Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
In my view, Prepay is an optimal (which is why it is the Last Big Thing) instrument in the way that it enables the flows of value from:

(a) the capacity of people to produce goods and services; and

(b) the use value of productive assets over time;

to be monetised.

There are two key regulatory requirements however, neither of which was present in the case of Enron then or the Saudis now (who have inflated crude oil prices as a consequence of using pre-pay opaquely almost certainly with the connivance of J P Morgan).

(a) Transparency - so everyone in a market can see how many Units are in issue; and

(b) Quality Control - ie a 'Monetary Authority' who may act to review the true productive capacity which stands behind units in issue.

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

by ChrisCook (cojockathotmaildotcom) on Wed Dec 19th, 2012 at 08:54:15 AM EST
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