posted on Sep, 7 2010 @ 03:06 PM
Originally posted by LeftWingLarry
Originally posted by sourdiesel
reply to post by m0r1arty
There are other more efficient and better monetary systems out there. The one we currently have is obviously not working. Money should be a tool for
the people not a system that binds us to debt we can never repay.
What do you, personally, propose?
Instead of just shooting an idea out there, lets lay down the physics behind what would make a monetary system workable and efficient.
First of all lets start with the means of exchange itself. Even in a system of money there will be a means of exchange.
One of the properties of an efficient monetary system would be a means of exchange that is easy to carry around if need be and that it is plentiful.
One means of exchange that has both of these properties would be 1s and 0s, a electronic credit system. Now we have our most efficient means of
exchange. Now we have to figure out what it has to do.
The only way a monetary system can be truly workable is when the quantity of the means of exchange is balanced around the volume of trade that occurs
in the user society. But how will the quantity be decided? Any centralizing of this decision making process seems to only allow errors to occur. Such
errors are not to be allowed in such an important system. Since most of the past monetary systems have fallen due to error through centralization of
quantity control a new means of quantity control must be sought out.
Since the quantity must be balanced with the volume of trade there is only one real means of quantity control without error. This obviously means that
trade itself must somehow be in control of the quantity of the means of exchange. Since the quantity control cannot be centralized then it must be
widely available. The best way of doing this would be to make the quantity control process at least partly controlled by each individual transaction.
Now which process of quantity control is it going to be apart of, creation or destruction of quantity?
In this process transactions will be in control of the creation of quantity. Now through what method will the creation process take place? Perhaps the
creation process could occur by simply copying an amount of credits from the consumers credit account to the producer's account. With this there must
be limitations in place to prevent excess quantity creation to prevent excess inflation.
First the creation process would be limited by the amount or price of the individual transactions. In order for the transaction to take place the
consumer must already have a credit level in their account that is equal to or greater than the price of the transaction. Now we have the quantity
creation process, but what about the quantity destruction process?
With any monetary system there must be a quantity destruction process. Since the consumer's side is the one that creates quantity the producer's
side must be the one to cause quantity destruction. Of course quantity must be balanced with trade so therfore the process of destruction must be a
factor of time. With this, the time it takes to destroy quantity must be in line with it's creation so quantity will be destroyed at the average rate
of it's creation in the producer's account.
This would be the basic physics behind a workable monetary system with minimal error. Any errors would inevitably be worked out and cleaned up by a