Money For Nothing

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Leveraging Sovereign Currency Issuance for Productive Asset Acquisition at Zero Net Cost

Authors: Bob Trower, Genna AI assistant, Claude.ai (AI -- visuals)

Abstract

This article walks through a simple, concrete example showing how a government that issues its own sovereign currency can induce productive economic activity and end up with real assets—like gold—without permanent currency expansion. Using gold as a tangible, widely accepted store of value, the model shows how temporary issuance of fiat currency can be structured to result in zero net currency creation, a gain in public wealth, and broad private-sector benefit. At its core, the model illustrates how belief in the value of sovereign currency can unlock resources and create new wealth from dormant national assets.

The Basic Mechanism

A currency-issuing government like Canada doesn’t need to borrow its own money. It can simply issue it, provided that issuance is targeted toward real value creation...

Step-by-Step Breakdown

Describes the process cycle by cycle, including government issuance, taxation, and gold acquisition. See figure below.



Summary Visual

This system forms a clean economic cycle. [Visual follows.]



Final Tally

Breakdown of totals: $10,000 issued, $10,000 recovered, $1000 in gold retained.



What the Gold Actually Represents

Final $1000 in gold = $500 from taxation, $500 from economic extraction.

Optional: Rebating the Taxes

If taxes are rebated, the public keeps all their earnings; government retains $500 in gold.

Broader Implications

Sovereign currency powers can transform dormant public resources into usable national wealth.

Conclusion

This model provides a concrete example of zero-net-cost asset acquisition by a fiat currency issuer.

References

References


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