Margaret Schaut

One more conservative viewpoint on the world at large.

Archive for June, 2010

Alternative Economics: The Round Robin Concept


Round Robin

The economic war we are in, like it or not, has many fronts. Not only must we do what we can to encourage our government and politicians to finally begin making economic decisions that benefit the PEOPLE instead of everyone else at our expense, we also desperately need to work on taking care of ourselves with or without them.

Exactly as occurred during the Great Depression, small business lending (and lending of all types) has genuinely dried up. By refusing loans, consolidation loans or capital loans, banksters were able to foreclose on properties and businesses and thereby become owners at mere pennies on the dollar. All the investment, inventiveness, creativity, work and development were virtually given away to ‘robber barons’ at the expense of the people and frankly, millions died of starvation and genuine hardship.

For many hard working people, simple access to cold hard cash was the critical factor in whether their businesses survived or were basically stolen by Simon LeGrie and his confreres.

Now we have seen that nearly all of our banking system is corrupt, and functionally even local banks are little more than conduits for the criminal wealth seizure that has been going on all over the world. As America is brought to its knees and turned into a banana republic by the international banking system, Americans still have a peculiar advantage in that we are some of the most hard-working, diligent, and creative people on the planet. We are accustomed to opportunity, we are accustomed to making the most of what we have. We are accustomed to having avenues that support our initiative and the freedom to pursue our happiness and well-being. As yet the spirit and soul of America hasn’t been destroyed. As long as we have that, there is always great hope and great opportunity.

One of the richest men I’ve ever met, a self-made man (self-described), explained to me the method by which he ‘began again’ when access to banks and ‘good credit ratings’ was impossible to him. In other words, he had to do this ‘under the radar’ much as nearly everyone will have to do today.

The Round Robin concept is actually very simple, and its versatile.

Four individuals who have a skill, talent or product who desire to go into business for themselves.

Each put into the kitty say $250. The kitty totals $1,000.

The four select the first person to receive a ‘loan’ of $1,000 to begin their business. As the business develops and gains income, the first person makes agreed payments back into the kitty.

When sufficient money has been paid back into the kitty, the second person takes the loan and begins their small business.

And so forth through the fourth person.

Now the variables.

Each of the four people could continue to contribute a monthly payment into the kitty to grow the fund more quickly, and the first small business to get the loan would make that additional payment along with their loan payment.

One person with money could front the beginning kitty which would still be available, one at a time, to four individuals. An agreed upon payment, say 10%, would be paid by each of the four for the use of the loan funds.

Each of the four could take minority ownership interest in each business as they receive loan funds, thereby increasing the commitment and promotion of the business by each of the four individuals.

Variants of this concept have been successfully used all over the world for small business start-ups. One variant is especially famous, known as the Grameen Bank.

Small independently financed locally owned businesses throughout the country, so small that they stay off the radar of the current crop of wealth thieves, and small enough to actually meet the needs of local populations, will be one very important way of keeping the genuine economy of the United States functioning at some practical level.

One final thought- I suggest you do everything you can to learn about money and how it works, and how it fails us. An excellent beginning is this particular movie “Money Masters”. If you haven’t seen this yet, be prepared for a LEARNING EXPERIENCE.

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