Energy Dollars

Shann Turnbull

Shann Turnbull has a similar proposal to Nicholas Saunders' idea above, although in a more complex form.

The unit of electrical power output, the Kilowatt Hour (Kwhr) has much appeal as a universal unit of value for an autonomous community banking and monetary system.

'Money would be created by the owners of the power generator. It would be in the form of a voucher, or contract note to supply a specified number of Kwhrs at a specified time in the future'

Money would be created by the owners of the power generator. It would be in the form of a voucher, or contract note to supply a specified number of Kwhrs at a specified time in the future. These notes would be created and issued by the owners of the generator to pay for its purchase and installation. The value of notes which could be used for redemption in any given time period would be limited by the output of the generator. The notes which had a specified maturity date would represent the 'primary' currency. Such currency notes would be held mainly by investors, investment banks and banks. Commercial banks would hold the primary currency notes as a reserve currency in like manner to a bank holding gold or a merchant banker holding grain or other commodities.

Similarly, the commercial bank would issue its own notes which the holders could convert or cash-in to the primary notes or reserve currency, and which could be used to pay their power bills at the time specified. The secondary notes could be denominated in Kwhrs but without any specified redemption time. They could thus be used as hand-to-hand money in the community.

Some of the more important issues to be considered in comparing the suitability of Kwhrs or gold as a basis for a monetary system are set out in the table below:

Evaluation criteria Kwhr $ Gold $

Unit of value Kwhr Ounces/grams Quality testing Not required Density

Intrinsic consumerable value 100% 10%

Subjective value Nil 90%

Changes in consumption Related to total Little related to economic activity to economic

activity

Global availability Universal Haphazard Changes in production Related to Little related consumption to consumption Rate of change Relatively stable Less stable

Cost of production Relatively stable Fluctuates with by region and in region and in time time

Cost of storage Not required 1% of value p.a. Cost of insurance Not required 1% of value p.a. Cost of distribution Increases with Changes little distance with distance

Shann Turnbull, GPO Box 4359, Sydney, NSW 2001, Australia (tel 612 233 5340). The full pamphlet, Selecting a Local Currency, is available from Centre 2000, 2 O'Connell Street, Sydney, 2000, Australia, for Aus $1.50.


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