Open Capital - About
Strip symbolises the continuity inherent in a partnership - where
everyone is "on the same side". It also illustrates
the profound new approach within Open Capital to the underlying
assumptions in relation to the legal property rights which underpin
our current financial system.
live in a world of capital "absolutes" - where the "twin
peaks" of financial capital we know as Equity and Debt represent
"absolute"/permanent (ie infinite duration) ownership
of the assets and revenues of an enterprise while "Debt"
represents an absolute but temporary (ie finite duration) conflicting
claim over the same assets and revenues. Similarly
for a capital asset such as land, "freehold" is an absolute/permanent
claim over land while "leasehold" is temporary occupation
for a defined period of time.
both cases there is a discontinuity and conflict between these
two absolute forms of property right which we could imagine as
the two surfaces of a loop one side of which represents the "permanent"
property right and the other the "temporary" property
revenue-sharing "Capital Partnership" creates an entirely
new form of property right consisting of use of capital for an
indefinite period; ie a Capital User has the right of
use/occupation for as long as he pays a rental consisting of a
proportional share of the revenues produced from the Capital or
Capital Asset. In the Open Capital model any rental paid before
the due date automatically becomes Investment: while conversely
rental may be paid in Equity instead of Money.
a Capital Partnership therefore, revenues and capital are continuous
and the result is the single "capital surface" represented
by a Mobius Strip bearing the arrow of Time. Those interested
in metaphysics will observe in the "uncertainty" of
Open Capital the very profound concept in relation to the nature
of reality with which physicists have been wrestling for a hundred
years now since quantum mechanics was born.
economic theory - based as it is on such "absolute"
constructs and definitions - becomes entirely irrelevant when
viewed through the lens of Open Capital. We may therefore question
the basis in reality of all current strands of economics, and
particularly the prevailing neo-liberal orthodoxy.