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. It gives the most value…Social Evolution4 min readSocial Evolution4 min read
18 hours 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
2 days agoBanking 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
2 days agoA 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. For all infrastructure, this is unnecessary, and the cost savings are the cost of…4 min read4 min read
3 days agoPermanent 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…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. 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…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
Nov 2The Productivity of Capital Formation and MovementTo address global heating, we have to change the way we produce energy, and that requires immense amounts of investment Capital. We obtain investment money from the Financial System, which harvests the surplus money as savings and profits and puts it to work to create more Capital. The Financial system…6 min read6 min read
Nov 1A Resilient, Economically Efficient EconomyEconomic efficiency is essentially about getting the same goods and services for less money. Today there is an oversupply of money, leading to inflated asset prices, inflation, gross disparities in wealth and high levels of unused money. Economies are fragile and inefficient. Individuals do not understand and hence cannot model…2 min read2 min read
