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An Electrical Power Circuit Analysis Analogy, for the study of a new Phenomenon of wealth flow due to Free Money.
A tool for the hive-study of wealth creation in the presence of free money flow.
This story follows on from two previous introductory stories exploring the effects of a new phenomenon; free money, in the presence of global trade and the internet.
Previous research might exist on this subject, but the author finds it most useful for now to explore from first principles, as we are blessed with seeing the phenomenons of free money, and the hive, in operation, for the first time in history.
What is Free Money?
To recap, from the previous two stories, free money is the ultimate conclusion of removing the gold standard from fiat currencies.
This has enabled the value of gold, and the value of currencies to diverge.
To date, that divergence has been something managed, controlled as a very gradual slide in value, such that an approximately linear relationship is maintained between the value of currency, and the value of naturally scarce “assets” such as gold.
In the case that such divergence happens within a financially isolated country, we have seen (Venezuela, the Weimar, Zimbabwe, for example), the currency often “Collapses” into a non-linear, uncontrolled drop in value of the currency, relative to both asset…