When debt-based money is created through fractional reserve banking, the new money theoretically gets its value from the borrower’s promise to repay, or failing that, the securities that guarantee the loan. Because debt-free currency (the so-called “capital-G” Greenback) isn’t based on a loan, how does it get its value?
Archive for May, 2010
Coffee with Joe, 5-20-10: Economic Democracy
Would a debt-free money system be good for the environment? Would it be less likely to promote a war economy than the present debt-based monetary system? Joe says, there’s no guarantee, but at least those things would be possible with reforms like those envisioned in the American Monetary Act.
Seigniorage, by Eric Zencey
My friend, Eric Zencey, has just posted this outstanding article at George Mason University’s History News Network: Seigniorage Chances are that unless you’re a total financial policy wonk, you’ve never heard the term “seigniorage.” But you should, because doing the right thing with it could help solve two large and interrelated problems: instability in our [...]
Coffee with Joe 5-10-10; Euro Bailout
Joe decries the bailout reached over the weekend by the IMF, the Fed, and other central banks for putting the well being of the financial institutions and the capital markets ahead of those of the people.
Coffee with Joe 5-3-10; The Neo-Chartalist Counter-Conference
Joe reports on what he learned at last week’s “Fiscal Sustainability Teach-In” in Washington DC, the neo-chartalists response to the Peter G.Peterson Foundation’s Conference across town.
Coffee with Joe 4-26-10, Two Conferences This Week
Wednesday this week in Washington DC, the Peter G. Peterson Foundation hosts a “Fiscal Summit”, and the Neo-Chartalists present a counter-conference “Teach In“. Joe will be attending the latter.
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