Parallel Capital System
Written and presented by David Wallach � at the Norwegian Philosophy
of Money Festival
am very pleased to be part of such a diverse group of interesting
individuals; monetary reformists, community service advocates,
alternative currency proponents, economists, monetary visionaries
Each participant gathered here is helping to solve complex monetary
issues from different directions and perspectives. This is necessary
and as it should be. Our strength is in our diversity; collectively
we can and will help to make the changes that will result in a more
equitable worldwide monetary system.
Today I want to report on a Parallel Capital System that monetizes
Excess Business Capacity which has evolved and been developed over a
period of some 40 years by the Modern Trade and Barter segment, of
the alternative currency movement.
Modern Trade and Barter clearing network providers have created a
system that monetizes excess business capacity, an unrecognized
asset, which has been historically wasted and makes it an important
tool for the capitalization of cash deprived businesses.
Worldwide more than 400,000 businesses are currently members of
Modern Trade and Barter clearing networks. Last year those member
companies recovered over 10 billion Euros in annual revenues from
underutilized and heretofore lost and wasted inventories and excess
business capacities. These new revenues are being used to capitalize
businesses and create employment.
Technology has made it possible for Modern Trade and Barter clearing
networks to track and account for sales and purchase transactions
between member companies. These clearing networks are providing
essential capitalization for member businesses, with mostly interest
free loans that fund general business expenses and projects.
The majority of the businesses participating in the clearing
networks are small to medium-size companies. They use their new
found currency to buy and sell goods and services within their own
What goes unsold is excess business capacity; whether it is in the
form of empty seats in restaurants, unsold hotel rooms, media, and
airline tickets. Unused hours in medical, dental, attorneys,
accountant�s offices or any and all other unsold goods and services
that exist within the economy. There is not a single business sector
that does not have significant excess business capacities.
Globally, on an annual basis it is estimated that there are
trillions of Euros in excess business capacity that are in general
being wasted and ignored.
At the same time worldwide there is a huge and tragic Surplus of
Human Resources that is measured in the form of underemployment and
unemployment. This is especially true in underdeveloped countries
where unemployment reaches upwards of 50 to 70 percent. Even in more
developed countries unemployment is between 10 and 30 percent.
We can view excess business capacity as an asset and unemployment
and underemployment as a liability.
Worldwide there are trillions of Euros in excess business capacity
available. Millions of jobs will be created when those trillions of
wasted Euros are put to work capitalizing and more fully funding
business. The role of business is to create employment, but
businesses need capital to grow and hire and that capital is
available right now in real time.
By continuing to expand the monetization of excess business
capacity, substantial gains will be made in consumption, production
and employment. Thereby raising the standard of living and providing
for better worldwide nutrition, education and health care.
(This paper was presented on June 7, 2009, to the Norwegian
Philosophy of Money Festival by IRTA President David Wallach,