No. 829, Haw Haw!

"Stand and deliver!" shouted the highwayman."Your money or your life!" Whereupon one passenger in the coach handed his travelling companion five gold pieces. "What's this?" asked the other.The first explained, "It's the five gold pieces I borrowed from you yesterday."

Some will say that this Joke is so old, Christ heard it as the Resurrection. I thought, probably a very poor one at that, to explore the Economics behind the Joke; it does contain a smidgen of truth within it. The Individual returning the money had the least Opportunity Utility for the employment of the Coins, while the Recipient had the longer possession of the money; i.e., the greater Opportunity to draw a Profit from control of the financial reserves. The Recipient actually held Gold in question in a state without claim, having already earned the value of the Coinage; so that the validity of its Theft would not be questioned by Recovery authorities. The Individual paying back the loan not only developed a high Opportunity Profit–having the immediate ability to terminate Debt without Cost–but achieved this Repayment schedule at minimal effort and Risk.

The Reader will now immediately assume I am also attempting a poor Joke. Some I must admit! There are several elements to be explored, which offers some intelligence about the transaction. The Owner/Recipient of the Coinage was the original Owner of Record of the Gold, purportedly having earned the Value entailed, and who had already assumed a Risk position of Lender, with the expectation of restored Ownership sometime in the future with Repayment of the loan–possibly with Interest. His assumption of the Risk position already established his willingness to gamble with the Money; the potentiality of Theft only heightening the Risk. He had assumed a contractual obligation of Risk-Taker, even though it was undefined.

The Borrower had previously established a diminished capacity to earn the amount in question, through the simple practice of requesting the loan; he had not earned the money, but wanted the Opportunity utility of expenditure of the funds in a manner which would allow Repayment of the debt. Normal Debt theory would imply loss of the Coinage through Theft would eliminate the Borrower’s ability to repay the Debt; nullifying the Conditions of the original Contract. The Lender seemingly did not stipulate the Terms under which the Debt was to be returned with Security precautions, as the Borrower extended the repayment at opportune time. Responsibility, therefore, fell in total measure on the Lender; who had already extended coverage of the Risk. I personally always like to repay my debts in the midst of a Poker game, where there exists a Secondary opportunity to Profit in a manner which is legal. lgl