Total Posts:4|Showing Posts:1-4
Jump to topic:

We need an electricity-backed dollar

Posts: 1
Add as Friend
Challenge to a Debate
Send a Message
9/16/2013 10:49:04 PM
Posted: 4 years ago
Our fiat money has wrecked our economy by facilitating massive deficit spending, resulting in the destruction of our purchasing power, increasing the real value of our ever-increasing national debt.

A gold standard would provide backing to our currency, however, gold per se is very disconnected to the's a rare, shiny, corrosion-resistant, pretty metal, and that's about it.

On a gold standard, discovery and extraction of gold will lead to economic disaster. Gold mining consumes valuable resources, and on a gold standard,will devalue the currency.

Economic progress becomes sluggish, as the currency supply cannot increase, and increasing the money supply drains the economy, both by consuming resources, and devaluing the currency.

There is a solution that provides all the benefits of having a backed currency, and allows the money supply to increase in proportion to economic progress: an electricity-backed dollar.

As economic growth occurs, more energy is required. So the currency supply will increase at the same rate as economic growth.

Implementing this is as simple as guaranteeing that a kilowatt-hour of electricity can be bought for a certain amount of dollars, and using monetary policy to keep the free-market price of electricity in a range somewhere below that.

If the free-market price goes above the conversion rate due to economic contraction, the government will reimburse the difference once the free-market rate goes back below the conversion rate. The currency to pay the difference can come from increasing taxes, selling bonds, and/or decreasing govt spending.

If the free-market rate goes below the range due to economic growth, the govt can print currency, decrease taxes, and/or increase govt spending.

Anyone can produce electricity, and anyone can access it.

The money supply will be directly tied to economic growth. Economic growth will increase the money supply, as everyone needs energy, ANDincreases in the money supply will increase economic growth, as finding more efficient ways of producing electricity benefits everyone.

We can avoid both the uncertainty of fiat money, and the gold standard's inability to expand the money supply.

Hmmm...if we could create high-density energy storage devices, and design innovative electricity generators, all physical activity could be converted into electricity, and thus cash. Getting paid to cycle and walk to work!
Posts: 780
Add as Friend
Challenge to a Debate
Send a Message
9/23/2013 7:15:36 PM
Posted: 4 years ago
You say fiat money "facilitates" deficit spending. If the government doesn't have the will to balance the budget, why would it have the will to switch to a whole new currency? You might as well just say, the government should balance the budget, as long as we're in fantasyland.