tag:blogger.com,1999:blog-4169740113013066976.post2401854676554099759..comments2024-02-10T12:12:06.028+00:00Comments on The Real Blog: Why the design of money is going to changeDavid Boylehttp://www.blogger.com/profile/11410159311875228620noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-4169740113013066976.post-37449958390251691762013-07-09T21:07:20.149+01:002013-07-09T21:07:20.149+01:00Thank you, Chris. That's a really useful cont...Thank you, Chris. That's a really useful contribution - and thanks so much for taking the trouble to write it here!David Boylehttps://www.blogger.com/profile/11410159311875228620noreply@blogger.comtag:blogger.com,1999:blog-4169740113013066976.post-65161174876028190482013-07-07T14:36:10.603+01:002013-07-07T14:36:10.603+01:00It was a pleasure to run into you and other friend...It was a pleasure to run into you and other friends and acquaintances equally monetarily geeky.<br /><br />I think that pervasive instantaneous connectivity - particularly using mobile devices - changes everything, in ways which are inadequately understood.<br /><br />Nowhere is that more evident than in the field of monetary systems, and their component elements of value accounting; unit of measure for value; time (ie credit= time to pay) and so on. <br /><br />There is no longer any need for an intermediary middleman - whether Public (Treasury/Central Bank) or Private ('for profit')- to come between the sources of credit and the users of credit.<br /><br />In my analysis, there are two bases or sources of credit. Firstly, there is the capacity of people, individually or collectively (public and private entities) to provide goods and services.<br /><br />Secondly, there is the use value or production over time of a productive asset. Indeed two thirds of money in existence today is backed by the capitalised use/rental value of land.<br /><br />The former is the basis for the credit which enables the circulation of goods and services and the creation of new productive assets.<br /><br />Credit card systems like VISA and Mastercard essentially guarantee the credit of buyers obtaining goods and services from sellers. Both sellers and buyers pay in one way or another for the use of the system and settle credit in fiat currency, but note that THERE ARE NO DEPOSITS. Merely by existing, these systems drive a coach and horses through mainstream economics.<br /><br />There are other means of people-based credit creation and clearing, and these currently involve centralised issuance of a complementary currency. The best example is the Swiss WIR, which essentially uses the Swiss Franc as a unit of account but SETTLES credit in goods and services, with a framework of trust based upon security over property.<br /><br />Complementary currencies like the Bristol Pound do not create new credit and surplus value - they simply keep existing value local, which is great but doesn't get us too far.<br /><br />The new Sardex initiative in the economic basket case of Sardinia aims to build upon the WIR, and I recently outlined at a brilliant University of Cagliari workshop how that may be done by extending the Sardex system from businesses to individuals. The key to this is a new framework of trust - a Guarantee Society - and the use of generally acceptable currencies, particularly local land-based currency consisting of prepaid rental credits, and non-local energy currency consisting of prepaid energy units returnable in payment for energy use.<br /><br />It is in fact possible to introduce a P2P credit creation and clearing system with no central issuer and currency at all, where P2P credits are settled through the generation of 'chains' A>B>C>D>A.<br /><br />Anyway: if anyone has read this far, they might be interested in the recent presentations I prepared for a recent Schumacher institute gig in Bristol re 'social contracts'<br /><br />http://www.slideshare.net/ChrisJCook/social-contracts-clearing-union<br /><br />http://www.slideshare.net/ChrisJCook/social-contracts-green-dealChrisJCookhttps://www.blogger.com/profile/04210399176675359293noreply@blogger.comtag:blogger.com,1999:blog-4169740113013066976.post-12270709868422482482013-07-06T21:39:45.571+01:002013-07-06T21:39:45.571+01:00Joel, I think the work on this has been done by an...Joel, I think the work on this has been done by an Italian historian called Luca Fantacci. I'll have a look online now.David Boylehttps://www.blogger.com/profile/11410159311875228620noreply@blogger.comtag:blogger.com,1999:blog-4169740113013066976.post-44554777140946042762013-07-06T13:46:25.831+01:002013-07-06T13:46:25.831+01:00As noted at the time, I agreed with the thrust of ...As noted at the time, I agreed with the thrust of your talk, although I think it is rather inconvenient to carry multiple currencies. To use a parellel from linguistics, it is possible to have a dual language system, in which the globally connected (i.e. elites) use a different language for interaction than they use in their locale, but it is rather inefficient to have multiple languages commonly spoken in the same locale. <br /><br />I'm also extremely interested in continued conversation about the monetary innovation necessary for the construction of Gothic cathedrals...Joel Dietzhttps://www.blogger.com/profile/14614151638168602620noreply@blogger.comtag:blogger.com,1999:blog-4169740113013066976.post-48404015368701469872013-07-05T16:43:21.627+01:002013-07-05T16:43:21.627+01:00This comment has been removed by a blog administrator.Anonymoushttps://www.blogger.com/profile/09974468592078412218noreply@blogger.comtag:blogger.com,1999:blog-4169740113013066976.post-28633546137361913792013-07-05T14:44:24.591+01:002013-07-05T14:44:24.591+01:00What a good idea - we could save the NHS at the sa...What a good idea - we could save the NHS at the same time!David Boylehttps://www.blogger.com/profile/11410159311875228620noreply@blogger.comtag:blogger.com,1999:blog-4169740113013066976.post-63671177627173988292013-07-03T10:40:26.678+01:002013-07-03T10:40:26.678+01:00Interesting. I heard a proposal on Monday that th...Interesting. I heard a proposal on Monday that the Bank of England could issue money to pay of the debt incurred on NHS PFI contracts, hence leaving the different PCTs considerably more solvent. What do you think?Anonymoushttps://www.blogger.com/profile/12225476589722336008noreply@blogger.com