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WELCOME TO PASSIVE BIBO CURRENCY
Copyright © bibocurrency.org 2012
(B.I.B.O. is an acronym referring to "Bounded Input Bounded Output" The sine-qua-non requirement for stability in the types of systems that include any money system. Passivity refers to a particular case of BIBO where output never exceeds input or in the case of currency, debt is always less or equal to prices i.e. money is not a negotiable object as explained in this document).
BIBO precisely defines stability in Control Systems Engineering. Understanding BIBO as applied to money systems is crucial as it provides a powerful basis for clarifying current money paradigm issues and the criteria for "unit stability" as summarised by the following theorem:
A Passive BIBO Stable Money System by definition implies that all of the system's component Transactions are also necessarily Passive BIBO Stable. Therefore, it directly follows that:
"If every Transaction is Passive BIBO Stable and all money created is necessarily a product of such Stable Transactions, then, all such units will necessarily maintain a Bounded ratio with all system inputs to those Transactions and therefore the units also will be stable by definition!" - Marc Gauvin and Sergio Dominguez - 2011 - See system overview
The significance of the above cannot be emphasised enough, as the math of stability categorically dictates that for the unit to be stable:
- It matters not who performs the Transactions that generate Currency
- It matters not when the Transactions are performed
- It matters not what Wealth is Transacted
- It matters not why we Transact Wealth
- It matters not how many units are generated
ALL THAT MATTERS FOR UNIT STABILITY, IS THAT THE TRANSACTIONS THAT GENERATE THE UNITS ARE PASSIVE BIBO TRANSACTIONS. ABSOLUTELY NOTHING ELSE MATTERS!
PUT ANOTHER WAY - INTERVENTION BEGETS INSTABILITY BECAUSE IN ITS ABSENCE PASSIVE STABILITY IS THE DEFAULT.
In layman terms, this means that stability of money is not determined by controlling the creation, quantity or so called "flow of money" but rather by the nature and definition of transactions. If all transactions are Passive BIBO Stable then the currency created through said transactions will also be stable.
Thus, suppression of people's commercial autonomy and freedom is NOT required in order to maintain a stable and trustworthy currency.