But suppose that the construction company doesn't have any other business opportunities because there's a depression. Here you have: an idle construction company, idle prospective miners, a community with an idle iron ore, and investors with 15% of the cash necessary to mobilize all these resources.
Money is very useful, and fiat money more so, in greasing economic activity. But in situations where resources are idle because of lack of money you have to monetize the resources internally to a partnership in order to make things happen. If the construction company wants to become a partner, the project happens. If they don't, it doesn't. If they don't have other projects available, they lie idle, too.
As Minsky put it, anyone can create money, the problem is to have it accepted as such. Partnership arrangements are ways to turn assets into money acceptable to the partners. If you bring enough of the community into the partnership you may even be able to feed everyone. Otherwise they can all line up at the employment office and the soup kitchen. 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
The purpose of Kjell Holmstrands Klöver [Clover, the name of his currency] is that the money should stay in the local area. He means the capital should stay in Orsa [where he lives] and not end up somewhere else. That's why he also opposes the Euro.
- We shall keep our money in our own country, he says. The Euro means we'll have to send even more money to the bureaucrats in Frankfurt/Brussels. Then we'll have to stand there with the cap in our hand and bow and beg, so the merciful gentlemen will give us back some of our own money. Peak oil is not an energy crisis. It is a liquid fuel crisis.
