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Magnifico, you are in good company. This is not the first time that the "Money as Debt" video has been on ET.

Anyone who has read my Diaries and Comments will know that I am interested in developing practical alternatives to the conventional monetary system by mutualising the banking function of guaranteeing credit, and creating new mechanisms for "pooling" and "unitising" land rental value and energy value.

For instance, I just posted the following comment in response both to another comment, and to today's Guardian article by Tony Juniper itself

Bring on the Carbon Army

which is long on good feelings and short on practical solutions.

Green' energy has to be subsidised. This means that taxpayers have to pay twice, once to generate it and once to use it.
In fact "green energy" - whether energy produced by tides, wind or sun is free. Energy savings are likewise "free" in that there is no ongoing cost of production.

The question is how we finance the upfront investment necessary to produce these "MegaWatts" and ""NegaWatts" respectively.

This is actually quite straightforward. Rather than monetising credit created by credit institutions; CO2; tradable quota's; or anything else inherently valueless, we monetise the intrinsic value of energy.

Step One: create an "Energy Pool" fund - constituted within a partnership/trust framework, not a Company.

Step Two: fund the pool with a levy on carbon-based energy transactions - this could be applied retrospectively, if the view is taken that energy companies have received windfalls, from high prices, the daft ETS scheme, or both.

Step Three: divide the Pool into "Units" redeemable for (say) 10 Kilowatt Hours of energy at the market price. So a Pool of £100m would create 200 million "Units" at an initial market price of 50 pence per Unit.

Step Four: use the £ proceeds for investment:

(a) directly in "Units" of future production of renewable energy projects - the average wind turbine may be funded if between 30 and 40% of its production is "sold forward" in this way;

(b) directly in "Units" of energy savings -eg retrofitting combined heat and power - and here the recipients of the interest free investment/ "Energy Loan" simply buy back Units from the Pool at the market price, which they can afford to do out of the savings they make.

The only policy issues are the question of how the initial 200 million Units - and the excess energy production of renewable energy projects - should be distributed, and the viability - in energy accounting terms - of "investments".

Recipients of Units would be free to use them by redeeming them for something of value - ie energy consumed or saved - or by selling them to someone else at the market price.

"Unitisation" of energy in this way completely reverses the polarity of the financial system from a "deficit basis" to a basis in something with intrinsic value.

It's not Rocket Science, either.

It is my view that the "Anglo Disease" so well diagnosed by Jerome cannot be "cured" within the same "deficit-based" paradigm involving credit creation by credit intermediaries/middlemen.

The solution IMHO lies in new "Peer to Peer" mechanisms for:

(a) mutual guarantee of credit (aka "time to pay")created "Peer to peer" between sellers and buyers;

(b) direct "Peer to Peer" investment in future production by "Unitisation".

The key is to "Unitise" the use value of energy - thereby creating a globally exchangeable or "fungible" Unit of currency,and land rental values - which creates a nationally exchangeable and fungible currency.

There is nothing whatever stopping any groups or networks of individualsfrom coming together in "Community Partnerships" to implement such solutions immediately.

I am not just advocating this, but doing everything in my power to work with people to actually do it, and post "Credit Crunch" I am getting immense interest.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Tue Sep 23rd, 2008 at 06:18:40 AM EST
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