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The BankOfAnewGo operates without a fractional reserve.

From 'On Buying and Selling', by Kahlil Gibran

To you the earth yields her fruit, and you shall not want if you but know how to fill your hands.%%%

It is in exchanging the gifts of the earth that you shall find abundance and be satisfied.%%%

Yet unless the exchange be in love and kindly justice, it will but lead some to greed and others to hunger.

It is time to redesign our economy. Capitalism has rejected gold and sliver standards in favor of an an apolitical federal reserve system driven by objective measures. This system controls inflation and unemployment, but is unable to sustain growth reliably. A new system can encourage growth by capitalizing on FutureValue, as in the current system, objective criteria and the free market are necessary controls.

Money represents credit, not value. In the sixties lots of us thought about alternative economic systems. Communism without objective criteria and the free market controls failed miserably. Most of the chit systems devised seemed to just be another form of money, only with grass roots origin rather then government control. Most were based on some kind of barter credit. It seems to me that to be valuable in the new economy a new currency would represent trust and value rather than just another form of money representing credit. An open market would assign value to chits that anyone could issue representing some future value.

We already have currencies of various sorts that are based on future promise. Coupons, airline miles and WikiSmiles are forms of FutureValue based currencies only as good as the issueres integrity. Even a check is a promissory note anybody can write. Stocks and bonds also represent FutureValue.

IF we can devise a FutureValue currency that people trust, we can use it to capitalize on value we will create in the future rather than mortgaging that which we already have. IF we can access future value with integrity such capital could allow unprecedented growth. BIG IFs....

Chits can't replace money, but are an alternative currency that can generate economic activity over and above that provided my money alone, allowing stuff to be created ItFromChit.

Many types of chits can be devised. An open market in chits may include coupons, lottery tickets, airline miles and other existing types of chits. It could include vendor (customer incentive chits) and personal chits and chits issued by foundations or other organizations. The free market would determine cash values today of the future value tomorrow allowing conversion between various chit types and between chits and money. Each person can trade chits, assign a cash value they will accept for various kinds of chits they have, and use an appreasal services to set prices for their chits that they are willing to sell or trade automatically on the network.

A fully decentralized chit trading system on the Internet could make chits a viable currency. Free chit generation and trading for individuals (with ads) and low cost entry (competitive pricing) creation and trading for business. Like stocks, chit trades are based on belief in the future value of the chit, which may become cash. a product, a service or some ownership of some future value that is potentially greater than zero. It is an investment if you pay for it, or just a perk or vendor promise which endears you to the issuer (vendor, person, org, ...) if they follow through on providing value for it.

The biggest IF is IF we have they vision to free ourselves from the limitation of money and the willingness to supplement our money based on credit with currency based on trust and value, interest free capitalization can make the economy soar and we can populate the galaxy and beyond.

lets do LETS, or rather GETS. and model a Global Exchange Trading System assimilating all Local LETS in our own bank and encourage others to do the same, sharing, in part, the risks and benefits in a decentralized manner rather than a dependence on central banks. I believe we can find a consensus in this arena and build a prototype for the new global economy.

For success, a three prong attack may be necessary, at the federal level with the Monetary Reform Act,, at the state level, with a constitutional amendment prohibiting federal debt, and from the grass roots up transcending national boundaries.

The third prong in the fight for monetary reform is the creation of redundant decentralized global exchange trading cooperatives.

  1. many grass roots currencies exist which can be assimilated by international trading cooperatives.
  2. international cooperatives can avoid being regulated by any one government that would restrict free trade.
  3. anyone can start a Local Exchange Trading System and join international cooperatives.
  4. it provides an alternative to national currencies in times of economic turmoil.
  5. its maximally decentralized global chaordic structure makes it immune to domination by any group.

Human organizational arrangements do not survive and thrive based on their inherent goodness or their spiritual alignment to the needs of the human soul. They survive and grow because or the inherent competitive advantage they hold relative to other organizational structures competing for resources within their shared environment.

So ... our problem is ultimately not the Federal Reserve. Rather it is that we need to create an decentralized organizational structure that competes successfully against the hierarchical control structure model which is currently taking over all of humanity and is choking our planet to death.

This is not as difficult as it sounds, because the hierachial control model results in organizations which are hugely inefficient and susceptible to challenge and defeat.

Competing head to head against the chaordic model on an efficiency basis, the hierarchical model would easily be defeated. However the operators at the center of the hierarchical system are assassins and they regularly kill off competition whenever it gets too close. I mean this both figuratively and literally.

What cannot be killed off is an idea. An idea so powerful that people would instantly see the wisdom in it, they would use it to their own advantage and spread it widely to their friends and family until it could never be stopped by killing off any one person, or company or technology.

Vouchers or coupons are money and ought to be applied in the NewMoney in the AnewGo NewEconomy and generally in directing government spending of all nations.

This idea can be applied as in the grass roots economy described at along the lines of the Internet rfc3506 - Requirements and Design for Voucher Trading System (VTS). Many Local Exchange Trading Systems are based on vouchers, often in the form of promises for future work, something the unemployed have a wealth of to offer. The ultimate value of money is its future value, not present debt. Enslaving oneself to future work ought be a last resort unless it is doing something you would do for free. There is always the risk you would need to redeem yourself from such bondage at a higher price.

A real trick would be to split any increased or decreased value of a voucher with the owner of the resource being vouched for such that they are not deprived of their labors and assets unfairly at the time of the sale. This requires no enforcement if it is built into the trading system we choose to use. If for example, farmers had a choice of selling their crops in a current future exchanges and risking a loss with the potential of unbounded gains, the accountability of the farmer and value he generates is immediately rewarded and the risks are shared.

The ideal would be a credit card that would automatically find and trade personally trusted vouchers as is possible before using any actual money in addition to printed vouchers, coupons and chits representing their value.

Such a system can be funded by the coupon/voucher advertisers. e.g. " BRANDCASTER™ delivers coupon offers from the biggest brands, matched to your site and your visitors. You earn money for every coupon printed. "

But such systems ought be done in a distributed decentralized scalable manner to avoid generating any new powerful interests and preserve the spirit of the free market.

Are you sure that by future value you don't really mean present value? "Future value" sounds suspiciously Enronesque.

If you were to ask me, I'd tell you the problem isn't the implementation of currency, it's the acceptance of dominance/submission relationships as an immutable part of the human condition. But I have my own axe to grind.

The bulk of participants on this site, in spite of their dissatisfaction with some aspects of the status quo, seem to agree on the notion that the market mechanism is a good thing. That's probably why the overall tone of the site has the look and feel of a cross between a sales pitch for an MLM and a credo for a cult.

"Libertarians" remind me of the "sheep" characters in Orwell's "Animal Farm"

Sheep: Four legs good. Two legs bad.

Libertarians: Private sector good. Public sector bad.

LOL==== I am quite willing to entertain discussion about a better market mechanism. What do you envision?


You have problems with the dominant/submission of relationships? I've always preferred my relationships to be as between equals. However, I notice that over time, most relationships do transition into one of dominance/submission. Someone has to take the lead, someone has to be the peace maker, etc etc etc. Such things tend to lead relationships further down the D/S trail. The only way I can see to stop that, is to break off that relationship once it has transitioned from between equals to D/S.

And I'm not sure we can help it. You are trained in growing up in D/S structures. As an infant, you are dominant over your care giver. You are hungry, they feed you, etc. Sometimes, they aren't very good servants, but still... ;-) In time, you become submissive to the authoritan of the house (if you are close to the mainstream in western society). Regardless, you will have innumeral relationships growing up, and those will be D/S. (Teacher-Student, Coach-Player, Senior-Freshman, whatever.) Your friendships of equality will still end up in D/S cliques. Perhaps you are the jokester, being the domaniant one to keep everyone's mood up. Or the organizer, deciding what the group does, when, or whatever. Regardless, relationships between equals is the rarest relationship you will ever have. And in general, it is merely a temporary position until the balance of D/S emerges. ---StarPilot

Enron is a PopularScience approach to economics. Almost everyone can make money in a bull market, but in a bear market most people have to lose. Any scheme that implies otherwize is bogus and destined to Enrons fate.

Indeed I mean future value. Like discounted bonds, but accessable to the average joe. Present value is finite, future value is unlimited. The idea is still half baked.

The current system is rather arbitrary, but it does have checks and balances build in, the wise investor makes money while the foolish investor goes broke. This provides the proper incentives for wise investment. The limited pool of capital means that only the most promising enterpises are funded.

The new future value economy will have to mimic these controls using objective criteria.

Although an open market in chits might be one mechanism supporting future value trust currencies it is not enough in and of itself. At some point real money will probably be required, as it is not reasonable to expect everyone will accept chits for 100% payment. Many direct costs will require cash, while profits may be accepted in chits. Here we may need some sort of self insurance accross the system for sharing risk. Damn, it is starting to sound like money again.... to be continued...

That's the problem, isn't it. Chits, currency, money.... it's all the same. Even if you do have an open market, there's still the HumanGreed, infallible for every situation. The HumanGreed would work in almost every situation, ruining from a free market to the market we have today. A different market doesn't matter, for money is rooted deeply in everything.

An open market is one where pricing is determined by supply and demand. When suppies are limited, the greedy hoard the supply so they can charge any price they want. Having alternatives makes it more difficult for the greedy to hoard the supply.

In the short term, capital is limited, and it is controled by those who own it. It may be that many of these owners are greedy, but the limit of the supply is the present value of assets, not greed. Greed actually encourages investment that can create value in the capitalistic system.

 The present system has not failed. It has been resilient, and evolved to support a great civilization. Yet we are always reminded, the it is a chaotic systems that is inherently unpredictable. PertibationTheory and NetworkTheory prove that small influences can generate global outcomes. What WE do determines whether we have another great depression or the economy sustains 20-30% return on investments (like Enron) continuously. People call me an optimist, some people thought Enron could work in a fluctuating market. It is foolish to think you can sustain growth playing a ZeroSumGame.
New economic systems can't eliminate the inhuman treatment of employees and VultureCapitalism that greed generates, the most we can do is insure greed does not destroy our planet should we fulfill our responsibility to invest our common resources profitably for humanity in a DeclarationOfInterdependence.

Our shared natural resources represent a tremendous value thousands of times greater than present assets of everyone in the world put together. We could capitalize on that value. Put togrether a viable plan to add value to those resources greating things of lasting value and we can capitalize on that added value. The supply of capital need not be limited by present value of investor assets. It must by limited by the actual value created or inflation will result.

And yes, the rich and powerful will surely block any liberation of the market that reduces the advantage they now hold for as long as they can. But the market has changed, and is changing, eventually, the market will be reengineered to maximize the creation of value and sustainance of growth. WE can help make it sooner rather than later. Hopefully before we go the way of the dinosaurs.

Currencies not issued and controlled by government which earn trust by fairly representing future value, plus currencies based on the value of our shared resources, represent additional capital that can free human enterprise from present value credit based capital limitations, i.e. classical and modern money. The additional economic activity generated using these currencies will feed more babies than we could otherwize. We have a responsibility to employ these means in the NewEconomy and populate the galaxy and beyond rather than accepting and weathering the ressessions and depressions that may send us the way of the dinosaurs. -- JimScarver

We can apply new economy concepts to AnewGoEconomy

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