EsSolution details

Summary points

This area continues to be developed in note form in my desktop documents. Here’s my current understanding yet to be tabulated and expanded:

2017-10-19 EsSolution proposes to move measures and influences from financial/credit&growth (and agnostic measures and influences) towards CommonGood/sustainable economy:

Have a new independent institute SWC (Sovereign Wealth Committee) develop & publish guidance on allocation of debt (money created out of nothing) by private organisations (any credit creators e.g. commercial banks). And better still: principally by public banks. (This guidance is to both ensure money creation is coupled to the real economy, and to have money creation published for societal interests above the current exclusively private (commercial) interests).

Ensure legacy non-performing assets (inherited from before these changes become effective) are transferred, usually from commercial banks, to central bank balance sheets without fiscalising in the ‘real’ (monetary) economy (i.e. without creating debt in the the real economy to bail out the commercial banks). (This RLA Reserve Ledger Accounting exists only between regulated debt issuers and central banks). (Richard Werner).

Moving from GDP to GPI. Connect economy measures at this national level to organisational measures (e.g. Common Good balance sheets) through accounting regulation. Apply carbon content measures to balance sheet & income statement reporting.

Underlying both the above macro aspects is a road map transitioning the measuring of creditworthiness (i.e. forward payment / future drawdown, and its resulting risk and exposure) from financial under 2IR to sustainability under 3IR.

Reverse the increasing decoupling of financials from the ‘real’ economy (in the form of historic fiat & fractional reserve, going off gold standard, deregulation, and increasing forward payment, capital fluidity & financialisation) to decreasing the decoupling (via mechanisms newly available to 3IR).

Increase coupling towards the more real & tangible economy (however it is instantiated) and away from financial & speculative economy: incentives to direct credit/towards tangibles, and disincentives towards financial & intangibles. e.g. disallow money (especially societally supported credit & debt, and institutional money) into speculation (especially financial), permitting only private money such speculation. (Werner)

(Recommitment to applying the existing and new mechanisms that re-couple risk and cost to benefit in anthrosphere (environment, material, governance & social spheres). Facilitate information coupling of these two, and consumer/prosumer pressure, and governance pressure.

Couple contract enforcement to country of registration, reducing legislative tourism into alternate first world societies (who currently enforce legal actions & penalties on contracts whose tax beneficiaries are domiciled in tax havens).
Couple capital to the underlying and local economies by adding friction to international capital transfers.

Moving companies to Common Good Balance sheets (output, includes externalised costs, TV in NPV), and to ‘superior responsibility’ & pass-thru corporations, ‘laws of trust’ (input).

Move societal currency from monetary to reciprocity (timebanks and ‘core’ economy) (income) in anticipation of roboticisation & UBI.

Move personal flow tax from neutral (income) to harm (on expenditure);
Move personal capital tax from growth (increase) to value (wealth), dependent on applying effective categorisation (on scale of benefit – harm) and appropriate valuation.

Move economy from 2IR vertical to 3IR horizontal (mobilisation to decarbonised lifestyle Malcolm Rifkin, cradle2cradle), from current to post-capitalist (zero marginal cost Rifkin), incentivise transformation (1IR to 2IR Paul Mason, GPL Pistono), SimCity modelling incentives Mason).

2017-10-19 (TheRSA.org) Where is the forum that can accumulate all these end states we want to be in, and all avenues and methods leading from where we are now to that state?

The forum will accumulate fundamentals of the current and alternate end states, and avenues, methods and measures of moving from where we are now to those states. I assume the end state(s) will have the common good as foundation. The forum must integrate the separate themes and threads that contributors and visionaries from those end states, and identify overlaps and dichotomies. It will develop route maps for the items with required measures and methods.

The forum will become a reference and benchmark site of Wikipedia quality for stakeholders to measure the positions and direction of the existing authorities and power holders, against the end state(s).

Table of verticals

The 2014 table was a first attempt to depict a framework on which a Wiki would be launched. The list in the top of this page shows that it needs updating.

The highest level classification of items within the area was tabulated in 2014 in the main desktop document, together with notes on each item. The table is yet to be updated, re-formulated and moved onto this site. A paste of the table into WordPress loses the hierarchy indicated by the dots, but at least it lists the items and keyword measures and existing resolutions in the public domain that has specified a way forward. This table depicts the areas of the activities within the anthrosphere, and the nudging or resolution they need for society to continue without internal and external changes disfiguring the current operation beyond recognition and forgiveness.

Problem (impact is bracketed)	Resolution	metrics, measures
National / internal
Externalised Cost Model (process now)	–
.   carbon-based energy (environment),	Non CO2 (climate change)
.   non-cyclic unidirectional resourcing	–
.   .           extractive sourcing (future),	Cradle2Cradle
.   .           carbon-based economy (future),	3rd IR Rifkin, Non-carbon
.   .           discarding disposal (environment)	Cradle2Cradle, Capanri italy
.   rest of harm
.   .           geographical developing country producers (environment),	Internalise
.   .           local producers (environment),	Internalise
.   [reporting: each of the above]
Future Constraint (future end)	–
.   extractive sourcing (future),	–	‘TV in NPV’
.   skewed control .   .           non-material / funding	Money, financials, economics
.   .           non-material / intellectual	Digitise, Democratise, Distribute, Viral GPL,
.   .           legislative	‘superior responsibility’ & pass-thru corporations, ‘laws of trust’, Benefit Corporation, Economy for the Common Good (ECG), GlobalEconomicGovernance.org
.   [reporting: each of the above]
Social Cost Model (Skewed social model)	–
.   unrewarded social infrastructure	Engage via ‘core-economy’, citizen income payable on engagement	Material à Value social enterprise
.   rewarded non-social infrastructure	?
.   intangible productivity measure	?	GN happiness
.   [reporting: gross national happiness]
Material Cost Model	–
.   tangible productivity measure	ManHour -> ResourceUnit	Productivity
Consumption Lifestyle	–
.   non-cyclic unidirectional resourcing	Nudge user
.   (financial social model)	?
.	Consumption tax
.   [reporting: gross national happiness]
International
.   Donor / export

– means no specific solution.

The monetary default is nudging, tax adjustment.

Table of Whats vs time period

This table tabulates what I learned of the three industrial revolutions, and so the trajectory of the third (3IR)

Whats		1760 1840 1IR	Now end 2IR	Transition	Future (3IR)
Market/economics/societal
.   foundation-exchange medium (=leverage)
.   .           leverage-labour				Disconnect/delink
.   .           leverage-financial capital		High	High	Connect/link
.   .           leverage-intellectual
.   foundation-input (=leverage)
.   .           accrued capital-exchange medium
.   .           .               material
.   .           .               human
.   .           .               robots/machines
.   .           technology-hardware
.   .           technology-methods
.   foundation-output (=leverage)
.   .           accrued capital-exchange medium
.   .           .               material
.   .           .               human
.   .           .               robots/machines
.   .           technology-hardware
.   .           technology-methods
.   Mediums
.   .           communications
.   .           transport
.   .           energy