Swapcove - forget money exchange!

Money is often cited as being invented to overcome barter's shortcomings. But is it the most efficient form of exchange under all circumstances?

The answer is often no in the world of geopolitics. Last i heard, Iran was swapping rice with Thailand for Oil.

Thailand on Monday said it planned to barter rice for oil with Iran in the clearest example to date of how the triple financial, fuel and food crisis is reshaping global trade as countries struggle with high commodity prices and a lack of credit.

When the unit-of-account is undesirable, or in short supply, then you see more of this. also, if you happen to be the right people, with the right combo trade, it's pretty easy todo the swap.

On the micro-level, I wonder if priceless things are difficult to sell, but could be easy to exchange for something else of value. Have you ever had something you didnt want, didnt want to sell, but thought it still has value? perhaps swapcove.com is right for you!

I also wonder if the effect of turning your selling experience into a buying experience has large positive psychological effects. and perhaps exchanging stuff for stuff is twice as efficient as selling from some, and buying from others.

This san francisco start-up is exploring the question of how big this monetary exchange market failure is for people better served as swappers. If/when they find success, I'm sure the tale will be told about how they served the underserved pez-dispenser swap market, and grew from there. I wish them luck.

Democratic Banking Innovation

The form of money administration is as important as the form of money itself. Good Bank Finance, from the same area as Berkshire Bucks, is attempting to reinvent banks as a not-for-profit private bank, controlled by one-vote per shareholder, rather than one-vote per share, where all the profits (post some small dividend) are given to non-profits.

I wonder if there is too much innovation going on with this effort for it to be successful? all the same, i wish them luck and am excited for them to succeed. The banking industry needs more models based on preserving, rather than raping, the collective commons.

Art as Money

Consider this comment quoted on bloomberg:

“Old paintings are good stores of value,” said Beijing- based dealer Tian Kai, who attended today’s auction. “You know these works are one-of-a-kind and of superb craftsmanship.”

Store of Value describes market worth in the future, and is front and center in the conversation about money. A good store of value is something that you can sell for the same (or more) for something else considered valuable (like dollars, or in the case of inflation, a basket of real goods).

The dealer almost in the same breathe describes an old painting's monopolistic hold on its intrinsic value. Alas, if Van Gogh wanted to make a million bucks while he was still alive, perhaps he could have cut his hands off instead of his ear.

Not surprisingly, bankers have had a fascination with art since at least the pre-Renaissance. The Mendici's tried to buy their soul back from their usury ways and funded religious and enlightenment art in the process. And bankers today, not as concerned with saving their intrinsic soul, consider paintings as bonds to hang on the wall, to sell off in the future. Gold in vaults are just not as sexy a woman surrounded by beauty.

This all makes me wonder about the design of money, and stores of value. Art Price Insurance, a little derivative paper that guarantees a high price for your new art, could be a great hit with bankers contemplating auction bids. The confidence in the value of the art can be reaffirmed by the seller, if they (or someone on their behalf) was willing to take the art back in the future (perhaps at some annually discounted rate). Just like how a bank will take back your money at face value.

Could money have intrinsic design value built into it? Transform a masterpiece into not just a store of value, like gold in a vault, but a medium of exchange, through a limited print edition fractional reserve system, where art money is guaranteed in value by the gallery. I'm sure artists would get excited that they might finally be able to make some money. Literally. Now if they're only willing to cut off their hands to prop up prices.