How does mutual credit clearing enable moneyless exchange?

Posted on January 24, 2013 | 3 Comments

Here’s and excellent, short and sweet description of how mutual credit clearing works to provide interest-free liquidity. From Bartercard New Zealand…

This entry was posted in Developing Alternatives, Emerging paradigm, Finance and Economics, My activities, Politics, The Debt Imperative and tagged , , , . Bookmark the permalink.

3 responses to “How does mutual credit clearing enable moneyless exchange?”

  1. Wayne N. | January 30, 2013 at 4:30 pm | Reply

    The folowing comment is not my authorship but a friend who wishes to remain anon. : Do you not see how such schemes as Bartercard are fundamentally irrelevant?

    What is the Unit of Accounting in this scheme? It is New Zealand dollars.

    Bartercard transactions would be income-taxed the same as cash payments. What is useful here is the idea of the “instant credit line” in the scheme. That is good, for people who begin with no assets other than their potential future labor.

    Any barter transaction is either (1) pure, simple, direct, or (2) mediated with a Unit of Accounting. If it is the second, it would be a “money transaction” even if formal government money is not involved, because the government Unit of Accounting is involved. The Bartercard scheme is clearly in the (2) group.

    Only my proposal for asset barter, where the Unit of Account is itself an asset (e.g. grams of gold) would be a continuation of (1) pure, simple, direct barter.

    Asset barter does not need to depend on a single Unit of Accounting. One could use shares of AAPL or even GLD shares (except for the issues of IRS reporting, etc.). Sell me your car for 20 shares of AAPL. I would deliver the shares and you would deliver the title to the car. Barter.

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    • Thomas H. Greco | January 30, 2013 at 6:33 pm | Reply

      You need to study the body of work that I have created to get the full picture on liberation from political money and banks. The answer is not commodity money, although commodities might be used to define the measure of value and unit of account, as I write in my books.

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  2. Pingback: How does mutual credit clearing enable moneyless exchange? | showmethemoneytbone

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