Money

14:46 16/09/09

Scott Tomko said: Does anyone have input on what would make a currency 'good'?

I like that the ven's value will stay constant (a double cheese burger will cost the same now as in 10 years).

An issue I have with the dollar is that people (the fed) can print as much of it as they want, and don't have to tell anyone. There should be more openness with the Ven. The only way I can think of is it to make every transaction and account visible. That way people would know if something fishy was going on.

It seems that having it purchasable with dollars then would allow those same people to purchase as much ven as they want. I've come up with two solutions to this, neither one finished. Make the ven non-purchasable. Or, put a cap on the amount you can purchase.

Any input would be greatly appreciated.

6 remarks. Add yours. Latest remark.

1. Sep 26th, 2009
11:59

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Stan Stalnaker hi scott - generally in an open transparent economy you wouldn't put a cap on the amount a person could earn or purchase - its sortof like putting roadblocks on the highway. it also doesn't have anything to do with inflation - global currencies tend to inflate because of the underlying cost of goods. a cheeseburger in 10 years won't cost the same as a cheeseburger today because the underlying components, bread, meat, cheese, secret sauce - will have changed in price.

all economies come down to resources and the relationship between supply and demand for resources. ven just makes the trade of resources more efficient, and eliminates profit by allowing the transactions to go peer to peer. For people to trust Ven and use it, there has to be underlying value - that's why the Pavilions only accept Ven - you can always trade it in for a product in our store should you wish to stop trading in Ven...

2. Sep 26th, 2009
12:49

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Marosh Krc stan, i see scotts point as a good one. if the dollar inflates 10% annually, would u change price of 10 ven to 1,1$ next year or decrease the value of everyones earned ven by ten per cent by doing nothing?
ven is supposed to be a sustainable economic systems alternative currency rather than an ad-on to the existing monetary system. therefor i believe the possibility of purchasing ven is totally against the whole idea of ven.
am i wrong?

3. Sep 26th, 2009
12:56

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Marosh Krc btw. where goes the money from ven purchases?

4. Apr 27th, 2010
11:49

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Jonas Lagander It´s the interest that create most of the inflation because it increases the cost of production. Every company has a loan in a bank as you all know and the more they loan to produce the more the prices will go up. Inflation also comes from centralbanks lending to much new issued money to the private banks which then pumps that new liquidity up using the fractional reserve lending-system into "credit ballons" and lends it out to companies and the public sector. A lot of new interest burdening is put on the producing sector of the economy as well as a more money chasing after fewer goods (if the money supply wasnt too small in the first place of course - then it would be more balanced after the central bank´s easing meassures)

A basket of goods seems like a better idea than having Ven pegged to the dollar.

5. Apr 27th, 2010
14:34

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Stan Stalnaker Hi Marosh and Jonas - a couple of answers:

Marosh - money from ven purchases goes to purchase in cash the goods and services that are sold in Ven. Ven's value comes from trades within the system.

re: purchase - we tried initially to use Ven with no exchange rate and as an complete alternative currency, but from our experience, people needed a benchmark for value to determine how much ven was worth. This benchmark value is the exchange rate. While its not a complete panacea, Ven does a lot to promote sustainability within the community, builds value for those trading it, and does not earn interest - all big improvements. If the value decreases relative to the markets over time, we will look at it, but that would only be for new purchases (essentially re-weighting the basket) to keep it roughly pegged in value. Just like keeping money in your pocket over time, the value may decrease if it stays stationary. This is the time cost of money, no matter the system it circulates in.

Jonas - we've actually just done this about a month ago - see http://hub.vg/venfloat - Ven value is now made up of a combination of currencies, carbon emission futures and commodities.

We are trying to make Ven valuable and useful and really appreciate any ideas or contributions you have. The theoretics aside, we are trying to create a simple system that lets people trade more efficiently and in a more sustainable, community driven way. My personal view is that after two years of this, evolving the system toward a better future is more reliable and impactful than ignoring or divorcing from the system in which we already operate.

Hope that helps. thanks guys!



6. Dec 29th, 2010
00:56

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R Garcia Peg to something of real value: Gold. Fiat currency will collapse within the next five years. Also, it would help if you created more velocity in your system to promote trade. Currency should be free and not a wealth reserve. Purchasing power can be maintained via the Gold peg. I think the current monetary system will try some version of this. However, I loath central banking/closed debt based currency systems. It is the source of many of our problems in the world today.