Why index the private currency to the government-issued currency?
Our current nominal monetary system is based upon the government-issued currency (i.e. the U.S. dollar), which is true in virtually every country around the world. In creating a private currency that is inflation adjusted, we must index it to the local government currency in order to measure inflation and deflation over time. Without using this procedure, we would not be linking the coming real monetary system with the current nominal monetary system in the marketplace. In fact, we see no problem with the use of the government-issued paper currency; provided only, that such usage involves short-term periods before inflation or deflation can affect the use of your money. In essence, the paper currency issued by the government is a real currency, until inflation and deflation begin to impact its purchasing power. The problem arises when we use the monetary unit on the government-issued currency to represent purchasing power in our monetary equivalents and financial contracts over time. T
