Liquidity Network
Richard Douthwaite and others are volunteering on this project - unfunded as of August 2009.
The aim of the Liquidity Network is to address the Irish national liquidity problem - the slow down in economic activity triggered by the credit crunch.
Currently virtually all economic activity is powered by debt based credit - individuals and businesses borrow in order to finance their activities. Using the credit released by these loans they employ or do business with other individuals/ businesses who in turn do business with their suppliers and so on. There is thus a multiplier effect whereby the initial credit fuels transactions worth many times more than the value of the initial loan.
When the ’seed’ credit from banks dries up, as in the current crisis, the multiplier effect which normally helps to create liquidity efficiently acts in the reverse way and removes liquidity quickly.
FEASTA’s Liquidity Network aims to address this problem by creating an alternative ‘liquidity stream’ which is not based on debt.
The Feasta Liquidity Network group is hoping to launch the world's first debt-free electronic currency in County Kilkenny early in 2010.
Read more about this topic: Foundation For The Economics Of Sustainability
Famous quotes containing the word network:
“How have I been able to live so long outside Nature without identifying myself with it? Everything lives, moves, everything corresponds; the magnetic rays, emanating either from myself or from others, cross the limitless chain of created things unimpeded; it is a transparent network that covers the world, and its slender threads communicate themselves by degrees to the planets and stars. Captive now upon earth, I commune with the chorus of the stars who share in my joys and sorrows.”
—Gérard De Nerval (1808–1855)