User talk:Janosabel

Land and money
Not many economists seem to be aware (or are willing to admit?) that land and money have no cost of production. Yet this undeniable fact at the foundation of economics have far reaching consequences. Why are these basic elements scarce and/or expensive? The question is virtually unknown in academic circles. It is more likely to arise in lay circles driven by obvious hardships in people's lives.

Land
Land and all creative forces of nature exist whether or not we, humans, are here to make use of them....

Money
Money, meaning "legal tender" and "currency" is like a ticket system --- an accounting and rationing device.

It can be issued in any quantity provided the actual wealth (goods and services) is available for its exchange.

However, for it to serve societies and economies well, the aggregate quantity of money-supply has to be governed by the total value of goods and services available for exchange via the market system. This one fundamental point can be made by two related scenarios: Shops full of customers ready to part with their money but the selves are empty of goods and, conversely, the goods are there ready to be taken but the customers have no money (tokens).

Modern societies without money
A pseudo-money system, as bank-created debt, currently distorts the socio-economic system everywhere. It is characterised by cycling between borrowing and repayment. When a loan is repaid the borrower's account is zeroed and and disappears as far as the economy is concerned. When many borrowers or people with large debts clear their obligations, significant purchasing power disappears from the economy causing a deflationary cycle (too many goods/services not enough buyers with money).

Money, in the form of a circulating medium of exchange--- i.e currency ---makes up less than three per cent of a nation's money stock. Radically different from debt-based bank created money, when new notes and coins are spent into the economy through public spending, it remains there circulating indefinitely unless withdrawn as taxes to manage inflation if production wealth declines for some reason.

Janosabel (discuss • contribs) 21:54, 8 October 2015 (UTC)