Category Archives: Eng

Altruistic Currency VS LibreMoney

There is a very interesting project LibreMoney. Its essence is that the money issue is carried out directly for the financing of an innovative project. In the scheme with an altruistic currency there is an intermediate – the bank which imposes responsibility on the sponsors of the draft in the form of the necessity to return money plus an additional percentage that reflects the risk calculated by the bank agent. Offhand, taking into consideration qualified work of the agents, such a scheme instead of inflation should cause deflation, because high-quality projects lead to the appearance of to an additional mass of commodities which is much higher than the amount of the initial investment (issue). In practice we face low-quality work of the agents, for example, like in the case with the US mortgage crisis. Agents were providing deliberately substandard loans. That led not only to inflation, but to a collapse of the financial system. The problem of modern Western system is in that it is based on the ethics of the admissibility of deception in order to increase profits. The solution to this problem lies in strict compliance with this ethics where deception is not allowed. The percentage is taken to be sure of maintaining a positive balance of bank assets. But the basis of expansion of the monetary base in altruistic currency is a steady increase in money multiplier. Therefore there is no need to take additional percentage. You may not even charge a fee for the work of the banking agent. In my opinion, it’s the basis for the nationalization of the entire financial system, as it no longer presupposes the existence of profit. In LibreMoney project theoretically there is no bank intermediate, no additional percentage the quality of the projects is monitored by the crowd community which generates the projects, and issue money isn’t returned by the authors.

IDEOLOGY AND INSTITUTIONAL NICHE OF THE VIRTUAL STATE

– Well, American, tell me what is power? Is it money? My brother also says it’s money. You’ve got a lot of money, and what? I think power is truth. The one who’s got the truth is stronger. You have deceived someone, made some money. And what, have you become stronger? No, you haven’t. For you have no truth behind you. And the one whom you deceived, he’s got the truth behind him, so he’s stronger.

Danila Bagrov’s monologue from the movie “Brother 2”.

Introduction

The Virtual State(Сommunity) is based on copyright law of transferring the work on any reasonable terms. Such systems already exist in the form of the communities of Open Source and Free software. They are often accused of trying to build communism. Indeed, knowledge and information have the property of indivisibility. If we divide them between the people, there won’t be less of knowledge and information. The usefulness of knowledge and information increases at each division, and at the universal access to knowledge and information we can achieve maximum productivity effect from them. I think that achieving maximum productivity effect from knowledge and information can be called communism.

Modern society is reproduced through the control of access to information and knowledge. Can we overcome this control and reach communism using the technologies of Free and Open Source software? In its current form – no.

I’ll try to convince you of that on three examples I know.

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