Tag Archives: mutual credit clearing

Thomas Greco’s Presentation at The Institute of Noetic Sciences: The Evolution of Money and its Potential to Improve Humanity

On October 30, 2014, I gave a presentation, titled, The Evolution of Money and its Potential to Improve Humanity, at the  Institute of Noetic Sciences (IONS) in Petaluma, California.

I was greatly encouraged by the high caliber of those who attended and the quality and intensity of the discussion that followed.

The proceedings were video recorded by organizer and master networker, Sergio Lub, and can be viewed at this Vimeo site.

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Milestones in Moneyless Exchange

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I often compare the evolution of exchange alternatives to the development of aviation. Just as many early attempts to fly were clumsy and poorly informed by good science, so too have been many early attempts to create private and community currencies. But much has been learned over the past three decades, and conditions are ripe for major advances in our ability to rise above antiquated and dysfunctional means of  payment. My role is to guide the design and implementation of community based currencies and trade exchanges that enable general prosperity and a stable and sustainable economy.

During my upcoming tour of Europe I will be speaking about the power of community currencies and mutual credit, and consulting with communities on doing good things where they are.

With still two weeks to go, our Crowdfunding campaign is now more than halfway toward our goal. Thanks for your support, and please help spread the word. Our campaign site is http://igg.me/at/tomstour/x/31801.

How does mutual credit clearing enable moneyless exchange?

Here’s and excellent, short and sweet description of how mutual credit clearing works to provide interest-free liquidity. From Bartercard New Zealand…

Iceland takes a more rational approach to the finacial crisis

A Bloomberg report of February 28, 2012 describes the steps that Iceland has been taking to deal with their banking crisis. A basic feature of their policy has been debt relief  for homeowners. Here’s are some excerpts:

“Once it became clear back in October 2008 that the island’s banks were beyond saving, the government stepped in, ring-fenced the domestic accounts, and left international creditors in the lurch. The central bank imposed capital controls to halt the ensuing sell-off of the krona and new state-controlled banks were created from the remnants of the lenders that failed.

Legal Aftermath

Iceland’s special prosecutor has said it may indict as many as 90 people, while more than 200, including the former chief executives at the three biggest banks, face criminal charges.

Larus Welding, the former CEO of Glitnir Bank hf, once Iceland’s second biggest, was indicted in December for granting illegal loans and is now waiting to stand trial. The former CEO of Landsbanki Islands hf, Sigurjon Arnason, has endured stints of solitary confinement as his criminal investigation continues.

That compares with the U.S., where no top bank executives have faced criminal prosecution for their roles in the subprime mortgage meltdown. The Securities and Exchange Commission said last year it had sanctioned 39 senior officers for conduct related to the housing market meltdown.”

You can read the entire report at Icelandic Anger Brings Debt Forgiveness in Best Recovery Story

One wonders, why the same approach was not taken in the U.S.? I would venture to say that it all boils down to political power–who controls the government? Iceland is a small country, which probably accounts for the ability of the people to influence the government to an extent that seems impossible in a country like the U.S., where, instead of relieving the people, the government chose to relieve (reward) the banks that created the problem in the first place. It did that by shifting the excessive and unserviceable debts from the banks’ balance sheets to that of the government.

That, in turn, required a huge expansion in the national debt, but that will not and cannot solve the problem. It will only make matters worse because the world is losing its appetite for U.S. government bonds. When the Federal Reserve steps in as “buyer of last resort” we get a further debasement of the dollar and ultimately price inflation, which causes the savings of the middle-class to be wiped out.

The debt-money system has inherent in it a growth imperative. Banks create money on the basis of interest-bearing loans. The interest burden requires the creation of additional debts so that the interest can be paid. That cannot continue forever; debts must ultimately be forgiven.

But even that, by itself, is not sufficient to prevent a recurrence of the bubble-and-bust cycle. Money must be created interest-free. The best way to achieve that is by creating competing means of exchange like mutual credit clearing and private cooperative currencies.–t.h.g.