The Economy has 3 Monetary Eco-systems


This July the observational conclusion that there is a different model for describing economic systems will be explained in my book “Three Monetary Eco-systems” which will be published on Amazon, in Kindle and hardcover formats.  Why?  Because mainstream economists have trouble predicting economic outcomes with the scarcity based models they use to describe how wealth moves and has evolved in our civilization.  In fact, my corporate and political experience has made me lose much trust in high level economic predictions.

The three monetary eco-systems are:

  1. Payments and Commerce
  2. Banking and Financial
  3. Governments and Power

And the first eco-system, that of Payments and Commerce is the one most of us learn to work with in our childhood, which includes barter and different types of currency.   The second, born from the needs of merchants to do commerce over large distances and to handle risk, is the banking and financial eco-system, which evolved into and actually facilitates the existence of a global network of banks and financial institutions that use fiat currency’s flexibility to create monetary wealth as needed to keep commerce (and the people of their nations) happy.   The third eco-system, supports the banking and financial system with the legislation, policies, and exercises of power and influence that represent government support and enforcement.

But why is this important?  Because different people understand how to create wealth at each level, and because they see money differently they can actually generate changes in each eco-system that can increase of decrease the wealth of their nations.   Some will become rich and their riches will be part of the nation’s wealth.  Others will siphon off the nation’s wealth and start weakening the respective ecosystem, especially if they destroy trust in their government while accumulating their riches.  And it can all be perfectly legal even if it seems arbitrary.

In our economy, the government, which works at a very macro level of budgets and negotiations, also makes decisions and rules over transactions in the micro, or detaled payment and commerce ecosystem.  And the most ancient bridge between the two excosystems, tax collectors, are still resented by many.  The exception seems to be the middle and working class taxpayers who receive services that they value and feel are worth the taxes.  Historically, individuals in the payment and commerce system have felt uncomfortable with governance level interventions, though they require the power and security a good government offers inorder to reduce costs and losses.

The intermediate level, that of banking and finance, started as a pure service to both levels, facilitating commerce, contracts and wealth accumulation, but modern technology has transformed it and made it into a major engine for growing gross domestic product and industrial investments.  It is also a major creator of money, and requires regulation so as to prevent loss of trust in the nation’s money.  Of course, most news and economics reports focus on short term losses and gains, which allows for infrastructure and other assets to go unmaintained and unrepaired for years, creating a chokepoint for local business development and job creation.

The Wealth of a Nation, as described by Adam Smith, is the adding up, the aggregate, of all of the individual, corporate, public, etc. elements of wealth in that country.  And each ecosystem recognizes different elements as most important.  Understanding this can allow for the development of the proper mathematical models to accurately manage said wealth so it may grow continuously in spite of the old beliefs in scarcity and hard assets.  In addition, it makes it easier to understand how cryptocurrency can be of benefit to the global monetary system.

In addition, most successful individuals have learned to make use of one ecosystem or another’s characteristics to generate and accumulate personal wealth, as well as corporate.  A few have learned to leverage  more than one ecosystem.  The concern is that they all might be losing faith in the existing fiat monetary networks, and by pulling their wealth from circulation and storing it as unproductive assets, tey could actually diminish the wealth of their nation and generate distrust in their respective fiat currency.

I hope my ideas can help avoid these negative possibilities and open the opportunity for ever greater business and industrial development worldwide.

Manuel F. Perez, MPA, CAMS




About Manny Perez

President of Space Renaissance USA Co-Chair of the Cryptocurrency Standards Association, CRYPSA, Certified Professional Coach, with Coaching Hispano USA Certified AML and Compliance Specialist. I promote success and empowerment of entrepreneurs and leaders, including those of new technology. devs.
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