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Friend of mine dropped this in my inbox some time back and I just got around to watching it. It is from the Web 2.0 conference and this speaker, Douglas Rushkoff goes on to explain the interesting concept of "peer to peer currency" and monetary system.
(the youtube video is a little faster than the one from their website: 15 min in length with the first portions being the more interesting.)
Since I'm no economic guru by any stretch, I'd be curious to hear folks thoughts on this, not so new concept. It is mentioned that the creators of paypal had this concept in mind initially but managed to only get part of the way "there". The idea is that in our digital age you don't need a traditional bank and that currency can be exchanged from person to person in an instant. Your paycheck could be deposited directly into 'your' account/name instead of your account at a bank. With the only actual bank being needed as more of a lending institution for things like cars, homes, etc...
Douglas Rushkoff explains it much better than I ever could and I don't even pretend to have my mind around the whole concept, what social implications it would have on our current system of finance, but it was something I thought interesting all the same.
When we consider things like oil cartels and industry striving to prevent the development of technologies that would loosen their control over energy, I look at this and think much the same applies. Whether one agrees or not, its understandable why an industry would fight to preserve itself. Reminded me of the following quote:
"There is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than the creation of a new system. For the initiator has the enmity of all who would profit by the preservation of the old system and merely lukewarm defenders in those who would gain by the new one." - Niccolo Machiavelli, The Prince
I've a PayPal account. Extra spending money gets stored there until I'm ready to make my purchase(s). The places I shop all take PayPal with no problem. I do a majority of my non-food purchases online, so it works out great for me.
I also have a savings account with money I do not touch, as well as a standard checking account.
I've a PayPal account. Extra spending money gets stored there until I'm ready to make my purchase(s). The places I shop all take PayPal with no problem. I do a majority of my non-food purchases online, so it works out great for me.
I also have a savings account with money I do not touch, as well as a standard checking account.
Ok, but a standard banking savings account barely pays enough interest to keep up with inflation and its lest cost effective when dealing with smaller amounts. Checking, why is that even needed? If you had a private account that says, "Rita2.4824986.3498725 has X amount of credits" then what purpose does the bank serve? If you buy goods or pay a bill it comes directly out of Rita2.4..... account instead of Rita's account at the bank.
Bare in mind this is a conceptual what if hypothetical here and this guy is talking about completely changing how our monetary system works.
I would think free market advocates would be all over this as it doesn't get any freer and puts 100% responsibility in the hands of the individual instead of various institutions.
Hehehe... he is saying something I figured out decades ago... you are not "free" until you leverage yourself to be free... its not cheap either... it is my ultimate goal to be "free"... and yes, what he is explaining is "true" free markets do exist but are not what we have today which is a detriment to the world society... the wealthy powerful government don't want to give up their power... renewable energy is VITAL and KEY to freedom from the system of the oligarchs... I have said it in multiple forums that Solar Energy is soooooo vital and important and that we need more capital to increase its efficiency and bring down its costs... until that is done, nobody is free...
Ok, but a standard banking savings account barely pays enough interest to keep up with inflation and its lest cost effective when dealing with smaller amounts. Checking, why is that even needed? If you had a private account that says, "Rita2.4824986.3498725 has X amount of credits" then what purpose does the bank serve? If you buy goods or pay a bill it comes directly out of Rita2.4..... account instead of Rita's account at the bank.
Bare in mind this is a conceptual what if hypothetical here and this guy is talking about completely changing how our monetary system works.
I would think free market advocates would be all over this as it doesn't get any freer and puts 100% responsibility in the hands of the individual instead of various institutions.
You are correct about the interest rate. It's pathetic. But it's a separate account that I can't just go grab money from whenever I want. Much like a retirement account, but without the fees and such.
The concept itself is great from what you've described. I can't exactly watch the video because it's YouTube and blocked. I was just noting that I use my PayPal account much like a bank account. I should probably also add that some of my contracts pay directly to that paypal account vice my actual bank account.
I've also considered dropping my regular checking account in lieu of my PayPal, but my normal job will only pay via check or direct deposit to a regular bank. As it is now, I need some medium to transfer my normal wages over to PayPal.
Banks would not like it one bit, though, for something like Paypal to almost completely take away account-holding. They make a pretty penny on overdraft fees.
It doesn't make a great deal of sense to me really, as you always need some sort of impartial third party to record accurately how much is in each account (or else I would give myself a billion dollars in an instant). Banks also lend out the money with fractional reserves, allowing for things like credit, mortgages, and investments (since you can't hold the certificates anymore). As monetary supply increases due to inflation, from population increasing and interest, you need accounts that would pay interest in a way that makes sense split from interest coming in and going out.
Holding accounts just by the government in an isolated account would be an alternative. However, it is unlikely that it would be efficient to loan out or pay interest to individuals (T-bills pretty much do that now though, with minimal risk or interest), so the more people put it in there instead of banks then the price of loans would increase dramatically.
Hehehe... he is saying something I figured out decades ago... you are not "free" until you leverage yourself to be free... its not cheap either... it is my ultimate goal to be "free"... and yes, what he is explaining is "true" free markets do exist but are not what we have today which is a detriment to the world society... the wealthy powerful government don't want to give up their power... renewable energy is VITAL and KEY to freedom from the system of the oligarchs... I have said it in multiple forums that Solar Energy is soooooo vital and important and that we need more capital to increase its efficiency and bring down its costs... until that is done, nobody is free...
I have thought about how much personal responsibility it would take to be truly "free" if you will. Just how well would the bulk of America manage their financial affairs if such a system were in place. What effects would something like say, fusion energy have on our energy markets as many are predicting working commercially viable reactors in less than 20 years.
Quote:
Originally Posted by subsound
It doesn't make a great deal of sense to me really, as you always need some sort of impartial third party to record accurately how much is in each account (or else I would give myself a billion dollars in an instant). Banks also lend out the money with fractional reserves, allowing for things like credit, mortgages, and investments (since you can't hold the certificates anymore). As monetary supply increases due to inflation, from population increasing and interest, you need accounts that would pay interest in a way that makes sense split from interest coming in and going out.
Holding accounts just by the government in an isolated account would be an alternative. However, it is unlikely that it would be efficient to loan out or pay interest to individuals (T-bills pretty much do that now though, with minimal risk or interest), so the more people put it in there instead of banks then the price of loans would increase dramatically.
As I sorrowfully attempt to get my mind around various aspects of this, you point out many of the things I find as preventing such a system. Who would manage the digital accounting of individual personal accounts, the government or private data storage company like Google or something? If direct digital accounting were in place, then how would this effect the economy if everyone had to save for a car instead of being given credit to purchase one, etc...
Even still, I see where the guy is going with this and it wouldn't surprise me to see alterations in our monetary system as society advances in the future. It wasn't that long ago when the issuance of credit was like going before a council of judges to be scrutinized on every aspect of your financial stability and means before anyone gave you a nickel. Today, they still hand out loans to just about anyone who can sign their name.
When we consider things like oil cartels and industry striving to prevent the development of technologies that would loosen their control over energy, I look at this and think much the same applies. Whether one agrees or not, its understandable why an industry would fight to preserve itself. Reminded me of the following quote:
"There is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than the creation of a new system. For the initiator has the enmity of all who would profit by the preservation of the old system and merely lukewarm defenders in those who would gain by the new one." - Niccolo Machiavelli, The Prince
I wonder how smooth was the transition from the agricultural/rural age to an industrial/urban dominated society.How readily was the steam engine accepted over the then traditional water transport. Or how difficult was it to go from relying on horse and carriage to the automobile? Or for that matter developing the aviation sector?
What role if any did government play in making those major transitions especially since the less efficient, antiquated system probably had powerful supporters behind it and the masses are apathetic, even hostile toward major paradigm shifts. The building of a whole, new infrastructure that requires mass production, mass training of workers and allocation of money and planning while at the same time keeping the conservationists at bay must have been such a massive undertaken I can't imagine the national government not being involved in some way.
There are some people with ideas on how to jump start green economy and that brings back jobs to the states and helps the environment at the same time.
GoldMoney was created by a gold bug, and is well respected as a form of paypal where you transact in virtual grams of gold. Vaults are in Jersey (not New Joisey, but the Channel Islands) as well as in Zurich and are audited on a regular basis.
Paypal is also anti-gun and you cannot conduct transactions relating to anything firearms, even if it's just ammo or gun parts.
stashing your money in your couch/mattress is the new thing to do. itll eventually collect interest and you wont have to worry about losing you money unless your stupid enough to throw away your couch/mattress and for got to take out the money.
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