How Pointization Counteracts Inflation and Deflation
Table of Contents
The weakness of the money system is that it has no foundation or basis.
This is corrected by Pointization where we base the real value of everything on the retail price of the common grain. This leads to the following scenarios:
Scenario | Rice | Others |
---|---|---|
1 | stable | up |
2 | down | up |
3 | up | up |
4 | down | stable |
5 | up | stable |
6 | stable | down |
7 | down | down |
8 | up | down |
1. Rice Price Stable, Other Prices Inflate
In the scenario below, the price of a phone is known to double tomorrow.
Item | Price Today | Price Tomorrow |
---|---|---|
Rice Price | $1 | $1 |
Phone Price | $100 | $200 |
Therefore, the money system will make people buy the phone today rather than pay double tomorrow.
The same result will happen in the points system. Buying the phone today will make you get a 100 points debt. You can pay it tomorrow for the same 100 points.
Like the money system, you will not buy the phone tomorrow since it will cost 200 points.
System | Buyer Action | Seller Action |
---|---|---|
Money System | Buy now | Sell tomorrow |
Points System | Purchase now | Sell tomorrow |
2. Rice Price Falls, Other Prices Inflate
Here, the price of a phone doubles, while the price of rice halves.
Item | Price Today | Price Tomorrow |
---|---|---|
Rice Price | $1 | $0.50 |
Phone Price | $100 | $200 |
The points system will make purchasing the phone today more important because it will cost 100 points which will then be paid in half tomorrow.
System | Buyer Action | Seller Action |
---|---|---|
Money System | Buy now | Sell tomorrow |
Points System | REALLY Purchase now | Sell tomorrow |
3. Rice Price Inflates with Other Prices
Here, the price of phone and rice doubles.
Item | Price Today | Price Tomorrow |
---|---|---|
Rice Price | $1 | $2 |
Phone Price | $100 | $200 |
The money system will make you buy the phone today, but the points system will not.
The points systerm will discourage you from buying the phone wheter the price of rice goes up to $4 or to $1.5
System | Buyer Action | Seller Action |
---|---|---|
Money System | Buy now | Sell tomorrow |
Points System | No Change | No Change |
4. Rice Price Falls, Other Prices Stable
Here, the price of phone is stable, but rice falls.
Item | Price Today | Price Tomorrow |
---|---|---|
Rice Price | $1 | $0.5 |
Phone Price | $100 | $100 |
The money system has no change.
But the points system will make you buy the phone today so you can pay it in half tomorrow.
System | Buyer Action | Seller Action |
---|---|---|
Money System | No Change | No Change |
Points System | Buy Now | Sell Tomorrow |
5. Rice Price Increases, Other Prices Stable
Here, the price of phone is stable, but rice inflates.
Item | Price Today | Price Tomorrow |
---|---|---|
Rice Price | $1 | $2 |
Phone Price | $100 | $100 |
The money system has no change.
But the points system will make you buy the phone tomorrow when it will be 50 points.
System | Buyer Action | Seller Action |
---|---|---|
Money System | No Change | No Change |
Points System | Buy Tomorrow | Sell Now |
6. Rice Price Stable, Other Prices Go Down
Here, the price of a phone falls while rice stays the same.
Item | Price Today | Price Tomorrow |
---|---|---|
Rice Price | $1 | $1 |
Phone Price | $100 | $50 |
Both the money system and the points system will make people buy the phone tomorrow.
System | Buyer Action | Seller Action |
---|---|---|
Money System | Buy Tomorrow | Sell now |
Points System | Purchase Tomorrow | Sell now |
7. Rice Down with Other Prices
Here, the price of the phone and rice fall.
Item | Price Today | Price Tomorrow |
---|---|---|
Rice Price | $1 | $0.5 |
Phone Price | $100 | $50 |
The money system will make people buy the phone tomorrow, but the points system will stay the same.
System | Buyer Action | Seller Action |
---|---|---|
Money System | Buy Tomorrow | Sell now |
Points System | No Change | No Change |
8. Rice Up, Other Prices Down
Here, the price of the phone falls while rice goes up.
Item | Price Today | Price Tomorrow |
---|---|---|
Rice Price | $1 | $2 |
Phone Price | $100 | $50 |
The money system will make people buy the phone tomorrow, but this is more true with the points system
System | Buyer Action | Seller Action |
---|---|---|
Money System | Buy Tomorrow | Sell now |
Points System | REALLY Purchase Tomorrow | Sell now |