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Auricoin Money Stability

What is essential to achieve economic and social development is simply that the money used for the purchase and sale and payment of debts is stable, since its role is to contribute to the balance of the economy.

With Auricoin money in the economic field, new and forgotten theories are applied, which academics continue to teach in universities for 80 years, and are present in the study curriculum in economics careers, but which are impossible apply, with these types of currency cones that are used and have been used in world economic history.

Creating a stable monetary cone reduces or minimizes cyclical variations in the level of economic activity and in the general price level.

The stability of Auricoin money will be reflected in the constancy or little variation over time of three conceptually independent aspects, although economically related:

— Maintaining full employment.
— Stability of the General Price Level.
— The external balance.

With Auricoin money, the high instability of the employment level is avoided, which translates into economic conflicts when the level falls, the sharply decreasing price levels tolerate deflation that is usually accompanied by a decline in economic activity and, in general, increasing unemployment. Subsequently, the imbalance in the balance of payments can lead to speculative financial aggressions, currency devaluations and alteration of price levels.

With the monetary cones that are currently being used, it is inevitable that inflation will appear at any time, which mixes difficulties and risks, and is also a long process to control, because the measures taken are restrictive and tend to reduce the production and employment, before the benefits become apparent, which will last a very short time and it usually reappears. On the other hand, depressive fiscal and monetary measures tend not to develop the level of economic activity, causing prices to rise.

A stable and immovable currency such as Auricoin money is a guarantee of stabilization, which completely cancels out inflationary and deflationary effects, and also has the potential to restore the normal level of economic activities.

With the current monetary cones, which base their value on supply and demand, the monetary power will impose economic instability, if private investment and consumption continue to create inflationary or deflationary pressures, or if the rest of the economic policy enters into contradiction with anti-inflationary monetary policy. Public spending and the tax policy applied with monetary action, hoping to achieve stability and avoid excessive oscillations in economic policy, are not achieved; current examples are the cases of Argentina and Venezuela. Governments have to finance their huge budget deficits either by borrowing or by issuing money. These measures, which are always adopted to control inflationary pressures, do not succeed and if they do, it is because of tightening the pockets of taxpayers and they will appear again, which is inevitable.

The stability of the Auricoin money was achieved, by applying a golden rule in its creation, this is: the purchase-sale value of 1 Auricoin, is equal to the purchasing power of $ 888.88 USD, for November 23, 2018.

With this created rule, which was applied to it, it was perfectly possible to give the Auricoin money a referential value, which makes it immovable, so that it perfectly fulfills how money should be: Unit of Account, Deposit of Value and Medium of Exchange.

In addition, the theories about the cost of producing a good or service are perfectly applicable, which thousands of economics scholars have left inscribed in their books. We are going to give a simple example to better understand the subject, for example: suppose we are going to manufacture pants, for the manufacture of these we are going to take the cost:

Raw material. $ 5.80 USD
Labor. $ 1.20 USD
Desired profit 30%. $ 2.10 USDSale value $ 9.10 USD

These costs can be applied perfectly, using Auricoin money, being the correct way to get the cost of producing a good, as can be seen, and the cost of money is not appreciated in this simple equation, because Auricoin money does not influence the cost of producing these pants. If, on the contrary, the cost is obtained with another type of monetary cone, the producer must add the cost of this, and not only its value, must project the inflation that occurs in the production cycle and also the devaluation, for example, the US dollar has suffered an annual devaluation of 3.80% since 1971.

In most countries of the world, exchange rates are determined under the free-floating exchange rate regime. The Exchange Commission being the one that empowers the Central Banks to carry out operations in the exchange market.

Another factor that determines the value of a currency is the application of the Law of supply and demand, this theory created to be applied exclusively to goods and services by Jean Baptiste Say, would never cross his mind to Jean, who years later it would be applied to money. Here we bring you the theory.

Say’s law is also known as the “law of the markets.” It proposes that the total production of goods in a given society or economic system implies an aggregate demand that is sufficient to buy all the goods that are offered. That is, there is a continuity in circulating money. An important implication of the above is that a recession does not occur due to a failure in demand, for example a lack of demand or a lack of money: since the sale price of each product generates sufficient income or benefits to buy another product, It implies that there can never be an insufficiency of demand since, although people save in the present, they must use (either consume or invest) that money later. Even if many keep their money, the situation will not change substantially: prices will fall and adapt to the lower flow of income, without affecting the use of economic resources to a great extent (in the same way as an increase in money does not increase demand, a reduction in money does not decrease it; only prices change).

By applying this theory to money, he made money could be manipulated, which is the cause of the destruction of the productive apparatus, and brought to the economy several negative factors for it, such as:

Inflation, which for the connoisseurs will appear in the economy for the following cause, which we do not share, according to these: if inflation in one country rises and those of the others do not, then prices increase and exports decrease, which causes a better demand for the currency of the country in question. But if imports increase, then it is cheaper to buy in other countries than in your own, since to buy you have to offer the national currency and automatically the exchange rate falls in relation to the currencies that are demanded.

By the interest rate: the price of money is associated with a currency, in this case the dollar. When the interest rate that financial intermediaries pay for deposits in a certain currency increases, it turns out to be more attractive in the eyes of foreign investors, thereby increasing its demand, increasing its value, and consequently decreasing the exchange rate.

For the appreciation and depreciation forecasts: The future also plays an important role in these currencies, since, if the dollar tends to depreciate or the economic outlook for the United States is not encouraging, then economic agents will want to change it before it depreciates, offering it on the market in exchange for other stronger currencies.

For political changes: a recent example was the victory of Republican Donald Trump, in this case the dollar reached a 7-year high, against other currencies such as the Japanese yen.

These are the main reasons why the dollar fluctuates in value.

By converting money into a good and its value is based on the law of supply and demand, it becomes impossible to use it to get the production costs of a good or service. And there is still more, it makes the value of the good or service more expensive, because it becomes a double cost.

But the problem does not end here, let’s give an example with the Mexican currency, despite the fact that the real value of the Mexican peso has been equal to zero “0” since 1971, this currency being listed in the currency buying and selling market, it can be manipulate and speculate its value perfectly, since this market is governed by the Law of Supply and Demand, its value may be even greater than the good or service that is exchanged for it, something illogical, right, this makes it impossible to use it as Unit of Account or Deposit of Value, due to the fluctuation that this monetary cone undergoes every second in the market from Monday to Friday.

In order for money to fulfill the functions of Deposit of Value and Unit of Account, it must have a referential value that makes it immovable and thus achieve the stability of the currency and therefore the stability of the economy.

The immobility of the value of a currency, makes the economies develop, history reminds us of the mistakes and successes of the past. When the value of money in the world was determined, an ounce of gold was equal to $ 35.00 USD. This stability of money was what drove economic and social development, known in economic history as the Golden Years of Economics.

There is no doubt that this was due to the dollar, which functioned even more effectively as a stabilizer because it was tied to a specific amount of gold, until the system collapsed in 1971. However, it was not that the dollar had the Backing in gold, no gentlemen, they were simple papers, the US had no way to back up all that money supply of dollars brought to the market, but the world did not know it. All the countries of the world had exchanged all their gold, for simple papers called American dollars.

All the governments of the world fell silent, they all wanted to cover up their great mistake, no ruler of the world wanted to give the news, it would be disastrous for the economies of the countries, let it be known, that their reserves were simply papers, without any real value, it would be a disaster not only for the country, but for the world, because it would become a domino effect, it was better to keep quiet, it was better and more convenient to keep silent. Since then, the United States has been identified as the most indebted country on the planet.

A new economic order begins

In the first place, the planetary system had enjoyed stability in another time thanks to the hegemony of the US dollar economy, Now it can only be achieved with Auricoin money, which has the necessary characteristics, to be the stabilizer of the world economy.

A new era begins, with the adoption of the entire Auricoin money society, you can already imagine what can be achieved, using a monetary cone with the characteristics that Auricoin money has, they are unimaginable, it will depend only on the people, to that a new era of free-trade, freedom of capital movement and monetary stability begins that the creators of Auricoin money have in mind. This will certainly be achieved as long as everyone uses Auricoin money. Because it will work even more effectively as a stabilizer of the economy, thanks to the fact that its purchasing power value is referenced at $ 888.88 USD and a cost to use it of only 0.10% per year.

The first to adopt and accept it as a means of payment is the productive and industrial sector, which has been one of the sectors hardest hit by the entry into the fiat money market.

The Auricoin money has already been created, it is available to all people regardless of their creeds, races or social strata. It is the only monetary cone that will bring global economic stabilization, which will be transformed into progress, wealth and development for all equally.



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