Unit for ARMO-qualified deals/balances

When reducing obligations of Programme participants, ARMO System processes payables accrued by the end of corresponding operation period (OP). Individual deals’ details (e.g. 2/10 net 30) remain beyond an ARMO System. So, technically deals in any ARMO Programme should be evaluated in some interest-free unit of measurement of obligations (UnitMO). Any such UnitMO may be used for several ARMO Programmes—from local to transnational ones. Also, properly selected unit may serve as a macroeconomic anchor. Three options for such anchor unit (AU) are described below.

The first one is based on Full Employment AND Price Stability ontlined in Soft Currency Economics and elaborated in Maximizing Price Stability in a Monetary Economy. The quote from the latter paper—"The employed buffer stock wage therefore functions as the price anchor for the currency, as an instrument of price stability, and, in practice, the source of the definition of the value of the euro in the euro area."—is valid for any sovereign currency if the government (that currency issuer) is ready to implement the policy presented in that paper. In this scenario UnitMO may be defined as fixed rate hour (FRH) based on constant minumal hourly rate. FRH simply means one working hour of the least expensive labor. So, if minumal hourly rate is set to $15 then $150 deal will be evaluated as 10 FRH. This UnitMO seems to be the best one as time itself is absolute and invariable.

In the second option UnitMO is defined as JAU where letter J stands for joule—a unit of measuring energy—as energy plays key role in economic potential. However making deals in joules may be quite inconvenient.

The third option is based on something what is considered to be invariable for a lot of people and at the same time is easy to use for a deal’s evaluation. For example, people consume a cup of their favorite beverage every day regardless of that cup’s price fluctuations. Current mass production of single-cup beverages (e.g. K-cups for Keurig brewers) makes the cost of a cup least related to the kind of a product, e.g. about 10 grams of ground coffee in a cup. Major components of that cost are labor, equipment, electricity, etc. Those components are the same for a cup of any kind of coffee or other product (tea, hot chocolate or even broth powder what may be brewed in any compatible brewer). Consequently costs and wholesale prices of single-cup beverages vary not that much.

Moreover, every cup represents a real value as a result of coordinated efforts in many different fields: harvesting of crops, transportation, warehousing, manufacturing (utilizing complex equipment for production and packaging) and distribution of finished products, business applications’/systems’ development and support plus resources put on teaching and training in every field. In addition, two highly consumed row materials for popular beverages (coffee and cocoa) are among most-traded world’s commodities.
Thus anchor unit representing abstract cup of coffee/tea/etc may be denoted as where letter C stands for Cup-of-favorite-beverage, or Coffee for short. Conducting business activities measured in CAU in separate accounting contour may be beneficial for participants of correspondimg ARMO Programme (and tax-free within the contour). Outstanding debt could be paid in conventional currency on a rate defined by market, and CAU's value may work as a price stabilizer. Paying debt would be declared as expense, receivng payment--as revenue. Besides, if CAU or any other unit becomes widely accepted then macroeconomic indicators may be measured in that unit (e.g. GDP--to avoid a cumbersom GDP-PPP constuct).