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Turning Food Into Currency

7/29/2019

 
​Food has real value.  It takes months to grow food.  As someone plants seeds, worth is created.  As the crops are maintained greater worth is added.  The labor hours of harvesting the crops add to the worth.  Processing the food adds even more value.  Delivery and merchandising the food in a convenient location has real worth and adds value.  
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The consumer pays for all that value, takes all that worth and consumes it.  The consumption of food has real worth to a person; however, the food no longer has value.  Everything is meant to be consumed, some things quickly and other things over many years.  This is why everyone has to keep working day after day.  ​
​Many people lend money to farmers in hopes of making a return on investment.  It is well known that every aspect of bringing products to market adds value.  Risk pools are helpful.
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​‘Skin in the game’ by the primary managers and decision makers are advantageous.  Prior success and experience are valuable.  However, certain banks would likely apply the value of food in their portfolio backing up their currency.
​Under Haley2024’s Monetary Policy, people holding currency can go to any bank to exchange their currency for items of real worth such as Gold, silver, stocks, bonds, deeds to real-estate and other items that can be put into a bank vault.
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​ However, the portfolio might have ownership of 20% of a grocery store’s consumable product, thus giving holders of currency the right to turn their currency into food. 
​As currency is exchanged for items in the portfolio, the currency is turned into the bank where it loses value.  When new food is produced, value and worth of that food is turned into currency to start the cycle again. 
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​While food only holds value for months, the ongoing production of food yields a consistent value.  Undoubtedly a percentage of that worth can safely be turned into currency.  Having a dozen Financial CRA’s, thus a dozen asset portfolios backing up currency will yield many models and results.     
​The consumer buying the groceries gives every labor hour used to put that product on the shelf real justifiable worth.  The producers of seeds worked and were paid.  The producers of the tractors worked and were paid.  The farmhands worked and were paid. 
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​The farmers worked and were paid.  The delivery drivers worked and were paid.  The food processors worked and were paid.  The grocery personnel worked and were paid.  While very complicated, all that pay needs to come from the final customer and consumer.
​ If a consumable item yields enough to pay for all the labor hours of the millions of people involved, the business is viable.  If customers are not willing to pay the necessary price to pay all the work hours needed to bring a product to market, the business model fails. 
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​Losses are taken, and labor hours are directed by other people with better business models.  Currency is a service from free enterprise’s invisible hand keeping a ledger that facilitates one-sided provision, yet two-party trades at different times, at different values, and the services provided going to the universe of all traders.

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