icooooMoney Creation Mechanism Produces Unbridled Debt: Pseudo Relationship

between Production of Goods and Services and the Production of Money

Mete Gündoğan , B. Gültekin Çetiner

Abstract

Systemic approach requires processes to be analysed in a unified whole. Once context boundary of a system is

identified, remainings are expected to be in a balanced cycle hence satisfying user requirements. A bottom-up

view reveals that many products constitute a project. Many projects constitute a business. Many businesses

constitute an industry. Many industries may constitute a socio economic system. From a top-down approach,

a socio economic system is an integrated and unified system. One part of it is dealing with the production of

goods and services and counter part of it is dealing with the prodution of money. Production of goods and

services is a well-studied and well-defined scope. On the other hand, production of money is having many

ambiguities to be studied. Having the concept of reciprocity in mind, production of money is creating

significant problems that cannot be underestimated. Initial scarcity of money is resulting in a continuous debt

scheme. That can be identified as Debt Based Monetary System (DBMS) which is behaving irrespective of the

production of goods and services. This article is explaining the fabricated scarcity of money and how that is

covered by the DBMS. Thus this situation let the reason of existence of money be away of production of goods

and services.

Keywords: Debt Based Monetary System, Systems Engineering, Fractional Reserve System, Fractional Reserve Banking

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