Source: Medium, Apr 2016
Buckminster Fuller recommended, in his book Operating Manual for Spaceship Earth, that a global currency be based on energy; he called it the “Kilowatt Dollar”. Thomas Edison envisioned an “energy dollar” after seeing the value of electricity, and Henry Ford also conceptualized backing a currency by a “unit of energy” instead of gold.
If money is tied to a physical quantity of energy, then the total volume of money is determined by the total amount of energy in production. If the energy supply is contracting then the money supply should contract accordingly. Vice versa; if the energy supply is expanding then the money supply should expand as well.
The amount of money will always match the production of goods and services so that there can not be inflation or deflation.
Related Resources:
Journal of the History of Economic Thought, Sep 2006
“Thomas Edison’s Monetary Option”
CryptoVoice, Feb 2014
