PinnedCommunity Capital and Social EvolutionSocial learning is to ideas what natural selection is to genes. Both are ways of picking out good solutions from a sea of variety. Mark Pagel — Wired for Culture. With culturally appropriate capital allocation rules, Community Capital is the most productive way to invest. …Social Evolution4 min readSocial Evolution4 min read
4 days agoAn Alternative to Discounted Cash FlowsProductivity 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…4 min read4 min read
4 days agoDiscussion of the Ethics of Taxing Electric Vehicles in “The Minefield Podcast”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…2 min read2 min read
6 days agoHow Community Banks Outcompete Shareholder BanksShareholder 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…Affordable Housing3 min readAffordable Housing3 min read
Dec 1Banking for the People: Community Banks and Their Role in Wealth DistributionIn 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…2 min read2 min read
Dec 1A Permanent Local Electricity Market (PLEC)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. …4 min read4 min read
Nov 30Permanent Markets versus Capital MarketsToday, 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…2 min read2 min read
Nov 15A New Era in Housing: How Permanent Markets Could Replace Traditional LoansThe 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 loan. …Permanent Capital Markets5 min readPermanent Capital Markets5 min read
Nov 13Reciprocal Capital for Efficient Asset MarketsThe EMH (Efficient Market Hypothesis) is the cornerstone of the finance system capital distribution. …Efficient Market Theory8 min readEfficient Market Theory8 min read
Nov 5Let us Stop Renting MoneyThe word “usury” comes from the Latin word “usura,” which means “payment for the use of money, interest,” literally “a usage, use, enjoyment,” from “usus,” from the stem of “uti” (to use) — Online entomology dictionary. Why does the government borrow money? When governments have insufficient tax revenue to fund their programs, they borrow money by…3 min read3 min read
