Category Archives: Exchange Design

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.

Updates:
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.

Jefferson_EndOfDemocracy2
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
https://herts-ac-uk.zoom.us/j/96844432493?pwd=VXZZN0dSblVxUDJMZXdlNU4zcDR2Zz09

Meeting ID: 968 4443 2493
Passcode: 099266

Abstract
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 (https://beyondmoney.net/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, BeyondMoney.net.  

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 http://zerocarbonlab.com/rzcc-2021/videos/ThomasGreco.html 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 http://zerocarbonlab.com/rzcc-2021/videos/ThomasGreco.html 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

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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.

Topics

  • 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!

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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 https://youtu.be/BtIG9YLySD4.

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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.

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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.

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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.

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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,

Thomas

James Corbett addresses the topic of alternative currencies

In his presentation that was part of The Greater Reset, James Corbett (of the Corbett Report) provided an overview of alternative means of exchange. In it he mentioned community currencies, LETS, trade exchanges, and my book, Money: Understanding and Creating Alternatives to Legal Tender, as well as this website.

You can view his excellent presentation here. Scroll down to find James Corbett: Why We Need a Survival Currency

Who’s Reset will it be?

The oligarchs, plutocrats, and technocrats have a plan for you. It’s been called the “New World Order,” and now, “The Great Reset” which is being promoted by the World Economic Forum. Despite their high sounding rhetoric, you and I will have no role in formulating this plan, rather it is self-elected “global leaders” who will “come together to design a common recovery path and shape the Great Reset.”

It is imperative the people around the world come together now to plan our own future, one that is based on our own common values, needs, and a shared vision of how humans can live in harmony with nature and with each other. One current initiative that intends to facilitate that effort is “The Greater Reset” which is upcoming starting Monday, January 25th and continuing through Friday, January 29th.

Our World. Our Way.

The Greater Reset Activation: January 25th – 29th, 2021

“The Greater Reset is the world’s collective response to the World Economic Forum’s Initiative: The Great Reset.

“We offer an alternative to the WEF’s top-down, centralized, authoritarian vision. Our desire is to help all people find community and liberty by providing practical steps and knowledge for co-creating a world that respects individual liberty, bodily autonomy, and choice. We invite you to join us for 5 days of discussion about the diverse opportunities available for those who seek to live in harmony with humanity and the planet, while respecting our innate freedom.”

You can get program details, and sign up for “The Greater Reset” at https://thegreaterreset.org/

Sovereign or Slave? How perversion of the money power has decided the issue—until now!

As I indicated in my previous post, No democracy when government has the money power, E. C. Riegel, more than 75 years ago, explained, better than anyone else I’ve encountered, the nature of money, its fundamental function, and the history and consequences of its politicization, and outlined a way of transcending the perverse and dysfunctional system that we have lived under for far too long. His work is perhaps best summarized in his book, Private Enterprise Money, from which I quoted. I continue here with further quotes that elucidate the key points of sovereignty, money and government.

Riegel’s solution involved the organization of credit clearing circles that he called “Valun Exchanges” that would be joined together in networks for exchanging goods and services. He argues, as I do, that it is the individual person that is sovereign, not any king, emperor or government, and that the power to issue money, therefore, also resides in the individual. When we realize that money is really only short-term credit, it becomes clear that it is in our power as individuals to give it or withhold it as we go about our daily business of exchanging the value (goods and services) we produce and consume.

In Chapter 9 of his book, Riegel proposes that the Valun Exchanges be organized on a “state-wise” basis. He observes that:  “The sovereign power of the citizen rises to the state government; and from there it is delegated upward to the federal government, and downward to subdivisions. We are, first of all, citizens of our respective states; and this implies citizenship also in local and national governments.” p. 139

He then recounts the history of the union of the American colonies after their separation from British rule and argues that: “The advantage in abolishing this multiplicity of monies [of the various colonies] was obvious, but the implications involved in surrendering the money issuing power to the federal government was not comprehended. The gain to all in uniformity of money unit was visualized; the loss in sovereignty thereby suffered, was not.”  p. 140

From this point onward, I will let Riegel’s words speak for themselves. All page number refer to the printed edition.

“We now realize that the money power of the private citizen is in fact his sovereignty; and that in yielding it he yields his sovereignty. Thus the transferring of the money power from the states to the federal government was the transferring of the citizens’ sovereignty to the national government, and the reducing of the state to the status of a subordinate. p. 140

“The political money system implies that the citizen will abate his natural money issuing power, and make the criterion of his exchanges and the regulation of the money system entirely dependent upon the government that he recognizes as the money power. By making the federal government the sole money issuing power, the individual states transferred the fealty of their citizens to the national government, because they became thereby dependent upon its money power. The citizen having thus had his fealty transferred to the national  government—it was taken from the state governments—and the latter are now dismayed by the increase of federal power and the commensurate subordination of state power.”

“What has actually transpired is a reversal of the intent of the federal plan whereby the national government was to be dependent upon the states for grants of power. The national government, through its money power, is now supreme and in reality holds the state governments in subjection to it. Federal fiscal policy now determines the bounds of state sovereignty. It took many years to reveal this structural weakness because, in the earlier days of the federation, the economy depended more upon the private issuance of money through the banking system, and thus federal fiscal power was dormant. The policy of the federal government up to 1932 was to leave to the banks the function of supplying money. During the Jackson administration, with the abolishment of the United States Bank, government participation in money supply reached its lowest point—with the government confining itself to the mere minting of gold and silver coins at a seigniorage charge to any one who brought the metal to the mint.” pp. 140-141.

Money Power Is Sovereignty
The states, to recapture their independence and sovereignty, must look to their citizens who, in turn, must assert their sovereignty by exercising their inherent money power. It was right that the states should have surrendered their money power; but they should have surrendered it to their citizens, and not to another government. At the time the federation was formed the nature of the money power was not understood; and it was not realized that it is the essence of sovereignty. But we know now that it is and if we wish to preserve the federation and also home rule, we must now deal intelligently with the money power.

While the states have surrendered their money power, their citizens have not. The citizens have merely failed to exercise their natural powers against which there is no prohibition in either state or federal constitutions. This is not a political issue – requiring legislation or repeal of legislation, or constitutional amendments, or any official action – but it is, nevertheless, a profound political movement; because, as the people assert their money power, their natural intimacy with their state and local governments asserts itself – since there is no other power that can step between. Today, the federal government stands between the citizen and local government, and thus alienates him.

If our states are to develop their individuality and counter the stereotyping influence of a monetary dictatorship, if local government and private enterprise are to work out their natural virtues, if democracy is to prevail in business and government, and if our federal republican system is to survive, we must meet our problems by dealing with their fundamental causes – the political money system.”

To accomplish these broad and vital aims, the Governor or some other public official should take the leadership of this cause within his state. In the absence of this, leadership must be taken by private citizens. It offers an incomparable opportunity for public service.”

While the money issuing power is inherent in every man, it can be realized only by a pact among many. Therefore, the individual is helpless, and organized action is necessary. The method of organizing a Valun Exchange should be no different from organizing any other cooperative movement.” pp. 143-144.

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Move your money, preserve your capital, improve your community and make housing more affordable

Poverty and homelessness have been persistent problems in virtually every community and are becoming worse, and disparities in incomes and wealth have long been increasing. Meanwhile the stock markets are booming while returns of savings accounts have been driven below zero in real terms. All of this has been happening while human productivity is greater than at any time in human history. What’s wrong with this picture?

Clearly, there must be some serious defects in the systems by which our collective production is distributed and used. This is the realm of money, banking and finance which controls the functions of value exchange, saving, and investment. As I’ve repeatedly argued, it is not just a matter of how these systems are managed (policy), but the way they’ve been designed, i.e., their very structure. Whether by intention or by accident, these system are designed to do precisely what they are doing. They enrich and empower the few at the expense of impoverishing and dis-empowering the many.

While there may be little possibility of reforming these systems, they can be transcended. New systems and structures can be designed and deployed that better serve the necessary functions. My work has been focused mainly, but not entirely, on the exchange of value function, which is the fundamental purpose of money. Over the past forty years I’ve written and lectured extensively about private and community currencies and mutual credit clearing as ways of transcending the political money regime. See, for example, How to Bring Liquidity Into an Economy, Free of Interest, Inflation, and Boom and Bust Cycles.

Others have been active in addressing the functions of saving, and investment. Notable in this regard are Ellen Brown and her associates at the Public Banking Institute, John Katovich and associates at Cutting Edge Capital, attorney Jenny Kassan, John Fullerton at the Capital Institute, and community economist Michael Shuman.

Michael, in his recent newsletter, Gimme Shelter (With Local Investment), reports on some exciting developments, one of which is “…the SEC quietly increased the ceiling on a crowdfunding raise from $1.07 million to $5 million—effectively enabling significantly more housing projects to be funded by grassroots investors sick of Wall Street.” Another is the emergence of community investment trusts (CITs), which “allow members of the community to invest in neighborhood projects. Whereas most CLTs [Community Land Trusts] are nonprofit, CITs can be for-profit and issue equity.”

“Still another approach is to buy pieces of equity in homes to make home ownership more affordable. That’s the strategy of a new company called Landed. It strikes a deal with new homeowners to pick up half or more of the down payment.”

For more details on all of that, read Michael’s entire article here.
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