Facebook FAZ Base

Solidar Some of the FAZ features are implemented into the Solidar cryptocurrency. Solidar (SDR) is a cryptocurrency derived from Freicoin (FRC), that shares the codebase with Bitcoin (BTC), which implements the demurrage and basic income

www.solidar.it

On March 2015, the Association Winc e.V. issued in the legal form of vouchers, 20.000.000 coins. All the coins were donated to the Association. The 1% of these coins then will be distributed as reward to miners and the 99% will be distributed to the Solidar system participants as universal basic income.

Solidar Universal Basic Income. The Association Winc e.V. distributes basic income through Facebook. Participants can subscribe to a Facebook page and through the Facebook Messenger can send some commands to a chatbot on the page. Through these commands, they can ask the chatbot to create a online exchange wallet on which to receive the basic income, they can ask to transfer funds to other participants to buy goods and services, they can ask to inquire the online exchange wallet balance, they can ask to transfer their funds from the online exchange wallet to their cryptocoin wallet. Demurrage fee of 20% yearly is applied on the participants’ wallets. Every 10 minutes a very small percentage of SDR in the participants’ wallets is returned to the Association wallet.

Solidar Exchanges. To facilitate the exchanges between the participants, the Association Winc e.V. will promote the creation of a multivendor e-commerce website. Individuals and enterprises will subscribe to the website, which will be similar to Amazon, and enterprises will open shops on the platform. All the goods and services will be priced with a compound price, expressed by a value in fiat currency (euro, dollar) plus a value in solidar, to be paid with a split payment method. The individuals will pay using a their paypal account with debit/credit cards for fiat currency partial payment and their cryptocoin wallet for solidar partial payment. The vendors will receive payments in fiat currency on the their paypal account and payments in solidar on their cryptocoin wallet.

Solidar Loans. Solidar loans to fund projects will be implemented through a P2P microlending platform, also working with split payment.

Further development is expected.

Annunci

An article from The Economist on demurrage

Free exchange

Why sub-zero interest rates are neither unfair nor unnatural

When borrowers are scarce, it helps if money (like potatoes) rots

DENMARK’S Maritime Museum in Elsinore includes one particularly unappetising exhibit: the world’s oldest ship’s biscuit, from a voyage in 1852. Known as hardtack, such biscuits were prized for their long shelf lives, making them a vital source of sustenance for sailors far from shore. They were also appreciated by a great economist, Irving Fisher, as a useful economic metaphor.

Imagine, Fisher wrote in “The Theory of Interest” in 1930, a group of sailors shipwrecked on a barren island with only their stores of hardtack to sustain them. On what terms would sailors borrow and lend biscuits among themselves? In this forlorn economy, what rate of interest would prevail?

One might think the answer depends on the character of the unfortunate sailors. Interest, in many people’s minds, is a reward for deferring gratification. That is one reason why low interest rates are widely perceived as unjust. If an abstemious sailor were prepared to lend a biscuit to his crewmate rather than eating it immediately himself, he would deserve more than one biscuit in repayment. The rate of interest should be positive—and the sharper the hunger of the sailors, the more positive it would be.

In fact, Fisher pointed out, the interest rate on his imagined island could only be zero. If it were positive, any sailor who borrowed an extra biscuit to eat would have to use more than one biscuit in the future to repay the loan. But no sailor would accept those terms because he could instead eat one more piece from his own supply, thereby reducing his future consumption by one, and only one, piece. (A sailor who had already depleted his supplies, leaving him with no additional hardtack of his own to eat today, would be in no position to repay borrowed biscuits either.)

That was bad news for thrifty seafarers. But worse scenarios were possible. If the sailors had washed ashore with perishable figs rather than imperishable hardtack, the rate of interest would have been steeply negative. “[T]here is no absolutely necessary reason inherent in the nature of man or things why the rate of interest in terms of any commodity standard should be positive rather than negative,” Fisher concluded.

Two years ago, when the Bank of Japan (BoJ) began charging financial institutions for adding to their reserves at the central bank, its negative-rate policy was harshly criticised for unsettling thrifty households, jeopardising bank profitability and killing growth with “monetary voodoo”. Behind this fear and criticism was perhaps a gut conviction that negative rates upended the natural order of things. Why should people pay to save money they had already earned? Earlier cuts below zero in Switzerland, Denmark, Sweden and the euro area were scarcely more popular.

But these monetary innovations would have struck some earlier economic thinkers as entirely natural. Indeed, “The Natural Economic Order” was the title that Silvio Gesell gave to his 1916 treatise in favour of negative interest rates on money. In it, he span his own shipwreck parable, in which a lone Robinson Crusoe tries to save three years’ worth of provisions to tide him over while he devotes his energies to digging a canal. In Gesell’s story, unlike Fisher’s, storing wealth requires considerable effort and ingenuity. Meat must be cured. Wheat must be covered and buried. The buckskin that will clothe him in the future must be protected from moths with the stink-glands of a skunk. Saving the fruits of Crusoe’s labour entails considerable labour in its own right.

Too many Crusoes

Even after this care and attention, Crusoe is doomed to earn a negative return on his saving. Mildew contaminates his wheat. Mice gnaw at his buckskin. “Rust, decay, breakage…dry-rot, ants, keep up a never-ending attack” on his other assets.

Salvation for Crusoe arrives in the form of a similarly shipwrecked “stranger”. The newcomer asks to borrow Crusoe’s food, leather and equipment while he cultivates a farm of his own. Once he is up and running, the stranger promises to repay Crusoe with freshly harvested grain and newly stitched clothing.

Crusoe realises that such a loan would serve as an unusually perfect preservative. By lending his belongings, he can, in effect, transport them “without expense, labour, loss or vexation” into the future, thereby eluding “the thousand destructive forces of nature”. He is, ultimately, happy to pay the stranger for this valuable service, lending him ten sacks of grain now in return for eight at the end of the year. That is a negative interest rate of -20%.

If the island had been full of such strangers, perhaps Crusoe could have driven a harder bargain, demanding a positive interest rate on his loan. But in the parable, Crusoe is as dependent on the lone stranger, and his willingness to borrow and invest, as the stranger is on him.

In Japan, too, borrowers are scarce. Private non-financial companies, which ought to play the role, have instead been lending to the rest of the economy (see chart), acquiring more financial claims each quarter than they incur. At the end of September 2017 they held ¥259trn ($2.4trn) in currency and deposits.

Gesell worried that hoarding money in this way perverted the natural economic order. It let savers preserve their purchasing power without any of the care required to prevent resources eroding or any of the ingenuity and entrepreneurialism required to make them grow. “Our goods rot, decay, break, rust,” he wrote, and workers lose a portion of their principal asset—the hours of labour they could sell— “with every beat of the pendulum”. Only if money depreciated at a similar pace would people be as anxious to spend it as suppliers were to sell their perishable commodities. To keep the economy moving, he wanted a money that “rots like potatoes” and “rusts like iron”.

The BoJ shuns such language (and, in the past, has at times seemed determined to keep the yen as hard as a ship’s biscuit). But in imposing a negative interest rate in 2016 and setting an inflation target three years before, it is in effect pursuing Gesell’s dream of a currency that rots and rusts, albeit by only 2% a year.

This article appeared in the Finance and economics section of the print edition under the headline “Negative justice”

 

FAZCOIN, the FAZ cryptocurrency

Solidar

Some of the FAZ features are implemented into the Solidar cryptocurrency. Solidar (SDR) is a cryptocurrency derived from Freicoin (FRC), that shares the codebase with Bitcoin (BTC), which implements the demurrage and basic income

www.solidar.it

On March 2015, the Association Winc e.V. issued in the legal form of vouchers, 20.000.000 coins. All the coins were donated to the Association. The 1% of these coins then will be distributed as reward to miners and the 99% will be distributed to the Solidar system participants as universal basic income.

Solidar Universal Basic Income. The Association Winc e.V. distributes basic income through Facebook. Participants can subscribe to a Facebook page and through the Facebook Messenger can send some commands to a chatbot on the page. Through these commands, they can ask the chatbot to create a online exchange wallet on which to receive the basic income, they can ask to transfer funds to other participants to buy goods and services, they can ask to inquire the online exchange wallet balance, they can ask to transfer their funds from the online exchange wallet to their cryptocoin wallet. Demurrage fee of 20% yearly is applied on the participants’ wallets. Every 10 minutes a very small percentage of SDR in the participants’ wallets is returned to the Association wallet.

Solidar Exchanges. To facilitate the exchanges between the participants, the Association Winc e.V. will promote the creation of a multivendor e-commerce website. Individuals and enterprises will subscribe to the website, which will be similar to Amazon, and enterprises will open shops on the platform. All the goods and services will be priced with a compound price, expressed by a value in fiat currency (euro, dollar) plus a value in solidar, to be paid with a split payment method. The individuals will pay using a their paypal account with debit/credit cards for fiat currency partial payment and their cryptocoin wallet for solidar partial payment. The vendors will receive payments in fiat currency on the their paypal account and payments in solidar on their cryptocoin wallet.

Solidar Loans. Solidar loans to fund projects will be implemented through a P2P microlending platform, also working with split payment.

Further development is expected.

To start the E-FAZ we could adopt a demurrage based currency called Solidar. need to create an internet infrastructure, we’ll call FAZ Base, where users can subscribe, can open web wallets where to receive cryptocurrency UBI funds and can spend them on a marketplace, using partly a cryptocurrency and partly a fiat currency.
1) The FAZCoin. As cryptocurrency to be used we could choose Solidar (SDR), which is based on demurrage and which is distributed as universal basic income (UBI). 
Solidar (SDR) is a fork of Freicoin (FRC). Freicoin (FRC) is a fork of Bitcoin (BTC). Solidar is legally issued as a voucher by the german association Winc e.V. and is mined through pool mining with Bitcoin.
More economic information is available on Solidar website:
Code is available on Github:
2) WordPress site. We wish to create a WordPress site where subscribed users can receive their UBI and can spend on a marketplace, using partly our cryptocurrency and partly a fiat currency
3)WordPress web wallets’ system. We wish create a web wallets’ system based on WordPress,  in which users can deposit their altcoins, withdraw, and transfer to other users. In our case solidars.  Our goal is to create an users’ easy-to-use interface like the one adopted on MannaBase https://www.mannabase.com/ but their code is not reusable because is closed code.  To do that we wish to use this plugin: 
                                                                                                                  
The plugin works with a Bitcoin full node, but also with a cloud wallet.  We choose to host the altcoin on a  paid cloud wallet hosting on CoinPayments https://www.coinpayments.net because we have no hardware resources to mantain a full node.  To connect the first plugin to the CoinPayments API, we wish to use this plugin: 

4) WordPress UBI giving system. After we have web wallets working on the WordPress site, we need to send Solidar UBI funds to users each month. To do that we wish to use this plugin: 
                                                                                                                                          
                                                                                                             
5)  WordPress multivendor marketplace. After the users have their web wallets and the UBI funds on them, they need to spend them, so we will setup a multivendor marketplace based on Woocommerce plugin. 
Our goal is create productive chains in which is possible to spend only solidars, but to reach this goal fastly we thought we need a dual currency system, with prices expressed partly in solidars and partly in a fiat currency (dollar, euro and soon). For example a teapot could cost 5 SDR + 5 EUR. In this way the user see the system as a discounted fiat currency payment (cause UBI is for free, he really pay only 5 EUR) so it’s competitive with an ordinary market but at the same time it creates a parallel market in solidars! More the solidars spread and more the SDR part of the price increases.
                                                                                                                  
6) Dual currency Woocommerce plugin. That’s the code we need to develop. We need to express prices on Woocommerce/Dokan (which is a plugin for multivendor marketplaces like Amazon) in SDR+EUR (or USD, and other fiat currencies). When an user pays goods or services he has to first pay the part in SDR and then the part in fiat currency. With commissions from vendors part SDR and part fiat currencies.
The actions needed are these:                                                          
                                                        
?ui=2&ik=ba88a3b822&view=fimg&th=1634bdfb75e0a59a&attid=0.1&disp=emb&realattid=ii_jh0zw7c40_1634bc6c0c6dc768&attbid=ANGjdJ9n1i0VUXu7K75Pv-gXLyMHmTTl_4mpJKujCxRPt7uOOr4FUgQP_5XedJeWCUQaWsCts0S-GuQ6I_VAhVU9pfS4z0XU1eJ9wQxUvb5xZYFhVje7bWpu1TiKz-I&sz=w842-h474&ats=1526202778593&rm=1634bdfb75e0a59a&zw&atsh=1
The bitcoin/alcoin payment gateway for Woocommerce is already developped, so we wish to use that plugin: 
                                                                                          
and the fiat currencies Paypal payment gateway for Woocommerce could used through that plugin: 
The action required is to write a Woocommerce plugin that basicly has these functions: a) express goods and services’ prices (and vendors’ commissions) in Solidar and in a fiat currency on Woocommerce cart.  b) glue in a chain the Woocommerce Solidar payments gateway and the fiat currencies’ payments gateway so to make possible for an user (and for a vendor) to make a dual currency payment.
In the case of Solidar adoption as FAZCoin we need to sync on Github the latest development commits of Freicoin with Solidar, because they share a similar data base. The Freicoin developpers enhanced the code to make faster transactions and so we need this sync.
Conclusions. What was described is the FAZ PROJECT PHASE ONE. We adopted the Solidar/Freicoin because has demurrage but unfortunately UBI giving has a bottleneck when users become greater. To solve this problem we need to develop a new cryptocurrency from scratch. But to do that we need some funds to pay developpers…and that can be done launching the marketplace and collecting fiat currencies’ funds from vendors! A way to use egoistic behaviours for common good !!  The FAZ PROJECT PHASE TWO is to develop a complete post-scarcity economic system in which is possible to give free loans to people interested in creating projects, as described on the FAZ website 

Attualmente non esiste alcuna criptomoneta che ha tutte le caratteristiche della FAZ.

Solidar. Alcune delle caratteristiche della FAZ sono implementate nella criptomoneta Solidar.  Solidar (SDR) è un fork della criptomoneta Freicoin (FRC), che condivide la base di codice con Bitcoin (BTC), ma che in più implementa il demurrage e l’erogazione di reddito di base universale ( www.solidar.it ).

Nel marzo 2015, l’Associazione Winc e.V. ha emesso sotto la forma giuridica di voucher, 20.000.000 unità monetarie. Tutte le monete sono state donate all’Associazione. L’1% di queste monete sarà distribuita come premio per i miners e il 99% verrà distribuito ai partecipanti al sistema Solidar come reddito di base universale.

Solidar UBI. L’Associazione Winc eV distribuisce reddito di base tramite Facebook. I partecipanti possono iscriversi a una pagina di Facebook e attraverso il Facebook Messenger inviare alcuni comandi ad un chatbot sulla pagina. Attraverso questi comandi, si può chiedere al chatbot di creare un portafoglio di scambio online su cui ricevere il reddito di base, si può chiedere di trasferire fondi ad altri partecipanti, di acquistare beni e servizi, di verificare il saldo del proprio portafoglio online, di trasferire i propri fondi dal portafoglio di scambio online al proprio wallet di cryptocoin. Un tasso di demurrage del 20% annuo viene applicato sui portafogli dei partecipanti. Ogni 10 minuti una piccola percentuale di SDR nei portafogli dei partecipanti viene restituito al portafoglio dell’Associazione.

Scambi Solidar. Per facilitare gli scambi tra i partecipanti, l’Associazione Winc eV promuoverà la creazione di un sito web di e-commerce multivendor. Gli individui e le imprese potranno iscriversi al sito web, che sarà simile ad Amazon, e le imprese potranno aprire shops sulla piattaforma. Tutti i beni ed i servizi saranno valutati con un prezzo composto, espressa da un valore in moneta a corso forzoso (euro, dollaro) più un valore in Solidar, da pagare con un metodo di pagamento parziale  (split payment). Gli individui pagheranno parzialmente utilizzando un proprio conto PayPal con carte di debito / credito per la valuta fiat e parzialmente con il loro wallet di  cryptocoin per i Solidar. I venditori riceveranno pagamenti in moneta a corso forzoso sul proprio conto PayPal e pagamenti in Solidar sul loro portafoglio cryptocoin.

Prestiti Solidar. Prestiti Solidar a progetti economici saranno attuati attraverso una piattaforma P2P di microprestiti, lavorando anche qui con lo split payment.

Si prevede un ulteriore sviluppo nel 2018.

Solidar. Some of the FAZ features are implemented into the Solidar cryptocurrency. Solidar (SDR) is a cryptocurrency derived from Freicoin (FRC), that shares the codebase with Bitcoin (BTC), which implements the demurrage and basic income (www.solidar.it).

On March 2015, the Association Winc e.V. issued in the legal form of vouchers, 20.000.000 coins. All the coins were donated to the Association. The 1% of these coins will be distributed as reward to miners and the 99% will be distributed to the Solidar system participants as universal basic income.

Solidar Universal Basic Income. The Association Winc e.V. distributes basic income through Facebook. Participants can subscribe to a Facebook page and through the Facebook Messenger can send some commands to a chatbot on the page. Through these commands, they can ask the chatbot to create a online exchange wallet on which to receive the basic income, they can ask to transfer funds to other participants to buy goods and services, they can ask to inquire the online exchange wallet balance, they can ask to transfer their funds from the online exchange wallet to their cryptocoin wallet. Demurrage fee of 20% yearly is applied on the participants’ wallets. Every 10 minutes a very small percentage of SDR in the participants’ wallets is returned to the Association wallet.

Solidar Exchanges. To facilitate the exchanges between the participants, the Association Winc e.V. will promote the creation of a multivendor e-commerce website. Individuals and enterprises will subscribe to the website, which will be similar to Amazon, and enterprises will open shops on the platform. All the goods and services will be priced with a compound price, expressed by a value in fiat currency (euro, dollar) plus a value in solidar, to be paid with a split payment method. The individuals will pay using a their paypal account with debit/credit cards for fiat currency partial payment and their cryptocoin wallet for solidar partial payment. The vendors will receive payments in fiat currency on the their paypal account and payments in solidar on their cryptocoin wallet.

Solidar Loans. Solidar loans to fund projects will be implemented through a P2P microlending platform, also working with split payment.

Further development is expected.

To start the E-FAZ we need to create an internet infrastructure, we’ll call FAZ Base, where users can subscribe, can open web wallets where to receive cryptocurrency UBI funds and can spend them on a marketplace, using partly a cryptocurrency and partly a fiat currency.
1) The FAZCoin. As cryptocurrency to be used we could choose Solidar (SDR), which is based on demurrage and which is distributed as universal basic income (UBI). 
Solidar (SDR) is a fork of Freicoin (FRC). Freicoin (FRC) is a fork of Bitcoin (BTC). Solidar is legally issued as a voucher by the german association Winc e.V. and is mined through pool mining with Bitcoin.
More economic information is available on Solidar website:
Code is available on Github:
2) WordPress site. We wish to create a WordPress site where subscribed users can receive their UBI and can spend on a marketplace, using partly our cryptocurrency and partly a fiat currency
3) WordPress web wallets’ system. We wish create a web wallets’ system based on WordPress,  in which users can deposit their altcoins, withdraw, and transfer to other users. In our case solidars.  Our goal is to create an users’ easy-to-use interface like the one adopted on MannaBase https://www.mannabase.com/ but their code is not reusable because is closed code.  To do that we wish to use this plugin: 
                                                                                                                  
The plugin works with a Bitcoin full node, but also with a cloud wallet.  We choose to host the altcoin on a  paid cloud wallet hosting on CoinPayments https://www.coinpayments.net because we have no hardware resources to mantain a full node.  To connect the first plugin to the CoinPayments API, we wish to use this plugin: 
 
4) WordPress UBI giving system. After we have web wallets working on the WordPress site, we need to send Solidar UBI funds to users each month. To do that we wish to use this plugin: 
                                                                                                                                          
                                                                                                              
5)  WordPress multivendor marketplace. After the users have their web wallets and the UBI funds on them, they need to spend them, so we will setup a multivendor marketplace based on Woocommerce plugin. 
Our goal is create productive chains in which is possible to spend only solidars, but to reach this goal fastly we thought we need a dual currency system, with prices expressed partly in solidars and partly in a fiat currency (dollar, euro and soon). For example a teapot could cost 5 SDR + 5 EUR. In this way the user see the system as a discounted fiat currency payment (cause UBI is for free, he really pay only 5 EUR) so it’s competitive with an ordinary market but at the same time it creates a parallel market in solidars! More the solidars spread and more the SDR part of the price increases.
                                                                                                                   
6) Dual currency Woocommerce plugin. That’s the code we need to develop. We need to express prices on Woocommerce/Dokan (which is a plugin for multivendor marketplaces like Amazon) in SDR+EUR (or USD, and other fiat currencies). When an user pays goods or services he has to first pay the part in SDR and then the part in fiat currency. With commissions from vendors part SDR and part fiat currencies.
The actions needed are these:                                                          
                                                        
?ui=2&ik=ba88a3b822&view=fimg&th=1634bdfb75e0a59a&attid=0.1&disp=emb&realattid=ii_jh0zw7c40_1634bc6c0c6dc768&attbid=ANGjdJ9n1i0VUXu7K75Pv-gXLyMHmTTl_4mpJKujCxRPt7uOOr4FUgQP_5XedJeWCUQaWsCts0S-GuQ6I_VAhVU9pfS4z0XU1eJ9wQxUvb5xZYFhVje7bWpu1TiKz-I&sz=w842-h474&ats=1526202778593&rm=1634bdfb75e0a59a&zw&atsh=1
The bitcoin/alcoin payment gateway for Woocommerce is already developped, so we wish to use that plugin: 
                                                                                          
and the fiat currencies Paypal payment gateway for Woocommerce could used through that plugin: 
The action required is to write a Woocommerce plugin that basicly has these functions: a) express goods and services’ prices (and vendors’ commissions) in Solidar and in a fiat currency on Woocommerce cart.  b) glue in a chain the Woocommerce Solidar payments gateway and the fiat currencies’ payments gateway so to make possible for an user (and for a vendor) to make a dual currency payment.
In the case of Solidar adoption as FAZCoin we need to sync on Github the latest development commits of Freicoin with Solidar, because they share a similar data base. The Freicoin developpers enhanced the code to make faster transactions and so we need this sync.
Conclusions. What was described is the FAZ PROJECT PHASE ONE. We adopted the Solidar/Freicoin because has demurrage but unfortunately UBI giving has a bottleneck when users become greater. To solve this problem we need to develop a new cryptocurrency from scratch. But to do that we need some funds to pay developpers…and that can be done launching the marketplace and collecting fiat currencies’ funds from vendors! A way to use egoistic behaviours for common good !!  The FAZ PROJECT PHASE TWO is to develop a complete post-scarcity economic system in which is possible to give free loans to people interested in creating projects, as described on the FAZ website 

FAZ, Financial Autonomous Zone: A Post-Scarcity Economic Model

fazIntroduction

In light of, and as a remedy to, the notorious, deep, and chronic damages (wage slavery, unemployment, de-industrialization, social injustice, misery, obscenely unequal wealth distribution, spiritual retrogression, etc.) inflicted to society by the present system of money management, we have devised what we believe is an alternative, and wholesome, model of wealth creation and distribution, whose performance hinges on a very particular conception and treatment of the means of payment.

In this last regard, the idea is to devise a monetary medium, whose nature and life-cycle is radically different from the traditional one —different, that is, from what is known as “loan-money,” which is put into circulation through banking debt.

Continua a leggere “FAZ, Financial Autonomous Zone: A Post-Scarcity Economic Model”

The European Union at the battle of Cyprus

The EU has called on the Government of Cyprus to recover 5.8 billion of extraordinary taxes in order to receive the bailout of 10 billion developed by the technicians of the ECB. The suggestion of troika was to tax deposits exceeding 100,000 euro lying on Cypriots current accounts. In this way, not only would hit the richest, but most of all the deposits belonging to the Russians and of dubious origin. As you know, Cyprus is suspected of being a center of money laundering owned by the Russian mafia, and then, if you want to stay in Europe a minimum of decency must to be practiced . The Cypriot government, not to antagonize completely the rich Russians who have made the country one of the main bases of their deposits, have opted for a tax on all bank accounts, of 6.75% for less than € 100,000 and 9 , 9% for those above this threshold. In short, they did the discount to rich people, but they have very alarmed the people that we have seen a pull out from the pockets of the four coins he has.

Continua a leggere “The European Union at the battle of Cyprus”

FAZ, an economic system beyond scarcity

The theoretical assumption of the FAZ is based on the fact that resources are always sufficient. The economy of scarcity is the result of a contingent situation originated by political or social reasons. This assumption is based on the demonstration that the wealth consists in the organization of information flows, that create opportunities, and that this organization depends on the creativity and the cultural level of a society. On this assumption relies the foundation of the economy of abundance.

The demonstration was provided by Frank Tipler, and was based on these considerations: We observe, initially, that the capital of a company, according to Hayek, is given by the company’s revenue streams generated by the organization. ‘The datum usually called “capital reserve”, can be described adequately only in terms of the totality of all revenue streams including the existence of some non-permanent equity capital resources (along with the projected revenue) allowed to be choosen. […] Each of the constituent parts of this capital can be used in different ways and in different combinations with other permanent resources, to produce temporary flows of income. […] What is sacrified to obtain an income stream of a particular form of temporal shares, are always the potential revenue streams of other forms, that we could be have as alternative. Therefore, the only adequate description of the “capital reserve” is an enumeration of the full range of possible outflows of different temporal form, that can be produced with existing resources’. (F. Hayek’s selected works, 1942, 1971, cited by F. Tipler, Physics of Immortality, 1994).

These considerations upset the old vision of the company’s capital as a sum of goods with their own intrinsic value and, above all, indicate that the choice of certain forms of existing resources’ utilization, determine the income streams which are actually generated.

Tipler notes that the possible provisions are nothing more than the opportunities created by the use of the total assets, and these opportunities can be defined in terms of flows of information. It is possible, therefore, to define the resources in terms of opportunities and, therefore, in terms of flows of information manageable by an organism. This organism could be an elementary form of life, a society, a galaxy or the entire universe, but that does not change the nature of the phenomenon. Tipler concludes that sufficient resources are always in the universe, because it is easy to show that the amount of information manageable in the time of life is necessarily less than the full amount of available information, whatever is the speed of such information handling.

‘By definition, the number of the possible provisions that can be encoded in an information bit is 2 ^ 1. If, according to Hayek, we identify the total assets with the number of the possible provisions, we obtain that 2 ^ 1 represents the assets of the society, which grows, so, as 2 ^ (subjective time), And it is an exponential growth . Since the subjective time goes from zero to plus infinity, that means the assets grow exponentially forever in the subjective time’. (F. Tipler, Physics of Immortality, 1994).

The first and most revolutionary result of this assumption is that there is no need for material accumulation of capital. The capital required for the development of a society is the combination of the knowledge of that society and their organization. Without this element, all the gold in the world would be useless and could not produce anything. This body of knowledge is the multiplication of knowledge of all the members of a society and is a reciprocal function of the division and specialization of labor. In fact, the increase in division of labor lead to increase the collective knowledge, but also the increase of these involve an increase in the division of labor.

This set of collective knowledge, the material work and the intellectual as well and all tools and materials needed for the objects’ production, all both are the Social Capital, that’s must be considered a factor of production along with the other elements required to build any business.

Debt based economy criticism, The hell of debt and the paradise of plenty

by Domenico De Simone

Lectures on debt based economy criticism. How and why arose the financial crisis that is turning the world and how you can get out. A journey from the hell of debt to the paradise of plenty. From the society of hell to the society of paradise. Introduction to the course of debt economy criticism.

Part One

Continua a leggere “Debt based economy criticism, The hell of debt and the paradise of plenty”