Written by Administrator   
Friday, 01 May 2009 14:16
(The following challenge scenario is offered to students and adults around our planet willing to take the time to develop an alternative money system that they believe will help create a better existence for all people, and our environment.  This scenario is intended to inspire reactions, investigation and creativity to bring together new ideas and scenarios to start a process of consensus building.) 

  There are many that would say that money is the root of all evil.  Others might say that money is a necessary evil.  If you had a choice between having or not having money most would elect to have a lot of money.  Money is often the cause of family breakups and business interruptions.  Money moves products and services between supply and demand.  More and more money seems to accumulate in the pockets of fewer and fewer individuals these days but no one seems to have a plan to provide any more equitable means of monetary distribution.

   Here in 2009 we find our planet in an economic crisis that almost everyone has no idea how it happened or why.  Millions of people are loosing their jobs, cars and homes around the globe.  Companies are closing; banks are closing, as money seems to be almost stopped from moving around.  A G-20 economic summit in London proposes new monetary restrictions on one hand and a trillion dollars to international development on the other.  While crowds of protesters demand the end to money some countries are calling for the creation of a new international money system.

   Has capitalism reached its end game?  Will free trade bring us all together or just make the wealthy few richer?  Is money really the same as credit?  In today’s realities are there any real differences between socialism and capitalism?   Are we just to see history repeat itself economically with a future of ups and downs?  Or is it possible that we might be able to move to a new economics, a new money system, and a new way to bring a better balance to world economics?

   Hardly will everyone agree to any set of assumptions brought forward but it makes no sense to try to design and create an international transit system and new cities for possibly five billion people or more on this planet and then fall into the same set of economic ups and downs that have brought almost every nation to economic collapse today.  To a better long-term option the following assumptions and recommendations are brought forward for discussion.

  1. Individuals, families, cities, nations and the world cannot exist without money, at least some system of money.
  2. People often argue that guns are not lethal it is always the shooter that is lethal but the same may be true of money.  It is not money that is evil but how money is used that has created the economic problems of today.
  3. It seems pretty obvious that globally we really do not have radical differences in monetary systems today such as capitalism, communism or socialism but rather degrees of differences in how various countries manage their monetary systems and the overriding influence of global financial transactions.  We have global corporations and we have global trade.
  4. The world financial mess is complicated but at its heart are the over expansion and misuse of credit systems, and the shift to artificial paper monetary values rather than money being equal to some tangible asset value.
  5. Intangible money, paper money or ghost money in the form of derivatives, stock prices, selling short, hedge funds, insurance bonds, futures trading, and a host of paper financial terms that few can understand or even explain have developed over the last fifty years creating a false reality for real money.   Most of these practices are closer to pure gambling than to real money.  The rise of Internet company stocks to unprecedented levels before some of these companies ever sold a product or showed a real profit in the late 1990’s is very indicative of paper money.  We saw the creation of paper millionaires and billionaires on no real assets.   The same is true for real estate prices going up 15 to 20 percent per year when the actual cost of new construction was not the same increase.  Speculative profits not tied to real assets are what have caused the financial bubbles to burst in housing, stocks, and other financial instruments.  The insuring of paper assets that could not hold up may have caused giants like AIG and Morgan Stanley to collapse, not because these companies were not making a profit on other business in their company but because as their insured paper was reclassified down they were required by bonding companies to inject more funds to cover the spreading risk.  You could say that the paper they held burned up in front of them.
  6. Governments do not really want to talk about this issue but most central banks are really owned by private banks and there fore have a natural conflict of interest in supporting governments using paper money the central banks create to cover over budgeted government debt, and then having these central banks make a profit from their issuing more and more paper money.  We see the same financial conflict of interest when doctors and hospitals own medical insurance companies.  Suddenly we see the price of health care go up and up.  All governments need to stay within budget and not spend more then they bring in as revenue.   The total national debt of many countries may have now reached levels that can never be paid off.  The value of these national currencies will deflate at some point and costs may inflate dramatically to consumers and businesses.  Pouring billions and trillions on bad debts may be like pouring gasoline on the fires of inflation for many countries.
  7. There are many in governments, financial institutions and the media that would like the public to believe that this present financial crisis was a complete surprise that no one saw it coming and therefore the events that have occurred and will occur are not really the fault of anyone.  This financial mess just happened on its own.  Or another explanation is that the financial crisis has come about because of greed in the system, that companies and individuals sought profits beyond any social responsibilities.  On different levels the financial crisis certainly has caught many by surprise and no doubt that old fashion greed has its place in this mess, but it is far more realistic to acknowledge that what has happened was easily predictable and that many insiders knew it would come someday.  What goes up must come down in present day economics.
  8. The more troubling side to the financial crisis of today is that it may have been engineered, designed to create profits and financial control for some at the loss of others.  It is hard to wrap ones head around the idea that some individuals and groups have enough influence to mastermind economic collapses for their benefit.  The media sometimes calls this “Extreme Profit Taking”; but it has been occurring around the world.  On the surface it may appear that this financial crisis is out of control but behind the scenes we wait to see who will really wins and who will lose from these events.  There will be giant winners.
  9. Another base element of today’s mentality of what is happening is that the idea that capitalism must go up and then must come down is a natural occurring phenomenon.  This is how capitalism works.  The strong survive.  The weak are bought out or disappear.  Some argue that the best option is to allow weak companies to be bought or disappear.  They will argue that trying to save these companies is a waste of time.  The natural selection of healthy companies is all that really matters for the long-term survival of capitalism. Mergers and buyouts are part of the natural progression.  The consolidation of capital and assets into fewer and fewer pockets is the end result of economic ups and downs.  The almighty dollar is prized higher then the merit of social responsibility.  So what if millions go hungry from being laid off.  So what if millions lose their homes and cars and sanity.
  10. We do not agree with these economic assumptions.  The fact that present day economics of capitalism are based on zero sum mandates we believe are the real underlying causes of the financial crisis we are seeing today.  The philosophy that some must win and others must lose so that at the end of each day fewer and fewer wealthy have gained more and more from losers, to come to some zero balance each day is the central problem to present day economics.   In the end the wealthy may lose everything to the revolt of growing masses of poor.  This cycle of arrogance and stupidity can be changed to a philosophy of nonzero approaches to economics and governance.
  11. If the only natural conclusion to capitalism is the up and down of economic expansion and restriction then capitalism is probably doomed.  Since we are living in the middle of these economic times it is easy to see how capitalism has created wealth and growth for individuals, companies and countries.   Capitalism is valued in good times but if capitalism can not find some level of balance between the winners and losers, and there are always increasing numbers of losers, is this the Achilles heal of capitalism and its eventual end?
  12. How long will the hungry wait to revolt against the wealthy in this approach to money?  Is this the real strategy behind the G-20 agreeing to give a trillion dollars to developing countries?  Is this the real reason one in ten Americans are now getting food stamps?   Give bread to the masses but keep them dumb?
  13. Why can’t we move to an economic system of nonzero sum where everyone has the opportunity to gain or win together?  If we desire to design and develop an international mass transit system that can connect all major cities and capitals around our globe as well as design and build over 20,000 new comprehensively designed environmentally balanced communities where over five billion people might live within fifty years why would we NOT move to a more balanced economic approach of nonzero sum economics?  Below are the characteristics we see for a new approach to international economics, starting with the individual level and moving upward:
    1. It is not fair that companies pay their employees only once or twice a month.  This allows companies to use the employee’s time and money to float their own cash flows. In the Peace Highway and Peace Cities all employee members will be paid daily.
    2. The average per capital annual income around our planet today is about $6000 but this is terribly misleading because about twenty countries account for averages above $40,000, leaving over 100 countries with annual averages below $400 or about $1 a day. This is a huge problem and the base of many social and economic problems around our planet.  We want to set the base annual income at $12,000 or $1,000 a month, or $33.33 a day for each of 30 days each month.  The base workload will be 20 days out of thirty each month with six-hour shifts each of those days, producing a base wage of $8.33 per hour.  We are assuming eleven months of equal 30 days in each month and a December of 35 or 36 days each year.  We are also assuming each month will have six workweeks of five days each.  Every day of twelve months each employee will receive at least $33.33 into their bank account.
    3. All Peace employees will receive at least the base pay, but they will also receive bonus pay each day as well as annual bonus pay and an annual dividend pay.  An example of daily bonus pay might be someone that assembles urban wind mills in a Peace company and he or she will receive a quality bonus every month each windmill they assemble has no maintenance problems.  Let’s say the annual bonus for a crew of four on the assembly is $100 and a crew of four builds three units per day, 60 per month of 20 work days and 720 per year they each can earn about $50 of quality bonus per month, or an additional $1.66 per day.  The second year the accumulative total goes to $3.32, the third year to $4.98 and so on each year.  They will each continue to receive this quality bonus each month as long as the windmill they assembled stays in service for the life of the unit.  Do you think we will see the highest quality windmills ever made?
    4. An annual bonus might be related to a team accomplishing some production goal or safety goal.  Since each employee may be given one share of voting stock after maybe three years of service they will be eligible for a division of net profits paid out in dividends at the end of each year.  All Peace companies are 49% owned by their employees so they each will be rewarded for keeping costs down and profits up.  Do you think we see some of the most efficient, safe and profitable companies ever started?
    5. The base could be set much higher for individual employees.  For example the windmill company might set aside $400 for each unit assembled by a team of four, so they each will make $100 per unit.  If the team assembles three units per six hour shift then they each will make $300 a day, not the $33.33 per day mentioned above as the base.  The base pay for each of these assembly team members could be $72,000 a year, plus the additional daily and annual bonuses offered to each of them.  Do you think we will have any problems recruiting the best of the best employees or having them stay for as long as they wish?
    6. We now see a windmill employee member receiving $200 a day plus their daily bonuses into their Peace Bank Account.  Every Peace employee and every member of any Peace City will be granted a Peace Bank Account for life.  There will never be any monthly service fees or penalties for each account.  Each account is very unique in that the account automatically subdivides each daily income into the following individual sub accounts:
      1. community tax       10%
      2. regional/state tax      5%
      3. national tax             7.5%
      4. international tax      2.5%
      5. individual savings   15%
      6. individual medical   10%
      7. individual benefits   10%
      8. individual home       20%
      9. open                         20%
      10. Total                      100%
    7. Each Peace Citizen is also given a Peace ID smart card, which can be verified, with either a fingerprint or eye scan.  This Peace ID is also connected to the Peace Bank account and it works like a debit card to purchase items at will, but never more than they have accumulated in their open individual account.  All items purchased on credit must be budgeted into the monthly open account so that all citizens will live within their monthly budgets.  This Peace ID card also serves as an international passport to allow citizens to travel on the Peace Highway to any destination and Peace City, as well as any participating city or country.
    8. Within Peace Cities and with anyone having a Peace Bank Account they must agree to only use their Bank account for all their money.  There will be no need for cash or coins in this money system.
    9. We now see also where cities, states, nations and an international organization gets their incomes for their budgets.  Instead of these entities setting tax rates and usually going over budget so they have to keep raising taxes this new approach is setting the tax rates or government incomes from the bottom up.  Once these rates are agreed upon they cannot be changed without a two-thirds vote of agreement from the citizens affected.  City, regions, nations and the international organization must live within their budgets.  They cannot be allowed to go over budget or create long-term debts that are not budgeted into their monthly and annual budgets.  Everyone has to live within their budgets; and city, regional, national and international budgets have to have the majority vote of approval by electronic voting every year of all citizens.
    10. Since all taxes are basically paid daily into individual tax accounts there will never be any need for annual tax reports, or any fear of a tax audit.  There will be no deductions and everyone will pay the same taxes.
    11. Companies within the Peace Money system will basically have a general account with sub accounts for income and expenses and will pay the same taxes as individuals on all income.  No deductions. No tax filing.  No offshore accounts.  No tax audits.  All businesses will pay the same taxes.
    12. All individual accounts such as medical, savings and benefit accounts are fully portable allowing individuals to change jobs and even cities with their accounts following them anywhere.
    13. The open bank account for individuals may accumulate incomes over months and years and is always available to the individual to spend as they wish but they may elect to create lower and upper caps on their own spending so that they will always have enough in their account to buy food and take care of personal and family needs.   Recreation centers (gambling houses) may have caps set on individual spending that does not allow spending more than a certain percentage of an individuals open account.
    14. In this money system governments need to find ways to increase personal income to increase tax revenues.  They cannot just raise taxes without a vote of their citizens.  We recommend the same tax structure for all countries.
    15. It is obvious that some jobs will be able to offer more pay than others so some individuals and family’s will have more money in their budget then others, which will allow them to choose different housing and lifestyle expenditures.  In general terms we see this money system dramatically raising the lower income levels, to $1000 a month, and probably seeing fewer really high salary incomes but giving very strong support to middle class incomes and budgeted lifestyles.  Housing, education, medical care, social services, and some recreation and transportation costs may be covered by this system for everyone living within Peace Cities and working for Peace Highway.   There will probably be no national government social security, Medicare or need for subsidized programs for education or unemployment for citizens of Peace Cities. 
    16. Peace cities will also receive income from the Peace Highway.  Twenty five percent of the income derived from passengers and cargo fares will go to the employees of Peace Highway and twenty five percent will be used to pay for Peace Highway as well as future expansion, with another 25% going to pay for on going operations.  The remaining 25 percent of fares will be budgeted with 5% going to the local Peace city, 5% to the immediate region/state, another 5% going to the immediate nation and 5% to an international organization representing Peace Highway and Peace Cities.   The last five percent will be put into a safety reserve for emergencies and unexpected events.  These budgets may be adjusted according to needs and approved by majority vote of all employees of Peace Highway.
    17. The exception to these incomes going to city, regional and national governments will depend on their adherence to Peace Priorities.  Peace Highway may deduct from these incomes for breaches to peace and not providing for the safety and well being of local citizens as well as people around our planet.  Nations, and even regions, involved in war and terrorism acts may not receive income from Peace Highway.  Cities that do not provide community safety and crime prevention may not receive income from Peace Highway.
    18. While individual accounts within Peace bank will always be kept confidential the total financial report of incomes and expenses for Peace Highway will be made public through Peace Bank via its website.
    19. Peace Highway and all employees within Peace Cities will use the same money in the form of Peace Dollars.  Different nations may have different exchange rates for fares coming onto Peace Highway.
    20. Peace Bank will pay interest rates between five and six percent to all savings account holders and loan money out at fixed rates between seven and eight percent.  People, companies and organizations not employees of Peace Highway or live within a Peace city may also open bank accounts with Peace Bank and have the same sub accounts and receive five to six percent interest on their savings.
    21. While it is seen that there will continue to be publicly traded stock and bond markets it is expected that most individuals, pension funds, companies and organizations will probably chose to invest their excess “savings” funds into Peace Bank accounts.  This action will greatly reduce the up and down swings of savings funds worldwide.
    22. The Peace Bank itself will never buy or sell money in currencies outside the Peace Bank.  This may stabilize international money currency markets and greatly reduce the speculative overnight exchange rate buying and selling of trillions of dollars each day.
    23. Within Peace Cities houses will not be mortgaged but lifelong leases computed on seven percent interest of actual cost of basic construction.  Once the actual cost of construction is paid in full the lifelong lease actually starts to decrease in cost each month to some base level that continues to help pay for community property and services.  All housing units are basically guaranteed by their total city so there will never be foreclosures or individually owned property.  The basic housing unit is expected to be much less than homes built on the open market today with average costs running between $20 per square foot to $50 per square foot.  Most Peace Cities are expected to be multilevel common wall constructions similar to condos with large center hallways and open patios and walkways on the exterior.   Residences are selected by new city members according to their expected budgeted incomes from jobs or other sources of incomes.  Individual residences can then design and add to the basic construction to their own interior design priorities.  Residences may be swapped or traded within a city as families grow and budgets change, or between Peace Cities as jobs may change.
    24. While it is expected that there will still be the need to elect city, regional, national and international representatives to deal with policies and on going communications at each level there will be major decisions on policies and budgets that citizens need to place their vote.  During the first week of each new month these issues will be posted to an electronic messenger system attached to each individual’s Peace Bank Account.  Individuals will have the week to vote on each issue.  If they do not place their vote within that week their open account within their Bank Account may be frozen until their vote is cast.  Individual votes will always be secured by using their Bank Card and verified by their fingerprint or eye scan.  All individual votes will always be kept confidential but the results of these votes will be publicly posted on this same electronic messenger board at the end of each voting week.  Every citizen, age 18 and above, will have the same input, and responsibility, for government decisions.
    25. Since every person within the Peace money system will automatically pay into an international government organization, whether it be the United Nations or a new Earth Federation system there will accumulate funds for this organization to provide international services for emergencies, natural catastrophes, economic development, nutrition and health services, and millions of new jobs around our planet.   The United Nations is well organized to be this organization today if the five Security Council members will only give up their veto powers, allow all representatives to be elected from nations based on population.  The international organization needs to represent all the people of our planet and not the wealth or certain nations. With every individual and company paying into this organization it can become truly a global representative synthesis organization for our planet and all its people.
    26. With over half of the world’s population and possibly 80% of all citizens and companies being involved in the Peace Money System it will be very possible to monitor international economic variables from grain production to availability of oil resources.  This availability of reliable market and financial information should dramatically reduce speculation on future markets and take out the wide swings in all speculative markets, stocks and bonds.  There still may be small ups and downs in markets and prices as supply and demand changes but overall we should see small swings and not catastrophic swings.  Instead of builders over building hotels, offices, shoe stores or speculative homes these should become balanced within comprehensive master plans in new Peace Cities.  Instead of investors going crazy online to drive up stock prices most investors may elect the safety of guaranteed savings with the Peace Bank.   Instead of overly complicated systems of financial voodoo the world may learn to live with open transparency of full disclosure as well as a world growing economically within balanced equilibrium.   A world in balance makes a whole lot more sense than what we see today.  Do you agree? 

    Your submission may use any of the above ideas and concepts or you can go in any direction you recommend.  You can deal in detail specific recommendations or you can chose to provide a more comprehensive overview of your recommendations for developing a Peace Money System..  Your submission could deal with any of the following issues:

    What is money?

    Why have just one money system?

    Can wealth be redistributed?

    Should everyone have the same wealth?

    How can the poor every get more money?

    Why are there so many poor?

    Is money evil?

    How can banks be improved?

    How can we raise the average per capita income for everyone?

    Should the wealthy share their money?

    Should families save more money?

    Should we do away with credit?

    What would be an average family’s monthly budget?

    Have personal homes become too expensive?

    Should we build cities without cars to save on money?

    Are stocks and bonds good investments?

    Is real estate a good investment?

    What has caused the financial crisis we see today?

    Is there a connection between money, greed and wars?

    Could the financial crisis been avoided?

    What can be done now to get us out of this financial crisis?

    What needs to be done to the money system to prevent another crisis? 

    Your submission can include written scenarios, designs, photographs of models and short videos.  All submissions need to be emailed, with attachments to the below address no later then December 31, 2009.  Submissions of merit will be posted on this site.  By submitting all entries are agreeing to allow their material to be shared with the world on this site. All entries will be judged by a panel of reviewers and awarded Peace Points. Points may be accumulated, auctioned or redeemed. (See Rewards Exchange Board) 

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Last Updated on Tuesday, 14 September 2010 19:45