united for freedom 


The human race initially lived in small social and extended family units called tribes. These tribes competed with one another but cooperated internally. They served as small, self-contained but autonomous economies in which exchanges between members of the tribe were governed by complex systems of obligations. Over time the successful tribes and their vassels grew into city states. City states became nations and while amalgamation at each level required better systems of administration the result of achieving this level of organization made centralization de rigeur and the autonomous individual a threat to public order.

Ethics is ultimately concerned with eliminating compulsion and obligation and in fact is a study of the degree of autonomy available to the individual. Personal and corporate autonomy is a desired end but autonomy often appears to conflict with the administrative methods of allowing it namely the hierarchial organizational structures of western style democracy. Democracy is about providing some degree of autonomy to the people and some degree of control over who weilds political power but order requires that the autonomy be contained within extensive legal systems. As societies become more complex it seems necessary the people give up some of their autonomy in the name of its protection as when War Measure Acts are implemented to protect the nation in times of crises.

There is a conflict between freedom and control or public order. The Free Market is a system whereby individuals are given freedom to manage their own affairs but when they make too many wrong decisions, as people are wont to do, bankruptcy results and this can create a lot of trouble and costs for the community. But too much control has its negative consequences also.

Bankruptcy is no an option when risk becomes internalized in an Exchange. Exchanges cannot fail, the failure of an Exchange is about as likely as one bank branch closing down on account of debt owed to another branch of the same bank or a department in a factory having to cease operations because it received too much credit from another deparatment of the same business. Exchanges eliminate the prospect of a creditor seizing the goods of a debtor as the risk is bundled in the equity of the Exchange.

Members of an Exchange do not benefit from creating internal debt because it is the Exchange that assumes all debt. Members are never charged interest on any credit issued because all costs are internalized in the Exchange. Exchanges are not made richer by extending credit to members nor are they made richer by charging interest because the wealth of the Exchange is the equity of the members. Because interest is not levied there is no hesitation about members seeking credit. Because credit benefits the Exchange there is no hesition in extending credit. 

Charging interest makes as much sense as dad charging interest on the money he gives to mother to pay the bills and buy groceries. 

Children do not inherit debt from their parents nor are parents indebted to their children. They help one another without requiring one make interest payments to the other. Helping one family member helps the family and when the individual helps the family the individual member of the family is also helped. The credit limit in a family is based on what the family has that it can give to the individuls in the family not on the perceived ability of the family member to repay the debt.



Please contact rational@rationalexchange.com for more information about setting up an Exchange in your town or city. Patriot Exchanges are a Charitable Foundation designed to combat the new face of communism.





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