KRISONOMICS 3 ECONOMIC MODELS

 MONEY CREATION


- In Full Barter system no money is created. 


- Money is created when there is Partial Barter and Partial Credit/Debt, or Full Credit/Debt.


- Currency is always Money, but Money is not always currency.


- All money is always credit/debt, including Currency.


- Gold, silver, commodity money is a form of Full Barter.


- Currency is issued by the Government to settle Partial Barter/Credit/Debt or Full 

Credit/Debt transactions.


- Credit/Debt always includes Positive Interest Rate because Time is introduced in the Payment of Debt. TIME has uncertainty, hence Positive Interest Rate. The longer the pay period of credit/debt, the higher the uncertainty, the higher the interest rate.


- Government issued Currency is credit/debt with no expiry and 0% interest rate that you accept to settle the Partial Barter/Credit/Debt or Full Credit/Debt with another person.


- Banks are licenced by the Government to intermediate to settling Partial Barter/Credit/Debt or Full Credit/Debt transactions between people and businesses for a fee.



There are only 3 basic economic models


FULL BARTER 

Caveman economics, 1 chicken for 2 pounds of grain, No money created, no currency, no credit/debt.


SOVIET STYLE GOSBANK, CENTRALLY PLANNING

Creation and depositing of money into people's accounts. The Government would centrally plan all economic output, GOSPLAN, thus distributing currency to people to claim goods and services centrally planned and produced. This system was created by Vladimir Lenin based on Karl Marx ideology. Marx copied the idea from Christian Communities mentioned in the New Testament and Letters, which would distribute and redistribute goods and services based solely on their needs, not wants. There is Currency created by the Government, but there is no Credit/Debt created.


DEBT BASED CAPITALISM

Recorded first with Mesopotamians who used Temple Tablets as Currency to note down Debt. The King and the Temple Priests guaranteed the safety of Tablets. Mesopotamians created the first cities, hence the need to settle trade between its citizens, so the Government (King, Temples) took over the Settlement via Tablets which noted the content of the Credit/Debt. No currency created, but Credit/Debt created.


No other basic systems. Current Modern systems are all a combination of these 3.

Ⓒ KRISONOMICS 2021-11-03

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