The last post Open Source Revolution offered a platform for economic evolution. Here are three ideas to discuss:
Abundant currency frameworks
Currencies are always backed by something. Sometimes by bullets. But people need something more stable. Why put your eggs in one basket?
Only 40 years ago, US dollars could be traded for a weight of gold from the Fort Knox reserve. It’s uncertain where that gold is today. Either way the modern dollar is backed by confidence. Nothing more. We trust in the machinery of central banks to print and dispose money so the value of exchange can be maintained.
Importantly money must not be laundered. Fraud undermines value and so government issued monies are protected by legal and military jurisdiction. But these risks could be offset by multiple currencies. Recognized frameworks and trusted clearing houses could put commodity backed currencies in the control of new groups. Existing precedents on state control would be diluted by massive peer to peer exchanges. Confidence and trust would be instilled by transactions that trade stock rather than speculative value.
Value is many things to many people. We all have something of value. We value many things such as expertise, passion or time. Pasture, seed or livestock. Media, art or information. The list goes on… So why employ a single managed currency to maintain these values? Why hedge against a single measure of confidence? Why base an open currency against banks or even governments?
Public acceptance of complementary currencies could base trading infrastructures across multiple commodities. This diversity would isolate economies from melting down amidst global financial shocks and related domino effects.
By basing all currencies in national terms, we leave the world exposed to political turmoil. Enabling new diverse currencies backed by commodity rather than national whims would bring new ability to offer credit lines linked with actual market demands so as to enable business and communities to tune their produce and society into actual local needs.
The potential is for people to employ money, risk, credit and collateral for a more focused and specific advantage. Currency fluctuations would signal market opportunities leading into greater distribution. Producers could safeguard supply chains without needing excessive hedging portfolios or risk insurance.
Ultimately, it is liquidity; the pace of currency exchange that fuels market dynamics and circulates wealth amongst society. The faster money travels, the more value can be created. If models can be accepted that are clean, transparent and stable then more exchange can occur. The value would still lie in demand, but the issuing framework would be adaptable to any place or purpose.
Recognised frameworks can help here. A spectrum of currencies can be stabilized by pegging exchange rates and standardizing methods of exchange so transfer is accepted as norm.
In this capacity, a money issuing framework that is open source and founded in Copyleft would allows new groups to make their own forms of money based upon the new objective. These peer to peer exchange could occur without usury. Deep redistribution of money frameworks could allow residual improvements. Thus allowing for economic growth within network nodes rather than just in the core institutions. The fabric of society could be richer for it.
Local collaboration networks
Re-localisation of capital may not even require federal money systems to be weakened or removed. Strong universal currencies do offer a stable value exchange. Links with stable political systems offers long term security for people, trade and society. These are good things.
Management of national currencies should democratize. Money must support the people it serves.
One first step toward collaboration is the removal of parasites. For instance consider the removal of interest components in the creation of authentic new money. After all, national currency should not carry any private entitlement.
Neither does spending money into existence belong in a secret domain. Money is presently issued by banks on the basis of their lending. But in truth money should be spent into existence by democratic institutions. This can be done free from autocracy by transparent systems.
For instance, an array of networked hubs could offer community lending schemes. This networked financing would distribute risk, promote the build of infrastructure and facilitate payment of original finance entirely free from interest bearing debt.
All this would mean money can be created locally, used for a purpose, paid back in principal and then recycled for a new purpose or withdrawn from circulation.
It’s an efficient system that prevents inflation from dissolving the value of your savings.
The innovation here is an empowered network model as opposed to a centralized system. The construction of a hive instead of a pyramid scheme.
If interlocked communities can manage money supply through acting as smart hubs in a wider distribution network, then what collateral does the central model truly offer?
To explore this, imagine an operating method that encourages community design projects.
For instance a community could maintain an idea bank. One to which anyone is encouraged to submit development proposals. Ideas might be simple or complex, stored in a database and available for all to review. These briefs and assignments would be considered by varying skill levels of society in a collaborative format that allow enhancements from various esteem levels.
The economic aspect comes with the community supporting which of them it chooses to build. By this simple democratic function the hub commissions the best ideas on behalf of this economic region.
The commissioning decision should be a democratic process. For instance, designs would be voted on locally. A backlog of ideas could be maintained on a revolving popularity consensus. Final authority would come with resource availability, individual votes and local prioritization.
The venture capital necessary for these realisations would fuel the actual money creation.
Money issued would directly fund a popular initiative. It would also lead into job creation against local designs and ongoing social services to ensure sufficient skill level.
Measuring progress would relay over the network to a type of metrics interface offering live updates on the status of all various schemes throughout the country. Real GDP in each various areas and in real time. This digital interface could enable user profiles and search modes, map renderings and detailed project views. Open and collective visibility would help to manage the risks of project failure. All of which would preserve the value of the end currency. In theory only factors such as poor design, project failure or resource availability would lead to devaluation since these would prevent credit repayment. Blame education and seek to continually improve. It’s a collaborative economy.
Spend filters on taxes
The concept above involves types of information currency. The implication is that packets of money can be re-programmed by the user. This networked mode of currency creation can also follow into taxes…
So let’s imagine tax payments might incorporate spend filters. You can program your tax payments with how that money should be spent next;
For instance my taxes might be programmed with a 25% split across health, education, waste and utilities.
When the authorities spend that money then they must assign equal credits to recognized parties within those categories. It’s an financial exercise in true democracy.
Banking measurements would plot the distribution of wealth and spending for all to see. In this vision, Government becomes an advisory rather than dictator.
Governments would be elected with clear objectives. Imagine fusing democracy into the economy.
Now let’s imagine, that money is taxed over time. At the end of each month, you need to buy a stamp that prevents your money from devaluing. Essentially, the more you hoard, the more tax you pay. People would cycle that money faster and faster, just in order to get the most value.
If you think we can improve society by building an economy that is open source, interactive and transparent then please add a comment, use your imagination and collaborate.
Create your own open source society. Start your own revolution.
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Totally agree, money wouldn't be laundered if we want to have a stable economy.