Peer to Asset Credit

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A proposal by Chris Cook:

"Any asset owner may – and many do - extend undated credit redeemable in payment for the use value of production of his asset, but this tends to be restricted to private businesses.

The innovation proposed is for owners of land & buildings, to issue undated credits redeemable in payment for rental value: eg a £1.00 Rent Credit. These would be sold or exchanged for value at a suitable discount, so that a £1.00 credit sold for 80p would give a 25% return. But the rate of that return would depend upon whether there is a complete building; the actual rental charged; whether there is an occupier; and whether he he is willing and able to pay the rental.

This is direct 'Peer to Asset' credit, and while there is a return, which comes from the use of the land and the capital invested in it, there is no payment of money for the use of money (compound interest). Such credit will out-compete conventional credit, because exchanging value for nothing is simply inefficient.

There is in fact a good name for such undated credit: Stock This described the instrument which underpinned the system of public credit which was first privatised by the (then private) Bank of England in 1693."