Reader Interactions


  1. In my book Mistakes of the Monetary Reformers
    Jct: In your analysis, did you run across the grandfather of the online money reformers, the Banking Systems Engineer? A lot of problems have been raised with how community currencies run their chips. My thesis is that poker chips based on a Hour of unskilled (youth) time as numeraire (mechanics may score 3Hours/hour) and the bank run like a casino bank, exchanging interest-free credits for pledged collateral (time too) and wonder how anything can go wrong. In 1999, I spent 39/40 nights in Europe and paid by emailling an IOU for a night back in Canada worth 5 Hours, the international numeraire. Germany has $20 Greenmarks/hour, France 60 Greenfrancs/your, Canada $12 Greendollars/hour, US $10/hr, but between countries, we count Hours.
    Finally, http://johnturmel.com/unilets is the culmination of DIY P2P banking. Print up your time IOUs and I’ll take yours if you’ll take mine. And so will my online network of LETS timetraders.

    • Yes John I have.
      We’re both bloggers with brains, b*lls (and a bit of bravado too if we’re honest about it!) so in that regard yes I have connected with your work.
      Have you though run your solution through my criteria that I put in the book?
      The reasons that you (and all LETs systems) have very low takeup (compared to Legal Tender currency solutions) are first that the time isn’t right yet for widespread acceptance of Alternative Currencies, it’s coming but not for a while methinks.
      Secondly you give no reason for me to use your private currency.
      I already have trading partners and I neither profit from trading with your network nor benefit from trading with it.
      Except for philanthropy, third party transactions, international trading or some unusual circumstances, as a trader in Samoa I want goods & services in Samoa or value in some way coming to Samoa.
      With a perfect currency, I can do this by inverting the design paradigm from “build it – sell it” which is what you and all LETS systems have done/are doing.
      When you ‘get it’ let me know and we can take matters further.
      I suggest that you should think carefully again about this post and measure your solutions against it again.
      You should also perhaps consider carefully ALL the points I have raised in the Book.
      You strike out on many of them, although I respect your passion, commitment and experience in the business.
      I have brought a fresh analysis into the industry and as far as I can see am unique in what I say.
      Most people in this industry don’t think deeply enough and only go so far.
      You have the wherewithall to go much further than many.
      I suggest that you read the book – it’s free online.
      In regards to the unit of measure, a trader doesn’t care what it is – they mentally convert it back to what they can.
      If you are pegging to a Legal Tender currency then you are building inflation into your currency, a failure in design from the outset and one of the mistakes that Monetary Reformers make (trading away stability for ease of use) which is Error 2.
      Thanks for swinging by here and bothering to post what you did.

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