Please take our starter poll and discuss the pros and cons of our current monetary and economic system here. How well do you understand our system of issuing and controlling our money? Please do not hesitate to ask questions on things that are unclear to you, or help clarify them for others if you understand the issues.

Feel free to discuss your vote on the polls and talk about your reasons for responding as you did. We hope to create a friendly and nonthreatening environment here.

What are the problem with out money system? Why should we be talking about changing or improving the way money is created or controlled? How is our money contributing to the current economic crisis? How do we arrive at a stable and honest monetary system? Is such a system even possible? What would such a system look like? How would it work? Who would it benefit? Who is benefiting now? What kinds of money systems have worked best in the past? Have alternative systems been used?

Can we agree on the major elements of a better money system? Are there differences between wealth, credit and money? Is interest necessary? If so when and how much? To whom should it be paid?

I could go on for a long time, but this should be food for thought and initial discussion. We welcome your posts and your ideas.

No - I do not 'think' there are problems with our monetary systems. I know there are problems - that much is obvious!

The real question is: 'Can the problems in the existing monetary system be reformed by modification?' or; 'Must a new monetary system be built from scratch?'

I would suggest that any system containing an exponential positive feedback term (interest) - will become exponentially more difficult to control. Systems containing positive feedback can be controlled for limited periods of time - dependent upon the level of feedback.#

At typical long term interest rates of 2 to 5% - the 'business cycle' typically takes about 60 years - at which point outstanding debt can no longer be serviced.

A monetary system with negative feedback can, however, remain stable indefinitely. This negative feedback would take the form of a citizens income financed from a demurrage charged upon financial wealth, and a matching land tax charged upon property.

The required changes are fairly radical: a change from interest to demurrage, and a change from transaction taxes to land taxes.

Can this change be made by gradual modification? I doubt - rather, new forms of money should be issued alongside the old - and the old allowed to die in peace.

# Exponential growth of regulation, such as Federal Income Tax Law - is a symptom of this increasing complexity. In the end, such explosion of regulation is futile.

Metabele, that is another good question, and would probably make a good new topic question or poll. If you have time, you are welcome to start either one. My time is rather constrained this next week or so, hosting visitors from Newfoundland - my wife's mother and several other families. Got four generations gather here for dinners, etc. So be my guest and post away.



Depending on how you might amplify on that I would probably agree, particularly the first sentence. The second might be more conditional, depending on who is issuing, and how the "feedback" or interest is used, or by whom. Good points though.



Some very interesting comments. I'd like to get some expansion on these concepts, especially that of demurrage in place of interest. From what I've studied of Henry George, I think that is the direction of our future. And I agree that all you mention here would be radical, and would be difficult or impossible to implement, absent a catastrophic systemic collapse, which seems to be inevitable absent radical changes anyhow. I think a large part of our mission is to prepare alternative money systems to be ready to go if the global economy (and money) fails.



Agreed. The only real caveat being that I doubt it will simply die in peace. It will more likely go screaming into that good night, and doing all the damage it can as it dies.

# Exponential growth of regulation, such as Federal Income Tax Law - is a symptom of this increasing complexity. In the end, such explosion of regulation is futile.[/quote]

I certainly agree on that one. We need serious restructuring of our laws, especially our unfathomable tax laws with their endless loopholes for the wealthy - those who should be paying the most.