A value-based economy is one where currency is created and introduced into the economy at the time of payment for services rendered for governmental/societal projects. Without computer technology, this would be virtually impossible. With computers and the Internet, however, this becomes viable.

The benefits of introducing currency in this way are many. One of the main benefits is that it will no longer require guesswork on the part of some reserve bank to determine how much money should be minted. At present, the banking system must try to divine how much currency to "print" based on all kinds of complex and inexact methods. Currency is then created when loans are written for bank customers. The control mechanism for this is interest rates, on the idea that you can induce people to take loans or not simply by lowering or raising the interest rate.

In our current system, money is created first, before any value is actually created. That is what makes it a loan, and that is also what requires interest to be paid.

A value-based economy works opposite to this. First, value is created by people working on governmental/societal projects. Then, on a fortnightly or monthly basis, the workers get paid, but instead of their pay coming from government coffers, the money is e-minted and deposited into the worker's accounts. In this way, the printed money is NOT a loan, and therefore required no interest to be paid.

When the money is created, there are two entries made in the government books. On one side, you have the e-currency that was minted. On the other side, you have the create value that the money represents.

So, why is this philosophically a good thing to do? The worker gave of his life energy to produce value that benefits the entire society (or a major portion of it). The money the worker receives represents the value of that labour, and because the worker does not receive the major part of the benefit that comes from the created value, the society in general, owes the worker a redemption for the spent labour.

For example, if a man sweeps the street at night, he may be paid $100. The reason it is valid to create money to pay him is as follows: if the man swept the street and HE was the only one to benefit from the clean street, it could be argued that he should not be paid, since his labour created a value (clean streets) that only he benefits from, so that benefit is his just compensation. Because, the street sweep in fact creates a value for many people (all who enjoy walking down clean streets), the society in fact owes the street sweeper MORE than the direct benefit of the value created. This MORE is reflected in the $100 created and paid to the worker.

So, on one hand you have $100 more currency in the economy, and on the other hand you have clean streets for the entire city to enjoy for some period of time (24 hours let's say). This is what allows the economy to balance, and the money to retain it's value...in other words, no inflation.

Once the created money is in the economy, it will then flow between private parties. In this context, the value created by labour is private in nature. The currency will flow between parties, serving as a medium of exchange.

Because money is ONLY created when projects are done and services are rendered that benefit the entire society (economic zone), it then becomes possible to operate a government without charging any taxes. A taxing system is one where the individuals pay a portion of their life energy for the operating of the government. With a value-based economy, taxes are not charged for creating value, instead taxes are charged for lost value as a way to rebalance the system after a value loss occurs.

What I have described here is a system of economic forces that are designed to:

1) Release and encourage humanity to accomplish whatever we are capable of doing, where money is no longer a limiting factor, but rather progress is only limited by human initiative, willingness, and ability.
2) Because taxes are charged for lost value, where value is destroyed before its scheduled depreciation date, there is an ever-present pressure to make things well, and to always be improving systems and products. The goal would become: no lost value.