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Extended System

Public Power

During the transition stage, public power must exist, with the following purposes:

  • Use violent institutions to protect the time economy and stop forces that violently undermine the system
  • Improve laws, regulations, and government functions
  • Supervise banks and enterprises for compliant development
  • Continuously eliminate government, state, laws, and currency, abolish distribution by labor, and move toward communism

Transformation of Private Ownership

Regarding private ownership, later sections will demonstrate: the market forces capitalists to engage in labor.

Therefore, the government's function is: to unite market and government forces to reform capitalists and private ownership, exploring new production relations under the time economy.

Storage and Loans

Loans

Individuals can use their own currency for loans, simply issuing currency for future periods. Since currency for more distant periods carries greater risk, its selling price is lower. Compared to future use, individuals effectively bear an interest rate, called the time discount effect.

In theory, the degree of time discount will reach equilibrium with the issuer's breach rate. Therefore, issuing large amounts of currency does not directly represent the issuer's loss, but the total value of their liquid currency will decrease.

Banks can be authorized by currency organizations to issue organizational currency, which can be exchanged with members' personal currencies. Large-scale lending of such organizational currency also faces the time discount effect, providing society with interest-bearing loan channels.

Some banks may issue currencies without a specific date, only a time period. That is, the currency has no maturity date and can be exchanged for a member's personal currency based on the time amount. By omitting the date, this currency provides a risky loan channel, allowing banks to achieve financial leverage.

Storage

Time currency can actually be stored long-term, as long as it is exchanged for currency with a more distant maturity when it is about to mature. The value of such storage faces the following factors:

  • Appreciation:
    • Currency for more distant periods is cheaper, so through continuous exchange and extension, deposits will appreciate
    • Due to the deflation effect, deposits will also appreciate
  • Depreciation:
    • Currency abolition or breach
    • Storage faces storage tax
    • Currency exchange faces circulation tax

In theory, the profit from exchange will reach equilibrium with the loss from currency breach and tax rates. That is, the value of deposits does not change; only increased productivity leads to appreciation.

Banks can undertake both lending and storage functions, helping realize automatic extension of deposits and providing loan services.

National Trade

Import and export trade is necessary but brings some issues:

  • If domestic time currency and foreign currency can be freely exchanged, the effect of the domestic time economy is limited
  • Foreign exchange earned by individuals from exports may not belong to time currency, and private foreign exchange storage will limit the effect of the domestic time economy
  • Imports must be premised on foreign exchange reserves
  • Customs and other regulatory agencies may profit from this

Within an appropriate trade scope, the impact of trade on the domestic time economy is relatively limited. Possible measures include:

  • Strictly supervise and control the exchange between foreign exchange and domestic currency
  • Centralized management of foreign exchange, using blockchain to create on-chain exchange vouchers for foreign exchange, allowing transparent domestic use
  • For corrupt officials, the people can impose punitive taxation, requiring the government to confiscate their illegal foreign exchange
  • Restrict the export of time currency systems abroad