Practical Use and Limitations of
Personal Money in Today's World
Part 2
Imagine that you are in the market for a certain used book. So you go online to a certain source, run a search, and find there are three people offering this book in a like-new condition, but with different prices as follows:
- Offer #1 is for $15 plus R5 ( 5 Riegels ).
- Offer #2 is for $10 plus R10 ( 10 Riegels ).
- Offer #3 ( mine) is simply for R22 ( 22 Riegels ).
Now, all other things being equal, which offer would you find most appealing? Most likely mine, #3. Even though it is slightly higher priced in 'value', you can purchase it completely with Riegels that YOU CREATE at the moment we agree to do business, thus saving your scarce USDs for other things, like a gift for that special someone in your life, or for your children. Of course you could go to another online shopping source or auction and pay the whole $20 or more if you prefer to spend your hard-earned USDollars.
So let's say you choose my offer. What happens now? Very simply, you select my 'BUY' button, just as you commonly do with online shopping carts, and you will be presented with a window that shows the purchase price, the shipping costs and options, any tax if applicable ( this will depend strictly on the individual or business who is presenting the offer ), and any other process fees, with a 'Total' at the bottom, much like any other online transaction. But here is where the similarity ends.
Upon selecting the 'Approve' option, a message is sent internally to me showing your desire to purchase my product. An email with this info is also sent to me for further notification action. When I see it and accept it, the transaction is final. At that point you will receive confirmation and a 'Transaction Number' along with other pertinent info from both me and the Regal Exchange Center ( REC - explained in the next section ). The only USD cash you will need to pay is the shipping and any taxes ( or any USD part of the transaction such as would have occurred had you chosen either Offer #1 or #2 ). This can be done by various mutually accepted methods, one such being PayPal.com which is very common. Upon receipt of any USD cash required, I will then ship your book as is normal and all is done.
This is all very similar to almost any other online transaction with the exception that it is not an instantaneous action at this point in time. As we are able to integrate our present setup with more of an online store-front, this issue should cease to exist.
The reality of what just transpired beyond the obvious purchase of a book from me which you really wanted, is that
YOU JUST CREATED THE TOTAL AMOUNT OF THIS MONEY
shown in Riegels, including the processing fees, when you made this purchase! This total amount of Riegels ONLY is then entered as a 'debit' in your account ledger ( just like your normal bank account ) and as a 'credit' in my account ledger. Now,
HOW EASY WAS THAT?
The great thing about all of this is that this could just as easily have been an off-line transaction done person to person between you and I, in which case you would simply have written me a personal check for R22 and I would have handed you the book. I would then have mailed in your check made out to me to the Center at some point in time for the recording of the debit and credit.
Now the practical application of this monetary exchange between you and I is that I now possess the money which YOU created. I can now use the money I received from you to purchase something I want from anyone else accepting Riegels for their goods and services at any future time. Further, I am effectively using YOUR money when I make my future purchase, not my own. The reason is that since I am showing a 'credit' status, I cannot create money myself, as did you in this instance, until that 'credit' is depleted. As you can imagine any number of people showing a 'credit' status can use your money in multiple exchanges until eventually YOU wipe it out by selling that much value into the Riegel Exchange System ( RES) yourself.
Of course you could also have paid me the R22 in the form of paper currency or coins if you qualified to be issued that form of Debit Power.
As you can imagine there must be some form of monitoring participants in this system which utilize a Debit Power function to keep potential abuse to a manageable minimum. That's why after an initial minimal Debit Power amount is established, it cannot be surpassed or increased until such time as the individual shows he or she is able and willing to reciprocate by selling back into the System themselves. In this way, through BOTH buying and selling, can someone greatly increase their ability to create money they need at any time, for any purpose.
Both the 'potential' and the 'protection' built into the Riegel Exchange System is powerful. By it's very design participation is greatly encouraged, whereas any would-be abuse of the System is automatically discouraged. The reason is simple: Deliberate abuse will always hurt the individual much more than the System, since to do so will simply lock him out of the System and it's many and obvious benefits.
We're now ready to take a closer look at our “money-creating” exchange system itself.
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