Understanding the Credit-to-Credit Monetary System

The Credit-to-Credit Monetary System is a transformative financial framework that fundamentally changes how money is issued and valued by tying it directly to real economic assets, such as receivables, tangible assets, and commodities like gold. Unlike fiat currency systems, which can issue money without any tangible backing, the Credit-to-Credit system ensures that every unit of money is backed by real value, preventing inflationary pressures and currency devaluation.

Below is a detailed explanation of how this system works:

1. Definition of Credit in the Credit-to-Credit System

In this system, credit refers to the right to receive a monetary sum from a debtor based on receivables, contractual obligations, or tangible assets. It represents real economic value that can be used to back the issuance of money.

For example, if a government or company has receivables (such as tax revenues, earnings from contracts, or future payments owed), these can be used to issue money through the Credit-to-Credit system. The credit ensures that all money issued is grounded in real assets, distinguishing it from fiat currency, which is typically issued without direct backing.

2. Credit as the Basis for Issuing Money

In the Credit-to-Credit Monetary System, the issuance of money is based on credit, meaning that any new unit of money (e.g., Central Ura or Central Cru) must be tied to an existing credit (i.e., a valid receivable or asset). This ensures that the system cannot issue money arbitrarily, as is possible with fiat currencies.

For instance:

Central Ura (the money unit issued under this system) is only created if it is backed by real assets or credit. These could include government taxes, business receivables, or other financial assets that guarantee that the money being issued corresponds to actual value in the economy.

This approach eliminates the risk of inflation caused by printing excessive amounts of money since the issuance of new money is limited by the available credit and assets.

3. Measurement of Credit in Grams of Gold

One of the key innovations of the Credit-to-Credit system is that credit is measured in grams of gold. By using gold as a benchmark, the system ensures the value of money remains stable over time, independent of the inflation and depreciation that fiat currencies experience.

1 Credit in the system is equal to 1 gram of gold (or the equivalent USD value of 1 gram of gold).
For example, if the price of gold is USD 80.35 per gram, then 1 credit would be valued at USD 80.35. Similarly, the money issued based on this credit would retain its value as long as it remains backed by tangible assets.

By tying credit to the value of gold, the system ensures that the money issued holds its value over time, protecting both individuals and governments from the devaluation risks inherent in fiat currency systems.

4. Application for Sovereign States

In the Credit-to-Credit system, sovereign states play a key role by incorporating their existing receivables—such as tax revenues, state-owned enterprise earnings, and other financial assets—into a basket of reserve assets. These receivables can then be used to issue credit-based money, ensuring that every unit of domestic currency is backed by real value.

Key advantages for sovereign states include:

Stability: The value of a state’s domestic money will be tied to its receivables, ensuring that the amount of money in circulation is limited by the value of its economic assets.
Measurement in Grams of Gold: The total value of the state’s credit (i.e., its reserve assets) is measured in grams of gold. This stabilizes the value of the state’s money, as the purchasing power is preserved through the relationship to gold.
No Overissuance: A nation cannot issue more money than the value of its credit in the reserve basket, ensuring stability and preventing inflation.

5. Transition from Fiat Currency to Credit-Based Money

Under fiat systems, governments typically issue money without direct backing by assets, which can lead to inflation, especially when excessive amounts are printed or borrowed. The Credit-to-Credit system offers an alternative where all money issued is tied to real, tangible assets, preventing overissuance and devaluation.

Why Transition is Urgent:

Mounting National Debts: Fiat currencies have enabled governments to borrow extensively, leading to escalating national debts. In the Credit-to-Credit system, money issuance is tied to real receivables rather than debt, making it a more sustainable approach to monetary policy.
Inflationary Pressures: Fiat currencies are vulnerable to inflation, which reduces purchasing power. By adopting the Credit-to-Credit system, countries can stabilize their economies and preserve the value of their currency over time.
Asset-Backed Stability: Countries that transition to this system will benefit from the long-term stability that comes from having their money backed by real assets. This protects against currency depreciation and fosters economic confidence.

6. Central Ura and Central Cru

Central Ura and Central Cru are forms of money issued within the Credit-to-Credit system. Both are backed by credit, meaning they are tied to real assets, preventing the inflationary risks seen in fiat currencies.

Central Ura: The exchange rate of 1 U1.00 is equal to 1.69 credits, with each credit representing 1 gram of gold.
Central Cru: The exchange rate of 1 CRU1.00 is approximately 0.687 credits, also linked to the value of 1 gram of gold.

By using credits tied to grams of gold, both Central Ura and Central Cru retain their value over time, making them stable stores of value and mediums of exchange.

7. Creating an Enabling Environment for Credit-Based Money

For governments to successfully transition to the Credit-to-Credit Monetary System, they must create an enabling environment for financial institutions such as:

National Central Ura Banks (NCUBs)
National Central Ura Investment Banks (NCUIBs)
Local Central Ura Banks (CUBs)

These institutions will facilitate the flow of Central Ura, Central Cru, and other credit-based money into the economy, promoting financial stability and reducing the need for borrowing. By avoiding debt-based issuance, countries can reduce their dependence on foreign loans and strengthen their domestic economies.

Conclusion: A Path to Stability and Long-Term Prosperity

The Credit-to-Credit Monetary System offers a sustainable alternative to fiat currency systems by ensuring that all money is backed by real, tangible assets like gold or receivables. By measuring credit in grams of gold, the system stabilizes the value of money, protecting it from inflation and devaluation. This transition is especially urgent for countries facing rising national debts and currency depreciation, as it provides a pathway to long-term economic stability and prosperity.

For more information on how to transition to the Credit-to-Credit Monetary System, visit uracentral.com or explore further opportunities at neshuns.com.