Avoiding Centralised Money
20
Altruistic Economics A presentation by Dr. Robin Upton, 2005-11-05, for the Korean Socialist Forum. Available for download at www.altruists.org/ae204 Attribution – NonCommercial - ShareAlike A Modern Myth www.altruists.org AE20 4 : Avoiding Centralised Money V1.0.1
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Robin Upton's presentation
Transcript of Avoiding Centralised Money
Altruistic Economics
A presentation by Dr. Robin Upton, 2005-11-05,for the Korean Socialist Forum.
Available for download at www.altruists.org/ae204
Attribution – NonCommercial - ShareAlike
A Modern Myth
www.altruists.org
AE204: Avoiding Centralised Money
V1.0.1
2 Wisdom of Youth
A Modern Myth
You need
Money
to live!
Everyone knows That
Don’t Remind
Me…
Obviously!
3 How to get Food?
Wisdom of Youth
You need
Money
to live!
No. I need Food to live!
4Failure How to be given Food…
How to get Food?
Growing
Stealing
Buying
Being Given
WinningFinding
Begging
Money required
Money not required
Actually, there are many ways…
Being Given
5Failure How to say “Thanks”
Request
(1) …if you know a farmer.
How to be given Food…
Just request it (digitally or face-to-face).
Can you spare any Apples, Tom?
Sure.
6Failure How to be given Food…
State (digitally) what happened.
How to say “Thanks”
PublishOnline
PublishOnline
“I gave . 10 apples.”
“ gave me $5 worth of apples.”
7. Asking Around…
(2) … if you DON’T know a farmer?
How to be given Food…
Ask around!
(preferably digitally)
8. Centralised Money
Asking Around…
Request
= Ask your friends… to ask their friends...
Request
Request
RequestRequest
Request
Request
Request
Request
to ask their friends... to ask their friends...
Easy if done digitally, time consuming face-to-face.
9. Central Banks in Control
Centralised Money
Governments Financial Sector
BusinessesAgencies Non-Profits
Central BanksIssue of Money...
…is ‘Top Down’
www.altruists.org/416
10What If …
Central Banks in Control
CONTROL Governments Financial Sector
BusinessesAgencies, Non-Profits,
Central Banks
People are under control of wealthy organisations and banks.
11P2P Money
What if …
Governments
Central Banks
Financial Sector
BusinessesAgencies, Non-Profits,
…People issued currency instead of Banks?
12. Money as Voting
P2P Money
Central Banks
Financial Sector
BusinessesAgencies, Non-Profits,
Banks are not needed!
Issue of Money (CONTROL)
Organisations rely on
people!
13. Inflation
Money As Voting
BusinessesAgencies, Non-Profits,
Reputation depends onhow people vote!
Issue of Money (CONTROL)
Government
But people vote every day, not every 5 years!
14
P2P-issued Currency
Mutual accreditation means people depend on one another, not on centralised organisations.
Issue of Money (CONTROL)
. Inflation
15 Effect of Inflation
Inflation
When a central bank inflates the money supply,
Central Banks
Governments Financial Sector
BusinessesAgencies, Non-Profits,
This is called INFLATION.
Central bankers accumulate wealth by inflating the money supply to engineer depressions, funding wars, etc
the real value of all the other money in
circulation declines.
www.altruists.org/429
16
Effect of Inflation
Central Banks can increase money supply at will.
Now Future
Money in Circulation $10 Trillion $40 Trillion
Your Savings
Face Value $1000 $1000
Purchasing Power
$1000 $250
When the money supply is increased*, money loses value:
*typically, in times of war
No one’s savings are safe from their effects. . Debt-Backed Money
17Interest
Debt-Backed Money
Central Banks issue money in a way that ensures it stays scarce…Central Banks
Financial Sector
All money they create has an obligation to repay a larger amount later.
This extra money is later issuedinto circulation by Central Banks, perpetuating the cycle of debt…
18 Effect of Interest
Interest
Central Banks
Governments Financial Sector
BusinessesAgencies, Non-Profits,
Tribute
Formerly illegal, this practice (called USURY) is explicitly forbidden in the Bible & Koran.
Bankers get extra money as a tribute from those beneath them in the system.
This is normally a % of the amount lent (called INTEREST).
www.altruists.org/428
19
Effect of Interest
Interest makes the rich richer, the poor poorer:
1980
Income
Top 10%
Outgoing
German Household Groups According to Income
. Benefits of a P2P System
Bottom 10%
Source: 1980 – A Changing Money System (M. Kennedy)
2000 – Bundesbank figures (H. Creutz) .
2000
20
Benefits of a P2P System
If everyone issues their own currency, no one can devalue anyone else’s money!
. Interest
NO INFLATION:
NO INTEREST: A P2P-system has no money masters to whom tribute must be paid.
