Wednesday, 18 July 2012

The concept moves closer to reality

This is the first time that I have made direct reference to how the concept of a trading sub-economy might start to form. I am not presenting this as a pitch or an endorsement of Spinglo, simply a illustration of practical possibility.

Synkronice is a European based business with ambitious expansion plans. Synkronice owns Spinglo. The two represent a combination of social media and network marketing.

The concept is to develop a fully-functioning social media site that offers

  • Exclusive goods and services to free members
  • The ability to collect Spinglo points for joining, inviting others to join, and activity on the site. In other words, the ability to earn trading credits
  • The opportunity to redeem those points against goods and services
  • A fully customize-able Spinglo site that users can design as they wish relevant to international, national, and local needs
  • A site that brings innovative new companies to market

Some of these features are already in place. Some are in development.

Spinglo does not offer members "miracle products", simply well-considered services, some of which have well-established demand

  • Coffee. Spinglo have developed a sub-business of Nespresso-type coffee products
  • FX trading
  • Acai juice
  • A fully-compliant share (stock) analysis service that gifts shares to subscribers
  • Social dating
  • Penny auctions
  • Health products

There is a lot more to come.

As this is an MLM, there is a lucrative compensation plan for those who choose to monetize the business by becoming Synkronize business owners.

One aspect of Spinglo that excites me is the fact that the accumulation of Spinglo points is easy and accesible to anyone. Activity is rewarded equally. This means  members in poorer countries can become as wealthy in points terms as those of us in the developed world. They will be able to

  • Redeem those points against our services
  • Eventually be able to trade those points with other members personally

This will create a form of micro-economy, the concept of which I have outlined in previous posts.

It is important to note that, at present, the Spinglo site is still undergoing constant development. However, anyone can sign up for free and start to accumulate points now.

Sunday, 15 July 2012

A fair exchange of value. Let us decide

In the era of networking and social media, making use of our established relationships and the relationships we are yet to make, is the viral and sustainable way to go. Imagine if you belonged to a group of millions of people all of whom could trade with each other through some some of credits.

If I wanted you to build me a website, there are several ways that the transaction could take place

  1. I pay you with money
  2. I offer you a service in return
  3. I pay you with credits
You would probably prefer the first option. However, there may be drawbacks to this. Firstly, it's taxable and subject to currency exchange rates. Secondly, and this is important, you might not trust the financial system that exists in your country. You might not want to bank money as you may already understand the global financial crisis and the risks involved. If your bank collapses, your money might go with it.

So, let's say that I teach English. I don't, but let's assume I do. We might come to an agreement that I provide English lessons to a member of your family in exchange. This option is practical provided that we both have something the other wants.

Lastly, as we both both belong to the same community, we agree a price expressed in credits (points, if you like). You build me the website. I transfer the points to you.  No money has exchanged hands, just a number of points that we feel equitable. Is there a risk involved in such a deal? I guess so, in that you might worry I might not pay. However, a system could be built-in that provides some sort of feedback and ranking. This is not difficult and already applies to auction sites.

With millions of individuals belonging to such a community, we start to have power. We can even negotiate with businesses and corporations to accept payment in points rather than money. If they refuse, we have have the option of dealing with those who will accept.

We have the capacity to decide what kind of trade and interaction we all have with other.

Thursday, 12 July 2012

I Am Not A Number

Information. We want information. 

And you know what? We give it freely. For free. And it is monetized by others.

Spain, meet Greece. Say hello.

Is a European Banking Union a magic solution to the eurozone debt crisis? Eurozone finance ministers in Brussels confirmed that European funds will provide direct support to Spanish banks.

€100bn of direct support!

These are loans from the European Financial Stability Facility and subsequently the European Stability Mechanism.

And guess what. In return the Spanish government will bring in tougher austerity measures, in order to cut borrowing below 3 per cent of GDP by 2014.

Oh, and Germany might have a problem convincing its taxpayers that the risk to themselves is worth it. No guarantee is expected of Spain.

So, the Spanish people get squeezed until their Seville Orange pips squeak, and the German people start to get all jittery about supporting failing Spanish banks.

Is the € going to exist much longer? I really do wonder.

If the whole of the population of Europe belonged to a community of people who could trade with each other outside of the € and other currencies, it wouldn't matter quite so much. An increasingly impoverished Greek could continue to trade within this alternative system, safe in the knowledge that his earnings capability within this system was equal to that of anyone else. His or her skills would have the same value as those of anyone else.

Sunday, 8 July 2012

my profile

All my rhetorical questions in one go

OK, so here we go. I am new to this blogging business, and would appreciate any advice offered.

Let's start by stating the obvious. I am not an economist! Having got that out of the way, I am free to avoid the academic ball-breaking that would inevitably take place on here, if I was.

My interest is in the practicalities of economic trading systems that stand apart, to a greater or lesser degree, from the mainstream. Is it possible to use existing technology to create a society in which individuals and businesses can trade without using money? I don't have a problem with money. That is, it has no emotional meaning to me. My concern is that many people appear to have a serious problem with the lack of money, and the lack of opportunity to create prosperity for themselves and their families.

Like many of you, I am fortunate by being born in the developed world. We do have opportunity. But things have changed. The current economic crisis has led many people to re-evaluate their situation. The Celtic Tiger has been castrated. Greece is undergoing economic and social turmoil. Portugal, Italy, and Spain are in serious difficulties.

As we live in a global economy, this impacts on all of us. It also impacts on us socially. The depression of the 1930's gave rise to political extremism and, eventually war.

Is it possible, as individuals, to remove ourselves from the chaos going on around us? Can we, as individuals, help each other to trade within a parallel economy?

You know, I think it is possible.

I shall re-visit soon to outline what I consider possible