Structure of the System:
- Create a unified money system. A unit of money without any exchange rate across participating countries.
- Replace the Central Banking system and banks with an Infinite money supply. This allows instant and unlimited financial resources.
- Fix all raw material and food cost at costs lower than today’s market value. (See Scarcity Myth for how this is possible.)
- Create a medium wages for all job functions. The Labor Department already has this information.
- Create a "multiplier value” for each industry. The more "ethical” the industry the higher the multiplier value
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The devil is in the details. The following paragraphs give some detail to the system’s skeleton. Other details such as accounting practices, labor laws, or cultural ramifications will not be discussed here. This is simply the framework of the system itself along with short discussions on the benefit of moving to such a system.

Unified Money System (Credits)
If people have not realized it now, the world is symbiotic. Events in one part of the world affects others. We are beginning to see the real faces of people whom were once called enemies. Some, like me, have come to understand that our enemy is not an entire nation, but just a small percentage of people within that nation. The rest of "them" are more concerned with rational goals, such as supplying food, shelter, clothing, medicine, or education to their families. I believe these values are universal and thus should be the primary focus of policy makers. The outliers (terrorist, criminals as such) should be taken care of with due process, but Worlds' leaders need to be focused on getting those stated resources to their people efficiently.

A unified credit system has several advantages. First is the elimination of the complex process of foreign exchange rates. The second is the equalization of a price structure. For example, the price of a pound of aluminum will be same in Nebraska, the Canadian tundra and a remote village in Afghanistan. The simplification of the price structure, I believe creates efficiency across the board. Along with this, with labor cost being the same, there would be no advantage to “outsource” labor to countries with lower base wages as we have today. This is one step to building up the manufacturing base in the United States.

Central Banking System
The Central Banking system was developed after the 1907 recession and finally implemented in 1913. At the time, there were hundreds of different “monies” in circulation. The unification of the dollar was much needed and gave a “common currency language” across America.  However the Central Banking system has the most profound effect on our lives in part due to the reserve requirements of large banks. The "wealth = debt" concept comes from the fact that large banks only have to maintain a 10% cash deposit of the amount they, essentially, loan out. This practice started hundreds of years ago with jewelers who held gold for others in return giving “certificates of deposits”. The jewelers discovered they could give out more certificates then they had in gold value because at any giving time, they had more gold stored then the public was removing from the jeweler. Therefore, the loaning of money in which it’s total value loaned is more than what is at hand, is not a new concept. The actual amount of "money" in an economy is not just physical dollars, but about 10X that amount in loans which are owed back to some institution. This is a fundamental issue with the way money is supplies to our economy.

Now the real problem is the concept of interest, since we always, I emphasis the term always owe more than can be pay back in full at any given time because of interest. The implication is enormous! We (as in our Macro-economic framework) then have to produce (create from debt) the money needed to pay off that interest. Of course that money has an interest rate and so the cycle repeats. The idea that money is created out of debt, I feel, is archaic and needs to end in my opinion.

In addition, at any give time the US (or the world for that matter), there is a finite amount of money available. Economics 101 states that humans are selfish and will do what is in their best interest. Therefore, generally speaking, people will attempt to horde serving their best interest. If money continues to be finite, then there will always be those who want that bigger "piece of the pie", or at least a means of controlling its growth and distribution.  That in itself is not bad, however when those that want a bigger piece are able to directly create laws, or indirectly influence law makers to create laws, to their advantage (and others disadvantage), I feel that is bad and such a process needs eliminating.

As great of system this was in developing the United States into the economic power house, the thorns of this system are showing. Thus I believe a new way of money creating is needed. A system is needed where by hording would not be necessary. Thus I’ve created a concept called “The infinite money supply.”

The idea of an infinite money supply is simple. Transform the Central Banking system from a money creator to a money supplier. Thus money is not created it's simply supplied. Banks make "loans" to business, individual's and governments as they do now. Those parties, of course, have to pay back to the banks in payments, but only as a check and balance system.  Heavy costs would be associated with loan defaults, such as that party would not be able to get a loan for several years, for example. This system also allows interest to be significantly decreased.  Interest is a way of both hedging against inflation and a way for banks to make money. As I will discuss later, inflationary concerns are a minimal and banks, like all other business will have less of cost burden. The application of interest is thus not as important as today.

The Multiplier effect and the cost of labor removed from product cost.
The multiplier effect will be a foreign concept to most and thus needs some explaining. However this idea actually creates incentives for individuals to both work and to form companies of a “high ethical nature”.   Using the multiplier effect is why this economic system is considered normative. It will be society itself which decides the multiplier for each industry. Thus each individual will have a say in the final wage of a employees. Therefore a wage base has two major components. First is the average wage for that job (which includes things like experience, education and so forth, just as it does today), then second a multiplier value which is basically value society believes a particular industry is important to society itself.

Before moving on, I want to dive a bit more deeply into the philosophical concept of the multiplier effect.  Some may argue that in a free market system, society already imparts its value into products due to market demand. That is true and under this system the market clearing price will be maintained by the intersection of the supply and demand curve. However, let’s look at two examples that may show to invalidate that concept.

First, what if a majority of people want wind or solar power and not coal powered plants? Due to the high costs, wind and solar power are unavailable to a majority of people. However with low fixed raw material costs and, as I will further discuss, direct labor costs which are NOT incorporated into the cost of a product, these cost will be significantly lower allowing the market price to drop brining in more people who can afford these items creating further demand, thus lowering the price. Now wind and solar become a major power source for the world.

Second is the difference between what people believe is more ethical and what people will actually pay for.  I’ve asked many people “From an ethical standpoint who should get paid more? A professional football player or a teacher?” Granted from a market standpoint, the football player, however one may argue the ethical addition to society of a football player, beyond entertainment value. If we compare a “good” or “bad” teacher and football player, we see that the best teachers still get paid less then the worst professional football players. So again, there’s a mismatch in our value system to what reality shows. Those who believe a teacher has a greater role in society will pay $1000 for season tickets, but would not even think to enter a free high school debate for the most part. The ethical value to society, I argue, must be part of the incentive structure in a job function. Without it, we as a society are mere hypocrites.

Multiplier effect concept 

As said before, society will choose a value (say between .75 and 1.5) for what they believe are more ethical businesses. For example, I would choose the porn industry as a .75, but educational institutions and most forms of health related institutions as 1.5. As said before the labor wage has two components, first is the standard wage for that job function. The second component is the multiplier value. Thus multiply the two together and one gets the actual wage. As an example a college graduate with a programming degree currently earns around $60,000/year, on average. If he/she chooses to work in the porn industry this starting wage will drops to $45,000/year. However if he/she chooses to work for a hospital, that starting wage is now $90,000.

One more additional thing I need to mention is the difference between direct/indirect labor and administrative/sales labor. Direct labor and indirect labor are considered in the cost of a product or service. It’s ONLY these two labor cost which come from the infinite money supply. Administrative and sales labor cost will come from the company itself. Therefore when “bad” times occur, workers could easily be left alone in the layoff process. Administration and sales would not. I believe this creates more incentives for executives to run their company more efficiently as the down fall would be their unemployment as the workers are excluded from company costs and in theory would not need to be touched. However with that said, what would come from the infinite money supply is the additional wage given to the administrative or sales employees. Any company with a multiplier above 1 would be included with this clause. Therefore the company does not have to pay the complete wage, only the negotiated salary as the infinite money supply provides the value portion.

An additional side note. The goal of this system is to maintain freedom of choice. I believe society benefits with diversity of products and entertainment choices. One may come to the conclusion that I want to rid society of porn and football. That is not the case. I’m simply attempting to find a way to build up and enhance other areas of society which we DO value but may not have a means of income to persue, besides taxes or heavy cost burdens to companies such as R/D costs. Areas in which a wage would be lower than market value in this system, such as a football player, could easily be compensated by a “bonus”. Same with a porn company who want to attract talent. So in the end, the football player still makes a $1million/year, but now respected teachers makes $100,000.

Fix all raw material and food cost
Although this might sound like some kind of price floor (or ceiling depending on how you look at it), this concept creates enormous stability under this system and is a foundation for the system's proper operation. As said earlier, the fixed price of raw materials will be set considerable lower then today’s market price. The earth charges nothing for the commodity. Mining companies or farmers are mostly direct labor and will be paid by the infinite money supply (see Multiplier Effect section), therefore production cost are lower than today.  Once the raw material price has been established, it needs to be fixed eliminated a cause of inflation. The Scarcity Myth section gives some details to why we can fix prices as they are fully abundant and available.

Because current production for many of our raw materials is in the thousands of years and food production levels are enough to feed most of the world today on an American diet, there is no need for a futures market jacking with the prices of items that are our economic (and personal) "blood".

I feel the combination of the infinite money supply and fixed (and low) raw material costs have dramatic ramifications. First the need to horde materials becomes none existent. In fact accounting rules could be put in place for keeping companies from hording. A rule could be in place stating a company must use 50% of that resource within 2 years of the purchase for example.

From a philosophical point of view, by creating an economic system whereby people no longer need to horde would free energies for other personal, artistic or spiritual goals. A major premise I had when forming this system.

Living Wage, Taxes, Insurance, Social Security/Welfare, and Education
A living wage is a concept whereby an income is supplied to all adults. Under today’s economic system, this is ridiculously unfeasible. However with an infinite money supply, supplying a living wage of say $2000/month could be a reality. I have attempted to show how inflationary concerns are minimal and this living wage should have little effect on necessities such as food, water, shelter and education.  This framework now allows physically or mentally handicap people the ability to survive without a cost burden on taxpayers. Same goes with the unambitious able bodied person who lives off welfare. It also allows, for example, single mothers going to school a supplemental income decreasing their financial burden.

There might be concerns with unemployment or the supply of talented labor if given the choice to not work and still survive. It is quite possible that would be the case. However most people have wants to full-fill, Economics 101. It’s these wants which create the ambition to work or create a company. Once the unambitious are out of the workforce, the people left would, I believe, be more production then your currently average worker. This would actually benefit the corporation.

Insurance, especially medical and health would be minimized now. Medical insurance, which is projected to be 25% of our gross salary (for some it is already) in 50 years, incorporates hospital labor, drug costs and so on. As we understand now, labor and material cost is minimal. What's the material cost of a drug removing R&D costs? Tiny I suspect. Other insurances such as auto and home, although would likely still be needed, would be considerably less due to all the above stated lower costs.

Social security could now be eliminated. By using a modified version of the living wage concept, we can create a “retirement wage”, which would add to the existing living wage. Using the same progressive concept used with Social Security today, a person can retire at 60 with additional $500/month, at 65 with additional $1000/month or at 70 with an additional $2000/month for example. With a “retirement wage” in place, 401k plans (and cost burden on companies to match) would not be needed.

With educators being paid by the infinite money supply and not by taxes, allows a fundamental shift in how we educate our children. With lower costs, primary and secondary education could now be fully privatized. The payment to these institutions would of course be in effect, but minimal. Schools could now be created solely for the intellectually or musically gifted, for example. To be sure minimum educational standards should still be maintained, but now institutions can significantly exceed those expectations and a plethora of educational choices for parents are created.