Saturday, September 15, 2012

Advantage 6 – Stable money supply

Excerpt from the book »Gradido – Natural Economy of Life«

»Only when there is compassion does the intelligence exist that gives humankind security and stability, an enormous feeling of strength.«
– Jiddu Krishnamurti
Indian philosophy and author

If we want to fathom nature’s secrets, we cannot do this with our mind alone. We need compassion to explore the cycle of life. Only when we have united mind and compassion do we achieve wholeness and thus the intelligence to discover the inventions of living nature and translate them to our model. The cycle of life is a masterpiece of nature. Only through continual becoming and decaying can growth take place in a restricted system with the total mass being kept constant at the same time.

In the Natural Economy of Life the cycle of growth and decay keeps the money supply stable. In the self-regulating system the supply of money per person levels off at the amount at which the monthly creation of money and the monthly decay are in equilibrium. With the amount of 3,000 gradidos being created and decay of approx. 5% the average per-capita supply of money amounts to approx. 60,000 gradidos. Neither credit institutions nor speculators can change anything.

An average supply of money means that one person may possess more and the others less. That is quite normal and consistent with the variety of life. Some people will live from their basic income and have only small balances on their accounts. However, good business people can still become millionaires. This changes nothing in the total money supply, which depends solely on the size of the population.

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