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Mutualist Blog: Free Market Anti-Capitalism

To dissolve, submerge, and cause to disappear the political or governmental system in the economic system by reducing, simplifying, decentralizing and suppressing, one after another, all the wheels of this great machine, which is called the Government or the State. --Proudhon, General Idea of the Revolution

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Location: Northwest Arkansas, United States

Thursday, August 04, 2005

Interesting Links on Alternative Money and Banking Systems

Check out Steven Carson's Monetary Evolution site (he's no relation, as far as I know). It's great. He also passed on a link to this article by Robin Good about Ripple, a sort of electronic P2P LETS network. That article, in turn, included a link to another great article by Sepp Hasslberger: "Social Credit: Make Your Own Bank"

Larry Gambone has a related post on the banking fraud at Porkupine Blog. Here's the money quote (no pun intended):

More than 150 years ago, Proudhon realized that workers and farmers had their own in-built collateral. For workers, it was the amount of labor over a given time period, for farmers, the crop or harvest. Hence, there was no need to have collateral in gold, bills or property, nor was there any reason, other than government preventing it from occurring, for farmers and workers to create money and loan it out to each other thru a mutual banking system. For the longest time banks ignored the workers and poor farmers, but with the rise of consumer society came a realization that a bundle could be made loaning money to these here-to-fore ignored customers. Our collateral is our labor, but the banks reap the benefit.

UPDATE: Atreyu, in the comments thread, provides a link to a site for Ripple.


Blogger 'Thought & Humor' said...

We work like a horse.
We eat like a pig.
We like to play chicken.
You can get someone's goat.
We can be as slippery as a snake.
We get dog tired.
We can be as quiet as a mouse.
We can be as quick as a cat.
Some of us are as strong as an ox.
People try to buffalo others.
Some are as ugly as a toad.
We can be as gentle as a lamb.
Sometimes we are as happy as a lark.
Some of us drink like a fish.
We can be as proud as a peacock.
A few of us are as hairy as a gorilla.
You can get a frog in your throat.
We can be a lone wolf.
But I'm having a whale of a time!

You have a riveting web log
and undoubtedly must have
atypical & quiescent potential
for your intended readership.
May I suggest that you do
everything in your power to
honor your encyclopedic/omniscient
Designer/Architect as well
as your revering audience.

Please remember to never
restrict anyone's opportunities
for ascertaining uninterrupted
existence for their quintessence.

There is a time for everything,
a season for every activity
under heaven. A time to be
born and a time to die. A
time to plant and a time to
harvest. A time to kill and
a time to heal. A time to
tear down and a time to
rebuild. A time to cry and
a time to laugh. A time to
grieve and a time to dance.
A time to scatter stones
and a time to gather stones.
A time to embrace and a
time to turn away. A time to
search and a time to lose. A
time to keep and a time to
throw away. A time to tear
and a time to mend. A time
to be quiet and a time to
speak up. A time to love
and a time to hate. A time
for war and a time for peace.

Best wishes for continued ascendancy,

P.S. One thing of which I am sure is
that the common culture of my youth
is gone for good. It was hollowed out
by the rise of ethnic "identity politics,"
then splintered beyond hope of repair
by the emergence of the web-based
technologies that so maximized and
facilitated cultural choice as to make
the broad-based offerings of the old
mass media look bland and unchallenging
by comparison."

'Thought & Humor' by Howdy
CyberHumor, CyberThought
CyberRiddles for your divertissement!!!

August 04, 2005 7:49 PM  
Blogger Metlin said...

Hey, there - interesting blog.

While I do not particularly agree with the theme nor the sentiments expressed in this blog, I must say that you bring up some interesting points and issues.

Been lurking here for a while, so I just figured I'd drop in and say a hello!


August 04, 2005 10:48 PM  
Blogger funkysmell said...



August 04, 2005 11:01 PM  
Blogger Kevin Carson said...

Thanks to all three of you for the kind remarks. I don't know about the "revering audience" and "ascendancy" though, Howdy. Might be nice to live in an alternate universe where that was true.

August 05, 2005 11:34 AM  
Blogger Larry Gambone said...

Thanks Kevin. I notice that the critique of the banking system is being picked up by a larger audience now than before. There have been articles in both Vive le Canada and The Tyee. Ten years ago a critique of banking would have been limited to the fringe. This is a good sign.

August 05, 2005 9:33 PM  
Blogger Atreyu42 said...

I just want to add that Ripple is an open-source software project hosted in SourceForge. There's a lot of information in its site.

August 06, 2005 3:58 AM  
Anonymous Wild Pegasus said...

More than 150 years ago, Proudhon realized that workers and farmers had their own in-built collateral. For workers, it was the amount of labor over a given time period, for farmers, the crop or harvest. Hence, there was no need to have collateral in gold, bills or property...

Collateral is something the loanholder knows you have and can take as needed. Property is collateral because the loaner can seize it if there's a default. Labour is poor collateral because of the uncertainty factor. Ditto future crops.

As a further comment, there's something definitely unsavoury about labour as collateral. Say that a carpenter takes out a loan against a bank and puts up 1000 hours of his labour as collateral. The carpenter defaults. The bank now has a claim on 1000 hours of labour from the carpenter. At what, if any, price? Can the bank take so much labour as to damage the carpenter's ability to make enough to support himself or his family? What kind of labour can the bank direct him to do? Could they sell the labour collateral to someone else, say, to a corporation specialising in cleaning toxic waste?

- Josh

August 07, 2005 9:22 PM  
Blogger Kevin Carson said...


I'd envision it as a contractual repayment mechanism, with payments set at a percentage of current income over a long time-frame. I'm sure it would be possible to stiff the system, just as it was possible to skip out on your "obs" in Russell's "And Then There Were None"; but the pariah status to the would-be parasite would also likely be similar, serving as an object lesson on the virtues of being a good member of cooperative society.

August 08, 2005 9:50 AM  
Anonymous Wild Pegasus said...


You don't even need to worry about welchers to worry about the future as collateral. The future is fundamentally uncertain: crop failures, disease, accidents, bad weather, etc. Collateral is useful because it is certain. The future is not good collateral because it is not.

- Josh

August 08, 2005 11:45 AM  
Blogger Kevin Carson said...

That's true. But such risk can be minimized by spreading it out over time. Again, that's why I like the idea of relatively low repayment schedule, set as a percentage of income, over a long period. And the risk is also spread out over the membership of the LETS system/banking co-op (possibly most of the community), so there is little risk to any individual accepting the mutual banknote.

Time preference also enters into it. But the time preference of an organized banking cooperative, in a prosperous society of self-employed and worker co-ops, with a stable local economy, is not likely to be very steep. And the minimal risk to any member, compared with the advantages of start-up capital and easy repayment terms, is a pretty good tradeoff.

August 09, 2005 8:52 AM  
Anonymous Wild Pegasus said...

If time preference is long, and risk is minimal, reward is also likely to be minimal: too little to even bother with setting up the bank in the first place. You may as well bury banknotes in jars in the backyard.

- Josh

August 09, 2005 11:00 AM  
Blogger Kevin Carson said...


The bank is not set up to make profit for a set of stockholders. It is intended to facilitate credit for its membership.

August 10, 2005 10:18 AM  
Anonymous kredieten said...

Hi Blogger! Ik ben op zoek naar kredieten Zou Afab echt zo goed zijn als iedereen beweert? Of kan ik beter zoiets als Geldshop proberen?

Groetjes Albert

January 24, 2006 7:51 PM  

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