I'm going to be talking mostly from the perspective of being a resident of the United States, most of my explanations will apply with a few name changes to almost every nation. Money makes the world go round, not true obviously, but also tough to argue with as it certainly seems to spin the human world. Going without currency is to an extent impossible if you live in a modern nation. we are paid, sometimes even forced to get special accounts just to receive the fruits of our labor. Why given the facts of how much impact money, and finance has on our everyday experience it's a wonder hardly anyone seems to understand it, or even have any desire to. The boons of an abstract store of value, a thing that represents all other things in potential can not be understated, and would have to make it to any list of ideas that changed the world. Having a representational system of value has without a doubt opened up trade, allowed for specialization at unprecedented levels. That does not mean our current system will continue as is, nor does it mean our current system is infallible. There has been much made about how contrived our markets are, with not price discovery, but manipulation at work as the rule. As a world we live in a debt based system, consolidation of resources, and money as a thing. Money as thing is fine, if the money is a thing, ours is figures on a screen or pieces of paper, with the majority of it only coming into being when it is created with interest attached by private parties. This makes for different classes of money, easy to understand if all money is debt, the money created with a lower interest rate attached would have more value than that created with a higher rate. This interest on the creation of money sets in place a organized crime like skim, where the percentage of interest charged is stolen right off the top. All while zero risk, as your product is needed by everyone, yet does not exist till you sell it to them. Many will now be saying that I am ignoring the reserve requirements. These might have been a restraint at one time, with zero interest and the presses on full blast, meeting the requirements is an after the fact event.
How might we change this? Issuing currency is and must remain with the sovereign, be it a nation, or municipality what have you. In order for the money to not take over, it must be maintained as a service to the nation by the nation. The US must issue it's own currency the credit agencies, and private banks would have to adhere to a full reserve requirement. This would eliminate the infinite growth mythology, and allow for expansion and contraction of the currency supply based on the needs to facilitate the exchange of goods and services. Isn't that what representational money is about? Making it as simple as possible for an individual to exchange what they have, for what they need?
In fairness the US monetary system never stood a chance, with even our history being rewritten to leave our money as a prime motivating factor for the revolution. Some even goes so far as to make a case that Hamilton, our first secretary of the treasury was an agent for international banking interests. As interesting as history can be, the who did what who, or he said she said game will not do a thing to change the present. Like all technology, money is a thing most do not wish to spend time thinking about. We just want it to work, ours doesn't, was not planned to, and we are in the world change over of global trade settlement. If there was intent to work our system as intended the bail out would have been in public works projects. Where those with the least are put to work by the government to make improvements everyone will benefit from. This allows the currency to enter at the bottom, and trickle it's way up through the full economic structure. What we have done is cut out the middle and bottom, injecting the currency almost at the top. Combined with interest rates kept artificially low, that currency has no choice but to enter into speculative markets just to find a return. This only adds distortion to the overall economic data.
We can make money the tool it is intended to be, or we can be little more than economic servants to those who understand it's tricks. The choice is always ours.
Jack
aka
PanseyBard
How might we change this? Issuing currency is and must remain with the sovereign, be it a nation, or municipality what have you. In order for the money to not take over, it must be maintained as a service to the nation by the nation. The US must issue it's own currency the credit agencies, and private banks would have to adhere to a full reserve requirement. This would eliminate the infinite growth mythology, and allow for expansion and contraction of the currency supply based on the needs to facilitate the exchange of goods and services. Isn't that what representational money is about? Making it as simple as possible for an individual to exchange what they have, for what they need?
In fairness the US monetary system never stood a chance, with even our history being rewritten to leave our money as a prime motivating factor for the revolution. Some even goes so far as to make a case that Hamilton, our first secretary of the treasury was an agent for international banking interests. As interesting as history can be, the who did what who, or he said she said game will not do a thing to change the present. Like all technology, money is a thing most do not wish to spend time thinking about. We just want it to work, ours doesn't, was not planned to, and we are in the world change over of global trade settlement. If there was intent to work our system as intended the bail out would have been in public works projects. Where those with the least are put to work by the government to make improvements everyone will benefit from. This allows the currency to enter at the bottom, and trickle it's way up through the full economic structure. What we have done is cut out the middle and bottom, injecting the currency almost at the top. Combined with interest rates kept artificially low, that currency has no choice but to enter into speculative markets just to find a return. This only adds distortion to the overall economic data.
We can make money the tool it is intended to be, or we can be little more than economic servants to those who understand it's tricks. The choice is always ours.
Jack
aka
PanseyBard
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