Let's clear up the myths about a Resource-Based monetary supply.
1) We are only concerned about the money that changes hands in the REAL economy. For example, you may give your grocer $3.79 for a loaf of whole-wheat bread. Economists call this money M1.
2) In the Capitalist system there are multiple grades of money: M1, M2, M3, M4, etc. Only M1 money has actual value. You can use it to buy a frozen turkey, a smartphone, a bag of popcorn, etc. M3 might represent the supposed worth of 100 shares of Apple Inc. You can't use those shares to pay your grocery bill. Nor will your banker give you cash for them. You must go to the stockbroker who sold you the shares and ask him to disburse your holding. The broker will put your stock up for sale in the marketplace. You will get whatever someone is willing to pay for the shares, minus broker fees.
3) Another example of M3 is "funny" money or "monopoly" money. This signifies the implied value of a condo or stand-alone house. The money doesn't exist. It only represents the price an eager buyer is willing to pay for the property. After the sale, the property doesn't change for better or worse; it merely changes hands. There is NO apparent SOCIAL advantage whether the property is own by person X or person Y. The net asset value of the property is like Schrödinger's cat. The property (in terms of money supply) is zero until it is traded.
4) When we say let's move to a Resource-Based monetary system, we aim to trash the financial sector and regard all "funny" money as worthless. Henceforth, there will be no inflation or deflation in the value of our currency. The money in circulation will be worth the combined total value all resources, both natural and human. A comprehensive computer model will constantly take a census of our resources and then make an estimate of what those resources can produce in monetary value. The computer will issue new money as necessary. The "dividend" will be distributed equally to all members of our community.
1) We are only concerned about the money that changes hands in the REAL economy. For example, you may give your grocer $3.79 for a loaf of whole-wheat bread. Economists call this money M1.
2) In the Capitalist system there are multiple grades of money: M1, M2, M3, M4, etc. Only M1 money has actual value. You can use it to buy a frozen turkey, a smartphone, a bag of popcorn, etc. M3 might represent the supposed worth of 100 shares of Apple Inc. You can't use those shares to pay your grocery bill. Nor will your banker give you cash for them. You must go to the stockbroker who sold you the shares and ask him to disburse your holding. The broker will put your stock up for sale in the marketplace. You will get whatever someone is willing to pay for the shares, minus broker fees.
3) Another example of M3 is "funny" money or "monopoly" money. This signifies the implied value of a condo or stand-alone house. The money doesn't exist. It only represents the price an eager buyer is willing to pay for the property. After the sale, the property doesn't change for better or worse; it merely changes hands. There is NO apparent SOCIAL advantage whether the property is own by person X or person Y. The net asset value of the property is like Schrödinger's cat. The property (in terms of money supply) is zero until it is traded.
4) When we say let's move to a Resource-Based monetary system, we aim to trash the financial sector and regard all "funny" money as worthless. Henceforth, there will be no inflation or deflation in the value of our currency. The money in circulation will be worth the combined total value all resources, both natural and human. A comprehensive computer model will constantly take a census of our resources and then make an estimate of what those resources can produce in monetary value. The computer will issue new money as necessary. The "dividend" will be distributed equally to all members of our community.
| resource-based_monetarysystem.pdf |
RSS Feed