Utah Legalizes Gold, Silver Coins As Currency SALT LAKE CITY -- Utah legislators want to see the dollar regain its former glory, back to the days when one could literally bank on it being "as good as gold." To make that point, they've turned it around, and made gold as good as cash. Utah became the first state in the country this month to legalize gold and silver coins as currency. The law also will exempt the sale of the coins from state capital gains taxes. Craig Franco hopes to cash in on it with his Utah Gold and Silver Depository, and he thinks others will soon follow. The idea is simple: Store your gold and silver coins in a vault, and Franco issues a debit-like card to make purchases backed by your holdings. He plans to open for business June 1, likely the first of its kind in the country. "Because we're dealing with something so forward thinking, I expect a wait-and-see attitude," Franco said. The idea was spawned by Republican state Rep. "We're too far down the road to go back to the gold standard," Galvez said.
Stephen Zarlenga’s speech at the U.S. Treasury (Dec. 4, 2003) | AMI (American Monetary Institute) I thank the US Treasury for inviting me. It’s a great honor and opportunity to bring the research results of the American Monetary Institute to your attention, which are relevant to the developing fiscal crises faced by several states. Part of our 501(c)3 mission statement is to do just that. The fiscal problem has its roots in the structure and control of our monetary system, and I intend to show how that structure has ultimately been based on a false or inadequate concept of the nature of money. THE PROBLEM IS THAT MONEY HAS NOT BEEN ACCURATELY DEFINEDPerhaps the chief failure of economics is its inability, from Adam Smith to the present, to define or discover a concept of money consistent with logic and history. It’s still being argued whether the nature of money is a concrete power embodied in a commodity like gold, or whether it’s a credit/debit issued by private banks. Today we’ll examine some historical cases where important principles clearly stand out.
The Euro is a Big Success - No Kidding The idea that the euro has "failed" is dangerously naive. The euro is doing exactly what its progenitor – and the wealthy 1%-ers who adopted it – predicted and planned for it to do. That progenitor is former University of Chicago economist Robert Mundell. Mundell, then, was more concerned with his bathroom arrangements. “They won't even let me have a toilet. But Mundell, a can-do Canadian-American, intended to do something about it: come up with a weapon that would blow away government rules and labor regulations. The euro would really do its work when crises hit, Mundell explained. “It puts monetary policy out of the reach of politicians,” he said. He cited labor laws, environmental regulations and, of course, taxes. As another Nobelist, Paul Krugman, notes, the creation of the eurozone violated the basic economic rule known as "optimum currency area". That doesn't bother Mundell. Mundell explained to me that, in fact, the euro is of a piece with Reaganomics:
Chapter 5: Introduction to Energy Backed Money "HENRY FORD's conception of displacing gold money by a unit of energy stumbles and falls headlong on the threshold of its proposal." - The New York Times, December 6, 1921 As evidenced by the 1921 quote above, Henry Ford proposed a form of energy backed money almost a century ago. Thomas Edison was also interested in issues of monetary policy and "the energy dollar". It is inspiring that these two highly gifted individuals who both brought fourth tremendous economic progress sensed potential with energy backed money. Of course energy backed money was a much tougher sell back then for a number of reasons. Brief Overview of US Energy Statistics The energy statistics for this section are all taken from the 2008 Annual Energy Review. Energy is a large component of the United States GDP. Petroleum is used to produce things like gasoline and diesel fuel and is consumed primarily by the transportation sector. The Ideal Energy Backed Money Representation
Energy-Backed Currency | Jeff Eisen, Ph.D. The problem with money The problem with money is that it either has to have intrinsic value in itself, like gold, or it has to be backed by or exchangeable for something that has intrinsic value. The abandonment of this principle, and the worldwide move to fiat currency, money freely printed and backed only by the soundness of the country or bank that issued it, has been brought the world’s economies to the verge of collapse in short order. The world needs to return to the sound money policy of backed currencies, currencies that either have intrinsic value in themselves or are readily exchangeable for something that has intrinsic value. In addition, this move has to be worldwide. For thousands of years money has been literally either gold or silver coinage. Fiat currency, because it is only back by the financial stability of the issuing country, has numerous advantages and disadvantages. We need to go back to backed money, but what to back it with? Dr. Like this: Like Loading...
Eddie's Blog on Energy & Physics: How to Implement an Electricity Backed Currency The Wall Street Journal has had a lot of editorials recently on gold or silver backed currencies, so I thought that I'd revisit the topic of Electricity backed currency from a prior post (which happens to be the most viewed of the posts I've written.) So, it must be a hot topic (unlike a post at roughly the same time on the Source of exergy in the early universe.) As I mentioned in the prior post, I think that we should ground our currency with something that has value. The only thing that I can think of that has true, measurable value is electricity. This method is very similar to the process we have today, except for the fact that we would be forcing the Federal Reserve to maintain a 0% inflation rate on the average price of electricity. This method has some intrinsic value because you know that your money can't deflate and that your money can be converted to something of value. This topic continues as a Question & Answer in next post.
The Crime of Fighting Poverty: Local Currency's Success in Kenya Ends in Forgery Charges (Photo: via Shutterstock)Former Peace Corps volunteer Will Ruddick and several residents of Bangladesh, Kenya, face a potential seven years in prison after developing a cost-effective way to alleviate poverty in Africa’s poorest slums. Their solution: a complementary currency issued and backed by the local community. The Central Bank of Kenya has now initiated charges of forgery. Complementary currencies can help eradicate poverty. Proving that may be difficult in complex economies, due to the high number of factors influencing outcomes. But in an African slum with little of the national currency available, supplying residents with an alternative currency has a positive effect that is obvious, immediate and incontrovertible. Truthout needs your support to publish grassroots journalism and share new visions for a just and sustainable future. The project was launched on May 11, 2013. Despite these perilous circumstances, Will remains optimistic. Jamie Brown contributed to this article.
Where Does Money Come From? The truth is out: money is just an IOU, and the banks are rolling in it | David Graeber Back in the 1930s, Henry Ford is supposed to have remarked that it was a good thing that most Americans didn't know how banking really works, because if they did, "there'd be a revolution before tomorrow morning". Last week, something remarkable happened. The Bank of England let the cat out of the bag. In a paper called "Money Creation in the Modern Economy", co-authored by three economists from the Bank's Monetary Analysis Directorate, they stated outright that most common assumptions of how banking works are simply wrong, and that the kind of populist, heterodox positions more ordinarily associated with groups such as Occupy Wall Street are correct. In doing so, they have effectively thrown the entire theoretical basis for austerity out of the window. To get a sense of how radical the Bank's new position is, consider the conventional view, which continues to be the basis of all respectable debate on public policy. The central bank can print as much money as it wishes.