Mike Maloney's Hidden secrets of money part 5.

Interesting, nothing really new for me. However it is educational for those out there who just don't understand what is going on.

This one is by far the best:

Usury (was - Why the Greenbackers Are Wrong)

The coinage charge is more correctly referred to as a "Franking charge."

The seigniorage is an imaginary value added to the coin. Thus in the example Mn supplied:
"The St. Louis Fed Answers: Why There’s No Gold Standard
Douglas French · December 31, 2012"
[link to lfb.org]

First an ounce of gold is called "Twenty Dollars" - then an ounce of gold is "revalued" as "thirty five dollars" - this is the seigniorage. The King claims to be the owner of that imaginary increment (the seigniorage). When a strict credit instrument is being traded as money it is all seigniorage.

The evolution over decades from partial redemption to zero redemption in specie was the change from some embedded value to zero embedded value.

The question evolved from "Where's the beef?" to "Do you hear the cow?" and far off we can only hear a "moo" bouncing between the hills.

When the money is all credit (100% seigniorage), then that seigniorage must be vested with the people by one mechanism or another. That is why I say that a mutual credit money system must be owned by the people in some socialistic manner.

Gold and silver coin can be owned by individuals, but mutual credit is a communal form.

So, now if You, the reader, wish to accuse me of being a communist, then I must confess guilty.

A whole lot of problems could have been avoided if at inception money could have been defined as silver and gold coin exchanged by weight and purity and with no additional numbers affixed to the coins and with no fixed ratios in exchange. Such a system could fluctuate in relative value to any other commodity and to the value of labor and be completely self-adjusting.

Furthermore I assert that multiple systems should be designed to run in parallel. A system based upon specie coinage such as gold, silver, and platinum with no fixed value ratio between them. A second system based upon a unit of energy such as a kilowatt-hour of electricity, and a third system based upon the human hour. There should be no attempt made to regulate the exchange rates between these systems.

That creates a self-regulation that brings in a era of stability never before found in exchange media.