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Financial Rehab Part 2 Chapter 3

Financial Rehab Part 2 Chapter 1

From this I concluded that for some reason, the powers that be were happy with things as they were. With hindsight there was a very good reason for not having a secure banking system, or wanting to stop money laundering. If a secure system had of been created, then none of the major financial scandals and the ensuing financial crisis would have been possible, because they would have been seen as soon as they happened.

So today we can rename “Clever Cash” and call it “Clever Jubilee (Jubbly)” instead.

I call the currency a Jubilee ( Joule Underwritten Barter Initiative Local Energy Exchange ) pronounced Jubbly in homage to “Only Fools and Horses” which coined the expression “Lovely Jubbly”.

Using a £ symbol and rotating it through 180 degrees makes it resemble a capital J in a more traditional font, which is the essence of a tangible barter currency in that it turns a fiat currency on it’s head!!
For the person using it, the Jubbly needs to be as or more attractive than a Pound to use and hold, so I will now list the major advantages.

Inverted Pound Symbol becomes a J

Inverted Pound Symbol becomes a J


Firstly the Jubbly is underwritten by a quantifiable amount of energy, One Jubbly is backed by One Kilowatt Hour of energy, i.e. 3,600,000 Joules.

Secondly the Jubbly allows the owner to make secure peer to peer payments, without having to log on and off of the internet.

Thirdly the Jubbly combines the benefits of a Current account, Loan account and Savings Account and Cash into one Account.

Fourthly the Jubbly is clever in that it knows who owns it, at any point in time, as well as who has owned it previously.

Fifthly the Jubbly pays the owner for holding it, in the form of discount over time. This is similar to interest but different, in that discount is not taxable, like interest. For example a Nectar Card gives you points that can be exchanged for goods, but you are not required to report your Nectar Points on your tax return. Discount is widely used in retailing, you do not have to report the BOGOF (Buy one get one free) either. You do not even have to report cash back deals, money off coupons etc.

The reason for this is that over time the Jubbly will be backed by produce, that is either in stock, or to be produced. This can be anything from Top Soil, Vegetables, Meat, Cheese, Petrol, Gas, Water, Labour and Electricity. All the items we need can be quantified in the amount of energy required to produce and deliver them to where they are wanted.

As a portion of these items are yet to be delivered discount is credited because of paying in advance. For example a discount of 4% per annum, would be attractive a reason for holding Jubbly.

If for example you were a farmer, you could forward sell a portion of your field of Wheat to obtain the Fiat Currency to purchase the seeds and contractor to cultivate and harvest the Wheat. Your debt would be denominated in Jubbly based on the energy equivalent of Wheat therefore protecting you from fluctuations in the Fiat Currency price of Wheat. You could expect to pay a discount of 6% per annum for the loan.

At this point the alert reader will have calculated that the difference between six and four is two. The two percent is the spread between Owner and Ownee which is the Jubbly that is part of an income stream that contributes to making the system profitable for the operators of the Joule Underwritten Barter Initiative Local Energy Exchange (JUBILEE pronounced “Jubbly”).

It is also worth emphasising that as stated earlier, there is no real difference between a Saver and Borrower, in order to save, someone has to borrow what has been saved, otherwise it will be left in a mattress to gather dust mites and earn no return. In order to buy, someone must sell otherwise there is no trade.

Jubilee System Layout


Most internet operations are conducted in Cyber Space, with a limited Earthly presence, So what is the point of having coins ?

Although to me this is obvious, I shall out of courtesy to the reader outline the answers:

Lifeforms do not live in Cyber Space, they live in the “Real World” down here on Earth.

Lifeforms need a habitat to live in and interact with.

Touching and interacting with the physical manifestation of money, whether Fiat or Barter, creates the sense of ownership and empowerment in a way that numbers on paper or a screen do not.

The physical form of Jubbly Coins will endear them to their users.

How do the coins pay for the cost of operating them?

Firstly as a marketing tool for the JUBILEE as described above.

Secondly as a marketing tool for the users. The increasing power of flash memory cards would allow members to advertise their goods and services on a flash memory in the Jubbly coin, that would be updated whenever a coin is used in a transaction so that offers and bids for goods and services are always current. When offers that are advertised are transacted, a commission is charged to the seller of the goods, otherwise the advertising is part of the service.

Thirdly as a means of Double Entry Book keeping, allowing reconciliation auditing as part of the JUBILEE operating system.

A Personal Transactor is used for making face to face transactions, allowing transactions to be made in remote areas, where mobile phone signals are weak, or there is not a landline. The concept is like having a portable safe. Jubbly coins are locked unless you have your Personal Transactor to open the safe. The other member with whom you are doing a deal will have his Personal Transactor to facilitate the transfer of ownership of Jubbly from you to him or her.

Because there are two Personal Transactors used in each transaction, the data from each Transactor is sent separately to the JUBILEE System Transactor, and verified when the data is compared and then validated.

At this time a Kilowatt Hour is priced at circa £0.10 so a J10 coin will be worth £1.00. To allow for future price fluctuations, a similar system to the penny would divide a Kilowatt Hour by a 100 to give a Jubbly a Jenny as the subdivision. A Jubbly price would therefore be written as J10.50j equivalent to £1.05p.
All change is good ? One of the tedious things about cash is loose change. As Jubbly coins have a memory, loose change is avoided. For example if you buy an item for J54.60j and tender six J10.00j coins, the change of J5.40j is stored in your Personal Transactor or the sixth coin or both, depending how the system is configured, e.g. if amounts less than J1.00 were stored in the Personal Transactor and amounts more than J1.00 were stored in the coin.

The flowchart above illustrates the transaction types allowed by the system. It is not difficult to increase the transaction types allowing secure transfers of Fiat currency to duplicate the available transactions, giving members the choice of using Barter currency and or Fiat currency in their transactions. This would make the system more attractive, particularly in the early stages, when there are less places to spend Barter currency.

Barter Currency Collateral.

The success or failure of a Barter Currency is determined by the quality of the produce backing the Currency, it will be scrutinised and tested by the users, any weakness will be highlighted and exploited by competitors. There are no shortcuts, or salient details that can be ignored. Accepting this paradigm ensures that over time, detail, efficiency and kudos will grow. In relative terms this is not difficult because current players are in the main, very sloppy.

Setting the standard to which other have to compete by defining “Good Practise”, that broadens and deepens over time, raises the expertise barriers to entry into the market place. As an illustration, with hindsight the deposit protection applied to Bank deposits rotted the entire industry, by removing the need for prudence in depositors when deciding where to park their money. This over time lowered industry standards and enabled the more degenerate institutions to prosper at the expense of the prudent institutions.

The criteria and objectives of a Barter currency are different to that of a Fiat currency. A Barter currency acts as a resource float for the Bread and Butter economy. It serves a geographical area defined by a River Basin, or in the case of larger rivers, that would sub divide into a network of “Tributary Basins”. There would also be the population size dynamic that combined with the geography will define the optimum size for the most energy efficient Bread and Butter economy. At present optimum is not known, but if you used a figure of 100,000 then the U.K. would have some six hundred BABEs.

Just because you are aiming to become more self-sufficient, does not mean becoming insular. There is always the optimum balance dynamic that allows you to specialise and trade over a wider area for mutual benefit.

The current system favours having a few big players, who by their size dominate the market. This is as true in the City of London as it is on the High Street. When the Family Silver was sold off in the 1980s by Maggie and Co, there was plenty of talk about introducing competition, in the Utilities for example there were initially twelve energy companies, but takeovers had reduced the “Market” to an Oligarchy of four with a large proportion of the power over these companies held by their parent companies overseas, within less than twenty years. As usual nobody said Boo to a goose.

If you are going to try to create six hundred LEAF BABEs, then there needs to be in your structure, a means to prevent them morphing over time into something that was not intended.

The John Lewis partnership in it’s recent battle with the Carpetbaggers, remained intact, up to a point. The partnership structure was preserved but expansion was planned and implemented. In my humble opinion, they failed to take into consideration, the balance between infrastructure and expertise. While it may be relatively easy to expand locations, Expanding a quality labour force to go with it takes time and effort. The expansion into Retail Parks and Motorway Service Stations, was also a move to unfamiliar ground, where the competition is more familiar with the “Tradescape” than they are. This may well invite another visit from the Carpetbaggers in the not too distant future.

A market is a sensitive place, and it works properly when there are many buyers and sellers who are of a size that does not dominate. A good example from nature is a forest, if a forest has 10,000 trees of varying sizes, from saplings to mature trees, it works well. If however it is dominated by our four giant trees, casting a giant shadow across the land, the other trees cannot develop to their full potential, so the forest does not work well. This is why in nature, there are limits to the size that trees can grow to. You never see a natural forest with a few giant few trees that dominate the landscape.

Markets that function well are similar to a natural forest, in that the players are within a range of similar financial sizes. The same principles are applied to casino games where the tables have maximum and minimum bet sizes, allowing High Rollers to play together on one table and the less Well Heeled on another table.

There is always a temptation among players to Game the system, as recent events in professional sport have demonstrated. The internet has been a valuable tool in this regard, allowing money to be wagered from multiple sources within seconds to favour a particular result. Unlike the finance industry, culprits have been caught, prosecuted and jailed. This demonstrates considerably more vigour and vigilance than the finance industry in response to wrong doing, and for considerably less money too. Criminal gangs are considered less systemically important, than those engaged in god’s work, no doubt !!

Before expanding this point on structure, it is important to illustrate how a Barter Currency would be constructed by looking at the ingredients that give tangible value to a Barter Currency.

The key to understanding a barter currency is that the currency transcends the goods and services that it is the medium of exchange for. To put it another way, a barter currency is the essence of what it represents.

You could have a barter currency that was underwritten by matter. To do this you would look at the periodic table of elements, note that there are about one hundred. You then take the proportion of the total represented by each of elements. From this you could work out the amount of each element in a kilogram of matter. Then you could name the barter currency as a KOM ( Kilogram Of Matter). Whatever you used your KOMs to purchase would be different in the proportions of elements it contained and so the difference between each compound would give a different intrinsic value, cost and price in terms of KOMs.

This is still a strange idea for most people to get their heads around. I look at the reasoning behind “Bitcoin” but to me sophisticated encryption and the finite numbers that define how many Bitcoins can be produced, defining its rarity and so its value, do not give me a sense that by owning a Bitcoin I would be owning something of tangible value. If Bitcoin went bust, would I own the unique number represented by my particular Bitcoin ? If the Pound Sterling went bust, would I own a proportion of the assets belonging to the State? No because the Bank of England is a private institution, and not owned by the state, so I own only the metal, well not really because if I tried to melt down the coins to get at the metal, I have defaced a coin of the realm and could go to jail.

If I owned some JUBILEE however, and it went bust I would own the collateral that the JUBILEE was underwritten by, thanks to the law of Bailment. A JUBILEE representing some of Farmer Browns potatoes for example. Hence my preference for owning something tangible, which you do with a Barter Currency.

Examples of Barter Currency Collateral.

As the aim is to make the Bread and Butter Economy of a local area, more self-sufficient and sustainable, the JUBILEE collateral which underpins the local economy is underwritten by local activity, but also trades with other LEAFs as well as nationally and internationally. No two LEAFs are the same because of terrain, climate, location, population distribution and national governance. There will be similarities in the composition of JUBILEE collateral, which, for want of a better word we will call Flavours.

It is worth considering at this point a bit of history. When North America was colonised by the European immigrants and then broke away from their European masters it was a collection of States that were to most intents and purposes independent. These States multiplied in a Westerly direction and took control of their territories with the aid of weapons superior to those of the indigenous populations who were considered savages.

This behaviour is not unique to North America and spread to all continents from 1500 through to 1900, this military prowess was then consolidated through the last century, with the aid of financial prowess and brings us up to today.

The United States of America is a good case study to observe the concentration of power over time from the many to the few. The fifty states over the last century gradually lost power to the central federal authorities. At the same time the growth and influence of corporate activity also became centralised draining wealth from local economies. The ruling states are the centres of power California for media, New York for finance and Washington for politics, creating what we in Europe would call a Troika. To follow this model leads to the creation of dependency and servitude.

None of this is new, and seems to lock human endeavour into a never ending cycle that prevents evolution, progress and harmony in the human condition. Even the Military Industrial Complex, fails to evolve, using more and more resources just to stay where it is.

Barter collateral represents resources in our JUBILEE currency, that is designed to enable a Bread and Butter economy to function. So let us look at examples after this seemingly obscure preamble.

We humans are not the only Lifeforms on the planet, we share the Earth with millions of other lifeforms from bacteria to Blue Whales. The interactions between all lifeforms create the habitat and the natural infrastructure that makes life possible on Earth. This natural infrastructure is not counted in our economy, even though the components of natural infrastructure from Fish to Forest are regularly plundered.

The parallel situation in our economy is summed up by considering the recent spate of metal theft, where metal of value was stolen from Church roofs Railways and Roads, causing them to malfunction.

This highlights the hypocrisy in our approach to natural resources when we act as thieves, but are protected and encouraged by our laws to behave as criminals.

If we are to redress this imbalance, then a standing tree, alive and functioning in many environment enhancing ways needs to be included in our economic system as a valuable wealth creating asset that maintains our habitat rather than just a piece of wood from which to make a newspaper or some garden furniture.

The study of Star Planet Energy Flows (SPEF) which although somewhat fragmented between different disciplines, would give us a guide to the balance of energy use by the natural world and our man made portion.

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Financial Rehab Part 2 Chapter 3

Financial Rehab Part 2 Chapter 1