As cashless exchange becomes an ever more significant portion of total transactions in the economy, the regulatory issue will become a greater concern. It is important that trade exchanges NOT be perceived as issuers of credit, so as to avoid running afoul of banking regulations and possible tax liabilities. Everything that trade exchanges do needs to support the position that the role they play is that of “third-party record-keepers” and that it is the members themselves who provide credit to one another.
Paul Suplizio, former Executive Director of the International reciprocal Trade Association (IRTA), has expressed it this way:
“This means members with positive balances are the issuers of credit and the exchange has only administrative powers, delegated by the members, to regulate credit extension.”
It can be argued that the credit clearing process is simply one of generalizing (collectivizing) the longstanding practice of businesses transacting trades with one another on “open-account,” i.e., selling to one another on credit and allowing some period of time in which to pay.
It has properly been a cornerstone of the trade exchange business that there is no interest charged on negative account balances and no interest paid on positive balances. Therefore it cannot be argued that trade exchanges are acting as banks or lenders of money.
Here’s an inspiring talk by Cameron Herold on ways to become more self-reliant and less dependent on government programs. Couple that with sharing, cooperation, and community organizing and maybe we have a formula for creating the “butterfly economy.” — t.h.g.
Most Americans know that the U.S. economy is in bad shape, but what most Americans don’t know is how truly desperate the financial situation of the United States really is. The truth is that what we are experiencing is not simply a “downturn” or a “recession”. What we are witnessing is the beginning of the end for the greatest economic machine that the world has ever seen. Our greed and our debt are literally eating our economy alive. Total government, corporate and personal debt has now reached 360 percent of GDP, which is far higher than it ever reached during the Great Depression era. We have nearly totally dismantled our once colossal manufacturing base, we have shipped millions upon millions of middle class jobs overseas, we have lived far beyond our means for decades and we have created the biggest debt bubble in the history of the world. A great day of financial reckoning is fast approaching, and the vast majority of Americans are totally oblivious.
I should add that billionaire financier George Soros has projected that total U.S. debt will soon reach 500% of GDP. Governments are not going to fix the problem. It is time for people to look to their own resources and creativity and begin organizing in their communities to assure their survival and thrival as we make the transition to a steady-state economy and a more equitable, harmonious society.
This video with Dan Pink summarizes recent behavioral research that blasts the myth of homo economicus totally away. Once basic needs are met, what motivates people in performing complex cognitive tasks is NOT more pay, but autonomy, mastery, and purpose. Watch it. – t.h.g.
Wow! Here’s an amazing video by Jeremy Rifkin in which he sketches the evolution of human civilization and posits a vision of a world in which empathy has become the dominant motivating force and human unity is the global reality.
It is obvious to me that our individual identities need to go beyond traditional tribal, religious, and national boundaries to embrace the entire web of life. –t.h.g.
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