The growth and use of Secondary Capital—New Money—creates unprecedented wealth in this new age of possibility…

It’s no secret that governments are slowly losing control of their monetary systems in the global marketplace, as capital movements have sprung free of most national controls.

Consider that the relative values of national currencies are increasingly set by the vast, rapidly moving currency exchange market rather than by government policy. In short, in the new open world economy, the markets have a freer play in judging currency values.

And, as civilizations get more efficient in the processing of information, a government’s control of money will be even less of a force in the nation’s economy.

In the coming millennium we will experience a profound monetary change…and it will create an age of possibility such as the world has never known!

Increasingly, the answer to the question “Does money exist?” is no. Because high speed computers and fiber-optic communications are already dramatically changing the nature of financial transactions and the way we do business.

The definition of old money, as learned in Economics 101—that money is a store of value and a medium of exchange in the form of paper and coins—will be replaced by a new one of today’s information age.

The new mints and engravers won’t be the central bankers as we’ve known, but companies like GE, AT&T, Mastercard and Visa. And will include a myriad of smaller entities, both here and abroad, which supply the informational ingredients of money. Information about who earned a credit yesterday, or who can be trusted to pay back a debt tomorrow.

The “new money,” no longer defined by the agricultural and industrial ages, is less a medium of exchange and more a measure and comparison of value, controlled almost entirely by the free market. The implications of moving from “old money” (paper & coins) to an electronic measure of value is dramatic!

Innovative organizations, using the latest in information technologies, are leading us to the time when every producer will have the ability to instantaneously locate parties that want their product and parties that have what they need—possibly eliminating money entirely as a medium of exchange.

Today paper money is no longer a store of value for us. We choose to store our wealth in other forms, like stocks and bonds, and many other financial instruments that derive value from the underlying assets.

Money stored in a stock is backed not by the full faith and credit of the government, but by the publicly-traded stock. The stock derives its value from the corporate asset it represents, from the opinions of financial analysts, and from shareholders who own the company.

So today money functions as a measurement, a way of communicating value in a common language. As the tools of the electronic age permit companies to create more and more financial instruments, our options will increase. Whereas the amount of time assets are actually stored as money will continue to shrink.

Therefore the “old money” will constitute a smaller and smaller fraction of our asset base, and exist for shorter and shorter periods of time. Until, for all practical purposes, it won’t exist at all.

More and more private companies are moving to create new forms of secondary capital. As money continues to evolve into a measurement systems, the implications are dramatic.

In short, the growth and exposure of competing monetary systems as well as every conceivable kind of secondary capital—stocks, bonds, options, warrants, derivatives, commercial paper, leasebacks, accounts receivable, gift certificates, frequent flyer miles, private credit cards, smart cards, unused production capacities, due bills, scrip, trade dollars—collectively becomes the new money of the next century. And it will create unprecedented wealth in this new age of possibility!

Trade Dollars Are A Valuable Form Of Secondary Capital

Secondary capital or “new money” can be defined as any financial instrument that measures and communicates value in a common language—and that certainly encompasses your trade dollars.

Today’s electronic, information age increasingly creates more options and opportunities. And money, as we have known it is rapidly evolving into various measurement systems.

As more and more private companies create new forms of money, the use of this secondary capital expands…and greater wealth is the result.

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This entry was posted on Tuesday, March 18th, 2008 at 10:38 am and is filed under Best & Brightest Barter, Global Environment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.