Introduction

The modern economy has grown too complex even for experts to figure out. Lacking even a promise that it would eventually become a stable and reliable system, it is instead degraded into an endless interventionist affair. Today the world fears collapse and still rarely anyone suggests that we should seek real solutions. Men in power admit they are clueless and just keep doing more of the same, which is like trying to quench fire with gasoline. Our future depends on the knowledge of how to set the economy straight.

Common people, on the other hand, tend to keep their common sense and now more and more of them wonder: how is it that a crisis of money supply can decide whether we should work or not? Unemployment is certainly not a desirable thing, anyone can agree. It is not a rational thing either, as more wealth would be created if more people worked. Is it proper then, that financial faults can cause people to lose their opportunity to do real, useful work that would be of real benefit to all? When did paper bills and computer digits become so fundamental, that they now even pose a threat to our very survival? Shouldn’t it be just the other way around: shouldn’t money simply reflect real wealth in the market and assist with exchange? What are the obstacles we have put before a healthy and able person to prevent them to work and create? Are those obstacles inherent in market economy or are they artificial? Not being afraid to ask some common sense questions signals hope for our world.

Similarly, what laws of economy, or ways of our society, are causing goods to remain unsold and eventually go to waste, without ever being used? The goods are there, but people don’t have the money to buy them, so the manufacturers can’t sell their products, or must wait a longer time to sell them. When manufacturers should really fight their competition, they struggle with the system instead. Both producers and consumers, even though they work hard, must wait to obtain enough money in order to extract profit and utility from the wealth that is already created. We have a fundamental flaw in the way our economy works that hurts both the producers and consumers for no real reason. Why isn’t there enough money?

That a growth-oriented capitalist economy must suffer from insufficient consumption, also known as over-production, is taken as a certainty. Allegedly, nothing can be done about this, except such “solutions” as producing lesser quality goods (to increase the rate of consumption) or more advertising (which solves nothing overall and even makes things worse by wasting human labor on making useless commercials and wasting free time on watching them), or unemployment, or wars. This is all very irrational, but economists do not object. They take it as a given and never think the situation can be truly overcome. This is a great setback for humankind.

The current crisis is superfluous. No meteor has struck, no tsunami has flooded industrial zones of developed countries. Yet more and more of those stop work. Why? Today’s economy lacks massive quantities of money, just as in the time of the Great Depression, when 30% of money was missing. And why is that? It is because of the way money is emitted into the economy. Money is created as debt, and if no one wants to go into debt, no money can be created. This practice is based on the wrong understanding of money (the credit theory of money) that is in turn based on the wrong theory of value. The problem of the value of commodity was up until now a scientifically unresolved area, and partial theories were taken as models at various times and places depending on political circumstances. The Marxist labor theory of value, stating that value of a commodity equals the amount of labor put in its production, is just as inadequate as the theory of subjective (marginal) utility approach that modern global economy is based on. Mr Stojan Nenadović has discovered a more complete theory of value, with the added benefit of common sense and simplicity, so anyone can read it and indeed everyone is invited to. You will also learn about the true nature of money and about a monetary system that could facilitate a successful market economy that is free from all ills mentioned above, and in addition, free from perpetual indebtedness, as well as from inflation and deflation of currency, for once and for all.

This is not an academic paper. View it rather as an economic primer. This is about your right to understand money and about the origin of your right to possess money. It is about an economic system that ordinary men and women would finally be able to grasp, and they have every right to do so.

Please read the articles in the order they are presented on the left. The first three are essential:
1. What Are, Really, Economic Laws?
2. Theoretical Nature of Non-credit Money
3. An Essay on Society

Please leave your comments and questions on the Comments page.
You can write privately to Mr Nenadović at stojan.nenadovic@gmail.com