Receivables in the Credit-to-Credit (C2C) Monetary System

The Role of Receivables in the Credit-to-Credit (C2C) Monetary System

In the Credit-to-Credit (C2C) Monetary System, receivables play a foundational role in ensuring that money is tied to real assets, fostering stability, trust, and inflation resistance. Unlike traditional fiat currencies, which can be issued without direct backing, the C2C system relies on tangible assets, such as receivables, to back the issuance of money. This creates a monetary system that is inherently asset-backed, limiting the risks associated with currency over-issuance and inflation.

In this article, we explore the critical role of receivables in the C2C system and how they contribute to the system’s strength and sustainability.

1. What Are Receivables in the C2C System?

Receivables represent financial assets that are owed to a creditor by a debtor. These can include accounts receivable, taxes due, loan repayments, and other contractual obligations that are to be paid in the future. In the Credit-to-Credit Monetary System, these receivables serve as collateral or backing for the issuance of money, ensuring that every unit of money in circulation is tied to real-world assets and not created arbitrarily.

Credit is not based on the expectation of repayment (as in loans based on trust); rather, it is based on existing, legally enforceable obligations. This makes credit a more concrete and reliable form of asset compared to other financial instruments that depend on future performance or trust.

Examples of Receivables:

Tax Receivables: Payments due to the government from taxes that will be collected in the future.
Accounts Receivable: Payments owed to businesses or governments from customers or other entities.
Loan Repayments: Amounts due from borrowers to financial institutions, which can be included in the reserve assets.
Fees and Charges: Government fees, licenses, or other charges that will be collected and can be used to back money issuance.

2. Receivables as Collateral for Money Issuance

In the C2C system, receivables are one of the key asset classes backing the issuance of money, such as Central Cru or other credit-based currencies. Before money can be issued, Central CM Series LLC assesses the value of receivables that governments, businesses, or financial institutions hold. These receivables act as collateral that guarantees the issued money, ensuring that the total amount of money in circulation does not exceed the value of the assets backing it.

The distinguishing feature of credit is that it represents an existing obligation rather than a potential or speculative one. This is what sets credit apart from other financial assets that may depend on uncertain future events. Credit is an asset that exists now and is payable in the future.

How It Works:

Assessment of Receivables: Entities submit their receivables for valuation. These assets are evaluated based on their projected future payments and risk factors, ensuring they represent real economic value.
Money Issuance: Based on the assessed value of receivables, money is issued by Central CM Series LLC in the form of Central Cru. This ensures that the money supply remains tied to the value of real-world assets.
Ongoing Monitoring: Receivables are regularly monitored and reassessed to ensure that the backing of money remains aligned with the assets’ value, maintaining monetary stability over time.

3. Ensuring Stability and Inflation Resistance

One of the greatest risks in fiat currency systems is the potential for over-issuance of money, leading to inflation and a loss of purchasing power. In contrast, the C2C Monetary System ties money issuance directly to the value of receivables and other real assets. This ensures that money creation is always tied to actual economic activity and obligations, preventing inflationary pressures from undermining the currency’s value.

Inflation Resistance:

Tangible Value: Since receivables represent future payments, their inclusion as collateral ensures that the money issued is tied to future economic output. This prevents inflation, as money cannot be printed without real economic value backing it.
Stability Over Time: The ongoing evaluation of receivables ensures that as assets are paid off or their value changes, the money supply can be adjusted accordingly. This provides long-term economic stability and protects the purchasing power of the currency.

4. Encouraging Better Financial Management

Benefits for Governments and Businesses:

Improved Tax Collection: Governments are incentivized to enhance their tax collection mechanisms, as these receivables directly impact their ability to issue money.
Efficient Revenue Management: Businesses and governments are encouraged to maintain strong financial controls over their receivables, ensuring they have a clear view of their financial assets to support credit-based money issuance.
Transparency: Since receivables must be properly documented and audited, the system promotes transparency in financial reporting, benefiting both public and private entities.

5. Receivables and Sovereign Debt Reduction

In traditional debt-based fiat systems, governments often rely on sovereign debt issuance to finance public spending. This leads to the accumulation of national debt and the risk of inflation. In the C2C system, governments can use receivables to back money issuance, reducing the need to borrow money through debt-based instruments.

Impact on Sovereign Debt:

Debt Reduction: Governments can issue money based on the value of receivables rather than accumulating national debt. This reduces reliance on bond issuance and minimizes interest payments on national debt.
Sustainable Public Spending: With receivables backing money issuance, governments are encouraged to align their public spending with actual economic activity, preventing the unsustainable accumulation of debt.

6. Receivables as a Tool for Economic Growth

By leveraging receivables as collateral, the Credit-to-Credit Monetary System enables governments and businesses to issue money directly tied to economic activity. This promotes investment and infrastructure development, as governments can use their receivables to back long-term projects without borrowing money through debt instruments.

Benefits for Economic Growth:

Financing Infrastructure: Governments can back infrastructure spending with future tax revenues and other receivables, promoting sustainable economic growth without incurring significant debt.
Business Expansion: Companies can use receivables as a basis for issuing money to finance business growth, expanding their operations while maintaining financial stability.

7. Long-Term Stability Through Dynamic Asset Management

The dynamic nature of receivables provides a flexible and adaptable mechanism for managing the money supply. As receivables are paid off or change in value, the system can adjust the amount of money in circulation accordingly, maintaining balance between the assets and the issued money.

Adaptive Fiscal Management:

Ongoing Evaluation: The value of receivables is continually assessed, ensuring that the money supply remains tied to real assets. As new receivables are created or paid off, adjustments can be made to the total amount of money in circulation.
Mitigating Economic Shocks: In times of economic uncertainty, the system’s reliance on real assets like receivables helps mitigate the impact of external shocks, as money remains tied to actual obligations rather than speculative markets.

Receivables are a critical component of the Credit-to-Credit Monetary System, providing the foundation for the issuance of stable, asset-backed money. By tying the issuance of money to real economic assets, the system promotes fiscal discipline, transparency, and long-term economic stability.

Central CM Series LLC issues Central Cru with receivables subject to completion of the assessment and valuation process. The value of receivables is converted to credits, at the rate of 1 gram of gold at the reference date. Any circulation produces a minimum of 1 credit for 1 credit in secondary reserves. The net effect is stable money backed by a primary reserve of 1 credit and a secondary reserve of at least 1 credit. This ensures that the issuing of credit-based money begins with credits equal to the full value of the Money, replenishing reserve assets continually and guaranteeing that CRU1.00 in circulation has equal credit in primary reserve and at least 1 credit in secondary reserve.