sustainable infrastructure finance

Sustainable Infrastructure Finance

Gwendolyn HallsmithCity of Montpelier, Vermont

• U.S. has paid $8.2 trillion in interest in the last 24 years, and the debt is $15 trillion. http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm

• France has paid 1.4B Euros in interest since 1973, and the national debt has increased 1.35B Euros since then. https://www.youtube.com/watch?v=P8fDLyXXUxM&feature=player_embedded

• In 2006, Canada had a national debt of 481.5 billion Canadian dollars, and had paid almost 1 trillion in interest since 1961. http://www.enterstageright.com/archive/articles/1006/1006cdndebt.htm

Without interest, there might not even be a national debt.

US Money Supply

Corporate Profit Trends

Household Debt

10 years

$ 100

$ 1,000 100 years

Currency with Positive Interest @ 5%/year

Value discounted to today:

Currency with Demurrage @ 5%/year

Demurrage = time-related charge (opposite of interest)

Value discounted to today:

$ 61.39

$7.60

$ 167.02 $ 168,903.82

Financial Viewpoint

Sustainability: The Monetary Engine

What do we invest in?

Physical Reality

Social and Commercial Purpose Currencies

• Social Purpose:– poverty eradication, – elder care,– Education, – community service,– GHG reductions.

• Commercial Purpose: – business loyalty– commercial barter– international trade

Commercial Barter Systems

WIR: Swiss Commercial Barter Network 1973 2003

Number of Participants 20,402 76,618Turnover - Swiss francs 196 million 2.521 billionBalance - Swiss francs 83 million 1.028 billion

Terra: standardized basket of dozen key internationally traded commodities & services

1 barrel Oil

10 lb. copper10 bushels

wheat1 ton carbon

emissionsEtc.1/10 oz Gold

4 x less volatility than US$

Fully backed=> Robust

Inflation resistant

Storage costs = 3.5% demurragepaid by bearer

Time Banks

Help at HomeWellnessHome RepairCompanionshipEducation Community

ActivitiesArts, Crafts, and MusicTransportationRecreationBusiness ServicesEinstein discovers that time is

actually money…

• Elder Care alternative

• Money and time commitment

• Complementary and Alternative Care

• Life Activities

The End?