[P2P-F] + Cosmolocalization Scrip ? Re: What happens when a state doesn't control its own monetary creation ?

[Dante-Gabryell Monson]

Places / real economies like Greece ( although Estonia would also be an
interesting place as its government already invested in blockchain database
solutions )

could imho benefit from a state guaranteed Cosmolocalization Scrip

https://en.m.wikipedia.org/wiki/Scrip

For example, a government could decide to issue Scrip ( the state of
California did issue IOU's, a few years back, that could be used to pay
taxes )

and decide to spend it into existence in sectors of the local economy it
could even decide to define and update ( using scrip in the form of a token
/ smart contract ),

ideally to generate access to currency in parts of the economy that are
under served in currency, and especially to enable services and production
that can reduce dependency on imports and/or bootstrap sectors that could
also lead to exports.

It could also track usage of the scrip through analytics enabled by its
tokens on its blockchain ( or holochain ? ) , understanding the effects and
usage of the scrip. ( potentially anonymized ? )

This would fit perfectly within a Cosmolocalization narrative.

Such a Scrip could also function so as to reduce paper work ( online
accounts, digital payments ) and be adapted, not to replace Euros, but as a
complementary currency. For example, imported goods might only have a
percentage of the price of the good related to local services in cosmo
scrip.

The government(s) could also generate demand for the scrip by accepting it
as a medium of tax payment. Although to avoid it replacing all euro tax
income, the government(s - including regional or local ) could for example
accept only a certain percentage of a persons or company's scrip as tax
payment. Similarly to a dual complementary currency mode used for other
goods.

It could experiment at first with anything that is locally produced, and
also start by allocating an addition to the current euro salary of
government workers, in scrip.

If successful, it could also enable loans in scrip, by local businesses
that can use it to develop local production ( and ultimately reduce the
need for imports ),

and it can also strategically enable clusters of interdependent businesses
that can benefit from each others services,

and can also ultimately facilitate online markets and a c3 ( commercial
credit circuit )


https://tradingeconomics.com/greece/balance-of-trade

https://tradingeconomics.com/greece/current-account



On Fri, Dec 28, 2018, 07:53 Dante-Gabryell Monson <dante at ecobytes.net wrote:


Just brainstormed this on fb :

As long as there are foreign currency reserves ( usually trade surplus vs
the currency ), the state could spend as much as it needs into creation,
and as long as this spending meets development it doesn't necessarily mean
inflation.

Hyperinflation happens so as to reduce the capacity of each to buy imported
goods, in a situation of severe trade disbalance and a scarcity of foreign
reserves. Deflation in the case of not having control on your own currency
and monetary supply drying out.

Currently, limitations imposed on european states are meant to avoid
inflation, and/or debasement, or rather, they are meant to enable private
sector such privilege in creating markets and hence directing society in
the direction it sees fit, rather than the state.

Although limitations on spending doesn't necessarily benefit the real
economy, nor quality of life through access to currency in certain lower
social classes.

What currently happens, is that we depend, in the Euro Zone, exclusively on
a monetary monopoly controlled by private financial networks of
corporations.

...

An additional aspect being credit peak, which works in the context of debt
that has to be repaid.

Since the 70 ies, banks imposed on states not to create their own money
into existence, and instead leave such monopoly to private banks, bringing
us in a "state of submission" to private finance for access to currency.

Taxation, initially, could serve to control monetary mass. It was not
needed to fund the state.

But in the current context, states are obliged to borrow from financial
institutions, and hence politicians are pressured to make sure they can
continue paying interest on the debt.

To oversimplify : not only is this theft ( transfer of property ), but it
is depriving a large part of the population of the currency it needs to
generate services between each other and hence increase each other's
quality of life !
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