Defining money

How to define REAL money

Let's start with Global Wealth Inequality.

Henry Ford believed, that if people understood our banking and monetary system, 'there would be a revolution before tomorrow morning'.

Unfortunately, Henry Ford did not tell us what people need to know for that revolution to occur ... but his prediction was certainly correct. ... In fact, the revolution he predicted is long overdue ... especially today.

Why?

Because ‘Small Pieces of Paper or Plastic’ (spopops) ... are not money.

Wikipedia defines money (emphasis added) as ‘... any item ... that is generally accepted as payment for goods and services ...’. In a barter economy that’s mainly goods, but can also be a service ... in a market economy ... that’s almost always ... basically ... worthless ... spopops.

The question is, therefore, what deserves to be defined as ‘real money’ ... and the answer is actually quite easy ... because the economic law of 'Supply and Demand', which determines prices, reflects the ancient practice of goods and services ... barter.

One should never look back ... except to learn. - Anonymous

50 years ago, a former trade store owner in Papua New Guinea lived for several years right next to a weekly market where a coastal tribe and an inland tribe still bartered beetle nuts, bananas, coconuts, fish, crabs, string bags, grass skirts, etc., silver coins from the past ... and ... some spopops ... all items, which, according to Wikipedia, would qualify as money ... but not as a useful definition of money.

Looking back on that experience recently he came to a ... for him ... profound realization:

In a barter economy, EVERYONE can always ‘pay’ for what they want to ‘buy’.

If ‘A’ wants bananas and ‘pay’ with beetle nuts ... and ‘B’ wants beetle nuts and ‘pay’ with bananas ... and ‘A’ and ‘B’ agree on 'prices' ... a barter deal, where both ‘A’ and ‘B’ get what they need, want and demand, is very efficient and straight forward.

However, bartering can also be very inconvenient, inefficient and more often than not, impossible ... because, to conclude a barter deal, barterers always need to have what the other wants ... it is a dilemma referred to as the 'double coincidence of wants'.

For example:

If ‘A’ wants bananas and barter beetle nuts ... and ‘B’ wants fish and barter bananas ... and ‘C’ wants beetle nuts and barter fish ... barter deals are not possible.

The introduction of spopops has not solved this problem ... to the contrary ... it has made barter more expensive ... but not easier and less difficult ... when barterers have to borrow spopops ... to ‘buy’ what they wanted to barter ... and ‘buy’ without any guarantee that they will also be able to ‘sell’ ... what they could barter.

The introduction of spopops has, therefore, not solved the problem of the 'double coincidence of wants' ... but, instead, allows spopops lenders to ‘earn’ ... incomes without work ... which should never be a feature of real money ... because it is the simplest definition of slavery.

However, there is a very easy, simple and profitable solution to those problems ... and absolutely no need for barterers to borrow worthless spopops ... to buy what they cannot barter.

If the ‘buying’ barterers ... instead of borrowing spopops ... offered to barter ‘Transferable Credit Notes’ ... and ... ‘Transferable Credit Amounts’ ... backed by the goods and services they want to barter ... for ... the goods and services the ‘selling’ barterers want to barter ... the 'double coincidence of wants' can always be satisfied ... and everyone can barter what they want to barter.

Using the above example:

‘A’ who wants bananas and ‘pay’ with beetle nuts ... gives ‘B’ a ‘Transferable Credit Note’ (TCN) for the ‘Transferable Credit Amount’ (TCA) of the bananas ... instead.

‘B’ who wants fish and ‘pay’ with bananas ... gives ‘C’ a ‘Transferable Credit Note’ (TCN) for the ‘Transferable Credit Amount’ (TCA) of the fish ... instead... and ...

‘C’ who wants beetle nuts and ‘pay’ with fish ... gives ‘A’ a ‘Transferable Credit Note’ (TCN) for the ‘Transferable Credit Amount’ (TCA) of the beetle nuts ... instead ... and everyone got what they wanted ... and ... bartered the goods and services they always wanted and intended to barter.

Obviously, a ‘Transferable Credit Note’ for a ‘Transferable Credit Amount’ ... backed by the goods and services ... the ‘buying’ barterer wants to barter ... is always worth more than the same amount of borrowed spopops ... those small pieces of paper or plastic.

In the following accounting example of the above scenario, ‘A’ barters a ‘Transferable Credit Note’ (TCN) for a ‘Transferable Credit Amount’ (TCA) of 10.00 ... instead of beetle nuts ... to get the bananas ... and immediately facilitates the other barter transactions ... and, in the end, everyone bartered what they wanted to barter ... GDP increased by 30 ... no one is left with a debt or a credit ... no inflation, deflation, stagflation or recession ... and everyone got what they needed, wanted and demanded.

In this example ‘B’ increases the TCA to 13.00 (fish is more expensive) and still has to barter more bananas ... while ‘C’ has a credit to spend or save ... again no inflation, deflation, stagflation or recession ... other than caused by supply and demand ... and GDP increased to 33.

All ‘A’ did to facilitate the other transactions, was to put a ‘Transferable Credit Note’ ... for the price of the bananas ... the ‘Transferable Credit Amount’ ... backed by the beetle nuts ‘A’ wanted to ... but could not barter ... into circulation ... and everyone ‘paid’ for what they wanted to ‘buy’ ... without spopops.

Obviously, ‘Transferable Credit Notes’ for ‘Transferable Credit Amounts’ ... backed by goods and services ... already on offer ... and immediately available for barter ... are, therefore, the closest possible ... to what could be defined as ... ‘real money’.

But if ‘Transferable Credit Notes’ (TCNs) and ‘Transferable Credit Amounts’ (TCAs) were to be defined as ‘money’ ... spopops are, obviously, not money ... or how would you define 'REAL money?

And, even if TCNs cannot be defined as money ... because they are credit notes - not manipulated spopops money ... and ... because they solve the dilemma of the 'double coincidence of wants' ... they also happen to make ... all ... to repeat, all ... and again, all ... in fact, EVERY barter possible.

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