I think you are reading this wrong, or at least reading into it. In a RL economy people don't store their money under their beds, they put it in banks. Banks then lend it out, therefore the amount of money in the economy is a meaningful measure. But since in Eve we all keep our money under our mattresses (or if you prefer, the only trusted bank in Eve, the wallet which doesn't make loans) the quantity of money is pretty much meaningless and doesn't correlate to any measure of inflation. That is all he is saying.

If we all had to put our money in player banks, and if those banks had to lend out most of that money to stay in business, the price of everything would go wacko. Just please put this silly idea out of your head. We don't want your bank.

Sentence preceding the one quoted in the OP:

"The velocity of money falls steeply and steadily from the start of the graph, January 2007, until late 2008. This is happening at a time when the money supply was growing. "

When did EBank run? Oh yes, between 2007 and mid-2009.

Funny.

Need a way to deal with trust, or are you setting up a proposal for NPC run banks?

Trust is a much more complex and nuanced topic. If someone tries to launch a Bank I'll probably talk about it more then, however I will say this; EVE is more about managing risk then managing trust.

Isn't Iceland all about banking, why do we even need to talk about this, I'm sure CCP can call in some local experts.

= )

But in all seriousness, CCP has a very hands-off approach to the EVE economy, and I do not think they are, nor should be, interested in solving the problem of banking for the players. I am in complete agreement with Hexxx on that point. If banks are ever created in some sustainable form, it should be from player ingenuity.

Most people wouldn't use a bank in the real world if they had an Eve wallet. I suspect most money in banks earns no or virtually no interest and is only there for security and the convenience of transfers. Eve banks are actually worse than keeping the money in your own wallet on both those counts.

Maybe the Eve economy needs lending but the average player has no desire or need for a bank.

Well humanity thought they were the top chain food now for a few century, they were wrong.

They have the worst predator they could ever imagine that kills humans every day by millions: bank and their weapon is monetary system.

Their technique is now better than first vague in 1930's, much better because since then they don't really need world scale conflicts to kill entire populations, even thou they still do it, but this time a little bit everywhere.
You know it, you see it, you probably have friends or family already victim of those but you do nothing afraid that your turn is next.

Your money has no other value than the one they decide it worth, you can't do whatever and you will not do whatsoever because your worthless clueless money junky leadership is dependant of a predator that put them in place and depend like a junky depends on his daily ****** dose.

Another failure: Madoff everyone?


And you want to come feck me in the game with that crap again? - go die

No need for in game banks, never.

Well what we're getting into here really in terms of the creation of semi trustworthy banks is whether or not ccp is going to create more complicated tools for what have been up to this point completely voluntary and trust based transactions. Ultimately ccp is the only completely trustworthy auditor (at least if they aren't you're screwed anyway so don't worry about it).

But we need some tools, a functioning stock market, or bonds, loan contracts, something like that.

Having to rely on external tools and markets, although there are a couple, they don't have much wide spread use, they're not very visible, and in the land of constant scams there's a huge hurdle there as it is.

Most people wouldn't use a bank in the real world if they had an Eve wallet. I suspect most money in banks earns no or virtually no interest and is only there for security and the convenience of transfers. Eve banks are actually worse than keeping the money in your own wallet on both those counts.

Maybe the Eve economy needs lending but the average player has no desire or need for a bank.

Auditing is a 3rd party detective control against fraud - it will only detect fraud after fraud has happened. Auditing is absolutely useless in PREVENTING fraud.

Well humanity thought they were the top chain food now for a few century, they were wrong.

They have the worst predator they could ever imagine that kills humans every day by millions: bank and their weapon is monetary system.

I think having a savings and loan bank is an interesting idea in principle but there are two major problems:

1) you can't do anything about it if someone doesn't pay back their loan. (and if someone can put up the collateral they usually don't need the loan).

2) nobody in this game can be trusted to run it.

I think before any theory crafting about a banking system can even begin, these two problems need water-tight solutions. Otherwise, the whole discussion is pointless.

how would you like the thought of an automated loan system that automatically withdraws money from your wallet after the arranged time?
would that be bad for the sandbox?

I borrow a zillion isk, move it to another alt and biomass the borrower alt. Good sized sandbox breaker right there. But it's a lot more fun, if the automated system withdraws money from my wallet whether I have it or not. It'd be a race to see who's first to break wallet functionality with an out of bounds negative amount.