Friday, September 26, 2014

Simple Money

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If your biological parents did not have any children then you cannot have any children either.  It is a simple natural law.   A single non biological parent can have a logical family relationship to a child but that is a logical parent\child relationship.  That is a beauty of a logical relationship.  It can be anything we want it to be and we have unbound imagination.  However, the logic of true and false determine the structural integrity of a logic design relationship and its value to do something in the real world.

Currently, money....the logic monetary system...is based on the logic that money is a child of debt.  A functional product of a parental debt relationship.  The contractual relationship between a debtor and a creditor.  The debtor has the power to create money out of nothing.  That power creates any given amount of money when a creditor accepts it in a secured or unsecured contractual agreement to pay it back.

Money as a child of debt is the absolutely wrong relationship on which to structure a monetary system.  The best structure is built on the fundamental logical that debt is a child of money.  Money is a parent object debt is only one of its children that money can create.

The New Monetary System Structure:
Also known as Real Money or Positive Money or Debt Free Money.

In the New Order Money System for money to be a parent of debt (one of many child things money can create depending on the use case) money has to pre-exist debt.  Money is created by the Sovereign State.  The U.S. Government.  It has that constitutional right.  It does not belong to the banks.

Transition from Debt money to Positive Money:  As existing debts are paid back that extinguish base money, the base money does not go out of existence but is serialized, digitized, and becomes real money.  The central record of all real money is maintained by the U.S. Government.  It is spent by the government into circulation.  Account institutions maintain customer accounts that relate customer ownership to every single digital serialized dollar unit value of one in the Digital Dollar data base.  All accounts that have dollar ownership have the right to transfer ownership of dollar units to any account they designate.  That is how money is spent,

Money does not change hands as it is spent.  Only the account ownership of a static unit dollar changes.  Any single serialized, digitized unit of 1 dollar always knows its current account owner and the chain of all past owners.

Eventually, all debts from the old debt money system are paid off and the debt money system ceases to exist.  Debt remains an economic component of the positive money system as pre-existing money is loaned.  Once a unit of positive money is created it never goes out of existence.  It may be held in suspense by the Monetary Control Authority for regulation purposes. New positive money  may be created and injected as necessary.

That is money.  Simply simple money.  Not a representation of debt.  Just a medium of exchange in which anything with a money value can be exchanged, even money in exchange for promises called indebtedness.  Debt is just one application of the medium of exchange certainly not the one and only reason for the creation and existence of all money.  


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