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Date: 2017-08-23 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.

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



Open external link


https://solarcoin.org/en/faq-frequently-asked-questions/
Open external link

https://solarcoin.org/en/solarcoin-oca-accounting-transparency/
Open external link




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