Can You Have Your House And Spend It Too?By George Dyson, a historian among futurists, is the author Baidarka; Project Orion; and Darwin Among the Machines. George Dyson's Edge Bio Page
The breakthrough was in money being duplicated: the King gathered real gold and silver into the treasury through the Exchequer, with the tally given in return attesting to the credit of the holder who could enter into trade, manufacturing, or other ventures, eventually producing real wealth with nothing more than a notched wooden stick. So what's the problem? Aren't we just passing around digital versions of the tallies we've been using for almost one thousand years? Aren't mortgages, whether prime or sub-prime, just a modern version of paying for houses with fraud-resistant sticks?
Introduction
George Dyson writes: "Readers of Nassim Taleb's The Fourth Quadrant may enjoy the following piece on fraud-resistant financial instruments of the 13th century—progenitors of a multitude of derivatives that are plaguing us today."—John Brockman
"What remedy is there if we have too little Money?" asked Sir William Petty (the author of Political Arithmetick, designer of an ill-fated high-speed sailing catamaran, and cofounder of the Royal Society) in his brief Quantulumcunque Concerning Money in 1682. His answer, amplified by the founding of the Bank of England in 1694, resonates to this day: "We must erect a Bank, which well computed; doth almost double the Effect of our coined Money: And we have in England Materials for a Bank which shall furnish Stock enough to drive the Trade of the whole Commercial World."
