Monthly Archives: May 2007

Should We Go back to Using Gold as Money?

Many people these days are arguing for a return to using gold (or silver) as the primary exchange media.

This would be a mistake.

While commodities like gold or silver may have a role to play in defining the unit of measure of value, to revert to using such commodities as means of payment would create more problems that it would solve. (Part III of my book, Money and Debt explains the need to segregate the typical monetary functions and shows how to do it).

Credit money is a higher stage of evolution than commodity money (including gold and silver). For more on this, see my slide show on the Evolution and Transformation of Money.

Just because credit money has been monopolized and perverted, that is no reason to abandon it and revert to more primitive forms. Credit money instead needs to be liberated and perfected.

Demanding gold as payment means you are not willing to trust your trading partners. Sure, that trust must be well considered. It should be based on relationship history, past performance, prudent judgment, and a willingness to take some risk. By organizing this process within credit clearing association, we can liberate the “credit commons” and mitigate the risks of default, while at the same time, reducing our dependence upon the dysfunctional political money and banking system.

The Emerging Web-based Non-governmental Global Exchange Network – Part III

CES, a web-based platform for mutual credit clearing has been developed by Tim Jenkin and associates of South Africa.

This site is presently hosting dozens of local exchanges based in various parts of the world.

An Annotated Précis, Review, and Critique of Prof. Tobias Studer’s WIR and the Swiss National Economy by Thomas H. Greco, Jr. and Theo Megalli

An Annotated Précis, Review, and Critique of WIR and the Swiss National Economy by Prof. Tobias Studer (translation by Prof. Philip Beard).

This is a summary and discussion of important points relating to the operations of the Swiss WIR Bank.

Dr. Studer’s book was originally written in German under the title, “WIR in unserer Volkswirtschaft”