confucianism, standards, and culture

In a previous post, I talked about how there are two different kinds of trust, and how important that is to understanding what needs to happen in the currency world. Here is a fantastic essay on confucianism technical standards and culture, which gets to the same essential pattern but in a different arena. The essay includes the following quote from Confucious’ Analects:

Lead the people with administrative injunctions and keep them orderly with penal law, and they will avoid punishments but will be without a sense of shame. Lead them with excellence and keep them orderly through observing [禮] and they will develop a sense of shame, and moreover, will order themselves.

This is exactly related the trust question. Do we organize ourselves through internal or external processes? Shame and punishment are both processes that can lead to social conformance. The first is internal the second external.

community currency and trust

When ever I introduce people to the idea of community currencies, I have experienced that the question of trust comes up again and again. This is reasonable, but I’m quite convinced that the breadth and depth of what trust is, is very poorly understood. Trust seems to be a word that, in the case of money, is hiding at least two forms of something that are actually quite disparate. I think this is because experientially, these forms of trust feel the same, but they arise from entirely separate circumstances. Some examples to get at this:

  1. What kind of trust does it take to ride a bicycle? It’s not trust that the bicycle will stay upright. If you are afraid of falling over, and you want to entrust that functionality to the bike itself, that would be misplaced trust. Instead of trusting the bike to not fall over, what we do appropriately trust is that that it won’t fall apart. The former kind of trust you can give to a trike.
  2. What kind of trust is necessary to write a post on the Wikipedia? This might sound like a funny question, but why spend your time writing something that anybody in the world could just erase? Your efforts are certainly not “safe” from being changed, deleted, or even edited beyond recognition perhaps into meanings opposite of the ones your intended. Just like the bike, the Wikipedia is not engineered for certain kinds of stability, in fact, like the bike, its value arises from an intentional decrease in stability, a letting go of a “security,” in this case, that my words won’t be deleted. The value comes from the fact, that by allowing some “insecurity” the whole endeavor will proceed more rapidly and be more adaptable (incidentally that’s exactly the advantage a bike has over a trike).

What I hope that these two examples reveal is that we can gain a sense of safety and security by a stability imposed externally, or by understanding and control achieved internally. The experience of safety and security is identical. The process by which this experience is achieved is radically different, both in terms of external mechanisms or infrastructure and internal education and knowledge.

In the currency world, the same truth is in play. What we want is safety and security. What we need to achieve financial independence is to get off our trikes and learn to use a new machine that is less stable, but infinitely more maneuverable and, fun to ride.

Yahoo gets into the community currency game

It looks like yahoo is getting into the community currency game with Yootles. A quick read of the their FAQ indicates a highly “economics” based approach. Also I don’t see an indication of the meta understanding that what’s necessary is to provide a playing field for people to create currencies, rather than just Yet Another Currency (YAC).

But, there is a very interesting quote buried near the end:

“My long-term goal at Yahoo is to change the way society thinks about group decision making. Step 1 is changing the way we think about money. I want people to think about money more the way computer scientists and AI resarchers and theoretical economists think about it — as a measure of people’s utility functions, which is where the name yootles comes from.”

An here’s another in answer to the question: Why not just use money?


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“But you’re quite right, it’s just another currency. Everything you know about money should carry over to yootles and if you spot any meaningful differences, we’re probably doing something wrong.”

Hmmm….

[tags]currency, yootles, community currency, money[/tags]

Currency “Equity” (Yet another community currency metaphor)

“Don’t worry, it’s a rental.” That’s what we say when we drive that Hertz car smack through a pot hole. The difference between how people keep up rented appartments and owned homes is a standard trope in our culture. We understand that people feel and behave differently about things that they own.
The same must be true for currency. If we create our own currency, instead of rent it from a unknown source, we will treat it differently. In fact, we will probably do a lot of things differently, just because it’s ours and we own it. Probably most importantly, we can begin to thing about the “value” of the currency in a different way. We clearly understand that the value of a home is not encoded simply in the number of dollars we’ll get from it when we sell it. It’s true value is in the home’s utility to us, here and now. Oddly, the same is true of a currency. Selling a currency on an exchange market is like selling a house. It shows one kind of value that it has; it’s value to people who are comparing the overal value of two separate currencies (just like someone about to by a house may be comparing the overall “value” of two houses). But a currency, like a house, has the utility value of those who use it, which is of substantially different form than its exchange value.
There are other things that might be different if we own our currency instead of rent it. Our relationship with debt might be different. For one thing, we would come to a deeper understanding of the connection between debt and money, and thereby be more healthy about it. The monetary experience is by its fundamental nature is the combination of debt and credit. The money I hold in my pocket is positive side of the ledger that elsewhere is written down as a negative number: a.k.a debt. It is not possible to have money without debt. If we owned our own money, the question of what kind and what amount of debt we want to have would become much more crucial to answer well and wisely.

Of course, there would also be risks. It’s risky to own a house. If it burns down, you lost it, not the land-lord.

What other kinds of difference will there be when we become equity stakeholders in our currency system?

[tags]currency, equity, debt, ownership, community currency, money, metaphor[/tags]

another currency metaphor

In my on-going quest for good metaphors and ways of thinking about the community/multi-currency world, an excellent metaphor came to me that is useful when talking about all this with programmers:

federal currency = global variables
community currency = local variables

Writing software with only global variables is not impossible, but their “liquidity” (i.e. the fact that they have “value” everywhere) is not an asset, but a liability. Of course an individual variable “loses power” by not being “valuable” everywhere, but its utitlity increases by being only have value in a given context.

The whole programming concept of “scoping” applies to currency!

[tags]currency, programming, scope, community currency, local variable, global variable, money, metaphor[/tags]

Phronesis and the Internet: the Process Revolution

I learned about the Aristotelean intellectual virtue of phronesis along with the related term episteme a few years back from Kathryn Montgomery in discussions about her book How Doctors Think. Episteme is the scientific rationality we are all quite familiar with. Phronesis is usually translated “practical wisdom” and is the kind of rational skill doctors and entrepreneurs have that is based on experiential knowledge and provides the ability to take the best action in particular circumstances. We are much less likely to have thought of this as a separate kind of rational capacity.
These terms came up again recently for me in the context of a collective intelligence discussion, which really set my mind going and has led me to some propositions and a conjecture:

Proposition: Whereas the printing press was an episteme engine, the Internet is a phronesis engine.
Alternative long phrasing: The printing press and the Internet are cognitive technologies that provide people and cultures with “mechanical advantage” or leverage for the development of the Aristotelean intellectual virtues of epistome and phronesis respectively.

It’s pretty easy to see how the printing press is responsible for the massive scaling of epistome into the general culture. It’s a bit harder to see how what the Internet is doing is the same for phronesis because our first viewing of the Internet (the web at least) has been that it’s just one giant sales brochure/advertising billboard/encyclopedia/etc, i.e. that it is a global source of knowledge. My proposition is that the key thing going on with the Internet is not access to knowledge, but rather access participation in knowledge processes. Three examples:

  1. Wikipedia. What really matters about it is not that we have access to a massive knowledge font, but rather that each of us can become encyclopedists and have to face the questions of ontological classification, neutral voice, objective/subjective reality, etc, that that entails.
  2. Blogs. A word perhaps for at least three information processes moved out mass culture: journalism, publishing, political analysis. Again the key shift is not that there is all this reporting/publishing/political analysis available for our consumption, but that that each of us can become journalists/publishers/political analysts.
  3. My own online-writing workshop. People come to the site thinking that they will get reviews of their writing which will improve it. They invariably discover that reviewing the work of others is how they end up learning to improve their own writing.

In each of these cases the key thing is the shift from access to static information, to active participation in an information process. The Internet is providing a “mechanical advantage” for putting people together in a place where they can jointly engage in the kind of information processes and processing that I think leads to the developing of phronesis.

Proposition: Economic revolutions occur when aspects of production are sufficiently amplified by cognitive technologies that new economic patterns of production come into being. Example: the printing press provided the intellectual infrastructure (a culture of epistome) for the expansion of the simple tools of production during the industrial revolution into what is called Capital in the classical economic sense.

Proposition: There is a new economic revolution under way, the Process Revolution, that is the result of the amplification of information and information processing by the cognitive technology of the Internet, and which is similarly bringing new economic patterns of production into being. These patterns are a new economic factor that can be called Information (capital I), which is defined (analogously to Capital) as the data plus the patterns and processes that use that data to organize production.

Proposition: New economic factors produce competing political systems that are answers to the question: who should own the new economic factor. Example: In the industrial revolution the question was: who should own Capital and the products produced by Capital. Communism proposes common ownership in the form of the State, and Capitalism proposes ownership by individuals.

Proposition: The new economic factor of Information is likewise producing competing approaches to answer who should own it. “Ownerism” which proposes the same answer as Capitalism (ownership by individuals, natural or corporate), and “Commonism” which proposes that its ownership be held in the commons (not by the State).

Proposition: Capitalism won out against Communism for three fundamental philosophical and systemic reasons:

  1. Capitalism was better at recognizing and building on individual dignity and potential.
  2. Capitalism is essentially decentralist because it pushes the intelligence out to the edges (see David Reed & Andrew Lippman’s paper on Viral Communication for details on this idea) where local information can be used to maximum advantage in decision making.
  3. Capitalism works with, not against people’s natural self-interest.

Conjecture: Commonism will win out over Ownersim because it shares with Capitalism the same first two properties as well as another property which is analogous to the third, namely that Commonism works with Information’s natural abundance and it’s tendency to flow everywhere, whereas Ownerism has to fight tooth and nail to keep it scarce and from getting out.

I’ve put together a more detailed presentation of these ideas (including their relation to money) in the form of a paper.

Viral Communications

I’ve just read Andrew Lippman and David Reed‘s paper on Viral Communications. It’s quite insightful. Two things:

  1. I’ve said it before, but “Intelligence at the Leaves” for currency is what the open money project is all about. Currency is the centralized communication tool that needs to undergo the same process that Lippman and Reed describe in the paper, for all the same reasons. “In the end, viral communications transforms communication from something you buy to something you do. Independence of operation allows communications services to be separated from traditional service providers.” Substitute currency for communication.
  2. On a more speculative note: maybe the reason why SETI has not been successful so far, is that intelligent species move very quickly to low power Tim Shepard style scalable radio! So our current high power RF output is very naturally a short lived (i.e. 200 year) stage in technological development, that lasts only long enough for us to realize that we are better served with a very different pattern of radio usage, which is not detectable at interstellar distances. Assuming this is true, I’d gues that the probablity of catching another intelligence in the same 200 year window is not very high.

[tags]viral communication,viral,SETI,open money,currency,money,scalable radio,David Reed,Andrew Lippman,Eric Harris-Braun,p2p[/tags]