Contents:
- Dual Modalities of the Perpetual Multiplier
- A Value-Add Phenomenon
- Monetary Management and Sequestration
- Summary
- Related Articles
- External Weblinks
Dual Modalities of the Perpetual Multiplier
The Perpetual Multiplier operates on two interconnected levels:
- Commodity Multiplier: Each primary product or commodity generates a chain of potential by-products, creating a "perpetual multiplier of byproduct possibilities." For instance, a single tree can yield timber (primary product) as well as by-products like sawdust, bark, and wood chips, which can be further processed into various other products, creating a cascading effect of value creation.
- Monetary Multiplier: Similar to the traditional money multiplier in banking, the issuance of By-Products Money (BPM) can trigger a "perpetual multiplier of money creation." As BPM is used to purchase goods and services within the BPE, it stimulates economic activity and generates additional by-products. These by-products, in turn, can be used to create new products and services, leading to further BPM issuance and economic growth.
A Value-Add Phenomenon
From an economic perspective, both the commodity and monetary multipliers represent a "value add" phenomenon.In the commodity multiplier, value is added by transforming by-products into new and useful products, extending the economic life of the original resource.
In the monetary multiplier, value is added by stimulating economic activity and creating new opportunities for production and consumption within the BPE.
Monetary Management and Sequestration
To ensure economic stability and prevent inflation, the governing body retains the discretionary power to sequester (reduce the supply of) BPM for each accounting cycle. This mechanism allows the government to manage the money supply and maintain the value of BPM in relation to the underlying by-products and the overall economic activity.
Summary
The Perpetual Multiplier is a key concept that underpins the potential of the By-Products Economy to generate sustainable economic growth and value creation. It highlights the interconnectedness between resource utilization, economic activity, and monetary policy within the BPE. By encouraging the efficient use of by-products and fostering a circular economy, the Perpetual Multiplier aims to create a more sustainable and prosperous future.
From an economic perspective, both the commodity and monetary multipliers represent a "value add" phenomenon.In the commodity multiplier, value is added by transforming by-products into new and useful products, extending the economic life of the original resource.
In the monetary multiplier, value is added by stimulating economic activity and creating new opportunities for production and consumption within the BPE.
Monetary Management and Sequestration
To ensure economic stability and prevent inflation, the governing body retains the discretionary power to sequester (reduce the supply of) BPM for each accounting cycle. This mechanism allows the government to manage the money supply and maintain the value of BPM in relation to the underlying by-products and the overall economic activity.
Summary
The Perpetual Multiplier is a key concept that underpins the potential of the By-Products Economy to generate sustainable economic growth and value creation. It highlights the interconnectedness between resource utilization, economic activity, and monetary policy within the BPE. By encouraging the efficient use of by-products and fostering a circular economy, the Perpetual Multiplier aims to create a more sustainable and prosperous future.
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