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Re: How would you build a monetary system out of the 5 …

Home Forums DISCUSS General Discussion and Questions How would you build a monetary system out of the 5 types of money? Re: How would you build a monetary system out of the 5 …

  • Mon, Jun 22, 2009 - 02:34pm

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    Peak Prosperity Admin

    Peak Prosperity Admin

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    Re: How would you build a monetary system out of the 5 …

Any monetary system has to match the goods and services in the economy which fluctuate with time. A gold-based (or any relatively-fixed-amount commodity) system is not flexible during economic booms or recessions. In a boom (or any growth period), as more goods and services become available, prices will have to drop but so too will wages. It has been shown repeatedly that workers are incredibly reluctant to accept this, partly because debts become un-repayable. The gold standard also creates difficulties for any government that wants to raise revenue for long term investments.

However the main problem of commodity based systems are still susceptible to manipulation by both private investors and centralised governments (although not as much as the current system). If a large part of the commodity is accumulated (by either private or government) then the public can be held to ransom for the use of their commodity to exchange their goods and services. True democratic liberty will only come when the monetary system is liberalised such that no one (neither private nor government) can manipulate it. Decentralised credit and finance networks have recently become technologically feasible and more commonplace using systems such as LETS, complementary currencies, mutual credit clearing circles, commercial “barter” exchanges – all methods used for reclaiming the “credit commons” (to use a phrase coined by Thomas Greco, whose recent book “The end of money and the future of civilization" I highly recommend by the way).

http://www.amazon.com/End-Money-Future-Civilization/dp/1603580786/ref=sr_1_1?ie=UTF8&s=books&qid=1245680713&sr=8-1