04.- Desperado island markets

posted Mar 11, 2012, 9:19 AM by Desperado PEREZ   [ updated Jul 20, 2014, 4:17 AM ]
Capitalization

These new economy islands have to grow in the silence of the background of the protest and set trading systems that become no return to the money gambling economy arena. Once these activity areas start as new economy areas, they have to disappear from any economical statistics, and have no reconversion into the ordinary economy. It’s an Outsiders business by definition. 

P2P principles [1] should be applied as much as possible, so that it becomes vey little vulnerable to attacks to visible heads.

P2P methodologies would make the return to usual hierarchical systems difficult. Even the expression and consolidation of political ideas should align with P2P methods [2] so that no new bureaucratic "casta" could try to ride the movement.
  
In order that all this can be connected and capitalize we need to provide the movement and the new economy islands with an alternative monetary system. A new monetary system is the citizens passport in the land of the new economy. 

In summary, the fusion, consolidation and capitalization of the movement depend critically of the successfully launching a new monetary system (not a new currency) to provide the glue of the new economy solidarity trades and give the means for capitalization. 

Desperado island markets

The Insula economies have to be conceived as an osmotic pump of solidarity from the 99% that still have in the old economy, towards the desperados. This solidarity takes the form of action or voluntary services, goods or monetary donations. 

The desperados themselves should also become active and work on desperado jobs. By difference to the shameless invitation of the governments to engage unemployees into unpaid social volunteering works, even at public servant posts just revoked [3], as an additional means to depreciate the still employed workforce, a unscrupulous invitation to do slavery works to capitalize others ownerships, these jobs would be paid in goods, and would capitalize into desperado ownership. 

The priority of these economies is the injection of goods, basic goods. Solidarity services cannot be eaten. Therefore, the first priority is to organize things in order to obtain, prepare and distribute:
  1. Food
  2. Clothes
  3. Energy
  4. Shelter for the homeless
These are the survival priorities for the Desperados. Solidarity works are mainly focused to obtain this collective net result. The Insula reporting should, firstly, show the outcome in these terms, for example, in the number of distributed meals [4]. 

In order to avoid the birth of any totalitarian embrio, this economy has to be designed as a set of free Insula local internal markets operating on a new monetary system. 

An internal market for all desperado economy players

Local industries starting to operate with barter, social enterprises and NGOs, cooperatives, are like small ships navigating over an ocean of legal tender monetary systems serving the interests of the Fractional Reserve Banking sharks. 

This makes that all efforts revert in the final end into the Fractional Reserve Banking debt creation system. 


Moreover, Social Enterprises tend to run comprehensive collections of different social businesses, in order to avoid passing the legal tender money cold waters, planning them internally with not that sound criteria, allocating resources with subjective standadrds. Instead, a much more transparent policy would be to break them into consistent businesses, and let the new economy market regulate the value of each of them to the desperado "clients".

What is needed is islands of internal markets where social enterprise affairs can be traded on an isolated background of a monetary system made out of Community Currencies representing goods. 

The number of transaction grows exponentially with the number of enterprises, associated local industries, social enterprises, barter markets and cooperatives that trade within that Insula. 


Barter and localisation of economy

Barter is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is usually bilateral, but may be multilateral, and usually exists parallel to monetary systems in most developed countries, though to a very limited extent. Barter usually replaces money as the method of exchange in times of monetary crisis, such as when the currency may be either unstable (e.g., hyperinflation or deflationary spiral) or simply unavailable for conducting commerce (Wikipedia [5]).

In fact, there is an unnoticeable continuity between pure bartering and trade with a currency that is closely linked to the concrete goods it does represent. Most bartering websites use anyhow a unit of value to establish an initial comparison of value between the goods offered for exchange.
In this case, this unit or currency is circulated only on one transaction. 

Again, there is an unnoticeable continuity between bartering with community currencies circulated at one single transaction or a more flexible trade in which the community currency circulates for a limited number of transactions, because its local trade and the currency has a time extinction. 



It is all about anchoring the trade on the value of goods and anchoring the trade on local economy. Both are closely related.

 

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At The Great Transition [1] it is said: 

“When we talk about localisation and scale then, we are not simply saying that everything should be smaller. Appropriate size is what we are looking for in the Great Transition. Economies of scale are vital for efficient production in some areas. It makes no sense for every town in the UK to produce its own computers. But we have gone too far the other way, and assumed that nothing can be produced efficiently on a local scale. This obviously turns on what we mean by efficiency of course, but the key point is that just as there are economic benefits to producing some things on a large scale, there are major environmental, economic and social benefits from doing many others things on a more human, local scale. There are also very big costs associated with relying only on the large scale.”

Minimum size units for adequate economies of scale

Unit
District
Region
Nation
Continent
Globe
Size (miles)
20 

100
500
2000
10,000
Population
100,000
2 million
50 million
1 billion
5 billion
Production Food crops 
Cash crops
Housing
Energy (micro-renewables)
Energy-efficiency, housing retrofitting
Building materials
Processed food
Furniture
Hardware
Renewable energy (wind, hydro, solar)

Clothes, textiles 
Small machines & components
Electronic devices
Steel
Oil, gas, coal
Civil engineering
Books, films, bicycles
Vehicles 
Electronic systems
Small aircraft
Ships


Micro-chips
Pharma-ceuticals
Large aircraft


Distribution
Fresh food
Daily supplies
‘Groceries’
Clothes
Books 
Cars
Household appliances
Seeds
Bulk commodities, e.g., grain
Industrial machinery
Oil, gas


Services
Schooling
GP medical
House repair
Restaurants
Hotels
Waste recycling
Universities
Hospitals
Public health
Safety
‘High street’ and local banking
Buses
Theatre/cinema
Water
Insurance
News Media
Telecom
Wholesale banking
Electricity

Aviation
Railways

Shipping


It is precisely the sectors that have optimal size of scale at district and region the ones needed to fill the basic needs of the desperados. 

The process has started already. RIPESS is an intercontinental network that connects social and solidarity economy networks throughout the world. As a network of networks, it brings together continental networks, that in turn bring together national and sectoral networks. RIPESS believes in the importance of global solidarity in order to build and strengthen an economy that puts people and planet front and center. From Lima to Quebec, from Dakar to Luxembourg, RIPESS organizes global forums every four years ad is a nexus for learning, information sharing and collaboration.[6][7]

Islands of Solidarity Economies start to bloom everywhere. Solidarity Economy is conceived as the socio-economic, cultural and environmental system developped individually or collectively through practices of solidarity, participatory, human shareholders and non-profit development of the human being as the end of economy,  initiatives of association, business, economic and financial, committed to the following principles: 

  1. Equality. Promote equality in relationships and meet in a balanced manner interests of all the protagonists in the activities of the company or organization. 
  2. Employment. Create stable employment, especially favouring the access of people in or at risk of social exclusion, ensuring each person working conditions and decent pay, encouraging personal development and the assumption of responsibilities. 
  3. Environment. Encourage actions, products and production methods that respect the environment. 
  4. Cooperation. Promote cooperation instead of competition within and outside the organization. 
  5. For profit. Solidarity initiatives are primarily aimed at promoting human and social, so they are essentially non-private-profits. The benefits or profits accrue to society by supporting social projects, new initiatives solidarity or development cooperation programs, among others. 
  6. Commitment to the environment. Initiatives are committed to solidarity social environment in which they develop, which requires cooperation with other organizations and participation in networks as a way to experience how solidarity can generate an alternative economic model.[8]
Priorities: Barter market for the associated industries

A fundamental sector to be organised as soon as possible is a barter market for local SMEs. 

As the Internet grows as a means of exchange, it will increasingly liberate people from the formal market and barter and swapping will complement and, in some cases replace, consumption of new and increasingly expensive goods. Already, people sell their own houses and organise holidays, often, without money changing hands in the latter case. But we can also often get tools and fancies for free as people offer up things they no longer need.[11]

Last year IRTA Member Companies [12] using the “Modern Trade and Barter” process, made it possible for over 400,000 companies World Wide to utilize their Excess Business Capacities and underperforming assets, to earn an estimated $12 Billion dollars in previously lost and wasted revenues.
In terms of income, Excess Business Capacity represents the difference between actual cash revenues received, and the cash revenues and profits that would be realized, if a business operated at 100% of its capacity.  Most businesses are operating at less than 100% of their potential business capacity.

Helping the local SME´s to build a barter system to trade their excess capacity and further helping them at the commercial circuit with “buy local”, “buy with solidarity” publicity are the two strong partnerships between the desperados economy and the local SMEs, currently working in the FRB world, that will facilitate them a smooth transition towards the new economy. 

In the THE END OF MONEY AND THE FUTURE OF CIVILIZATION [14], Thomas H. Greco says:

The first major task is to launch a “buy-local” campaign in which the economic resources and business relationships within the region are clearly mapped. That database can then be used to assist businesses in finding local sources for the things they buy and local customers for the things they sell. The services of brokers can be employed to help match up supplies with wants and needs. Critical gaps are identified and local entrepreneurs can be encouraged to find ways to fill them, perhaps with support from a local microlending agency. As this process proceeds, the community becomes less dependent upon outside entities and more resilient and self-determining.

Community Currency Exchange

Using multiple currencies transaction costs may become high.

The transaction costs associated with multiple currencies would be low as virtually all transactions could be completed electronically with smart cards, or mobile phones and other internet-enabled devices. In addition, electronic commercial barter would become more prevalent, with companies with excess capacity or inventories trading with other firms in mutual exchange networks. Already there has been rapid growth of these type of non-interest bearing credit schemes in the United States and elsewhere with the growth of the internet and since the financial crisis.[11]

This is another argument for a system that is conceived as electronic money, in which exchange sites can facilitate the exchange transactions. However, while paper representation of electronic money is being used, the Insula has to make sure that enough currencies exchange posts are available at every physical Insula market. 


[1] The Foundation for P2P Alternatives http://p2pfoundation.net/
[2] Why we need a European approach to the Democracy Real mobilizations http://blog.p2pfoundation.net/why-we-need-a-european-approach-to-the-democracy-real-mobilizations/2011/06/09
[3] La ley impide a Ana Botella cubrir con voluntarios los puestos o tareas de los funcionarios http://www.20minutos.es/noticia/1289999/2/ley-voluntariado/ana-botella/funcionarios/
[4] Number of Greeks seeking charity free meals increased dramatically http://www.keeptalkinggreece.com/2011/04/22/number-of-greeks-seeking-charity-free-meals-increased-dramatically/
[5] Wikipedia Barter http://en.wikipedia.org/wiki/Barter
[6] Portal de economia solidaria http://www.economiasolidaria.org/
[7] RIPESS http://www.ripess.org
[8] Solidarity Economy, Carlos Askunze Elizaga http://www.economiasolidaria.org/files/ecosol_dic_ed.pdf 
[9] Socioeco http://www.socioeco.org/
[10] Econ4 http://econ4.org/
[11] THE GREAT TRANSITION http://www.neweconomics.org/publications
[12] International Reciprocal Trade Association http://www.irta.com/
[14] Beyond Money - THE END OF MONEY AND THE FUTURE OF CIVILIZATION, Thomas H. Greco http://beyondmoney.net/
[1] New Economy Barter Markets http://youtu.be/6cS7XpYo6AA
[2] Time Banks http://youtu.be/-3kJ5QB6Htk
[3] BCI Barter System Commercial – English http://youtu.be/QpXtlFyDPK8
[4] Tianguis Tlaloc 1/3 http://youtu.be/_D2fMVysFgk
[5] Tianguis Tlaloc 2/3 http://youtu.be/hyw1LoxjKm8
[6] Tianguis Tlaloc 3/3 http://youtu.be/En6yQ71Lcxk
[13] IRTA http://video.google.com/videoplay?docid=749044267549070133
 


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