A new economic framework called System K replaces the dollar with the megawatt-hour as the fundamental unit of money.
Banks in this system do not create money through debt-based credit but instead measure the flow of effective productive energy. This model aligns the financial system directly with the physical laws of thermodynamics and energy production. Modern banking relies on the premise that money is a social construct backed by trust and debt obligations. This framework suggests that a stable economy must be a direct mirror of a nation's actual physical capacity. Switching to energy-backed money would eliminate the disconnect between financial speculation and real-world resources.
Banks Beyond Credit Creation: Measurement, Production, and the Banking System in System K
SSRN · 6704378
<div> This paper examines the institutional role of banking under a production-based framework of economic measurement. It argues that modern monetary systems do not directly measure production, but instead rely on monetary representations of economic activity—prices, balances, debt, and credit—as proxies for economic reality. </div> <div> <br> </div> <div> The paper introduces System K, a measurement-based framework in which real production is objectively recorded in K-units, defined as 1 K = 1