2. Financing â Clearing Union
ïœ Peer to Peer trade credit - banks as service providers not
lenders
ïœ Bank capital requirement is only for operating costs
ïœ Goods and services change hands by reference to $, not
necessarily in exchange for $ currency
ïœ Credit risk shared by sellers and buyers collectively
ïœ No 'interest' (money for the use of money)
ïœ Default costs and operating costs shared
4. Clearing Union - Seller accepts Buyer's IOU
Value
Seller Buyer
IOU
5. IOU is guaranteed by Clearing Union of Sellers &
Buyers collectively
Value
Seller Buyer
IOU
Guarantee Guarantee
Pool
6. Seller & Buyer pay guarantee charge into Pool held
by Custodian
Value
Seller Buyer
IOU
Fee Fee
Guarantee Pool Guarantee
7. 1/ Buyer settles credit in money or 'money's worth'
eg energy stock
Value
Seller Buyer
Fee Fee
Guarantee Pool Guarantee
8. 2/System identifies a 'chain' of IOUs
A<B<C<D<E<A and 'nets' them out
IOU
Seller A Buyer B
Fee Fee
IOU IOU
Pool
Guarantee Guarantee
Buyer E
Buyer C
Buyer D
IOU IOU
9. 3/ Buyer defaults: system pays sellers and collects
from buyer if possible
Seller A Buyer
Default
Collects
Pays Default
Pool
Seller B
Pays
10. Service provider sets guarantee limits, handles
defaults & manages system
Value
Seller Buyer
IOU
Fee Fee
Guarantee Pool Guarantee
Service Fee
Service
Provider
11. Financing â Capital Partnership
ïœ Investment to a common purpose in people businesses
ïœ Production and/or revenue sharing between investor and user
of investment for as long as the investment is used
ïœ No 'interest' (money for the use of money)
ïœ Sharing of risk and reward â no default
12. Capital Partnership
Users
Payment Use
Custodian
Custodian
% %
Investors Managers
22. Art of Flirting Partnership
Viewers
Viewers
ÂŁ
Custodian
Custodian
% %
Financial Capital
Financial Capital Human Capital
(Investors)
(Investors) (Actors, Producer, Me)
31/05/10 22
24. They do not own anything, do anything,
employ anyone, or contract with anyone...
03/04/10 24
25. Associative agreements require no legislation
Users
Users
Payment
Custodians
Custodians
(National)
(National)
% %
Financial Capital
Financial Capital Human Capital
(Money, IP etc)
(Money, IP etc) (Developers, Operators)
03/04/10 25