Money As Debt II: Promises Unleashed Page #9

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to digital promises of paper cash and now

to digital promises to pay digital promises

Throughout this long evolution, the prevailing idea has always been to

achieve greater flexibility by using secure and convenient promises to pay..

instead of money itself.

The problem with promise to pay money, has always

been that it provides a golden opportunity to cheat

To create more promises, than there is

real stuff, to back those promises up.

But is there a way, to make tha exchange of actual money,

just as secure and convenient, as the promise to pay system.

Now there is.

Digital money, convenient and secure is now a

possibility, because of new encryption technologies.

Works like this. Imagine taking the serial number

off a dollar bill and dispensing of the paper.

What do you have? A digital dollar.

A digital dollar. that can now be electronically transferred around

the world , just as easily and securely, as a promise to pay dollar.

However!! and this is a big however.

The digital money, while being entirely

electronic, is also like a metal coin.

It can never be in two places at once

Thus, the multiplication of promises can be prevented ,

by insisting on actual payment in cash, paper or digital.

We don't even need to keep this digital cash in a bank, as it

provides its own safekeeping and can be transferred by internet

An instantly transferable digital money, could perform

intelligent functions, far by anything money was capable before

For instance, with simple math, programmed in,

money could be made to calculate its own value.

Eliminating human speculation, manipulation

and error. Would that be something.

In the mean time, efforts are already underway to

reform the monetary system, through legislation.

Initiatives, like the monetary reform act and American

monetary institutes monetary act, have already been written...

prescribing in detail, how to return the power

to create money exclusively to government..

and thus limiting banks to lend existing money,

just the way most people imagine it works now.

Well, differing in detail, all such reform proposals, in what

ever country they originate, always advance the same simple idea.

The benefits of money

creation belong to the public.

At present, money is created not for the benefit

of society, but for the profit of private banks.

Banks like to create enormous amount of money from our debt, because the

more we borrow into existence, the more interest the bank gets to collect..

and the richer the bank becomes.

In the process the banks gain more control over

everyone, individuals, industry and government alike.

Abundant money too often leads to speculative

asset bubbles that make insiders rich...

but as we have witnessed, these bubbles, inevitably burst

under the unbearable weight of ever increasing interest demands.

The losers are many, including governments. Already burden with huge debt

and shrinking revenues, governments are forced to add trillions to that debt

in order to rescue the banks, that are the cause of

the problem. Other wise we would have no money system.

Its an absurd situation and a tragic one, considering

that governments could instead create the money itself..

and spent it interest free on infrastructure,

education, universal health care.

and most of that debt free money will enter the economy as wages,

circulating to all levels of society for everyone's benefit.

This kind of abundant money, will fund a re-invigorated,

productive economy, in which the savings of the people

could fund honest loans

of real existing money.

At its root, money is a means

by which we exchange real value.

Without real value in the

world, money is nothing.

As we have seen, its the real world

that makes the loan, NOT the bank.

We the people, in conjunction with the material blessings

of the natural world, are the source of all real wealth.

Therefore money creation and its benefits

belong to the public, not to private bankers.

And what about interest?

As we have seen, interest

posses an arithmetic problem.

And its a problem that can

only be solved in three ways.

1. Defaults and foreclosures

2. Perpetual growth of the money supply

or the preferable and only other solution,

a 100% recycling of interest as spending

But such full recycling, can only be accomplished by

nationalizing the banking industry, in the public interest.

For example, interest earnings from public service

banking can be paid to all, as a citizens dividend.

or it could be used to fund government in place of taxes,

as it was done successfully in colonial Pennsylvania

And that's one instance of a society that

organized its monetary system differently.

There always been alternatives

and there are alternatives now.

What the evolution of

money really teaches us..

is that the real measure of money value

is very simple, its usefulness as money

There are several different

ways to create useful money.

For instance, money can simply be an

individual's private promise to pay.

A pledge of one's own product or service, as in such

community currencies,as the LETS system or time dollars

Thousands of these community currencies

already exist, in circles of trust...

where members can be counted on to honor

the credit they issued for themselves

In such community currencies can be a life saver, in the event

of a catastrophic collapse of the conventional banking system.

When money shortages or hyperinflation,

disrupt trade and bring economic standstill..

a working community currency

can sustain a local economy.

Are such proposals radical? You bet.

But there are unprecedented

challenges before us.

No longer can exponential growth

allow us to sustain a monumental debt..

that must ever increase to prevent a house

of cards collapse of the whole system.

Increasing wealth disparity, crushing debt , failing banks

and social and environmental catastrophes, are what we face..

unless we radically change course

We must transform our monetary system, to one that

can adapt, to future that we can now clearly foresee.

To begin, we must explore monetary system designs,

that can deal with wide spread economic shrinkage...

without inducing massive

foreclosures and bankruptcies.

But what can you do right now??

Right now, there are people and organizations around

the world, that understand the problems and the injustice

of today's monetary system. And you can join them in

their effort, to bring about a fundamental changes we need.

Its time to talk to our friends. The financial

crisis is the ultimate teachable moment

When bankrupt banks have to be bailed out by the governments, the banks

where formerly lending to, the contradictions, the fraud and the fatal flaws

of the current system...

are laid bear for all to see.

But the solutions, are

there to see too, if we look.

We can not afford business as usual, making

adjustments to the current system, would not save us.

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