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Developing New Local Currencies (Cryptocurrency, DeFi)

The Basic Living Standard and Basic Living Standard Wage creates the basic principle or governance requirement for how a complete Local Market Exchange, True Economy and System of Governance will work.

Everything quite literally anchors to or hinges upon The Basic Living Standard, which is a universal benchmark, which in terms of the Basic Living Standard Wage, provides the basic exchange rate between all local or decentralized currencies, or any umbrella, centralised or connective currency that then can link them all.

A currency that works on a fair and balanced basis must correspond to its own system of governance.

The fairest, most balanced and most democratic form of governance is where power it attributed and responds in its most local form.

As such – despite the commonalities between different currencies, the power to govern local currencies must remain local – not for the purchase of essentials – but so that non-essential goods, can always be exchanged at rates which correspond to the idiosyncrasies of production in their very localised form.

Beyond the practicalities of the requirements of the Local Market Exchange system, it is also ethically correct to keep the balance of power that accompanies use of digital currencies and finance in their most dispersed, local and transparent form, so that they cannot be used as a leverage tool within an oversized governance system that relies upon coercive control.

Local Decentralised Finance (DeFi) in the form of Local Cryptocurrencies that are linked only by the Basic Living Standard, assure our personal freedom from tyranny in any kind of form, in the most basic sense.

That process or supply chain must always be as simple as its possible for it to be. It is through the accumulation of additional stops or steps in a supply chain that don’t add value, but add additional and unnecessary costs, where so many problems begin.

The roles that we have will be redefined and reconsidered as the evolution of our new system takes hold. In fact, some of the jobs that have been highly regarded for all the wrong reasons during this dark age that is now ending, will simply no longer be ‘needed’ and will no longer have any reason to exist.

Levelling Level | Digital Currency, Crypto, DeFi

Digital or crypto currencies will not survive in their current form.

Like the system that cryptocurrencies were created with the best intentions to try and override, it is simply the belief that people have, or the way that people think about cryptocurrencies today that appear to make them work.

The cryptocurrencies that you can buy or trade today may be worth a lot of money. But like the money they might replace, they have absolutely no value at all.

In reality, digital currencies that exist today are as flawed as the FIAT money system itself. They are based on no real value or tangible holding.

It is literally the belief of those who invest in or use the existing blockchain currencies that make them work.

The moment anything happens to shatter the belief in today’s versions of digital currency – as you can be certain that it will – these cryptocurrencies will return to their intrinsic value. That value is zero or nil.

The new ‘local’ way of living will allow the creation of new digital currencies based on real value that is defined by the community that runs it.

That value will be pinned or anchored to the value of input and output (labour, skills, experience) and the true value of the locally produced goods that people genuinely need to live.

We cannot and must not even try to return to a pyramid or hierarchical system that is skewed to allow prices at the foundation of our society to be dictated by actions at the top.

We could very easily and very quickly come to experience a fully functioning system of digital currencies that are locally linked. Currencies that become interchangeable and exchangeable with others, because of how the basic value of input and essential goods are defined.

Levelling Level | Local Currencies & Bartering or Exchange Platforms

When no amount of cash or currency we have available can secure the goods or services that we need, practical need will step in and demand that we exchange whatever we have or can offer to secure whatever we need.

Ultimately, as real creativity, innovation and entrepreneurism begin to thrive at the community level, one thing will again become apparent to us all:

The real base currency is the element that is common to every exchange: The time it has taken somebody to grow, produce, manufacture and transport whatever it is that the end user wants.

In other words, the real base currency is (or will be corrected to become) the value of input that an individual can make themselves, as the basis of an exchange to provide everything that they need to meet the requirement of being self-sufficient.

Levelling Level | The Community Bank and Local Banking

Whilst we have a ‘Bank of England’, its role as a so-called central bank is a long way from where it could or should be.

The fact that banking in the UK is completely in private hands means that there are no public-centric influences at work across the range of financial services that are essential to life. There are no rules, guidelines or working examples that provide a benchmark in terms of either ethics or fairness and demonstrates to commercial finance houses and banks how financial ‘products’ should actually be.

It is essential that a new ‘Community Banking System’ is created that reflects the genuine and service-based needs of personal banking and small business banking needs – with the need for real start-up and development lending for what is the engine room of UK industry too.

In recent years, the digitisation of money and financial transactions and the reducing reliance on cash, coupled with the obsession with profits rather than customer service, has seen many retail bank premises close.

This process – yet another example of the top-down, profit-before-people approach, must be reversed. It must be replaced with a system that clearly focuses on genuine support for the customer and their financial needs first (service first, profit is the happy consequence)

The UK (government) already owns significant shareholdings in banks that were bailed out (wrongly) around the time of the Great Financial Crisis of 2008. The remaining shareholding of one of these could easily be bought up by the government on our behalf, and then re-tasked for the purpose of being the Community Bank.

Alternatively, a new Community Bank could be established and started from scratch.

Either way, having a public bank that provides all of the services that the current private banks do not, will quickly help the mentality within ‘retail’ banking to change, and probably answers the question of why one doesn’t already exist right now.

The future is bright for digital finance, but today’s Crypto Currencies are as worthless as the FIAT money system they intend to replace. Money must find its place and function without misplaced belief:

January 19, 2022 1 comment

Whilst my interests, writing and commentary in the public sphere appear overtly political, I recognised long ago that every part of life feeds into the cauldron of politics. It’s what the more academic amongst us would colloquially call political economy.

Within a highly febrile environment that increasingly makes less and less logical sense, it makes sense to keep an eye on financial and economic commentary online amongst the channels where real news is still available. It is here that the utterly bizarre nature and the cold-hard reality underpinning trends which are affecting the UK and the whole world, seem to have completely escaped public consciousness and any form of collective rational concern.

We are experiencing a period of history where there are so many elephants in the room, it seems incredible that society hasn’t already been completely flattened by the now trampling herd.

That isn’t to say that a travesty of great magnitude isn’t on its way.

Amongst the dangers that 50 years of FIAT Money, its impact upon financial dealing, the markets, normal life and the Bitcoin-driven rise in cryptocurrencies that were supposedly created to counter it is where much of the coming chaos is likely to begin.

Money isn’t real. Money isn’t a thing. But the belief that we have been conditioned to have in it and the obsession we have with material wealth and the way our lives and status can now be measured by it all to facilitate profiteering and greed certainly perpetrates the myth that it really is.

Money is valueless. It began as a unit or practical means of exchange and up until 1971 when money was de-linked with the value of gold, it at least had a form of tangible value attached to it. Even if that tangible value was based on collective mutual trust to the existence of a precious metal in remote form that we all knew as The Gold Standard.

Creating a situation where that assumed trust in there being real value underpinning the transactional notes and coins in circulation was manipulated to allow people believe that every penny that they have in their pocket or bank accounts has a measurable value. However, in practice it has now been over half a century since it was any such thing.

A FIAT or ‘created’ Money system was always going to be open to abuse, once those ‘on the inside’ had figured out how to get any rules and regulations. Over five decades they have consistently influenced legislator change so that they could effectively create more money and malevolently creative systems to generate more of it whenever they liked. The Great Financial Crisis (GFC) of 2008 was just a taste of what is to come and was only perceived as not being worse than it was because Governments created money for the banks and therefore massive public debts for us that there has been a mysterious mainstream lack of will to talk about.

As this perverse system has increased a cultural belief that money is a real thing, with the perception that it is inherently more important than the product, service, employment or output that generated it, a process of addictive gambling has increasingly taken place. Finance houses, markets and central governments too have effectively created more and more money without that money itself having any practical (or logical) link to gold, products, services, employment or anything else. It has created a growing disparity between what people who have bought into the idea believe to be real and what actually exists. In terms of value, people literally don’t know or understand what is real anymore.

It is a system where the rich get richer and the poor get poorer simply because the rich get more and more of the money as it increases in circulation, whilst the money that the poor have loses value against the goods, services and property that have explosively inflated prices that continually remain easily affordable to the rich.

Whilst it doesn’t fit the narrative of the establishment, big business or the financial sector for everyone to understand that money is created as they see fit and that debt is effectively just a means to enslave the unknowing poor, those responsible have used the publics unwitting trust of historically revered occupations to engage in what beyond the safety of the rules they have created for themselves would be recognisable as criminal acts

No one openly talks about any of this, and the mainstream media leave the subject well and truly alone. The truth of what they have and what they are doing sits conveniently hidden in plain sight and anyone who questions it likely to be cast aside and awarded a tin foil hat as they are unceremoniously thrown back into the masses of the great unknowing.

Yet there are increasing numbers of very intelligent, often highly educated but nonetheless ethical people who are becoming aware of the mechanics of how the travesty of what we call money actually now works.

Indeed, it was one such person who saw the value in creating a finite or limited amount of a currency that sits outside of the influence of arguably corrupt central governments, big business and the financial sector. It was this whole sorry story that brought Crypto or Digital currencies into being primarily as Bitcoin and now in different guises that are growing in number daily.

On the face of it, the blockchain technology that underpins crypto effectively means that even the smallest fraction or percentage of one crypto coin or equivalent unit has or can have a unique identification. It appears to give tangibility or reality to cryptocurrencies that money in the FIAT system doesn’t currently have.

Such coding means that if all money were to be in circulation in that same digital form and no other, every coin or part of it could be traced, located and tracked at any moment in time. It is for this reason that our increasingly technocratic and tyrannical governments and the greedy big businesses that influence them are desperate to digitise central currencies and push all of the privately generated versions as we know them aside.

The flaw in the thinking, whether it be a private, untied crypto or a digital central currency run by the government instead, is that blockchain technology gives genuine value to this ‘money’ right down to the most microscopic level.

The reality is that blockchain, like money is neither real nor a thing. No matter how clever, these blockchain derived digital currencies are no more than a reference tool, a label, a system of measurement and like money intrinsically before it, it is no more than a unit of exchange

Tragically the value of both money and crypto today is still based on the same giant myth or a massively overvalued shared belief.

At some point – perhaps within the 12 months from the time of writing, a financial collapse will take place affecting everything that FIAT money has touched or relates to. Money, nor any other form of currency based on nothing other than thin air will continue to exist and the correction that follows as everything in life returns to its unmanipulated value will be a process most painful for those who have made their life revolve around money and material wealth, when they could and should have exercised more considerate concerns.

It sounds very doomsdayish I know. But many of those who lurk daily within the finance and economic bubbles and play or rather bet on the markets know that those with power and influence have now created far too much money – relative to all the goods and output that genuinely exists. Indeed, the patterns and behaviours associated with everything to do with money, how it is made and how it is managed are following little in terms of any kind of logic. They more savvy amongst them know that the figures and data that is available foretells a cataclysmic change.

In terms of corrections, the pendulum is about to swing wildly the other way from where it has been held for a very long time.

The real value of goods, property and output will be realised as it becomes set against the wild speculation and explosive inflation that printing money has allowed.

We are likely to find that money or new forms of digital currency will go right back to their basic function. One that allows what is in effect multiple-transaction bartering of all the things that are necessary for life such as labour, basic food and the things that we genuinely need to live, so that money becomes purely functionary again, rather than being revered as some perverse value store.

It will serve no legitimate purpose for only one form of currency to exist. All forms of currency will become very localised with perhaps umbrella versions that do link to government to allow the payment of taxes and facilitate travel and the movement of goods between different areas.

The reason this doesn’t make sense today is because it is in the interest of those with influence for it not to do so. Yet tomorrow might be the beginning of a new day for us all when it most certainly will.

It is events now that will decide.

Bitcoin Crash: Currencies are nothing more than a medium of exchange and crashes are inevitable for as long as they are valued as anything else

Money and how it is used to calculate the value of wealth and even the worth of the people we interact with makes it one of the most destructive and dangerous components of contemporary life.

Without realising they are doing it many people look upon every facet of life and consider it in terms of its financial value, what it might cost, or what it would cost to have it themselves.

Very few od us follow the financial markets or observe the way that the economic system works – whether that be the ‘financial economy’ or the ‘real economy’ itself. But what may be one of the great mysteries of the world is the process that has led money and the possession of it to become the most important factor governing the way that we conduct our lives.

Just as many great ideas have the power to help and improve lives, the creation of money as a unit or medium of exchange passed its point of best use and was evolved or developed to become something that it should never have or was never intended to be.

Money was quite literally a practical way of making the exchange of goods or services work effectively when those engaged in that exchange didn’t necessarily want either the goods or the products or the services that the person they were exchanging with could immediately offer them in exchange for their own.

Money was literally a way of giving a universal value to anything that any person could provide so that they could exchange it for what they wanted from anyone else, and also became a way to transfer value or to exchange over great geographical distances.

Had the development of money stopped there or somewhere very similar, the World would now be and would behave very differently from the way that it does today. 

Money itself has never changed. But the way that money is perceived by people has.

Money is now treated as and believed by people to be a thing in its own right.

Yet nothing has changed. Money is still nothing other than the medium of a system to provide universal exchange for services and goods.

Yes, there will be plenty who read this blog who possess lots of money or the means to accumulate it who will read this and quickly conclude that what I’m saying is absolute rubbish.

Money is not real. But the belief that it is make the consequences and the impact of that belief real for all.

Decades of money creation and the use of economic theories and practises such as the FIAT system and the neoliberal push for ‘free markets’ that never look after the interests of others as they theoretically should, have led to the creation and development of the financial economy.

The financial economy is a theoretical system that has been made real by the belief placed in it. Because of the benefits that can be gained by those who ‘play’ it and propagate it, the financial economy has been prioritised and championed above the real economy. Whereas the real economy represents the real world of business and the exchange of labour and goods. The real economy is the basis upon which everything money or financially orientated should work.

Whilst an economist could easily draw up and describe the models of how the monetary, economic or financial system works so that it looks like and can be presented as being very real, money is literally being created out of thin air.

The anger with a self-serving system of this kind that is directly responsible for much of the inequality that exists around the World is palpable amongst all of those who understand and care about what is going on.

The anger against the system has led very intelligent people who are disenfranchised from the system, to search for, develop and launch what they present to us as alternative monetary systems that work fairly because the work in a different way,

Cryptocurrencies – of which bitcoin is probably the best known – are the result of this process.

The intrinsic problem that all cryptocurrencies currently have is that in the process of their creation, they have adopted the most fundamental flaw that all units of currency are currently built on: They are valued as something or a thing to be possessed that itself has value, when cryptocurrencies or currencies of any kind never have been and never will have genuine value of their own.

Yes, you can become financially rich by buying and then selling Bitcoin or any cryptocurrency that has been listed on an exchange. But the process that leads to gains or losses in cryptocurrency value are little more than luck. Buying and selling cryptocurrencies is not a science and any gains you make through a crypto transaction simply means it was just your time to experience a win. Much like spread betting or investing through hedge funds, investing in cryptocurrency is at best nothing more than making a bet. This is no way to run or influence a system that will affect everyone in the World.

The value of Bitcoin and all forms of currency is the belief that underpins them. Their value is directly related to the confidence that investors have to buy them. Nothing more. So, the moment that something shakes that belief, like Elon Musk floating a comment on social media about how Bitcoin mining isn’t very green – the value of this ‘currency’ begins a downward journey towards the floor. It is only then that you can really begin to recognise the true value of what currencies are worth in themselves. Currencies are worth nothing and no more.

Strange as it may sound, this blog is not an argument against the use of cryptocurrencies. There is no question that money and currency use and the legal and ethical value set that underpins their use must be improved as we head deeper into the 21st century and increasingly use the technology that we have available.

A problem for us all is that the entire monetary system is itself flawed but is being deliberately manipulated by people who understand the system well and continue to engage in dangerous practises without any consideration for the consequences and impact upon others. We need comprehensive change.

Because it is legal or the law allows those employed in financial services and in the banking sector to engage in the practices they have been for many years if not decades before, it does not necessarily make what they do morally or ethically right.

For anyone who has spent time studying law or the way that government works, they will soon realise and understand that the law has a habit of being very late to the party. On its route to get there it is often distracted by self interest or the interest of those with influence.

This manipulation of the deck is something that we can no longer afford if we are to all live in a world which is fair and driven to ensure that the poorest members of society can sustain themselves and that a basic self-sufficient life is something that everyone can easily and comfortably afford.

The UK must have the ability to Regulate the Internet, control and respond to data management issues in ways that we never will with the rules-for-the-sake-of-rules EU involved

December 2, 2018 Leave a comment

How we govern the Net, it’s use, the transfer, storage and sharing of data is a Policy area that like many others our Government should be on top of and ahead of the game.

That it isn’t and that many of our politicians simply have no understanding of what is happening around us in the parallel world of data is not, however, a sign that we need the EU Bureaucracy to take over and install a set of draconian and out of touch rules that demonstrates Brussels has even less understanding of the changing world than Westminster does.

Scare stories some might think.

But the reality of what the EU is attempting to do is very real and the iceberg which is coming is very much deeper beneath the surface than the relatively tame tip we now know to be GDPR.

Right now, we could be well on the way to being legally unable to share material such as newslinks from the Internet, or even take pictures of or in public places because of what the EU is now attempting to deem as being assumed copyright for things like buildings.

Idealistic, dangerously impractical and without any real regard for how life works within the world of the Internet and in its relationship with everything else, unelected bureaucrats lurking in an office somewhere in Brussels are about to take nanny-stating and big brotherish concepts to a whole new level.

If we either Remain or worse still, embrace May’s deal, we will have no choice but to accept these undemocratic and choking restrictions however far reaching and personally restricting they might be.

In governmental terms, the arrival of Internet based technology and the online universe has caught legislators napping.

To many, a fallacious idea now exists where the Net has broken down geographical boundaries and barriers and heralds a new age where concepts such as cryptocurrencies and blockchain will make localised governance systems redundant and that markets will now reach across the world and take care of everything that crops up in between.

They won’t.

The reason they won’t, is that no matter what we do online, be it personally or for our business or employer, the dehumanisation of relationships which the rise of the internet has already inflicted upon us has shown that real life requires a level of tangibility and physical stimulation that technology will never offer us, even through virtual reality.

Centralising and ceding power to the EU over data and the rules which govern our Internet access and use would be a catastrophic abuse and denial of the real opportunity to take control and influence the response necessary to the powerful technological and informational changes taking place around us. And to do so for the better.

Our businesses, our people and the physical environment across the UK are very different to the 27 other Countries that make up the EU.

We must have regulation which is sensitive, tailored and responsive to UK needs. Regulation must not be set on a one-size-fits-all basis which at best will be modelled on a false commonality between 28 very different Countries and more likely will be much worse, offering no basis of practicality at all or any sense in which we could identify consideration of any specific UK need – either domestically, or for our interactions with the whole of the outside World.

This will not be possible if the UK’s choice to Leave the EU is ignored. Or through the dishonesty and lack of responsibility to the Electorate on the part of Politicians, the UK is coerced into a much closer and technically irreversible union with the EU as will be the outcome of May’s deal being adopted, or an alternative series of false choices are created which mislead us to Remain.

We will only have the flexibility, the adaptability and the necessary cultural intuitively to give the UK the right Data Policies that we need, if we Leave the EU, take complete control of our own Policy making once again, and then push our self-orientated Political classes to get on and deliver the key Policy areas like Data which will return the UK to the place where we can meet opportunity or crisis from wherever it may come, head on.

 

image thanks to entrepreneur.com

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