Witnessing the collapse of the current monetary system, I thought I would invent a new one, one which worked. It might take a few weeks to get it right, but we have to start somewhere. I believe in people coming together to work out their own ways of doing things, so please help in this endeavour, by passing on the idea to others and contributing where you wish to its development.
Currency name: Fuero – It is a kind of Charter (the word is a legal term in Spanish), it is close to Fuera, meaning outside, and it is close to the thoughts I had on starting it, it is a Facebook Euro!
Donation: I am donating 10,000 Fueros to each and every citizen of the world and every distinct organisation as exists this day 13th July 2011. For those citizens who do not have a Facebook account I hold the amount of 10,000 Fueros for when you want to join the system. So I am donating 10,000 Fueros to Facebook, to get them to join in. So I think I have now made the world richer by about 100,000,000,000,000 Fueros. That should be enough to start some trading, kick start the world economy again?
Spending Fueros: I need to develop the spending rules and process and taxation system (see below), so for today you cannot spend the 10,000 Fueros you have. But, when I/we develop the ability to account for the spending, so you can choose what you spend them on, you will be in complete control of your spending. You will be able to buy services from others, buy things from other people and so on. It will be just like any other currency but it will be global and probably illegal, but maybe not?
Taxation: Wherever we live we get some things for free, some more than others. That does not mean really for free it means people pay taxes for them. A lot of people are outside the taxation system for earnings as they are too poor, and they trade in a local currency which is also almost outside the taxation system, and any new monetary system needs to do no harm to that kind of trading, indeed it should be such that it benefits those most in need.
The taxation system for most currencies is a pretty blunt tool, even though it has masses of complexity built into it. Basically, you have taxes on spending, taxes on borrowing, taxes for local and taxes for national and regional and international budgets, depending on where you live. Things like the carbon tax are even global, of sorts. So the Fuero will have a taxation system but it will allow for personal choice, it will be designed to combine ideas of donating, political voting and duties of citizenship all in one simple package. I probably need some help with how to do this but I hope you get the idea. I am sure it is possible.
How it works: I am imagining a picture in which everyone owns one pixel, and the pixel is of a colour which represents how many Fuero you have banked. So Deep blue is absolute zero, and Firey Red is 10,000,000 Fueros, which is the most you are allowed to hold. That should be enough for all trading purposes I think, so if you earn and therefore hold more than that then it just gets banked, for the benefit of others. The reason for this is to do with the purpose of money, which is to encourage cooperative trading. That is the only purpose of money. If you are storing it you are not trading. There will be a real number underneath the colour picture, and you will control where it goes, mostly, subject to taxation, which you also have some control over, how much tax you pay and to whom.
Saving and borrowing: You can save as much as you want, up to the limit stated above. You can lend to people and organisations. But the rules are that no interest can ever be charged. Interest payments take money out of the system AND REDUCE cooperative trading, so they are not allowed. If you need to borrow money to start a business then you convince people to offer you money because what you are doing is good or because they then own something of your new business. On this point therefore, I tend to side with those religions which ban usury. Which used to include Christianity.
Facebook: I think Facebook could be the portal for all Fuero Transactions, but some people may object to that. Basically, I think they fund it for free forever, but I need to ask them if they can do that. They seem a pretty radical bunch of people so maybe they will. Basically, you would advertise products and services, or just things you legally own, on Facebook, and then when someone buys them off you they place their Fueros into your account by the agreed amount, plus taxes to be paid by them or you, that is also something you agree on, and then you give what you have agreed to give. It would work a bit like PayPal but with PayPal you are using old money and with Fueros you are using the money I have given you.
Agreements on tax: The system would work so you and your trading partner (purchaser or seller) would agree using some kind of visual slider how much tax you would agree to pay for what. There would probably be 3 or 4 sliders, but they would be easy to use. So you might agree to pay 10% tax for education and they want to pay 15%, you end up agreeing 13% maybe. Now you might be thinking, surely we would both agree to pay 0.0001%, but overall you would have to pay some fixed level of tax and above that it is a voluntary tax level. This is where it could get interesting. You could, for example, be saying you want them to pay a 5% carbon tax which might be voluntary, they disagree, and no deal is done. Some elements of this kind of thing already exist, when you buy an aeroplane ticket you are offered a carbon offset, it is up to you.
Questions: (These will become FAQs but as this is the first posting I only have questions I am asking and answering because I think you will ask them)
Q1. Where does this money come from?:
The funny thing is it does not exist, but for a long time the money we use has not existed, it is no longer some vault of Gold in some bank which you can withdraw, hence our current crisis. It is an agreement to trade, and as it has no interest payment system and it has a finite storage for any individual it will never be completely lost, so it is permanent. It’s value is in the agreement to trade. Nothing more.
Q2. Is it legal?
I have no idea! I am not sure anyone could say it is or it is not, because it is global. Whose laws would it need to conform to to be legal? Let’s see what happens!
Q3. What if I pass money over and nothing happens, I don’t get what I paid for?
I guess there has to be some kind of ‘accountability’ but it might be no more than exists for current Ebay or Wiki systems, you trade by reputation. Some penalties, because we all make mistakes, might be loss of a period of trading rights, so you get blocked off for a day, a week, a month a year, or for life?
Q4. Will this work?
Again, I have no idea, but I don’t see why not. It can be seen as some kind of self created Marshall Plan (as used for Europe).
Q5. How do Governments collect the taxes the system collects on their behalf?
Initially this is extra ‘money’ they can spend, so they could buy goods and services the same way anyone else can. After a while, the Fuero replaces the old money system, and the smart thing they could do is make sure they spend enough to avoid going over the limit of holding. It therefore prevents Governments sitting on resources that should be used for trading.
I have given them 10,000 Fueros to start them off. China too, and India, and the USA, well, every Government.
Q6. What about my pension, that is stored ‘money’ worth more than the limit you have suggested?
The Government has not stored your contributions, nor has the pension company, they have taken your money and used it, and you just hope they keep trading so you get some back. At least this will be an honest live taxation system.
I can’t think of any more questions for now. If you like this idea please tell Facebook. I need to get in touch with them. If you don’t see any more posts from me it is because I am locked up somewhere. Please contact Amnesty.