Neguentropic Money International Monetary System - NEMO IMS
= NEMO IMS (For NEguentropic MONey International Monetary System). By Jean-Christophe Duval.
URL = https://www.academia.edu/118271362/NEMO_IMS
Description
"NEMO IMS in brief NEMO IMS (For NEguentropic MONey International Monetary System) proposes a transformation of our monetary, banking, financial, accounting and tax institutions, with the aim of accelerating the processes of regeneration and preservation of ecosystems to guarantee a balance between the capacities of burden of the planet and the criteria of human society (Donut Theory). NEMO SMI is a conceptual revolution in the international monetary landscape, designed to guarantee the sustainability of life on Earth. This proposal reverses the traditional approach to money creation which is based on tangible market assets or debts, promises linked to the future exploitation of natural resources. Instead, NEMO IMS recommends the creation of new institutions that would issue debt-free money as income in return for commons regeneration activities. These activities will be defined and labeled by consensus, such as ocean depollution, reforestation, rewilding, protecting biodiversity, guaranteeing food security, etc. The idea is therefore to condition part of monetary creation on projects which ensure an ecological, social and economic balance through global labeling of these areas."
Discussion
Integration of Thermodynamics into the Monetary Concept
By Jean-Christophe Duval:
"NEMO IMS acknowledges that our economic system is based on the continuous exploitation of nat- ural resources. Our financial system is designed to support and amplify this extraction. We recog- nize that natural resources are not unlimited and that their exploitation causes multiple ecological and social harms, degrades biodiversity, and accelerates global warming.
The logic of ecosystem balances involves the idea of complementary opposites, but in our economic narratives, we only have "Yang"; we are missing the "Yin." Our monetary system is exclusively ex- tractive, based on a simplistic view of the economy that prioritizes immediate tangible benefits and the maximization of short-term profits. NEMO IMS posits that bank money is entropic because its primary allocation, which is market-oriented, demands profitability and thus generally supports ex- tractive processes that generate entropy.
Considering that the current monetary system is predicated on an unlimited increase in debt—and that this infinite debt is backed by the promise of infinite exploitation of natural resources—NEMO IMS proposes a solution for debt relief through processes other than extraction: solving financial debt with regeneration and preservation of the commons.
Traditionally, we view money as a tool that simplifies exchanges and is backed by objects of desire. NEMO IMS suggests that part of the monetary issuance be conditional on the realization of collec- tive activities that are approved by a broad consensus and a global label.
Responding to our ecological and social challenges will require us to move beyond the concept of a single banking currency with an extractive vocation to establish a new global institution for the is- suance of a currency backed by activities that regenerate the commons. If banking currencies are extractive (entropic), we must envision a dual system with the introduction of a currency that regen- erates (negentropic) as a complementary opposite, bringing balance to the entire system.
Contrary to the conventional quantitative theory, NEMO IMS explains that money must be based on a permanent "dynamic" flow between the moment it is created and the moment it is destroyed. En- tropic and negentropic money will be distributed by two institutions with different vocations—one extractive associated with banks and the other regenerative. They will operate under the same ac- counting framework, allowing the negentropic currency to generate reflux (accounting neutraliza- tion of the currency and the debt) on the debts of the entropic currency. In this way, we can reduce the burden of our financial debts while simultaneously addressing our debts to nature."
Debt-Free Money: A Weapon for Massive Debt Reduction
By Jean-Christophe Duval:
"The concept of a debt-free currency aimed at preserving the commons recognizes the fundamental value of planetary ecosystem services. NEMO IMS proposes backing these services with a global label, quantifiable in monetary terms. Thus, regeneration and nature protection should generate in- come in a currency dedicated to regeneration.
We have already noted that bank money is a matter of accounting, not physics. Furthermore, there is nothing inherently magical about money creation, just as there is nothing magical about accounting itself—there are no spells here, but there are conventions.
Employing a debt-free currency could simultaneously address our financial debts and those owed to nature, hitting two targets with one stone. We've observed that monetary creation by banks in- evitably increases alongside debt, a consequence often misunderstood due to the complex account- ing implications of compound interest and tax evasion. By our own oversight, we have fallen into an accounting trap; escaping it will require devising an accounting stratagem.
This stratagem involves issuing a debt-free currency earmarked specifically for projects that pre- serve ecosystem services and regenerate the planetary commons. Like a domino effect or trickle- down process, introducing a currency without associated debt could facilitate the reflux of debts, similar to international trade processes where foreign currency conversions into national currency cause a reflux on our debts.
Countries worldwide face similar dilemmas: excessive debt, unemployment, inflation, recession, crises of meaning, and the urgent need to regenerate planetary commons, preserve biodiversity, mit- igate climate change, and maintain peace. Recognizing that none of the traditional economic solu- tions can address these issues may lead nations to accept that only a global and coordinated ap- proach can provide relief."
(https://www.academia.edu/118271362/NEMO_IMS)
Policy
Institutional proposals:
The GAIA Economic Symposium
By Jean-Christophe Duval:
"The GAIA Economic Symposium is an international institution established by the participating nations of the NEMO IMS project. It may affiliate with the United Nations or choose to remain radically independent as a geopolitical decision. Comprising experts and elected officials from all participating nations, its governance model will be both organic and democratic. The Symposium's primary mission is to transition away from fossil fuels and extractivism and to credibly support the preservation of life-sustaining conditions on Earth.
• The creation of the GAIA Economic Symposium marks a departure from policies and the traditional, ineffective ecological approaches. Through its ecological and social conventions, the Symposium aims to reduce the influence of fossil fuel and thermo-industrial lobbies and other activities that are detrimental to sustainability, balance, and harmony on Earth.
• The Symposium will have the authority to issue monetary drawing rights, known as “NEMO Green SDRs,” which will serve as payment for activities linked to the commons. These rights will be convertible at fixed rates into national currencies via NEMO SWIFT and will be immediately destroyed upon conversion.
• Democratic processes within the GAIA Economic Symposium will determine the income levels denominated in NEMO Green SDRs in exchange for extra-financial activities.
• The Symposium will conduct impact studies and establish ecosystem indicators. Its governance will operate on both Top/Down and Bottom/Up models, as accurate data and reports from local to global levels are essential. It will also develop specifications for service providers, issue calls for tenders, and select companies for these intentional contracts.
• In collaboration with central banks and other global institutions, the GAIA Economic Sym- posium will determine the annual allocation of NEMO Green SDRs to each nation based on macro-prudential, demographic, economic criteria, national monetary policy objectives, and their levels of debt.
• The institution will rigorously check the quality of services to ensure the NEMO IMS con- cept remains unblemished by cheating, corruption, or improper business dealings, thereby maintaining its moral and political integrity."
(https://www.academia.edu/118271362/NEMO_IMS)
The NEMO Green DTS
By Jean-Christophe Duval:
"Unlike the IMF's Special Drawing Rights (SDRs), which are a global currency distributed in return for debt, the NEMO Green DTS is a temporary, or even ephemeral (because immediately converted into national currency), currency distributed as income in return for recognized commons regeneration activities and their contributions to preserving ecosystem services and sustainability. Unlike traditional money philosophies, NEMO Green SDRs are not backed by materials or marketable goods and services, or debts. Instead, they represent the essential basis of everything ; if the com- mons collapse, so does this foundational base and, consequently, the entire economy.
• Unit of Account : NEMO Green SDRs are units of account backed by urgent and essential activities that are overlooked by standard market mechanisms. Monetizing these non-market activities eliminates the need for future taxation, freeing us from the "economic Sisyphean myth" previously described and providing governments with greater budgetary flexibility.
• Purpose and Verification : NEMO Green SDRs compensate for extra-financial activities and the regeneration of the commons, such as ocean depollution, reforestation, biodiversity preservation, and fulfilling UN sustainable development goals. These services are defined by precise specifications and undergo rigorous and impartial verifications.
• Conversion and Income : NEMO Green SDRs are converted by NEMO SWIFT into national currencies at a fixed exchange rate and are delivered directly as income to the demand deposits of service providers, similar to conventional international trade operations.
• Ephemeral Existence : The existence of NEMO Green SDRs is ephemeral, only spanning from their issuance to their conversion/destruction by NEMO SWIFT. They can be considered as units of account issued by the virtual country of the GAIA Economic Symposium and are destroyed upon conversion into a service provider’s national currency, much like other currencies during foreign exchange or international trade operations.
• Exchange Rates and Distribution : Fixed exchange rates between NEMO Green SDRs and national currencies follow the NEMO Exchange Standard (parity 1:1). These rates also de- termine the exchange rates between the NEMO Exchange Standard and national currencies. The quantity of NEMO Green SDRs distributed annually is decided democratically by the GAIA Economic Symposium, central banks, and national governments, and distributed ac- cording to national quotas. These criteria consider the demographic situation of nations and the urgency of transforming their productive infrastructures, proposing growth for emerging countries and strategic degrowth for developed nations."