Sunday, March 15, 2009

Real Bills of Personal Credit in Practice

This was quite the amazing find for me, as it precisely summarized a system that I had independently came up with myself. In fact, it adds a number of key elements that make it better than what I had envisioned. The one thing their paper had not envisioned, that I had, is the vital role of the real bills clearing house in maintaining a book of customer ratings. It is essentially like an e-bay rating, or Amazon rating, a compilation of the opinions of the many people you have done business with.

For dealing with times of monetary chaos, these little real bills of personal credit will be like gold. For a nation dealing with the basic problem that few people do anything economically productive, being all cubicle critters, the basic question for many of us will be: what can I do, what can I offer you? What exactly am I going to fill out on this slip of paper for my trading service?

Our new economy will be based much more heavily on personal services, much like the economies of old. Our standard of living going down means our wages will fall, which sounds real bad but has some nice upside. When wages fall, all kinds of economic services become feasible again that have been wiped out of the market in the last 30 years. Think of maids and housekeepers for example. 100 years ago, such services were quite common, but as the cost of labor skyrocketed, the service disappeared.

Thus, if you are a displaced cubicle worker, your service may be "Mending clothes", or "Cleaning house" and that may be a worthwhile economic trade. As a general rule, all the repair skills will roar back to life, as the cost of new and imported goods rises it will become sensible to keep repairing old things rather than always replacing them.

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