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Money

Evolution of money

Aamna123
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Money

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  1. Money, Credit & Investment

  2. What is Money? • Money = Barter Network + Credit + Value Unit • Barter = Exchange of Value • Credit = Time to Pay allows “Split Barter” • Transaction 1 – (now) Buyer receives Value receiving Credit • Transaction 2 – (later) Buyer gives Value settles Credit • Transactions require a “Value Unit”

  3. What is Value? • Value can be defined only in relative terms • Value is the “Relativity of Desire” • Value is “Money’s Worth” • Value may be Static or Dynamic • Capital is Static Value • Money is Dynamic Value, existing only in the instant of exchange • Economics is the Physics of Value

  4. Creating Value • Assets or “Property” produce a stream of Value available for Exchange eg land, power plant, intellectual property • Individuals’ time = stream of Value as labour or services • Credit is not Value but a claim over Value • “Asset-based” Finance is Investment • “Deficit-based” Finance is Credit/Debt

  5. Conclusion • Community Assets give rise to streams of Debt-free “Money’s Worth” available for Exchange • Individuals’ Time constitutes “Money’s Worth” available for Exchange • Money’s Worth circulates on a Barter Network • A mutual guarantee results in a “Clearing Union” where “Time to Pay” is interest-free but with shared costs and shared defaults.

  6. Consequences • Money has no “cost” when issued • Public does not need to borrow to invest • A “National Equity” as well as a National Debt • Community Dividends from “Commons” assets in Community Ownership • A Society consisting of a Partnership of Partnerships ie neither Hierarchy nor Anarchy but “Synarchy”

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