DEBT = a (bad) bet on the future.

I have explained several concepts in my posts since July. I need to sum up the situation.

Fractional Reserve Banking  means “money debt” and an infinite growth of the money supply.   

Outsourced Resources Banking means  the opportunity to create the ad hoc  money supply for  useful projects”.  No inflation, no deflation and a huge difference with complementary or private currencies : Protecting innovation, production and creation, .....not only the communities.

“Money-debt” as a bet on the future could be a good idea, several decades or centuries ago, on small amounts.  But currently, “virtual economy” and unrealistic expectations are leading us in a bad way …. Only the derivatives market is 10 times the global GDP. The good question in Economy is not “What we need ??” but “what we can do, create, produce ??”

The Toba Unit of Account   (post july 31) is my personal ambition : creating a universal unit of account to preserve,  from deflation and globalization , skills, know how, abilities and intangible heritage. Our difference makes our wealth and our wish to innovate.  The Toba will be used with  the concept of “mitigative business” (post  july 4).

“Nanny state” , communities and money

In Western countries, the “Nanny state” invites people to reach a vertical solidarity  link instead of a horizontal link inside communities.  It was easier, but now, with the decline of western economies it won’t be simple to build social links ex nihilo inside communities, except around religious or ethnics issues. Creating currencies with an intrinsic value (gold or silver) was probably a mistake, money is only a technology emphasizing exchanges. So, money must have a “trust” more than a value.

Fractional Reserve Banking came probably from our inability to manage and improve only our daily resources without expecting a much better or “virtual” wealth immediately. In a money debt system, “Recession” will always be a key word and middle class should become weak and sometimes disappear…..

 Therefore, it seems necessary to manage a banking system around PROJECTS and COMMUNITIES ! !! The famous Fureai Kippu (ふれあい切符), in Japan, is a good example of a successful  ad hoc monetary system. Studying derivatives market is a travel in the Fourth Dimension !!!!  Virtual money will disappear, not real wealth , if only  we can see it.

No Debt = No Money

If we can create money from any assets, it’s not necessary to create new debt.  The current outstanding virtual “money  debt” is  disappearing and will continue to lose value…. , especially in the Western countries.  If the World is now a Global village, the real  strength is from each individual, each community. A tree is strong if its roots are strong. The motto could be “think local, see global”.

Therefore, I believe there is a huge need for long term visions and common projects. Fractional reserve banking exists for centuries, but even the collapse of the roman empire was also related with monetary problems, because of the lack of precious metal. Money is a power, and power means “responsibility”. When you give credit for consumption or unsustainable production, creating money out of nothing,  it’s a true lack of responsibility !!!!!!  When you make money from money, you don’t even understand the nature of this tool  !!!!!

Don’t forget  this wise Native American quote :

“””When all the trees have been cut down,

when all the animals have been hunted,

when all the waters are polluted,

when all the air is unsafe to breathe,

only then will you discover you cannot eat money.”””

Good ideas are simple

The Chinese ideograms are a wonderful   tool to develop new concepts, new ideas. Using in Japanese language, I have built the concept of Kyuuninkai旧忍会, in turn built around the kanjis 旧(Kyuu) , which means ancient, past, in the past; 忍 (Nin), related to survival, endurance but also secret, and Kai (会) which means meeting, as exchange is at the basis of wealth generation.

 To be honest, money is a technology very easy to understand, but it was simpler to stay ignorant. ….The  financial world has failed to provide us a valuable and sustainable vision of the future. However, Economy is still alive if we can understand the true needs. 

Around 80 billions human beings have lived on Earth since the origins, each problem have a solution if we look back in history. Living is a tough experience and science or religions don’t have all answers, so it’s important to improve our endurance to cope with this strange travel…. 

 This century will be crucial for the Mankind !!!!  I hope money will go back at its real position, but virtual money should disappear and it will be painful. Instead of the consumption, mitigation and preservation  should be the true  paradigms in economy.