Current monetary and economic system versus excellent monetary system and economic system

© W.T.M.Berendsen, Lichtenvoorde, 15 October 2021

Around the year of 2010 the excellent monetary system was created by me, Wilfred Berendsen. This excellent monetary system consisting of Both a very smart and needed monetary innovation and addition to the current monetary system but also out of monetary policies matching and beloning to this monetary innovation.

What most economists however do Fail to grasp enough when reading or hearing about my monetary innovation and resulting excellent monetary system (EMS)is the fact that my EMS is not Just the monetary innovation but also majorly the monetary policies but also the new economic system that results from the wise combination of this monetary innovation with the monetary policies beloning to IT.

This new monetary and economic system is very very different from the current monetary system, majorly because of the fact that the relationships between governmental expenditures and taxes and cooperational prices and wages and Costs. Are very much different from the relations between all of these in current economic system.

Even my notion of economic system differs from the regular ones and whenever i write economic system here in this specific text IT is mainly about very specific characteristics of our current economy that i label as economic system. Being the dependencies between governmental income and loans and taxes and corporate and organizational and personal incomes and turnovers and debts and wages and also proces of goods. This is what i mean with economic system . And this now relational closed economic system has of course certain resulting consequences in our economies.

I Will here write about the current monetary system and economic system versus the excellent monetary system and excellent economic system resulting from it. And what the differences between these are and why they matter so much.

The current monetary system and the current economic system

The current monetary system and economic system is based on solely money Creation that i call artificial money Creation. With debts. Individuals and citozens get loans that they need to pay back. And governments need to either loan money OR get the money through taxes. And even the money loaned by governments need to be paid back. For that the governments taxes people and organizations. This means that there are straight and closed dependencies between governmental expenditures and taxes and corporate and organizational profits and taxations and wages of citozens and the taxations of wages and expenditures. Its a trongly interconnected economic system.

In this economic dependencies system governments or citizens can not spend more than they can either borrow OR earn, but also more expenditures of governments mean less profit and OR lower wages and higher expenditures for the citizens and organizations.

Higher Costs of goods and services in this economic system mean higher Costs for citizens and organizations. Less disposable income and OR less profit for the most. More income for certain entities in society per definition means less income for other entities in society. With this win loose economic system

It is this system of dependencies that i call the economic system here. Which is a real economic system in our real economy and not in theory. An economic system that is the result of the closed monetary system and the closed relations and dependencies between the economic entities and economic features that i call the economic system for this explanation. The real economic system has much more characteristics but this characteristics that i mention here are very real and lead to certain consequences and limits for society

One of the parts and features of the current monetary system is the phenomenon and actuality of debts. Debts can be logical and needed but especially in current Times a lot of debts are not logical and reasonable anymore. Principly IT is logical if people get a debt if they want to buy a house, but in current Times for Lower incomes the height of these debts and the very low chances of being able to even get a mortgage OR other high loan is neither logical nor reasonable in current Times

I AM sure that Both a more reasonable and logical situation Will be created if Both the current monetary system and the current economic system (foremost the dependencies in this economic system) are changed. Another smart economic system is also or far more logical and possible also for the african continent and other developing regions. Which is something that i Will elaborate on in another writing.

The excellent monetary system and the economic system resulting from IT

By Means of my innovation for the monetary system which is basically a smart addition, the current monetary system can be transformed to the excellent monetary system. The most important and interesting and great part of the excellent monetary system is my innovation for and addition to the current monetary system

This addition, that could be labelled as being a specific form of no reserve banking , enables a much smarter and better economic system. With it
1) governmental expenditures do not require a loan for the government or tax incomes
2) organizations and individuals do not need to pay for governmental expenditures
3) wages and products and services do not necessairily need to be taxed with income taxes and VAT and other then financially totally not needed taxes
4) All of this means a decoupling of Many current dependencies in current economic system

The changes in the economic system have far reaching and great consequences.

It must be mentioned that my monetary innovation is not soleley meant for Creation of money and expenditures for governments, but that my monetary innovation and addition for the monetary system is for later also meant to be used in specific cases and ways by organizations and citizens themselves

But for the beginning IT probably first needs to be implemented and used by governments. As soon as governments creates money through my innovation alongside the regular Means of what i call superfical money Creation by central Banks and private Banks, there Will be at least 3 different kinds of money Creation of which my monetary innovation, the EMS money Creation, Will be the only real wat of real additional money Creation. The other two types which exist now are superfical and not real additional money Creation as plus and minus is still zero.

Money Creation through the EMS innovation by central Banks OR governments for certain governmental expenditures realized that for these expenditures of the governments, no loans OR debts result and Also no taxes are needed to pay for this money. The result of this is, of course, that companies and citizens pay less taxes. I think with the right management of our economies this may be possible for about all OR all of governmental expenditures financial wise. Meaning that principally about all OR all of current taxes Will not be needed anymore for financial reasons ...Maybe for other reasons but not for any financial reasons.

Another advantage of adding my monetary innovation to the current monetary system is however also at least one of the consequences of the very different economic system resulting from the excellent monetary system (EMS).

This consequences being that with the EMS economic system and monetary policies, IT is possible also to increase wages of employees without a cost increase for the companies and the need for companies to increase proces because of cost price increases OR higher taxes. In other words, the coat inflation and cumulative cost inflation results of taxes and our current monetary system and policies Will be much less.

Sustainability Costs and research can be paid through the EMS way of money Creation. Costs for health care and education the same. Principly all the required products and services and research whatever van be paid with the EMS system as long as there are not enough negative effects of the EMS addition and monetary system in our society.