More Debt than Money: The impossible contract – The Politicians Guide to Money System Collapse

Introduction:
More Debt than Money:
The impossible contract.

by Andrew Chalkley  2016

The imperfect nature of money is easy to see when you consider the ways we use money:

  • Money is prone to hoarding by people with more than they can spend. They steal it from the circulation like removing the balls from a pool table, mugs from the tearoom or the coins from the carwash.
  • It can be stolen.
  • It can be counterfeit.
  • It can be monopolized.
  • It can be lent. People with more than they need, may lend it to those that need money tokens for some reason. If the borrower is required to pay back more than they borrowed, it is possible to have more owing than there is tokens.
  • Substitutes can be created by writing on a certificate: “I owe the bearer of this certificate one token” and “collect it anytime you want!”. Yet the lender may not have the token that that the certificate represents. The token supply has effectively increased by the number of unbacked certificates.
  • If the volume of substitute tokens is high and they are lent into society at say 10% interest, it is easy to have more debt than money. If there are 100 tokens and 100 certificates, within eight years there will be over 200 tokens owing to the certificate issuers. In thirty years there will be 1744 tokens owing to the certificate issuers, yet there is only 100 tokens and 100 certificates in circulation. Yet the naughty certificate issuers never had the tokens that backed the certificates in the first place. The money system is no longer functioning for the benefit of society. The certificate issuers have bought the land, assets and politicians.
  • The system is collapse-prone. If trust in the tokens evaporates, the people revert to barter.
  • If money is hoarded, it can all come out of hiding in one day and flood the system causing loss of confidence.

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