Group Investment Plan

Proverbs 18:1 (HCSB)
1 One who isolates himself pursues selfish desires; he rebels against all sound judgment.

The scripture above could be applied to someone who isolates himself and tries to “go-it-alone” as in the case of the before mentioned real estate club where the founder attempted to try real estate investment on his own but failed. Those who stayed within the club however continued to prosper wonderfully as a group. So sometimes there is wisdom in making “group-vestments” as seen in the example of the real estate club. Again, see the link “KMI2 Family Plan” under the topic “When Laboring Men Prosper” for more details.

Main Financial Principle

The main principle or “financial theme” that we want to promote here is that if we can pool our resources together as a group, then we can accomplish much more than if the same number of individuals attempt to do investments on their own.

Group Investment

As part of a group investment program, we plan to have our own currency which derives its value from assets of “actual physical value” which can never be devalued by mismanagement and over-multiplication of currency. This has frequently occurred in many different nations (in past history) when politicians and bankers attempt to create wealth by printing more fiat currency. Millions of people worldwide have had their life savings wiped out by inflation throughout many nations (due to the mismanagement and over-printing of money). See the link “Value of Currency” for more details.

Creating Our Own Secure Currency

A group of people can therefore join together and utilize their own banking software and issue units of currency based upon “actual physical value” rather than on a government fiat currency that is open to abuse by over-multiplication. See the link “New Financial System” for more details.

Also in the example of using a “gold standard” the price of gold fluctuates according to demand. When people see that their savings in fiat currency is becoming devalued they will try to purchase gold and this increases the demand and the price. Gold prices typically increase when fiat currencies are being abused and over-multiplied by inept politicians and bankers. Also when fiat currencies become inflated then it requires more fiat currency to purchase an ounce of gold. Gold has often been used as a standard of value compared to fiat currencies which value can be devalued greatly if it no longer represents anything of actual physical value.

It should be noted that during the 1930’s economic depression, the value of fiat currency become nearly worthless worldwide. But at that time there was an international group of businessmen that gathered together in Shanghai China and they created their own currency based on gold coin. So this group created an economy of their own and they bought and sold goods based on gold (since all fiat currency was basically worthless at that time). Only within this one international city and among these international traders (using gold for trading) did they escape the great depression. There is much to be said for creating a local currency based upon a “medium of exchange” that is established upon something of actual physical value – like gold.

Using gold coin as a “medium of trade” worked well in Shanghai in the 1930’s simply because it was medium of currency that all parties were willing to accept for trade as based on the value of the gold itself. But in a time of great economic collapse products like “food” can become more valuable than gold simply because humans cannot eat gold.

Value of a Production System

Under our system therefore the value of each unit of currency is based upon the production of our assets. The Family Production Unit (FPU) is an automated system that can produce energy and food and products needed by humans. Therefore the value of what is produced by the FPU gives value to each unit of currency.

Establishing Currency “Unit-Value”

In the example of Bitcoin, (at the time of this writing) one bitcoin was valued at 104,000 USD. In order for people to actually use bitcoin for purchases they would have to use fractions of the value of one-bitcoin. So if one bitcoin is valued at $104,000.00 USD then a bitcoin fraction of (.01) would be valued at $1,040.00 USD and .001 would be valued at $104.00 USD and .0001 would be valued at $10.40 USD and so on.

Using the example of the value of one bitcoin at $104,000.00 USD, (and adding a zero to this figure) suppose that the value of a FPU (at time of completion) was 1,040,000.00 USD. So fractions .01 of this figure would be worth $10,400.00 USD and a fraction of .001 would be $1,040.00 and a fraction of .0001 would be $104.00 USD.

The FPU system is a “producing asset” just like an “oil well” or a “gas well” that can produce a commodity of value (such as oil or gas). The value of an oil or gas well is found in the amount of product it can produce (minus the cost to build it). In the same way, the value of our FPU is determined by the revenue streams that it can produce (mins the cost to build the FPU system).

What we plan to do is take the cost of the FPU system (at time of completion) and assign this figure as the value of one unit of currency. Then when this system is under production we will add up all of the income revenue streams that this system produces for a month. This production value can be expressed in a fraction of the unit of currency assigned to that FPU. Thus the FPU “revenue streams” are expressed in factions of the value of the FPU system. Once the cost of building the FPU system is paid in full, then these revenue streams will be assigned as units of electronic currency for the new owner of the FPU.

We will use Cyclos Payment software to record the balance of currency units that each FPU owner accumulates through the production of their FPU system. This means that each unit of currency is based upon production of something of actual physical value. Therefore, our currency is not just created out of “thin-air” in the way that hyper-inflation nations create currency out of nothing. Again, see the link “Value of Currency” for more details. Instead, each unit of our currency is created and valued by the production of things of actual physical value. These newly created units of currency are then accounted for using Cyclos Payment software. Our members can utilize this payment software for instant payments to buy any goods or services we have available within our community.

Typically, the FPU production income will go toward the payment of the cost of building the FPU system. But members can borrow funds from our association for the purchase of necessary things, until such time that their FPU system in paid in full. Once it is paid in full, then all of the income of their FPU system can be credited to their account using their own units of electronic currency.

In the case of buying items which our community does not manufacture, we would have to sell products outside of our system to gain currency needed to buy outside products. Our association will therefore manage a “currency exchange” for the purpose of purchasing outside products. But eventually we hope to have all of the essential products created within our own system (and also include a great deal of luxury items provided as well) to meet the needs of our members. Members will be able to purchase products within our system using the units of currency they earn and using our payment software to complete the purchases instantly. Outside goods and products and materials will be purchased with fiat currency through our currency exchange until such time as we can produce what we need for ourselves within our own community.