Kilowatt Backed Currency :Renewable energy dollar
Posted July 24th, 2008 by jeff34761
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Kilowatt Backed Currency
It has become painfully obvious the FED and the Treasury are printing more dollars the can ever be backed by gold alone. Ron Paul has even mentioned on several occasions a commodities basket backed currency. The issue is which commodities to use. Farmers will lobby for agriculture commodities, precious metals holders gold and silver, while energy companies may want coal or natural gas part of the basket of commodities.
The renewable energy dollar would appear to present a highly competitive option in providing a reference unit of value, whether or not it is also used to carry out the other functions of money in providing a medium of exchange and a store of value. If a community preferred to adopt a competing currency system based on gold, agricultural commodities, oil, or labor services, then kilowatt-hours of electricity could provide a universal reference unit of value between communities of the world trying monetary and energy policy into one coherent paradigm.
The renewable energy dollar would be far more democratic than gold dollars, as sun, wind, and/or wave energy is available to all communities, whereas gold is not. It is also very democratic within communities since each individual could own his own renewable electrical energy source to supply his own needs and/or to supply to others.
Please take the time to read the above link, it answers issues like storage, redemption, production and feasibility. You will have to use your own judgment as to whether or not it may need a constitutional amendment to incorporate this modern idea into US Monetary/Energy policy.
It should also be noted that China has now become the world's largest gold producer overtaking South Africa.
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lol.... only gold or silver
lol.... only gold or silver should back a currency! why? because it can not be mass produced! or watered down, or messed with! Don't you listen to what Ron Paul says?
as for me and my home, we shall worship the LORD
fail
It lacks several requirements for money.
It is not stable in supply. On the contrary, it fluctuates constantly. It can be produced by anybody in abundance and is consumed at varying rates.
It cannot be easily stored. Who is going to hold onto your life savings of electricity?
It cannot be redeemed. You can't go get it out of the bank and put it in your safe. So there is no check on the accounting.
It is not portable. You can't carry it around.
It is not workable.
at this point even a sausage
at this point even a sausage currency will beat the banana dollar currency.
Well
Don't think it would work. To begin with, you can't export electricity. Thus, the value of the currency would really be backed by energy prices and demand in the US, which are in turn influenced by numerous prices such as natural gas, coal, and of course oil. Electricity demand in the US will probably be shrinking as prices skyrocket and people start finding ways to dump inefficient appliances and lighting sources.
True, electricity has inherent value, but again who could actually (or theoretically) cash in their currency for kilowatt hours? US power plants could feasibly get electricity to Mexico or Canada, but anything beyond that and the AC line loss would be too much (plus you'd have to pay to use the electric grid if you were trying to get power through Mexico to somewhere in Central America, for example).
If you want to back a currency with power, why not use the commodities and resources needed to create the power in the first place? You can load coal, oil, natural gas, uranium, etc. onto cargo ships. Granted that doesn't include renewable energy sources, but they are really insignificant when talking about power production (with the exception of hydro).
"The sinews of war are infinite money" ~ Cicero
Currency root word = Current
I think this more accurately defines an idea I've had for a little while. As replacement for hard money I'd say no. But as a competing currency I can see it. The competition is what would keep each other currency in check.
The ability to produce your own energy and feed it back into the grid decentralizing power distribution I think would be a healthy safeguard against rolling blackouts.
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