Category Archives: Finance and Economics

50 ways to leave the Euro: Greece and the global crisis

My two month visit to Greece last summer prompted me to develop some proposals that might be applied in Greece and other countries where the government has become insolvent. I’ve written these up in an article that was recently published in the online journal, Common Dreams.  You can read it there or here below. It was also republished on Resilience and can be found there.

50 ways to leave the Euro: Greece and the global crisis
By Thomas H. Greco, Jr.

The problem is all inside your head, I told the Greeks
The answer is easy, you need only stop the leaks
The power is yours to claim the freedom that you seek
There must be fifty ways to leave the Euro
(Apologies to Simon and Garfunkel)

Following the resounding “NO” vote by the Greek people on the bailout conditions in the July referendum, the negotiations between the Greek government and “the institutions” resumed with the expectation that a better deal for Greece would ensue. The outcome was quite the contrary. Greek negotiators ended up agreeing to a bailout deal that was far more onerous than the one the voters had rejected. Why?

The harsh reality is that the Greek government is insolvent. Having been lured into the debt-trap and the shared euro currency by western oligarchs using a combination of measures, including outright fraud, Greece was forced to accept the onerous conditions attached to the first two bailouts. Now it has been bludgeoned into accepting a third. The weapon of choice is the euro currency itself which is being wielded by the European Central Bank (ECB). By throttling the flow of euro currency into the country, the ECB last summer created near chaos in the Greek economy. This, and the threat of even more severe punishment in the future, was enough to bring the Greek government to heel.

With sovereign debt up around 180% of GDP, there is no way that the Greek government will ever be able to grow its way out of the current mess. The draconian measures demanded by the creditor institutions will just make it worse. Even the IMF has acknowledged (with apparent reluctance) that some debt relief is necessary for the Greek economy to recover. The new agreement forces the Greek government to yield even more sovereignty and to open its economy and its people more fully to exploitation by corporate interests and transnational banking institutions. Read the entire article…

The changing picture in complementary currencies

During my August visit to the Sardex trade exchange on the island of Sardinia, they recorded (on August 13, 2015) this short interview. In it I cover a few important points on the liquidity problem and how commercial trade exchanges help to solve it.

Sardex, an emerging model for credit clearing exchanges?

Last week I had occasion to visit the Italian island of Sardinia and spend a few hours meeting with the founders and managers of a commercial trade exchange called Sardex. Here below is an abbreviated report of what I learned. The pdf version of the report can be found here.

Sardex, a brief report
by Thomas H. Greco, Jr. August 15, 2015
I recently spent a few days on the Italian island of Sardinia conferring with the founders and administrators of Sardex (, a commercial credit clearing exchange that has been notable for its success in organizing small businesses and service providers on this island of about 1.6 million people.

I’ve known about Sardex since almost its beginning five years ago and have corresponded over the past few years with Giuseppe Littera, one of its founders, but this was the first opportunity I’ve had to get an inside look at their operation. I came away with a pretty good understanding of how they operate and the impression that the Sardex structures, procedures, and protocols come closer to optimal than any other trade exchange I’ve seen. It appears to be a developing model that is both scalable and replicable.

I will not attempt to provide here a comprehensive report or detailed analysis, rather I will highlight a few major points and provide some sources of additional information for those who are interested in doing their own research.

Some highlights:
Current membership: ~3,000
Current transaction turnover: ~1.5 million euro equivalent per month
Expected turnover for 2015: 50 million
Velocity of credit circulation: 12 times per year
Employees included as sub-accounts: 1,000

When I asked about the key factors that account for their success, here is some of what I was told:

1. Founders are dedicated to the mission to relocalize and rehumanize the economy and to reconnect people by enabling the creation of interest-free local liquidity based on the production capacity of local businesses.

2. Social solidarity and cultural cohesion, while very important and part of the mission, were NOT a pre-existing factor that would account for their early success. In fact, they have had to work hard to develop social solidarity and cooperation amongst their members, but this is now changing. One account broker told me, “I can see how behavior of many of our members has changed. When the financial crisis first began, they were starting to lay off employees or cut their wages, and they were reluctant to spend their euros. This made matters worse as the circulation of money slowed down. But as they began to participate in the process of earning and spending trade credits, they began to increase pay to their workers and to invest in their education. In one case, when a member’s shop was burglarized, other members stepped up to help by donating some of their trade credits to help their fellow member recover from the loss.”

That anecdote demonstrates the differences in behavior that results when people experience scarcity compared to when they experience abundance. In this case, the scarcity of euros caused behavior to change in the direction of reduced willingness to spend and the contraction of overall economic activity. But their experience with trade credit was much different. Realizing the greater availability of trade credits, and finding it easier to earn them, leads people to experience abundance and to be more generous and spend more liberally.

3. I was surprised to learn that the Sardex revenue model relies mainly upon initiation fees and annual membership fees (collected in euros); and that they had decided early-on to stop charging fees on transactions. For me, that approach is counter intuitive in that I have long held the view that recruitment would be most successful if membership were made easy, low cost, and risk free, and that it seems reasonable to apply the principle that users pay in proportion to the amount of services they receive. In this case, that principal would mean that those that receive more credit clearing services should pay more. Well, this may be a case where successful practice trumps rational theory. Marketing specialists should look closely at the dimensions of this phenomenon.

There is however some logic in this approach in that, since the cost of participation is relatively fixed, members should seek to maximize the benefits of their membership by trading more within the network. Initiation fees are set according to the size of the business and range from 150 to 1,000 euros. Annual membership fees are likewise based mainly on turnover and range from 350 to 2,500 euros.

4. Strong member support by an effective staff of brokers who help to arrange trades, especially for those that have high earning capacity to avoid excessive accumulation and high positive trade credit balances.

5. Recruitment strategy tries to replicate the supply chain, i.e., bring in businesses that are the suppliers of existing members or prospective members.

6. “Solidarity threshold.” Requirement that members offer their goods and services for trade credit at the same prices as their euro prices, and that payment be accepted 100% in trade credit on all transactions of less than 1,000 euros. “Blended trades,” i.e., payment in a combination of trade credits and euros are allowed on larger purchases, according to a sliding scale).

7. (a) Restrict membership to companies that have a registered office in Sardinia. This promotes social solidarity and excludes large multi-national corporations. (b) Avoid “saturation” (accepting too many members that offer the same line of products or services).
[While I am fully supportive of the former of these, and would indeed, permanently exclude multi-national companies, this latter practice of avoiding saturation I consider to be of use only in the initial stage of establishing credit clearing as a credible means of exchange and an effective source of local liquidity. Ultimately, I believe that membership must be open to any community-based small or medium enterprise (SME) that meets the basic qualifications for membership. Of course, not all of them will qualify for lines of credit.]

8. Fully compliant with reporting and tax regulations. Transparency is a matter of fundamental importance.

9. Emphasis on monetizing the unused capacity of members. Connecting unused supplies with unmet needs is a primary benefit of credit clearing services.

The Sardex company has been consulting with other groups to replicate their system in seven other regions around Italy. In the future, Sardex is planning to initiate a rebate program to bring consumers into the trading community, which will enhance the circulation of local trade credits, make Sardex better known, and stimulate more sales for their business members.

Here below is a list of a few of the many reports and sources of information about Sardex. Readers are invited to add others as comments.

From an idea to a scalable working model: merging economic benefits with social values in Sardex, by Giuseppe Littera, et al, at the London School of Economic, Inaugural WINIR Conference, 11-14 September 2014, Greenwich, London, UK.
You can get a pretty good picture of the distinctive features of Sardex by viewing Giuseppe Littera’s presentation that was made (in English) at a conference in Volos, Greece, in 2014. It is to be found on YouTube at,
Report (in Italian) in the Italian daily newspaper, La Repubblica: Dalla Sardegna al resto d’Italia. Sardex inventa la moneta complementare. “Abbiamo ripensato l’economia.” [English translation needed.]

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A Monetary Reform Proposal for Iceland

I have recently received from several sources word of a new monetary reform proposal. This one, commissioned by the Prime Minister of Iceland, is titled, MONETARY REFORM A BETTER MONETARY SYSTEM FOR ICELAND, and is authored by Frosti Sigurjonsson.

I’ve taken the time to read only the Overview and summary portion, but that is sufficient to discern the crux of the Sigurjonsson proposal, which is this:

The Central Bank will be exclusively responsible for creating the money necessary to support economic growth. Instead of relying on interest rates to influence money creation by banks, the Central Bank can change the money supply directly. Decisions on money creation will be taken by a committee that is independent of government and transparent in its decision-making, as is the current monetary policy committee.

New money, created by the Central Bank, will be transferred to the government and put into circulation in the economy via increased government spending, by reduction in taxes, by repaying public debt or by paying a citizen dividend.

The Central Bank will also be able to create money for lending to banks for onward lending to businesses outside the financial sector.

Sigurjonsson indicates that his proposal draws heavily upon an earlier proposal titled, A Monetary Reform for the Information Age, by Joseph Huber and James Robertson (New Economics Foundation (2001)), which I critiqued early in 2002. That critique, along with subsequent dialog between the authors and myself, can be found at

Since both the Sigurjonsson proposal or the Huber/Robertson proposal advocate the same basic approach, I strongly believe that any serious consideration of either, should also consider my above mentioned earlier critique and subsequent dialog.

While I agree with much of what Huber and Robertson (and presumably, Sigurjonsson) say about the defects in the present money system, I believe that their proposed centralized “solution” does not go nearly far enough in solving those defects. Continuation of the money monopoly in (presumably) different hands does not get to the root of the problem. It is my view that the key to achieving more equitable and sustainable economic interrelationships lies in liberating the exchange process from monopolized money and banking, enabling the creation of competing currencies and credit clearing exchanges, and allowing the needs of traders themselves to determine the supply of exchange media (money) in circulation at any given point in time.

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Money and Society: Free university-level online course being offered

A free online course (MOOC) in Money and Society is being offered by Professor Jem Bendell, PhD (IFLAS) and Matthew Slater, under the aegis of the Institute for Leadership and Sustainability of Cumbria University. The four lessons of the course, intended to” explode myths about the history, nature, present and future of money,” will commence 16 February 2015 and conclude 18 March 2015. For details and registration go to


Newsletter – 2014 Year end

In this edition:

  1. Upcoming interview—December 13, 11 AM Eastern time (8 AM Pacific time)
  2. My New Course Offering — Principles of Exchange Innovation
  3. Report on California Tour
  4. Major conference upcoming, June, 2015
  5. My next book?, + video projects


Upcoming Interview

I have accepted an invitation to be the featured guest on Bartertown Radio on Saturday, December 13.

Bartertown Radio, which describes itself as “your educational station for Trade,” is a Live Radio Talk Show every Saturday Morning at 11:00 EST ( check your local time please). My interview will be all about moneyless trading and exchange innovation, particularly as it applies to the commercial trade exchange business. To listen in and/or share your thoughts you can call 1-347-989-8557 for the show. Calls can be made using any phone or by using your Skype account which provides calls at very low cost especially for those living outside the U.S.


My New Course Offering — Principles of Exchange Innovation

As the years pass I become ever more aware of time as a scarce commodity, and as the global mega-crisis intensifies, I feel a greater urgency about the need to transcend the global interest-based, debt-money system that is driving us to destruction. Thus I am eager to pass on to the next generations the important insights and discoveries I have made over the past 35 years. I am intent on doing this in ways that will have a greater impact than the presentations, workshops and writings I have been producing over the past many years.

While I relinquished my formal academic career decades ago in favor of independent inquiry, scholarship, writing, and consulting, I remain a teacher a heart and am making it my highest priority to offer a course in the Principles of Exchange Innovation. I am quite sure that there is no other course like this anywhere, and I am uniquely qualified to conduct it.

It is my intention to guide dedicated cadres of change agents through an intensive process of inquiry, discovery, and planning to bring to market revolutionary structures and processes for value exchange that promote a sustainable economy and have the potential to usher in a new equitable and peaceful economic paradigm.

I am willing to go wherever suitable venues might be found. I’ve considered offering this as an online course, and that can be one component of it, but I believe that the impetus toward timely and effective action requires the continuity and intensity that comes from the regular face-to-face interaction and ongoing collaboration in a classroom setting.

You can find the detailed course description and syllabus here:

Prospective course participants and host institutions are invited to fill out the short form at If you know of other institutions, departments, or individuals that might be interested in participating, please pass this along to them.


California Tour-October/November

My two week trip to California in October could not have been better. It started with the Living the New Economy Convergence that was held in Oakland, October 23-24, and ended with a delightful visit with my dear friends, the Lub family, in Napa and Martinez. In between, I gave another presentation at the Institute of Noetic Sciences, attended an open house at the new Oakland offices of Berrett-Kohler Publishers, and conferred with several long-time friends and colleagues.

Living the New Economy Convergence

The convergence was the best conference I’ve attended in many years—well organized, with excellent presenters, and participants that were enthusiastic, well-informed, and intelligent.

A few of the presentations, including one of my own, were recorded by Bitcoin magazine. My presentation during the panel on The Future of Value Exchange can be found in my blog post here. Links to the others can be found here, and a few photos that I took at the Convergence can be viewed on my Picasa Web gallery. If you would like to see a more detailed report on this event, check out this one on the Shareable website.

The convergence was followed by a two day “hackathon” that gave participants an opportunity to brainstorm together and propose ideas, collaborations, and business projects. Sergio Lub’s pictures from that part of the event (October 25) are on his Flickr site.


The event at the Institute of Noetic Sciences (IONS) on the evening of October 30, was very gratifying, drawing about a dozen participants, many of whom I’ve known and worked with over the past several years. My presentation titled, The Evolution of Money and its Potential to Improve Humanity, was followed by a lively discussion that went on for more than 2 hours. The entire proceedings were video recorded by Sergio Lub and can be seen via my blog post at

Sonoma GoLocal

The day before I left to return to Arizona, Sergio and I visited our friends who run the Sonoma GoLocal project. This is an exciting project that goes well beyond the conventional “buy local” agenda.IMG_4919

A few years ago, Sonoma GoLocal initiated a merchant rebate program, which is gradually becoming more popular. According to Terry Garrett, about 17,000 swipe cards have been issued to consumers and there are now 53 merchants offering “Reward Points,” with each merchant choosing their own percentage rate of rebate that varies from 2% to 10%, with the median rate being 5%.

Over the past year they have experienced a growth rate of about 20% in both the number of participating merchants and the number of cardholders. Between January1 and September 30, 2014, the amount of transactions involving either issuance or redemption of Reward Points was about $3.8 million with that number expected to reach $5.5 million by year’s end. Sonoma GoLocal has been publishing both a printed pocket guide and a free bi-monthly magazine that help to make the project financially viable. You can see some photos from our meeting, including cover photos of the publications here.


Seizing an Alternative: Toward an Ecological Civilization

I would like to make everyone aware of a major conference that is upcoming next June 4-7. This conference, to be held on the campus of Pomona College, located in Claremont, CA, is the result of several events held in conjunction (10th International Whitehead Conference, 9th International Forum on Ecological Civilization, Inaugural Pando Populus Conference, Pilgrim Place Centennial Celebration, and Process & Faith Summer Institute) and will consist of 12 Sections divided into approximately 78 Tracks. Each Track will have 8 sessions, which will be 90 minutes each.

After my meeting with renowned philosopher and theologian, John Cobb, a couple years ago, he invited me to participate in this conference which he was then helping to plan. I will be presenting in Section I, The Threatening Catastrophe: Responding Now, Track 6, Political Collapse: The Alternative. You can get all the details, and register at


My next book?, + video projects

I’m aware that in today’s information-rich environment people tend to be overloaded and getting their attention is becoming ever more difficult. Short videos on YouTube, Vimeo, or other video showcases are probably the best bet for getting a message across. I’m hoping to find someone with the requisite editing skills to help me parse some of my recorded presentations into short topical lessons. That, combined with a new book aimed at the mass market, might attract the kind of attention, and provide the essential information needed to dispel false beliefs that prevail in the minds of the general public and stimulate the kinds of fundamental structural changes that are becoming ever more urgent. I’m inclined to give this new book a provocative title, like Everything You Know About Money (And Banking) Is Wrong! It would follow a question and answer format that presents first a fundamental question, then the orthodox answer and prevalent belief, then the truth of the matter as I have come to see it.

This project is of course a major undertaking, and if it is to achieve the kinds of results hoped for, calls for some skills and resources that exceed my own. Collaborators and suggestions are invited.


Finally, on a personal note, after spending the summer in Bisbee, I’ve reestablished myself in Tucson, sharing a house on the far east side, close to the Rincon Mountains and Saguaro National Park. Though a bit distant from downtown, it is in a lovely, peaceful setting—rather ideal for creative work.IMG_4942

My accustomed robust health has been disturbed in recent months by some digestive difficulties. A course of medication and a combination of dietary changes and natural supplements seem to be resolving the worst of it and I’m hopeful that I’ll soon be back to normal.

Best wishes to all for a Happy Holiday Season, and may the coming year bring a great leap forward in creating a more peaceful, just, and sustainable world.


Thomas Greco’s presentation at the Living the New Economy convergence, Oakland, CA, October 23, 2014

At the recent Living the New Economy convergence in Oakland, I was the first speaker on a panel that addressed the question of the Future of Value Exchange. Here it is below:

If you would like to download the slide deck of that presentation, you can get it here. I had only enough time to show the first 15 slides; the other were included for possible discussion.

You can also find some of my other presentations and interviews on my YouTube playlist.

You can find video recordings of several other sessions from Living the New Economy convergence here.