Comments on: Interest and the Role of Trade Exchanges http://beyondmoney.net/2010/06/30/interest-and-the-role-of-trade-exchanges/ Devoted to the liberation of money and credit, and the restoration of the commons Sat, 26 May 2012 20:22:51 +0000 hourly 1 http://wordpress.com/ By: Jubilee http://beyondmoney.net/2010/06/30/interest-and-the-role-of-trade-exchanges/#comment-5418 Thu, 01 Jul 2010 18:32:29 +0000 http://beyondmoney.net/?p=691#comment-5418 Timely post, Thomas. I am setting up the infrastructure for a trade exchange now, and I believe I have the solution to this potentially dangerous dilemma.

Namely, the trade exchange is a broker, paid on a per-transaction basis. There is no question of credit-issuance or interest charged.

On the related issue, default should not be a problem, as credit should not be advanced. Participants should be limited to what they have already accomplished, or what they have deposited in the form of real bills.

]]> By: Thomas H. Greco http://beyondmoney.net/2010/06/30/interest-and-the-role-of-trade-exchanges/#comment-5375 Thu, 01 Jul 2010 03:43:17 +0000 http://beyondmoney.net/?p=691#comment-5375 Being interest-free makes it easier to argue that the credit is not being advanced by the exchange operator. Defaults I think are typically written off agianst an insurance fund that is bundled into the transaction fees.

]]> By: Guillaume Lebleu http://beyondmoney.net/2010/06/30/interest-and-the-role-of-trade-exchanges/#comment-5371 Thu, 01 Jul 2010 00:48:50 +0000 http://beyondmoney.net/?p=691#comment-5371 I completely agree on the positioning as “record keeper”. That said, I’m not sure whether the difference between a credit issuer and a record-keeper is in the practice of interest. I would say it lays in how default of a participant is handled. Is there a separate entity with assets and liabilities using its equity to deal with default, or is default handled by participants themselves, and if so how?

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