2. Financing – Clearing Union
Peer to Peer trade credit - banks as service providers not
lenders
Bank capital requirement is only for operating costs
Goods and services change hands by reference to $, not
necessarily in exchange for $ currency
Credit risk shared by sellers and buyers collectively
No 'interest' (money for the use of money)
Default costs and operating costs shared
4. Clearing Union - Seller accepts Buyer's IOU
Value
Seller Buyer
IOU
5. IOU is guaranteed by Clearing Union of Sellers &
Buyers collectively
Value
Seller Buyer
IOU
Guarantee Guarantee
Pool
6. Seller & Buyer pay guarantee charge into Pool held
by Custodian
Value
Seller Buyer
IOU
Fee Fee
Guarantee Pool Guarantee
7. 1/ Buyer settles credit in money or 'money's worth'
eg energy stock
Value
Seller Buyer
Fee Fee
Guarantee Pool Guarantee
8. 2/System identifies a 'chain' of IOUs
A<B<C<D<E<A and 'nets' them out
IOU
Seller A Buyer B
Fee Fee
IOU IOU
Pool
Guarantee Guarantee
Buyer E
Buyer C
Buyer D
IOU IOU
9. 3/ Buyer defaults: system pays sellers and collects
from buyer if possible
Seller A Buyer
Default
Collects
Pays Default
Pool
Seller B
Pays
10. Service provider sets guarantee limits, handles
defaults & manages system
Value
Seller Buyer
IOU
Fee Fee
Guarantee Pool Guarantee
Service Fee
Service
Provider
11. Financing – Capital Partnership
Investment to a common purpose in people businesses
Production and/or revenue sharing between investor and user
of investment for as long as the investment is used
No 'interest' (money for the use of money)
Sharing of risk and reward – no default
12. Capital Partnership
Users
Payment Use
Custodian
Custodian
% %
Investors Managers
22. Art of Flirting Partnership
Viewers
Viewers
£
Custodian
Custodian
% %
Financial Capital
Financial Capital Human Capital
(Investors)
(Investors) (Actors, Producer, Me)
31/05/10 22
24. They do not own anything, do anything,
employ anyone, or contract with anyone...
03/04/10 24
25. Associative agreements require no legislation
Users
Users
Payment
Custodians
Custodians
(National)
(National)
% %
Financial Capital
Financial Capital Human Capital
(Money, IP etc)
(Money, IP etc) (Developers, Operators)
03/04/10 25