Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
It is an accounting solution because a monetary system is an accounting system. The Swiss WIR is a case in point, and there is nothing 'imposed' about that. Swiss SMEs have used that system as 'consenting adults' since 1934 when the banking system failed them.

The simple solutions I am proposing - and I submit they ARE an order of magnitude simpler than the smoke and mirrors of central banking, QE, CDS, CDOs and the like - are consensual as well. I confess that it genuinely surprises me that you consider a Clearing Union approach 'baroque' in comparison, although it is more complex than a gift economy, I grant you.

No one has to use partnership-based agreements, whether for risk sharing of mutual credit - as in the illustration above - or in revenue or production sharing agreements relating to productive assets.


This is no different in principle to fiat banking, which uses financial engineering for political ends.

There is all the difference in the world between this consensual model and the fiat banking which administratively confers value upon something which is its antithesis - a claim over value issued ex nihilo. The value in the above model is whatever the parties consensually agree - no more and no less.

In some cultures trust exists and does not have to be supplemented, and in due course I hope that we will transition to such a gift economy. It seems to me from your apparent antagonism to any sort of rules basis for exchange, that this is your hope as well.

I have seen such a transition occur (I am on the board of Letslink UK) in LETS groups where the participants ceased to keep score and simply continued exchanges among themelves without accounting for transactions. On the face of it these were 'failed' LETS groups, but the truth is that they were in fact a complete social success.

In the meantime, I see such consensual agreements as a route for the transition away from the toxic financial system which is essentially imposed upon us by the current banking and other monopolies.

ie we have to get 'there' from here, and if you have an alternative proposal to achieve this transition, then I genuinely look forward to hearing about it.

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

by ChrisCook (cojockathotmaildotcom) on Mon Nov 16th, 2009 at 01:38:34 PM EST
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