I’ve just completed an intensive study on economics and the nature of money for a business that I established last year (2012). For Club Samoa we wanted to have a simple, stable, equitable international currency that was not affected by recessions, global market conditions nor subject to the Money Power manipulations that seemed to be the norm.
The end result of this is that the world now has a true “Open Source” currency available – unlimited Lines of Credit, interest free, peer-managed and as pure a currency as you can get. Ownership and management of the currency will be put in the commons on or before March 2016, hopefully sooner.
It’s a long story, but I’ve analysed money since I was knee-high to a grass-hopper – usually “from the outside” if truth be known!
I collected coins as a teenager; laid in bed at night dreaming up a million ways to rob banks and commit the perfect crime; invested into a gazillion hair-brained schemes that sometimes got me my investment back, sometimes didn’t and occasionally returned a profit.
Over the years as I dug deeper into the activities of the Illuminati and learned the way the debt-money system works, I found myself understanding more and more about how the elite consolidate wealth, using deception, usury and the central banking system to do this. As the onion skins came off, one by one, I was fascinated and wanted to know more. I wanted to understand this thing called money. I wanted to know how the systems worked. Recently, as a result of needing give our investors and clients a way to trade internationally with confidence, I found myself literally compelled to push on until I really and truly “got it”.
In all subjects, you can learn without limit. They say that the more you know, the more that you know that you don’t know, but I’ve found that there always comes a time when the penny drops, and you understand the big picture. It happened to me quite spectacularly a couple of decades ago when trying to understand the issue of creation and evolution. It happened to me when researching the Power Money scheme a few years ago and several other meaty subjects. I can say that I understand people, marketing, the power of the Internet and myself.
Now the penny has dropped with me on the matter of money (for the record, it was when I read Marc Gauvin’s very technical but logical Scientific and Legal Rationale of money).
The key thought for me is this. If an acre, hectare, metre, kilometre, inch, pound (weight), day, month, year and so on are all units of measure that don’t COST anything to use, WHY ON EARTH IS MONEY SO DIFFERENT?
And if a unit of measure costs nothing to create, why do I pay interest on using a unit of measure?
I’m no stranger to making money. I was the top salesperson in the history of my company in my first serious sales position. I conceptualised a separate investment division for personalised number plates in NZ, even writing a blueprint for Murray Thom, the then owner before I was 30 years old. He then used my ideas to build a multi-million dollar market in investment plates, so I knew and know how to make money. But while turning a $5.00 piece of aluminium into thousands, may have been a thrill and paid the mortgage for a month or so, doing it and really understanding it are two different things.
The purpose of this post is not to explain how money or the money system works, nor to promote Club Credits, but rather to answer the question that is at the core of the Alternative Currency movement’s problem, so eloquently put (again) by Greco:
What will it take to make mutual credit clearing networks go viral the way social networks have? That is the key question, the answer to which has heretofore remained elusive. (Source)
The answer within the AC community is to generally to take an existing business model (Mutual Credit Exchanges) and tweak it and promote it.
Greco’s own advice follows this pattern:
Here are the things that I believe are needed for cashless trading based on mutual credit clearing to go viral:
- Members need to offer to the network, not only their slow moving merchandise and luxury services, but their full range of goods and services at their usual everyday prices. This will assure the value of the internal trade credits and make them truly useful.
- Like any “common carrier,” trade exchanges should make membership open to all with little qualification.
- Lines of credit (the overdraft privilege), however, must be determined according to each member’s ability and willingness to reciprocate, measured, for example, by her record of sales into the network.
- Trade exchanges must be operated for and by the members in a way that is transparent, open, and responsive.
- Members must exercise their duties to provide proper oversight and supervision of those assigned to manage the exchange.
- There must be sufficient standardization in the operation of trade exchanges to assure that their internal credits maintain comparable value
My responses to his suggestions are:
1. This encapsulates the real problem perfectly: A limited view of a network. People are not interested in a network. They want a currency that is trustworthy and usable. A good or true currency does not care too hoots whether people are buying a lot or little, or even if they trade in high value or a low value items. That is an economic health and social matter, not a systemic currency design component.
2. Easy access to all is agreed but again we are talking here about Trade Exchanges. I’ve been a member of multiple Trade Exchanges and I can tell you that at the end of the day I don’t care if I am a member or have joined or what my status is – I look for the best currency that I can use to achieve the purpose of the business opportunity I have in front of me. Best to forget the exchange, and focus on the currency.
3. The principle of the need to manage LOCs is agreed but Greco’s example is very limited. Sales MAY have an influence on this, but so too does integrity (trustworthiness), equity, amount, previous lending, the timing and circumstances of an LOC and much more. The real issue though for an ubiquitous MC system is not what the LOCs are but HOW they are determined. I’ve addressed this issue in much detail with our currency Club Credits as the issuing of LOCs (the creation of money) is a crucial component, one actually very well understood by the “banking class”. My unique solution to this challenge is what I view as the ultimate in simplicity and logic, applied without fear or favour, and another key to making our system scalable.
4. Transparency, openness and responsiveness are not currency issues, which is what the people need and want. It is also a shallow handling of philosphical issues such as the balance between confidentiality and openness – loosely spoken of as transparency. In a distributed ownership model, with Open Source thinking this “own and control” mentality may not apply. Transparency at a macro level may be quite sufficient and confidentiality at a lower level could be retained. This is not just a simple issue and Greco misses the entire key to understanding how to establish a ubiquitous MC system with a narrow mindset that there is “someone at the top” (either an automated system, or a human). It need not be this way.
I’ll leave his last points for the moment.
Such limited thinking within the AC community prevents the creative, open, lateral thinking that I think is desperately needed.
The true nature of the “problem” is one of self-interest, It’s often called greed and the Central Banking cartel cop a lot of flak in this regard.
The reason that the central banks have done so well is the same reason that anybody does anything in the world, self-interest, essentially a manifestation of pride. Their pride uses the tool of usury in their system (of debt-based currencies) which they sell (market) to politicians, leaders, you and me who then voluntarily, consciously, choose to buy.
But, THIS IS A FREE WORLD and just like anyone else in the AC movement has, they have every right to design a monetary system, implement it and sell it to humanity. That usury causes inflation is well known. That they buy power with the money is a given, but in my book they still have every right to offer their services to mankind. I don’t like the deceptions associated with their marketing and I don’t like the social consequences of inflation and their debt enforcement processes but they have this god-given right.
Just like the Good Book says though, the people will always get the leadership that they deserve!
Greco has a million answers and all good. He understands plenty and has taught me a lot. He understands the problem and has identified it well. He knows solutions in a general sense and sees them working in practice but because he doesn’t understand people, or hasn’t yet connected the people-factor into economic and system structure he cannot see the answer to his (and the AC movement’s) problem.
So while it is not my wish to change the world (I just want to live simply and do my own thing), the best way to change the world is demonstrated by the old story of how to catch a monkey.
Put a peanut in a jar. The monkey will grab the peanut, will not let it go and then get trapped.
This dogged determination to hold onto the peanut is just like the 99% who are willing participants doing so out of their (foolish) self-interest, even though they know that something is or could be wrong, and many times even though they know what is wrong.
You can’t tell people to change and expect them to change. You can’t preach, or use logic. Wishing for change is also lunacy. So too is attempting to change any system from within. All effective systems have working defense mechanisms built into their design otherwise they would not be effective! Tackling a systemic problem by attacking an entrenched system is generally a big challenge and is usually futile.
So how do you affect change?
If you start a war, nobody wins and if you shoot the monkey then the “bad guy” actually wins!
Do you tell the monkey that he doesn’t need the peanut? It’ll just laugh at you!
You (we) have to get smarter.
No major change will occur unless the Alternative Currency proponents understand that they must use what they have in their hands AT THE MOMENT creatively to affect change.
With the monkey? Just put out a plate with another peanut preferably a sweeter peanut or with more peanuts! He’s sure to drop the one he has and go for the better one(s). And to get a groundswell change in society, then you just tell the monkey that if he gets more of his mates he can have more where that came from.
This is the principle of viral replication based on personal self-interest.
Getting people the world over to let go the peanut (i.e. to move to CC or free-money systems) is unrealistic (short of some global spiritual/global consciousness or other miracle of change) unless there is a compelling reason to do it. When push comes to shove, most people actually don’t care about the state of the world (especially if it means pain or loss to themselves), so logic, truth, preaching, pleading and suchlike will never work other than on a small level amongst like-minded people.
The only CC that will gain global acceptance is one that has self-interest for the participants embedded. Self-interest therefore must be a given in any scaleable currency design. It’s a constant that any long-term effective CC must acknowledge and then cater for. The smarter the system is at rewarding the participants, the more effective it will be at replication.
The next question is then, how should a system (the form of currency) cater to the self-interest needs of the participants?
So when you look around for the most effective viral replication models MultiLevel Marketing systems (MLM) stand head and shoulders above the rest. When you combine simple MLM principles into the CC paradigm, the answer is staring us right in the face. Tweak the implementation a little and let the masses own it, play with it and stand back to watch the fireworks show!
Again, the Central Bankers understand people. They understand greed. They understand self-interest. That’s why they have such an effective marketing machine and business model. Of course, as a result they are rich, and of course they effectively rule the majority.
That’s the way life is. I work harder – I eat better. I work less – I am hungry!
Now that just like the bankers, I know and understand the nature of money and people, Club Credits is my answer to Greco’s (and the AC movement’s) core problem – the key to scalability and obtaining ubiquity.
I would note here that my intention was to solve a specific business problem that I had, not to change the world or take on the Central Banking Cartel, but if the Club Credits currency meets my needs and our clients needs, and if it is a well designed currency, then it will become as Greco says “go viral” and become ubiquitous.
At present the Club Credits currency is only used privately, but I will update this post when the currency is available to the public, hopefully quite soon.
I have completed the Draft Charter and will have registrations of interest available online in due course. In the meantime, feel free to drop me a note if you are interested.