People live in a community close to an iron orebody. Exploiting it will cost 100 million euros.
If they are willing and able to contribute the work in kind, you can do this. En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
But I see no reason why they would accept payment in shares. They have bills to pay, and these bills cannot be payed with mining company shares, but only with cash. Peak oil is not an energy crisis. It is a liquid fuel crisis.
If everyone demands hard cash and there is no banker around, the project doesn't get going. You mentioned a "community" being involved in this. Presumably the "community" has a local economy that provide some of the services these contractors would use their cash for, again in kind or by accepting the scrip issued by the mining partnership as a local currency. And once we're talking about it in these terms, what fraction of the community's GDP is 100 million, in your example? En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
Presumably the "community" has a local economy that provide some of the services these contractors would use their cash for, again in kind or by accepting the scrip issued by the mining partnership as a local currency. Some, but certainly not all.
And once we're talking about it in these terms, what fraction of the community's GDP is 100 million, in your example? What do you think? A city of 30-35.000 maybe, so a GDP around 1 billion euros? Peak oil is not an energy crisis. It is a liquid fuel crisis.
Why cannot the share circle be widened to include these suppliers?
The problem is the assumption that everyone is a delocalised service provider who wants hard cash so they can bugger off. En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
Second, because this would tie up everyones capital (like a forced investment in some global index fund) and stop people from buying that TV, car, vacation or investing in their own small business.
To resolve these problems and ease transactions, the state decided to launch a universal scrip: the currency. Peak oil is not an energy crisis. It is a liquid fuel crisis.
So in your example, the "community" charters a corporation and gives it the power to issue 85 thosand worth of scrip to fund the construction of the mine. En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
And how should this community empower a corporation like that? Only the state has that legal authority, or the scrips will not be legal tender. Peak oil is not an energy crisis. It is a liquid fuel crisis.
Then again, it need not work. But it has happened here and there in the course of history. En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
Peak oil is not an energy crisis. It is a liquid fuel crisis.
