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There is a qualitative difference between:

(a) unsecured credit ("time to pay") which allows "money's worth" to circulate, and

(b) secured credit - which is essentially static, and is repaid from payments which people make in relation to the "use value" of the money's worth created eg buildings or (in the case of land, and knowledge) an "enclosed" Commons.

The vast bulk of money in existence is in fact "tied up" in productive assets, mainly land, but increasingly, knowledge. It's not actually circulating at all.

The solution I advocate is for secured credit to be replaced by a new generation of "Equity" consisting of what is essentially fractional ownership of land, and the value invested in it.

Such Units - being exchangeable for the right to occupy land - would be generally acceptable in the relevant area.

Cross border value exchange, on the other hand, requires a global reserve currency, and the logical candidate for this is a Unit redeemable in energy.

The point I am getting to is that the circulating credit obligations to which you are referring (our existing IOU money) do indeed have a "zero sum". However,the bulk of credit ever created in fact not circulating and is tied up in claims over productive assets which have anything but a zero sum.

We call this a "National Debt", and what is needed IMHO is an evolution to a "National Equity" - giving rise to a citizen's dividend, among other things.

Unfortunately the ownership of these productive assets has become concentrated in fewer and fewer hands, because the "Debt/Equity" financial system - and all the rhetoric and structures which back it - has evolved in this way, to have this effect.

This is not because an "Intelligent Design" (Illuminati, Bilderberg etc) is behind it and planning it, but because the motivating self interest of the whole class of those in power has driven the evolution of these frameworks.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Wed Dec 17th, 2008 at 09:04:17 AM EST
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