Rule of Money

A couple of years ago I was mulling over the difference between gold coins and paper money, when I realized one is a real thing and the other is a concept.  This meant gold was a commodity subject to the laws of Supply and Demand and paper money was not.  Paper money was a concept.  A concept like money, riches, earnings or love and peace was not subject to the Laws of Supply and Demand, because there was no limit to how much you could have.  Paper money was only subject to the method of acquisition.  The only Rule of Money is that it must be earned.

I used that Rule of Money as the title of my book and proceeded to investigate what the consequences were for the economies of the world.  It ends up that a country can use the concept to provide free education funding, free health care funding, free retirement funding and income for stay-at-home Moms.  It also means every citizen in a country following Rule of Money principles will have more money to spend.  It means every country will have more wealth to use reducing their debt.  It means every country will have more job oppportunities.

 Of course, injecting more money into a society brings out the Supply and Demand purists arguing that increasing the quantity of money brings on inflation.  Solving this dilemma required a review of economic principles and creation of a new simpler economic theory.  I call this new perspective N Theory.  It is based on the observation Economics is about the purchase and sale transaction, and not about solving the scarcity problem.  The are many other groups solving those issues like the agricultural industry, the energy industry, the clothing industry, the toy manufacturers and the housing industry.  How they do it is interesting, but it is not based on Economic principles it is built on business principles.

Back to inflation, N Theory explains it is not the quantity of money that causes inflation, but a lack of competition.  It is so obvious.  A few merchants at Christmas with the season's hottest toy and the price goes up.  If Christmas bonuses are up does the price go up, maybe, but not likely.  Why do economists feel it necessary to create such as convoluted explanation for inflation?  Simply, because it fits with the principles that underlie their profession.  That is why I created N Theory so they would have a podium to hang onto.