Quite a bit here new and interesting on currency and money, but sometimes hard to divine the intent of the question when the definitions are slippery:
Or do you mean to address a notional problem of a shortage of currency in which trade is suppressed? If the latter, I don't think you'll find an actual case in history of the same, if the question contains accurate definitions.
Graeber is half right, credit is critical in a prosperous economy, for the extractors extend credit to the processors, processors to material makers, material makers to manufacturers, manufacturers to retailers, retailers to customers, all at no interest. Contemplate the vast amount of trade done in this regime, in place a mere 40 years ago. The fact that banks, as finally admitted by the B of E, lend asset-less backed credit, wiped all that good credit out, after Nixon closed the gold window in
'71, leaving interest bearing bad credit, is a problem. There is never a shortage of currency, only the wiping out of the trust systems (private credit) among merchants in an economy.
The endogenous monetary system is anything offered by a state. The state currencies are the problem, the natural systems lead to peace, prosperity and economic justice.
Feel free to forward this by email to three of your friends.
***do you have sympathies with the gold standard, or any other commodity standard that would obviously restrict the amount of money that can be created?***NOw note the problem... "money" ... don't you mean currency? The money is the gold and silver, the currency is either warehouse receipts or fractional reserve.
Or do you mean to address a notional problem of a shortage of currency in which trade is suppressed? If the latter, I don't think you'll find an actual case in history of the same, if the question contains accurate definitions.
Graeber is half right, credit is critical in a prosperous economy, for the extractors extend credit to the processors, processors to material makers, material makers to manufacturers, manufacturers to retailers, retailers to customers, all at no interest. Contemplate the vast amount of trade done in this regime, in place a mere 40 years ago. The fact that banks, as finally admitted by the B of E, lend asset-less backed credit, wiped all that good credit out, after Nixon closed the gold window in
'71, leaving interest bearing bad credit, is a problem. There is never a shortage of currency, only the wiping out of the trust systems (private credit) among merchants in an economy.
The endogenous monetary system is anything offered by a state. The state currencies are the problem, the natural systems lead to peace, prosperity and economic justice.
Feel free to forward this by email to three of your friends.
0 comments:
Post a Comment