Friday, March 13, 2015
  Defunging

Vaguely outlining the first stage of an idea, tied closely to earlier thoughts on economics as a verb.

Caveat: The goal is important, but the method I'm suggesting here is non-functional. It clearly won't work. Maybe it will trigger a better idea by a better thinker.

Goal: Seems like there should be a way to re-establish real value without going all the way back to barter. A way to have a portable currency that tells you something about the source of its value. Most big stores won't care, but for those who do care, this currency would allow you to trace how it was generated. This will eliminate fungibility. It will give more discriminative power to merchants, who can encourage specific types of work by pricing things differently. (eg Your money comes from speculation? You pay double.)

Method: First step is to take 'fractional reserve' away from banks. Loans are a destroyer of value, NOT a source of value, so new currency shouldn't be created by loans. Value is created by LABOR and INVESTMENT IN PRODUCTIVE FACILITIES, regardless of whether the investment came from borrowing or saving. And it's better all the way around when everything comes from saving.

So: new value should be created each time someone is paid for LABOR. When the automaker pays an assembly-line worker for a week of wrench-turning, or when you pay the dog groomer for an hour of careful nail-cutting and hair-trimming. New value.

New-value payment should be in the form of a physical thing with built-in data. Smart card or similar. You can then use the smart card directly to pay for your gas and hamburgers, or you can pour its value into your account where it MAINTAINS ITS SOURCE INFO. Your account will then mostly contain value that you created yourself by working, plus a mix of other things like tax refunds and inheritance. Because the tax refund came back from money you created, the gov't would have to preserve your labor-signature on the refund check.

Here's where the idea blows up: When I pay you for fixing my roof, I'm paying with value that I've already generated. How would this system recognize that I'm creating or crediting new value by paying you, while simultaneously decreasing or debiting my own stored labor-value? If my account doesn't decrease by the amount I pay you, I've got a bottomless cup. I don't have an answer for this question yet.

= = = = =

Later thought: The first part of the goal, snatching currency creation from the banks and handing it to the real creators, is dead easy. The mechanism already exists in many countries and has a painfully obvious name. Value-Added Tax. Whether you actually impose the tax or not, use the basis numbers for VAT to control the money supply, and take banks and the Fed out of the loop. As for the second part, preferential rewards for real creators, how about imposing the VAT backwards? If you are generating value by labor or retail sales, you don't pay the VAT. If you are destroying value by speculating or lending, you pay the VAT for everyone else.

= = = = =

Another sidenote: This short feature on the history of the 2-dollar bill mentions that for many years the Two did tell you something about the source of its value. Racetracks and whores used Twos almost exclusively. When you spent a Two, it told the recipient how you spent your time.

Labels:

 


<< Home

blogger hit counter
My Photo
Name:
Location: Spokane

The current icon shows Polistra using a Personal Equation Machine.

My graphics products:

Free stuff at ShareCG

And some leftovers here.

ARCHIVES
March 2005 / April 2005 / May 2005 / June 2005 / July 2005 / August 2005 / September 2005 / October 2005 / November 2005 / December 2005 / January 2006 / February 2006 / March 2006 / April 2006 / May 2006 / June 2006 / July 2006 / August 2006 / September 2006 / October 2006 / November 2006 / December 2006 / January 2007 / February 2007 / March 2007 / April 2007 / May 2007 / June 2007 / July 2007 / August 2007 / September 2007 / October 2007 / November 2007 / December 2007 / January 2008 / February 2008 / March 2008 / April 2008 / May 2008 / June 2008 / July 2008 / August 2008 / September 2008 / October 2008 / November 2008 / December 2008 / January 2009 / February 2009 / March 2009 / April 2009 / May 2009 / June 2009 / July 2009 / August 2009 / September 2009 / October 2009 / November 2009 / December 2009 / January 2010 / February 2010 / March 2010 / April 2010 / May 2010 / June 2010 / July 2010 / August 2010 / September 2010 / October 2010 / November 2010 / December 2010 / January 2011 / February 2011 / March 2011 / April 2011 / May 2011 / June 2011 / July 2011 / August 2011 / September 2011 / October 2011 / November 2011 / December 2011 / January 2012 / February 2012 / March 2012 / April 2012 / May 2012 / June 2012 / July 2012 / August 2012 / September 2012 / October 2012 / November 2012 / December 2012 / January 2013 / February 2013 / March 2013 / April 2013 / May 2013 / June 2013 / July 2013 / August 2013 / September 2013 / October 2013 / November 2013 / December 2013 / January 2014 / February 2014 / March 2014 / April 2014 / May 2014 / June 2014 / July 2014 / August 2014 / September 2014 / October 2014 / November 2014 / December 2014 / January 2015 / February 2015 / March 2015 / April 2015 / May 2015 / June 2015 / July 2015 / August 2015 / September 2015 / October 2015 / November 2015 / December 2015 / January 2016 / February 2016 / March 2016 / April 2016 / May 2016 / June 2016 / July 2016 / August 2016 / September 2016 / October 2016 / November 2016 / December 2016 / January 2017 / February 2017 / March 2017 / April 2017 / May 2017 / June 2017 / July 2017 / August 2017 / September 2017 / October 2017 / November 2017 / December 2017 / January 2018 / February 2018 / March 2018 / April 2018 / May 2018 / June 2018 / July 2018 / August 2018 / September 2018 / October 2018 / November 2018 / December 2018 / January 2019 / February 2019 / March 2019 / April 2019 / May 2019 / June 2019 / July 2019 / August 2019 / September 2019 / October 2019 / November 2019 / December 2019 / January 2020 / February 2020 / March 2020 / April 2020 / May 2020 / June 2020 / July 2020 / August 2020 / September 2020 / October 2020 / November 2020 / December 2020 / January 2021 / February 2021 / March 2021 / April 2021 / May 2021 / June 2021 /


Major tags or subjects:

Carbon Cult
Carver
Constants and variables
Defensible Cases
Defensible Times
Defensible Thymes
Defensible Spaces
Equipoise
Experiential education
From rights to duties
Grand Blueprint
Metrology
Morsenet of Things
Natural law = Sharia law
Natural law = Soviet law
Shared Lie
Skill-estate
Trinity House

Powered by Blogger