Job creation, 22 carat

China is probably moving towards using its own currency for international exchanges, but reluctantly. It now encourages its own population to buy gold, whilst forbidding its export. Possibly with the intention of using it to back its own currency. The use of the dollar for international trade is no longer viewed favourably by China, as it allows the USA to create money to buy oil, and the cost is born by the lowered value of everyone elses dollar holdings. The revolutionary government will follow this example, by encouraging the manufacture of jewelery. Hall marking will be free for 22 carat gold, and where the value of 22 carat gold included in jewelry exceeds one third of the selling price, it will be VAT exempt. Exports will be allowed, and given that England has many skilled jewelery makers, this should create many jobs, as gold flows into the country and is paid for by jewelry flowing out. I am sure that those with money will also take the oportunity to buy the occasional item.

Money should represent work.

The new government will need to make changes to the whole meaning of money. Money should be a devise to facillitate work and commerce, and avoid the need for barter. That way you do work, get money and use it to buy goods and services, which are provided as the result of someone elses work. Untill the first world war, the money in use was worth something, it was made of silver, and larger sums of money were gold or paper backed by gold. For 200 years from about 1700, England controlled a large part of the words economy, with its Empire, and as a result of the Industrial revolution. It more or less managed to keep money stable througout that time. A shilling would buy around the same amount througout that period. There were problems of course, but they were not caused by money itself. Now most people only have a figure on a bank’s computer screen.