Chapter 6d

How Pointization Counteracts Inflation and Deflation

by Juan
4 min read 679 words
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

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