The invention of money and then capital led to an expansion of investment and the development of new technologies. Before computers and communications, non-local entities transferred ownership and value over time and distance by monetising assets and developing debt. Today, communications and computing provide alternatives to moving asset ownership over…

Productivity improvements are measured by producing the same goods and services for less money. Discounted Cash Flow analysis assumes that discounting future benefits is the same as getting less money. If we analyse two proposed projects, if one achieves the same result with more discounted benefits, then that is chosen…

Should drivers of electric vehicles be taxed more to use the roads? - ABC listen If we are not careful, the use of incentives to encourage people to purchase electric vehicles could backfire by…www.abc.net.au Wayleed and Scott discussed the issues of subsidising “good” behaviour with incentives at the expense of those who cannot afford the same behaviour. Scott was concerned about the backlash of resentment because those who can afford good behaviour look down on those who can’t. The less fortunate resent those who…

Shareholder banks are vulnerable to community banks as they keep all the profits from the loans and do not share them with their borrowers or lenders. Shareholder banks profit by creating loans to transfer houses and other long-lasting assets. Community Banks are different as their business is to provide a…

In Australia, Community Banks are owned by their staff, depositors and borrowers, not shareholders. The banks aim to provide their communities with permanent, lower-cost ongoing banking services. This contrasts with the objective of shareholder banks to provide profits to their shareholders. Community Banks are the natural partners for communities that…

The article A Permanent Housing Market illustrates the dramatic cost reduction of moving house when the cost of money is removed. Traditional economics and accounting assume we monetise assets to move ownership from builder to owner. For all infrastructure, this is unnecessary, and the cost savings are the cost of…

Today, most markets are Capital Markets that seek to maximise profits. Profits increase the seller's capital, and for the shareholders of companies selling goods and services, the product is money as Capital. Buyers look for the lowest-cost goods, and sellers seek to maximise money profits. The inevitable result is the…

The article Reciprocal Capital for Efficient Asset Markets shows how sharing the profits from Bank Loans results in lower-cost loans for borrowers of Community-owned banks. The model can extend to remove all interest costs and replace returns on interest by purchasing more shares in the assets purchased with the…

The EMH (Efficient Market Hypothesis) is the cornerstone of the finance system capital distribution. It says that free and open markets for assets will reflect all available information, and the prices the market arrives at will be the most efficient and produce the most value for the least cost to…