Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

(3) Banking on Ourselves - Transition

2,535 views

Published on

Published in: Economy & Finance
  • Be the first to comment

(3) Banking on Ourselves - Transition

  1. 1. TransitionBanking on Ourselves Chris Cook Schumacher College 15 November 2012
  2. 2. Conventional Banking ValueSeller Buyer Bank IOU IOU
  3. 3. 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. 4. Clearing Union - Seller accepts Buyers IOU Value Seller Buyer IOU
  5. 5. IOU is guaranteed by Clearing Union of Sellers & Buyers collectively Value Seller Buyer IOU Guarantee Guarantee Pool
  6. 6. Seller & Buyer pay guarantee charge into Pool held by Custodian Value Seller Buyer IOU Fee Fee Guarantee Pool Guarantee
  7. 7. 1/ Buyer settles credit in money or moneys worth eg energy stock Value Seller Buyer Fee Fee Guarantee Pool Guarantee
  8. 8. 2/System identifies a chain of IOUs A<B<C<D<E<A and nets them out IOU Seller A Buyer B Fee FeeIOU IOU Pool Guarantee GuaranteeBuyer E Buyer C Buyer D IOU IOU
  9. 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. 10. Service provider sets guarantee limits, handles defaults & manages system Value Seller Buyer IOU Fee Fee Guarantee Pool Guarantee Service Fee Service Provider
  11. 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. 12. Capital Partnership Users Payment Use Custodian Custodian % %Investors Managers
  13. 13. Capital Partnership reinvents Equity
  14. 14. Equity Shares - % age shares in flows of revenue or production03/04/10 14
  15. 15. Stock – returnable in payment for use value eg rentals, Kilowatt Hours
  16. 16. Example: “The Art of Flirting” – a film incorporated as an LLP31/05/10 16
  17. 17. The actors received nth’s of gross revenues31/05/10 17
  18. 18. I got 5%...and the producer the rest31/05/10 18
  19. 19. But we needed lights, cameras, pizza, coffee 31/05/10 19
  20. 20. Capital Partners invested £ for 20% of the revenues....31/05/10 20
  21. 21. ...if there are any31/05/10 21
  22. 22. Art of Flirting Partnership Viewers Viewers £ Custodian Custodian % % Financial Capital Financial Capital Human Capital (Investors) (Investors) (Actors, Producer, Me)31/05/10 22
  23. 23. Capital Partnerships are not Organisations 03/04/10 23
  24. 24. They do not own anything, do anything,employ anyone, or contract with anyone...03/04/10 24
  25. 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
  26. 26. Transition16/06/10 26
  27. 27. Energy subsidies in the Middle East alone cost trillions of dollars16/06/10 27
  28. 28. Investment in the global transition torenewable energy needs trillions of dollars 16/06/10 28
  29. 29. How do we make the connection?16/06/10 29
  30. 30. Energy Stock User User Energy Custodian CustodianEnergy Energy Investor Investor Manager Manager
  31. 31. Stock - returnable in payment for energy05/04/10 31
  32. 32. Mega Watts: renewables funded by unitising Energy Pool of production.05/04/10 32
  33. 33. Nega Watt energy savings - the cheapestenergy - funded by an Energy Loan in Units09/03/10 33
  34. 34. Energy Loans made to properties & repaid via utility bills out of energy saved 09/03/10 34
  35. 35. Funded by investors who invest through buying Units in Energy Pools09/03/10 35
  36. 36. Energy Loan of £5,00050 Units of 1 Megawatt Hour @ £100 per Unit 09/03/10 36
  37. 37. 5,000 Units of 10 Kilowatt Hours @ £1.00 per Unit...and so on09/03/10 37
  38. 38. Reduced energy bill for energy consumed09/03/10 38
  39. 39. Energy Loan repaid through buying Units from the Pool at the market price09/03/10 39
  40. 40. The UK Green Deal – Compound interest and Jevons Paradox09/03/10 40
  41. 41. Stock: saving energy is saving money09/03/10 41
  42. 42. But how do we transition from a carbon economy?09/03/10 42
  43. 43. Transition through Gas09/03/10 43
  44. 44. Carbon Levy - initially on gas - funds Energy Pool investment in renewable Mega Watts 09/03/10 44
  45. 45. …and Green Deal investment in Nega Watts 09/03/10 45
  46. 46. An Energy Dividend is paid in Stock09/03/10 46
  47. 47. The outcome is that those with above average carbon fuel use ...
  48. 48. ….make a net transfer to those with below average use of carbon fuel
  49. 49. “If you want to keep a cow healthy, youdon’t regulate what comes out of it……”
  50. 50. “……you regulate what goes in….”
  51. 51. Energy Pools enable Carbon currencybased upon the intrinsic value of energy…
  52. 52. ..rather than a market in value-less Units of CO2 emissions, imposed by governments
  53. 53. No dollars change hands but transactions are priced against the dollar
  54. 54. The $ may come to be fixed against a unit of energy – an Energy Standard
  55. 55. This brings us to Energy Economics
  56. 56. Thank You03/04/10 56

×