Category Archives: Exchange Design

The Usury Conjecture on the centralized, interest-based, debt-money system

The Usury Conjecture on the centralized, interest-based, debt-money system
Revised June 2, 2022
Thomas H. Greco, Jr.

The Usury Conjecture in a nutshell
The central banking, interest-based, debt money system that is dominant around the world today is neither stable, nor sustainable, nor fair. The creation of money based on bank lending with interest creates an imperative for debt to grow exponentially with the passage of time. That debt-growth imperative drives artificial economic growth as borrowers compete with one another to acquire enough money from the always insufficient pool of money to service their “loans.”

When I first began my intensive inquiry into money, banking, and finance more than 40 years ago, it did not take long for me to discover the essential nature of money, where it comes from and how it is created, allocated, circulated, mismanaged and abused. I was astonished that this system has been allowed to become such a dominant force in the world, that it has wreaked such enormous devastation upon the world, and that it has been allowed to go on for such a long period of time. What has led me to those conclusions has been thoroughly documented in my many books, articles, and web posts.

I have long wondered why there seem to have been no serious attempts to model the monetary system that predominates today throughout the world. Then, in November 2011, I again met up with a well known economist at a conference in Michigan where we were both presenters. In his presentation he reported having conducted such a simulation in which the results showed an equilibrium state being reached. I was dubious about his conclusions but in the context of the conference there was not sufficient opportunity to raise pertinent questions or to discuss them in any depth. I later wrote to him with my questions and asked him to respond to my assertion that some of his underlying assumptions about the system that he used in his simulation might not have been realistic. That was the beginning of my attempts to more fully articulate my “usury conjecture” which over the subsequent years has gone through several revisions. I think my arguments are sufficiently well developed at this point to be useful to others in understanding the system and in designing realistic simulations and mathematical models that are able to reveal its inherent flaws. 

In my critique, I did not say that his model was “wrong,” only that some of the underlying assumptions were unrealistic and his model too limited to adequately describe the system as it presently exists. Here are the points that need to be considered:

Free banking. He stated at the beginning of his presentation that his model was a simulation of the monetary system as it existed during the “free banking” era in the United States around the mid-eighteen hundreds. But we no longer live in that world, money and banking have undergone a great many changes since that time and the free banking model does not describe today’s reality. Among the very significant changes have been:

  1. The centralization of credit allocation power in the hands of a few huge banking companies. During the free banking era, that power was greatly decentralized, there was much more competition among banks and their asset portfolios consisted mainly of loans to businesses in the bank’s own geographic region, and much less in US government bonds or loans to massive diversified corporations which did not exist at that time.
  2. The imposition of forced circulation (by means of legal tender laws) of a unitary national currency under the Federal Reserve System that ultimately decoupled the currency from any objective measure of value (like a fixed weight of gold or silver). During the “free banking” era, each bank issued its own “brand” of bank note denominated in dollars.
  3. The gradual elimination of the redeemability of currency for specie (gold or silver) obliterated the objective measure of value, disconnected the money economy from the real economy, and opened the door for extreme monopolization of credit and the abusive inflation of the currency.

What happens to a bank’s interest income? As I understood his presentation, he made the assumption that the banks spend all of their interest income back into the economy, but that is clearly not the case. While a portion of a bank’s revenues are used to pay employees, and cover other expenses like equipment and facilities, it seems that most of the bank’s interest income is added to capital or re-enters the economy, not as consumption spending but in the form of additional loans or as reserves deposited with the central bank that enable further loans to be made, or as payouts to bank owners who, rather than spending it on consumption, use it themselves to lend it out, adding a secondary layer of debt and interest to the economy which creates a further shortage of money available for debt repayment. All of that requires a further expansion of lending (debt) by the banks to keep the money supply expanding enough to prevent too many defaults and subsequent bankruptcies, unemployment and economic depression.

Savings and investment. What does the bank do with peoples’ savings? In his reported simulation he did not describe the accounting entries that accompany the deposit of peoples’ savings, but savings and investment are two sides of the same coin. A bank, in its role as depository (as opposed to its primary role as “bank of issue”), reallocates surplus money (savings) from those who wish to save to those who need to use it now for capital formation (expansion of production capacity), or to spend on consumer goods when there are lulls in their income streams (consumer finance). The interest banks charge on these loans far exceeds the cost of providing the service and the interest they pay to savers, which creates further imbalances in income and wealth distributions.

Debt repayment. Repayment of principal on loans naturally results in the extinction of that amount of money. As old loans are repaid, new loans must be made to keep the money supply from shrinking which would cause additional defaults and economic stagnation or depression. New loans may or may not be sufficient to compensate and maintain the money supply. There must be both banks that are willing to lend and companies and people that are willing and able to borrower, but when the private sector had taken on as much debt as it can bear, government becomes the “borrower of last resort” in order to maintain or increase the money supply.

The role of a central bank. The central banks in countries around the world may or may not be a nominal part of the government. In the US, the Federal Reserve is an independent entity owned by banking corporations that pursue their own interests. There developed long ago, with the founding of the Bank of England, a collusive arrangement between banking and government. On the government side, the agreement enables perpetual deficit spending; on the banking side, the agreement enables the emergence of a banking cartel that enjoys the privilege of lending the peoples’ own credit back to them and charging interest for it. The advertised role of a central bank is to limit inflation and promote full employment. In actuality, the role of a central bank is to enable inflation sufficient to support government budget deficits while protecting and preserving the bankers’ privilege to milk the productive economy and enlarge their own wealth and political power.

Basis of issue. Besides the need to be free of interest, money needs to be issued on a proper value basis. There have been volumes written about this point, but sound principles of commercial banking have been discarded over the years because the perpetuation of the flawed system requires it, and because those who control the machinery of money use their power to promote their own narrow interests of wealth and power. Thus, some loans that banks make are legitimate while most are not. Banks should create new money to enable the production and sale of goods that are in the market or soon to arrive there. They should not make loans for speculative purposes or to monetize government debts as they commonly do today.[i] Thus, we have a stream of legalized counterfeit that dilutes the purchasing power of all the legitimate money in circulation. This currency inflation leads to price inflation, which amounts to a “hidden tax” that disproportionately harms the middle class who have substantial amounts of savings invested either directly or in pension funds which they do not control, and this “tax” hurts low income people who need to spend the bulk of their income just to survive.  

The economy. Economists and politicians speak about THE economy as if it was a unitary whole, but there are actually many economies depending on geography, social and economic class, and there are the public sector and the private sector. There may be prosperity in some sectors, while others experience recession. Distinction is commonly made between the private and the public sectors, but it is essential to also distinguish between the small and medium sized enterprises (SMEs) and entrepreneurs on one hand, and the large corporate megaliths on the other. In recent decades, banks have gotten ever larger and their lending has been directed mainly toward central governments and large corporations, while at the same time the productive small and medium sized enterprises that are the backbone of every local economy have been starved of the credit they need to finance their operations. By acting in this way, banks limit or eliminate the risks they take. In the case of lending to central government (by buying its bonds and notes), banks enjoy a guaranteed return with no risk at all. During the pandemic years the bulk of the government stimulus money went to large corporations while many small independent local enterprises were forced to close and were never able to reopen.  

“Cash” held by the banks. It is misleading to say that banks are sitting on a lot of cash instead of lending it out. In fact that “cash” has been lent out to the public sector (government) in the form of treasury bills, notes, and bonds, or to the central bank which holds it as “reserves” and on which the banks receive interest.

It seems obvious that the present global money system contains inherent in it a debt-growth imperative because of the interest burden that is attached to the bank loans that form the basis for money creation. I believe that any model that purports to simulate the actual present system of money and banking must account for most of the banks’ interest income as capital which is then loaned into circulation rather than spent, and if that were the case it would show that there can be no steady state but an endless growth in debt which leads to a general growth imperative and destruction of the Earth’s ecosystem as the real economy tries to expand in step with the overall debt.

That is in fact what the empirical data suggests. Any theory in opposition to the usury conjecture must provide an alternative explanation of why the total debt in the world continues to grow exponentially at a much faster rate than population or any measure of growth in the real economy as is show in the following charts.

Figure 1 the Institute of International Finance

Finally, the inherent inequity of this money system is obvious and is becoming ever more extreme year by year. The increasing inequalities in income and wealth are not natural phenomena; they are artifacts of the system architecture and management. Mere policy tweaks cannot correct that. The creation of money as interest-bearing debt by a banking cartel pumps virtually all of the benefits of productivity increases into the hands of the top level bankers and their minions whom we naively trust to operate the system in the interests of the common good.

History is replete with stories of collapse of societies resulting from exponential growth of debts and extreme inequalities among the various classes of the population. I have long argued that since money throughout the world today is based on “loans” made by banks at interest, the exponential growth of debt is required to keep the system going. That is clearly evident in the empirical evidence of debt growth over the past 100 years and especially since 1971 when the last link of money to anything real was severed by President Nixon’s announcement that US dollars would no longer be redeemable for gold.

The global economy is a complex adaptive system, but collapse happens when a system fails to adapt in an effective way. Jubilee or periodic resets have been common throughout history going back before Biblical times. Economist Michael Hudson has had much to say about that in his various writings especially in his latest book, …and forgive them their debts. I have been arguing for “debt triage” and a long term shift of finance away from interest-bearing debt financing and toward shared equity financing but because of the concentration of political power in the hands of the vested interests, and the general lack of understanding and concern about the flaws inherent in the present systems, I see little likelihood that these measures will be implemented soon enough to avoid major economic disruptions and social and political turmoil. That leaves innovative private and community initiatives as the most promising approach to avoiding disaster.

I have taken a functional approach to solving the problems that are inherent in the present global system of money, banking and finance and argued that the supposed functions of money–means of exchange, savings medium, and measure of value, are in fact distinct from one another and must be handled separately. The exchange function which is the essential function of money should be mediated by the use of interest-free short-term credit allocated to producers in proportion to the value of goods and services they are ready, willing and able to sell within the next few months. The savings function and the investment function on the other hand are two sides of the same coin and should be provided for by the temporary assignment of savers’ funds to enterprises that will use them to expand production capacity or develop new capacity. The measure of value function needs to be provided by defining a standard of value and unit of account in terms of some selected commodity or group of commodities.

I have described numerous alternative structures and systems to serve the exchange function, including private, local, and community currencies, and decentralized credit clearing networks of buyers and sellers and have cited numerous historical and current examples. I’ve also described financing arrangements that shift the capital formation function from interest-based debt financing to shared-equity financing that shares both the rewards and the risks of business investment. These are the actions that I am confident have the ability to prevent the disastrous collapse of civilization while enabling the necessary transformation to a peaceful, healthy and regenerative society. All of this has been thoroughly articulated in my books, The End of Money and the Future of Civilization, Money: Understanding and Creating Alternatives to Legal Tender (excerpted here), and in my various articles, presentations, and interviews which can be accessed at

Addendum of Tuesday, June 28, 2022:

One of my correspondents recently asked if the interest that banks charge when they create money by making loans causes inflation. Perhaps this response will help to clarify the picture of our current monetary and economic predicament, and add some precision to my usury conjecture.

First of all let me make clear that, while the money needed to pay the interest on a particular loan is not created when the loan is made, the banks must create sufficient money (by making additional loans) to enable the aggregate money supply to stay ahead of loan principal repayments, otherwise the money supply will contract and cause economic depression (defaults, business failures, unemployment, etc.). Thus, the creation of money by banks on the basis of interest-bearing loans biases the entire system towards deflation (too little money), as I described in my Usury Conjecture document,

To compensate for that, banks push hard to induce private borrowers (corporations and individuals) to take on additional debt. But there is a limit to their willingness to borrow more and to their ability to repay, therefore the national government steps in to play the role of “borrower of last resort.” From the banks’ perspective that is ideal because when a bank lends to the government (by buying government bonds, notes, or bills) it gets a guaranteed return and takes no risk of default. Politicians are all too willing to go into debt to dole out money to their corporate patrons (especially weapons and drugs makers) who fund their election campaigns, and to curry favor with the voters by throwing a few crumbs their way. The government therefore goes way beyond borrowing the amount needed to keep the money supply sufficiently pumped up to avoid deflation, and thus creates inflation by funding many things that are pure waste from a consumption and environmental standpoint. So, does interest on bank loans cause inflation? No, not directly, but indirectly as I’ve just explained.

As economist Milton Friedman has famously said, “Inflation is always and everywhere a monetary phenomenon,” and on that point, I agree with him. It’s not just the amount of money that causes inflation; it’s the basis upon which the money is issued. Price inflation is mainly caused by money debasement, which is the creation of money on an improper basis. An improper basis is any loan that is not made to enable the sale of goods and services that are readily available in the market in the near term. Thus, improper money creation is based on loans that are made to finance speculation, or to finance long term capital improvements that create consumer goods only in the far distant future, or to purchase debt instruments of the government. None of those put additional goods or services into the market for purchase in the near term; therefore you have “more money chasing the same amount of goods and services,” or money being put into circulation faster than goods and services are being produced.

It is possible for some price inflation to be caused by reductions in supplies, but that is usually limited to particular products. However, in today’s global economy there are various factors that are affecting supplies more generally, so that has become a contributing cause of the inflation that is being experienced at this time.

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My reply to, Prof. Richard Werner on “the central banking system and how to start regional alternatives.”

Earlier this month Prof. Richard Werner posted a video on YouTube, which I thought was quite good in explaining the way banks create money, but I felt moved to post a response to it that provides some fundamental concepts and clarifies what is required to start regional alternatives  to dominant centralized banking system and political fiat monies. I recommend that you watch Werner’s 10 minute video, and then contemplate my responses.


Thomas H Greco Jr

Prof. Werner makes many good and important points in this lecture, about how money is created and allocated by huge banking institutions which gives them enormous power over governments, people and the economy. Yes, control of money needs to be decentralized and democratized. Public and community banks are important elements in achieving that but they exist within the current dominant paradigm of creating money by making loans at interest, which is a fundamental flaw that forces a growth imperative. Debt grows exponentially as time passes so there is never enough money to enable all borrowers to pay what they owe. A distinction must be made between “exchange credit” and “investment credit.” The former should be allocated without interest to producers based on the value of goods and services each is able to sell immediately or in the near-term; the latter should be the reallocation of existing money from savers to entrepreneurs. The exchange function can best be organized as credit clearing circles, like the original WIR cooperative circle that Werner mentioned, then these various circles can be networked together into a global system of exchange. I have been articulating these points and more for the past several decades, most recently in a webinar I conducted for the University of Hertfordshire in November 2021: 2021-11 Transcending the present political money system–the urgent need and the way to do it. (  The Q&A that followed is at  

Vox Libertatis

Thank you for the insightful comment, Thomas. What are your thoughts on the concept of interest in general? Is a interest-based financial system doomed to always end with enormous inflation culminating in financial collapse?

Thomas H Greco Jr

That’s a very good question. One must distinguish between primary interest that banks impose on “borrowers” in the process of creating debt-money, and secondary interest that is demanded by those who hold existing money when they lend it to others for whatever purpose.

The primary interest causes debts to banks to grow exponentially because the interest payments do not, for the most part, go toward consumption expenditures but to ever expanding pools of capital held by “capitalists.” Thus, the money supply available for repayment to the banks is always deficient unless the banks create more money by making more “loans” to stay ahead of the extinction of money that occurs when principal payments are made. The empirical evidence of debt growth over time clearly supports this; I call it the ‘usury conjecture,” which I hope will eventually be proven mathematically and/or through some realistic model of the system.

The so-called “business cycle” that oscillates between inflation and depression is natural result of that inherent flaw in the centralized, interest-based debt-money regime. The interest must be paid, one way or the other. Quantitative easing by the various central banks amounts to life support for that failing system. It is essential that the new system be ready to take over before the plug is pulled on the old one or it dies in a chaotic collapses.

Capital can dominate only when exchange media are scarce, either naturally (commodity money like gold and silver) or artificially (centrally controlled debt money). When exchange media are abundant there is no basis for demanding interest. That abundance derives from reconnecting to the real economy of valuable goods and services. As E. C. Riegel clearly showed, only producers are qualified to issue (credit) money. That is money that producers SPEND into circulation and is accepted by others as payment based on the issuer’s credible promise to accept it back as payment for their own goods and services that they are ready, willing and able to deliver immediately or in the near term. That credit money can take the form of currency vouchers (physical or digital) issued interest-free by individual producers, or more effectively, issued jointly by the members of credit clearing circles. Those circles can then be combined into a global network of exchange in which trade credits are allocated and controlled locally but are globally useful as payment. I outline that system toward the end of my previously mentioned webinar ( Once that system is in place, interest on secondary “loans” will give way to returns on equity shares as a way of funding capital formation.

Riegel remains obscure but there is more to be learned from his legacy works that from any other source I know of. My annotated précis of his, Private Enterprise Money, can be found at, and his main works can be downloaded from my website at    

My latest appearance on the Intercoin show

I appeared on today’s Intercoin show in conversation with crypto entrepreneurs that covered a range of interesting topics including cryptocurrencies, NFTs, exchange alternatives, and digital savings mechanisms. View and listen on YouTube,

A new paper on my Solar Dollar proposal has been published.

On July 12, 2021, I presented my Solar Dollar proposal as part of a two day virtual conference titled Pathways to Resilient Zero Carbon Cities, organized by Zero Carbon Lab, School of Creative Arts, University of Hertfordshire (UK). Following that presentation, I was invited to submit a paper describing my proposal for publication in an academic journal. That paper titled, Solar Dollars: A Complementary Currency that Incentivizes Renewable Energy, has now been published and can be read or downloaded at

Transcending the present political money system–the urgent need and the way to do it.

In case you missed my webinar and would like to see the presentation, here is the recording that was made. The first part is a specially prepared slide show presentation titled, A World Without Money, Interest, and Debt: A Pathway Toward Economic Equity, Social Justice, Freedom, and Peace. The webinar concludes with a short video titled, VITA: A worldwide web of exchange, Locally controlled but globally useful, in which I describe my vision of a new decentralized, peer-to-peer, system of exchange.
The question and answer portion is not include.

A PDF file of the slide show plus some added pertinent slides can be viewed here.
I’ve recently added an edited recording of the discussion that followed my presentation. You can view it at Q&A Discussion.

Upcoming webinar: Transcending the present political money system–the urgent need and the way to do it.

This Wednesday, Nov 24, 2021, I will be presenting one of the most important webinars I’ve ever done. It is being organized by Prof. Lubo Jankovic of the Centre for Future Societies Research at the University of Hertfordshire in the UK.

Here is the description and link.
Transcending the present political money system-the urgent need and the way to do it, by Thomas H. Greco, Jr.

Date and Time: Nov 24, 2021
at 4:00 PM London [11:00 AM New York, 09:00 AM Arizona, 08:00 AM Pacific time]
Join Zoom Meeting

Meeting ID: 968 4443 2493
Passcode: 099266

This presentation describes the fundamental role of the global system of money, banking and finance in generating social injustice, economic inequity, environmental despoliation and violent conflict.  It outlines the collusive arrangement that exists between finance and politics that has created the global central banking regime to centralize power and concentrate wealth in ever fewer hands and explains how the creation of money by banks as interest-bearing debt causes a growth imperative that is destructive to the environment, democratic government, and the social fabric. But more importantly, it describes the positive developments that are emerging to create a new “butterfly economy” and a civilization in which everyone can live a dignified life.

Thomas H. Greco, Jr. is a preeminent scholar, author, educator, and community economist. He is widely regarded as a leading authority on moneyless exchange systems, community currencies, and financial innovation, and is a sought after speaker internationally. He has conducted workshops and lectured in 15 countries on five continents and has been an advisor to currency and reciprocal exchange projects around the world. He has authored numerous articles and books including, The End of Money and the Future of Civilization (

E. C. Riegel and Private Enterprise Money

Announcing,  The Monetary Wisdom of E. C. Riegel: An annotated précis of Private Enterprise Money, with commentary compiled by Thomas H. Greco, Jr.

I have long credited E. C. Riegel as the foremost authority in shaping my understanding of money and the process of reciprocal PEMexchange. His penetrating insights and proposals for a new independent system for the exchange of value have provided a solid foundation for my own work of developing improved exchange mechanisms that I consider to be crucial to the future of civilization.

Riegel’s book, Private Enterprise Money, published in 1944, is perhaps the most complete and concise statement of his insights and proposals. For that reason I have undertaken the task to extract what I consider to be Riegel’s most important insights, interpret for the contemporary reader the passages that seem difficult to understand, and articulate the few points on which I disagree with Riegel. With that said, I urge every serious student of money and exchange to read Riegel’s book, Private Enterprise Money, in its entirety, as well as Riegel’s other works which are available to be freely downloaded from my website,  

Solar Dollars — a community currency based on real value

In August of 2016, I posted a white paper that described in some detail how a private or community currency ought to be issued on the basis of real value, which in this case is the electric energy from renewable sources that a utility company provides to its customers. My fundamental objectives in implementing such a program are:
(1) To incentivize a more rapid shift from fossil fuel energy sources to renewable sources,
(2) To help communities to become more resilient and self-determined, and
(3) To enable the decentralization of economic and political power.

The immediate benefits of this plan are:

  1. It provides the issuing company with an interest-free source of short-term credit,
  2. It provides the community with a sound and reliable supplemental means of payment that can:
    • Augment the supply of debased and often unavailable official money,
    • Circulate throughout the local community connecting the unused capacity of local businesses with the unmet needs of people in the community,
    • Remain within the local economy to encourage local spending and local economic development.

Once this basic concept of “monetizing” the value of real goods and services is understood, it can be applied to any goods or services that are in steady demand and are readily available for sale by a trusted issuer(s).

In July of 2021, I was invited to give a presentation on the Solar Dollar currency at a virtual conference that was sponsored by the Zero Carbon Lab at the University of Hertfordshire (UK). That presentation was recorded and can now be viewed on the Zero Carbon Lab website at or here.

The white paper, Solar Dollars-a private currency with multiple benefits, is still available. You are welcome to quote it with proper attribution, or download and distribute it provided it remains unchanged.

Special Note:
This same basic currency model can be used not only to promote the shift to renewable energy but also to promote other desirable economic shifts. The fact is that the value of any product or service that is in everyday demand can be monetized in the form of a private currency. Providers of organically produced food, for example, could issue Organic Dollars or Bio Dollars by using them to pay their contractors, suppliers, and employees, in just the same way as we described for the issuance of Solar Dollars.

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Upcoming Presentation — Solar Dollars

This presentation was recorded and can now be viewed on the Zero Carbon Lab website at or here.

On Monday July 12, 2021, I will be presenting my proposal for a currency based on, and redeemable for renewable energy. My presentation titled, Solar Dollars: Unblocking Multi-dimensional Mega-crisis with Complementary Currency Obtained from the Sun, will be part of a two day virtual conference titled Pathways to Resilient Zero Carbon Cities organized by Zero Carbon Lab, School of Creative Arts, University of Hertfordshire (UK). My presentation is scheduled for 16:15 – 16:45 GMT (11:15-11:45 EDT; 08:15-08:45 PDT and Arizona time), You can register for the conference via this link – please book early as the number of registrations is limited.

Newsletter May 2021. Upcoming podcast series on “Our Money System,” and other news

In this issue:

  • Upcoming podcast series
  • Conversation with Tim Jenkin, Edgar Cahn, et al
  • Latest post–How, Then, Shall We Live? — What we might learn from the Amish
  • Markets and finances in today’s world
  • U.S. foreign policy, the primary threat to peace
  • Travel plans

Upcoming webinar series

I will be conducting a free three part webinar series for the Henry George School of Social Science. Here is the description and registration link:

Our Money System – What’s Wrong with it and How to Fix it
A critical look at money & credit, their political and economic implications, and innovations that are making conventional money obsolete.

About this event

HGS_WebinarIn this webinar series, renowned monetary reformer Thomas Greco Jr., will present our system of money and banking, how it has evolved, why it is problematic, and where it is trending. The series will also look into past, present, and future exchange and payment alternatives, like Depression-era script, local and private currencies, commercial trade exchanges and LETS systems that apply the “credit clearing” process, and the more recent emergence of crypto-currencies and blockchain ledgers and their potential role. It will include discussion of how these have evolved, their advantages, limitations and future potential and what needs to be done to take them to scale.

The speaker, Thomas H. Greco, Jr., is the author of The End of Money and the Future of Civilization. For more than 40 years Mr. Greco has been studying, writing and lecturing and advising on the subjects of money, exchange, and political economy. His distinctive insights into these subjects and his innovative approaches to a more equitable and sustainable economy have made him a sought after speaker and advisor worldwide. His full bio can be viewed here.


  • WHAT is money?
  • WHY do we need money?
  • WHAT is wrong with our money system?
  • Can we live without money?
  • How can business be conducted without money?
  • What are the economic, social and political implications of monetary policies and systems?
  • What is the likely impact of present day monetary innovations?

May 21 – Session 1 will provide an overview of the present system of money and banking, how it has evolved, how and why it is problematic, and where it is trending. Mr. Greco will talk about the interest-based debt-money system, how it causes the growth imperative and the politicization of finance and exchange, and the political and economic consequences of its continuation. He will outline the fundamental concepts of exchange and finance and the principles upon which sound and sustainable systems are being developed. Participants will be asked to read or listen to some specific materials in preparation of the subsequent sessions.

June 4 – Session 2 will be a more interactive webinar that will provide ample opportunity to discuss whatever questions have been evoked by the previous session and the assignments. These might include topics like inflation, depressions, asset bubbles and busts, the savings and investment functions, and government responses to shocks like the 2008 financial crisis and the more recent pandemic. This will lead into a discussion about possible solutions to the problems that the present system causes, and the role of local currencies and other alternatives for the exchange of value.

June 18 – Session 3 will concentrate upon past, present, and future exchange and payment alternatives, like Depression-era scrip, local and private currencies, commercial trade exchanges and LETS systems that apply the “credit clearing” process, and the more recent emergence of crypto-currencies and blockchain ledgers and their potential role. It will include discussion of how these have evolved, their advantages, limitations and future potential and what needs to be done to take them to scale.
Please note that each session will start at 6 PM Eastern Time (3 PM Pacific and Arizona time), and end at 7:30 PM (4:30 PM).

Register Now!

Conversation with Edgar Cahn, Tim Jenkin, et al

I was recently the featured guest on Taking Back Our Economy, a podcast series hosted by the Community ExchangeEdgar-Cahn-photo-600x599 Alliance. In this episode I discuss principles of exchange, the various kinds of systems that have been tried, and what needs to be done to realize their full potential, with Tim Jenkin, founder of the Community Exchange System, Edgar Cahn, founder of Time Banking, Anitha Beberg, Christine Gray, and Martin Simon.

You can tune in to the discussion on YouTube at

My latest post: How, Then, Shall We Live? — What we might learn from the Amish

While most of us have been caught up in the high-tech, consumerist, debt-ridden rat-race, there are certain groups that have been thriving on low-tech, low-consumption, earth-friendly, cooperative approaches to living. Notable randy-fath-Amish-Cramong these are the Amish communities which are characterized by their strong social bonds and mutual support. In the present chaotic times as we struggle to reinvent civilization there may be something important to be learned from the Amish. Read about it here.

Markets and finances in today’s world

The biggest players in money and markets today are central banks and central governments. Their market interference is massive and largely overrides the effects of other market player’s actions. If you have not already done so, please read my article, Money and Finance Have Now Been Completely Collectivized.

One complicating factor that market analysts and investment advisors universally fail to mention, and probably do not even recognize, is the withdrawal of large segments of the population from the work force, and from the “old civilization.” In my view, a new civilization has been emerging for decades from the bottom upward and that process is now accelerating as people lose faith in the dominant centralized financial, economic, and political systems and structures. The new civilization is being built on relationships of trust that already exist among family members and friendship groups and within local business and political circles. As corruption, malfeasance, and errors in the dominant centralized structures become more egregious and apparent, this process is bound to accelerate further until the old systems become irrelevant. My “Walking Away…” series of articles (Part I, Part II, Part III) articulates in more detail my thoughts about that.

U.S. foreign policy, the primary threat to peace

Two or three years ago in my efforts to gain a deeper understanding of the political dynamics of the Middle East I came across Graham E. Fuller, a Middle-east analyst and former CIA operations officer. Reading his book, Turkey and the Arab Spring, gave me an appreciation for the pivotal role the Turkey plays in the region and in the Muslim world generally. Since then I’ve been following Fuller on his website and on Facebook.

In his recent editorial, US primacy is a self-fulfilling threat generator, Fuller provides an excellent overview of US government foreign policy and the US role in the world. In it, Fuller states:

I have no wish to launch into a litany of American sins, failures, or mistakes by omission, or more often commission, that have by almost any measure been disastrous for so many foreign countries “visited” by U.S. military operations. The list is long and well known — Iraq, Afghanistan, Syria, Libya, Pakistan, Somalia, indirectly in Yemen in most recent times. He then nicely summarizes the essence of US foreign policy, saying, “…it’s hard to get off that enemy list when you actively assert your independence from Washington.”

The editorial is brief and well worth reading. You can find it on Fuller’s website.

Travel Plans

As spring passes and summer begins, we wonder about the possibilities for travel and tourism to return to anything like normal. Will “vaccine passports,” testing, and/or masking be required to travel? If so, what form will those passports take, paper certificates, digital apps, chips embedded under the skin? Will governments impose quarantine requirements for people entering their country, as many have been doing for more than a year? If one does travel abroad, what are the chances of being stuck there and not allowed to leave?

Considering all that, it seems unlikely that I’ll be doing much traveling this year.

Stay alert, keep learning, and seek your inner peace,