The issue is about how money is created, whether:
1. As debt at compounding interest, or
2. As credit without interest payments draining the money supply
Author Archives: governingtaxfree
Commercial currency
Could we consider a “commercial currency”, alongside government currency (notes and coins), bank currency, and perhaps gold and bitcoin?
We propose another current asset type to accommodate settlement of payables/receivables without the need for a line of credit. Let’s call this account “commercial currency”, alongside bank, petty cash, receivables, inventory, and other current assets.
Funding UBI
We distinguish between the currently popularised UBI financed by tax and debt, and a citizens’ dividend which distributes wealth created by citizens.
In contrast to welfare, the dividend does not discourage work, but rather enables initiative, entrepreneurship, and career choices.
We show the monetary accounting so that citizens receive a dividend at the rate of growth of the economy and monetary supply.
Where does money come from
One the one hand we have skills and resources, and on the other there are needs, wants, and desires. Somehow needs cannot be satisfied with available skills and resources without some magical medium called money.
The most common sources of money are mining, debt, and credit.
COVID
The monetary response to COVID has to help people of course, but how can we understand Mutual Credit in context?
Short of Inches
Once upon a time there was a skilled carpenter who had a reputation for reliability and magnificent furniture for homes and businesses. Over the years he built up a well-equipped workshop, with an adequate warehouse full of selected materials alongside. One morning he was working on an order to outfit a new store, when heContinue reading “Short of Inches”
Network of Trust
Ryan Fugger: The Ripple service allows payments between interconnected friends and businesses. Normally, if your friend Alice owed you $10, she would have to pay you back before you could make any use of that debt. If you were creative, however, you might be able to pass the debt on to someone else who knewContinue reading “Network of Trust”
Interest- and Inflation-free money
Margrit Kennedy: Money is one of humankind’s most ingenious inventions – and also one of its most dangerous. Interest and Inflation Free Money offers a clear, simple explanation of how financial policies shape the global markets – and how interest wrecks cultures, ecosystems, and economic systems. In particular, it reveals the hidden flaws in ourContinue reading “Interest- and Inflation-free money”
Beyond Money
Thomas H. Greco, Jr: Demystifying Money and Liberating Exchange Thomas H. Greco, Jr. is a preeminent scholar, author, educator, and community economist, who, for more than 35 years, has been working at the leading edge of transformational restructuring. He is widely regarded as a leading authority on moneyless exchange systems, community currencies, financial innovation, andContinue reading “Beyond Money”
Can banks create money out of nothing
Richard A. Werner: This paper presents the first empirical evidence in the history of banking on the question of whether banks can create money out of nothing. Three hypotheses are recognised in the literature. According to the financial intermediation theory of banking, banks are merely intermediaries like other non-bank financial institutions, collecting deposits that are thenContinue reading “Can banks create money out of nothing”
Monetary Prosperity 