<div dir="ltr"><div dir="ltr"><br></div><div class="gmail_quote"><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex">This seems pretty much what MMT economists are describing, coupled with localization (michael schulman) currencies,<br></blockquote><div><br></div><div>what I don't see is the 'cosmo' part,</div><div><br></div><div>feasible, but politically without much traction for the moment,</div><div><br></div><div>Michel </div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex">
<br> <br>
Message: 2<br>
Date: Fri, 28 Dec 2018 10:17:13 +0100<br>
From: Dante-Gabryell Monson <<a href="mailto:dante.monson@gmail.com" target="_blank">dante.monson@gmail.com</a>><br>
To: p2p-foundation <<a href="mailto:p2p-foundation@lists.ourproject.org" target="_blank">p2p-foundation@lists.ourproject.org</a>><br>
Subject: [P2P-F] + Cosmolocalization Scrip ? Re: What happens when a<br>
state doesn't control its own monetary creation ?<br>
Message-ID:<br>
<<a href="mailto:CAGaoiphwvZcNJHYtmC1isWJaby6vzktVUcwdpEQ7LGsSfm1Ang@mail.gmail.com" target="_blank">CAGaoiphwvZcNJHYtmC1isWJaby6vzktVUcwdpEQ7LGsSfm1Ang@mail.gmail.com</a>><br>
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<br>
Places / real economies like Greece ( although Estonia would also be an<br>
interesting place as its government already invested in blockchain database<br>
solutions )<br>
<br>
could imho benefit from a state guaranteed Cosmolocalization Scrip<br>
<br>
<a href="https://en.m.wikipedia.org/wiki/Scrip" rel="noreferrer" target="_blank">https://en.m.wikipedia.org/wiki/Scrip</a><br>
<br>
For example, a government could decide to issue Scrip ( the state of<br>
California did issue IOU's, a few years back, that could be used to pay<br>
taxes )<br>
<br>
and decide to spend it into existence in sectors of the local economy it<br>
could even decide to define and update ( using scrip in the form of a token<br>
/ smart contract ),<br>
<br>
ideally to generate access to currency in parts of the economy that are<br>
under served in currency, and especially to enable services and production<br>
that can reduce dependency on imports and/or bootstrap sectors that could<br>
also lead to exports.<br>
<br>
It could also track usage of the scrip through analytics enabled by its<br>
tokens on its blockchain ( or holochain ? ) , understanding the effects and<br>
usage of the scrip. ( potentially anonymized ? )<br>
<br>
This would fit perfectly within a Cosmolocalization narrative.<br>
<br>
Such a Scrip could also function so as to reduce paper work ( online<br>
accounts, digital payments ) and be adapted, not to replace Euros, but as a<br>
complementary currency. For example, imported goods might only have a<br>
percentage of the price of the good related to local services in cosmo<br>
scrip.<br>
<br>
The government(s) could also generate demand for the scrip by accepting it<br>
as a medium of tax payment. Although to avoid it replacing all euro tax<br>
income, the government(s - including regional or local ) could for example<br>
accept only a certain percentage of a persons or company's scrip as tax<br>
payment. Similarly to a dual complementary currency mode used for other<br>
goods.<br>
<br>
It could experiment at first with anything that is locally produced, and<br>
also start by allocating an addition to the current euro salary of<br>
government workers, in scrip.<br>
<br>
If successful, it could also enable loans in scrip, by local businesses<br>
that can use it to develop local production ( and ultimately reduce the<br>
need for imports ),<br>
<br>
and it can also strategically enable clusters of interdependent businesses<br>
that can benefit from each others services,<br>
<br>
and can also ultimately facilitate online markets and a c3 ( commercial<br>
credit circuit )<br>
<br>
<br>
<a href="https://tradingeconomics.com/greece/balance-of-trade" rel="noreferrer" target="_blank">https://tradingeconomics.com/greece/balance-of-trade</a><br>
<br>
<a href="https://tradingeconomics.com/greece/current-account" rel="noreferrer" target="_blank">https://tradingeconomics.com/greece/current-account</a><br>
<br>
<br>
<br>
On Fri, Dec 28, 2018, 07:53 Dante-Gabryell Monson <<a href="mailto:dante@ecobytes.net" target="_blank">dante@ecobytes.net</a> wrote:<br>
<br>
<br>
Just brainstormed this on fb :<br>
<br>
As long as there are foreign currency reserves ( usually trade surplus vs<br>
the currency ), the state could spend as much as it needs into creation,<br>
and as long as this spending meets development it doesn't necessarily mean<br>
inflation.<br>
<br>
Hyperinflation happens so as to reduce the capacity of each to buy imported<br>
goods, in a situation of severe trade disbalance and a scarcity of foreign<br>
reserves. Deflation in the case of not having control on your own currency<br>
and monetary supply drying out.<br>
<br>
Currently, limitations imposed on european states are meant to avoid<br>
inflation, and/or debasement, or rather, they are meant to enable private<br>
sector such privilege in creating markets and hence directing society in<br>
the direction it sees fit, rather than the state.<br>
<br>
Although limitations on spending doesn't necessarily benefit the real<br>
economy, nor quality of life through access to currency in certain lower<br>
social classes.<br>
<br>
What currently happens, is that we depend, in the Euro Zone, exclusively on<br>
a monetary monopoly controlled by private financial networks of<br>
corporations.<br>
<br>
...<br>
<br>
An additional aspect being credit peak, which works in the context of debt<br>
that has to be repaid.<br>
<br>
Since the 70 ies, banks imposed on states not to create their own money<br>
into existence, and instead leave such monopoly to private banks, bringing<br>
us in a "state of submission" to private finance for access to currency.<br>
<br>
Taxation, initially, could serve to control monetary mass. It was not<br>
needed to fund the state.<br>
<br>
But in the current context, states are obliged to borrow from financial<br>
institutions, and hence politicians are pressured to make sure they can<br>
continue paying interest on the debt.<br>
<br>
To oversimplify : not only is this theft ( transfer of property ), but it<br>
is depriving a large part of the population of the currency it needs to<br>
generate services between each other and hence increase each other's<br>
quality of life !<br>
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