ABSTRACT

We describe the law of conservation (LOC) from physics. Then we show how money is used to violate the LOC. Because of this violation we have poverty around the world. We have debt, deficit, unemployment, and war. Therefore all our economic and social problems are manmade.

Where do we get the money? The money is originated by the central bank (CB). Only this bank can print money. It can print as much as it wants; whenever it wants, and give it to anybody it wants. It does not cost anything for the CB to print money. The CB prints money out of thin air. Thus money is free for the CB. We call it free money.

This bank controls economy by controlling the supply and distribution of free money. By controlling the economy the CB controls the government. If economy fails, people fail, and the government fails. The government of your country does not have any control over this CB. The CB is not accountable to anybody. It is a private bank, and therefore CB is the most powerful dictator. In USA the Federal Reserve Bank (the Fed) is the CB.

Since money is free, we really have money-less economy (MLE) now in our world. However, the money is not free for all the people of the world, it is free only for the CB. We show how we can run the same economy without this money. Thus the idea of the MLE was originated by the capitalism and the CB.

In MLE we get all our products and services free. Therefore we also work free.  The details of the MLE can be found below and in the FAQ. We want your help (a) to find the flaws in the MLE and (b) to show how we can fix it. At the end you will surely agree that the MLE is a meaningful and desirable economy.

CONTENTS

CONTENTS

• ABSTRACT
• THE LAWS OF CONSERVATION (LOC)
• VIOLATING THE LOC
• TRANSFER OF WEALTH
• NO WIN-WIN SITUATION
• MLE WILL CHANGE PHILOSOPHY

•       FAQ: IS MLE FEASIBLE?
•       FAQ: WHAT IS MLE?
•       FAQ: HOW WILL MLE BE IMPLEMENTED?
•       FAQ: IS MLE SOCIALISM?
•       FAQ: WHAT WILL BE THE MERIT SYSTEM IN MLE?
•       FAQ: WHY WILL PEOPLE WORK IN MLE?
•       FAQ: WILL THERE BE ENOUGH WORK IN MLE?
•       FAQ: WHAT WILL HAPPEN TO TAX DEPARTMENT LIKE IRS?
•       FAQ: WHAT WILL BE THE INCENTIVE FOR HARD WORK IN MLE?
•       FAQ: WHY WILL PEOPLE GO FOR HIGHER STUDIES IN MLE?
•       FAQ: DON’T WE HAVE TO MANAGE THE RESOURCES?
•       FAQ: WHO WILL BELL THE CAT?

• CONCLUSIONS

 

THE LAWS OF CONSERVATION (LOC)

This law says that the mass and energy cannot be created or destroyed. They can only be transformed from one form to another form. This is a law of nature and physics.

It can be shown that many laws of physics are either same as the LOC or can be derived from the LOC. Thus the nature has only one kind of law, the LOC. In particular, it can be shown that Newton’s second and third laws are LOC. The second law of thermodynamics is a LOC. The conservation of momentum can be derived from the LOC. Even the derivative theory of calculus is a LOC. Thus the entire theory of differential equation is based on the LOC. Since all systems can be represented by differential equations, then all systems naturally obeys the LOC. In this paragraph we have ignored the relativistic effects.

Economy is a system also. Thus it must obey the LOC. It does not have to follow all the laws of nature and physics, but it must follow the basic law, the LOC. If we can ensure that, then everything will be normal and natural.

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VIOLATING THE LOC

The GDP (gross domestic product) of any country during any year is the total amount of all products. This includes all cars, boats, houses, airplanes, missiles etc. Assume that this GDP is equivalent to a pot of gold. Similarly, assume that the total money of that country in that year is equivalent to a bag of dollar bills.

This bag of dollar bills has an one to one relationship with that pot of gold. They are tied together. None of them can grow independently, according to the LOC (law of conservation). Manipulation of the bag of dollar bills will violate the LOC.

Now, the CB (central bank) can print another bag of free money without any restrictions. These two bags of dollar bills will be then equivalent to that one pot of gold. Thus the price of gold has doubled now, creating inflation. The printing of extra bag of money violated the LOC; the money has grown, but the gold did not.

The CB can also give this free money to anyone it likes, without any restrictions. If this money goes equally to all the people in your country, this will not cause any problem. However, if the CB gives it only to the top one percent of the population, then we have a severe problem. The top one percent acquired the fifty percent share of the gold.  The process violated the LOC; it transferred your gold using free money.

Just like CB can print free money and give it to anyone it wants, it can similarly stop giving you the money also by making you unemployed. Thus reducing your share of gold to zero, violating the LOC. Your home will be foreclosed, and another rich person will confiscate it.

Observe that, profiting and interest charging violate the LOC in the same way.

Thus printing free money and allocating it to a specific group helps to create poverty by violating the LOC. Note that the remaining 99% of the population has suffered for many reasons (a) the price of gold has increased (b) their purchasing power has reduced (c) the available share of gold has reduced. The resource has become scarce, artificially.

In MLE we eliminate the root cause, the problem the free money creates. We can then run the same economy without violating the LOC.

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TRANSFER OF WEALTH

Printing free money and then giving it to a special group is designed to transfer wealth from large majority to a smaller minority. The capitalism headed by the CB (central bank) is using this technique to make some people richer and some poorer. It is a violation of the LOC (law of conservation). Observe that giving higher salary to anyone has the same effect. It increases the share of the pot of gold. It creates inflation.

The profiting and interest charging are also the same method of transferring wealth. Thus profiting is cheating or stealing of your wallet. It violates the LOC. At one time both profiting and interest charging were illegal and immoral in both Christian and Muslim religions. But now it has become glamorous in capitalism. More you profit better is your company.

Creating recessions by the CB is another large scale wealth transfer method.  By controlling free money the CB can choke the corporations and create unemployment. This will cause loss of homes by foreclosure. The property cannot be destroyed according to the LOC. It will be eventually purchased by some rich person, causing transfer of wealth. Thus large scale unemployment is organized to transfer of wealth en masse.

The CB is purposely violating the LOC and causing inflation. Keynes, a father of economic theories, says – “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some. … The process engages all the hidden forces of economic law on the side of destruction and it does it in a manner which not one man in a million is able to diagnose”.

It is the CB that creates the inflation, not the government. CB uses the government to do the CB’s work; CB is the dictator. The government does not have any control over CB.

There is no profiting in MLE, no violation of LOC, and yet we will have everything we want. Obeying the nature will create the abundance, peace, and happiness.

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NO WIN-WIN SITUATION

If I dump a truck load of sand on my drive way, and if you search carefully, you will find that I have dug many small holes in the sandy beaches around the world. This is the LOC (law of conservation). I get, only when someone else loses. Mass and energy cannot be created or destroyed; they can only be transformed or transferred.

You can see now that there cannot be any win-win situation. In every win-win situation, a careful analysis will always reveal a third party who will be the loser. Wining means profiting; profiting means cheating and violating the LOC.

If I have something, that I do not need it, and someone else needs it, then why not just give it away. Similarly, if a store has something that I need, I just go and get it. There is no need to exchange or barter with something else. After all the money that we are using is free for the CB (central bank).

All the products we are using are made of resources from nature. Nature is free for everybody. Nature cannot and should not be allowed to confiscate. Thus all products are, in reality, free. Anyone who needs them should be able to get them free. So the concept of MLE already exists in principle.

There is no need to create and maintain an artificial win-win situation.

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MLE WILL CHANGE PHILOSOPHY

The absence of money will make us pure and selfless again. We will no longer go after someone to steal his or her wallet. This MLE (money-less economy) will slowly bring us back to nature, we will start loving ourselves; we will have confidence on ourselves. Once we focus on ourselves, it will automatically change our mindset and we will start loving others also. We will again feel for the preservation of our environment.

This personal change will bring changes in the society, our culture, religion, and education.  The practice of religion depends on money now. In MLE that practice will also change, the religion will be transformed. Poverty will go away from the world. Peace will come to the world; there will be no more wars.

All these changes will bring changes in our demands for our products. Life will become simpler, loving, and peaceful. We will demand for new kind of products and education. We will understand the philosophies of Gandhi, Buddha, Martin Luther King, Nelson Mandela, Einstein, and can still have the life style of rich and famous, if we want to.

Some advertisement told us to carry a bottle of water, and we did. We lost our confidence on us. We have lived without carrying water for million years and the mankind survived. Another ad said to go to the fitness center, and we did. Have you ever seen a fat man going in and coming out as a thin man? We lost our self-confidence. The MLE will change that philosophy.

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FAQ: IS MLE FEASIBLE?

Yes it is feasible, practical, and can achieve the same thing we have now. In reality we have a MLE now but in disguise.

It is well known that the money is free for the Fed. The Fed is the central bank (CB) for the USA. It is a private bank and only it can print money without any restrictions, at anytime, by any amount, and without any transparency. Since the money is free for the Fed, it should be free for everybody. We should not have to pay it back; there should not therefore be any debt or deficit. Thus the Fed has artificially created the taxation, periodic payment, interest rate etc. At the core of capitalism then we really have a free-money system or MLE now.

Let us examine the status of money today. We are all dealing with electronic money these days. Our employment checks are deposited electronically by our employers in our banks. We buy things using our credit cards. We pay the bills using our computers. Thus the money is just a number in some database on some computers. That number goes up and down and controls our life styles. Now we ask do we need that number to control us.

Isn’t it already a MLE? We are all trusting, something that is not there or free like thin air.

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FAQ: WHAT IS MLE?

The MLE is money-less economy, a new economic system for the world. In this system there will not be any dollar bills or any kind of money. All products and services will be available for free. That means you will work free to give your services and you will get everything free, whatever you want.

You will get everything free only if you work free. You must work for a fixed number of hours. In USA a full time work is equivalent to 40 hours per week.

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FAQ: HOW WILL MLE BE IMPLEMENTED?

It can be implemented in many ways depending on the organizational setup and transitioning environment. Here is a possible method for now.

You go to work, wherever you are working now, just the way you are doing now. Work for 40 hours. At the end of the week your boss will enter 40 hours in your plastic card, very similar to present day credit card.

You will use that credit card to buy things from grocery store or from any other place. You will swipe the card at the checkout counter just the way you do now.

Nothing has to change. In fact in this kind of transition method people will not even know, or need to know, that we have switched to a MLE based society. All you will notice is that there will be jobs for everybody. Nobody will remain unemployed.

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FAQ: IS MLE SOCALISM?

No, it is not. In MLE you can have anything you want. People will be all different. If you want to have a corporate jet, you can have that. It will be free for everybody. If you want to live in a big house you can get that free also.

Since there will be no status symbol attached to a corporate jet, very few people will go after them. Since house prices will also not increase no one will be motivated to buy them as an investment property.

Since everybody will go on in their independent way, the MLE society cannot be dubbed as socialism. Everybody will be able to go anywhere, work in any place, and on any job of their liking. Nobody will be forced to work in a place that he or she does not like. The society will have true freedom for everybody.

The MLE will recognize that every individual is different; male and female are different. MLE will not try to treat them equally. But everybody will have equal opportunity. In MLE there will not be any organized effort to control people. There will be no need to control. There will be no crime in MLE.

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FAQ: WHAT WILL BE THE MERIT SYSTEM IN MLE?

In the present system we do not have a merit evaluation method. If you analyze carefully you will see that you cannot have a fair and balanced merit system. Under the present value system, as an example, a high school dropout can make million dollar salary as a CEO of a company, and a MIT PhD engineer can make 200K in the same company. It will be difficult to justify such a merit system. After all we are using free money to evaluate and compare things. The system has to be corrupted.

In the abstract we have explained that the central bank (CB) is the dictator. The CB pays its people free money to implement the policies of the CB. So a merit system has been created to satisfy this policy. The best person will be chosen, not on the merit for the work, but on the merit to propagate and advance the dictatorship of the CB.

Two persons can never be equal. Just like our five fingers are different in our hands and we never feel bad or uncomfortable with their differences, we will similarly not compare people in MLE. In a business no two persons do the same job at the same time and in same place. Thus you cannot compare apples and oranges. It will be unscientific to compare two jobs or two people.

Besides, everything is free in the MLE, why would you then compare things? There will be always right people for every job. We have to understand that our mindset is biased or brainwashed with the present free money system. Our philosophy will completely change in the real MLE.

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FAQ: WILL THERE BE ENOUGH WORK IN MLE?

Sure there will be. Whole of Africa is suffering and calling for help. We can go there and build their society. Help them so that they can help themselves. Inside USA there are still people suffering in flood, tornado, draught, and earthquake disasters. They need help.

We cannot go to the moon. We need lot of new research effort to make that happen. New ideas and technologies will be necessary to achieve that. We will have to build the international railway system around the globe, so that we can effectively transport people.

We need a new kind of ladder to heaven, so that people can easily climb up, to find god and enrich their souls.

It is not possible to believe that people will remain idle in the world under MLE. Every day, every moment people will come up with new ideas to benefit the society, just like we are doing now.

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FAQ: WHY WILL PEOPLE WORK IN MLE?

People will get food and shelter for free only if they work free for 40 hours. So this will be the motivation for them to work. No work, no food. In USA all full time employees work for 40 hours a week. This number can change in future depending on how the MLE evolves.

The work is defined as any meaningful effort desired or required for the benefit of the society. Entertainments and sports will also be considered as work. Although many work types will vanish or become meaningless in MLE, all facilities that will manufacture goods or provide services will be considered as meaningful work as long as the society needs them.

Many work, like research on the migration of monarch butterfly, which appears meaningless but funded now, will be considered as meaningful under MLE.

In MLE people will have tremendous surge of energy for work. Because they can now work on their own ideas, and on the jobs they really like. They can go to any factory anywhere in the world and start working there. The factory owner will not have any problems in hiring them, because the labor is free.

In fact unemployment is the greatest punishment in life. Nobody likes to sit idle. Everybody wants to contribute to the society. The MLE will give people the opportunity of their heart’s desire.

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FAQ: WHAT WILL HAPPEN TO TAX DEPARTMENT LIKE IRS?

IRS is the internal revenue service department of the US government. They collect taxes from the businesses and the people. Clearly their jobs will not be required in the MLE. They can be dismantled. To avoid sudden chaos in the society, they can be slowly retrained to track the 40 hour credit card system that the MLE will use. They will have to modify the software that IRS is using. They can become the human resource department of the government under the MLE. They will manage the hiring and firing of people and their relocation problems etc. They will define the job and they will find the need of the society under the MLE.

Similar methods can be implemented for many other corporations and departments of the government, which are meaningful now but will become unnecessary under the MLE. IRS is just an example of retraining of the people for the new life towards the MLE.

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FAQ: WHAT WILL BE THE INCENTIVE FOR HARD WORK IN MLE?

It is difficult to define hard and easy job. Most people will say, for example, engineering is a hard job and graphic art is an easier job. But you can argue in the following way against the engineering. Engineering is an easy job because you have a step by step process, defined in your books, and in your work manuals. You follow them and your work will be done. On the other hand, the graphic art is a creative work. There are no well defined procedures to create an art work. It is very hard to produce new ideas every day.

The concept of hard and easy is a byproduct of free money based capitalism. Same is true for good and bad. These are all false ideas to create discrimination in order to facilitate unequal distribution of free money.

In real life and in MLE people will do whatever they like to do. When you like something, that something will become easy for you. As Mary Poppins said, in every job there is an element of fun, you find it and the job will be done.

Thus a job that is hard for someone may be easy for someone else. 

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FAQ: WHY WILL PEOPLE GO FOR HIGHER STUDIES IN MLE?

Education will change under MLE. At present, education is a money-making business. Free money has corrupted our education, subjects, contents, teaching methods, school environment, and everything. Under MLE people will design things in a different way including subjects of study. It will become more meaningful and useful.

New generation will evolve under MLE with new philosophy for education. People will like the modified system. Only those who like education will pursue their study. There will be very few people, and people with only real interests, will be in schools.

Our technology will also change under the new MLE. There will be no money making people and effort behind entrepreneurs to impose things in the society. 100 years after MLE, the society will look completely different from what we have now. Many of the existing concepts, theories, and technology will be gone completely. Humans will develop in different directions in values, philosophies, and cultures. We may move away from the consumer type society. So, different education system will be created which will motivate different kinds of people to join them.

All over the world and in all decades and centuries people have always gone for research, studies, and investigation. They have done so even without any external motivations. People have carried out tremendous amount of meditation and sacrifice to search for the truth. The MLE will actually encourage such activities.

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FAQ: DON’T WE HAVE TO MANAGE THE RESOURCES?

Yes, we have to always manage our resources, just like we are doing it now.

At present, if one million rich people try to buy corporate jets, they may not get it. They will have to wait in line for the manufacturers to produce them. Same thing will happen in the MLE also. If everybody wants something that is scarce, then we have to wait in line.

However, in MLE our philosophy and psychology will change. Since everything will be free, we may not try to get them as we are doing now. There will be no special economic or status symbols attached to corporate jets or luxury cars etc. Because anyone can have them, at any time, and they will be all free. So we will no longer remain a consumer society. Nobody will continuously advertise on the TV to go and buy something. We will buy only what we need.

As a result of changes in our attitudes, the demand for our resources will also change. Many resources which are scarce now can become abundant again. On the other hand, many things we cannot produce now, because of scarce manufacturing facilities. That will be gone too in MLE. We can start a duplicate factory, hire more people, buy capital assets free, and start to manufacture there. Also anyone will be able to start producing things we need. There will be no need to wait for banks to loan you money. There will be no need to convince venture capital companies for your patented ideas.

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FAQ: WHO WILL BELL THE CAT?

We cannot start MLE now. The money power is very big power. The money power controls, the CEOs, government, FBI, CIA, military, and everything. We cannot overthrow them. More importantly, 90% of the population believes in and supports the money power. The CB (central bank) is the originator of this power. It is the most powerful dictator of our time, and is bigger than the Kings of the past.

Never in the history of the world could the suppressed people free them from the suppressors. The suppressed people were always freed by someone from the suppressor community. Gandhi did not free the people of India. It was Hitler who destroyed the imperialism and made the colonies of Africa and Asia free. Same is true for the slavery system in USA.

Thus a much bigger power than money power will be necessary to overthrow the money power. We have to wait and see how it will happen. The Nobel Laureate Milton Freidman in economics said – “One unsolved economic problem of the day is how to get rid of the Federal Reserve”. The Federal Reserve is the CB of USA.

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CONCLUSIONS

We have pointed out that the root cause of our economic problems are:

• Free money of the CB (central bank)
• Unfair allocation and distribution of the free money by the CB
• Dictatorial power of the CB with no accountability and transparency
• Violation of the most basic law of nature – the law of conservation by the CB

Our analysis shows that the present economic system can be maintained exactly the way it is now without this free money.

The money-less economy provides everything we want and creates a better society.

However, we do not know how to overthrow the money power of the CB. Help us to find it.

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