Trust Velocity

A Differential Equation for Trust

Although it is hard to know what money is - we have only seen its carriers (coins, bills, credit cards) but never money itself - one thing we do know very well is its related concept - interest rate. So

interest - i = time value of money

or in other words

r (risk free rate) + s (credit spread, reverse trust factor) = i = d(M)/dt [first derivative of money with respect to time]

Now, let's say trust u = 1/s, ie, infinite spread -> no trust

and conversely, infinite trust -> zero spread (government)

so rewriting:

r + 1/u = d(m)/dt

Next, let us look at the two possible cases:

1. r = 0 (zero real interest rates)

We now have:

1/u = d(m)/dt

integrating both sides wrs time yields:

M = integral(1/u)

That is, we observe that money is some kind of integral of trust, or 'super' trust. The real essence of money is that it is not a measure of trust, but 'super' trust, like it says on the bill - 'In God We Trust'

2. s = 0 (zero credit spread)

Only some governments have that, or rather it's the rate at which governments lend each other. What's the body in place to directly influence that? The World Bank

In World Bank We Trust

So even if there is no God, we can all rest in peace since there is always the world bank.