Ground Zero is where you are now. Eliminating waste begins where you are now, at Ground Zero. Rational Exchange does not expect you to find investors, supporters or learn a new language or way of living. Waste Free living begins right where you live and you can build a business on this. Exchanges are a waste free business model that can be started anywhere by anyone for free because anything less is waste. This is the power of Waste Free living.

Anyone can start a business or generate economic development quickly and easily using Rational Exchange's business model. Rollars enable anyone to spend their way to financial freedom, an unthinkable idea with the standard business model (SBM).

Capitalism requires an entrepreneur to save or borrow enough to acquire the tools, equipment and space required for the business. This represents a large capital investment and entrepreneurs are fearful about losing it all, so they become parsimonious. This makes it very difficult to start a business and makes the failure rate high. Exchanges reduce risk and costs to the point of eliminating business failure.

 A transaction requires two people. Each person has something the other wants, so they make an exchange. This is called a transaction. In a transaction both parties win because both parties to a transaction give up something that has for them less value than the item they receive.

The transaction, as simple as it is has four distinct forms.

The Transaction:  informal

Informal transactions are found in civil society. People help one another in informal ways. People come and visit and help the host with setting the table and clean up. Friends help friends move, provide rides and other favors. There is no real accounting but if one person finds they are helping but not getting helped then this may make them less ready to help in the future.

The Transaction:  barter

Barter was the first attempt at turning the informal reciprocity of civil society into something more substantial. In the early days when the variety of goods was small barter was a way to increase the availability of products. But barter is inefficient and time consuming.

The Transaction:  mediated

The widespread adoption of coinage and later paper bills gave the economy a substantial boost but it had a weakness. The money created had to be administrated and this gave those who controlled the supply a substantial advantage over the users. Governments and banks both tend to abuse their power in the same way, through dilution of value. Governments dilute value through over-printing and banks by charging interest. Both methods produce inflation. There is still an even larger problem. The only way governments and banks can force people and business to pay interest is by ensuring there is a scarcity of money. This scarcity is what gives money sufficient value that people will pay a premium to obtain it.

The Transaction:  free market

The innovation of Rational Exchange was to eliminate the need for control or mediation. By rejecting the need for a Third Party to control the Money Supply Rational Exchange created what is the first true Free Market. Including the Free Labour Market. In Rational Exchange labour controls the money supply because the money supply is the key to the freedom of and in a market. 


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