[wsfii-discuss] Worldchanging article on Complementary currencies

Wed Oct 5 02:43:29 UTC 2005

On 05/10/05, Harm Luebben <h at 43chrome.de> wrote:
>
> Oh, what are "the existing money systems"?
>

Nominally, money is issued by the central bank of a nation-state.  In
actual fact, the bulk of it is created by private banks when they make
loans that are not backed by existing deposits, so there are no
corresponding bank notes just figures in a bank's computer system.

> The (inherently) political aspects of 'free' infrastructures
> (accidently?) come clearer now.

Really?  Please enlighten us.

> A money sytem defined by a currency, may it be the Lime, Pound, Euro,
> etc. should not make a difference.
>

Don't be so sure about that, money systems can be configured in a
number of ways depending on the objectives of those designing and
implementing them.

> Adding an interest rate to a worth described in 'money' (which never
> runs out of style, has no costs for storage, etc.) should result in a
> exponential growth of where the money is, and a loss where it is not.
>

Having a positive interest rate on money creates a hoarding effect. 
Those who have a substantial amount of it do their best to get more
and hold on to it, which the system is set up to do so the rich get
richer and so on.  Now if you have a negative interest rate (aka
demurrage) things get interesting, there is a strong incentive to
spend the money rather than hold onto it.

> I prefer Lime/coins/currency when paying for service, instead of
> carrying a pig or cigars around to trade.

Entirely understandable.  Barter does have a certain utility in the
right context, but generally currency of some form is easier to deal
with hence its dominance as the means of exchange.

--
Mamading Ceesay

"Isn't a state that keeps files on innocent persons a police state?"
-- David Mery - Innocent In London http://gizmonaut.net/bits/suspect.html
 Radio Interview with David Mery
http://radio.indymedia.org/news/2005/09/6963.php