Category Archives: Exchange Design

Thomas H. Greco to address Tucson business communty

I will be giving a free presentation in Tucson on August 18 to show local small businesses how to create liquidity based on their own capacity to produce desired goods and services.

Details can be found at:  https://beyondmoney.files.wordpress.com/2014/08/2014-tucson-flyer-local.pdf
Even if you don’t live anywhere near Tucson, I’m sure this will be of interest to many in your network so please help to get the word out. Our communities cannot afford to be complacent. We need new creative approaches to economic development, and locally controlled exchange alternatives are a key requirement to future prosperity, resilience, and a sustainable world.

This presentation will be recorded and made available on this website following the event.

Thomas H. Greco

Phone-to-phone payments already bringing massive changes to Kenya

Try to imagine what your life would be like if you had no bank account, no credit or debit cards, and no cash, and on top of that, you lived in a country where poverty, crime, and corruption were rampant. I’ve never been there, but by many reports Kenya is just such a place. How do people cope?

As in other places, like India and Thailand, that I have visited, it seems that the majority of people in Kenya are micro-entrepreneurs who eke out a living by producing and selling products or services of some sort. And, like everywhere else, having a means for exchanging those goods and services and “paying” each other is crucial to survival.

Ultimately, as private currencies and moneyless exchange mechanism proliferate, we all will have numerous payment options.  The Bangla-Pesa project operating near Mombasa is one such model that is now being replicated in Nairobi and other parts of Kenya. But even technologies that only provide new ways of paying with national currencies are proving to be beneficial in many ways.

Kenya’s Safaricom company has led the world in implementing phone-to-phone payments with the M-pesa. All it takes is a text message from the buyer’s phone to the seller’s phone to make a payment. Almost everyone in Kenya has access to mobile phone service and they may draw cash from their accounts at any of the 45,000 independent agents scattered around the country.

A recent Business Week article documents the ubiquity of this payment mechanism and its positive effects in such diverse areas as security, renewable energy, crowdfunding, and economic development . You can read it here: Ten Days in Kenya With No Cash, Only a Phone.

When mobile phone payment systems include complementary currency options, the beneficial effects will be multiplied manifold. — t.h.g.

An open letter to the Financial Times

Dear Martin Wolf,
Your article, Strip private banks of their power to create money, highlights some of the problems of the global money and banking system, but falls short in the proposed solution.

The problem is not private money creation, per se, but the monopolization of credit (money creation) in the hands of a private banking cartel and the collusive arrangement between bankers and politicians.

In today’s world, banks get to lend our collective credit back to us and charge interest for it while central governments get to spend more than they earn in overt tax revenues, relying on the banking system to monetize government debts. These two parasitic drains on the economy, interest and inflationary government debt monetization, create a growth imperative that is destroying the environment, shredding the social fabric, and creating ever greater disparities of income and wealth.

Turning over the money monopoly to politicians (what I call the “Greenback solution”) will not change things very much. It will be the same people wearing different hats. The political process has been so thoroughly corrupted and taken over by this small elite class that political approaches to solving the money problem have no chance of passage anyway. I articulated that argument a few years ago in my Alternet article, The End of Money: Take Power Back From the Money and Banking Monopoly.

True solutions must emerge, and are emerging, from society and from associations of small and medium-sized businesses. Money is first and foremost a medium for facilitating the exchange of goods and services and other forms of real value, but the exchange function can be effectively and efficiently provided outside the banking system and without the use of conventional political money. This is being done for associated businesses through credit clearing exchanges and through the issuance of private currencies or vouchers by businesses that produce real value. Both approaches have the capacity to provide exchange media that can be used by general public as well.

So, rather than ban private issuance of currencies, such private issuance needs to be proliferated and encouraged. There needs to be competition in currency so that there will be a sufficient amount of exchange media, and so that political currencies cannot be abused without losing patronage in the market. Rather than establishing the state as the money power, we need to have a separation of money and state. That argument is more fully developed in my latest book, The End of Money and the Future of Civilization.

Best wishes,

Thomas H. Greco, Jr.

Excitement mounts over upcoming IRTA Convention!

The International Reciprocal Exchange Association (IRTA), the premier association of the commercial “barter” industry, has been for more than forty years promoting the interests of small and medium sized enterprises by assisting its member trade exchanges to provide them with liquidity and effective opportunities for moneyless trading.

Since 2005, IRTA has been reaching out to the wider grassroots community of researchers, developers, and organizers of private currencies and complementary exchange mechanisms and has broadened its advocacy to include them.

The upcoming 34th Annual International Convention of the IRTA in Las Vegas will provide a unique opportunity for social entrepreneurs and monetary activists to further consolidate programs of cooperation with the well-established commercial “barter” sector of the moneyless exchange movement. The Convention will be held from Sept. 19 thru 21 at the Venetian Resort in Las Vegas.

Along with IRTA President and experienced trade exchange operator Annette Riggs, and Rob van Hilten, Executive Director of QOIN, a consultancy for community currencies, I will be a panelist in a Saturday session (September 21) titled Understanding Diverse Exchange System Models: From Bitcoin and Berkshares, to Transparent Credit Clearing Networks. This session will consider three basic topics of discussion:

Bitcoin, the good, the bad, and the ugly.

The benefits and limitations of cash-based local currencies.

The emerging global exchange network.

There is still time to register for this important event. You can get details about the convention program and secure your place by visiting the IRTA website at http://www.irta.com/.

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Will we ever see a world without money?

If you doubt it, think about these famous words from experts of the past–t.h.g.

“The bomb will never go off. I speak  as an expert in explosives.” – – Admiral William Leahy , US Atomic Bomb Project

“There is no likelihood man can ever tap the power of the atom.” — Robert Millikan, Nobel Prize in Physics, 1923

“Computers in the future may weigh no more than 1.5 tons.” — Popular Mechanics, forecasting the relentless march of science, 1949

“I think there is a world market for maybe five computers.” — Thomas Watson, chairman of IBM, 1943

“I have traveled the length and breadth of this country and talked with the best people, and I can assure you that data processing is a fad that won’t last out the year.” — The editor in charge of business books for Prentice Hall, 1957

“But what is it good for?” — Engineer at the Advanced Computing Systems Division of IBM, 1968, commenting on the microchip.

“640K ought to be enough for anybody.” — Bill Gates, 1981

This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us” — Western Union internal memo, 1876.

“The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular?” — David Sarnoff’s associates in response to his urgings for investment in the radio in the 1920s.

“The concept is interesting and well-formed, but in order to earn better than a ‘C,’ the idea must be feasible” — A  Yale  University management professor in response to Fred Smith’s paper proposing reliable overnight delivery service. (Smith went on to found Federal Express Corp.)

“I’m just glad it’ll be Clark Gable who’s falling on his face and not Gary Cooper” — Gary Cooper on his decision not to take the leading role in “Gone With The Wind.”

“We don’t like their sound, and guitar music is on the way out” — Decca Recording Co. rejecting the Beatles, 1962.

“Heavier-than-air flying machines are impossible” — Lord Kelvin, president, Royal Society, 1895.

“If I had thought about it, I wouldn’t have done the experiment. The literature was full of examples that said you can’t do this” – – Spencer Silver on the work that led to the unique adhesives for 3-M “Post-It” Notepads.

“Drill for oil? You mean drill into the ground to try and find oil? You’re crazy” — Drillers who Edwin L. Drake tried to enlist to his project to drill for oil in 1859.

“Stocks have reached what looks like a permanently high plateau.” – – Irving Fisher, Professor of Economics,  Yale University , 1929.

“Airplanes are interesting toys but of no military value” — Marechal Ferdinand Foch, Professor of Strategy, Ecole  Superieure de Guerre ,  France .

“Everything that can be invented has been invented” — Charles H. Duell, Commissioner, US Office of Patents, 1899.

“The super computer is technologically impossible. It would take all of the water that flows over Niagara Falls to cool the heat generated by the number of vacuum tubes required.” — Professor of Electrical Engineering,  New York  University

“I don’t know what use any one could find for a machine that would make copies of documents. It certainly couldn’t be a feasible business by itself.” — the head of IBM, refusing to back the idea, forcing the inventor to found Xerox.

“The abdomen, the chest, and the brain will forever be shut from the intrusion of the wise and humane surgeon,” — Sir John Eric Ericksen, British surgeon, appointed Surgeon-Extraordinary to Queen  Victoria 1873.

And last but not least…

“There is no reason anyone would want a computer in their home.”  — Ken Olson, president, chairman and founder of Digital Equipment Corp., 1977

“There is no reason anyone would want a computer in their home.”  — Ken Olson, president, chairman and founder of Digital Equipment Corp., 1977

Complimentary Currency Systems: Richard Logie at TEDxLeeds

Richard Logie has been for a long time one of the leaders in the commercial  barter industry. As owner and operator of The Business Exchange in Scotland and developer of GETS, a moneyless trading platform, Richard has a wealth of knowledge about moneyless exchange in general. His presentation below provides a valuable learning tool for anyone, either in the entrepreneurial realm or at the grassroots level, who is starting or operating a currency or exchange system.

Please pay particular attention to the way in which Richard determines the credit lines to be provided to members’ accounts, the list of advantages that membership in a credit clearing exchange provides, and the elements that need to be standardized in order for exchanges to be effectively networked together.–t.h.g.

An innovative currency project in Kenya achieves impressive social benefits

A currency project that was conceived and operated by Will Ruddick in Kenya last year has reportedly achieved significant social benefits at very little cost. A full report titled, Eco-Pesa: An Evaluation of a Complementary Currency Programme in Kenya’s Informal Settlements can be found at the International Journal of Community Currency Research.