Toba Unit of Account

The Toba unit of account is a new economic strategy to develop sustainable research programs in many fields of science, technology or even intangible heritage.  Currently, Education and R&D require a huge amount of money (Public or Private). However, nowadays, information and knowledge are available everywhere, 24/7, especially with a computer connected to the internet. In “cyberspace”, it is very easy to find a rare book in a library 12, 000 km away, a scholarly article or an online course etc. I believe a good researcher must not only publish, but theirs ideas, concepts and work must have a strong impact on others. 

In the total absence of capital and fiduciary resources, the only economic links in society are creativity, solidarity and security. An ad hoc currency aims to organize economic activity Ex nihilo in an orthodox manner by means of a tool for exchange and hoarding secured by a fiduciary capital. The wealth of human society is above all cognitive. All of the world’s material resources are nothing if we are not capable of using them appropriately. In the past, Mongolian or Arab invasions have shown that it is possible to conquer the world with derisory means, whereas paradoxically, despite the extraordinary fleet of Admiral Zheng He in the 15th century, China failed to preserve its international standing. Within an economic framework, it is therefore important to cultivate creativity and innovation. The word “Toba” comes from the Indonesian “supervolcano” which erupted 74,000 years ago. On Earth, we all descend from the human beings who survived this event. 

The Toba unit of account is used within the framework of mitigative entrepreneurship and aims to protect the intangible heritage of Mankind by providing a tool for exchange and expertise to build relationships between those who have knowledge and those who have know-how, for a sustainable economy of Research & Development, to help them create new wealth. 

How it works

• 1 Toba = 1 hour of assistance towards socio-professional autonomy and must also be backed by any real asset or cash.
• A Toba is created from any real asset, but has a hourly basis, because Time is the key word in Education or R&D.
• This unit of account is used to keep alive useful knowledge which could disappear…

Inflation

  -  £1 note withdrawn from circulation in 1988.  (from my personal collection ).      

     When money loses value, it means “inflation”. It’s closely related with the amount of money supply. If a massive money supply is necessary for a dynamic economy, it must be closely regulated.  Inflation doesn’t even exist with private, local or complementary currencies.
From my part, the convertibility between monetary base and « money- debt » created by private banks  explains a massive inflation inside Western countries.             

A currency backed by Gold, Silver, Copper ……

- Silver Coin from my personal collection (Japan)

A currency backed by a metal was useful in the past because it was sometimes melted for another use. Nowadays, it’s rare to find a person who melts his coins in Euro, £ or $..... In 2012,   community life, information and knowledge are the most precious values worldwide. So, a good currency must consider these points.

Faber est suae quisque fortunae

Since the Middle Ages, fractional reserve banking has been the greatest scam in the history of Mankind. The system can also be considered to have played a significant role in the plundering and waste of Earth’s natural and environmental resources. However, we must admit that fractional reserve banking has benefitted everyone in the Western countries, giving rise to faster progress in living standards, especially for the last 300 years, compared to the other continents.

 Since most of the money stock is debt, where do we find the money needed to pay off both the capital... and the interest ???

 

We therefore suggest using globalized trade and communication means to develop “outsourced” resources banking. The idea is to pool the reserves for clearly defined economic aims, emphasizing the need for them to develop local skills. Linking capital and know-how is the key to sustainable economic activity. Capital cannot be hoarded and must circulate to keep its value, a little like water in an aquarium filter. By pooling assets, it will be possible to issue money and credit with the sole aim of perpetuating reserves. The money and credit must be used for entrepreneurial action focusing on preservation and mitigation. An expert analysis of the feasibility of projects will therefore be done. We will forget the “Production / Consumption” paradigm. Available resources will increase by finding new partners and pooling new assets. Capital holders will thus be certain of not making a profit from speculation, or sustaining any inflation-induced loss, and will indirectly benefit in their everyday lives from the projects undertaken.

What is an Ad Hoc Currency ???

An ad hoc currency is created for a single entrepreneurial project and backed by a real asset or cash.

What is a mitigative business ????

No credit, only realistic and sustainable projects !!!! Money IS the social link.

Fractional Reserve Banking versus Outsourced Resources Banking

Coins and banknotes account for a very small part of the global money supply (around 8%). Only they have a small guarantee, scriptural money is only debt that someone owes… Creating money without limits means credit, debt, interest rates, inflation and deflation. Creating money without limits leads to environmental and social disasters.

 Every single $, £, Euro… created from nothing by private banks means a material or social value in the real world. But the Earth and Mankind are too small for the colossal money supply in the world.Fractional Reserve Banking creates money supply indefinitely, but only waste, not wealth. Increasing the monetary base is a more motivating challenge than increasing the money supply without limits. Temporary currencies backed by cash or assets and on an hourly basis can be used in a deflation context, to create sustainable activities and emphasize exchanges between knowledge and know how. The knowledge economy and social links are the two economical keys of the upcoming decades. 

Once the activity is created and sustainable, the temporary currency can be converted into money from a central bank or assets, and invested in the activity. It is also possible to back a temporary currency with a basket of currencies, but always in cash, which is also rare. Not backed by gold or silver for decades, but still with a small guarantee. 

No inflation, no deflation, no debt, no credit, only sustainable projects based on abilities that currently exist. This is Outsourced Resources Banking!