united for freedom 

Free Market

The free market has traditionally been identified or linked with free enterprise however this creates problems because free enterprise cannot exist without the state. Indeed free enterprise is a creation of the state and is designed to operate in a market regulated by the state. So there is an inherent contradiction in linking the ideals of a free market with the free enterprise system. The free enterprise system creates a business model in which businesses act as discrete economic entities or sovereign economic players. Private enterprise needs the state to give private ownership existence, to protect it and to regulate it. It is physically impossible for people to amass capital, create products and services and market them without the state mediating disputes.  

It is well understood that barriers are inconsistent with the workings of a free market. However it pays the state to control entry. Monitoring and licensing precludes many of the issues that unregulated entry would create. Investors are more willing to pay for restricted permits. Business ownership becomes itself a product bought and sold in the regulated market. Politicians are supported because it is politicians that provide the service required to obtain a licence to operate a business. In the old days the Sovereign did not need or want a free market. The king allowed what business activity he wished and took from this what he thought he needed for the operation of his kingdom. It is the rise of the Middle Class and a new found ability to pay for property that created the politics that are associated with the financial markets.

Only one person may legally possess a car but two may hold a fiduciary interest in it. These legal entities have incompatible interests. The one needs the use of the asset the other wants the value. Exchanges transform the liability portion of an asset into equity. A   Exchanges represent the fiduciary interests of the borrower and lender.   Exchanges Exchanges are a conceptually coherent way to reconcile the competing interests created by debt. The fiduciary interests of two or more stakeholders can be secured by separate and none overlapping ownership positions in the Exchange. Instead of a creditor being owed $3000.00 by a debtor who may go bankrupt the lien holder obtains $3000.00 worth of equity in the Exchange. The lien holders financial position is secured by the community itself. The debt is taken over by the community and is covered by the stake an investor has in the assets of a community. The debtor now owes the community the outstanding balance. This is worked off over time with the assistance and cooperation of the Exchange. The community has a fiduciary interest in helping the debtor pay off the debt by providing a job or additional work as needed. This is why Exchanges are always able to advance credit and why jobs are so easily created in and by an Exchange. There is a mutual benefit to encouraging economic activity within Exchanges.

 

 

 

 

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