This blog are some of my thoughts on various issues.  Over the years I have studied and worked on algorithms and the uses of computers.  The company I founded Edentiti was established to give individuals control over their online presence.

With control comes the ability to do things and my current goal is to provide individuals with the ability to invest in building new assets with interest free loans.  This ability will give us a way to solve the “Tragedy of the Commons” because we can reward people who consume less of the commons with interest free loans that must be invested in ways to make better use of the commons.  This approach has the potential to change the way we develop our society and in particular it gives a route that is guaranteed to reduce greenhouse gases in the atmosphere to any level we so choose.

My linked in page

A short youtube on Energy Rewards

5 thoughts on “About

  1. Hi Kevin. Not sure if this is the best way to reach you but I have a question that you may be able to answer. Please indulge me, I am not an economist, just a man on the street!
    What would the effect on the economy be if banks charged simple interest instead of compound interest on housing loans? For the lender the repayments (even at 20%pa simple) would be at least 20yrs less and hundreds of thousands of dollars less. One would think that the money not spent on a mortgage would probably benefit the economy as consumer spending, or it could have other implications in terms of health spending or superannuation etc.
    My proposition is that (this is utopian dreaming of course) the government should provide simple interest financing of the primary residence, at say 20% simple interest. I Think it could only be the government that could instantiate this break from compound interest lending. That way there would be an eternal stream of government revenue connected to real estate sales at market values. Other banks could also offer the same financial product, if they want to have a part in the mortgage market (it is a capitalist idea)! I want to know if you think the economy overall would collapse as a consequence. Would the housing market collapse?
    I hope you have time to answer, thanks.


    1. Julian,

      Simple interest would stabilise the financial system. The housing market would become a true market once again instead of being a tool for financiers to gamble with other people’s money.

      The numbers that will work are:

      For the lender inflation adjusted 6% simple interest. Inflation adjusted means the amount still owing is increased each month by inflation.
      For the borrower 7% on the capital still owed and no interest on interest.

      This will almost overnight eliminate homelessness and make housing affordable for all.


    2. Julian,

      Apologies for not answering previously but I missed your comment. Compound interest is the problem. However, it is necessary to compensate investors for the loss of purchasing power caused by inflation. That is why it is necessary to increase the “capital” value remaining by inflation. What you are suggesting will work. My guess is that for houses 7% will be sufficient because there is very low risk.


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