Patrick, I am well beyond Money as Debt, though about three fourths the way through that video Paul Grignon starts to present what he calls "value" based money, and he never actually develops the concept other than an anti-thesis to debt based money. If Paul had done some more research on the field of alternative economic models MMT/aka Modern Monetary Economics would have shown up as the primary economic discourse which is pressing for a value based currency primarily by way of funding physical and social infra-structure, and of a living wage on a counter cyclical basis. Your IOTA system seems to coexist well with the Community Reserve Exchange (aka CRX) system, which is also based upon MMT/MME, and a number of other accommodations. The primary difference is that the Community Reserve Notes (aka "CRNs") are used as the currency unit and are established in an analogous way, by volunteering labor toward the operation of community et al organizations (think: social infrastructure) which are listed as cooperating organizations. Once the CRNs are in circulation they can be used as the basis of the exchange of goods and services. As to "bleeding," it seems to be more of an understatement under a privatized, monetary process, as in more on the order of a massive torrent to the level of bleeding out. In designing the CRX I hoped to persuade the network of monetary reform advocates to consider this as way of simulating a reformed currency environment, or going-autonomous Unfortunately the American Monetary Institute, for instance, is deeply invested in a legislative political route of reform without creating a wider public education process by practice. http://www.economics.arawakcity.org/node/892 Tadit On Thu, 22 Sep 2011 11:13:09 -0400, Patrick Anderson <[email protected]> wrote:
Tadit Anderson wrote:
mask the reality that "credit" is debt by another name.
This is difficult to picture at first.
Try the movies: "Money as Debt", "Secret of Oz".
If currency is put into circulation on a debt-free basis by the sovereign government, the the private investors, including banks will not acquire the huge returns achieved for private interests by way of the debt basis of the issuance of currency.
In System terms, debt is a "resource leak", that draws value out of the local economy to external entities.
sustainability will be vastly better served by a fiat, asset based(aka debt/credit free) currency issued by a sovereign government.
Yes, while I imagine we purchase land and tools to create small-scale Villages which are then sovereign governments in their own right.
Here's a sketch of my thinking for a currency that is backed by the Means of Production and Promises to Labor from Workers or from guilds or unions of sorts.
---- Groups could issue what I've been calling the IOTA - the Intra-Owner Trade Agreement which is backed by:
- Commitments of Sources: These is the physical assets needed to produce food and shelter for those Villagers.
- Commitments of Skills: These are the various kinds of goals that need to be accomplished within the Village.
The IOTA is invalid Unless both of these conditions are met.
--
The IOTA enforces the following constraints on the Sources:
- Product is Investor's Return: The Product is not sold*, because each Villager already owns the exact** amount of Product from their ownership in Sources. * Surplus can be sold to those who own insufficient Sources. ** Predictions are never exact, but we can 'hover' nearby. Most Villagers will 'overcommit' as Insurance against low production seasons.
- Profit is Payer Investment: When Surplus is sold, to non- owners, the Profit must be treated as an Investment from that Payer - so that latecomers gain as much control as they are willing to Pay, and ultimately Work for.
----
Patrick Anderson http://SocialSufficiencyCoalition.BlogSpot.com
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