20. Why and when is money created in the traditional economy and how does this relate to the creation of the U.N. Dollar?

Money is created to facilitate the exchange of goods and services.

Extra currency is created when a country has EXTRA goods and services that are extremely likely to be marketed. Both in traditional economies and the U.N. economy, currency is created both to cover an increase in marketable goods and services and IN ANTICIPATION of FUTURE TRENDS. It is not necessary to wait until goods are actually sold before currency is created to cover the extra production.

It is with this principle in mind that both traditional currencies and the U.N. Dollar iscreated.

There are certain problems experienced in traditional economies that are not a problem in the same way in the Supplementary Economy.

For instance, because one often does not have firm orders in advance when currency iscreated in traditional economies, the creation of currency may be subject to error. Other dynamics which affect the value of currency (how many goods and services it can buy) include speculation: buying and selling foreign currency or products like sugar, etc. on “future markets”. This speculation and error alters the value of products and thus also of currency and these imbalances, referred to as inflation and deflation, are regulated by central banks, by producing extra currency or withdrawing it.

Wars, budget deficits, the debt crisis are some other factors which are destroying today’s traditional economies.

In today’s world, there is a great deal of production capacity, but markets are shrinking rapidly, because of the problems mentioned above and the resulting gap between rich andpoor.

Once the world becomes united into one market for the purpose of the Supplementary Economy, the U.N. Dollar can be created because the unused production capacity then has a market. Once production becomes marketable, currency can be created to cover it. The U.N. Dollars are created to cover the future sale of products which have already been ordered and for which there is a supplier. It is thus less subject to error than traditional currencies.