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Meaningful Metrics for a Smart Society
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Date: 2017-10-23 Page is: DBtxt001.php L070-MX-MONEY-CURRENCY

MONEY / CURRENCY
Medium of Exchange / Store of Value / Essential economic measure

RELATED TVM WEBPAGES
There is a lot of duplication in these pages, and a significant amount of incorrectly places information. A process of clarification is in progress.
L0700-CFC-CREATED-FINANCIAL-CAPITAL
Money / Currency is central to Financial Capital and very important for the efficient functioning of the real economy, but it needs to function as a medium of exchange to facilitate transactions and trade and not be an economic profit center in its own right. Money has historically had a role as a store of value, but cannot function as a value adding activity in its own right. To the extent that money / currency services are profitable, these profits are only possible because of transfers from activities that have produced real tangible value adding.
Open L0700-CFC-CREATED-FINANCIAL-CAPITAL
L0700-CFC-Money Open L0700-CFC-Money
L0700-IS-BANKING-FINANCE TO ADD
SOCIO-ENVIRO-ECONOMIC TRENDS ... FINANCIAL ECONOMY
These trends have been in place for many years ... but now dominate the system
Open L0700-PP-FINANCIAL-ECONOMY
BANKING AND FINANCIAL SERVICES
A critical lubricant for the economy ... but neither the engine nor the fuel
As much a constraint on progress as enabling progress
Open L0700-SI-BANKING-FINANCIAL-SERVICES
L0700-SS-FINANCE TO ADD
WRONG-METRICS
Modern technology makes wrong metrics more dangerous than they have ever been before
Open L0300-Wrong-Metrics
Alternative Finance
A growing number of ideas ... mostly impractical or worse than what already exists
Open list0300-Alternative-Finance
list0300-Banking-Finance-Money Open list0300-Banking-Finance-Money
list0300-Finance Open list0300-Finance
list0300-ForeignExchange Open list0300-ForeignExchange
list0300-Microfinance Open list0300-Microfinance
list0300-Monetization TO ADD


BoE-Money-in-the-Modern-Economy-An-Introduction 2014
Bank of England Paper ... 2014 ... Money in the Modern Economy
'http://truevaluemetrics.org/DBpdfs/Money/BoE-Money-in-the-Modern-Economy-An-Introduction 2014.pdf'
TPB Note: The drop in seigniorage since 2010 is remarkable, especially when there has been a massive increase in the balance sheet of the BoE (and other Central Banks) and the huge increase in 'money' circulating in the global economy. Given this, it is all the more noteworthy that much of this money is owned by very wealthy corporate organizations and individuals and rather little is available to working people and governments which in the end delivers an increasingly unhappy society.
Open PDF ... BoE-Money-in-the-Modern-Economy-An-Introduction 2014

WHAT IS CURRENCY?
More confusion than clarity

A Graphic from Appleseed Permaculture
The US dollar is currency, as is the European Euro.
The Dollar and the Euro are money that serves as both a medium of exchange and a store of value
The 'currencies' described in this concept are the value flows ... often intangible ... that are associated with each of the capitals
The concept of 'complexing to' has some similarity with the concept of TVIA where the STREAM / STRAND/ STRING is one of the most important REPORTING ENTITIES because of the way PRODUCTS flow through the system having IMPACT all the time and everywhere.

What is money?

When money serves as both a medium of exchange and a store of value it cannot also serve as a measure of the value and have much measurement meaning.
Money is efficient as a medium of exchange.
Money also works as a store of value as long as the idea of money is trusted to have value. The importance of this trust cannot be overstated.
In order to measure the value of intangibles of all sorts, the solution is to use UNIT OF ACCOUNT specific to the characteristic of the intangible element and what it does.

Bendell-and-Slater-2017.

Thwarting an Uber Future for Complementary Currencies: Open Protocols for a Credit Commons.
'http://truevaluemetrics.org/DBpdfs/Money/Bendell-and-Slater-2017.pdf'
Open PDF ... Bendell-and-Slater-2017

A Multi Currency World
Conventional financial accounting has rules for handling multi-curency financial reporting
TPB note: My experience includes development project accounting where the funding agency (e.g. The World Bank) did its accounting in US Dollars while the country (e.g. Namibia) did its accounting in Rand. Projects in Namibia funded by Sweden had accounting in Kroner for the donor, accounting in Rand for the beneficiary country and accounting in US dollars for international reporting.
The Dollar and the Euro are money that serves as both a medium of exchange and a store of value TPB note: Other experience included international development finance work in Madagascar where my client company did its accounting in local currency (Malagache francs) but reported in both local currency and international currency (French francs). It was also required to report to the IFC in US dollars. Operations located in Madagascar had expenses in Malagache frans and had local bank finance in Malagache frans. Sales were made mainly in Japanese Yen, Spanish psetas and French francs. Major loan financing was denominated in US dolars (IFC), French francs (CCCE) and in European ECU (European Development Bank).

Multiple Units of Account
The main units of account
...... units of account for MONEY
............ one for each CURRENCY
...... there are units of account for PEOPLE
............ one for LIFE ITSELF
............ one for QUALITY OF LIFE (perhaps with further sub-divisions)
...... there will be several units of account for NATURE
............ one for LAND
............ one for WATER
............ one for AIR
............ one for Carbon/GHG/Climate
............ one for BIO-DIVERSITY
............ one for ECOSYSTEM SERVICES
Honey as money / US paper dollar / UK pound coin / Gold bars


The price of gold in USD from 1960 to 2016

Gold has been used as money ... that is a medium of exchange and a store of value for many centuries. Unlike most other phsyical materials, gold did not degrade over time and therefore maintained its 'value'. It was also scarce and could not suddenly change in value because of a rapid increase in the amount of gold.
See also Wikipedia 'Gold as an investment'
Open Wikipedia page

The life of modern man depends upon his mastery of money.
Our political money system is breaking down and must be displaced by one that serves the needs of modern exchange. Otherwise our civilization will perish.
As technological improvements tend to specialize and confine each man's production, the need for the exchange of products increases, and, therefore, man's dependence upon money makes the mastery of this vital agency more and more imperative.
'http://truevaluemetrics.org/DBpdfs/Money/ECRiegel-Private-Enterprise-Money-1944.pdf'
Open PDF ... ECRiegel-Private-Enterprise-Money-1944






CRYPTOCURRENCIES
A growing presence in the financial system
Open L0700-MX-CRYPTOCURRENCIES

Open external link




SolarCoin
A coin / token based on potential
SolarCoin ... Frequently asked questions
SolarCoin is a blockchain-based digital currency distributed to solar producers at a rate of one coin per megawatt-hour of solar energy produced, based on verified meter readings. The organization maintains a public ledger which records each SolarCoin given out to solar electricity generators.
https://solarcoin.org/en/faq-frequently-asked-questions/
Open external link
SolarCoin ... accountability / transparency
https://solarcoin.org/en/solarcoin-oca-accounting-transparency/
Open external link
Cryptocurrency / Solarchain
Enterprise Times News article: SolarCoin blockchain: earn your reward
The SolarCoin Foundation, based in Greenwich, Connecticut, seeks to incentivise solar production one megawatt-hour at a time. It uses blockchain technology as its foundation. Founded in 2014 by a group of solar experts and macro-economists, the SolarCoin Foundation is an international network of volunteers and a community. Its purpose is to oversee the distribution of SolarCoins (cryptoexchange symbol: SLR).
Open file 13744
SolarCoin-PV-roadmap-foldout
The basis for SolarCoin ... that is the potential of solar PV to produce electricity up to around 2050.
Open PDF ... SolarCoin-PV-roadmap-foldout
Growing number and value of the crytocurrency economy

In the second quarter of 2017 the amount of ICO related financing has boomed (ICI = Initial Coin Offering). These were negligable in 2015 and 2016 and started to grow very rapidly in the early part of 2017. This reflects the growing understanding of what blockchain technology can be used for, and an increasing acceptance of its use. It also reflects the willingness of a certain class of investor to embrace the idea that 'if BitCoin can be a vehicle for wealth creation, then maybe another blockchain based coin or token might do the same ... and make me rich!'

CityCoins
A coin / token based on PLACE
GO TOP
Alfonso-Govela-City-Coins-White-Paper-v1-170904
The basis for SolarCoin ... that is the potential of solar PV to produce electricity up to around 2050.
'../../DBpdfs/Thinkers/Alfonso-Govela/Alfonso-Govela-City-Coins-White-Paper-v1-170904.pdf'
Open PDF ... Alfonso-Govela-City-Coins-White-Paper-v1-170904

INS
Blockchain for Retail Grocery
GO TOP
INS-ICO-Whitepaper-171002
INS believes Bitcoin, Ethereum and other blockchain ecosystems will usurp traditional industries, including retail. Blockchain offers a compelling solution to the problem of combining accessibility with privacy and security ... [TPB: huge potential for disruption ... technology driver from Russia!]
'../../DBpdfs/BlockChain/ICOs/INS-ICO-Whitepaper-171002.pdf'
Open PDF ... INS-ICO-Whitepaper-171002

STK
Blockchain / Cryptocurrency for Global Payments
GO TOP
STK-whitepaper-171002
STK Global Payment’s vision is to create a globally accessible alternative to traditional banking, allowing you to store your money safely, access it instantly and transact with it anywhere, in any currency including crypto by using the STK token, right from your smartphone, using the STACK app. Creating a digital wallet as a companion to a traditional card solution, the STACK app enables you to use any of your currencies at point of sale, anywhere in the world.
'../../DBpdfs/BlockChain/ICOs/STK-whitepaper-171002.pdf'
Open PDF ... STK-whitepaper-171002




The text being discussed is available at



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