TEM - Greece Currency

[pginvest]

https://www.youtube.com/watch?v=xsD1I9bOgEs&feature=player_embedded#!

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[unclescrooge]

Pledged against the euro. What an alternative currency

[apetersson]

accorting to the video its more a business directory to better utilize otherwise unused resources.
and gives everyone an additional line of credit.
the idea to limit tem holdings to 12000 is actually not so bad. this can only work if the people running the network know their users personally.

how do you create money from nothing? A: because we believe the creation of value, which means currency in your quesiton is the right of any individual and the right of the community.

since TEM credit is very cheap to aquire (zero intrest rates), i expect a TEM inflation and the 1:1 peg to dislocate quickly
i doubt many people will be willing to give 1 euro in exchange for 1 tem. of course there will be a flight to real values such as marmelade or olive oil maybe they will even have TEM hyperinflation.

so in essence. this town did already exit the euro, devalued their local currency and is therefore stimulating their local economy. its is just a precursor to what will happen in the rest of greece when they introduce the drachma again.

[unclescrooge]

since TEM credit is very cheap to aquire (zero intrest rates

Why is it always the worse idea that get the best publicity? :/

[Deafboy]

I don't think it's a BAD idea. What they achieved is printing money without negative effects of inflation. There are some opinions that say Greece should came back to their own currency and inflate it to temporarily help the economy flow. However it's impossible to do as long as they stay with euro. This could be the right way to do it. But not as a solution to crisis, but as a temporary workaround.

[unclescrooge]

I don't think it's a BAD idea. What they achieved is printing money without negative effects of inflation

There's no such thing as a free lunch. If someone use printing money to get something, with a fixed parity with another money like euro, then it's at the expense of someone else.

[hazek]

since TEM credit is very cheap to aquire (zero intrest rates

Why is it always the worse idea that get the best publicity? :/

Because they are usually able to present the idea wrapped in some inspiring engaging fantasy which could never ever be true in a world where it's a fact that there is no free lunch.

[hazek]

I don't think it's a BAD idea. What they achieved is printing money without negative effects of inflation

There's no such thing as a free lunch. If someone use printing money to get something, with a fixed parity with another money like euro, then it's at the expense of someone else.

Lol would you believe I wrote the post above before I read this?

[unclescrooge]

hehe I believe you 

[bitcool]

hmmm... no one is allowed to accumulate more than 1200 tem, nice. 

[AnonymousBat]

hmmm... no one is allowed to accumulate more than 1200 tem, nice. 

So how does one save up to buy a car?
Or buy real estate?
Or engage in more complicated lines of production?

That's why it won't work in a more complicated economy. Accumulation of wealth isn't the problem, the problem is the government, regulatory rackets to benefit big business, taxing rackets to benefit big business.

[mystery2048]

TEM sounds like playground money

[Boussac]

It's just another LETS like thousands of others around the world.
Trouble is they probably never heard of bitcoin as a technology so they are using the good old central ledger.
That works for 800 users though..

Meanwhile I have had our paytunia mobile app translated in greek (for android phones).

[thezerg]

The problem with bitcoin and Greece is that you need some Euros (or some other currency) to get BTC!  A few people could offer services that can occur from a distance (e.g. web design), but this will be a significant minority AND once these people have BTC how would they spend them locally?  A vibrant exchange with a working currency is what is letting BTC bootstrap itself in other countries.  But these LETS are appearing because the Euro system is NOT working.

And reading between the lines, it seems like TEM lets you spend a little without having any so long as you write down services that you offer when you sign up.  Now we know why all these debt-based currencies exist; they start up easily!

And it seems like its basically a tax dodge; somehow I just don't think the TEM txns taking place in impromptu marketplaces are paying sales, income tax etc :-).  I have no idea how bad the taxes are in Greece but given the fact that the country is about to go bankrupt, I'm guessing they are very high.  In this case the government seems to be tacitly encouraging (or at least ignoring) tax revenue collection, probably because its mostly going overseas through an externally-mandated program to pay back loans.

[LoweryCBS]

I suggest that we go there and help ignite the economy by printing large amounts of TEM, then allowing larger initial deficit spending, perhaps up to 100,000 TEM. Then we could hedge any random borrower's failure to repay their debts by bundling multiple TEM loans (credit) into some type of financial instrument that could then be split into smaller chunks of defined risk (default) then provide liquidity by setting up trade (swaps) on some type of exchange.

I sense an opportunity to make some serious TEM in the process. Who's with me?

[notme]

I suggest that we go there and help ignite the economy by printing large amounts of TEM, then allowing larger initial deficit spending, perhaps up to 100,000 TEM. Then we could hedge any random borrower's failure to repay their debts by bundling multiple TEM loans (credit) into some type of financial instrument that could then be split into smaller chunks of defined risk (default) then provide liquidity by setting up trade (swaps) on some type of exchange.

I sense an opportunity to make some serious TEM in the process. Who's with me?

Lol

[DeathAndTaxes]

I don't think it's a BAD idea. What they achieved is printing money without negative effects of inflation. There are some opinions that say Greece should came back to their own currency and inflate it to temporarily help the economy flow. However it's impossible to do as long as they stay with euro. This could be the right way to do it. But not as a solution to crisis, but as a temporary workaround.

That is the silliest thing I ever heard.

If 1 TEM =  EURO then printing 1 TEM has the same effect on the economy as printing 1 EURO.  So either you print 0 TEMs, or the exchange rate decouples.  If the exchange rate decouples then you will see the inflation in printing TEMs.  If you somehow enforced the exchange rate via force/violence you would simply be adding inflation to TEM/EURO prices jointly.

[unclescrooge]

I suggest that we go there and help ignite the economy by printing large amounts of TEM, then allowing larger initial deficit spending, perhaps up to 100,000 TEM. Then we could hedge any random borrower's failure to repay their debts by bundling multiple TEM loans (credit) into some type of financial instrument that could then be split into smaller chunks of defined risk (default) then provide liquidity by setting up trade (swaps) on some type of exchange.

I sense an opportunity to make some serious TEM in the process. Who's with me?

Bernanke

[Realpra]

And reading between the lines, it seems like TEM lets you spend a little without having any so long as you write down services that you offer when you sign up.  Now we know why all these debt-based currencies exist; they start up easily!

We could do that with BTC too.

Give people a couple of BTC or so for free and have them sign up with their services. Then by contract they would have to provide said services in exchange of BTC.

The exchange would take ~10% of payments to cover risks (no service provided), if no losses occur this is simply given as new loans.

Services would be made to cost less than the average paycheck to bring back the capital through the exchange.

People would still sign up because A they get free credit and B they may not have a job so the "average paycheck" means little to them.


Not a bad way to create activity in your community if no one is working and no one has cash. Even if all you do is shine up your houses that could create real jobs/sales down the road.