ProducerCoin and EmploymentCoin
A Call To Action
Vote For A Better World By Utilizing Digital Currencies
Vote For A Better World By Utilizing Digital Currencies
ProducerCoin and EmploymentCoin
The intrinsic value of essential goods and services can only be calculated in terms of a "parity price". This true and honest parity value has it roots in the laws of thermodynamics and energy transference. At this parity price level, all goods and services can be produced and consumed without adding non repayable capital debt to the economy during each annual economic cycle.
Capitalists economies have strayed far from this truth because so many modern services provided by technical advancments have clouded the true value of the intelligent labor and raw materials that comprise the real cost and value of everything.
In today's modern world, it is easy to forget that the continuous production and flow of raw materials through the economy (driven by an intelligent and skilled labor force) forms the physical building blocks of an organized society. Accurate pricing of these materials and the labor necessary to transform them into the products we use every day are necessary prerequisites to the creation of full employment and consistent prosperity without the need for perpetual debt expansion.
Underpayment for raw materials production and labor creates a corresponding loss of potential National Income which forces more borrowing and causes entire populations to suffer in the midst of plenty. This was the lesson of the Great Depression, where America was producing as much as ever, but the lack of earned income due to the depressed value of raw materials and basic labor eventually brought poverty to millions in the land of plenty. In fact, the total per capita amount of currency dropped to only $6.00 at the depth of the Great Depression. At one point, the USDA paid cattle producers to kill (and bury) a portion of their cattle herds for $8.00 each, in order to put money in the hands of destitute farmers and ranchers. This occured while soup lines were prevalent in almost all major cities.
Policies which recognized the need for parity prices for raw material production were implemented with success in World War II. Parity production policies worked to win the war without a depression later. For proof, study the Defense Act of 1941.
Unfortunately, this common sense truth has been sacrificed for financial schemes that favor maximum, short term economic gain without adherence to sound economic principles. This is where ProducerCoins and EmploymentCoins can make a positive difference.
ProducerCoins and EmploymentCoins have the potential to fill the huge gap between the current poverty level minimum wage and a real living wage for labor and small farmers and modern homesteaders, resulting in local economies that accurately reward work.
The successful launch and adoption of ProducerCoins and EmploymentCoins must adhere to natural economic laws. These laws are based upon the flow and value of energy (both physical and mechanical) and define the parity price or, in other words, the accurate price (based upon the state of the art) of everything that aggregates into annual National Income.
National Income (NI) is defined as the income resulting from all annual production. Raw materials are defined as the harvested, mined, or extracted production of :
(1) Agriculture
(2) Forestry
(3) Fishing
(4) Mining... quarry and oil products
(5) recycling
Historically, farm products, which represent a majority of all annual raw material production, are consistently under priced by the market, especially storable commodities like corn, wheat, Milo, oats, etc., where it is necessary for a society to produce a year's supply in advance of a one-day demand. Due to this necessity, the market tends to view all inventories of storable commodities as a surplus which drives down the price to the cost of production each time we have a bountiful harvest.
After several years of drought, yields returned to normal in 2013, and within a year, farm gate prices dropped by ½ and even fell below the cost of production. This continuos cycle has driven millions of families off the land and into crowded cities. These are people who should have prospered in rural America for many generations to come.
To fully understand the importance of paying a parity price for raw materials and labor, simply look around your house. You will see all sorts of raw materials that have been transformed by intelligent labor into a usable place to live.
Therefore, raw materials are the economic credits from nature and they have a parity value that must exceed the cost of their extraction and manipulation into usable goods, otherwise the economy becomes all cost and no profit. History teaches us that a "production for use" economic system without a profit incentive is doomed to failure.
The parity "cost" of transforming raw materials to something usable is the true value of labor. We are all debiting nature in our own way. The net value derived from this simple equation is the intrinsic value of everything that surrounds us. When the net balance sheet of the country is tallied, the value of raw materials, after the labor of producing them is paid, becomes the tangible national wealth of the nation.
It is so simple. The value of raw materials and labor form the basis of any economy. The services we enjoy are afforded to us by a prosperous and profitable production economy because services can’t live off of other services indefinately. When it happens for too long, the currency becomes worthless.
This type of preventable economic tragedy happens over and over again around the world because people and governments refuse to acknowledge the necessity to place the correct value on the labor and raw materials of their society, even when the need to do so is crystal clear.
ProducerCoins seek to reduce the effect of this fundamental flaw, which again, is a society's blind refusal to pay itself properly at this basic level of the economy.
In the next paragraph, you will read "Rule One" of parity. It's the most important Parity equation of all. It literally anchors a capitalist system. When this rule is ignored for too long, the private enterprise economy falls into a death spiral of perpetual borrowing and debt expansion, punctuated by cycles of boom and bust, and ultimatly, the consolidation of wealth at the top of the economy. Producercoins and Employment coins can go a long way toward ameliorating the impact of this perpetual imbalance.
Rule (1) An hour of labor at minimum wage must have the appromximate value as the parity price of a bushel of wheat or other cereal grains at the first point of sale. This eventually creates a natural macro economic balance at the foundation of the economy. It insures that small farmers and consumers of modest incomes can make a living without subsidies. These two numbers must approximate each other if the economy is to function without subsidizing the income of million of Americans.
Instead of properly monetizing the value of raw materials and labor, we have created a paradise for mega-banks that bring all currency into circulation as interest bearing debt that's recapitalized year after year, because repayment becomes impossible without reducing the amount of money in circulation.
The introduction of ProducerCoins and EmploymentCoins begins to break the cycle of perpetual borrowing. These coins provide escrowed value when they are issued into circulation instead of creating interest bearing debt like the fiat currency that is lent into circulation through fractional lending.
To fully understand the concept behind these coins, let's begin with the price of wheat, the so-called staple of life. As of this 2021 update
The current wheat price is $6.19 per bushel.
The national average cost of production is over $8.00 per bushel
The value of wheat as calculated by the USDA is
December Market price All wheat............ bushel: $6.36
USDA Parity Price All Wheat.....................bushel: $18.00
Percentage of Parity All Wheat....................................37%
In short, this is why so many farmers go broke and rural communities stagnate. It causes millions of people to end up in cities without jobs, who should have remained on farms and in small communities producing something from the earth.
You can run the same equation for all farm commodities. Wheat is only one example.
You can also run the same equation for everyone paid less than $18.00 per hour for their labor. It’s all tied to energy.
To summerize, producerCoins can eventually bridge the gap between the market price and the USDA Parity Price.
Every USDA Farm Services Office has an established historical yield average for each commodity grown in their area. Each farmer has a known amount of acres allocated to each crop.
ProducerCoins can be used to pay a bonus to NON GMO PRODUCERS and especially organic producers. Over time, a huge market will emerge for ProducerCoins as their populatioty grows.
Likewise, EmploymentCoins can be used to pay a bonus to low wage labor and their value will increase by usage.
The Concept
The Concept
