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| crcl:credit_clearing [2025/12/05 10:07] – created - external edit 127.0.0.1 | crcl:credit_clearing [2025/12/10 18:09] (current) – external edit 127.0.0.1 | ||
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| In this trading loop, these 3 traders owe a total of £4300 (top), but by removing the smallest amount owed (£800) from each debt (middle), these traders now owe a total of £1900 (bottom) – reducing the amount of hard cash they need by £2400. | In this trading loop, these 3 traders owe a total of £4300 (top), but by removing the smallest amount owed (£800) from each debt (middle), these traders now owe a total of £1900 (bottom) – reducing the amount of hard cash they need by £2400. | ||
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| Banks have long cleared debts between themselves, instead of sending every single payment between different banks. | Banks have long cleared debts between themselves, instead of sending every single payment between different banks. | ||
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| Credit clearing happened at medieval trade fairs, so that merchants didn’t have to carry around gold and silver coins to trade, which would have made them vulnerable to bandits. | Credit clearing happened at medieval trade fairs, so that merchants didn’t have to carry around gold and silver coins to trade, which would have made them vulnerable to bandits. | ||
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| A group of friends on holiday might set up an informal central clearing system to clear a lot of the debts that accumulate during the holiday, rather than having to constantly find cash. | A group of friends on holiday might set up an informal central clearing system to clear a lot of the debts that accumulate during the holiday, rather than having to constantly find cash. | ||
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| John Maynard Keynes, who suggested an International Clearing Union at the UN Bretton Woods conference in 1944. | John Maynard Keynes, who suggested an International Clearing Union at the UN Bretton Woods conference in 1944. | ||
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| Small businesses are falling into a debt / cashflow crisis that clearing can help get them out of. | Small businesses are falling into a debt / cashflow crisis that clearing can help get them out of. | ||
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| In _[the End of Finance](/ | In _[the End of Finance](/ | ||
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| An economy based on clearing would insulate local economies from wider financial downturns. | An economy based on clearing would insulate local economies from wider financial downturns. | ||
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| Promotional video for Local Loop Merseyside, a city-wide clearing scheme in Liverpool. | Promotional video for Local Loop Merseyside, a city-wide clearing scheme in Liverpool. | ||
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| Within a multilateral set-off network, the algorithm might find small clusters of businesses that trade with each other regularly, that could have a shared ledger (record of transactions), | Within a multilateral set-off network, the algorithm might find small clusters of businesses that trade with each other regularly, that could have a shared ledger (record of transactions), | ||
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| ## Further resources | ## Further resources | ||
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| + | - [Mutual Credit Services](https:// | ||
| + | - [Local Loop Merseyside](https:// | ||
| + | - [Liquidity saving through obligation-clearing and mutual credit](https:// | ||
| + | - [History of credit clearing](https:// | ||
| - | ## Specialist(s) | + | ## Specialists |