About 1989 I got hold of a little booklet titled HOPE FOR THE FUTURE from Yellow Springs Ohio that was the result of a long collaborative discussion between one of the Morgan brothers and Arthur Dahlberg who was one of the head engineers at the Tennessee Valley Authority. Dahlberg had written a book titled HOW TO SAVE FREE ENTERPRISE and the book was his interpretation of the writings of Silvio Gesell. So, I made some phone calls and found the person who had the last of the single printing of that book. Bought a copy and about six months later bought another copy which I mailed to Bernard Lietaer of Germany.
When I got online in the mid 90s my learning accelerated and I was reading about money experiments in various and sundry times and places. I was reading about LETS systems and Time Dollar systems and wondering why they were so limited in success and where many actually folded after several years. I came to one conclusion - that failure rested on three lacks in their model - these lacks were:
Lack of good commercially enforceable contracts.
Lack of performance bonds that would put some skin in the game for the players.
Lack of a model that provided for full time professional administration.
I had read Hayek's DECENTRALIZATION OF MONEY and George Selgin's 1988 book on free banking and both held up the Scottish banking model as a "free banking" successful model. When Greco asked me to digitize an 1865 book on Scottish banking written by Somers I jumped at the chance. The book was sent to me as hundreds of images scanned and burned to a CD. By the time I got half way through that nightmare I realized that Hayek and Selgin were full of shit. And I was pissed.
Then I found Rothbard. (Knew who Rothbard was before - but not what he had written about the Scottish example.) Wasn't so! The Scottish banks had prevailed upon the Scottish government to get a law passed that they did not have to redeem their so-called "gold backed" bonds 100%. Actual backing varied from bank to bank with about 65% perhaps average. A few were down about 20%.
So, I figured if those were the best examples available - then an old carpenter with a bad back and bad knees but a mind that is still pretty clear most of the time could probably figure things out too. Hell, half the people on the Tea Party list are probably smarter than me - all you gotta do is spend some serious time examining the facts and the history and you can come up with alternate models.
Now, I ask you - have I written anywhere that you cannot use gold and silver coin. ABSOLUTELY NOT!
What I am saying is there are other ways to skin that cat. (the money system cat)
What I am saying is Griffin did a hell of a job with chapter ten THE MANDRAKE MECHANISM - because it shows how to create mutual credit money. And what have I been writing lately? That the federal reserve ALREADY IS A MUTUAL CREDIT MODEL. But it needs to be owned by the people.
And I have been writing that gold and silver and other precious metals should be formally recognized as methods of saving value. That these saved things can function quite well as performance bonds within a mutual credit model - cross collateralizing the promissory notes (this is how to do fractional backing the right way)
The hypothecation of the promissory notes a-la Griffin can continue - at ZERO INTEREST RATES. Only a monthly service charge applies. Now I can talk a billion Muslims into using the system.
And who pays for the professional administration? EVERYBODY! Via a demurrage charge on the circulating currency and upon accounts of record. Remember, the circulating currency is backed by the people and redemption is in the various commodities, products, and intellectual and physical labor of the people. The exact same backing as the federal reserve note has.
The money needs to be issued and maintained in some proportional quantity to population demographics. Just what the best optimal quantity might be remains for the future to demonstrate.
So, Larry Becraft writes: "Here is one fatal flaw. All of our medium of exchange (pure credit) is borrowed into existence, which mathematically means that our aggregate debts will always exceed the amount of “currency” in existence. An illustration of this process is posted here:
[link to home.hiwaay.net
How is it proposed that all debt in this country, public and private, will ever be paid? It never can under this type of system, and debt (as well as “money” supply) will increase almost forever."
and I must ask - How would it work if the people actually owned the federal reserve system with annual or semi-annual rebates of any funds after operating costs were paid? Because it is my firm belief that a mutual credit monetary system should be owned by the users.
Did Aristotle still use those flat-earth maps? (this entire post was in response to a private correspondent who posted: "Aristotle was just another white man, but he laid out exactly why gold was the best form of money."
Get up out of your grave old boy and let me show you the round earth map.