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Adventures in mutual credit

Mutual Guarantors

I read Thomas Greco's 'The end of money and the future of civilization'. He talked about mutual guarantor groups, which are common in microcredit loans. This idea had natural appeal because it's more about trust in people than arbitrary formulae, and it has predecessors in many cultures and works very well.

Cc Advocacy group (experimental)

As I have

The situation in Auroville

Auroville in South India (population: 2000 ish), is a conscious experiment in building a model city of the future, in accordance with the ideals of the esteemed Sri Aurobindo and the Mother. Work is going on here with energy, permaculture, transport, education, therapies, water treatment, art, development, (typically in the surrounding villages), spirituality and of course currencies.

To do, or at least, needs doing, 2010

Just for reference, here is the hopelessly bloated list of what I think needs to be done, as soon as possible in order to create change from below in the global financial system.

Community Forge

  • improve design of, so our poverty isn't so obvious.
  • employ a tech manager so I can get on with other things
  • draft a five year plan to apply for funding to allow them to work at a higher level.
  • map all the schemes in Western Europe, according to commitment made by Tim at summer camp 2009

A brand new currency for Worcester shoppers?

Response to Worcester Alliance's proposal for a Worcester Pound (document no longer online).

Some folks in Worcester are planning to introduce a local pound. I would like to offer an opinion during this design phase.

I would like you to consider a different local currency mechanism to the ones being used in Totnes, Lewis, Brixton, and Sussex. But first I would like to ask you some important questions.

3 types of local money

It seems to me that local currencies come in three flavours.

Mutual Credit
This is what my software supports. It's just a way of tracking debts between people - and when all the debts are paid off, the total value in the system is zero. This system is best for communities with good boundaries, and a solid membership. The main problem with is that half the members will be in debt at any time, and there is nothing to stop them dropping out while owing.

Generic article on sustainable money

Neither sustainable nor just: the current financial system

The story of money is the backstory of history, and some see in it a catalogue of the largest fraud and theft campaign in history, the present problems being no exception.

More fiat vs mutual credit

I have understood for some time now that by ignoring the currency issuing account or creating other accounts, a mutual credit system can be easily adapted to different sets of needs. As a systems thinker, I like the elegance of zero balance systems where balances add up to zero and there is always exactly the right amount of money. However the fiat approach though a little messier has some interesting different qualities.

Sustainable Money

Following a presentation I made on the subject of money and sustainability, I thought it would be useful to note a list of the characteristics of the present dominant monetary system, and why it is unsustainable. Anyone care to add, or elaborate?

Settled in Tamil Nadu

Just a quick post to say Nick and I are settling in Auroville, an experimental community on the coast of Tamil Nadu. We are sorting out regular cheap sources of food, regulating the electricity and internet supplies, meeting people connected with the project, and also working on Community Forge 1.0, which is eagerly awaited by several communities in France and Belgium.

For those whom it may concern, pictures are below!

Street view



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