sustainable infrastructure finance
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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?