The Freedom Credit - Page 3
The Only True P2P, Private & Capped Money
Efficienomics
Efficienomics is the concept that represents production efficiency improvements, due to technological enhancements and streamlined processes, which leads to prices falling to the marginal cost of production. Efficienomics occurs in stable, inflationary and deflationary systems, but is most powerful with a deflationary and capped currency. It's only applicable in some form of capitalistic socio-economic structure with competition.
When plasma TV's, mobile phones and computers first became available, they were very expensive. Today, we have access to much better technology for much cheaper. This is even considering we're operating in an inflationary environment! With the FC, prices will drop dramatically in all industry's. It's true your salary will also decrease in nominal "units", but your overall purchasing power of goods and services increases.
In today's monetary climate, some goods and services get cheaper while others cost more. If 10 years ago your weeks groceries cost $100, today it costs $150. In 5 years it might cost $200. Prices keep rising as banks create new money. The opposite effect will inevitably happen with The FC. Every year for many years, your weeks worth of groceries (& everything else) will get cheaper, because of efficienomics, competition and no inflation.
Closed Loop System
The Freedom Credit is designed to be a closed loop system. This is why you can't exchange your Credits back to fiat. This avoids many legal hurdles, while encouraging The FC to be used as it's designed to be used, as money! The goal of The FC is to replace all other currencies in the world and become the primary medium of exchange.
It's privacy, security and appreciating value are it's main selling points for why people will prefer to use credits as their dominant means of exchange, as opposed to devaluing fiat currency or publicly visible crypto. Over the long term, it means that the worlds money supply of 10 trillion FC's will continue to rise in value, due to the principle of efficienomics.
For you personally, it's means you can buy more things, because the price of everything drops, because The FC supply isn't inflating and devaluing. In the first year using FC's, a week of groceries may cost 200 FC's. The fifth year, it might cost 170. The tenth 150.
As more people adopt The FC, the value of each credit rises due to business's lowering prices to compete for customers. The larger variety of markets (food, clothing, housing, technology, services etc..) using FC's, the faster prices drop and the more value everyone can access.
Morality Of The Current System
The current monetary system relies on commercial banks, central banks, and governments to create credit. When you take out a loan, banks don't lend existing money; they create new money and credit it to your account, expecting repayment with interest. This ability to inflate the money supply is exclusive to banks, while anyone else would face charges of counterfeiting.
No one has the right to create new money because no one has the right to sacrifice the value of our money for their undeserved profit. This is what happens everyday with all fiat currencies. This is greed, wanting and taking what you have no right to, don't deserve and haven't earnt. Every time a bank creates new money, they're stealing the value of our money.
New money creation is currency devaluation and devaluation is value theft. The Freedom Credit is a limited and fixed currency which is unbiased and puts everyone on equal and fair footing. Traditionally, whoever controlled the money supply, as in who was responsible for creating policies and the money itself, could, can and does control the world.
This most powerful of abilities to fabricate new money on a whim, is not one anyone has the right to. It can only favour those at the top and produce sub optimal results for everyone else. Theft is not a right.
The power of fractional reserve lending, quantitative easing and open market operations, amongst others, are objectively immoral, as they all result in the theft of your medium of exchange and method of survival, which is money. Humans require the use of reason to survive as our nature demands as conceptual beings. We've evolved to divide our labour and increase our standard of living by inventing means of exchange to facilitate trade more efficiently. The man made technology which enables us to peacefully cooperate human qua human is money.
As with all human action, there's a wrong and right, good and bad. It's wrong for some to have the power to steal your wealth by increasing theirs arbitrarily. When those with the license to create money do so, there's no genuine trade or value exchange involved. All that occurs every time these institutions expand the money supply is that you get poorer and they get richer.
Getting rich is great, but not at anyone else's expense. To be ambitiously devoted to increasing your wealth is perfectly moral and praise worthy. To be greedy, is not. One is just, the other isn't. For a currency to be objectively moral, it can't be unlimited. Instead of being designed to devalue your purchasing power and infringe on your ability to survive, a capped currency like The FC will empower you via appreciation due to efficienomics.
The Banks Own Your Money
Why Using Banks Is Unsafe & Unfair
Your money isn't as safe in banks as you may think. Due to "bail-in" legislation, when banks face "financial difficulties", they can legally use your money to rescue themselves from their own incompetence. Once you "deposit" money in a bank, it's no longer considered your money and you become an unsecured creditor in the eyes of the law.
You might believe your funds are securely held in a bank account, but in reality, you've effectively loaned your savings to the bank. They utilize your deposits through fractional reserve lending to generate exorbitant profits. Ever wondered how the banks are so rich? This is how. For every $100 you lend them, they can magically make $90 out of thin air. On their balance sheets, your deposits are recorded as both an asset and a liability. It’s a liability because the bank owes you the amount you deposited, but it’s also an asset they can leverage to create new money ex nihilo, out of nothing.
Whenever you apply for a loan with interest from the bank, you're essentially buying money from them which they don't have. Example: You want a $300,000 home loan. The bank says they'll give it to you at 5% over 30 years. This means you're buying 300k from the bank for $579,465.60. They don't actually transfer the funds from their savings account to your account.
They purchase the loan agreement from you (with fresh, newly created money), which is considered a promissory note and is a financial security. They create the credit out of nothing by typing the numbers into your account. You have to work in the real world for 30 years, providing actual value to other people, in exchange for this magic trick.
Over 30 years of hard, honest work, you'll pay $579,465.60 to the bank for the privilege of using the $300,000 they manifested from the air via your signature on the loan document. Doesn't sound like a fair trade, does it? All the bank needs to do is spend 30 seconds typing numbers into a computer and you have to work for 30 years. Not only do they create money from nothing, but they expect you to pay double for this honor.
While banks generally allow you to access your funds, it's not guaranteed. Notable examples of crises where banks drained customer accounts; Argentina 2001, Iceland 2008, Spain 2012, Cyprus 2013, Greece 2015, Italy 2016, Lebanon 2019 - present. In contrast, it's impossible to experience such bail in's with The Freedom Credit.
Page 1 - Value / App / Transactions / Privacy / Fees / Bonuses / How Do I Get FC? / How Many Are There? / Where Can I Use FC? / Goods & Service Grant
Page 2 - What Is Money? | Comparing Monetary Characteristics | Sovereign Vs Democratic Money
Page 3 - Efficienomics - Closed Loop System - Morality Of The Current Monetary System - The Banks Own Your Money
Page 4 - Financing With FC : Misc
Page 5 - (Videos) Bitcoin Problems | Banking History | Currencies Compared
Page 6 - Fiat Inflation Vs FC Deflation \ The Value Of Money \ How Is The FC a Replacement To Modern Banking?
Page 7 - Sending Technicalities & Security : What Is The Private Ledger?
Page 8 - What's My Motivation? - Bitcoin Problems - Understanding Inflation
The Freedom Credit is in the concept phase. If you can improve or build it, reach out to James The Traveller on Facebook.