FEC Articles

Why banks, corporations, land and natural resources should not be privately owned

We argue elsewhere that the economy would be much more productive, fair and sustainable if these assets were not privately owned. This article argues that such a situation - the private ownership of these assets - would not even arise if we had a proper grasp of what money and banking is; and if we created the appropriate banking system to match.

The Securitisation of Loans by a Commons Bank

Banking regulations are framed by the Bank for International Settlements and rubber-stamped by national governments. The BIS is in turn controlled by private banking interests. Part of the capitalist/BIS banking regulations require that loans have to be 'secured' by the lender and/or borrower (i.e. collateral provided.) The Fractal Economy Cooperative does not try to amass a huge amount of capital ('money in the bank' or money in the form of asset ownership); it gives the bulk of its revenue away to empower the members and the community that supports it. Since the Cooperative may not have a lot of capital in its initial phase as a bank, and since it has a policy of no collateral required on loans; how does the Cooperative (commons) bank secure its loans in accordance with BIS/capitalist regulations?

Global governance and the three factors of production

Supra-national organisations of an economic nature such as the World Trade Organisation and the International Monetary Fund dictate terms to national governments, and thereby control the global economy without effective participation from global citizens or civil society. Each of these organisations relate to one of the three factors of production (e.g. the WTO with Labour). The Fractal Economy Cooperative is designed to enable global citizenry to build a healthy and viable alternative from the ground up.

Capitalism, Communism, and the Fractal Economy

What we strive for in the fractal economy is neither Capitalism nor Communism. The essence of Capitalism can be summed up as the private ownership of the three factors of production (Land, Labour and Capital; or, in common parlance: land, corporations, and banks). Communism can be summed up as the communal management of production, distribution and consumption. The fractal economy is a 'third way' which combines common ownership of the three factors of production and the private management ('free market') of production, distribution and consumption.