Time as money

The economic crisis forces to seek and create alternative financial systems when virtual units of information measurements or time spent on labor serve as money

If on Sunday to get to the city market in a small Greek town of hair , then on the price tags you can’t see the usual euro. Instead, there is another currency - that . One is equal to one euro, but it is not possible to buy it in the exchange point. Thus, you can only earn: selling crafts, farm products or old clothes, as well as offering different services - yoga, English, piano game courses. The money earned in this way is spent on other goods and services offered. About 800 hair residents use this alternative financial system. Formally, they do not consider the money, since existing commodity relations are more reminiscent of a barter common in Europe before the appearance of money.

The project of the emergence of an alternative monetary system was supported by the mayor of the hair Panos Skotiniotis . He believes that topics help to overcome a deep economic and social crisis, since local residents, buying goods and services from their neighbors, support entrepreneurship in their region. As a result of the emergence of such a system, a small cooperative appeared to grow plant seedlings, in which young people are busy, among whom in Greece and throughout the European Union the highest level of unemployment. For the topics received from employment in it, you can go to the hairdresser, buy products or pay for a circle for children.

The emergence of currencies in the circulation in parallel with the official currency of the state forced the European Central Bank to conduct a study of the banknotes , which are paid by the EU citizens.

This document states that the occurrence of a large number of alternative monetary systems, which is observed in recent years, is associated with the massive spread of access to the Internet and an increase in the popularity of social networks. Along with currencies by type of those that you can pay even in a regular store, there are completely virtual monetary units that circulate exclusively on the Internet. But even the virtual currency allows you to purchase real goods and services that offer online. On the Internet, most often we are talking about currencies that can be purchased for really existing money - dollars or euros, as, for example, Facebook offers. At the same time, there are currencies that can be earned in the virtual world and subsequently exchange for real money. For example, Linden Dollars (L $) pay in the virtual world of Second Life for services and goods that are sold and provided in this world far from reality.

The study of existing alternative currencies was launched by the European Central Bank to find out if they pose a threat to the banking system. Official currencies, ”the document says, are controlled by state banks, and, as a rule, their cost reflects the real state of the economy of a particular country. But the existence of alternative currencies does not threaten economic stability, since few use them. The holders of alternative currencies are at risk, as they can lose their funds in case of the disappearance of the monetary system. There are also fears that scammers can use an alternative money system. But at the same time, there are still no significant violations related, for example, with Greek topics, has not been observed.

Virtual currencies acting exclusively on the Internet are more risk, which get new "depositors" much faster than those currencies that circulate locally. The most famous online package that can be paid for real goods and services on the network is Bitcoin (BTC). Even charitable organizations accept these virtual money, since Bitcoin can be purchased and sold on the exchange: many online traders exchange it even for rubles, not to mention dollars or euros.

This system was invented by the Japanese Satoshi Nakamoto, but who is he and whether this name is real is unknown. Bitcoin currency has a limited number - 21 million units. For this reason, even modern financiers bought it. Once Bitcoin exceeded $ 29. But this is so far the only case of the successful creation of a virtual monetary system. The remaining currencies, as a rule, have neither a course nor in advance these circulation conditions. On the other hand, many creators of alternative monetary systems are just striving to get rid of the classical market rules of demand and supply. In such systems, they see the possibility of an alternative lifestyle in which there is no place for the rules planted on top. With this thought two years ago, New York artists of Huliete Aranda and Anton Vidox came up with the Time/Bank project. The meaning lies in the alternative currency, which indicates as the cost the amount of time spent to work. Say, if you repaired the neighbor’s neighbor and it took 30 minutes, then he will give you a bill with the corresponding value. In New York, in a special store "Bank of Time" for this bill you can buy texts about Hegel. There are other goods here: condoms cost 20 minutes of some useful labor, brushes-15 minutes, guitar-14 hours. But most often, during the time spent on one or another useful activity, you can visit a specially organized feast, during which famous artists either give lectures, either show films or play musicians. "Time Bank" exists already in several countries. Most of these banks in Europe: Germany, Holland, Belgium, France and even in Russia .

The time spent on this or that work is equalized by the work of all people, regardless of qualifications, so the repair of a bicycle, walking the dog and the design of the site can be the same. This idea is not new. Long before, in the "capital" of Karl Marx, passages appeared that the cost of human labor is a measure of assessing the value of goods, this was written by the English philosopher and socialist Robert Owen, whose ideas picked up

American Joshua Warren. In 1826, in the city of Cincinnati, he opened a store in which he sold goods for coupons, which indicated time. The buyer who owns some kind of craft offered in exchange for goods a certain amount of time that he agreed to spend, providing his services. So the time exchange system arose not for money, but for work. Moreover, the exchange took place at cost, without an extent, which led to the huge popularity of the Warren enterprise.
The ideas of Warren also inspired members of one of the many British public organizations that collaborates with volunteers. The time spent on the aid of housework at home, to give a lecture for sick adolescents or people with mental illness, can be presented free of charge. In exchange, volunteers (as a rule, these are young people) receive the necessary practice, without which it is very difficult to find a workplace.

Volunteering and solidarity underlie the ideas of the German architect and economist Margrit Kennedy, who wrote several books on an alternative economy. Kennedy herself lives in a small environmental

The village in Lower Saxony, where many household appliances of the family use together. For example, a vacuum cleaner - one for four houses. Kennedy draws attention to the fact that the current financial system is unstable and subject to crises. In her opinion, this is because money is given on credit at interest. Kennedy stated her ideas in the book “Money without interest and inflation”, which was translated into Russian, and immediately after the start of the current financial crisis Kennedy, under the impression of the OcCupy Wall Street movement, wrote the book Ocupy Money. It says that banks charge too high interest for loans. Some of these accruals are justified, for example, for the services of a financial institution or for the risk that banks take upon themselves, lending money. But, according to her, this amount never exceeds 2.5 percent per annum. In reality, people pay much more for money on credit. As a rule, additional payments are a bonus to those who lend money, hoping to receive profit from this or at least avoid the consequences of inflation, for example, private depositors and funds. Kennedy claims that these payments are not required, and if you create an alternative to the existing model of credit and money relations, then the financial system can be stable. She offers to cancel the rule when "money makes money." “The functioning of the modern financial system is programmed to the emergence of the oligarchy that has money, while people who do not have funds fall into a modern form of slavery,” says Margrit Kennedy. “I advocate for interest -free loans, which, for example, is given by the Swedish Bank JAK. In other words, all the money of all people should be in turnover, and those who keep their home, who are earned at home, I would pay for this, as well as to give money to everyone, of course, the banks should have the opportunity to transfer funds to the central bank, it would allow the central banks to have a clear picture of the turnover, whether this is not my idea. JAK, which resembles a large cash desk of mutual assistance, ”said Kennedy.

Reference: The Swedish Bank Jak Medlemsbank is a cooperative. JAK is an abbreviation from the Jord Arbete Kapital, or "Land and Labor Capital". According to 2008, the number of bank members was about 36 thousand people. All of them are owners who determine the policy and work of this financial institution. All the bank’s work is conducted outside the financial markets, therefore, in order to become a member, you need to make your savings. These funds are used to issue interest -free loans (only the amount to cover administrative expenses is charged from debtors). The bank members accumulated 97 million euros in 2008, of which 86 million were issued as loans.

Margrit Kennedy admits that at the moment the changes offered to her in Germany are contrary to the current legislation, but she believes that, if the necessary reforms are carried out, this would allow to issue interest -free loans. In his books, the German architect and economist proposes the introduction of regional currencies that would circulate along with the official currency of a particular state or monetary union. In her opinion, these funds would help to develop specific regions. Kennedy also proposes to introduce alternative currencies in the field of health and education. She claims that even central banks would not resist this, since in the case of a collapse of the main financial system, alternative systems would help people not lose their savings. In her opinion, the current system of interest with money always leads to a financial collapse: “Different forms of insurance and securities are depreciated. And this continues for the past five thousand years. Therefore, you have to forgive debts - there is no other way out - and it has been done all over again. This was done even in ancient Rome. And in the history of Argentina there was a case when the sand was depreciated by fifteen thousand citizens Buenos Aires alternative currency system spread throughout the country and helped to survive eight million people in a crisis situation. " Margrit Kennedy in his books offers other options for reforming the modern economic system. Some she draws from real life. In Brazil, for example, a special tax was introduced for the needs of education. 40 percent of the population of this country is under 15 years old, and the Brazilian government came to the conclusion that it cannot create and, most importantly, to finance a system that would give all representatives of this younger generation a good education. The solution was found during the privatization of the mobile network: from each telephone account, one percent was expelled to the special educational fund. During the year, it was possible to raise 1 billion dollars at the disposal of the Ministry of Education. How to dispose of this money was invented by economists who proposed introducing a special "educational currency" - in the form of vouchers. Vouchers would be issued to schoolchildren of primary schools, and they could pay them for additional lessons that high school students would give them. The chain led to the very top, to students of higher educational institutions, and students would spend the proceeds on educational needs. This idea, unfortunately, was not implemented, but this makes us think that if desired, we have the opportunity to create alternative economic relations between people, concludes Margrit Kennedy.