For every job listing in America, six people are competing to grab it for their own, even if its not what they want to do or its unrelated to their prior work. Times are desperate. Credit is tight, and business that would even want more debt cannot get it easily from the system. The American (and Global) economy is imploding because the global reserve currency, the dollar, is no longer an abundant resource for users and addicts on Main Street. While governments and commercial banks can get “the stuff” at cheap interest rates, everyone else has to pay back serious vig.
So what if: All 263,000 of these newly unemployed people registered into ξFin with the existing 31? What would the immediate economic effects be?
- Private individual credit would leap to ξ12.480027 per person. Over 12 hours. There are other “credit lines” for social spending for public goods we’re not going to talk about here.
- Aggregate credit increases to ξ3,282,634.03. That is there are over three-million hours of credit available to participants in the across system to use.
Credit in this sense in ξFin is nothing but a limit. If you use up all of your credit, you cannot “increase the line” or open a new line of credit—there is only one type of credit line per person. If you have exhausted it, you’re out of luck. Everyone is equally “bankrupt” in this sense and there are no credit reporting agencies or credit scores. You have a fundamental right to the same amount of credit as anyone else–there is no reason to rate your “credit worthiness” and there is no risk of default or loss. [This is how we get rid of a major kind of systemic risk or business cycle–we don’t have contractions of credit from unsustainable debt, we only have an algorithmic limit to how much credit we introduce to the system. This limit forces all individuals in the market to make immediate economic decisions for what they do with their credit instead of “buying the toy today and paying for it tomorrow.”]
Now in the Legacy credit system, the down-trodden have to declare bankruptcy and live with it for some number of years while all other credit is insanely expensive—a cruel joke when the majority of bankruptcies are caused by medical expenses. [Is it no wonder that suicide is a growing problem?] Our solution to the problem is to get rid of it completely and treat everyone as an equal: those who do well with their credit will do well, those who don’t, learn how to manage it without penalty. Everyone is equally bankrupt and credit for everyone regenerates at the same rate.
- Regenerative credit (at this point, there are enough people in the system to warrant it) to everyone at ξ0.080128/day.
This seems like a small amount per person, but across the system its ξ21,076.156 of new capital distributed across 263031 people. Only if everyone cooperates in a market will the market and economy see this new capital. That is, if you do nothing with your ξ12.480027 credit, you will not see any regeneration and no new capital is added to the system. What is everyone expected to do with all of this credit?
- They buy equity in businesses. Now equity in ξFin doesn’t work like stocks where you buy at one price and sell at another—this encourages the “lottery” mentality that ruins nations and kills babies. You invest in functioning businesses that pay dividends. The more you invest from your credit, the larger your share of dividends will be. You cannot “cash out” of a business, your credit is like gasoline: its used up by the business in operations and cannot be recovered. Bad businesses will have bad burn rates and never return dividends–and the market will refuse to fund them any further if it believes that there will never be turn-around. Bad businesses fail fast, as they should.
This doesn’t even take into account the other credit lines everyone manages–called social credit. Social credit is used for public goods and services: fire & rescue, police, etc. are taken from regional social credit; interstate infrastructure, defense and border services from national social credit; and global services (like what we’re to do about global warming, population, etc.) from a global social credit. At each level of scale, there are of course more people–and they’ll all have a vote on how this credit is to be used in the end, but that’s another post.