merchandise' and the other 'price'; rather did every man barter what was useless to him for that which was useful, according to the exigencies of his current needs; for it often happens that what one man has in plenty another lacks. But since it did not always and easily happen that when you had something which I wanted, I, for my part, had something that you were willing to accept, a material was selected which, being given a stable value (aestimatio) by the state, avoided the problems of barter by providing an equality of quantity (aequalitas quantitatis). That material, struck with a public design (forma), offers use (usus) and ownership (dominium) not so much by its substance (ex substantia) as by its quantity (ex quantitate), so that no longer are the things exchanged both called wares but one of them is termed the price (pretium).

(Source in Google Books, I think. I doubt we have any idea whether he was making this up, expressing common knowledge of the time, or referring to sources now lost to us.)

The author calls this obscure; seems pretty clear to me. Nothing says it's an accurate story, of course. But it is 1500 years earlier than Adam Smith, though still several centuries after the invention of coinage.


A few pages later is another translation, this of the words of Pope Innocent IV, who lived in the 1200s.

We believe, however, that the king, by his right, and by the fact that money receives authority and general acceptance from his effigy or mark, can make money of somewhat less, but not much less value than the metal or matter from which it is made. Therefore, in the first case, when he wants to diminish a money already made, we do not believe he can do so without the consent of the people, but with its consent we believe that he can, just as anyone is allowed to renounce his right. And because the business of the king is considered to be the business of all, for this reason the consent of the majority of the notables of the kingdom suffices.

Bolding mine.
The authors add:

The passage comes from viewing seigniorage as a tax. At the time, kings were expected to live from the revenues of their own lands, and taxes could only be levied with the consent of the people. The treatise on money by the Germany scholar Gabriel Biel repeats this doctrine and adds arguments that debasement is a relatively efficient and fair form of taxation, falling on all classes alike.

I'm guessing most of us don't at a gut level think of "no taxation without representation" or "consent of the people" in association with medieval kings, thus this blog post. At one level that's from not correlating the contents of our minds properly, as "The Call of Cthulhu" put it, at least for those of us who know what the basic function of Parliament or the Estates-General was, i.e. to be persuaded by the king into approving taxes. But I think it's one thing to know of a couple instances of that (or more, after I read about Spain's Cortes-General), and another to read a 1200s Pope say so, so casually.

Of course the bit about 'notables' means we're not talking super democratic here. But still.

Also, this article on the Estates-General said things I condensed as

elective component: elected by monks, by rich people in towns, in 1302.
1468 towns elect an ecclesiastic, noble, and burgess. 1484 invites all
estates to elect; universal and direct suffrage for all orders, but
countrymen couldn't get to town, so elected electors to represent them.
Early lots of control over taxes, ceded during Charles VII out of
"weariness" in Hundred Year's War. Refused to grant a regency in 1484.
1484 had deliberation in common; 1560 had orders deliberate separately.
Advisory on legislation; petition; could grant right to modify
fundamental laws of the regime.

And finally, just because it's too cool not to share at every opportunity, one version of the oath of allegiance of Aragon's nobility:

"We, who are as good as you, swear to you, who are no better than us, to
accept you as our king and sovereign, provided you observe all our
liberties and laws, but if not, not."


I have to say, while I hate to buy into "democratic Europe, Asian despotism", I haven't heard of anything similar in Asia, particularly in China, Japan, and India. At least on a robust scale; early India had some republics, and Buddha was probably born in one than as a prince, but my reading of medieval India did not include kings having to wrangle taxes out of their subjects. Then again, India's history is kind of lacking in detail. China and Japan seem more pointed examples.

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