Friday, March 7, 2014

Audacious Idea Part 2

Audacious Idea #2:

      Dismantle the banking system.

 The entire financial system exists on the idea of banks providing capital for investment, and in return, charging interest rates for profit.  It seems reasonable that they would do so, but when you combine interest rates with controlled inflation, it's easy to recognize that no country can ever really escape the debt trap.  Canada racks up about 1000 dollars of debt every second in interest - money that is in no way representative of tangible products or even more intangible services or information.  Inflation by its very nature violates the laws of information - not dissimilar to those of thermodynamics - that information can never be created nor destroyed, only changed.

     My audacious idea is mass-crowdsourcing and the elimination of debt and inflation.  The concept of crowdsourcing is the principle of what a bank is supposed to do (collecting money from a bunch of people and lending it to those that need it) - but of course, that principle falls short when banks are allowed to collude with others in the industry, in the form of huge banking cartels (the Federal Reserve), and insurmountable piles of debt.

Under the mass-crowdfunding platform, there are no interest rates, but instead mass shareholding.  Let's say for example, in the city I'm from, London, Ontario - we wanted to build a state of the art vertical farm.  First you'd need a massive loan to pay for the land, the consultation and engineering contracts, the city inspectors, and so on.  It would cost millions.  But if everyone in the city gave 5 dollars, and we used the pool of academics from the local University for design and consult; it could be done without a massive loan, and pointless interest rates which give nothing back.

In exchange for the small contribution, access to the facility could be made.  People could get food proportionate to their contribution - and not only that - people should be able to work for this institution if they want - in exchange for food.

This is a simplified example of how mass crowdfunding not only provides the capital required for creating new ventures, but also fosters a sense of community lost in the digital duality we currently live in.

The financial hegemony begets old-boy hierarchies, and revolving doors - it's not hard to see that, with five generations of Goldman Sachs Secretaries of Treasury - or the insanely inefficient building inspection in my own city (a small renovation can cost an average homeowner thousands of dollars).

There's no doubt in my mind, in addition, that Academics will volunteer their expertise, or at the very least, we could host competitions with prize pools for design ($5000 dollars to the engineering graduate program for the design - where a single engineering firm might cost several factors more).

This has been audacious idea part 2

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