1. The document describes an electronic currency system involving citizens (C1, C2, etc.), government (G), entrepreneurs (E), banks, and the overall economy.
2. The system uses a balance sheet approach to track capital, loans, deposits, e-currency holdings, and projects across these entities.
3. As the system cycles, e-currency is introduced, loans are taken out, projects are funded, and income is generated, demonstrating a functioning monetary system without inflation or liquidity issues.
Course material for An introduction to keeping financial records in business for small and medium sized enterprises organised by the Lagos hub of the Global Shapers with support from Abraaj for small and medium enterprises in Lagos NIgeria held in June 2016
Net operating income (NOI) is a calculation used to analyze the profitability of income-generating real estate investments. NOI equals all revenue from the property, minus all reasonably necessary operating expenses.
2. Balance sheet
Liabilities
Capital =1000
Loan =0
Total =1000
Assets
Projects = 0
E-Currency =1000
Total =1000
Balance sheet
Liabilities
Capital =1000
Assets
E-Currency =1000
Balance
=1000
Balance sheet
Liabilities
Capital =1000
Assets
E-Currency =1000
Balance sheet
Liabilities
Capital =1000
Loan =0
Total =1000
Assets
Projects = 0
E-Currency =1000
Total =1000
ECONOMY
Balance sheet
LIABILITIES
Capital Rs. 4,000.00
Bank Deposits Rs.4,000.00
Loans Rs. 0
TOTAL Rs. 8,000.00
ASSETS
E-Currency
(i) with bank Rs. 4,000.00
(ii) with others Rs. 4,000.00
Projects Rs 0
Loans & Adv Rs 0
TOTAL Rs. 8,000.00
Bank
Balance sheet
Liablilities
Capital =0
Deposits
C1=1000
C2=1000
G=1000
E=1000 =4000
Total =4000
Assets
Loans & adv =0
E-Currency =4000
Total =4000
C1 C2 G E
Initial
Money
introduced
Balance
=1000
Balance
=1000
Balance
=1000
3. Balance sheet
Liabilities
Capital =500
Assets
E-Currency =500
Balance=500
Balance sheet
Liabilities
Capital =1500
Assets
E-Currency =1500
Balance=1500
C1 C2
Rs. 500.00
Since the money at any point of time is
both with the bank & the citizens,
therefore there can never be any liquidity
crunch
Balance sheet
Liabilities
Capital =1000
Loan =0
Total =1000
Assets
Projects = 0
E-Currency =1000
Total =1000
Balance sheet
Liabilities
Capital =1000
Loan =0
Total =1000
Assets
Projects = 0
E-Currency =1000
Total =1000
G E
Balance
=1000
Balance
=1000
ECONOMY
Balance sheet
LIABILITIES
Capital Rs. 4,000.00
Bank Deposits Rs.4,000.00
Loans Rs. 0
TOTAL Rs. 8,000.00
ASSETS
E-Currency
(i) with bank Rs. 4,000.00
(ii) with others Rs. 4,000.00
Projects Rs 0
Loans & Adv Rs 0
TOTAL Rs. 8,000.00
Bank
Balance sheet
Liablilities
Capital =0
Deposits
C1=500
C2=1500
G=1000
E=1000 =4000
Total =4000
Assets
Loans & adv =0
E-Currency =4000
Total =4000
4. Loan Rs 2000.
Debt-financing
technique gets
initiated here
Balance sheet
Liabilities
Capital =500
Assets
E-Currency =500
Balance=500
Balance sheet
Liabilities
Capital =1500
Assets
E-Currency =1500
Balance=1500
C1 C2
Balance sheet
Liabilities
Capital =1000
Loan =0
Total =1000
Assets
Projects = 0
E-Currency =1000
Total =1000
E
Balance
=1000
Balance sheet
Liabilities
Capital =1000
Loan =2000
Total =3000
Assets
Projects = 0
E-Currency =3000
Total =3000
G
Balance
=1000
Bank
Balance sheet
Liablilities
Capital =0
Deposits
C1=500
C2=1500
G=3000
E=1000 =6000
Total =6000
Assets
Loans & adv =2000
E-Currency =4000
Total =6000
ECONOMY
Balance sheet
LIABILITIES
Capital Rs. 4,000.00
Bank Deposits Rs.6,000.00
Loans Rs. 2,000.00
TOTAL Rs. 12,000.00
ASSETS
E-Currency
(i) with bank Rs. 4,000.00
(ii) with others Rs. 6,000.00
Projects Rs 0
Loans & Adv Rs 2000.00
TOTAL Rs. 12,000.00
5. Loan Rs 2000.
Balance sheet
Liabilities
Capital =500
Assets
E-Currency =500
Balance=500
Balance sheet
Liabilities
Capital =1500
Assets
E-Currency =1500
Balance=1500
C1 C2
Balance sheet
Liabilities
Capital =1000
Loan =2000
Total =3000
Assets
Projects = 0
E-Currency =3000
Total =3000
E
Balance
=3000
Balance sheet
Liabilities
Capital =1000
Loan =2000
Total =3000
Assets
Projects = 0
E-Currency =3000
Total =3000
G
Balance
=3000
Bank
Balance sheet
Liablilities
Capital =0
Deposits
C1=500
C2=1500
G=3000
E=3000 =8000
Total =8000
Assets
Loans & adv =4000
E-Currency =4000
Total =8000
ECONOMY
Balance sheet
LIABILITIES
Capital Rs. 4,000.00
Bank Deposits Rs.8,000.00
Loans Rs. 4,000.00
TOTAL Rs. 16,000.00
ASSETS
E-Currency
(i) with bank Rs. 4,000.00
(ii) with others Rs. 8,000.00
Projects Rs 0
Loans & Adv Rs 4000.00
TOTAL Rs. 16,000.00
6. Rewards
2000.00
System created
Money
= (E-currency in
hand with others) –
(Initial money
introduced)
= Rs 8000-4000
= Rs 4000.00
Real wealth
being created
here
Thus
the first
income
cycle is
created
Balance sheet
Liabilities
Capital =500
Assets
E-Currency =500
Balance=500
Balance sheet
Liabilities
Capital =3500
Assets
E-Currency =3500
Balance=3500
C1 C2
Balance sheet
Liabilities
Capital =1000
Loan =2000
Total =3000
Assets
Projects = 0
E-Currency =3000
Total =3000
E
Balance
=3000
Balance sheet
Liabilities
Capital =1000
Loan =2000
Total =3000
Assets
Projects =2000
E-Currency =1000
Total =3000
G
Balance
=1000
Bank
Balance sheet
Liablilities
Capital =0
Deposits
C1=500
C2=3500
G=1000
E=3000 =8000
Total =8000
Assets
Loans & adv =4000
E-Currency =4000
Total =8000
ECONOMY
Balance sheet
LIABILITIES
Capital Rs. 6,000.00
Bank Deposits Rs.8,000.00
Loans Rs. 4,000.00
TOTAL Rs. 18,000.00
ASSETS
E-Currency
(i) with bank Rs. 4,000.00
(ii) with others Rs. 8,000.00
Projects Rs 2000.00
Loans & Adv Rs 4000.00
TOTAL Rs. 18,000.00
7. Rewards Rs 2000.00
(Money deposited with the bank) =1
(Money in circulation)
Hence, the intrinsic value of money
remains at par all the time. As a
consequence, the question of Monetary
Inflation does NOT arise at all.
Balance sheet
Liabilities
Capital =2500
Assets
E-Currency =2500
Balance=2500
Balance sheet
Liabilities
Capital =3500
Assets
E-Currency =3500
Balance=3500
C1
Balance sheet
Liabilities
Capital =1000
Loan =2000
Total =3000
Assets
Projects =2000
E-Currency =1000
Total =3000
E
Balance
=1000
Balance sheet
Liabilities
Capital =1000
Loan =2000
Total =3000
Assets
Projects =2000
E-Currency =1000
Total =3000
G
Balance
=1000
C2
Bank
Balance sheet
Liablilities
Capital =0
Deposits
C1=2500
C2=3500
G=1000
E=1000 =8000
Total =8000
Assets
Loans & adv =4000
E-Currency =4000
Total =8000
ECONOMY
Balance sheet
LIABILITIES
Capital Rs. 8,000.00
Bank Deposits Rs.8,000.00
Loans Rs. 4,000.00
TOTAL Rs. 20,000.00
ASSETS
E-Currency
(i) with bank Rs. 4,000.00
(ii) with others Rs. 8,000.00
Projects Rs 4000.00
Loans & Adv Rs 4000.00
TOTAL Rs. 20,000.00
8. Loan Rs 1500.00
Loan Rs 2500.00
System created
Money
= (E-currency in
hand with others) –
(Initial money
introduced)
= Rs (12000-4000)
= Rs 8000.00
Balance sheet
Liabilities
Capital =2500
Assets
E-Currency =2500
Balance=2500
Balance sheet
Liabilities
Capital =3500
Assets
E-Currency =3500
Balance=3500
C1
Balance sheet
Liabilities
Capital =1000
Loan =4500
Total =5500
Assets
Projects =2000
E-Currency =3500
Total =5500
E
Balance
=3500
Balance sheet
Liabilities
Capital =1000
Loan =3500
Total =4500
Assets
Projects =2000
E-Currency =2500
Total =4500
G
Balance
=2500
C2
Bank
Balance sheet
Liablilities
Capital =0
Deposits
C1=2500
C2=3500
G=2500
E=3500 =12000
Total =12000
Assets
Loans & adv =8000
E-Currency =4000
Total =12000
ECONOMY
Balance sheet
LIABILITIES
Capital Rs. 8,000.00
Bank Deposits Rs.12,000.00
Loans Rs. 8,000.00
TOTAL Rs. 28,000.00
ASSETS
E-Currency
(i) with bank Rs. 4,000.00
(ii) with others Rs. 12,000.00
Projects Rs 4000.00
Loans & Adv Rs 8000.00
TOTAL Rs. 28,000.00
9. Remun Rs 2000.00
Real wealth
gets increased
Thus
the
second
income
cycle is
created
Balance sheet
Liabilities
Capital =3700
Assets
E-Currency =3700
Balance=3700
Balance sheet
Liabilities
Capital =5500
Assets
E-Currency =5500
Balance=5500
C1
Balance sheet
Liabilities
Capital =1000
Loan =4500
Total =5500
Assets
Projects =4000
E-Currency =1500
Total =5500
E
Balance
=1500
Balance sheet
Liabilities
Capital =1000
Loan =3500
Total =4500
Assets
Projects =3200
E-Currency =1300
Total =4500
G
Balance
=1300
C2
Rs 1200.00
Bank
Balance sheet
Liablilities
Capital =0
Deposits
C1=3700
C2=5500
G=1300
E=1500 =12000
Total =12000
Assets
Loans & adv =8000
E-Currency =4000
Total =12000
ECONOMY
Balance sheet
LIABILITIES
Capital Rs. 11,200.00
Bank Deposits Rs.12,000.00
Loans Rs. 8,000.00
TOTAL Rs. 31,200.00
ASSETS
E-Currency
(i) with bank Rs. 4,000.00
(ii) with others Rs. 12,000.00
Projects Rs 7200.00
Loans & Adv Rs 8000.00
TOTAL Rs. 31,200.00
10. To summarize…
1. Global Economic Recession: The E-Currency System is the only remedy to the worldwide
crisis, and the only Solution that addresses the root cause, of the global recession.
2. Terrorism can be countered easily, since all transactions are accounted for in this
completely computerized system. Hence, unaccounted money becomes a thing of the past.
3. Safe and Secure monetary system: The Laboratory Research Model of the E-Currency
System has been validated by the technocrats to have three different layers of security in the
software design, as well as three layers of protection in the electronic purse, or electronic
“store of money”, which they call the Electronic Currency Machine. This Machine, being
totally offline, removes any security threat found in the networked payment systems.
4. Sound and Robust monetary system: The Banking System we @ Electronic Currency
Time.com have developed is comprehensive, efficient, and built on sound engineering
principles.
5. Poverty can actually be alleviated, or even eradicated, since the Real Wealth that gets
generated by the Income Multiplier Effect in this case, tends to Infinity, because the income
cycle can rotate in the economy any number of times in the E-currency System. The rotation
of the income cycle is NOT limited by any “cash reserve” in this case, as all money is in digital
form.
11. To summarize…(contd.)
1. Money deposited in the banks is ALWAYS equal to the Money in circulation, keeping the
intrinsic value of money at par. As a consequence, there is NO question of Monetary Inflation
in this system.
2. There can NEVER be any “Liquidity Crunch” whatsoever, since all the money is deposited with
the banks all the time, and can be used by all the citizens at the same time – a “dual pocket”
benefit of the E-currency System.
NOTE:
The concept has been implemented, and tested by this Team, as a Laboratory Research Model,
a working prototype that proves its claims, and has also been widely publicized by two greatly
respected global economic journals –
• The IJCCR (International Journal of Community Currency Research, England):
– http://www.uea.ac.uk/env/ijccr/abstracts/vol9(2)sharma.html
• And the WFS (World Future Society, USA):
– http://www.wfs.org/sharma08.htm