NOTE (2010-10-03): This knol has been written on September 22 & 24 of 2008 (but for a couple of minor edits). In the past two years my thinking about the presented problems has much advanced, making this knol obsolete. I’ll still keep it since it may help others as a starting point for their own study of the global i local financial questions.
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Today (2008-Sept) the meaning of money is somewhat vague, which leads to economic problems. Money used to be equivalent to gold, which had its advantages but also disadvantages, so that the gold based monetary system is abandoned. But a system based on a parallel three kind currency: food+shelter+clothes, would be viable. It would prevent both inflation and deflation., i.e. it would contribute toward a stable and prosperous society.
This text discusses:
1. the reasons behind introducing money;
2. industry
3. the value of money;
4. stable n-s-c money system;
5. secure pension;
6. a smooth transition from the present system to n-s-c system
7. a financially productive life plan
More detailed financial economical moments like for instance a comparison of the cost of living alone and living in a financial community of a group of people (say family or close friends), are not touched upon in this text.