Seigniorage -- Or how to turn 10 cents into $100 in three simple steps
A 1 minute thought experiment
Seigniorage.
These are not the actual numbers, just examples for this thought experiment. Imagine
some entity takes a piece of paper and prints the characters $ 1 0 0 plus some words and artwork on it. It costs 10 cents to produce this printed paper. The entity gives this printed paper a name—the “$100 banknote.”
QUESTION: Where does this piece of paper actually get its $100 value from?the entity sells the $100 banknote to a commercial bank for $80—gross profit $79.90 (~80,000% gross profit).
The commercial bank sells it to you for $100—gross profit $20 (25% gross profit).1
Voilà!
A 10c piece of paper becomes a piece of paper with $100 of purchasing power. Seigniorage in action, in three simple steps.
See also:
Gross profit calculation:
(Sale price - purchase price) / purchase price * 100
(80-0.1) / 0.1 * 100 = 79,900%
(100-80)/80 * 100 = 25%
And money accounts for Our energy added into the system. And it's a very archaic tool.
The Foundational Function of Money (article): https://amaterasusolar.substack.com/p/the-foundational-function-of-money
Why Free Energy Technology Is Suppressed (article): https://amaterasusolar.substack.com/p/why-free-energy-technology-is-suppressed
Money Enslaves Us (article): https://amaterasusolar.substack.com/p/money-enslaves-us
Money Is The Hook (article): https://amaterasusolar.substack.com/p/money-is-the-hook
Money... Do We Need It? (article): https://amaterasusolar.substack.com/p/money-do-we-need-it
Needless to say, I have an issue with the use of money - My definition of money: anything We use to account for the energy We input into a system. This can be trade, barter, work exchange, shells, beads, sticks notched and split, coins (metals), bills (paper), or electronic bits (or anything else used for that purpose).
It is not a tool for freedom.