Category Archives: Prescriptions

Universal Basic Income, an idea whose time has come…again

In ancient Israel, Mosaic Law, in addition to the division of the land among the tribes and families, delineated several ingenious provisions to assure the welfare of all. Recognizing the tendency in organized societies for inequities to develop over time, it prescribed such measures as the sabbatical year, the jubilee year,  gleaning and the prohibition of usury. Some of these, in some form, were carried over into the Christian era, but over time mercantile and industrial demands overshadowed social concerns. The mid-twentieth century saw tremendous gains in productivity along with renewed demands by the laboring class and racial minorities for a more just distribution of the collective wealth, but over the past 35 years many of the social programs that were instituted by governments have been under systematic attack by powerful reactionary forces resulting in massive increases in the disparities of income and wealth. These disparities bring with them increased violence, crime, addiction, and deteriorating quality of life for all.

Now, with automation rapidly reducing the need for human labor, the separation of livelihood from jobs is becoming an obvious necessity.

Here below are two pertinent videos, and this article mentions a few places where basic income allowances are being tried.

Thomas Greco’s 2017 Summer Workshop in Greece

Following last summer’s exciting and successful workshop in Greece, Thomas Greco will again this summer be conducting a workshop in Monetary and Financial Innovation for the New Economy at the Alexandros campus of the Kalikalos Holistic Summer School on the beautiful Pelion peninsula in Greece.

[Edit:During the 2017  workshop Tom will again have the assistance of Matthew Slater and the benefit of a guest appearance by Prof. Jem Bendell of Cumbria University (UK).]

View southward from Alexandros

In this week-long workshop we will examine the problems and deficiencies of both conventional money and local currencies and exchange systems, and delve into the principles and practices of innovative exchange and finance.

Over the past three decades, a great many complementary currencies and exchange schemes have sprung up, gained some degree of acceptance and notoriety, then faded away. This workshop will focus in on the reasons why none of them has become a significant factor in their community economies, and uncover the principles of design and implementation that need to be applied to make exchange alternatives more effective, robust, and scalable. It will also cover new ways of providing entrepreneurs with the resources needed to bring their ideas to fruition and achieve success in the marketplace.

Alexandros Center

Alexandros Center

This course is designed especially for social entrepreneurs, government officials, enthusiastic agents of change, and serious students who are ready to co-create a new sustainable and convivial economy from the bottom up. In this highly participatory workshop, we will use a combination of presentations, discussion groups (some on the beach), videos, and simulation games, to dive deeply into the process of exploring and developing innovative methods of finance, exchange, and value measurement. Participants will have the opportunity to showcase their projects and ideas and receive feedback from the group.

Here is an opportunity to work with one of the world’s leading experts in innovative economics, finance, and exchange, and to collaborate with like-minded peers to create a new economy that works for everyone, while enjoying a delightful summer holiday on the magical Pelion peninsula. Come join us in a process of inquiry, discovery, sharing and collaboration.

The workshop will run from 16 to 23 June, 2017. Space is limited so register early at http://www.kalikalos.com/community/x/exchange-finance-new-economy-thomas-greco/.

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 All the perplexities, confusions and distresses in America arise not from defects in the Constitution or Confederation, not from want of honor or virtue, as much as from downright ignorance of the nature of coin, credit and circulation. –John Adams, second president of the United States.

Just as the political monetary system trends power toward the state, so the system based on true money will release the natural forces that trend society toward private initiative, enterprise and democracy. Pending this fundamental reversal, all resistance to statism is futile. As long as the only available monetary system is political, exchange, that process by which the social order functions, will never accomplish its natural purpose, the development of prosperity and freedom.– E.C. Riegel, Flight From Inflation

A World Without Money and Interest

During my October tour, I gave three presentations in Kuala Lumpur, Malaysia and another in Sardinia, Italy. Two of the Malaysia presentations were at the International Forum on Inclusive Wealth, but I do not yet have recordings of those. The third was an extended presentation and discussion (on October 10) at the Institute of Advanced Islamic Studies titled, A World Without Money and Interest: A pathway toward social justice and economic equity. Here below is the video of the proceedings, or you can watch it on YouTube at https://youtu.be/8BejigzDAVY. The audio only is here, and the slides that were used in that talk can be viewed here.

Bitcoin, Blockchain Technology, and Crypto-Currency

There has been lots of chatter lately about bitcoin, blockchain technology, and crypto-currency. Everyone, including me, is trying to wrap their head around it all. This is what I’ve come up with so far:

  1. Bitcoin is a virtual commodity that is created by running some obscure algorithm. The people who get rewarded are the “miners” who burn up enormous amounts of computer time and electricity to create Bitcoin. That makes it akin to mining gold or silver—not a very useful pursuit, and like any commodity, people will prefer to use it as a savings medium or hedge against inflation rather than circulating it as a currency. Bitcoin is NOT the answer to the money problem.
  2. The important thing about blockchain technology is what it can do, what functions it can perform. You hear a lot about “smart contracts” and a secure trail of transactions. It seems to be something that is needed when using digital forms of contracts and transactions conducted over the internet, but provides no new functions compared to what has always been done with paper trails and records, but maybe I’m missing something.
  3. The term “crypto-currency” is ill defined and there is much confusion about the characteristics of such a currency and what it can achieve.
  4. The fundamental principles of reciprocal exchange still hold. The substance of a currency or payment medium is CREDIT. Claims still need to be authenticated and promises need to be guaranteed.

My grand, audacious vision is this:

TO ENABLE ANYONE, ANYWHERE TO USE WHAT THEY HAVE TO PAY FOR WHAT THEY WANT.

What they might have is skills, abilities, products, services and credit that is advanced by a circle of people who know them and trust that they are ready, willing, and able to deliver value on demand in the near term.

I have argued that the truly disruptive technology of exchange is a global network of small credit-clearing circles that provide “a means of payment that is locally based and controlled yet globally useful. It makes money and banks, as we’ve known them, obsolete.

My talk in Malaysia in October at the International Forum on Inclusive Wealth (http://ifiw.my/) will be on that topic and will build upon the framework that I laid out in my book chapter, https://beyondmoney.net/excerpts/chapter-17-complete-web-based-trading-platform/. –t.h.g.

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2015 Fall Newsletter

In this edition

  • Back in the USA
  • My latest article: 50 Ways to Leave the Euro: Greece and the Global Crisis
  • Raising the debt ceiling—again…, and again…, and..!
  • Seizing an Alternative—conference recordings
  • Homage to Peter Etherden
  • The case of Iceland – Is democracy more important than financial markets
  • Gates Foundation chooses Cyclos for E-pay Innovation Award

Back in the USA

I’ve been back in Tucson since early October, resting and recuperating from five months of travel and an exhausting summer tour of Europe. I’m corresponding, writing, advising and waiting to see what new opportunities might present themselves.

My tour of Europe included presentations, interviews, and/or workshops in Greece, Italy, and Ireland. As recordings of my presentations become available, I will be posting them on my website https://beyondmoney.net/. So far I’ve posted interviews from Athens and Sardinia, and the slide show from the workshop I conducted in Athens. The audio of my August 28 Dublin presentation, The Liberation of Money and Credit, can be heard at https://soundcloud.com/flanagankev/thomas-greco-dublin-august-28-2015.

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My latest article

Common Dreams has just published my latest article, 50 Ways to Leave the Euro: Greece and the Global Crisis. In this article I provide my prescriptions for how Greece (and other countries) might relieve their impossible debt burden, and I describe ways in which domestic liquidity can be created apart from the euro regime and without inflation. You can read it here. I’ve also posted it on my website as a PDF file.

As an aside, in addition to Greece’s economic and financial problems, the country has been overwhelmed by a flood of refugees and migrants. It is reported that more than a half million have arrived on Greek islands just in the past 10 months. This refugee crisis that is now threatening all of Europe is a direct result of the destabilizing actions by the Western powers attempting over the past several years to reshape the politics of the Middle-east and North Africa. Their agenda goes way beyond oil, but few people are paying any attention. Former Reagan administration official Paul Craig Roberts is one of many sources that provide deeper insights, for example in his article, The Re-enserfment of Western Peoples.

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Raising the debt ceiling—again…, and again…, and..!

Every few years the U.S. Congress goes through the charade of debating whether or not to raise the limit on the government debt. In the end they always do. According to Wikipedia, “the US has raised its debt ceiling (in some form or other) at least 90 times in the 20th century.[11] The debt ceiling has been raised 74 times since March 1962,[12] including 18 times under Ronald Reagan, eight times under Bill Clinton, seven times under George W. Bush, and five times under Barack Obama.”

Why continue the pretense that there is any choice about it? Why can’t the government balance its budget and why does the national debt keep increasing? The real answer, which I wrote a quarter century ago, will probably surprise you. To learn what it is, see my recent post at https://beyondmoney.net/2015/10/15/why-cant-governments-balance-their-budgets/.

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Seizing an Alternative—conference recordings

Recordings made at last June’s Seizing an Alternative conference at Pomona College are being compiled and made available at the Pando Populus website. These include several sessions from Track 6: Political Collapse in which I participated.

Session 1 featured presentations by John B. Cobb, Jr., Ellen Brown, and Thomas Greco. In this recording, John Cobb’s introduction is followed by Ellen Brown’s presentation (starting at minute 6:45) and Thomas Greco’s (starting at minute 22:24 and ending at minute 44:15). A Q&A session runs from minute 44:15 to the end. In my portion I provide a brief overview of private currencies and exchange systems and present some of my early prescriptions for addressing the Greek debt crisis.

Session 7 featured presentations by Ellen Brown, Thomas Greco, and Kevin Clark. My presentation begins at minute 27:18 and ends at minute 54:30. In it I answer the fundamental questions about money and the exchange process, and how to reclaim the credit commons. _______________________________________________

Homage to Peter Etherden

I was very sad to learn recently that Peter Etherden has passed away. Peter was one of my very good friends with whom I always enjoyed visiting and discussing our mutual interests. I’m glad that 2169889106PEI got to see him a few weeks ago in London just prior to my return to the U.S.

I first met Peter in 1986 in Zurich where we both attended the Fourth World Assembly that was organized by John Papworth. Over the subsequent years we corresponded regularly and we were able to meet several times during my visits to England. One of my fondest memories is of my visit in 2002 when he and his partner Connie lived aboard their boat in Rye harbor. During that visit the three of us sailed across the English Channel to Bologne where we spent a few days at mooring in the harbor. I also recall 2001 when my then partner Donna and I visited Rye and the four of us went off to explore Devon and Cornwall, a very beautiful part of Britain.

Peter was a diligent researcher and prolific writer whose interests were wide ranging. He will be greatly missed. Many of his research compilations and his writings under various pen names can be found at http://www.cesc.net/.

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The case of Iceland – Is democracy more important than financial markets?

In his 2012 CBC interview, the President of Iceland very articulately describes the situation as it played out in his country during the global financial crisis that began in 2008. He describes the ways in which the failure of Icelandic banks was handled, the strong reaction from the British and Dutch governments, the reasons behind his government’s actions, and what really is at stake, not only for Iceland but for every country in the world. See it at https://youtu.be/7zlzC_X MQzI.

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Gates Foundation chooses Cyclos for E-pay Innovation Award

In case you missed the news, as I did, the Social TRade Organisation (STRO) last year was chosen by the Bill and Melinda Gates Foundation to receive the prestigious E-pay Innovation Award for its Cyclos secure payments platform. Cyclos was chosen to receive the award over 9 other contenders from around the world. The $50,000 award was given at a ceremony at the annual conference of the Electronic Transactions Association in Las Vegas.

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Finally, as Thanksgiving day in the U.S. approaches, I’m reminded of how blessed my life has been. It is in the spirit of gratitude that I thank you for your support and wish you all a happy holiday season.

Thomas

50 ways to leave the Euro: Greece and the global crisis

My two month visit to Greece last summer prompted me to develop some proposals that might be applied in Greece and other countries where the government has become insolvent. I’ve written these up in an article that was recently published in the online journal, Common Dreams.  You can read it there or here below. It was also republished on Resilience and can be found there.

50 ways to leave the Euro: Greece and the global crisis
By Thomas H. Greco, Jr.

The problem is all inside your head, I told the Greeks
The answer is easy, you need only stop the leaks
The power is yours to claim the freedom that you seek
There must be fifty ways to leave the Euro
(Apologies to Simon and Garfunkel)

Following the resounding “NO” vote by the Greek people on the bailout conditions in the July referendum, the negotiations between the Greek government and “the institutions” resumed with the expectation that a better deal for Greece would ensue. The outcome was quite the contrary. Greek negotiators ended up agreeing to a bailout deal that was far more onerous than the one the voters had rejected. Why?

The harsh reality is that the Greek government is insolvent. Having been lured into the debt-trap and the shared euro currency by western oligarchs using a combination of measures, including outright fraud, Greece was forced to accept the onerous conditions attached to the first two bailouts. Now it has been bludgeoned into accepting a third. The weapon of choice is the euro currency itself which is being wielded by the European Central Bank (ECB). By throttling the flow of euro currency into the country, the ECB last summer created near chaos in the Greek economy. This, and the threat of even more severe punishment in the future, was enough to bring the Greek government to heel.

With sovereign debt up around 180% of GDP, there is no way that the Greek government will ever be able to grow its way out of the current mess. The draconian measures demanded by the creditor institutions will just make it worse. Even the IMF has acknowledged (with apparent reluctance) that some debt relief is necessary for the Greek economy to recover. The new agreement forces the Greek government to yield even more sovereignty and to open its economy and its people more fully to exploitation by corporate interests and transnational banking institutions. Read the entire article…

The changing picture in complementary currencies

During my August visit to the Sardex trade exchange on the island of Sardinia, they recorded (on August 13, 2015) this short interview. In it I cover a few important points on the liquidity problem and how commercial trade exchanges help to solve it.