2. Introduction 

What is a self-governed Market Economy?
Is Self-Government Market Economy a new philosophy?
Is it a new ideology?
Is it a new vision or an utopic fictional hope?
Is it the compendium of old ideas wrapped in new words?
Is it an economy without hierarchy or rather an economy without money?
Is there a government of anarchists or of amateurs who are workers in their real profession?

It is nothing of this.
But if we want get the know how of a fair economy, we need first knowledge about the characteristics of the present economy. The present economy is called the new economy. It is the old capitalistic economy with less regulation. The fundamental theory of capitalism was described from Adam Smith 1723-1790. He said that all production needs three elements. The factors for production are 1. work, 2. ground and 3. capital. In the future his theory was criticized from many economists. The most famous critician was Karl Marx 1818-1883. He postulated, that only the work should be the a factor of production and not any kind of property. The theory of Karl Marx was later realized by Wladimir Iljitsch Lenin since 1917 in Russia and then in Soviet Union until 1990. The history showed us, that in communistic ecomomies the people realized less productivity and more problems with distribution than in capitalism. Hence the new economy seems to be successful with less and less regulation and more and more rights for the capital owners.
You know, the three factors of production are 1. work, 2. capital and 3. ground or nature. These factors are still the main sources of income in our present economy. The workers can earn wage and salary. The owner of nature receive rent and lease for natural and artificial things. And the owners of capital demand interest and dividend for their debts and stocks.

The inflation rates in mature economies
Although the inflation problems are lawer than in former times, it is a loyal partner of unemployment. It seems to be, that it is not possible to banish inflation and unemployment at the same time.

Now it is possible to postulate, that there are only two factors of production: performance and property or more precisely: human power and natural property.
In this case we can classify work as a part of human performance and ground or other natural things are a part of somebodies property. But it is not so easy to classify capital in one of the two categories human performance or material property. Why? You know, all natural things possess a value. If any natural thing will change the owner the buyer must pay a price and the seller will receive a price. If the seller and the counterpart who is demanding the product can make their own price without any regulation the price is the market price. Such a business needs the agreement of both counterparts.
But what is now the specific characteristic of capital? You know all natural things does have a place where they stay and especially a quality. What is the quality of capital? If a company sells many stocks, do they have any different quality? If a governmaent sells bonds, do they have different qualities? Is it possible to consume capital? Not? Why not? If natural products become older they loose usually quality and the value on the market is less. Does capital loose quality because of his age?
You know that all capital has a value because of the laws in the country and not because of human beings who need capitalistic things for their consumption. Yes, the value of capital dues from the laws of the government and their jurisdiction. If capital changes the owner, the buyer pays instead of a price a rate. The value of stocks and bonds are calculated like foreign currencies with an exchange rate. Therefore you can change capital and save it like money. If rich people want expensive things they must first sell capital. They can calculate the risk immediately because agreements for capital transactions are not necessary.
Hence capital is a part of the volume of money. Traditionally our money is in the purse in form as coins and banknotes. For our security we carry only a small part of our money in the purse. The bigger part of our money seems to be with guarantee at our bank. In modern times it is more comfortable and more secure to pay with a plastic card. In every case we do not know without dobt, if "our" money on the bank is deposited for noncash transactions or if it is lend to the bank for investments of others. In case the bank has enough liquidity, the amount on our account number tells us the value of our money on the bank. If the bank has no more enough solvency we remember that we didn' t deposited money but only capital on our bank.The banks and the bourse are big manufacturers and destroyers of capital. If the production and destructrion of capital keeps the balance, it seems to be, that the bourses and the banks are only facilities for distributing capital. It is of course the aim of all money policy and financial policy to keep steadiness in producing and destroying capital. On the other hand the politicians and economists know because of their experience, that a growing volume of capital has positive effects to the labour market.
We can learn more and more about the features of capital.
However, it' s necessary to recognize some essentials of capital. The origin of capital income is property but not material property. It is a property by law. Capital is a legal form of security for the creditor. All legal credits need guarantees for the creditor. Some kinds of guarantees are material objects. For example mortgages, ground or accomodations. In this case the debtor can be richer than the creditor. If the debtor has not enough securities, he can give his income as security. The most mysterious forms of debts are the stocks. In this case the stockowner has the legal right to receive dividends without time limit.
The question is: Are the creditors shareholders on other objects or on other subjects? Are they the shareholders on material things or are they shareholders on economic income? Economic income is the result of distributing money. Only human beings are able to earn money. Hence if the creditors are shareholder on material things like mortgages they have income because of natural things. In case the debtor has not enough material security, he can give his income instead of material things as security. In this case the creditor has like a stockowner property on a part of other economc income. He has property on the human power of his debtor.
You know, if a houseowner gives his house as guarantee, the debtor can be richer than the creditor. This credit is not the result of an emergency case. But if somebody gives his income as guarantee, the business is an act of two unequal partners. In order to avoid financial emergencies we should consider the differential effects of a social dividend from the government in comparison with consumer credits from credit business.
But now another question. What are the conditions for creditors to lend money to poor people without material securities? The economic income can change like the performance of the debtors. Therefore it is necessary to adapt the conditions adequate to the performance of the debtor. This is possible with the notice of withdrawal. A notice of withdrawal is a termination of the contract without an agreement. One partner of the credit contract don' t want a termination of the conditions. They want only change the conditions to their own advantage. But you know, if the debtor must give his income as guarantee for the credit he is the weaker part of the contract. Therefore the creditor of a capitalistic credits has two advantages. He can change the conditions all the time to his own advantage, because he can change the interest rate without an agreement and second the credit has no more a price but a rate, in case he divides the loan in many identical parts. So he can also sell the credit without an agreement. The speculative credit has a legal exchange value like a currency and therefore he is a part of the money volume. If an economist want make a prognosis of the inflation rate he must calculate also with a big part of volume of speculative credits.
It seems to be a secret that credit contracts are also possible without a notice of withdrawal. In this case it is nonsense to calculate an interest rate for the credit, because the conditions of the contract are not changeable without an agreement. Even if the debtor want no more pay the redemption a notice of withdrawal is not necessary. In this case a termination of the contract is also possible, because the creditor is shareholder on an object and not on a subject. They can sell the guarantee object all the time with a market price and not with a rate. Such a credit is not a speculative credit and it is not dangerous for the whole economy and relevant for the whole money volume, because the risk of the credit depends only from the behaviour of a subject and not from the development on the stock exchange.
This is now an utopic credit system, because the capitalistic economy needs money to reduce unemployment. For this purpose it seems to be not important if the money comes from central bank or private banks or the government or other companies who are trading on the stock exchange.
On the other hand it is really significant. Because if the capital volume becomes bigger and bigger in relation to the money volume created from the central bank, the part of the national gross product distributed through wage and salary becomes less than the part distributed through interest and dividends.
Such a situation makes the struggle for allocation of money not easier. Hence we must consider more about the macroeconomic problems in chapter
3. The problems