John Zube

Towards a comprehensive encyclopedia on free banking (A - D)





A - D

E - H

I - O

P - S

T - Z




ABILITY TO PAY: As long as the monetary cash demand for wanted goods, services and labor is confined to the monopoly monies issued by governments and as long as clearing is not quite free and developed, government monopoly money only rarely and temporarily, if at all, be sufficient to easily and fast sell many to most of the wanted goods, services and labour. Nor are exchanges facilitated when monopoly monies are supplied either in excess of the total volumes of goods, services and labour offered for sale or below the circulation volume required to turn over all of them. Neither does it help but, instead, much wrong and harm is done when the value standard of governments is imposed and manipulated, usually inflated but sometimes also revalued. Only free choice of value standards will tend to achieve the use and spread of sound enough value standards for most transactions, which is important e.g. for long term credit contracts, the building and insurance industry, especially old age security. – J.Z., 28.3.10, 24.9.10. - READINESS TO SUPPLY WANTED GOODS, LABOUR & SERVICES COMPARED WITH THE MONEY SUPPLY & CLEARING FACILITIES, A SUFFICIENT SUPPLY OF EXCHANGE MEDIA & OF SOUND VALUE STANDARDS, UNEMPLOYMENT, INFLATION, DEFLATION, MONETARY CRISES.

ABILITY TO PAY: Enormous: The difference between a little money and no money. – “Hello, Dolly!” – The difference between the monies of monetary freedom and that of monetary despotism is also enormous. – The former is competitively supplied, the latter monopolistically and coercively imposed. – This is the only kind that is merely fiat money, the territorial monies of monetary despotism. All others are optional competitive, market rated and refusable. - J.Z., 25.8.10, 2.8.11. - LIQUIDITY

ABILITY TO PAY: If you owe the bank $ 100, that's your problem. If you owe the bank $ 100 million, that's the bank's problem. - J. Paul Getty, 1892-1976, American businessman. - MONETARY FREEDOM, DEBTS, BANKS, JOKES

ACCEPTANCE FOUNDATION: Acceptance of a money can either be by force of law or by the force of private contract obligations. An example of the former is tax foundation money, which amounts to tax anticipation certificates that can be issued to the amounts of due tax debts or soon due tax debts to keep their value at par in general circulation with a sound value standard, even if no other cover, backing, security or redemption for them exists than their redemption in tax payment receipts. Under the rule of private contracts monies can be issued by providers of goods and services, obliging themselves to accept their notes at their nominal value in payment for all their goods or services and for all debts that are due to them. Even without possessing any legally imposed monopoly in a region and without legal tender power, quite optional, thus refusable and discountable, because they are subject to free market rating and voluntary acceptance in general circulation, they can be maintained at par with their nominal value, in their circulation area, until they have streamed back to their issuers, as ticket monies or clearing certificates. Without being granted legal tender power both kinds cannot cause an inflation. But they can be over-issued, if they are carelessly accepted, assuming them to be sound. However, under sound value reckoning being continued, they would then only become depreciated themselves, while all prices etc. for goods and services and all debts would continue to be denominated in sound value standards would remain the same. Only the foolish acceptors of over-issued and optional notes would suffer a loss, equal to their discount when they pass them on in general circulation. Towards the over-issuers they should retain their full nominal value though, in a compulsory purchase, at market prices, for all their remaining personal property, once their goods and service cover is exhausted. If that would still not cover their debts to the note holders, then the note holders should get corresponding claims against them, including interest and collection charges, for all the future earnings and properties of the over-issuers. They should not be protected by bankruptcy laws from their moral and economic obligation to pay any debts that they incurred in this way, no matter how innocent or ignorant they would pretend to be. I hold that it would also be correct to hold their marriage partners and their children responsible for such debts - when such a debtor had registered some of his property under their names or had made large gifts to them, up to the value of such properties and gifts. Here would be one of the few cases where a degree of collective responsibility would be justified. – J.Z., 8.4.10, 22.9.10. - READINESS TO ACCEPT FOUNDATION, TAX FOUNDATION, SHOP FOUNDATION, CLEARING FOUNDATION, SOUND DEBT FOUNDATION

ACCEPTANCE VS. REDEMPTION FOUNDATION: When paper money is not redeemable (by the issuer in gold) then it will suffice, in order to preserve the parity of the paper money with gold, to arrange for the acceptance of the paper money like gold money - by institutions which sell goods in daily and general demand. (Such institutions are e.g. the taxation department - when it "sells" tax receipts, the railway, the P.O., and shops which owe something to the bank issuing that paper. Their indebtedness may arise out of the discounting of sound commercial bills and the corresponding contractual obligation to accept the notes of the bank like gold money. Naturally, in all such cases, the bank must concede its debtors the right to pay back all their bank debts with that paper money as soon as they receive it, at par, regardless of the exchange rate of the paper money.) - Ulrich von Beckerath, 25.1.52.

ADDRESSES OF MONETARY FREEDOM SEEKERS, INDIVIDUALS & ORGANIZATIONS: I am still trying to build up such a list and welcome any help for this project. - J.Z., 28.5.11. - An honours list of all the no longer living pioneers of this freedom might also be worth compiling. It might also lead to the discovery of more of their remaining relevant texts. - J.Z., 29.5.11.

ADVANTAGES OF MONETARY FREEDOM: Advocates of monetary freedom, like myself, do claim that the competitive supply of exchange media would end any currency or cash famine, and could do so quite rapidly. If not effectively repressed, it would drive unsound exchange media and value standards, like most of the government paper money and its associated paper standard, out of circulation. - Moreover, the free choice of value standards would lead to a wide acceptance of the best one (or best ones, most widely - J. Z., 14.9.02) - most likely a gold weight unit for account that is based on a free gold market, free private coinage, and gold redemption almost completely transferred to the free gold market and to gold-weight-unit pricing of goods and services, with private and optional exchange media being kept at par with their nominal gold weight value or close enough, in general local circulation and strictly at par when returned to the issuer in any payment. It would also lead to the rating of all exchange media against this standard and would thus prevent inflation, even when some exchange media would still and temporarily suffer a small discount. - Over-issues would then be to the obvious and rapid disadvantage of the issuer and not any longer, as at present, to his advantage. - With this monetary freedom, all the illiquid capital of a short term nature, especially working power and consumer goods and services, soon to be used or consumed, could be fully mobilised in monetary form and thus much easier exchanged and with less transaction costs. That is what the money of monetary freedom can do, has done wherever, whenever and to the extent that it was allowed to and will do also in the future, with or without the use of computers and the Internet. It should be the equivalent of labour, goods and services ready for sale, especially of consumer goods and services in daily demand and labour for their production and should facilitate their exchange. - The money types arising under monetary freedom would be very closely tied to this labour, service and goods basis, could not exceed it, i.e. could not inflate the money circulation and thereby the prices beyond this cover. One of the main safeguards would be the right of everyone to refuse to accept suspicious means of payment - like you would refuse my cheques or IOUs - knowing my financial situation. Full publicity for private issues and free and rapid clearing for all such tokens which went astray, would be essential features of the system. No fraud or coercion would be practised any longer in this sphere. - The most suitable issuers would be associations of retailers of consumer goods and services that would use the variety of goods and services they offer between them as a redemption fund for their local currency. These stocks and this service potential form anyhow and in all cases the short term backing of any currency, even of a gold coin currency. Fully mobilised, this capital could provide the sound exchange medium and the additional sales required to employ all the unemployed. In a city like Sydney, thousands of millions could thus be mobilised almost instantly for turn-over and wage payment credits, at all stable gold prices. - So far the retailers have not bothered to explore and state their issue potential and to demand that they be freed to utilise it, to their own advantage, that of the unemployed and of the rest of the economy. - J. Z., 1985 & 21.5.97. - To that extent they are not retailers in the same way as employers are not employers as long as unemployment exists. - J. Z., 14.9.02.

ADVERTISING COSTS WILL BE REDUCED: The rapid and automatic reflux of the private and competing currencies to the issuers, to be redeemed in their goods and services, seeing that they have no other value and only a limited circulation period, turns them also into advertisement leaflets and reduces the need for advertising the goods and services, thus making extra competitive price reductions likely. There will also be less need for advertising than under monetary despotism where free competition is confined to a struggle for scarce and exclusive forced currency. - J. Z., 3/97.

AGGRESSION & MONETARY DESPOTISM: The Hitler Regime would not have risen without the preceding great inflation and great deflation, nor would WW II have happened without it. Nevertheless, monetary despotism is still practised world-wide and with the usual disastrous consequences. - J.Z., 3.8.11. - See: WAR, PEACE

AGRICULTURAL PROGRAMS: 4. An agricultural price-support program which asks the consumer to buy with his tax dollars what he does not want, cannot use, and will never eat. - 5. An agricultural export subsidy program which asks the consumer to pay the farmer to sell his product to some foreign buyer at a price lower than that at which the consumer himself can get it. - Barry Goldwater, The Coming Break-Point, 1976, p.105.

AIRLINE MONEY: Air transport, at least in some countries, and internationally, is to a large extent replacing shipping, railway and road transport. Thus it could, like other transport facilities, issue its own competing currencies, mobilising more of its so far unused capacity, while helping to provide sound supplementary currencies. - Air lines are considered as rich and powerful but, under monetary despotism they are still struggling and many have failed, if not government subsidised or granted privileges. Nevertheless, so far and as far as I know, no struggling airline has seriously considered becoming a note- or service certificate issuer and used its influence upon government legislators to permit such self-help actions. - J. Z., 22.4.97, 7.9.02. - Compare Dr. Walter Zander's brochure on Railway Money, which is on

ALAN'S Money Blog: BITCOINS: Bitcoin: An Innovative Alternative Digital Currency | Alan's Money ... - - Cached - 5 May 2011 – Bitcoins are instead free-market money because PEOPLE choose to value them and to make use of them as a medium of exchange.

ALLBUSINESS.COM, Toward free-market money | Banking & Finance > Banking & Finance ... - - Cached - 1 Oct 2001 – Despite the overwhelming evidence that markets perform best when left alone by the government, it is still virtually taken for granted that ...

AMERICAN OPINION, June 1983, contains an article of free banking interest, critical of Social Credit.

ANONYMOUS MONEY: If I had a choice, I would not readily trust and accept any money of which the issuers or acceptors remain anonymous or remote (like money of a central bank) and which relies upon compulsory acceptance and compulsory value, in combination with a monopoly for its issue. Such monies deserve, instead, extreme distrust and refusal to accept them whenever possible and other and better payment arrangements can be achieved. Central banks do not provide the goods and services consumers need. So why should they be entitled to issue claims to them? Any electronic currency has purchasing power towards those of the local suppliers who do accept them in payment or, for supplies from distant places, only to the extent that the additional transport costs and delays are considered to be acceptable. But for the required supplies from local suppliers it would be much more sensible to accept a local currency issued by them. For these neither a central bank currency nor an electronic world currency is required. The currency issues of distant issuers, which only they and their distant debtors have to accept, both of them unknown to me, have some value to me only if I can exchange them, at an acceptable rate, at a local money exchange bureau. They are not ready cash for me. The real backers of any sound local currency tokens are the local providers of goods and services, who have issued these tokens. Their readiness to accept them would also be sufficiently publicized. Acceptance in distant localities, by suppliers unknown to me, would not be good enough for me for most purchases. What value have "tickets" to performances for me when issuers, times of performances, their kinds and their locations are not known to me or too far away from me? Who in the world or in a country can rightly issue liquid claims to all the goods and services of a country or the world? The very concept is absurd. What can I know about the soundness of the issues of the central bank of a country or of the issues of a world bank or European Bank issuing notes? Historical experience rather teaches their unsoundness, at least in the long run. But I can easily become familiar with the soundness of the notes of a local shopping centre. - J.Z., 17.6.01, 26.8.02. - CENTRAL BANK MONEY, PUBLICITY ON ISSUERS & THEIR READINESS TO ACCEPT FOUNDATION, LOCAL MONEY VS. CENTRALIZED OR WORLD MONEY, FIAT MONEY, FORCED CURRENCY, EXCLUSIVE CURRENCIES, MONETARY DESPOTISM, PUBLICITY

APHORISMS ON THE MONEY PROBLEM, by Ulrich von Beckerath, 1932, in  BANKWISSENSCHAFT, also in PEACE PLANS 587/588: - The question whether one could utilise non-interest bearing, long-term loan certificates and mortgage bonds in small denominations, e.g. "Wagemann Money", "Feder Money", etc., as a means of exchange, could perhaps be put into the following formula: MONEY IS A MEANS OF TRANSPORT. It serves to overcome spatial distances. With money one exchanges values that do already exist in the present. The exchange of harvested grain for clothing, household goods and hay forks is done through MONEY. - MONEY is necessarily interest-free. Both justifications for interest, namely a) difference between future and present services and b) a just share for the creditor in the production of the debtor, do not apply to MONEY. - The notes issued by a note-issuing bank or clearing bank are, by their very nature, clearing certificates (settlement scrip). As such they should not remain in circulation as long as possible but, instead, disappear from it as soon as possible. - To oblige any issuing centre (Zettelbank, note-issuing bank) to exchange its clearing certificates at any time for metal, is not only superfluous but harmful and contradicts the nature of this paper-money as a clearing certificate (or settlement scrip). - The interest rates charged by a note-issuing clearing centre are not interest but fees. Insofar, a properly conducted issuing centre operates INTEREST-FREE. Only when any customer of the note-issuing centre delays the clearing (settlement), does the bank charge INTEREST FOR LATE PAYMENT. This interest is something quite different from clearing, although both are CALLED interest and are ACCOUNTED as interest. (It is more in the nature of a contract fine. J. Z.) - Credit instruments that are FORCED INTO CIRCULATION, like e.g. interest-free mortgage bonds in small denominations, must lastly DESTROY credit. They amount to putting warehouses on wheels and wanting to drive in them. That is POSSIBLE but the goods storage business is thereby ruined - although it appears, at first, as if one had solved two problems with one stroke. It reminds of the famous rifles that were to be at the same time useful as umbrellas, telescopes, lances and tobacco pipes. But they were somewhat IMPRACTICAL. (Lombard loan certificates do often represent present goods, in large quantities, that are kept out of the present market in the expectation of future price rises. If such certificates are monetised then, obviously, the present purchasing power is increased but the present goods offered on the market are not correspondingly increased. - J.Z.) - Inflation is impossible without forcefully equating future services with present ones. Many do not realize this as yet. - Interest bridges differences in time. It makes possible the just exchange of FUTURE services with present ones. Between the present and the future neither TRANSPORT takes place nor CLEARING. Consequently, to bridge the present and the future is not a task for a CLEARING INSTITUTE like a note issuing bank (Zettelbank). - Indeed, a credit instrument with a properly certified interest claim, does have a value in the present and can thus be exchanged for other, present goods. Such a credit instrument (mortgage bond, annuity certificate) is even the natural means of payment for goods that exist in the present but are not PRODUCED in the present, e.g., for REAL ESTATE. For this reason, mortgages are often used as means of payment in REAL ESTATE PURCHASES. But goods PRODUCED in the present do require scrip as means of payment (notes or clearing cheques), if the producer wants to consume the equivalence in the present. If he does not want this but wants to consume only in the future, then the proper means of payment is, again, the credit instrument, e.g. the standardised mortgage bond. - Feder wants to create a means of circulation that at the same time bridges differences in SPACE and in TIME. That can NOT be done. (A sound commercial bill does it, to some extent, in a limited circulation sphere and only for a short period. Moreover, the bill debtor has immediately a corresponding quantity of goods for sale, payable in banknotes, with which the real bill had been discounted. - J.Z.) A railway has to overcome e.g. the distance between Berlin and Hamburg as fast as possible, if it is a GOOD railway. But if, at the same time, it is to act as a STORAGE facility, too, then it can no longer serve as a means of TRANSPORT.

APHTHONIOS' SCHEME: Various ways of filling it with monetary freedom proposals. It is a simple scheme of a few questions which every reform proposal must clearly answer in order to provide at least minimum information about it. I filled in one or several such forms for panarchies and panarchism, in but have not got around to do the same for monetary freedom ideas. I would welcome your attempts of this kind. - J.Z., 3.8.11.

ARBITRATION SYSTEM FOR WAGE DETERMINATION: National wage case decisions raising the general wage level can act inflationary. - Popular opinion. - You can try to demand money, to steal it or rob it, try to order people like employers to pay more, or try to extract more money from consumers via increased prices but what you will in effect achieve is no more money than people are able or willing to supply. An employer has always the option to dismiss you instead of paying you a raise. If he is not allowed to dismiss you then he might not be far from bankruptcy. The taxpayers can only support so many otherwise bankrupt enterprises for a while. Nor will you be able to force consumers to pay for goods that are overpriced due to your wage demands. If it were really possible to arbitrarily increase wages by more or less judicial decisions of arbitration courts, then we should demand of them that they each entitle us to demand a million dollars every week as our rightful wage, to maintain us in style. Why be satisfied with anything less? And if they cannot provide us with a wage increase of one million, then they, by their decision, cannot even provide us, on their own, with a wage increase of a single cent. - However, we tend to overlook this reality under a system of monetary despotism, which distorts not only our paper value standard and monopoly means of exchange, but also our vision or understanding of it. The arbitration system can "allocate" wage increases only when they are paid in additional forced currency, directly or indirectly. Their purchasing power would soon tend to be only the same as the former wage - and it might even amount to less. We might also lose our job in the process and the employer might be driven into bankruptcy, because the monetary despotism does not supply all employers evenly and all potential customers for him with sufficient of its scarce monopoly money, not even in times of galloping inflations, when prices and wages might race far ahead of the fast inflation rate. Usually the arbitration system's wage increase decisions, and the "wage gains" through anti-industrial and coercive union actions, are only responses to an inflation that has already increased many or all prices and has left wages behind, at their formerly fixed nominal rates. Then, while no more than an adaptation to the past inflation is achieved and no indemnification is offered for the inflationary losses in the meantime, the unionists and arbitration court supporters want to be praised for the merely nominal wage increases that supposedly were due only through their actions. If they were getting out of the way and individuals, in their wage contracts, could propose and contract value preserving clauses, then their purchasing power might thus not only be preserved but even be increased, corresponding to their own contributions to increased productivity. Union and arbitration court monopoly "actions" prevent this kind of self-help and self-promotion. They also tend to prevent the spread of productive cooperative enterprises, with no wage problem and personal subordination that is not warranted by a job. - J. Z., 24.3.97. - Wages are prices and free and just prices can only be determined by a free market system, by supply and demand, under freedom of contract, not by any trade union officials or judges or arbitrators. - They do also need monetary and financial freedom not monetary and financial despotism. - J.Z., 28.5.11. - UNIONS, NATIONAL WAGE CASES, COLLECTIVE BARGAINING, INFLATION, WAGE INCREASES, STRIKES, VALUE PRESERVING CLAUSES

ARMAMENT: In the year 2008 the USA, with 507 billion dollars, spent more on armament than all other States together. - Uwe Timm, in espero, September 2009, S.3. (Im Jahre 2008 gaben die USA mit 507 Milliarden Dollar mehr Geld für Rüstung aus als alle andern Staaten zusammen.) – How much could it have spent under voluntary taxation also for this purpose? – Its internal police forces are also monopolistic and thus far from ideal. As an international policeman the USA was and is also, largely, a failure. This organization, which spent most on guns has also passed over 20,000 local anti-gun laws, better called: “victim disarmament laws”. As its war- and peace-aim it has nothing better to offer than large territorial majority despotism and minority favouritism, to buy more votes. – That does not sufficiently to many or most people in many countries. It does not even raise enough volunteers for its military forces. They have largely to be bribed into them, thus turning them, more or less, into mercenary forces than genuine citizen forces or ideal militias. – With all that money somehow spent, their soldiers at the frontlines still find themselves often under-equipped, while the flawed USA policies raise more enemies than friends. – It is still the largest owner of mass extermination devices. Which are the rightful “targets” for such “weapons”? – I don’t know of any. Do you? – Ron Paul demanded the withdrawal of all US troops, stationed in 130 countries of the world. – Ibid, p. 6. -J.Z., 4.8.10.

ARMAMENTS, ARMS RACES & ALL KINDS OF MILITARY SPENDING DO INEVITABLY LEAD TO INFLATION: A popular view. It is true only if all such spending is "financed" by the government's printing presses for forced and exclusive currency. Without legal tender and the issue monopoly, it could not take place. Attempts to finance it then by additional paper money issues would depreciate this paper - but not sound value reckoning, and lead to more and more people totally rejecting government paper money issues. Under financial freedom they would then also effectively refuse to pay taxes to such a government and could not be forced to subscribe loans to such a government. Under monetary and financial despotism this kind of war promoting exploitation can, indeed, take place. This is one more good reason to abolish this despotism. - Before the Prussian wars of 1864, 1866 & 1871 Prussia was also well armed but it did not inflate its currency and could not because it had not given it legal tender, not even for the financing of these wars. But it did introduce legal tender for the conduct of WW I and maintained it, most of the time (a short period of the Rentenmark of 1923/24 excepted, I do not know exactly when that was ended), for WW II and the "liberating" Allies maintained this monetary despotism for the old RM and their occupation marks, to June 1948 and then tolerated it for the new DM ever since, i.e., a totalitarian and communist money system even for supposedly anti-communist States that were sometimes in armed conflicts with communist States. - J.Z., 24.3.97. - INFLATION

ASSET CURRENCIES: Asset currencies have been proposed and tried out again and again, largely without awareness of their historical precedents and failures and of the inevitability of their failures. See: LAND BANKS, REAL ESTATE AS COVER FOR CURRENCIES, BONDS & GOVERNMENT SECURITIES AS COVER FOR CURRENCIES. The issue principles and practices of financial freedom are different from the issue principles and practices of monetary freedom. They should not be mixed up. In both cases one deals with valuable properties. In both cases the transactions should be voluntary. In both cases free market rating should apply and in both cases value preserving clauses or value standards should be applied and expressed in them and in prices, wages, rents etc. Ready for sale consumer goods and services, through suitable claims upon them, could be used for subscriptions to capital securities, rather than the latter being wrongly used as a the basis of currency issues. Capital securities can and should be issued upon capital assets. Capital securities in small and even denominations may be easier to market - but that does still not turn them into currencies. Notes for apples and meat, mortgages for houses, shares for factories. Security issues can be sold and bought for cash or clearing certificates. Currencies or clearing certificates can be used to buy capital securities. But this limited and in each case to be voluntarily agreed upon exchange still does not make them identical, in the same market, among the same people, with each being a full substitute for the other, immediately, among all local people. Capital securities have their special markets and their separate circles of sellers and buyers. Securities represent rather land, bricks, timber and steel, hardware, machinery, resources or the expectation of their provision and of benefiting from them in the future. Currencies, on the other hand, represent goods, services and labour available for immediate purchase, consumption or use and these goods already produced and sold at least to wholesalers, on the road to retailers or already waiting for sales there. Next year's birthday or Christmas isn't today's birthday or Christmas. One should keep the two apart. Time differences do matter as you will notice when you are separated from your beloved ones for 3 months or 3 years. Future values are not present values. Present values are not future values, although the two are related and can be somewhat interchanged, at the prices and costs involved. Consumers, who want a currency for today's and next week's purchases, do not want, instead, a security for a future capital value, although sometimes, and to some extent, they want such values, too. In some heads a real block exists against such distinctions. They imagine that only useless hair splitting is involved. It would help if the experiences of a number of sound banks of issue for turnover-credit banknotes were put side by side with banks of issue that issued bank bonds, mortgage letters and shares and if these were also compared with the historical experiences of banks that tried to turn assets like land, private shares, government loan certificates, into currency, assuming that they would be immediately useful for consumer shopping, although they would be given no exclusive currency status and legal tender power. A fourth table might indicate the experience with asset currencies, where the assets became irrelevant because the paper monies, supposedly backed by them, were in reality only accepted because they were given exclusive currency status and legal tender power (forced acceptance combined with forced value. - Then the different recorded experiences might speak for themselves and suffice to convince. - J. Z., n.d., 30.4.97, 29.5.11, 3.8.11.

ASSET CURRENCIES: Assets have no real currency - except e.g., among brokers, financiers and real estate agencies - and those, who happen to be in the market for some assets, for a while and to some extent, with a fraction of their accumulated cash or of their earnings. - J. Z., 23.4.97.

ASSET CURRENCIES: Just because the laws have allowed them or even prescribed them in some instances, and this, sometimes, under the misnomer of "free banking", does not make them right, honest or economically sound and efficient or competitive under conditions of full monetary freedom. Modern views on this are nothing better than a revival of the old "land bank" schemes, by which the issuers attempted to foist fractions of mortgages upon the population as if they were and could be a sound currency. This particular fallacy was often refuted in the literature. But the general asset currency notion is still very much alive and all too widely practised by central banks. They even accept government "insecurities", or investments in tax slaves, as assets. When such issues are monopoly currency issues then the issuers can get away with them for all too long - for people often accept bad forms of money if that is the only one which is made available to them or permissible for them. But under monetary freedom no one would be obliged to give any real purchasing power to any such currencies, by accepting them for his goods, services and labour. They would, as currency, have no more status and ready acceptance, far less par acceptance, than have mortgages, bonds, shares and other securities have in most daily exchanges for most people. I.e., they would not be currencies. They would be useful only on the capital market, which embraces only a fraction of all buyers and a fraction of all their purchases and sales. That is the main reason why they cannot be sound currencies in local circulation. Their circulation sphere and volume is all too limited. They are not tickets or vouchers to daily wanted and ready for sale consumer goods and services. The do have no "shop foundation". That is an essential requirement even for gold or silver coins. - J. Z., 25.12.88, 16.5.97, 29.5.11. - FIAT MONEY, CENTRAL BANKING, MONETIZING GOVERNMENT DEBT CERTIFICATES, WHICH ARE INVESTMENTS IN TAX SLAVES. Compare: TAX FOUNDATION MONEY.

ASSET CURRENCIES: Some notes by J.Z. on an exchange between Don Werkheiser and T.M, March 23, 1990. Houses and note issues upon them: Assume the asset of a house, estimated to be worth $ 180,000 and notes issued upon that asset, valued, coming, nominally, only to $ 120,000. - Seemingly, and in the eyes of some, these notes are then "well covered" or secured. In reality, such "currency" notes are then only small and standardised mortgage bonds that do not even pay interest. Only the house owner would be morally obliged to accept them - if and when he wanted to sell the house. Others would accept them from him only if they are potential investors or buyers of that house. They might have to be tempted by the offer of interest to do so and would, otherwise, refused to accept them. Why should any shop owners or businesses accept such notes from such an issuer, if they are not interested in buying this house or investing in claims to it and no interest is paid and if there are no ready other acceptors for such notes? What could they do with them then? Who would be contractually obliged to accept them from him? Why should they act as brokers for such mortgage bonds? There is a difference between mortgages and sound bills of exchange and between mortgage letters (or bonds) and banknotes based upon real commercial bills. The difference lies in the kind of securities offered, the value of a house vs. daily wanted and offered consumer goods, i.e., mainly the time factor that is involved, the immediate usability which makes a currency "current" or immediately useful. For the house-based "currency" there is only a very limited readiness to accept it (in case of the sale or renting-out rooms of the house) by the single issuer. The shop-foundation and short-term debt-foundation of banknotes, on the other hand, is offered by many acceptors and they offers a great variety of daily wanted goods and services. They offer something useful to the note holders, immediately or soon, in a considerable and sufficient choice. The house owner would or could hardly want to sell his house brick by brick etc., after wrecking it first, nor would he find many buyers for such a limited offer or get a high enough price for them to cover this "currency"- or takers for his only thus "secured" mortgage bonds in money denominations. What an honest house owner, issuing notes "covered" by the value of his house, should explicitly declare on his "banknotes" is something like the following: "I want you to give me the values I want now, for these, my notes. But I am not willing to give you, with these notes, the values you want and might be able to get from me now - apart from the value of the house, which I have not even placed on the market as being for sale. All I offer you with my "house notes" are small mortgages secured by the market value of my house. I do not even offer to accept my notes e.g. in rent-payments to me, in case I were to let this house or some of its rooms to you, which I do not, presently, intend to do. I do not offer you any interest payment for the period that will pass until you manage to fob of these mortgage letters upon other victims with capital, goods, services or labour that they do want to thus invest. I merely rely on your good faith, trust and confidence, for which I can offer no other basis than that the total present market value of my house, which is not ready for sale right now, but which is larger than the total number of notes that I have issued upon this value. So, they are not altogether value-less but more than "covered" by their visible and properly estimated "security" and "cover". - If I were to issue notes for the total value of my house and if I were to set a date for its sales and if you had managed to accumulate all these notes in your hands and would want to buy my house, then I would be obliged to hand over the title to it, in return for you handing over to me all these notes. But, since I haven't made this sales offer, I do entirely rely on your unfounded trust and confidence that these notes do have their full nominal and free market value now, equivalent to the sales price of my house, if and when I would sell it. I also trust that you will be ingenious enough to fob them off unto others, also believing in the possibility of "asset currencies", thus passing on the problems of immediate redemption for these notes to them. - I cannot say why I prefer to call these notes my "banknotes", fully covered by the value of my house, instead of mortgage bonds or mortgage letters. - Money in the own eyes is not automatically money in the eyes of others, no matter how confident the issuer is or the person who assumes that he is a potential issuer for banknotes. One should try to think through every issue and reflux, every cover and redemption and security, step by step, taking all the liberties and rights involved in consideration, all the special and general interests of all the parties involved. Then one will find that it is not just a matter of a "unilateral issue" into "circulation", a "single convenience action", as Don Werkheiser called it, but that a "mutual convenience action" must be involved, in which potential acceptors would only accept what they want to accept and to the extent that they do want it and only at times that they do. That means, in practice, that a free and informed market, made up of all the potential acceptors for such notes, would largely refuse them and the few who would accept them would greatly discount them, so much so, that a potential buyer of the house could very cheaply buy up these claims and with them, if they came, nominally, to the value of the house, or if used in part-payment, could make a for him very cheap purchase bid for that house. The issuer, if he had persisted in issuing these mortgages in spite of their great discount, would have got only whatever values he would have been able to buy with them, at their discounted rate. - J.Z., 17.9.02, 29.5.11. - OR TURNOVER-CREDIT CURRENCIES?

ASSET CURRENCIES: The only assets which asset currencies could effectively move are capital assets and capital securities. E.g., capital scrip or mortgage letters. They can be issued and used to transfer large capital assets, which otherwise would not be as easily transferable. (To that extent there is an analogy to the discounting or Real Bills with new banknotes, to improve turnover credits without the need for metallic cover and redemption but merely the need for a short-term clearing in the turnover process of wanted consumer goods. - J.Z., 3.8.11.) But asset currencies do not represent and cannot, therefore, easily transfer ready-for-sale goods, services and labour. These require currencies based upon them. - Only when all other currencies are effectively outlawed can any monopolistic asset currency somewhat replace them, in spite of its unsound foundation for currency purposes. Rather than doing without monetary exchanges altogether, people would then even accept an asset currency - up to a fraction of all the capital assets, without responding to the asset currency issue with inflated price and wage demands. Such price and wage increases would not indicate a dearness of goods and labour but a depreciation of the forced and exclusive "asset currency" imposed upon them. - J. Z., 6.4.94, 24.4.97, 29.5.11.

ASSET CURRENCIES: To try to turn capital assets like raw materials, premises, and machinery or the capital securities that do represent them, directly into currency, supposedly useful for the current purchase of consumer goods, is a great mistake because at the same time no equivalent and additional consumer goods and services are provided by the issuer to redeem them with. The holder of the certificates could only force the issuer into liquidation and then claim his share in raw materials, premises and machinery - but only relatively few would want to acquire them. On the other hand, if there is someone prepared for a take-over bid for the business of the issuer, then such issue attempts would be very much welcomed by him, for this scrip would rapidly depreciate in a free market and could thus be bought up very cheaply and used in the take-over bid. A few such experiences, well publicised, will serve as a deterrent.  But that does not mean that there should not be full freedom to issue financial securities, too, which do quite clearly represent capital assets and are bought up and traded by people interested in capital investments. To reduce this kind of mix up of capital securities with turnover bills and notes, the issue departments for both should be as far as possible kept separated because for people have fallen for the errors of "asset currencies" again and again and they have often been embodied in banking laws, especially those on central note-issuing banks or national governments, who wanted to thus liquidify their governmental insecurities or investments in tax slaves. - J.Z., n.d. & 29.5.11,3.8.11.

ASSET CURRENCY: An unsound turnover currency system is not sufficiently remedied by there existing, in case of its bankruptcy, some securities for the benefit of its creditors. Its primary intention is not to provide such an ultimate guaranty or backing for its currency, after its failure, but, rather, to provide for its currency a ready cover, reflux or redemption right now, especially by short term securities and by the ready for sale goods, services and labour which the issuers of the short term securities have to offer to the holders of the banknotes of the bank. Only such turn-over function, security, guaranty, redeemability, cover, reflux, or convertibility arrangement can keep a currency sound and current, by exerting a sufficient daily demand for bank notes, to keep them at par with their nominal value. If the issuing banks do not provide such an instant cover, security and convertibility and no one is instantly obliged to accept the currency issued by the bank, i.e., if there is no instant demand for it but only the distant future redemption via the capital securities, then such a currency must inevitably depreciate. - J.Z., 6.4.93, 27.5.97, 29.5.11.

ASSET CURRENCY: Just because the law has permitted or even prescribed it in some or many instances does not make it rightful or economically sound and a desirable and predictable practice under monetary freedom. "Modern" views on this are often merely a revival of the ancient "land-bank" and "assignat" fallacies that have been refuted by their practice and several scientific studies. - J. Z., 8.4.97. See: APHORISMS ON THE MONEY PROBLEM.

ATCOPS: Roger Young, in TC144p43 reports that ATCOPS is alive and well and in its 20th year. Current details are not known to me but wanted by me. - J.Z., 3.8.11.

ATKINSON, EDWARD, Pamphlet, title unknown, referred to by TANDY, Voluntary Socialism, p. 103, stated on a legal tender act: "... an act by which bad money may be forced into use so as to drive good money out of circulation." - All correct versions of Gresham's Law, with their author, title and date of publication, preferably also page references, are wanted by LMP, towards a monograph on this subject. - J.Z., 12.4.97. - I would prefer if someone else wrote it, a.s.a.p. - All such libertarian projects should be listed online in a common projects list in order to mobilize the manpower for them. - Compare my list of only 1,000 such projects back in PEACE PLANS No. 20, 1977, later digitized by me. - J.Z., LEGAL TENDER ACTS, GRESHAM'S LAW

AUDITOR, Periodical published by WESTRUP, ALFRED B., for free banking. At least 2 issues appeared. I have not seen any yet. - J. Z., 28.4.97. - Copies, best already scanned in, are wanted by me. - Google offered me today 40 references under his name, but not a hint towards digitized issues of this periodical. - Libertarians have still to bring so many treasures up to the light of computer screens. - J.Z., 3.8.11.

AUSTRALIAN MADE, BUY AUSTRALIAN! - If you want to sell Australian goods, services and labour, then monetise them freely and thus spend their value even in advance, before they are sold for this kind of privately or cooperatively issued competing currency. - Australian-made goods, if up to world standards and at world prices, are good enough for currency issues, too, for international trading. If they were not then there would be something wrong with these recommendations. Why should Australians be foolish enough to buy Australian goods and services and labour, if they were of inferior quality or offered only at higher prices? - J.Z., 6.10.93, 1.5.97. - If you spend Australian paper money overseas then there is only one rational use for them, namely, to use them in payment for Australian exports. Competing Australian clearing certificates that are redeemable only in Australian goods and services, freely market rated, refusable in general circulation and obligatory only for their issuers, also time-limited, would be more obviously balancing imports with exports. See the writings of Prof. Edgard Milhaud and of Ulrich von Beckerath on this subject. - J. Z.

AUSTRALIAN MADE, BUY AUSTRALIAN: Permit the owners of all "Australian Made" goods to issue goods-warrants and purchasing certificates as well as clearing certificates based upon their combined goods and service offers, for goods and services that are in daily demand by consumers, and allow wages, salaries and other debts to be paid in them, if the acceptance is voluntary and then, to the extent that such alternative monies will be readily accepted, the purchasers will buy goods made in Australia with money freely made and freely valued, accepted and spent in Australia. To the extent that such private vouchers, in money denominations, can be freely issued, they will stream back with much greater certainty to the issuer and his debtors, for their goods and services and labour, than any rare metal coins or legal tender money spent by them. They will be busy and employed and achieve sales to the extent that they can issue these "ticket-monies", goods warrants, service vouchers etc., in convenient money denominations and do get them readily accepted. Moreover, they are morally entitled to thus offer their own property in a monetised form. No government owns them and their property, their consumer goods stocks, services and labour for sale. Thus no government is morally authorised to issue assignments upon their property, for which, in the act of issue, it has to give nothing in return but a scrap of printed paper and the option to use this in payment of tax tributes which it extorts from its tax slaves. Government cannot provide such a soundly based money. It can only requisition, with its paper money, the real redemption fund for any currency in any country, one that belongs to the producers and traders themselves: the ready for sale goods, services and labour. (Apart from the issue of tax-foundation or contribution-foundation money, anticipating near future taxes or contributions and these can be rightful only for communities of volunteers.) - The Australian nationalists should seriously consider how free and independent they are when they are only allowed to buy their goods, services and labour provided by Australians or foreigners with the monopolised and forced paper money by a single privileged and legalized despotic institution in Australia, its central bank, called the Reserve Bank. - Why should all Australians, for all their economic activities, have to depend upon its good will and abilities - if any - and this in spite of all the evidence that speaks against any central bank? - When and to the extent that Australians can issue their own competing and optional currencies, they will, inevitably, "buy Australian!" - The same applies for competitively issued international clearing certificates that can only be used, after Australian imports have been paid for with them, to purchase Australian export goods. - With government paper money, often under a controlled exchange rate, and with foreign central banks mad enough to hoard such notes, as "foreign exchange reserves" or foreign private citizens being inclined to hoard such notes, because they are better than the still more inflated paper currency of their own government, the reflux of such paper money as purchasing certificates for Australian goods, is much less certain. - To speed up the reflux and make it more regular, all internal and external clearing certificates and goods and service-warrants should also be given a limited life span only, for 3 months to 12 months at most, thus appealing to the self-interest of the holders to redeem them in Australian goods, services and labour within that period. Alas, this kind of "buy Australian" with competing Australian monies, is not yet popular. - Help to make it so. - J. Z., 5.10.93, 24.4.97, 29.5.11.

AUSTRALIAN OWNED? Because something is "Australian owned" or "produced in Australia" or "bought in Australia", following the command: "Buy Australian!" - does not mean that it is cheaper or better than other businesses or goods or that Australia, as a whole, benefits more from such enterprises, purchases and sales than it does from others. If, instead of buying from an Australian owned firm, you buy from a foreign owned firm in Australia or one overseas, then you do, thereby, enable that foreign firm, whether situated in Australia or overseas, to buy the corresponding values from Australia. And these values, sold to foreigners, and paid with by the return of the Australian paper currency, would then be proudly claimed as Australian export achievements! (They are objectively achievements, like any other sales, but in contradiction to the insistence upon buying only Australian goods.) - If the owners of Australian enterprises were not free to sell them to foreigners, i.e., if most of their potential buyers were excluded, then they would thus be robbed of part of their property rights. Each foreign owned firm means: This firm has not been given away, stolen or occupied but SOLD by an Australian, who managed to get a higher price for it than other Australians were willing to pay him. Should his property rights be overlooked? Should he be penalised, taxed or should the buyer be boycotted? His property belonged to him, not to the nation. Those Australians, who did not buy it, did not offer more for it than a foreigner or foreign company did, have no right to complain. Every transaction that is free and voluntary, i.e., as a rule for mutual benefit (apart from some errors or misjudgements or frauds on one side or the other), is right, thereby. The nationality of the seller or buyer, or their race, religion, sex, age or ideology should have nothing to do with their trade or exchange. Nationalism, statism and borders should be entirely excluded from economic and moral considerations, as irrelevant, if not outright, wrong, harmful and anti-economic. If any Australians can make a better deal with foreigners than with other Australians, let them. The total of all earned economic satisfactions in Australia would be increased thereby - even while the number of dissatisfactions based upon ignorance, prejudices and myths would also be increased. Mercantilism and State Socialism were and are wrongful and harmful utopias. Only those individuals who voluntarily subscribed to them should have to suffer under them. - PIOT, J. Z., 22.5.97, 15.9.02, 29.5.11. - FOREIGN INVESTMENTS, FREE TRADE, EXPORT & IMPORT BALANCE

AUSTRIAN ECONOMICS ON MONEY: Austrian economists often asserted that the interventionism with currencies consisting in legally establishing an exclusive and forced currency would not matter at all if that were only done for gold coins and gold certificates. They could not do any harm, or so they believed, said and wrote. They could not be arbitrarily multiplied and thus would be the only exchange media and value standards that should be permissible and that should also be legally enforced as exclusive exchange media and value standards. They did this under the assumptions that prices and wages would be infinitely, fast enough and completely enough adaptable to any changes that might occur in the quantities of gold available for monetary transactions or to changes in the monetary demands for gold. - This belief is dogmatic for them, a fixed idea. They do not bother to check it against the facts. They ignored the numerous reports of currency shortages and currency famines. They ignored the ten-thousands of reported cases of the issue of emergency-, token- and truck-money, hundreds of years after the invention of rare metal coins and gold- and silver certificates and even the millions of incidents in which people in their exchanges were being reduced to primitive barter transactions - although, somewhere, the same quantities of gold and silver did still exist. Some still manage to ignore the phenomena of deflations and the reports on currency shortages or even currency famines. Nor did they consider the different effects which falling price levels have upon all sellers and buyers, to the extent that the buyers can postpone purchases, as opposed to fallen prices, e.g. due to some technical innovations. (Even here some buyer restraint occurs, e.g. in the purchase of computer hardware, in the expectation of even further price falls in spite of continued improvements in the hardware.) (Increased prices and increasing prices do also have different effects upon potential buyers. - J.Z., 29.5.11.) They do overlook the stickiness of prices and wages. They do overlook the numerous contracts which nominally express debts over a time period and which debtors would find it hard to fulfil with severely deflated currencies, which they would find it much harder to earn, in the same nominal quantities, while the prices for their goods, services and labour have been deflated. - If gold and silver were so abundant and so useful, there would also exist the possibility to provide them in weight units for the black market and have black market transactions finally take over the whole market. But that hasn't taken place, either. By now many people may never even have seen a gold coin. Then there is the fact of trade having existed even among Australian Aborigines, for small and portable items, used as barter goods across the continent of Australia. Gold coins or nuggets or dust did not become currency among them, either. The distribution of gold standard gold coins and certificates was rather limited to a few of the more developed countries and even there only for limited periods and limited circles. In others they were hardly ever seen, not even coined out in mini-weights, for very depressed monetary prices. Nor do most Austrian School economists seem to be aware as yet, that clearing underlies all money transactions and that pure clearing transactions do not require any gold coins or gold certificates at all to become possible, sound and wide-spread, even though they might prefer to use gold weights and their purchasing power but merely as their value standard units. Blinded by their dogma on "convertibility by the issuer, upon demand of the gold certificate holder", they remained blind to the possibilities and functioning of the real bills doctrine or banking principle and their functioning even without metal convertibility, even after their banks were declared officially failed and bankrupt, because they could not longer redeem their notes fully in gold. The clearing function involved in the real bills doctrine or banking principle, continued to function for a while, because the debtors of the bank exerted a strong demand for the notes, which enabled them to pay their debts to the banks. - The minds of the Austrians were so focused on the metal convertibility or non-convertibility of notes only, that most of them (probably some of them do so still) overlooked the much greater significance of legal tender - and the harmlessness and self-limitation of banknotes not covered in gold but soundly issued only in turnover credit transactions that are soon self-liquidating. How often have they been aware and to what extent are they aware now that without legal tender and the money issue monopoly one cannot inflate a currency in a market that enjoys monetary freedom and uses that freedom in freely competing exchange media, clearing avenues and freely chosen and competing value standards? Held back by their limited money model, as they are by their limited government model and limited defence model, they have not extended their thinking to the full range of monetary freedom, of free societal options and of libertarian and anarchistic defence and war prevention possibilities. Anyone who thinks that he already knows enough cannot be taught any more, as long as this illusion persists in his or her head. - J.Z.,26.1.94, 1.5.97, 29.5.11.

AUTHORITY, AUTHORITARIANISM IN MONEY: The fundamental, decisive idea of this Revolution is it not this: NO MORE AUTHORITY, neither in the Church, nor in the State, nor in land, nor in money? - Proudhon, General Idea of Revolution in the 19th Century. - Alas, in his practical proposal he always spoke only of THE Bank of the People, not of banks of the people. - Maybe he spoke and wrote in this way because he had only a particular model for mutual banking in mind, the one for which his drafted his bank statutes. It would have been quite inconsistent for him, as an anarchist, to demand a monopoly for his Bank of the People. Alas, not all of his papers and correspondence seem to have been published as yet. Their complete publication would help to settle this question. - J. Z., 15.4.97, 29.5.11. - MONETARY DESPOTISM, CENTRAL BANKING, EXCLUSIVE & FORCED CURRENCY, PROUDHON

AUTOMATION: Many people believe that there is a link between automation, robots and unemployment, that people would be replaced from their jobs by machines, robots and automation and could not find new jobs. - "Japan, for example, has about 400,000 robots installed and a declared unemployment rate of 2 1/2 %, while Australia has about 1800 robots and a much higher unemployment rate. - The Australian Robot Association estimates that 118 robots were installed in this country last year. This number is too small to have had any significant impact upon unemployment. - In the past two years, IBM reduced its workforce by 90,000 jobs, Boeing by 28,000 jobs, and Digital Equipment Corp by 27,700 jobs. But few, if any of these jobs, were lost because employees were replaced by machines. Rather, according to a recent survey by Ms Trudy Bell, published in the engineering journal IEEE Spectrum, the job losses were due to factors such as the dwindling market for mainframes, diminished military orders brought about by the end of the Cold War, and reduced purchasing because of the global recession." - Michael Kassler, Survey explodes myth of the link to jobless queue, THE AUSTRALIAN, 5.10.93. - ROBOTS & UNEMPLOYMENT




BAKER, ALEXANDER, The Fed Is Lifeblood to the Root of Evil - "Central banking makes possible the expansion of government power in all forms, most particularly the wicked godfather of all government programs: war. Without central banking, it is doubtful that any of the great wars of the 20th century, or the current debacle in Iraq , would have ever taken place, certainly not on the scale we have seen." - Roy Halliday - FED, CENTRAL BANKING, MONETARY DESPOTISM

BALANCE OF TRADE: In truth, however, there is no dependable correlation between balances of trade and employment. During our long years of favourable trade balances, we sometimes had much unemployment. And sometimes we had labor scarcities. I have found this same situation in Argentina and various other countries. And the unfavourable balances of trade in Europe sometimes seemed to have a negative correlation with employment, i.e., the larger the inflow of goods and services from abroad, the more jobs at home in Europe. - Dean Russell, Government and Legal Plunder. Bastiat Brought Up to Date, FEE, May 85, ISBN-0-9106614-70-9, 116pp, p.81. - UNEMPLOYMENT, DIS.

BALANCING THE ECONOMY THROUGH MONETARY CONTROLS OR MANIPULATION: The good intention is to keep goods production and service offers in balance with the money issued. Some attempt to adapt the money circulation to the increased goods and service offers and others want to adapt productivity to the currency they make available. Most think only in terms of a centrally managed, exclusive and forced currency and would not allow free and competitive or cooperative issue and reflux arrangements to keep the goods and service side automatically in balance with the money side, through market forces, i.e., free enterprise, free trading, free contracts, free acceptance or refusals of currencies and free pricing for them, under full publicity for all details of issues and reflux arrangements. Under monetary despotism all these balancing attempts never succeed fully and for long and they cannot do so because almost all the automatically regulating indicators are stopped and no one is fully informed of what is happening and thus many false decisions result. Under monetary despotism the exchanges tend to be limited to those this despotism permits to occur and this often only under great difficulties, too. Despotic central banking and its forced paper value standard, maintained by attempted quantity controls ("open market" sales or purchases of securities by the issuer, discount or interest rate policies, credit restrictions or grant of credits and increased spending via the note printing presses) can never sufficiently supply all the exchange media needed, everywhere and by everyone, nor keep those supplied sufficiently stable for long. It is an unbalanced and unbalancing system. It is so mad that in some instances it has led to "valorisation (i.e., the burning, ploughing under or other destruction of crops) in order to artificially keep their prices up because, under monetary despotism and all too often, goods, labour and services cannot be sold at free market prices and the prices attainable under that despotic system might sometimes not even cover the costs, either, because they are too much deflated or, sometimes even because they are already inflated. (I have almost absolutely stopped getting hair cuts by a barber, many years ago, ever since their charges went above $ 1. That is not necessarily a rational response but it is an economic response.) That price controls and subsidies have sometimes misled producers to produce more, at artificially high prices, than the market really wants at these prices, does, naturally, not help, either. Nor can stockpiling of such artificial surpluses, by governments, at the expense of the taxpayers, help in the long run. The economic indicators should never be artificially and coercively falsified - if equilibrium is to be maintained as much as is possible in human affairs. Neither the goods side nor the money side is to be artificially manipulated if trouble is to be avoided. - J. Z., 24.3.97, 30.8.02.

BANK CHARTERS: Their (bank charters ) effect is to give to individuals the advantage of two legal natures - one favorable for making contracts, the other favorable for avoiding the responsibility of them, when made. (Spooner, Constitutional Law 21.) Spooner argues that all banking charters are unconstitutional for they violate the natural right of all men to make free contracts. Moreover, the legislature, in granting special favors to some and none to others, abuses its powers. - Charles Chiveley, introduction to Lysander Spooner, I/27. - MONETARY DESPOTISM, RIGHT TO BANKING

BANK FAILURES: Those, who are all too readily and prepared to indiscriminately accuse past and present banks of bank failures, have usually not distinguished e.g. between 1.) Failure of the issuing bank to redeem its notes upon demand fully and to their nominal value in rare metals, or, nowadays, in legal tender money or even in government insecurities. 2.) Failure to cover notes issued and current deposits granted, by means of short term and self-liquidating securities that represent goods produced and already sold and on the road to consumers, 3.) Failure to provide sufficient clearing facilities or debt foundation for all notes to keep up a strong demand for them, that could keep them at par until they are withdrawn in the final settlement or payment. 4.) Failure via dishonesty, corruption or embezzlement among the bank's officers. 5.) Failure due to malinvestments, large ones, in unprofitable enterprises, so large in relation to the whole bank business, that this single failure could send it broke. The lending risk was then not sufficiently distributed, in accordance with insurance principles. 6.) Failure through lending short term or medium term funds on long terms, instead of only on the terms they were deposited on. 7.) Failure in such cases to make contracts that would allow them such investments but also allow them to postpone repayments until they would be liquid again and in the meantime only offer to pay-outs in bank-bonds, transferable ones, that would cover the remaining outstanding loans, on repayment in instalments. 8.) There are also various other forms , e.g. "option clause" notes that would cover the risk of any temporary illiquidity in normal business, when debt and credit terms and amounts do not exactly enough equal each other. 9) Failure of other banks than the central banks of issue due to the inflationary, deflationary or stagflationary policies of the governmental central bank. 10) Failure to sign up a credit insurance policy for the ordinary risks of lending or undertaking sufficient self-insurance precautions, alone or in association with other banks. - J. Z., 11.4.97. - Runs on banks could have been prevented or greatly reduced in many ways. For instance, by starting a list for those who wanted to withdraw their money, in which those on the top of the list would have the top claim to monies received in payment of debts to the bank. The banks could have offered limits on the amounts of cash withdrawable immediately, without notice. Or it could have insisted on having been given sufficient notice for all withdrawals. (In the meantime, it could have accumulated the funds from repayments and by reducing further lending.) There is no fixed limit for the kinds of contractual safety clauses that could have been agreed upon. To promise something to all that could never be fulfilled if all suddenly claimed what was promised to them, was always wrong and bad business practice, even though, in normal times, they could get away with this for considerable periods. Generally speaking, banks and bankers do mostly not really comprehend the sound business of banking, or the "banking principle" for the issue of banknotes. Like politicians, they do engage in many wrongful and harmful practices, and, due to insufficient competition from alternative political and banking systems, they go on and on with their wrongful and harmful practices, all in accordance with all too widely spread popular prejudices, supported by supposed academic experts. Can one teach them to proceed morally and rationally in spheres where they imagine themselves to be experts? You try it! - J.Z., 5.9.02, 29.5.11.

BANK ROBBERIES: There would be less cash robberies under free banking because quantities of local cash that have thus gone astray are much harder to dispose of and at the same time much easier to trace than is, e.g., an exclusive legal tender paper currency or rare metal coin currency, that can be spent all over a large country or even all over the world. The same applies to forgery attempts. Moreover, freely competing currencies are likely to have only a short circulation period. Thus "hot money" cannot simply be hidden for a long period and then spent relatively safely. It might no longer be a valid currency by them. If, after a robbery has occurred and the robbers got away, any strangers or locals were suddenly to spend large amounts of the stolen local currency, even if the numbers of the stolen notes were not known, they would immediately become suspects. - J. Z., 21.3.86, 16.5.97, 29.5.11. - & OTHER CASH ROBBERIES

BANKERS OF THE PRESENT: Most of the present private and commercial bankers, supposedly free and capitalistic entrepreneurs, are only allowed to deal in nationalized and governmental exchange media, just like ordinary citizen subjects and think and act only in terms of such money. They are also forced to use the governmentally imposed “value standard, “which is everything but a sound value standard. These currencies are almost constantly mismanaged, usually inflated to some degree or even severely and sometimes deflated or stagflated, under wrongful and harmful “currency policies” that cause major economic crises and then prolong them. They know and care nothing about sound, alternative and completing private currencies, how to issue them and how to assure their reflux to them, while maintaining their par-value with a genuine value standard. This in spite of the fact that this should also be their business, not just to handle governmental currencies or savings, investments and capital assets. To my knowledge, the vast majority of them are either quite ignorant of and disinterested in fully free banking or monetary freedom or are severely prejudiced against the genuine individual rights and liberties involved in this business or enterprise. And yet they pretend to be bankers! Just like the public servants, who, in most of their actions are anything but servants of the public. They lobby for further privileges and subsidies to their incompetence and, as far as I know, nowhere do they demand quite free and self-responsible banking and full monetary freedom. Nor do I know of any institution and publication, sponsored by them, that stands, well informed and consistently, for all genuine liberties and rights in this sphere. They are much more merely the priests of the monetary religion of the mass of ignorant and misinformed people, rather than light-towers for the monetary enlightenment of the people. Thus, in my view, they do not even deserve the term “bankers”. They are just dealers in monopolized goods or mere government agents or subjects, helping to maintain monetary despotism- with all its inherent wrongs and harmfulness and its all too often disastrous economic, social and political consequences, as long as it is being maintained. Just look at its record over the last century! - Please, do correct me, if I am wrong in this! – J.Z., 5.8.10, 8.9.10. - CENTRAL BANKING VS. FREE BANKING, PRIVATE AND COMMERCIAL BANKERS AS SUBJECTS OF CENTRAL BANKERS, MONEY MARKET, CAPITAL MARKET

BANKERS: Bankers perform the function of the commercial virtues by demonstrating and advancing the pecuniary value of a good moral character. - Henry Meulen, THE INDIVIDUALIST, 10/75. - With their demand for securities or guarantors for loans, governmental guarantees and deposit insurance, bankers have either betted only on a sure thing or have become so careless to lend even to despotic foreign governments, not only some wasteful and inefficient large private corporations. Their own government would not allow them to fail, regardless of the huge number of bad debts they managed to "expertly" acquire. They do no longer have to be good judges of business opportunities or of good moral character. A successful fraud was often a better investment for them, at least temporarily, even if, finally, he cheated the bank itself. Personal loans have become only a very small fraction of the total loan accounts. In judging their security the assessors of personal loan companies were, for many decades and probably still, much more competent. Bankers also refused the mini-development loans now becoming popular in underdeveloped countries, although they have a very low risk. (Not so low if these small loans, too, do have to be repaid in the government's monopoly money, which also causes sales difficulties for their small business enterprises. - J.Z., 29.5.11.) The student loans, while self-administered, had also a better chance of being repaid than most bank loans had and have. - The number of bankers who really understood the note issue business and who conducted their deposit and savings accounts quite honestly has always been rather small. They were, all too often, rather gamblers and high risk taking speculators than sound investors, at the expense of their note holders, depositors - or the taxpayers. - The insistence of bankers on securities for loans has been satirised by the remark: "Bankers lend money only to those who can prove that they do not need it." - Moreover, the fact that a special insurance is required for cashiers does also seem to indicate that those who employ them are not good in assessing their moral characters, either. - Furthermore: How many bankers do you know who have anything sensible to say on inflation, deflation, stagflation, legal tender, the money monopoly, devaluation or re-valuation? - Mostly the good reputation of bankers is as unearned as that of politicians is. - J. Z., 18. 4.97, 29.5.11. - CREDIT & MORAL CHARACTER

BANKERS: Their remaining privileges and the mystique that surrounds banking still, in all too many heads, including those of most bankers and central bankers and economists, has allowed some or even many ignorant, stupid, prejudiced, careless and irresponsible bankers to get away with all too much, at other people's expense, while continuing to enjoy prestige, high earnings and high retirement benefits, no matter how many people they harmed or wronged. - Some people got even so disgusted with the false notions that most bankers entertain on bank note issues that they proposed that future note issuing centres should explicitly exclude anyone who had previously occupied any executive position in the banking world, unless they could prove that they were among the few exceptions in this business. The same might be said about lawyers and many of the brokers of our times. - That politicians should be totally excluded from this business seems self-evident, at least to me. No kind of confidence trickster, demagogue or power addict is suitable for it, while he persists in this kind of career and at least until he has been completely rehabilitated, as e.g., Auberon Herbert was. - I do know that there are SOME honest lawyers around - but what do they know about monetary freedom principles and practices and what opposition have they ever shown to monetary despotism? - If there are such exceptional people among them then they should not be kept out. - The free banking business, like the computing business, should be largely left to its fans, not to its enemies or disinterested, ignorant or prejudices people or those with a looter mentality. Luckily, the ones who are already in the business of providing consumer goods and services are also, through their local associations, the most suitable among all the potential issuers under monetary freedom and the ones who, apart from the unemployed, have the greatest possible interest in gaining and enjoying the benefits of monetary freedom. They would not need any politicians or lawyers- except in defence against the oppressive actions of other politicians and lawyers.  - J. Z., 15.5.97. - OF THE OLD TYPE TO BE MOSTLY EXCLUDED FROM FREE BANKING & LAWYERS & POLITICIANS AS WELL

BANKERS: You can no longer bank on bankers. They will neither give you the highest interest nor credit when you need it most, nor can they protect you from inflation or from credit restrictions and deflations, nor from direct tax raids by governments, nor from the prying eyes of bureaucrats. They have let themselves be deprived of the business of note issue and have let the capital market become over-regulated. They know by now almost nothing about sound note issue techniques nor do they show any interest in them. They help the government to "invest" part of your savings in governmental "insecurities", which you or your children and grandchildren then have the honour, later on, to repay in parts, out of your taxes, or in depreciated currency. They have become mere agents for the government's despotic monetary policy. You can rely on them only in one respect: They will firmly resist, together with the government, all your attempts to go into competition with them, opening competitive and note-issuing banks and clearing centres, practising sound free banking principles and all aspects of financial freedom. - J. Z., 12.7.78, 24.4.97, 8.9.02. - & MONETARY FREEDOM OR FREE BANKING

BANKING PRINCIPLE: For me it is hard to comprehend how long two (or more) different scientific schools of thought can co-exist, side by side, without their differences becoming settled, or, worse still, how representatives of especially the ruling school of thought can simply ignore the facts and arguments advanced by their critics, as the currency school did, largely, versus the banking school and as is still being done today by various groups of "gold bugs" or "100% dollars" advocates. - Admittedly, much of the thinking of the free banking school was flawed, too. E.g., many of its members did, unnecessarily and without sufficient justification, adopt the obligation for rare metal convertibility for the issuer, although the banking principle or the real bills doctrine indicated already the real cover involved as the only cover required. - It is often not just one or two different views that are mostly or habitually ignored but sometimes hundreds, if not thousands. E.g., there are hundreds of different crisis theories and types of socialism. Nevertheless, most write on crises and socialism as if only their own favourite example of them did exist and were possible or worth talking and writing about. How often have primitive notions on trust or confidence in currencies, as one of their basic requirements, been thoughtlessly repeated, without mentioning the reflux and clearing foundation that is involved in short-term turnover loans, which do not have to be covered by gold stocks at all but are, like all debts and credits, clearable. There remain so many unsettled questions among freedom lovers, e.g. limited governments vs. anarchism, territorialism vs. exterritorialism, abortion vs. right to life, mercenary defence vs. militia defence, nuclear weapons strength and deterrence, vs. nuclear weakness and all the possible failures of nuclear deterrence. The money, currency, credit, clearing and value standard discussion is full of arguments still unsettled by libertarians and anarchists. - J. Z., 31.7.82, 24.4.97, 29.5.11. - It is high time to tackle all these differences of opinion fully and systematically and draw their balance sheets. - Our very survival may depend upon it. - J. Z., 8.9.02.

BANKING PRINCIPLE: How many different and correct formulations of the “banking principle” do exist and how many incorrect ones? Have all of them as yet been sufficiently clarified in any economic text books. The same applies to all the notions and misunderstandings of the “currency principle” – We have had centuries of discussions and writings on money and yet they have so far merely produced a proliferation of errors and misunderstandings, which dominate the hypotheses on money and its “laws”. (Most do not deserve the term “theories” and “laws”. – J.Z., 2.11.10. - CURRENCY PRINCIPLE

BANKING PRINCIPLE: The attacks of the advocates of the currency principle against the defenders of the banking principle do not constitute monetary enlightenment's last conclusions on the subject. The validity of the banking principle was recognized at least by some for more than 200 years. It was the properly expressed and understood banking principle that recognized early on the nature of money as essentially a clearing medium, while the advocates of the currency school remained stuck, to a large extent, in barter notions and practices, using bits of metal, in coin form, for this purpose, which were an advance upon the most primitive barter transactions but remained, essentially, merely barter transactions still. - J.Z., old German note, revised and translated: 23.4.11. - VS. CURRENCY PRINCIPLE, REDEMPTIONISM, METALLIC REDEMPTION OBLIGATION, GOLD STANDARD, SILVER STANDARD, COVER, CONVERTIBILITY

BANKING PRINCIPLE: The security for the bill is the legal claim which the bank has upon the property of its debtors. We see, therefore, that legal value may be made a basis for the issue of notes to serve as currency: (*) we see, therefore, the faint indication of a means whereby we may perhaps emancipate ourselves from the bondage of hard money, and the worse bondage of paper, which pretends to be a representative of hard money.” – (*) … The compiler of this pamphlet never foresaw that his theory would be exemplified in so objectionable form as the one which now obtains, and that he should live to see banks based on no actual capital at al, but solely on capital consisting of certificates of debts for actual values that have been used up in war, and no longer exist. The real capital of the national banks is the promise of the government to exact from the people BY TAXATION, sooner or later, an amount of money sufficient to pay the bonds, with interest…. – William B. Greene, Fragments, p.44/45Alas,at least here he did not clearly state that the debt should be a short-term one for goods already produced and sold to wholesalers, i.e., a “real” or “commercial” bill, instead of being merely a financial bill or a long-term capital debt certificate. – In his full statement, here, he recognized tax foundation but not shop foundation. – Alas, on page 49 he states: “Any member may borrow the paper money of the bank to which he belongs, on his own note running to maturity (without indorsement), to an amount not to exceed one-half of the value of the property pledged by him.” – Here again speaks of capital security or guaranty for a loan, in case of a debtor going bankrupt, instead of insisting upon the current or short-term reflux foundation that a currency should have, in payments to the issuer, to give it a current value at par in a free market, with its nominal value. (The pure banking principle.) Any long-term or medium-term capital value debt can be monetized only the extent of the next short term, say, quarterly, repayment instalment. Otherwise, such banknotes are, in reality, merely small shares, bonds or mortgage letters. To raise money on such capital debts, not note issuing banks and their bank notes should be used but the usual capital certificates of the capital market. – If even most of the bankers and theoreticians of money did not know this and still do not know this, then what can be expected from the voting public or its political or juridical representatives. All too few have studied genuine free market economics. – They are, rather, comparable to religiously faithful people and their priests. - J.Z., 27.7.10. - BILLS, BANKNOTES, REAL BILLS DOCTRINE, SECURITY.

BANKING, SAVINGS BANKS: Do banks already offer enough of a variety of accounts? Do they have the consent of all their savers for e.g. all their stock and money market speculations? That could be achieved by a wide enough spectrum of different accounts that would in each case clearly state their investment practice. Funds locally invested in productive enterprises and or local housing or other buildings should be distinguished, via separate accounts, from funds invested in shares, bonds, mortgages etc. in the general national or foreign capital market or in mere money market (foreign exchange) speculations. Thus the saver would know the kind of investments made with his money by the bank. With its own capital the bank should, naturally, be free to speculate as it likes. Some would prefer only investments in what they define as “ethical investments”. They should get this option through special accounts, paying them as much or as little as such accounts could bring them. – J.Z., 4.10.10. - FIXED DEPOSITS, INVESTMENTS, SPECULATIONS ON STOCK MARKETS & MONEY MARKETS

BANKNOTES: Banknotes and other exchange media should mainly represent the consumer goods and services that are already produced and offered for sale now. To that extent they should be merely "cut up" or discounted "real bills" or sound commercial bills or equivalent securities. They should not represent "cut up" or discounted capital assets, not wanted by most consumers at all or right now, or not to the extent that they are offered. The capital values, offered as "backing", might also be merely speculative. They might, in many instances, not even be ready for sale on the capital market but only may become ready for sale some time in the medium or long future. And they do not offer ready for sale consumer goods and services now, in form of ready or current claims against them. In some instance, they might be warehouse certificates, representing goods or mere raw materials, still to be processed into wanted products, that are currently not offered on the market at all but, rather, withheld from it, in the hope of higher future prices. Thus, instead of increasing the supply of wanted consumer goods and services, the backing for such currency is speculative, not ready for consumption but rather withheld from production or consumption. And yet the issuers of such "currency" believe that on a competitive currency market such exchange media could be kept at par without anyone being obliged to deliver any wanted goods or services at market prices for them. Somehow the notion of a monopoly and legal tender currency seems to have crept in, that would force the providers of goods and services to accept even such a badly founded currency, without sufficient reflux, if they want to engage in monetary exchanges at all. - J. Z., 9.11.88, 15.5.97. - CURRENCY, COVER, REDEEMABILITY, CONVERTIBILITY INTO GOODS & SERVICES, AS OPPOSED TO CONVERTIBILITY OR BACKING BY SECURITIES, PRIVATE ONES OR EVEN GOVERNMENT "INSECURITIES"

BANKNOTES: How many wrong or only partly correct theories exist on their origin, nature and function? - I hold that all of them should be listed and either proven or refuted. The same terms have all too often different meanings for the banking traditions in different countries and for different authors. Whenever such terms are used then the origin or definer ought, perhaps, to be included in brackets or the different definitions should be offered in a numbered list and. whenever the term is used, then the meaning should be indicated by its number being added in a bracket. - I hold, with Ulrich von Beckerath, that banknotes should mainly represent the consumer goods and services offered for sale now, within their private, voluntary and competitive payment circles or payment communities. Therefore, no "currency" should be issued that merely represent "cut-up" medium or long term securities or commodity or real estate capital values, whose medium or long term value is merely speculative and whose equivalent is anyhow not immediately available in form of ready for sale consumer goods and services and labour, at least not by the issuers of such "asset currencies". Why should the issuers of capital securities be allowed to thus dispose of goods, services and labour of others, without the consent of the owners or providers of these goods, services or labour? And why should these providers accept such "currencies", when they are not prepared to invest in the capital market? There is, indeed, room for small and standardised shares, bonds and other securities, but only in the capital market, not in the currency market. The two should be kept quite apart, in theory and in practice. A mortgage bond or a share does not have any immediate purchasing power. It does not oblige any storekeeper or department store or shopping centre, bus company, petrol station etc. to accept it, unless such acceptance is contractually provided for. And then these readiness to accept declarations would form the real and immediate cover or foundation or reflux option for such banknotes. But why should such providers depend upon others supplying them with notes - when they could issue them themselves? - Free after MFNL&MF 3/4, Feb. 89, & 8.4.97. 29.5.11. - BANKING THEORIES & FREE BANKING THEORIES, BANKING PRINCIPLE, REAL BILLS DOCTRINE, CURRENCY PRINCIPLE.

BANKNOTES: Just because SOME paper claims can in bill discounting be exchanged into bills or banknotes suitable for temporary and local circulation - and a short term later be withdrawn from circulation, in payment for the real bills they were issued upon, and then, preferably cancelled, rather than issued again in new transactions (thus facilitating the control of the circulation,  issues and their reflux, e.g. by numbering and issues of series), does not mean that ANY kind of paper claim can be thus and successfully discounted, especially not mere financial bills, speculative and long term securities, or notes representing speculatively warehoused commodities, not available on the present market. Only goods, services and labour ready or very soon ready for sale, can give a real and immediate purchasing power to any kind of currency. Without it no currency is more than a speculative security certificate that may or may not be ultimately redeemed, one day, with interest, or that may lose its value fast. No one is obliged to redeem it with his ready for sale goods, services and labour - although at any time some fools or speculators can probably be found to accept some such notes for a while. A free market will not value them as currency at all or not for long and not at par. Seemingly, many issues had no other foundation than long term securities or assets - because the other foundations were overlooked or not reported. In these cases the own capital of the bank or the private "securities" or "government insecurities" deposited, were nothing but an ultimate guaranty or insurance funds in case the currency had no other and sounder foundation and did fail. Especially their other debt, credit and clearing foundations were all too often overlooked, although without them all banks would have immediately failed, i.e. would have been driven into bankruptcy and closure. That sound money is merely a clearing certificate and does need no other value than the acceptance or clearing readiness of its issuers, acceptors and users, for the payments of all their debts and the receipt of all debts owed to them, is even today not yet generally seen. Only Professor Heinrich Rittershausen has based his unfinished work on monetary theory upon this insight. And it is hinted at or implied in all the writings of Ulrich von Beckerath and the monetary writings of Dr. Walter Zander. - See: - AS "CUT UP" REAL OR SOUND COMMERCIAL BILLS FOR GOODS ALREADY PRODUCED & SOLD & ON THEIR ROAD TO THE CONSUMERS

BANKOWSKI BLOG: BitCoin – The true free market money | Bankowski Blog - - Cached - 2 Jun 2011 – BitCoin – The true free market money. BitCoin Logotype. View This Poll - online survey. If you own BitCoins or know what it is you probably ... - Especially libertarianmoney reformers should be much more open-minded and tolerant towards other approaches than the one which they favour themselves. - J.Z., 9.8.11.

BANKRUPTCY Enterprises that are still basically sound but merely have a cash flow problem, under conditions of monetary despotism, with its deflations, inflations and stagflations, depressions, recessions and credit restrictions, should be set free to offer, in settlement of their debts, clearing certificates, in easily transferable money denominations, that entitle the bearer to obtain from the debtor his goods and services at par. Debtors should also be at liberty to set up a common clearing house for this purpose, mutually guaranteeing their repayments and they should be free to offer these certificates at a discount, that is attractive to their creditors, while these certificates are not accepted at par in general circulation. - With that liberty most of these debtors would not have got into their precarious cash flow situation in the first place. But once in it, they could trade themselves out of it. Moreover, their creditors could get the full value of their credits repaid to them, even if that required a larger quantity of somewhat discounted clearing certificates. The right of creditors to demand legal tender cash (or, as formerly, silver or gold coins) in payment, although that was not especially agreed upon in private contracts, should be abolished. All debtors and creditors should be set free to enable them to pay and be paid as far as is humanly and economically and monetarily possible, via clearing options. If we consider that money itself is never the ultimate objective but that it is merely a means to an end and that, with the curtain of the physical appearance of exchange media removed, in a thought-experiment, then not only the large number of non-cash transactions that do take place, invisibly for most people, but also the much smaller sums of cash transactions do merely achieve a mutual exchange for goods, services and labour for other goods, services and labour. Only some limited time delays are involved in these exchanges. (Exchanges over longer periods are involved when some of the goods are capital values and their capital securities.) ANYTHING that facilitates this process, through the technique of monetary exchanges or through clearing exchanges or any other non-cash payment alternative, that can satisfy debtors and creditors alike and that makes it easier to satisfy both of them, should be set completely free. It would then become obvious that, to the extent that an unemployed, tradesman, professional or a shopkeeper, could put into temporary circulation his own notes, or clearing certificates or electronically accounted clearing credits, buying with them his requirements, he would automatically, although indirectly, supply himself with work or sales. His spending would cause his earnings, instead of, as today, his spending would require first that he obtain scarce and exclusive currency for it, somehow, in a considerable struggle for them, by offering his goods and services in a market for such exchange media that is restricted through the coercive and exclusive currency of monetary despotism. - J. Z., n.d. & 30.4.97, 29.5.11. - AVOIDANCE VIA CLEARING OPTIONS:

BANKRUPTCY LAWS: Would BANKRUPTCY LAWS be permissible in a libertarian legal system? Clearly not, for bankruptcy laws compel the discharge of a debtor's voluntarily contracted debts, and thereby invade the property rights of the creditors. The debtor who refuses to pay his debt has stolen the property of the creditor. If the debtor is able to pay but conceals his assets, then his clear act of theft is compounded by fraud. But if the defaulting debtor is not able to pay, he has STILL stolen the property of the creditor by not making his agreed-upon delivery of the creditor's property. The function of the legal system should then be to enforce payment upon the debtor through, e.g., forced attachment of the debtor's future income for the debt plus the damages and interest on the continuing debt. Bankruptcy laws, which discharge the debt in defiance of the property rights of the creditor, virtually confer a license to steal upon the debtor. In the pre-modern era, the defaulting debtor was generally treated as a thief and forced to pay as he acquired income. Doubtless, the penalty of imprisonment went far beyond proportional punishment and hence was excessive;" (even when he was a fraudulent debtor and cheated people for millions? - J.Z.) but at least the old legal ways placed responsibility where it belonged: on the debtor to fulfil his contractual obligations and to make the transfer of the property owed to the creditor-owner. One historian of American bankruptcy law, though a  supporter of these laws, has conceded that they trample on the property rights of the creditors." - Murray N. Rothbard, The Ethics of Liberty, 142. - Here is Rothbard at his best, in exposing a wrong. Alas, he does not conclude that the willing debtor ought to be enabled, as far as possible, to clear his debt by clearing, in the interest of the debtor and the creditor alike, even if, for this purpose, he could offer nothing but his own monetised IOU's, based upon his own continued goods and service offers and even if these would suffer a considerable discount, so that he would have to offer correspondingly more of them to make up the total debt, accounted in a sound value standard. - Rothbard would be likely to condemn such issues as mere fraudulent "fiat money" issues, even if such a payment were acceptable to the creditor or to an arbitrator that debtor and creditor had agreed upon. Thus, Rothbard, instead of making debt settlement easier via the right to clear one's debts, would make the debt settlement harder to impossible to achieve, by insisting upon debt payment only in gold metal or 100% gold-metal-covered gold certificates. These the debtors are often unable to obtain at all or in the required quantities and whenever needed and that would apply also to their own debtors. Thus the debt settlement is prevented rather than promoted. (To a large extent the bankruptcy laws were passed in recognition of such facts, such payment difficulties, even for quite honest and efficient debtors. - J.Z., 8.902.) Indeed, Rothbard assumes that, in case of a shortage of gold, all prices, expressed in the exclusive gold currency, would immediately fall correspondingly, so that gold payments would continue to be as easy as before, due to the fallen gold prices. Here he overlooks the often pointed out "stickiness" of prices and wages and the fact that in prior centuries and in some respects even in our century, barter transactions still persisted because gold prices never fell far enough to mediate all exchanges monetarily. Moreover, he overlooked, like most other economists, the different psychological effect of falling prices vs. fallen prices upon potential buyers who do have some money reserves which they do not have to spend immediately to survive. Falling prices discourage buyers. Only fallen prices encourage them. Thus falling prices lead to further falling prices, preventing, for too long a period, the immediate price adaptation that Rothbard expected and predicted. In the meantime, millions of unemployed and tens of thousands of bankrupt employers ask themselves: How did we get into this? Has Rothbard any sound advice to offer to use? All he would tell us is: Reduce your wages and prices further. He wants to confine our exchanges to his favourite exclusive and forced currency, which we are short of, precisely at a time when there is an abundance of real cover: consumer goods and services, including labour, ready for sale, for alternative optional and market-rated currencies of our own, which we might even, to do ourselves and Rothbard a favour, denominate in gold weight units as their value standards and would readily accept as if they were corresponding gold coins. But such self-help steps would be condemned as fraudulent by Rothbard - as an unjustified "expansion of fiat money". - He was a radical and helpful thinker, in many respects, but not in all. Regarding money, he remained a monopolist by prescribing "only gold" (or 100% gold covered certificates) instead of "only government paper money". - In other words, Rothbard's ruling on bankruptcy and on an exclusive gold currency (however competitively supplied), would assure more bankruptcies and would not help debtors and creditors to get the remaining debts settled, unless they can manage to settle them in gold metal or 100% covered gold-metal certificates. - Nor does Rothbard offer clearing as a solution. Mutual debts that can be cancelled, cleared or settled, obviously do not require, for this kind of non-cash payment, any gold coins or gold certificates, except for the balances remaining. And the settlement of these, through clearing, can be postponed, with some interest charge of fee added for make up for the delay. - The clearing might well use a gold weight unit as a standard of value for accounting purposes. But that was not considered by Rothbard or would not have satisfied him. He went on insisting on gold coin or 100% covered gold certificate payments. - Or did I miss some of his writings on this? Did he anywhere concede the possibility of non-cash gold value payments (using all kinds of other means of exchange at their gold weight market rating) in settlement of debts expressed in gold weight units? Sometimes e.g., custom duties were so fixed and so paid. - Did he report any complaints by debtors and creditors about such gold weight unit accounting and clearing and payment transactions that made the means of payment used optional and competitive, as well as market rated? - He fruitfully pondered most aspects of liberty but did not spend sufficient time and thought-energy on this one. - J.Z., 25.4.97, 29.5.11. - Or so I do believe, until the contrary is proven to me. - J.Z., 29.5.11. - BANKRUPTCY RULES: See: FUTURES DEALINGS WITH CASH, CLEARING.

BANKS: A Banker is a fellow who lends his umbrella when the sun is shining and wants it back the minute it begins to rain. - Mark Twain,  1835-1910. - CREDIT OR LOAN POLICY & THEIR DEMAND FOR SECURITY

BANKS: Alternative names: Debt-shops. - Ezra Heywood, Hard Cash, p.7. - How did he manage to overlook them as credit shops? - J.Z., 29.5.11.

BANKS: Apart from the Central Bank all banks are now reduced to being merely dealers in the nationalised exchange medium and its forced paper "standard". Even in these limited dealings they are highly regulated, likewise, in their options to issue and deal with capital securities. They are mere shadows of free banks. But, at the same time, they are privileged banks, insofar as entry into the business of banking is also highly restricted by legislation and governmental compulsory licensing schemes. They and the note acceptors are kept in a monetary kindergarten and thus are kept ignorant and irresponsible in monetary matters. - J. Z., 4.9.86, 29.4.97, 29.5.11.

BANKS: Banks of issue need sense not size, sound issue techniques, not capital, sound value standards, and competition with other banks of issue, not government guaranties, self-management, not government supervision and controls. - J. Z., J. Z., 4.4.89, 16.5.97. - BANKS OF ISSUE, NOTE-ISSUING BANKS: DO THEY NEED CAPITAL? FREE & COMPETITIVE NOTE-ISSUING BANKS

BANKS: Banks today are not free and competitive, private or cooperative enterprises but, largely, from the central bank to the smallest bank branch at the corner, government controlled, regulated and mismanage institutions, even though they remain formally in private hands. Just consider the flood of laws and regulations on them. The "economy" of fascism and totalitarian communism should not be equated with that of a free enterprise and free exchange or a capitalistic or market economy. Nevertheless, for all the mistakes of government banking, currency and credit policies, forced upon all, "capitalism" and the "market economy" and the "profit motive" and "private property" are usually blamed, even in a sphere where they do least of all exist. - J. Z., 28.7.93, 24.5.97, 29.5.11. - INDER MONETARY DESPOTISM. See: CENTRAL BANKING, MONETARY POLICY, CURRENCY POLICY, CREDIT REGULATION.

BANKS: Some banks really lock your money away from you. I noticed in Los Angeles, near Union Station, a branch of the Bank of America. It is only open on 3 week days and then only from 11.30am to 2.30pm, at least that was its schedule indicated on 20 Dec. 1990. And this in a country where many shops, e.g. photocopy shops, are open 24 hours a day! - J. Z., 16.4.97.

BANKS: You may earn the highest bank returns if you can manage to no longer go to the banks or to return to them. - More and more alternative payment methods are coming up. E. g., postal money orders are now sometimes cheaper than bank transfers. They are also not subject to taxes, like your bank deposits. Some traders, advertising on TV, allow you now to pay them through your telephone bills. Cash payments still give you the chance to arrange for discounts in all larger purchases. Unless you can establish your own or freely choose among free banks of issue and investments, you are often advised to avoid them if you want to save money. Alas, they have become paymasters for wages and salaries, which puts all too many funds at their disposal, for which they often pay an interest below the inflation rate. Your money in the bank is no longer safe. To some extent it has become the bank's money - and that of the tax department. Draw your own conclusions from this. Gain your independence from them. Use them only if you must. Safe as a bank has become a misnomer. They do not even guard themselves sufficiently against bank robbers. Nor do they offer you banking secrecy. They report at least to the tax department. - J. Z., 11.11.92, 16.5.97, 29.5.11. - & THEIR FEES & INTEREST PAYMENTS

BARTER: Any money transaction is essentially an anonymous and multilateral barter or clearing transactions, one spanning time and distance, in which goods, services and labour are exchanged for goods, services and labour. - Any attempts to issue monies that are not based on such turnovers are condemned to failures. But debts that are shortly due can keep money issues based upon them at par with their nominal value, so that they, too, are considered as acceptable in payment for daily wanted consumer goods and services. Both, the goods and service cover and the short term debt foundation, do establish a strong demand or "reflux" for the money involved, that keeps it at par with its nominal value expressed in some or the other sound or sound enough value standard. For money issued upon long-term assets there exists no strong enough demand or reflux right away and continuously. It will occur only once that debt or instalments of its repayment are soon due. In the meantime, no supplier of daily wanted goods and services is obliged to accept it, if he has not issued it. - J. Z.,5.12.90, 16.4.97, 29.5.11. - MONEY & CLEARING

BARTER: Only free clearing and full monetary freedom can fully employ all people willing to work, at their highest capacity and skills and can make them prosperous and independent. - J. Z., 27.7.83, 17.4.97. - IS NO SUBSTITUTE FOR FREE CLEARING & FREE MONETARY EXCHANGES

BAUMAN, BOB, Your Privacy again in danger: FATF Strikes Again. - July 18, 2003. - by Bob Bauman. - "Sovereign Society suggests a way to counter FATF and protect your financial privacy." - Roy Halliday, in section on Government-Regulated Banking. - The correct German name was, probably Baumann - but he or his German ancestors may have changed it. - J.Z.

BECK, WILLIAM, Mr. Beck thought out a Mutual Bank by generalizing credit in account; Proudhon, by generalizing the bill of exchange.” –59. – Greene quotes Beck on p.61: “… as the progress of money lies in a circular route, a certain system of account may be made to supply its place, where its track and extent can, in that circle, be included and distinguished. By a circle, I mean that range of society which includes the whole circulation of money, with the accompanying causes and effects of its progress; namely, claims, debts, and payments; so that, if we wish to trace its path, every point of that path will be contained within it. SUCH IS THE GREAT CIRCLE OF SOCIETY. This contains the whole body of debtors and the whole body of creditors. It contains all the debtors to the creditors, and all the creditors to the debtors… “ - Source?

BECKERATH, ULRICH von, 1882 -1969. See: ACADEMIC WRITINGS ON MONETARY FREEDOM IN RECENT YEARS. See also his numerous writings, listed in my main website: (Which is officially discontinued but somehow kept alive by my service provider, after I subscribed to broadband, and lost, thereby, my 5 Mbs. website entitlement with him. Many of his writings are also offered on - J.Z., 29.5.11. - See also: GERMAN SCHOOL ON MONEY. & the main literature list of LMP on From ca. 1913 onwards, possibly already from 1908, he has, more thoroughly than anyone else that I ever heard of, knew or read about, explored and described the monetary freedom options. Alas, most of his correspondence before 1943 has been lost with his library in an air raid on Berlin. Recipients of his letters and papers from before that time, who preserved them, should make themselves known to me. I would like to digitize the wealth of ideas, facts and arguments in his whole correspondence, to the extent that it becomes available to me. - J. Z., 9.4.97, 29.5.11.

BECKERATH, ULRICH von, Aphorisms on the money problem, 1932, in BANKWISSENSCHAFT. Also in PEACE PLANS 587/588. - His three classical monetary freedom books are online at

BECKERATH, ULRICH von, See: ECONOMIC & HUMAN RIGHTS ASPECTS IGNORED BY MOST MODERN AUTHORS. - A long draft of his on monetary rights and liberties is contained in my digitized anthology of private human rights drafts in PEACE PLANS 589/590. - J.Z.

BELIEF SYSTEMS ON MONEY: There are thousands of different articles of faith and prejudice and unfounded assumptions and assertions, fallacies and false arguments on money. Most are as false or misleading as the religious ones are. Only a systematic and an alphabetical register of all of them, together with their best refutations, so far offered, could show us the ways out of this labyrinth or avalanche. So far it has not yet been compiled and all too few people have shown any interest in such a project. - J. Z., 18.7.96, 20.3.97. 29.5.11.

BERWICK, JEFF: Ben Bernanke and The Confidence Men | Jeff Berwick | - - Cached - 9 Feb 2011 – A free market economy, with a free market money (gold, most likely), would not need confidence to run effectively. ... - No exclusive and forced exchange medium and value standard deserves our confidence or trust but, rather, our suspicion and our rejection. Only fools would choose such "fool's gold". - J.Z., 24.7.11. - CONFIDENCE, TRUST

BERWICK, JEFF, CNBC Clueless About Gold | Jeff Berwick | - - Cached - 23 Mar 2011 – The US dollar and US Treasuries are a Ponzi scheme. Gold? That's free market money ... you don't even recognize it anymore do you, John? ... - From my point of view, most "gold bugs" are still clueless about the alternatives to "the" classical gold standard, in spite of all its remaining flaws and wrongs, e.g. 1.) as an exclusive exchange medium, 2.) an exclusive value standard, 3.) an exchange medium compulsorily redeemable in its value standard and 4.) also given the legal tender power of compulsory acceptance. - It only does not have the second part of legal tender, namely a forced value. Freedom to clear or account in gold-weight values, without gold-cover, redemption and payment in gold coins obligation, would provide all the economic advantages of the old gold standard as a value standard and this without its remaining hang-ups or disadvantages. Gold bugs seem to be better, mostly, in distinguishing between e.g. the qualities of different wines, beers and sportsmen than between different kinds of gold standards. I don't know why, seeing how much they value "the" gold standard. - J.Z., 26.7.11.

BERWICK, JEFF: Kitco - Commentaries - Jeff Berwick - - Cached - 18 Nov 2010 – ... being an integral part of a money system in order to restrain governments, Warren has long been against any form of free market money. ...

BIBLIOGRAPHY OF MONETARY FREEDOM WRITINGS. Draft in PP 1022. Ask for further contributions and translations. Ask for permissions to reproduce still copyrighted material at least on microfiche, floppy disks and CD-ROMs and websites. A much later and enlarge free banking bibliography of mine, but still very incomplete and flawed, is now offered on - FB BIBLIOGRAPHY: Antoine Clarke, The Micropolitics of Free Market Money: A ... which contains a useful Free Market Money bibliography. - Note under N. Elliott, The Uses and Abuses of …- See also my own bibliographical compilation at - J.Z., 25.7.11.

BILL DISCOUNT WITH BANKNOTES: A commercial bank that issues paper money ought as such be a mere clearing-house for legitimate business paper running to maturity.” - William B. Greene, in: “… Fragments, p.271. – BANKING PRINCIPLE, CLEARING, BANKNOTES, DISCOUNTING OR SOUND COMMERCIAL BILLS, REAL BILLS DOCTRINE, BANKING PRINCIPLE, BANKS OF ISSUE, NOTE-ISSUING BANKS, REDEMPTIONISM?

BILL DISCOUNT WITH BANKNOTES: For a long time the payment of sound commercial bills, was ultimately enforceable in gold or silver coins, although, in most cases they were rather settled by clearing or payment in bank notes for which they had become the common basis for note issues. Banknotes, under the real bills doctrine or banking principle are nothing but cut-up sound commercial bills, in standardized, easily recognizable and convenient denominations, that can circulate easier than the commercial bills themselves (which are largely acceptable only among merchants and bankers) and these small and even bills, in convenient denominations, are finally used to redeem them. For all too long it was ignored that the right of creditors to have commercial bills redeemed in gold is quite unnecessary to preserve their value and that of the bank notes issued upon them. Their redeemability in banknotes and the short term debts that are involved, are quite sufficient to assure a corresponding reflux of banknotes from the short term debtors of the commercial bills. The bills were usually issued by wholesalers to employers, their suppliers, in payment for goods already produced and sold to them and on the road to the retailers. The employers, paid by the wholesalers with commercial bills, got these bills discounted into banknotes at a note-issuing bank. With these notes they paid their workers, suppliers and profits and then the notes streamed to the shops for goods and services and from them to their suppliers, largely the wholesalers, who redeemed their bills with the notes thus received. The whole is easier to describe and comprehend graphically, than in words. I have done that in PEACE PLANS 41 and later digitized these circulation charts. Still better charts of this payment circle would be welcomed by me. The right of creditors to demand payment in rare metals or rare legal tender paper money has done much more harm than good and has only secured recurrent payment crises. That right should be confined to quite optional contracts and even then, seeing that dealings in futures and their risks are involved, withdrawal premiums for the withdrawal from such obligations should also be agreed upon. Only then will the risk of such claims be reduced to acceptable proportions. It this risk remains quite unrestricted by withdrawal premiums and competition from suppliers of alternative exchange media and value standards, and only then it can lead to the rapid and prolonged collapse of the non-cash transactions, all dependent upon a minimum but quite regular and always available supply of cash. If cash supply sinks below this minimum, then numerous non-cash transactions are no longer possible and lead thus to a much larger demand for cash and this precisely when cash is already in short supply. Then some cash can only be attained by postponing the payment of bills and by dismissing workers and by ruthlessly collecting debts, payable in cash, even if that leads to the bankruptcy of the debtors and to emergency sales prices. Only the quite competitive supply of cash, in all its possible and desired forms, can prevent and end such money shortages, which, by the way, do also lead to a collapse of the prices of capital securities because fewer shares etc. are bought and enterprises that can no longer easily sell their goods and services are reduced in their market values and cannot pay dividends or interest or only much less. Thus the right to demand rare metals or other exclusive currency from a debtor must be replaced, in the general economy (apart from some payment communities which religiously adhere to the cash payment obligation voluntarily, at their own risk and expense), by the right to demand clearing, in stated value standards, but accepting any kind of usable exchange medium or clearing certificate - but only at its market rated value expressed in the agreed upon value standard. To my knowledge Ulrich von Beckerath, 1882-1969, was the only economist and writer who clearly saw and described this problem and its solution. If you know of others and their writings, please let me know about them. - J.Z., 27.9.02, 30.5.11. - SOUND COMMERCIAL BILLS VS. UNSOUND "FINANCIAL" BILLS, REAL BILLS DOCTRINE, BANKING PRINCIPLE, CIRCULATION CIRCLES, LEGAL & JURIDICAL "RIGHT" OF CREDITORS TO DEMAND PAYMENT IN RARE METALS OR OTHER LEGAL TENDER CASH, BANKING PRINCIPLE

BITCOINS: 5 notes - Bitcoin Money - - Cached - ... has decided Bitcoins do have value and can be used as a trade facilitator because of the properties they have; therefore, they are free market money. ...

BITCOINS: A Response to “Bogus” David Kramer « Mises on … Bitcoin? - By Steve Oblevo. - - Cached - 13 Jun 2011 – ... lead me to believe you are a Gold Bug above being an austro-libertarian. You would rather have a “gold standard” than free market money. ... - Downloaded for JZL. - FREE MARKET MONEY, AUSTRIAN SCHOOL

BITCOINS: Austrian Economics | Careful Cash - - Cached - 21 Jun 2011 – Nonetheless, Bitcoin is free-market money. Quality isn't a prerequisite of freedom; it is simply the outcome of competition. ...

BITCOINS: BitCoin – The true free market money | Bankowski Blog - - Cached - 2 Jun 2011 – BitCoin – The true free market money. BitCoin Logotype. View This Poll - online survey. If you own BitCoins or know what it is you probably ...

BITCOINS: bitcoin | Tumblr - - Cached - ... has decided Bitcoins do have value and can be used as a trade facilitator because of the properties they have; therefore, they are free market money. ...

BITCOINS: BitCoin and free market efficiency | Bankowski Blog - - Cached - 20 Jun 2011 – BitCoin and free market efficiency - BitCoinThe true free market money - Support levels for silver · Competitor for COMEX this May ...

BITCOINS: Bitcoin and the Denationalisation of Money - Thrica - Cached - 8 Jun 2011 – First, let's look at the main schools of Austrian thought as to what free-market money would look like: Rothbard: 100% reserve specie-backed ...

BITCOINS: Bitcoin Crash | Careful Cash - - Cached - 21 Jun 2011 – Nonetheless, Bitcoin is free-market money. Quality isn't a prerequisite of freedom; it is simply the outcome of competition. ...

BITCOINS: Bitcoin: An Innovative Alternative Digital Currency | Alan's Money ... - - Cached - 5 May 2011 – Bitcoins are instead free-market money because PEOPLE choose to value them and to make use of them as a medium of exchange. ...

BITCOINS: Bitcoin: is a free market currency, Libertarian Goldbugs Hating On Bitcoin - Free Market Money. - Bitcoins Are a Free Market Money « Blog Post « Rex Pioneers - - Cached - 30 Jun 2011 – Com ™:: Bitcoin Bitcoin: The Ultimate Free ...

BITCOINS: Bitcoins - An Unusable Ideal? - - Cached - 7 Jul 2011 – Bitcoin is free-market money. Since there are few practical reasons to use Bitcoin, the supporters grab onto the idea that it's free-market ...

BITCOINS:Bitcoins Are a Free Market Money – 2 « Blog - - Cached - 29 Jun 2011 – Bitcoins Are a Free Market Money – 2. Posted by Michael S. Rozeff on June 29, 2011 08:27 AM. I deeply appreciate receiving the following ...

BITCOINS: Bitcoins Are a Free Market Money « Blog Post « Rex Pioneers - - Cached - 30 Jun 2011 – bitcoin-225.png BitCoin – The true free market money | Bankowski Blog I AM IN DEMAND.Com ™: Bitcoin: is a free market currency, ...

BITCOINS: Bitcoins Are a Free Market Money « Blog - - Cached - 29 Jun 2011 – It's obvious that they are a free market money because people are using them as such. There have been a large number of free market monies ...

BITCOINS: Bitcoins V Gold | Careful Cash - - Cached - 21 Jun 2011 – Nonetheless, Bitcoin is free-market money. Quality isn't a prerequisite of freedom; it is simply the outcome of competition. ...

BITCOINS: Bitcoins. I'm trying to make sense of what this is. 1. They are an entirely electronic form of currency, perhaps even money (commodity). 2. Each "coin" is an electronic file (data), which requires the cost of a processor and the electricity to run the "mining" process to create. 3. Each "coin" is anonymous, like real coins, in that the owner cannot be connected to the coin. 4. It is a medium of exchange, both for products directly, but also in a market of other currencies. ( 5. For a new currency (Jan 2011), it has a surprising number of businesses that will accept it. ( - - On the down side, because it is entirely electronic, a hard-drive crash could potentially wipe you out. On the other hand, being part of a P2P network may remove that hazard to some (unknown) extent. - Tere is more to this concept that I do NOT understand that that I DO, but there seems to be something here worth tracking. At this point, it's greatest value seems to be exactly what the Federal Reserve (and other central banks) most fear -- a free-market alternative to their fiat currencies. - Dwight Johnson in email of 3.6.11. - - Sounds like a replacement for, not improvement on, what fiat money is now. The only difference seems to be who issues these credits. Did anyone find a solid benchmark basis for this currency? I'm with Michael on this one - silver, gold, rare minerals/gems have historically proved a 'no B$' - one-either-has-IT-or-not basis to help mankind keep the tool that is money a functional value. The old saying - If it seems to good to be true, it probably is. - rings my bell on this one. - Jain Daugh, in email of 3.6.11. - - Never heard of it, - Dwight. - - After 5 minutes of reading about it, and still not grasping its origination with any clarity, I concluded this -- that it's a novelty that won't last. It's a limited supply of NOTHING, and so its only value is in the demand and acceptance. But since others can create similar amounts of NOTHING for almost no cost, bitcoins will never rise much above their humble origins as novelties for use only among a small clique of users. And so I expect them to die out after the novelty wears off. I'd rather have silver myself. - Michael S. Rozeff, in email of 3.6.11. - - Dear Michael, et al, Or any other exchange medium that is sound enough and has local "shop foundation". We should certainly not become confined again to exchanging ONLY via gold or silver coins and gold- or silver certificates. There were never enough of them to fully introduce monetary economics everywhere. - J.Z., in email 3.6.11. - - Dear Dwight, I have read a bit about it but would, at this stage, no more trust it than any other underground digital currency, no matter how secure it is, supposedly, according to its promoters. Especially when it also deals with drug money, possibly money laundering as well. And when people try to invest safe from the taxers. Then you can bet on the State hiring the best code crackers, as they did, e.g. during WWII and such codes will sooner or later be cracked. Pure cash deals are, probably, safer still in most instances, in spite of them involving one or the other kind of inflated legal tender state paper money - but they are also risking confiscation by police, e.g. under forfeiture laws. Already years ago I read about a technology that, placed in a van, not far from you, could record every keystroke that you make on your computer. With the aid of such technology any code used could probably, be decoded rather fast, for it has to be used by the participants and they have to become informed about it. - While legalized criminals are still everywhere territorially all too much in charge, no one and nothing is quire safe from them. - J.Z., 3.6.11 - free banking commented on their own link. - How Private Are Bitcoin Transactions?  - - Are Bitcoin transactions really private? In an age of ubiquitous government surveillance and corporate information collection, the peer-to-peer currency's boosters tout privacy as a major benefit. I'm not convinced. Bitcoin's peer-to-peer method for clearing payments means that the currency's "books

BITCOINS: Could The State Exist If Property Rights Were Impossible To ... - - Cached - 7 posts - 5 authors - Last post:2 days ago. - Libertarian Goldbugs Hating On Bitcoin – Free Market Money The Economics Of Bitcoin – Why Mainstream Economists ...

BITCOINS:;topic=12895.0 - Cached - Print Page - Free Talk Live - 7 Jun 2011If anyone deserves free market money, it's FTL (and the Free State Project of course) Heard about the FSP from you, and about Bitcoin from ...

BITCOINS: Grim Decade for Employment Ahead | - - Cached - 21 Jun 2011Is it free-market money or not? This seems like an important issue, as everyone who has tried to sell me on the idea of Bitcoin has boasted ...

BITCOINS: Libertarian Goldbugs Hating On Bitcoin - Free Market Money : Bitcoin - - Cached - 6 Jun 2011 – Libertarian Goldbugs Hating On Bitcoin - Free Market Money ( submitted 6 days ago by michaelsuede ...

BITCOINS: Libertarian Goldbugs Hating On Bitcoin – Free Market Money | Ron ... - › ForumsDaily Paul Liberty Forum - Cached - 7 Jun 2011The article gets into what makes money a money, and why Bitcoins meet all the criteria of a free market money according to Austrian theory. ... - Libertarian Goldbugs Hating On Bitcoin – Free Market Money ... -  - Cached - 6 Jun 2011 – Let me start off by giving you a little background as to my knowledge on the subject of monetary theory. As you can see in the header bar of ...

BITCOINS: Libertarian Goldbugs Hating On Bitcoin – Free Market Money ... - - Cached - Libertarian Goldbugs Hating On Bitcoin – Free Market Money. Posted by CoinBits on Jun 7, 2011 in News Bits | 0 comments. line. submitted by michaelsuede ...

BITCOINS: LRC Schizophrenia over Bitcoin « Tom Luongo: The Present in Plain Text - - Cached - 29 Jun 2011It's obvious that they are a free market money because people are using them as such. There have been a large number of free market monies ... - But their issuers and their acceptors were not, as yet, ever quite free enough. - J.Z., 26.7.11.

BITCOINS: Mises on … Bitcoin? - - Cached - 13 Jun 2011You would rather have a “gold standard” than free market money. ... believe in free-market money had very bad things to say about bitcoin. ...

BITCOINS: MtGox | Careful Cash -  - Cached - 21 Jun 2011Nonetheless, Bitcoin is free-market money. Quality isn't a prerequisite of freedom; it is simply the outcome of competition. ... - FREE MARKET MONEY, MONETARY FREEDOM, FREE BANKING, EXPERIMENTAL FREEDOM, MONETARY TOLERANCE, MARKET RATING OF ALTERNATIVE MONIES & VALUE STANDARDS.

BITCOINS: Print Page - The Core Assumption of the Bitcoin Community;topic=1508.0 - Cached - 19 Oct 2010Though, I believed that money (*) are indeed a form of positive social order, particularly free market money. Silent Truth or Silent Assumption? ... (*) monetary exchanges? - J.Z.

BITCOINS: Print Page - what's your stop loss -;topic=26003.0 - Cached - 4 Jul 2011I'm buying them because I believe in the concept, and in the market need for frictionless free-market money. I have no idea what the right ...

BITCOINS: Releasing the U.S. Oil Reserves | - - Cached - 27 Jun 2011Bitcoin is free-market money. Since there are few practical reasons ... If I want to invest in free-market money, I can buy gold and silver ...

BITCOINS: The Economics Of Bitcoin – Challenging Mises' Regression Theorem ... - - Cached - 7 Jul 2011I can demonstrate that a free market money exists which has absolutely no ... Libertarian Goldbugs Hating On Bitcoin – Free Market Money ...

BITCOINS: The Economics Of Bitcoin – How Bitcoins Act As Money | Libertarian ... - - Cached - 18 Jun 2011 – ... paper: “… if honest nodes control a majority of CPU power.” Tourist. OK Bitcoins as good as free market money so likewise can be stolen: ...

BITCOINS: Twitter / Bitcoin: Libertarian Goldbugs Hatin ... - - Cached - Libertarian Goldbugs Hating On Bitcoin – Free Market Money ...: Let me start off by giving you a little... #bitcoin .

BK FORUM: BK Forums: Free Market, money out of no where. - › ... › Science, Humanities and Politics - Cached - 33 posts - 10 authors - Last post: 10 Dec 2010. - Online community with a focus demographic of young Newfoundlanders.

BKMARCUS.COM: 2006 May 04 « - - Cached - 4 May 2006 – ... established the word and the symbol as designations for free-market money. At least, that's my current, somewhat informed opinion. ...

BKMARCUS.COM: on goldbugs and free-market money « - - Cached - 2 Jul 2005 – They are not advocating free-market money: they are advocating a central plan based on gold. The political goldbugs and the anti-political ... - This one sounds promising to me. - J.Z., 23.7.11.

BLOCK, WALTER, Building Blocks for a Libertarian Society, Critical Essays by Walter Block, a book offered by the Mises Institute, contains under 22 a chapter entitled: Voluntary Taxes: Abusive Language and Politicians. - Alas, so far the book is only offered in print, presently at a special US $ 19 price. Item 88542. - J.Z., 4.8.11. Gold is Free Market Money | Walter Block‏ - YouTube - - 7 min - 18 Nov 2008 - Uploaded by misesmedia - Recorded at the Mises Institute Supporters Summit, 1 November 2008; Auburn, Alabama. Walter Block is a professor and chair of economics, ... Cached - - More videos for "free market money" » - Gold is Free Market Money | Walter Block | Cash Gifting Experience - - Cached 23 Apr 2011. - The Bubble Goes Bang: Gold is Free Market Money - - Cached 15 Apr 2009. - Video About Gold is Free Market Money | Walter Block .... - (4th. entry on the same speech! - J.Z., 21.7.11.)

BLOCK, WALTER, Radical Privatization of the Gold Standard: A Critique of Friedman ... - - File Format: PDF/Adobe Acrobat - Quick View - by W Block - Cited by 3 - Related articles - by this term than "free market money." The proof of this is in his warm embrace of any other metal (or commodity) which comes to be used as the money medium ...

BLOCK, WALTER, The Gold Standard Revisited - Download free content from Mises ... - - Cached - Gold is Free Market Money, Gold is Free Market Money Walter Block The Gold Standard Revisited, 11/4/08, Free, View In iTunes ... - BLOCK, WALTER, The Gold Standard Revisited, 4 11 08, The Gold Standard Revisited - Download free content from Mises ... - - Cached - View In iTunes ... - - BLOCK, WALTER: The Gold Standard Revisited, Walter Block - Gold Is Free Market Money: Free MP3 Download - - free mp3 download, The Gold Standard Revisited, mp3, mp3s, free, mp3 download, mp3 download, free Mp3 downloads, mp3 music download, music search, ...

BLOCK, WALTER: Gold is Free Market Money | Walter Block | Аднавіць страчаныя грошы -  - [ Translate this page ] - - Cached - 17 Крс 2011 – Check book money is free market money if it is anything at all, ... “Gold is Free Market Money” – Ды – BUT (And I'm asking not declaring) ...

BLOCK, WALTER: Walter Block: Mises Institute Lectures by Walter Block on Audio ... - - Cached - Gold is Free Market Money Walter Block Tue, Nov 04, 2008. Recorded at the Mises Institute Supporters Summit, 1 November 2008; Auburn, Alabama. ... - Is it the ONLY free-market money? All too many gold-bugs have fallen for that myth. - J.Z., 24.7.11.

BLOCK, WALTER, Walter Block versus Bryan Caplan on Fractional Reserve Banking - "The present debate got started when I read that Caplan had characterized Rothbard’s position on fractional reserve banking (frb) as "crazy." Further adding insult to injury, he denotes this position as too easy of a target to hit out against. Now, I suppose, I think of Milton Friedman roughly in the way that Caplan regards Rothbard. Yet, I never characterized Friedman’s views as "crazy" nor as a "too easy" target. That really got in my craw, and led me to write to Caplan." - Roy Halliday

BLACK LABOUR OR BLACK MARKET LABOUR: In Freiburg, Breisgau, on 4 March 93, I saw the van of a painter with the inscription: "Ohne Schwarzarbeit mehr Arbeitsplaetze." (Without black labour more jobs.) - Presumably, this professional painter would object against you yourself painting your own house, inside or outside, or getting your friends or family members to do so. Certainly he is opposed to untaxed underground contractors and does not like to take up such opportunities himself, although in his job it would be easier than in most others. He seems to count as productive labour only his own professional work. - Nor does he mention that largely rightful tax evasion and evasion of excessively high social security and accident levies are involved. Just because he is heavily taxed, he wants others to be taxed, too. Just because he loves bureaucratic interventionism, he would like others to be so enslaved likewise. He would count only officially created or recognized jobs as jobs, not private ones. Presumably, according to him, once all of us would be in untaxed and unregulated black market jobs, trading on the black market, we would all having no jobs at all. He did not only put his foot into his mouth, but, as a painter, on his van - was sure to find many other fools to support him. - J. Z., 24.5.97, 30.5.11.

BLACK MARKET PRIVATE CURRENCY ISSUES: To what extent are they possible? - Already now, sometimes and unofficially, other national currencies are substituting largely for inflated national currencies, e.g. the U.S. dollar internationally and the German DM in some European countries suffering more than Germany under inflation. - Full exploration of the extent to which the black market might make possible not only barter and some limited monetary exchanges (using the money of monetary despotism, or foreign exchange, or gold or silver coins and bullion) but, instead, at least some kinds of monetary freedom and free clearing exchanges that could, potentially, become so extensive that they could introduce a free market, for the first time, a fully free market. LETS founder Michael Linton believes his system to be capable of this. I don't. - He seemed more reasonable in his papers than in person and in his talk, although he is a smooth and popular speaker. - J. Z., 7.4.97. - To my knowledge, e.g. LETS has only made some extra garage-sale types of sales possible but not the payment of many wages and salaries and their ordinary consumer spending. - J.Z., 30.5.11.

BLUMEN, ROBERT, US To Return to Gold Standard. Really? - July 15, 2011. - "For adherents to Murray Rothbard’s theory of banking, the gold standard means gold as money proper with banks holding 100% reserves against demand deposits. Under these conditions there is no necessity or even any purpose to having a central bank and devaluation is a form of default." - Roy Halliday, in section on gold.

BONUS PAYMENTS: Issue the next Christmas bonus or extra salary payment or salary increase to employees in the own store currency or in the store currency of many or all employers doing the same. Employers would benefit by paying this expense in their goods and services - instead of having to sell these first for scarce legal tender notes. Knowing this, they might even be willing to pay a higher gratuity of this type in this form. - A fringe benefit would be that both, employers and employees, would become accustomed to dealing in private notes. - A single issue of that type, existing only temporarily, might altogether escape the notice of the authorities and thus legal prosecution. If not, then it would greatly reduce the penalties involved. - When an association of shops issued this temporary shop currency, the individual shop would receive the notes as a loan, to be repaid in goods warrants or in cash - in case, by chance or by insufficient competitiveness, one employer would not receive sufficient of these goods warrants back to repay this debt with them. - The same could be done for demanded wage increases, which they employer could not afford to pay in legal tender but could well afford in his own shop foundation money. The wage increase to the builders of Roseland's Shopping Centre, in 1964 (in Sydney, then the largest shopping centre in the southern hemisphere), was a precedent for this. This made possible the completion of the building in time, and a corresponding additional cash flow from its opening day on. Since this agreement with the unions broke a number of laws - by doing the morally and economically right thing, the case was hushed up. - Such issues might be considered as a pilot project for a monetary revolution, one to stop unemployment and end inflation - by paying all wages, salaries and profits and other expenses in shop currencies and by using a better or several better standards than the government's paper value standard in the shop currency and to express all prices, wages and salaries and other debts. - In Australia, at least for a number of years, shop currencies were extensively utilized in consumer credits - but, ultimately, repayable in the government's legal tender monopoly money. - J. Z., 1985 & 21.5.97, 30.5.11. - & WAGE & SALARY INCREASES IN THE MONIES OF MONETARY FREEDOM, SHOP CURRENCIES, AS INTRODUCTORY STEPS TOWARDS FULL MONETARY FREEDOM

BOOK MONEY: - The price effects of cash increases becomes multiplied through book money that is nominally based upon the increased cash. - As a rule everything and everybody gets blamed for inflation - with the exception of the real culprits, the central banks, their money monopoly and the legal tender legislation. - If "creative" book keeping could make the bookkeepers rich then everybody would want to become a bookkeeper and banker. Why work at all, if values can thus be merely created on paper? - We could then become a nation of book keepers and bankers. Why bother then to produce anything. We could all live on consuming our multiplied book values. - The same illusion is involved as is involved in the mere printing of paper money. Now we can express money values electronically and computers could multiply electronic symbols endlessly, without limits. But could they "create" a single cent of additional purchasing power for anybody, through electronic fiat or unilateral action or declaration, not based on any goods or services offered, ready for sale, without depriving anyone else of that one cent or without arranging a fair trade that is of mutual benefit to all the parties involved? -  J. Z., 2.4.97. - MONEY CIRCULATION, QUANTITY THEORY & INFLATION, CREATION OF MONEY & CREDIT, DEPOSIT INFLATION, MONEY CIRCULATION, VOLUME OF MONEY.

BOOK MONEY: By means of bank or book money or credit or deposit accounts all cash can be multiplied up to tenfold by all banks. - Pop opinion. - Wouldn't the banks love that? Under competition they should then be able to pay their depositors much more or charge their debtors much less. But do they? - Is there no accountant left in the world who is able and willing to point out delusions or errors on these supposedly freely "created" super-profits? How can any rich people be prevented from becoming such bankers and as easily multiplying their riches? - J. Z., 28.3.97. - I hold that the phenomena of free clearing and of non-cash transactions are mixed up in many minds with increases in the amounts of physical exchange media. Clearing and non-cash transactions do not multiply exchange media but exchange transactions and permit us to manage with a much smaller cash circulation than would otherwise be the case. - J.Z., 30.5.11. - CREDIT MONEY & CASH See: CREDIT CREATION, MONEY CREATION, DEPOSIT INFLATION, DIS.

BOOKS WANTED LIST: Seeing that free banking titles are rare and mostly out of print and not yet reproduced in cheap alternative media, a wanted list for such titles should, perhaps, be added to a Free Banking bibliography. It might lead to more digitizations of such texts and, finally, to their offer on a single large disc. - J.Z., 30.5.11.

BRANCH BANK CLOSURES: Let the major banks close as many local branches as they like, in their cost-cutting attempts, but do allow the local people to establish not only their own local savings, current account, deposit and clearing banks but also note-issuing banks, quite free from Local Government, State and Federal Government legislation, regulation and jurisdiction. This would mean an end to depressions, mass unemployment and inflation in all the localities where this self-help freedom would be practised. - J. Z., 8.11.96, 19.3.97.

BRAY, JOHN FRANCIS, Labour's Wrongs & Labour's Remedy, Leeds, 1838, also advocated a particular kind of labour exchange, one different from that of Robert Owen. Further details are wanted and the whole book for digitizing. - J. Z., 20.3.97. (I may not yet have included all such hints in my Free Banking bibliography on - J.Z., 30.4.11.

BRECKENRIDGE, R. M., The Canadian Banking System, 1871-1890, N.Y., MacMillan, 1895, defended the right to issue as the common right of all. - According to Wells/Scruggs, Towards Free Banking, p.1. - Westrup may also refer to him. Alas, I have not yet been able to obtain this book by Breckenridge for microfiching or digitizing in my monetary freedom series. - J. Z., 26.4.97, 30.4.11.

BROGDON, W. J., Jr., A Private-Enterprise Gold Standard? - August 1997. - "With all the debate about establishing a gold standard and multinational fiat money, why can’t businesses simply quote the prices of their products in gold? Why indeed can’t they establish a de facto gold standard? One tiny company is betting that it can be a start." - Roy Halliday, in section on gold.

BRONFENBRENNER, MARTIN, The Currency-Choice Defence. I have got myself a copy of this article from CHALLENGE, Jan/Feb. 1980, pp.31-36 and fiched it in PEACE PLANS 803. Already its sub-title seems to contain a disastrous misconception or wrong definition: "If any means of exchange, not only dollars, were considered as legal tender, the market would be left free to provide for monetary stability." - It is, actually, one of the main objections against free banking that, if everybody were free to issue money (and here, usually, legal tender is presumed), then everybody could cause an inflation. This is quite true. However, B. probably meant here merely the lawyer's excuse for legal tender, namely, that your are legally entitled to offer it in payment but not, necessarily, that the other party is obliged to accept it at all or at face value. In most cases, this harmless sounding term is interpreted quite differently by legislators and courts, e.g.: "Mark equals Mark", no matter how depreciated it becomes, $ equals $, even when its value is down to cents and mere paper currency, by government fiat, is declared to be the equivalent of gold-certificates. The worst interpretation and most wide-spread practice is: monopoly money with compulsory acceptance and a forced and fictitious value. As such it is the precondition for inflation, deflation and stagflation. Alas, only very few textbooks see it as such. How many more monetary catastrophes are required before enough people begin to realise the nature and effect of legal tender legislation and jurisdiction? - J. Z., in a note for MFNL, & 30.5.97, 30.5.11.

BROWN, PAMELA J., Constitution or Competition. Alternative Views on Monetary Reform, a bibliographical essay, in LITERATURE OF FREEDOM, Autumn 1882.Brown, Constitution or Competition? Alternative Views on Monetary ... - - Cached - - Brown, Constitution or Competition? Alternative Views on Monetary ... - - Cached - C. A Free Market Money System: The Competing Currencies Alternative. B.43. For decades, programs for a rule-restrained government monopoly had no serious ... - Constitution or Competition? Alternative Views on Monetary Reform - "Money, for practically as long as it has existed, has been employed to realize two fundamentally different sorts of goals: production or plunder. In a market economy, private individuals routinely use monetary institutions in a cooperative way to achieve voluntary exchanges of goods and services. Political authorities, by contrast, use monetary institutions in a non-cooperative way to achieve involuntary transfers of wealth." - Roy Halliday, in section on Counterfeit Money.

BUCK PASSING & THE BUCK STOPS HERE: These terms could acquire a completely new meaning if applied to monetary freedom. Those who have realized the importance of their monetary independence might say, to those who offered them the monies of monetary despotism: Your buck stops here: It cannot buy anything from me. I refuse to accept it in payment. But I have assumed the responsibility to produce and offer my own means of exchange with a sound value standard and am prepared, on that basis, to engage in honest trading with anyone at any time. (They could and should issue their own "bucks", based upon their readiness to supply wanted labour, services and goods for them, and these bucks would then stream back to them in payment, i.e., their own bucks would stop there, where they started from. - J. Z., 10.9.02, 30.5.11.) - They would no longer pass on the buck of the responsibility to the government (and its central banking system) to supply them with sufficient sound exchange media and with sound value standards (or welfare hand-outs at the expense of the tax payers). They could and should thus opt out of the government's "war against the poor". They would rather supply themselves with productive work and trade opportunities by their own independent monetary and financial efforts. From hand-out recipients they could turn into free people paying for their wants and needs with their own currency, redeemed by their own ready for sale goods, services and labour efforts. - J. Z., 27.5.97, 10.9.02, 30.5.11.

BUDGET: A balanced budget would stop inflation. - A popular opinion. - But what would stop inflation if no government were willing to balance its budget? As experience teaches us, this is mostly the case. Either it increases taxes or forced loans at the expense of future tax payers or it taxes us via inflation. It has the powers to inflate, in legal tender and the issue monopoly and will sooner or later and most of the times abuse them. A shortfall in its budget is no more than a motive. It does not give it the weapon to inflate a currency. If you have a shortfall in your budget then you cannot cause an inflation because you cannot turn your IOUs into legal tender and an exclusive currency. Honest or moral minds would not engage in crimes. Honest and moral governments would not engage in inflation. But then who has reasons to think that governments are honest and moral as a rule? So, should we grant them any means to engage in an inflation while refusing to ourselves the monetary rights and liberties to end or prevent one any inflation, also any deflation or stagflation? - J.Z., 28.3.97, 30.5.11. - The "balanced" budget of most governments today includes the degree of "deficit financing" or inflation that they planned for! - If it is balanced through government borrowing, then this means that the government has further extended "investments" in tax slaves. - J.Z., 30.8.02. - BALANCED & INFLATION

BUDGETS: Government budgets indicate the way governments are going to spend YOUR money, not THEIR money and also by how much they are going to Inflate The Currency EVEN FURTHER, INCREASE YOUR TAX BURDEN, even more so and PUT YOU IN DEBT, to an even greater extent and against your will. Then they do have the cheek to ask you to praise them for this and to vote for them. - J. Z., 18.9.92, 1.5.97. - OF GOVERNMENTS & THEIR BUDGET POLICIES

BUDGETS: Once can restrain an inflationary trend by introducing a supplementary budget which brings increased taxes. - Popular opinion. To the extent that it would introduce whatever is sound in tax foundation, this might be achievable for the government's paper money circulation. But for all other spheres, into which legal tender and monopoly currency is forced, it is wrong. To the extent that all free and competitive money issues are suppressed and coercively replaced by government paper money, these spheres are already inflated by that paper money. They would accept tax foundation money only to the extent that they needed it for the payment of these tributes. Any excess beyond that is already forced into it because people do need some money, and thus do have to accept it, and this at par and are not allowed to replace it, discount it or reject it. How much government money could circulate under free market conditions, without the issue monopoly, without legal tender and without taxation and by governments without a territorial monopoly? Only voluntary contribution and subscription monies issued by voluntary and only exterritorially autonomous communities could then remain in the sphere of the former governmental forced currency. They would be in free competition with all privately or cooperatively issued alternative currencies and their territorial institutions or empires. - J. Z., 6.4.97, 30.5.11. - Even when annual budgets are replaced by bi-annual or quarterly budgets, monetary despotism would remain, with its inflationary, deflationary and stagflationary effects. Instead of annual stop-and-go policies, we would have half-yearly or quarterly ones. And these "adaptations" would and could never be as accurate as would occur naturally and freely under monetary freedom. The victims of monetary despotism and taxation should also ask themselves whether they should be taxed to make up for the inflationary spending of governments, through additional legal tender issues or suffer extra taxes to make up for the mistakes of politicians, their spending and their central banking system, i.e., taxed to make up for the inflation tax. If a gallows currency is not introduced (Hanging those responsible, finance minister and central bank president, when they have, once again, depreciated the forced and exclusive currency), then perhaps another response would somewhat help: Reduce the real purchasing power received by all politicians and bureaucrats, their salaries, pensions and, expenditure claims at double the rate at which their currency is inflated! That might give them a vested interest in not inflating their paper currency. At present they have a vested interest in inflating it. - J. Z., 6.4.97, 30.5.11. - SUPPLEMENTARY BUDGETS, TAXES & INFLATION

BUDGETS: They indicate how the loot is to be increased, at the expense of the tax slaves and how it is to be distributed among the politicians, the bureaucratic empires and their favourites, or their voters, bribed through subsidies. - The whole tragicomedy is treated not as a farce or a crime but put on the same moral level as a private or company budget that only honestly disposes of the own and honest earnings. Calling a wolf a sheep does not turn him into a sheep. Calling a robber a benefactor does not turn him into a benefactor. One can rightfully distribute handouts, investments and subsidies and loans only from the own property. We should as much as possible avoid using the misleading or cover-up or obviously dishonest and false terms that governments want us to use to be able to continue fleecing us, their victims with or without our individual consents. - J.Z.,­25.9.91, 27.4.97, 30.5.11. - OF GOVERNMENTS

BUILDFREEDOM.COM: Economic Rape of America - Stretch Your Imagination - - Cached - In Chapter One you were asked to stretch your imagination and to consider the possibility of "free market money." The notion that people should be free to ...

BUSINESS SECRETS: Among other things, in a sound alternative note-issue, clearing and credit system, there will be no business secret. Either it will not be assumed to be necessary and justified or it will not be planned in, right from the beginning of competitive issues or current and clearing account services. I would also predict that issuers or account keepers who would not claim "business and privacy secrets" in this respect, would be more successful, i.e. more used, than the other ones would be. - J. Z., 3/97. - SECRECY, PUBLICITY ON NOTE ISSUES & REFLUX

BUTLER, Dr. EAMONN, How to regulate banks - July 27, 2010. by Dr Eamonn Butler. - "Regulate with chunky reserve requirements and forget the rest. Have even chunkier requirements on the bigger institutions which pose the biggest systemic risk. Don't try to legislate the structure of banks, but make them tell their customers how safe, or otherwise, their money is. And let's have sound money, so politicians can't get us into the same boom-bust cycles again." - Roy Halliday, in section on Government-Regulated Banking. - Another adherent to the reserve requirement spleen. As if nothing else could be soundly monetized! - What can we expect when even some libertarians advocate governmental laws or regulations? - J.Z., 9.8.11.

BUY AMERICA: The federal government's own "Buy America" procurement preferences, which can allow domestic producers to charge as much as 50 percent more than foreign sellers for the same item. - Barry Goldwater, The Coming Break-Point, 1976, p.105. - Buy American? - J.Z. - PROTECTIONISM, TAXATION & GOVERNMENT SPENDING

BUY AUSTRALIAN (GERMAN, ENGLISH, AMERICAN, etc.): If Australian money consisted of a number of competing Australian currencies, all of them truly based on Australian goods and services, then and automatically, all spending of it would lead to corresponding sales of Australian goods and services, by redeeming this money in the Australian goods and services it is based upon. Even if some bought only imported goods with such currencies, these would inevitably stream back to pay for the same amount of Australian exports. - It is also true that even the central bank's State paper money, when used in paying for imports, has ultimately no value for the foreigner than by being returned to pay for Australian exports. But there is not time limit on this kind of paper money, as is on private "ticket" money. Moreover, foreign central banks, in their foolish grasp for and accumulation of "reserve currencies", might retain a not yet too depreciated State paper money for years to decades. This would mean that for these periods we would have got these imports as interest-free loans. But our central bank might not sufficiently replace these notes, hoarded in foreign countries, perhaps also by private citizens, which may have reasons to trust their own government's paper money even less. Consequently, the own circulation of exclusive and forced currency might become correspondingly deflated. Such a diminished reflux of Australian notes might also boost the primitive notion of "buy Australian!" - Compare also a hypothetical payment of imports with gold coins. They would not necessarily or at all return to us for Australian exports, immediately or soon. The whole world market would be open for them. Only according to the "law of fluctuating gold quantities" would they ultimately tend to return to an Australia whose gold prices for goods would have become lower than those on the world market, because of a gold deflation (assuming gold here to be made an exclusive currency). If, however, we are free to issue at any time as many exchange media as we need for our transactions and also free to choose e.g. a gold weight unit as our value standard, then, although our gold stock would be reduced, our gold weight unit prices would not be. Only our actual payments in gold coins would become rarer. - Anyhow, this kind of model of an exclusive gold currency, that once spent does not return automatically to the spender, still spooks in the heads of people, long after gold coin circulation has disappeared and makes people jump to wrong and protectionist conclusions like: "Buy Australian!" - J. Z., 29.9.93, 25.5.97, 30.5.11. - Did you ever hear or see a good refutation of this stupid little slogan, from any Dr. or Prof. of economics or any commentator in the mass media? It is endlessly repeated in advertisements - without being accompanied or followed by any criticism that I am aware of. Oh the power of the great lies, myths and prejudices - while there exists no digitized encyclopaedia to systematically collect and publish their best refutations sufficiently. - J. Z., 8.9.02, 30.5.11.

BUY AUSTRALIAN. Buy your kid a job: Buy Australian". "Australian Made" or: "Made in Australia" and: "Buy Locally!" - Give a rational and new meaning to these slogans. Mobilise your own ready-for- sale goods-, service- and labour supply capacity monetarily. Pay, as far as you can, i.e., as far as you can find voluntary acceptors for them, with your own assignments or clearing certificates or IOU's, or purchasing vouchers, goods warrants and service scrip - upon whatever you have to offer, in money denominations, but avoiding the money terms and "value standard" of the government - due to its despotic monetary laws. All your local spending using sound and competitively issued private currencies would, inevitably (apart from the actions of note collectors) come back to you in form of extra sales. If, instead, you spend government money then it might never come back to you or to your local community. - But be not satisfied with whatever you can achieve with governmental forced and exclusive currency. At least discuss completely free clearing and note issues in your local community, or private payment community, as a theoretical possibility and as a self-help action as soon as you could legally or safely do so. - In the meantime, you might also play exchange games, issuing your tokens and mutually accept them at their agreed upon values, even if none is stated in conventional money or banking terms. (The might only be called "tickets, "bucks", "units", "notes" or "points" with their value agreed upon among the players.). At present you are already free to issue gift vouchers in money denominations and there are, in Australia, shop-currencies but only for consumer credits. Try whether you could issue them outside of consumer credits, especially in wage payments to young people out of jobs. At least start thinking and discussing such options and their consequences. Do not let yourself be disabled, fleeced and exploited by the central bank and its paper money any longer. End your self-caused ignorance of your monetary freedom options. If your monetary freedom remains effectively suppressed, then at least protest, e.g. by putting signs in your shop windows: "If a local currency could be freely issued in this community, I would be one of the first to welcome it and readily accept it. I do not like to be dependent upon the government's paper money, with its inflations, deflations stagflations, credit-restrictions, sales difficulties, numerous bankruptcies and mass unemployment as a consequence!" - Even while you are not yet free to issue your own sound money and, with it, are able drive out of circulation any unsound monies, including those of the government, at least talk about sound and alternative money options, with your neighbours, family members, friends and acquaintances. That is more important for you, in the long run, than talking about the weather, your sicknesses, your kids and your favourite sports teams. - J.Z., 22.3.93, 27.5.97, 30.5.11.

BUY AUSTRALIAN: Australians would inevitably buy largely Australian-made goods if only they were free to issue and accept alternative and competing local, private, cooperative and optional currencies that are based on local goods and services ready for sale. - A cinema owner who can pay for all his expenses with tickets will have no trouble getting his seats "sold", simply by the return of the tickets to him, in payment for the seats he offers for his performances. - - Why bother to export anything at all when we are only willing to buy Australian goods? - What could we then do with the sales proceeds, in foreign currencies, from our exports? - J. Z., 27.9.93, 29.9.93 & 24.4.97. 8.9.02, 30.5.11. - DIS.

BUY AUSTRALIAN: Buy your kids and yourself a job by buying locally, Australia-wide and internationally - with your own "Australian-made" money tokens and clearing certificates based on your own goods, products, services and labour. The government is quite unable to manage this Australian job, for you. - J. Z., 19.4.93. - On the contrary: It has outlawed such self-help steps! - J. Z., 6.9.02. - BUY YOUR KIDS A JOB! BUY AUSTRALIAN, UNEMPLOYMENT & IMPORTS & MONETARY FREEDOM.

BUY AUSTRALIAN: If Australian consumers were free to accept and spend, rate or refuse and also, as producers and traders, to issue and to offer to pay with their own printed or coined assignments upon their own goods- and service offers, in their own money tokens or clearing certificates or account, in standardised and convenient money denominations (different in appearance from any other money issues), and also free to using for these alternative exchange and clearing media any value standard that pleases them, as long as it does, then they would come to automatically buy Australian goods and services to a large extent. Their money would, mostly, have no other value or use for them. Moreover, it would often enable them to do so, in the first place, by this very freedom to issue and use their issues as their means of payment. Moreover, then they would be able to obtain or issue just as many sound means of payment as they would need for all their transactions and would no longer be misled, defrauded or cheated, exploited and taxed, restricted and held back by the despotic monetary policies of the central bank: the Reserve Bank of Australia, with its forced and exclusive paper currency, given legal tender powers (compulsory acceptance and compulsory value, no matter how much it has been depreciated). Nor would they be rendered unemployed by being forced to sell or work only for this exclusive and forced currency, although it has often been inflated, deflated or stag-flated and its managers or mis-managers have never managed to supply all Australians with just the quantity of sound exchange media that they do need for their exchanges. No central bank can achieve that. Free competition and free cooperation would work its wonders, here, too, if allowed to do so. Under freedom the good money would drive out the bad, as it should, by rights. - J. Z., 19.11.93, 24.4.97, 30.5.11. - By the way, any private currencies, redeemable in Australian goods and services only, if they were used to pay for imports would, in the hands of any foreigners, have no other value than as a purchasing medium in Australia. Thus, these imports would also lead to the purchase of Australian goods in our export trade. With government legal tender getting into the hands of foreign merchants this return is less certain. They might then end up, for many years, in the safes of foreign central banks, as "foreign exchange reserves". - J. Z., 7.9.02, 30.5.11. - "AUSTRALIAN MADE"

BUY AUSTRALIAN: This popular slogan makes sense only as an advice to let all national and local purchasing power be directly based upon Australian labour, services and goods, in the form of competitively issued alternative currencies, optional and market-rated, which the issuers would merely have to convert into their goods and services, upon demand. - As for external trading: Once Australian clearing certificates, redeemable only in standard Australian export goods, like wool, liquid gas, coal, wheat, meat, etc., are freely issued, offered and accepted, to pay for imports, then, indirectly, they buy, through the foreign buyers and consumers, Australian goods and services, when these clearing certificates are returned to Australia in payment. They have no other value and thus will be used in this way. - Generally, I would say: Buy Australian goods only if they are cheaper or better or do, for some other and personal reasons suit you more. Otherwise, buy foreign goods that suit you. Sooner or later, even the Australian government's paper money will return to Australia to pay for its exports. It has not other value for foreigners. (Apart from being hoarded as "foreign exchange" in some central bank. Sooner or later most foreign governments will spend that foreign exchange reserve as well. But the time delay involved may be considerable. But then and to that extent, and for this time, Australia would actually have been able to buy and use foreign goods and services - just for the price of getting deposited in the vaults of these banks some scraps or printed paper. Thus it would have received a foreign loan, interest free, in goods and services for this period. A real disaster this! - J.Z., 8.9.02.) - When you buy imported goods you do buy Australian goods indirectly. To that extent the slogan is senseless. But when your A $ is not as much depreciated as the currency in a foreign country then private persons there and its central bank might use it to hoard it as a reserve, thus introducing a time delay, in which no corresponding demand for Australian goods and services arises. This is one of the many defects of forced and exclusive currencies. Their hoarded notes are not easily, fast and efficiently replaced by new issues. This is already a sufficient reason to exclude them for import payments. Private, competitively and cooperatively issued international clearing certificates are a good substitute for them. Professor E. Milhaud and Ulrich von Beckerath have described their principles and practices. - Buy Australian is just a modern version of mercantilism and of the dogmatic statement that the own money should stay in the own country, before the truths of Free Trade were at least somewhat realized for a few decades. Now, with such notions, we are back to the wrongful, harmful and expensive morass of protectionism. - This planet, with all its people, and their products, services and labour is, or should be a single free market, one without any governmental or other criminal interferences. With the exception of voluntary victims and self-restrictionists, like e.g. monks and nuns. - J.Z., 27.7.93, 24.4.97, 8.9.02, 30.5.11.

BUY AUSTRALIAN? The only way how buying from yourself and your neighbours can be assured consists in issuing your own exchange media as far as possible, i.e. buying as many of your requirements and paying as many of your debts with them as possible. They would, obviously, have no other foundation than your own readiness to accept them in payment of your goods and services and for this they would inevitably return to you. Buy with your own local currencies, which only oblige you and they will inevitably return to you in payment for your goods and services, like any other IOU. Monetize your own goods and service supply capacity. You do not even have to be an Australian nationalist to do so in your own interest. As far as Australian imports are concerned: See to it that they are paid for with competitively issued assignments to Australian export goods and services in convenient denominations. Then, obviously and inevitably, corresponding exports will follow these imports, obviating your nationalistic slogan appeal. - J. Z., 27.8.95, 19.3.97, 30.5.11.




C. A: Free Market Money System: The Competing Currencies Alternative. IV. Conclusion: Competition as the Proper Response to Ignorance. Bibliography ...

CAMPAIGN FOR LIBERTY: Campaign For Liberty — Fear the Boom & Bust, a guide to the Hayek ... - - Cached - 4 Feb 2010 – ... gold and silver (or create whatever free-market money a society uses) than the increase in human productivity over the same time period. ...

CANCELLATION OF SHOP CURRENCY OR OTHER CURRENCIES THAT HAVE RETURNED TO THE ISSUERS: Sound money would rather oscillate than circulate permanently. (Rare metal coins and some cheap metal money substitutes excepted, for purpose of small change.) It would be issued, frequently or constantly, as required, and frequently to constantly return in payment to the issuer. As turnover-credit money, not intended to be hoarded but to be spent, in its reflux to the issuer and his associates, it might have only a limited "circulation" or oscillation period. As such, upon return it should be cancelled, rather than issued again, for the still remaining stretch of that period. To replace it by newly issued other paper currency is easy and cheap enough. This would also facilitate the control of the reflux of each series and quantity of such money that is issued. To prevent forgery (a risk greatly reduced for oscillating money with a limited circulation period and circulation area and acceptance foundation) these competing notes, too, would be consecutively numbered. The return of all numbers of a series could then be easily checked - and forged notes rapidly discovered. Whatever current issue and reflux details the issuer may want to publicize, also whatever special advertisement, he could include on each new batch of notes issued. The frequent renewal of notes would also be more hygienic than notes that have been in the hands of hundreds or thousands of people. Then their texts would also be more legible than that of much handled notes. For savings purposes such notes with a limited circulation period could be exchanged into wanted securities or fixed deposits. - J.Z., 27.8.02, 30.5.11.

CAPITAL HILL BLUE: Free Market Money,- Free market money | Capitol Hill Blue - - Cached - 26 Feb 2009 – In the long run, the only solution to the business cycle of boom, bubble, and crash is honest money, which is free market money. ...

CAPITAL REQUIRED FOR BANKS OF ISSUE? Banks of note issue do require, for this kind of business, one merely of short-term turnover credits, which are, essentially, only part of clearing transactions, neither a saved-up capital of their own, nor investments by others nor a guaranty capital in case of their liquidation. What they do need is at least a leased office, office equipment a trained staff, a printer's credit and an issue and reflux technique and agreement on it with the local businessmen, and sales organizations, mainly shopkeepers, supermarkets, shopping centres, department stores, who or which would provide the "cover" and "redemption fund" and "guaranty capital" with their ready-for-sale goods and services, and an agreement with local employees, suppliers, tradesmen and professionals to be paid in the notes of the bank of issue, at least as long as it stands at par with its nominal value and to the extent that they are indebted to the bank of issue. Moreover, full openness of all transactions and publicity would be needed for all its issue details, in order to dispel ignorance, prejudices, distrust, suspicion and slander. In other words, monetary freedom is only possible within sufficiently informed and enlightened circles. - J.Z., 3/97, 30.5.11.

CAPITAL REQUIREMENT FOR FREE MARKET MONEY EDUCATION? On a CD, or DVD, certainly on a large external HD, of 1 to 2 TBs, one could already offer much, if not everything on free market money. All these discs are cheap. Only labours of love are needed to fill them. The "capital investment required is quite negligible - Thus I do not see any sense in the following appeal. Such discs could make money for the compilers, and be it only through advertisements. - J.Z., 23.7.11. - Appeal for $100000 - Free Market Money -  - Cached - These resources are to be available to students and members seeking information about the association, free market money, monetary policy, and mining stocks ... - Let them pay their way! The charges could be kept so low that even poor students could afford them. - J.Z., 23.7.11.


CAPITAL: stored up labour (capital), … Leo Tolstoy, What the Must we Do? Aylmer Maude translation, OUP, 1925, p. 112. – One of his few genuine economic insights. The labour capacity of a worker is also a kind of capital, just like a machine or a robot, but self-owned. – It is quite a misunderstanding to see both, Labour and Capital, as opposites and enemies. – Ulrich von Beckerath called capital “pre-done labour” and claimed that it, as such, has also the right to its just and free-market-determined reward. - J.Z., 19.10.10. - LABOUR, DIS.

CAPITALISM & FREE MARKET: Video About Gold Dinar and Silver Dirham "threaten" capitalism ... - - Cached - Saying that free market money threatens capitalism is completely absurd! Free market money threatens our phony fiat "too big to fail" bailed-out casino ... - DIS.

CAPITALISM: In reality, said Bastiat, capital is always put at the service of other people who do not own it, and it is always used to satisfy a desire (good or bad) that other people want satisfied. In that important sense, all capital is truly owned in common by the entire community. Benefits come to all from the increasing division of labor that automatically follows the accumulation of capital. - Dean Russell, Government and Legal Plunder. Bastiat Brought Up to Date, FEE, May 85, ISBN-0-9106614-70-9, 116pp, p.18. - DIVISION OF LABOR, CAPITAL, EXPLOITATIOIN, POVERTY, DIS., WEALTH, RICHES

CAPITALISM: Too many advocates of economic freedom have only a limited horizon or blinkered view of the economic freedom potential. They fix most of their attention on a few economic liberties and interventions and ignore major ones, like a free and competitive supply of exchange media and free choice of value standards, and fully free clearing rather than imposed obligations to deliver gold, silver or legal tender in payment of debts, although these are obvious alternatives to the ruling monetary despotism of today. Without monetary freedom all other economic liberties are greatly devalued. Financial freedom, too, requires also not just some degree of deregulation and liberalisation or denationalisation but a complete freedom alternative to financial despotism: freedom to issue, free international and internal exchange rates, free transferability of all capital, absence of taxation, absence of imposed regulations, and absence of monetary despotism. Under full financial freedom any normal working person in a developed country could become a multi-millionaire through his old age security savings, productively invested, credit-insured, at the highest interest rate obtainable, not subject to inflation, interest regulation, taxation, forced loans, social security levies etc. - If that fact, calculation and tabulation becomes wide enough publicised, with the then obvious conclusion: The government prevents us from becoming millionaires, by honest labours and investments, at least in our old age, then we will have a bloodless revolution pretty soon. - Likewise, once the hundreds of millions of unemployed come to understand that monetary despotism keeps them unemployed and that monetary freedom could provide full employment for them, within hours to days, almost every present government will be shaken in its foundations if not overthrown - unless it jumps fast on this bandwagon. - If for truths like these a proper ideas market existed already, then we could benefit from them very soon. But so far not even one in a thousand is interested in such an ideas market, even among the free marketeers! - J. Z., 4.12.85, 9.5.97, 30.5.11. - CAPITALISM WITH & WITHOUT MONETARY FREEDOM, LAISSEZ FAIRE, FREE ENTERPRISE, FREE MARKETS, FREE TRADE, FREEDOM OF CONTRACT, MONETARY DESPOTISM & MONETARY & FINANCIAL FREEDOM

CASEYRESEARCH.COM: Grim Decade for Employment Ahead - Casey Research - - Cached - 21 Jun 2011 – Is it free-market money or not? This seems like an important issue, ... In my opinion, Bitcoin is free-market money, but that shouldn't be ... - Assuming that all monetary freedom options were sufficiently known and that all laws of monetary despotism could be safely ignored, would it take a decade to get rid of involuntary mass unemployment or only hours or days? - J.Z., 24.7.11. - BITCOINS, DIS., UNEMPLOYMENT, FULL EMPLOYMENT, MONETARY DESPOTISM, DIS., TIME FACTOR, START-UPS.

CASH HOLDINGS: When there is a variety of different means of payment and not everyone but only issuers and their debtors will be under obligations to accept a particular one of them, one might come to expect that cash holdings, in a variety of exchange media, might increase in total. But that need not be true. It would, firstly, be counteracted by the right of refusal towards those means of exchange for which one has little or not use at all. Then there would be those who accepted some notes only because they had a discount and because of this they could rapidly and profitably spend them at the issuer (and his associates) for wanted goods or services, due to this discount. Then there is the limited circulation period of most privately issued means of exchange, which assures their fast reflux, before that period is expired. One would also have the option to issue one's own exchange media and thus largely refuse to accept any or many other currencies. Moreover, there is the effect of the better monies driving out the bad ones, so that only a few good ones would survive in general circulation, those which are widely acceptable, at least locally. - Exchange media that one would have to keep in one's wallet for a long time, before one had any opportunity to use them, would rarely ever get into and get stuck in a wallet. People can learn to distinguish between good shares and attractive girls and wallflower girls. They could also go for bargains and sound values in currencies and avoid the rest. - Another general effect of monetary freedom might be that cash-holdings would be reduced because money would be less scarce. One would find it much easier to sell for payments in sound and competitive currencies than for monopoly money - and one could also issue one's own or one's own clearing certificates. Credit, on a sound value basis, would be easier to obtain. Thus the need for cash holdings, for emergency situations, would be reduced. Under a sound currency system most people would also be better covered by insurance arrangements against personal emergencies. - J. Z., 29.3.93, 27.5.97, 30.5.11. - QUANTITY THEORY, CIRCULATION SPEED & A VARIETY OF COMPETING MEANS OF PAYMENT & CLEARING

CASH PAYMENTS: For tax-"reasons" and in the pursuit of its drug war, governments are more and more on the road to eliminate cash payments altogether. They wish to have all non-cash transactions becoming visible to them, on their computers and accessible to their  form of legalized looting. Unless we can sufficiently privatize our computerised exchanges, we will thus become more and more exposed to Big Brother, his exploitation and abuses. I am in favour of our doing away with government cash and non-cash transactions, government taxes and subsidies, government guarantees and "insurance" schemes, altogether, in all spheres, at least for volunteer communities which do know and do want to arrange their affairs in a more just, non-exploitative and convenient way, one that does not endanger them and their property and exchanges. - J. Z., 3/97, 30.5.11. - & GOVERNMENT ATTEMPTS TO ELIMINATE THEM

CASH PAYMENTS: In recent years many to most wages and salaries were also paid directly into bank accounts only and spent from there via cheques and credit cards, without using cash. Thus the proportion of cash habitually kept available, in normal times, and formerly necessary for most wage and salary payments, becomes a smaller and smaller fraction of all the non-cash means of payment at any particular time. When, nevertheless, by law and juridical decisions, every debtor remains obliged to pay in cash upon demand by a creditor, then a large crisis factor is thereby built into the payment system, especially a monopolised and regulated one, that would require considerable time to provide any extra cash that is wanted and that may even be legally prohibited from providing it. - J. Z., 3/97, 30.5.11. - VS. NON-CASH PAYMENTS.

CASINO MONEY: Casino money is also possible and, to some extent, already practised, if only to ensure honesty among a casino's employees. So, the customers of a casino usually have to first of all buy the casino's own token money before beginning their games in it and they have to redeem their winnings, if any, into outside money, before they leave. Is casino money as taxed, regulated and mismanaged as government money is? Is it ever inflated? Is it ever deflated? Or is even a stagflation avoided in it? - J. Z., 19.3.97, 30.5.11.

CATALAN, JONATHAN M. FINEGOLD, The Austrian History of US Money and Banking August 6, 201, by Jonathan M. Finegold Catalan. - "Friedman and Schwartz attempt to derive theory and causation from statistics, often leading them to erroneous conclusions. By contrast, Rothbard's treatise is written to illustrate existing theory, not to gain additional insight." - Roy Halliday, -

CENTRAL BANKING, FED, Division of Labour: Why do we have a Fed? - - Cached - 22 Sep 2007(1) Is there a market failure in a free-market money and banking system that a central bank could in principle remedy? (I.e. do we need a ...

CENTRAL BANKING: A central bank, like a monarchy or a monopoly post office, may, sometimes, be reasonably well run for a while, within its inherent limitations. However, in the long run and for most cases and times, it is a recipe for planned or unintended disasters. - See e.g. Kurt Schuler's writing on the Currency Board version of a central bank and Prof. Heinrich Rittershausen's attempt to make the best of this evil, through his observation and proposals in his work: Die Zentralnotenbank. - J. Z., 30.8.93, 30.5.11. - FED, FEDERAL RESERVE SYSTEM, MONEY MONOPOLY

CENTRAL BANKING: A currency entrusted to any government is, usually, as good as lost. - J. Z., 27.1.93. - MONEY MONOPOLY, MONETARY DESPOTISM, GOVERNMENT, TRUST & CONFIDENCE

CENTRAL BANKING: An engine for inflation and mass unemployment and trade depressions and one that often manages to combine both, inflation and deflation, to "achieve" stagflation. - Nevertheless, legislated into power and upheld by monetary prejudices, it remains in force to dispense its wrongs and evils, in all countries. - J. Z., 10.2.93, 14.4.97, 30.5.11.

CENTRAL BANKING: Any power in the government to control credit destroys the freedom of the people and makes free enterprise a myth. Government control of credit and free enterprise cannot exist together. - Paul Bakewell, Jr., What Are We Using For Money. D. Van Nostrand Co., Toronto, New York, London, 1952, p.145. – The same applies to any exclusive currency, even a gold- and silver one. However, to turn it into and to keep it as an exclusive currency, governmental intervention is required. – J.Z., 29.7.10.

CENTRAL BANKING: Bankers wash their hands of jobless", by George Graham of the FINANCIAL TIMES in Jackson Hole, Wyoming", taken from a column in THE AUSTRALIAN, 30.8.94, from which I extract the following quotes which speak for themselves or, rather, against the central bankers and their "experts": "Central bankers from 19 countries gathered here at the weekend at the invitation of the Federal Reserve Bank of Kansas City in the shadow of the Grand Teton mountains to discuss unemployment and came away with the reassuring message: it is not their problem. A bevy of academic economists agreed that most of the high unemployment rates in industrialised countries was attributable to structural factors - principally the way the Welfare State distorts an unemployed person's incentive to work - and not to the cyclical demand factors which are within a central bank's power to influence. - Heads nodded piously in the audience as Paul Krugman, a professor at Stanford University, said it was now all but universally accepted among academic economists, though still suspect to politicians and journalists, that there was a natural rate of unemployment. A central bank could expand demand and push the actual rate of unemployment below that level but only at the expense of accelerating inflation. ... This is music to the ears of most central bankers, who have long been defending themselves against the accusation that they are buying lower inflation at the expense of higher unemployment. ..." - CENTRAL BANKERS & THEIR WISDOM OR LACK OF IT REGARDING THE CAUSE & CURE OF UNEMPLOYMENT

CENTRAL BANKING: By how much has every national central bank during the last century depreciated its monopoly money, its “value standard”, the purchasing power of its national currency? Are all their victims sufficiently aware of these figures to finally demand an end to these abusive institutions, still pretending to be rightful, necessary, useful and helpful ones? – How many of the present politicians would be re-elected if their voter-victims were fully aware of the wrongs and harmful effects of central banking? – What would happen if the majority of voters declared, before an election, that they would no longer vote for anyone still upholding the central banking legislation? –For instance, they could demanded of every candidate his promise to repeal this legislation and not only that, but also his signature to a bill draft to abolish central banking, as a legally and territorially imposed system. His promise then would have to be to submit this bill and to vote for it, as soon as he has been elected? – It should be a contract with the voters, by which he would lose his office in case he would break his promise. – Naturally, a well informed and organized monetary freedom revolution would be even better. – We should not even have to depend upon politicians recognizing our genuine monetary rights and liberties. – Alas, so far they have been expressed only in all too few private human rights declarations. - J.Z., 2.11.10.

CENTRAL BANKING: By legalizing the monopoly and coercive powers of the central bank we (our supposed representatives) have given the government blank cheques drawn on our earnings and our property, in form of its legal tender (compulsory acceptance and compulsory value) paper money or requisitioning certificates or forced and exclusive currency. It amounts to a camouflaged tribute system because it is not recognized as such by the majority of the population, persuaded that the central bank would be a force for the common good. - Instead, central banking has produced one economic disaster after the other and has even more suppressed monetary freedom and free banking than it was before the legalized establishment of central banking. - Should we put up with it for another century? - J.Z., n.d. & 30.5.11. - & LEGAL TENDER, FORCED CURRENCY, MONEY MONOPOLY

CENTRAL BANKING: Central bankers, other bankers, financial journalist and economists nowadays and as a rule to not seem to be able to think of and propose anything better than putting the interest rate of "our" despotic monopoly money either a few notches up or down. - J. Z., 3.10.96, 30.5.11. & INTEREST RATE POLICIES

CENTRAL BANKING: Central banking is the Golden Calf worship of today. It offers no benefits but only disasters. But when has that ever deterred any worshippers anywhere? - J. Z., 29.12.92. - See: MONETARY RELIGION, MONETARY DESPOTISM.

CENTRAL BANKING: Central Banking, in its national, Euro-currency and World Banking ideas and practices, exemplify the central Marxist error that to defeat private supposed "monopolies" (usually quite wrongly defined) you ought to establish, instead, a nation-wide, European or even world-wide monopoly, rather than abolish all legalized monopolies and introduce free competition for all productive, creative and free exchange activities. - J. Z., 14.8.89, 29.4.97, 30.5.11. - EURO-CURRENCY, WORLD BANK, INTERNATIONAL MONETARY FUND (IMF) & MARXISM, COMMUNISM, STATE SOCIALISM OR STATE CAPITALISM, MONOPOLISM & ANTI-MONOPOLISM

CENTRAL BANKING: Central banks are destroyers of the values of their currencies. Just compare the price history in all countries. - J.Z., 31.3.02, 30.5.11. - INFLATIONS & PRICE DEVELOPMENTS

CENTRAL BANKING: Central banks are not "guarding" their nationalized paper money currency against depreciation but, thanks to their monopoly and legal tender coercive power, they are systematically and regularly depreciating them - while suppressing any competition against their misrule and abuses. - J.Z., 28.4.02. - MONEY DEPRECIATION, "GUARDIANS" OF THE CURRENCY

CENTRAL BANKING: Central banks do not know and cannot do anything better than fluctuate, almost constantly, between inflation, deflation and stagflation. Having removed competition and market rating and full publicity for their issues and practices (compare especially their secrecy on the date and extent of planned devaluations), they are thrown back to fiscal policies, "open market" sales or purchases of securities (the insecurity of government securities), enforced claims upon the holdings of other banks, legal tender and their monopoly position, the control or manipulation of foreign exchange rates, and their stock of redemption funds in rare metals, securities, insecurities and foreign exchange and the regulatory power they have over the interest and discount rate, to more or less mismanage the exclusive and forced currency allowed to them. Almost all of them can point out only to decades of mismanagement, due to mis-judgments and to their failures to attain stable currencies, a booming economy and full employment. A few have managed to keep their deflations, inflations and stagflations within bounds, for a few years, one never knows for how long they can manage to do so. And, even in these cases, monetary freedom would have supplied rightful and better monetary services. Thus one would expect sufficiently enlightened victims of this system - if they can be bothered to take an interest in it and to study it and alternatives to it, to ignore, outlaw or overthrow this despotic and harmful regime. Except a few of its directors and employees, we are all wronged and harmed by it. But it does do well enough by them. - J. Z., 2.8.94, 17.4.97, 30.5.11, 0.5.11. - CENTRAL BANKS, UNABLE TO FULFIL THEIR SUPPOSED FUNCTION OR ROLE

CENTRAL BANKING: Central banks for communists and other central bank adherents only: They deserve to get what they want, in self-inflicted punishment. - J.Z., 27.5.01, 26.8.02.

CENTRAL BANKING: Central Banks Now Creating Hyperinflation? « Socio-Economics ... - - Cached - 5 Feb 2011 – This is why it is so important to use free-market money, as Austrian, free-market economists argue. In, say, a free-banking arrangement, ... - ALL kinds of free market monies and clearing options, as well as value standards, all freely chosen by volunteers for themselves, instead of merely the all too limited monetary freedom options which most of the advocates of the Austrian School want us to confine to. - - Full monetary freedom instead of merely that of the austrian school, most of them still merely goldbugs! - J.Z., 26.7.11.

CENTRAL BANKING: Central banks specialize in depreciating the currency whose stability was legally and exclusively entrusted to them. – However, they also manage to produce deflations, stagflations and credit restrictions with their monetary, currency and credit policies. They are rather versatile when it comes to establishing and maintaining monetary despotism. – J.Z., 16.5.05, 6.10.10.

CENTRAL BANKING: Do nothing, be nothing and dissolution are the best 3 policies for any central bank. However, they still have some penalty lessons to teach to their VOLUNTARY victims and we should give them that chance. - J. Z., 7.4.94, 24.4.97.

CENTRAL BANKING: Economically, the central banks are the worst central committees of the communist movement. - J.Z., 5.8.91. CENTRAL BANKS & COMMUNISM, CENTRAL COMMITTEES OF DIRIGISM OR THE CENTRALLY PLANNED & MISMANAGED ECONOMY

CENTRAL BANKING: How fast would the central bank's forced and monopolised currency disappear or become reduced to a relatively harmless and even (to the tax slaves) somewhat helpful tax foundation money (while these tribute payments are still tolerated), once it were subjected to free competition from several sound, privately or cooperatively issued alternative currencies that are optional and market rated against sound alternative value standards, freely chosen, too? How fast could the State paper money be abolished or so reduced? - Almost overnight, if this monetary revolution is well thought-out and prepared by enough people. The sooner the better. - J. Z.,19.8.92., 23.4.97, 30.5.11. - & THE REDUCTION OF ITS FORCED & EXCLUSIVE CURRENCY TO A COMPETITIVE & OPTIONAL TAX FOUNDATION MONEY ONLY

CENTRAL BANKING: How much longer will it take "our" official "guardian" of "our" currency to reduce the value of the A$ to 1cents in U.S. currency? It has already brought the value of the Australian dollar down to 47 US cents. And that comparison does not even take into account how much the US $ has been depreciated in the meantime, by the same method and kind of institution. Against the former value of the US$ the A$ may already be down to close to 1US cent! - J.Z., 1/10/01, 27.8.02, 30.5.11. - INFLATION, PAPER MONEY, RESERVE BANK OF AUSTRALIA, AUSTRALIAN DOLLAR AGAINST US DOLLAR

CENTRAL BANKING: How, when, how often, by what means and why - do central banks, not private forgers or private issuers or "creators" of money, credits and deposits, depreciate national currencies? Do they report all the relevant facts and powers and consequences to the general public? Do they promote monetary enlightenment and emancipation or, rather, monetary ignorance, prejudices, myths and outright lies? - J. Z., 8.11.92, 15.4.97. - MONEY DEPRECIATION, CENTRAL BANKING POWERS &­ ACTIONS

CENTRAL BANKING: I would like to see a book written with this or a similar title, including the best refutations of all the central banking fallacies, errors, false assumptions, pretences and prejudices so far found. For easier recognition and referencing these fallacies should perhaps not only be alphabetized under catchwords and indexed and cross-referenced but also be numbered. I would welcome any such manuscripts or essays or drafts of them for micro-fiching or digitizing in my series. The ultimate book on this subject would have to result from extensive collaboration. For no one has access to all the monetary freedom writings - or would have time to read them and extract them sufficiently. The literature on monetary despotism, defending it or regarding it as self-evident or beneficial, is much more plentiful than the rich literature on monetary freedom (largely hidden from public view). When I looked for writings on central and free banking at the State Library of NSW, back in 1959 or 1960, I found ca. 400, a bookshelf full, discussing approvingly only central banking and no work critical of it at all. Then I thought that I might get around to extract their main arguments systematically and to have the time, energy and knowledge to gradually refute most of them. Now I know better. Each individual, even with the best of will, can only do so much. If I had tried this task on my own, to the exclusion of any other, I might have only provided another Don-Quichote fight against the wings of a windmill. - J. Z., 8.4.97, 30.5.11. - & ITS FALLACIES, DIS.

CENTRAL BANKING: I would like to see a comprehensive survey of all central banks, country by country, with relevant legal cases cited and abstracted. - Especially informative, if sufficiently published, would be the rise of their legal tender note circulation, for years to decades, in relation to all prices, wages, rents etc. which do have to be expressed in it. They would thus be revealed as the opposites of "guardians" of national currencies. All should be shown as characterized especially by their note issue monopoly and legal tender power. - J.Z., n.d. & 30.5.11. - CENTRAL BANK POLICIES TOWARDS COMPETING CURRENCY ISSUES

CENTRAL BANKING: If the central banking system and its paper money were really so efficient and popular as the government presumes it to be, then it would not need any monopoly and regulatory powers nor any legal tender power to achieve a ready acceptance of its paper money. - Then it could also continue on and on, at the risk and expense of voluntary victims only, as many churches and sects did and do. - J. Z., 26.3.93, 27.5.97. - & THE MONEY ISSUE MONOPOLY AND LEGAL TENDER POWER

CENTRAL BANKING: Is there any central bank that has existed for several years or decades, and that has not yet caused inflations, deflations and stagflations, several times - while blaming others for its actions and their consequences? - J. Z., 19.8.92, 23.4.97. - CENTRAL BANKS, INFLATIONS, DEFLATIONS & STAGFLATIONS

CENTRAL BANKING: It is based on self-interest of governments, that of politicians, bureaucrats and their lobbyist favourites, very contrary to the public interest. Otherwise the victims would not put up with its powers, monopoly, coercion, meddling, fraud and false pretences. It is the most powerful economic institution in every country. However, since it is legalized and has a whole statist faith as its backing, it goes on and on and is not judged on its merits or, rather, demerits, but upon the utopian and State socialistic dreams that are involved in it. To this faith it does not matter that almost all facts speak against it, since central banking was established. It even allows totalitarians like Lenin to gain power and maintain themselves in power. It allowed a madman like the German emperor Wilhelm II to start and continue WW I and it allowed a Hitler to "finance" WW II. - Nevertheless, we are not supposed to criticise this "holy grail" institution of the territorial statists and to try to replace it by free, cooperative and competitive ones. Nay, rather have WW III & IV & V and more totalitarian regimes for further decades. That, in the minds of most people, seems easier to bear than the job of tackling the problems created by monetary despotism and studying the solutions of monetary freedom. - If I were a visiting alien and looked at this all too wide-spread mentality, I could understand if such an alien would say to himself: I have the power to wipe out this insect pest on Earth - why shouldn't I use it? Perhaps, after a few million years, the cockroaches or butterflies might turn into something better! - J. Z., 19.8.92, 23.4.97, 30.5.11. - But then this would apply "collective responsibility" on an even larger scale than the present war on "Iraq" does, rather than holding Saddam Hussein individually responsible for his government's actions. For the latter approach one does not need any large military forces or any war. - J.Z., 7.9.02.

CENTRAL BANKING: It is, indeed, a paradox to say that the greatest borrower on earth has control of credit; and an anomaly that a government, which has defaulted and repudiated its own obligations, should assume control of credit.” Paul Bakewell, Jr., What Are We Using For Money. D. Van Nostrand Co., Toronto, New York, London, 1952, p.149/150.

CENTRAL BANKING: it only requires a parliamentary majority … to make the role of the central bank anything the politicians want to be. – Len Deighton, Berlin Game, Panther Books, 1984, p.118. - Politicians and “economists” talk or write of the “independence” of their central banks just like they speak or write of independence of the people or the nation, which they do territorially rule or misrule, mostly the latter, while really meaning their own independence from the people, their victims, in all States. – They even dare to call this deception, to their own advantage, “territorial integrity” and “representative” government. - J.Z., 2.11.10. - INDEPENDENCE?

CENTRAL BANKING: Karl Marx, the father of Communism (*), urged centralization of credit in the hands of the state as an essential step toward Communism. But (**) government control of credit makes free enterprise impossible. - Paul Bakewell, Jr., What Are We Using For Money. D. Van Nostrand Co., Toronto, New York, London, 1952, p.149. – (*) Marx was merely a popularizer and reviver of ancient communist notions, putting them into a pretentious “scientific” form. – (**) For! - J.Z., 29.7.10.

CENTRAL BANKING: Lenin knew it. He said that establishing a central bank was 90% of taking over a country. - James P. Hogan, Mirror Maze, p.315. - LENIN & COMMUNISM

CENTRAL BANKING: Like morality, law, language, and biological organisms, monetary institutions result from spontaneous order - and are similarly susceptible to variation and selection. Yet monetary institutions turn out to be the least satisfactorily developed of all spontaneously grown formations. Few will, for example, dare to claim that their functioning has improved during the last seventy years or so, since what has been an essentially automatic mechanism based on an international metallic standard was replaced, under the guidance of experts, by deliberate national 'monetary policies'. Indeed, humankind's experiences with money have given good reason for distrusting it, but not for the reasons commonly supposed. RATHER, THE SELECTIVE PROCESSES ARE INTERFERED WITH HERE MORE THAN ANYWHERE ELSE: SELECTION BY EVOLUTION IS PREVENTED BY GOVERNMENT MONOPOLIES THAT MAKE COMPETITIVE EXPERIMENTATION IMPOSSIBLE." - HAYEK, F. A., The Fatal Conceit, pp.103/104. - Alas, government interventionism with exchange media, clearing and value standard had begun, many centuries before. Hayek admits this in his next paragraph. They have, in almost every sphere, prevented or suppressed spontaneous development into the best forms possible for particular times, people and circumstances. For instance, the intervention with "truck" payments went on in Europe for ca. 500 years and did not permit them to develop beyond some primitive and still very inconvenient forms. However, even these were often the only "payment means" that employees could readily offer and neither the employers nor the employees cared much then - or now, about how such private payment options could be greatly improved and made even very attractive, superior to the coins of the realm or the paper monies of central banks. - J. Z., 27.5.97. - MONETARY EXPERIMENTATION, DEVELOPMENT & FREEDOM

CENTRAL BANKING: Like with any other powerful and monopolistic institution there are also many different conspiracy theories on central banking and its monetary despotism. – It does not matter which one, if any one of them is correct, as long as one is not subjected to any central banking system against one’s will. Ultimately, only central banks with voluntary victims should be tolerated. All wrongful, coercive and monopolistic central banks would fall together with territorialism, once it is ended and replaced by exterritorial autonomy for all kinds of communities and societies of volunteers. – J.Z., 1.2.10, 2.11.10. - CONSPIRACY THEORIES, TERRITORIALISM, PANARCHISM

CENTRAL BANKING: Maybe the Tamil Tiger terrorists of Ceylon are not so dumb as most other terrorists tend to be? According to ABC radio news on 1 Feb. 96, suicide bombers attacked the central bank in Colombo, Ceylon. Alas, in their attack ca. 100 people were killed. A night time raid, preceded by a warning, might not have cost any lives. There was no report on how much the bank and its ability to function were destroyed. No such raid would be as helpful as private and cooperative note issues could be - and refusals to accept the central bank's currency any longer. - J.Z., 1.2.95. - CENTRAL BANKS. SHOULD THEY BE ABOLISHED OR DESTROYED?

CENTRAL BANKING: National central banks have led to as many disappointments as national governments have, national post offices, national railways and national roads. Have any nationalised industries been successful under their motto: "Not for profit but for use!"? Have they achieved consumer satisfaction at less than market prices? Their subsidised prices should not be quoted here - without adding the subsidies that are involved. How many centuries of central bank failures do we have to suffer under before we finally abolish central banks? Price controls were tried, again and again, quite in vain, for 4,000 years. So were inflationary and deflationary policies by monetary despotism. One feature, the suppression of all kinds of truck-payments and truck payment notes, was applied over at least 4 centuries and in emergencies, caused by the government's monetary despotism and in spite of numerous legal and juridical prohibitions, employers and employees had to resort to this self-help means again and again. - Just like to other primitive barter transactions. If politicians, their experts and the whole community will not learn sufficiently from such failures, then at least we should set free all the minorities of people, who do believe that they have and can apply a better system, to try it - at their own expense and risk. We should grant them the same experimental freedom that we grant to scientists, artists, technicians, biologists, agriculturists etc. Otherwise monetary science and practice will stagnate under the rule of monetary despotism, possibly for further centuries, if not thousands of years. - J. Z., 19.8.92, 23.4.97, 30.5.11.

CENTRAL BANKING: National independence does not mean e.g. a national central bank or currency board but, rather, the independence of a nation and of all its citizens from any central bank and any other centralistic, monopolistic, despotic and territorial institutions. - J. Z., 5.9.92, 22.4.97. - & NATIONAL INDEPENDENCE, NATIONALISM, INDEPENDENCE, EXTERRITORIAL AUTONOMY, VOLUNTARISM & INDIVIDUAL SECESSIONISM & INDIVIDUAL SOVEREIGNTY VS. TERRITORIALISM

CENTRAL BANKING: News Link - Government Debt & Financing - Audit: Fed gave $16 trillion in emergency loans - 07-21-2011 - - The U.S. Federal Reserve gave out $16.1 trillion in emergency loans to U.S. and foreign financial institutions between Dec. 1, 2007 and July 21, 2010, according to figures produced by the government's first-ever audit of the central bank. - Read Comments - Make a Comment - Email this News Link - Send Letter to Editor - FED, BAILOUTS, FOREIGN AID, SUBSIDIES, INFLATION

CENTRAL BANKING: Small is beautiful", wrote Prof. Schumacher, and by this three-word aphorism, acquired more fame than by his big books. Cannot our politicians and economists see that the principle applies to banks as well? When this truth glimmers in on them, they may discover that it was state interference that gave us bank monopoly, and so gave rise to all the other monopolies." - Henry Meulen, THE INDIVIDUALIST, 6/78, p. 27. - See: ­DECENTRALISATION, MONEY MONOPOLY, NOTE ISSUE MONOPOLY.

CENTRAL BANKING: Somewhat decentralized central banking is still central banking and not free banking. - J.Z., 26.8.91. - Classical instance: The Federal Reserve System of the U.S. - Some have misread the FED so far that they think it is a private and capitalistic bank. Some still remain unaware of its legal tender and of its monopoly power, although they have handled its money often enough and have experienced the result of its actions. The Federal Reserve Act of 1913 and all its amendments, are so badly publicized that I have come across a copy of it only once, in the hands of a Social Credit advocate. The issue monopoly clause of it was so well hidden that I could not find it there in a hurry. That may have been intentional or the result of the usual bureaucratic bungling even in drafting legislation. - J.Z., 26.8.02. DECENTRALIZATION

CENTRAL BANKING: Somewhere and some years ago I found a hint that a central bank has been instructed to stop payments of the accounts of all outlawed groups. Thus, merely by one of an avalanche of interventionist laws, which no one has the time to fully peruse, any group could be outlawed and its bank accounts confiscated. The abuse potential of this power against political opponents is immense. Are ordinary criminals, who committed crimes of violence, treated as severely? Are the criminals in office so treated? - J.Z., 1.5.97. - ACCOUNTS OF OUTLAWED GROUPS

CENTRAL BANKING: The central bank, through its issue monopoly and legal tender power, has coercively and parasitically inserted itself as a third party into almost every economic transaction, exploits almost all of us to its own advantage and at the expense of our rights, liberties, security, property and earnings, keeping the economy unbalanced, throwing it from one crisis into another and provides us only with the illusion that a uniform currency would be a great benefit for us, and the illusion that it and only it could manage to provide a sound currency, although it has never delivered one so far but has destabilised the monetary system as much as possible. This system is legally upheld, no matter how wrong, mismanaged and uneconomic it is, for the whole economy and each of its participants. Those in charge of it seem to have adopted the motto of a French king before the French Revolution: "L'etat, c'est moi!" and: "Apres nous la deluge!" (I am the State! - The great flood will come - but only after me!) -That any person or institution with as great powers could become so corrupted and conceited is humanly understandable. But that people and even scholars put up with this, not only for years but for decades, for generations, is not as comprehensible. Most totalitarian regimes have by now been overthrown. The rest might follow, soon. However, we have established and retained their most totalitarian institution, everywhere, even in the supposedly free West! - I, too, am human, but this is all too inhumane and alien to me. - J. Z., 18.4.93, 2.5.97.

CENTRAL BANKING: The central banking system did not and cannot provide the jobs, crisis prevention, economic development, stable currency, prosperity, justice, efficiency, honesty, self-control and fairness that was promised upon its establishment and expected in its legal and juridical maintenance. Its record is poor in every respect – and, nevertheless, it has been coercively and monopolistically upheld for about a century or more almost everywhere. It provides an efficient machinery for man-made economic disasters, also, all too often, with terrible political consequences for whole populations. It is the moral equivalent to a man-made pest or epidemic being artificially, legally and coercively introduced and continued. – Two of its purely economic consequences, namely the Great Inflation and the Great Depression, in Germany, cost Germany as much as did WW I. They also lead to the rise of the Nazi Regime and WW II. and their consequences. – And yet this system is still constitutionally, legally, juridically and “scientifically” upheld and defended almost everywhere, by most of the living and supposed experts and most of the publicists! – Also tolerated by most of its all too ignorant, prejudiced and disinterested victims. It can be continued as long as its victims do not take a sufficient interest in their own affairs and do not even realized how much they are victimized by central banking. - J.Z., 24.2.10, 25.9.10. - MONETARY DESPOTISM, MONEY MONOPOLY, CURRENCY MONOPOLY

CENTRAL BANKING: The central banking system did not freely “develop” but was, rather, legally but unlawfully (morally and ethically quite wrongly) imposed, without the informed consent of all of its victims, who are still not free to drop out from under it and adopt for themselves alternative systems, better or worse ones, as soon and as long as they wish to. – J.Z., 14.5.10, 25.9.10.

CENTRAL BANKING: The central banks are so useless that they cannot even make use of all willing and available labor and skills, of all the services and goods offered for sale, of all the machines, workshops and offices available for productive efforts, not even for 8 hours a day, far less for 24 hours a day. - Instead, in their helplessness, ignorance and prejudices, the juggle with interest rates, play with selling or buying securities and offer promises and denials of their guilt and the wrongfulness of their monetary and currency policies, while almost continuously, apart from their credit restrictions, depreciating their fiat monopoly paper money. In the absence of free market rating for their paper money against a sound value standard, also of a well run tax foundation for their note issues, and of competing internal currencies and value standards, they do not even know how much more or less they ought to issue of their forced currency and where and when they ought to do so. - Nor are they able and willing to systematically study the alternatives to their own rule, although, surprisingly, some of their employees have managed to publish some papers on free banking in some of their periodicals. So, at least, not all of them do systematically suppress all freedom of expression and information in this sphere. But under the present conditions of monetary immaturity, from top to bottom, they do not have to do so, either, to maintain themselves in power. - However, one can also charge most opponents central banking with having insufficiently studied the alternatives to it. - J.Z., 22.4.01, 24.8.02. - UNEMPLOYMENT, SALES DIFFICULTIES, DEPRESSIONS

CENTRAL BANKING: The central banks print more of their depreciating currencies, because their issue monopoly and legal tender power allows them to do so, than all the criminal forgers in their countries do. Alas, they can't be accused of forgeries since one can hardly forge one's own notes. But they do certainly operate under false pretences, namely their pretended willingness and ability to prevent deflations, inflations and stagflations. Central banks also pretend to be able to help governments out of their financial difficulties without depreciating their forced and exclusive currencies. - J. Z., 8.11.92 & 15.4.97. - & FORGERIES

CENTRAL BANKING: The communist central banking system, as well as the communist system as a whole, like any other system or belief-construction or utopia, should be confined to volunteers only and that requires exterritorial autonomy or experimental freedom for all communities. - J.Z., 23.9.99, 24.8.02, 30.5.11. - COMMUNISM, VOLUNTARISM, PANARCHISM, MONETARY FREEDOM

CENTRAL BANKING: The effects of central banking, with its monopoly money and its legal tender or forced currency aspect over the last 100 years should be compiled and published in a table for at least all of the major countries, to help demolish he wrong image too many people still have of central banks as rightful and efficient guardians of national currencies. The losses of their victims might be expressed in billions of their currencies, in ounces of gold, or in reductions of their purchasing power in percentages or fractions of percentages. The table should also indicate how often in this century these imposed losses occurred in each country, with deflations, and inflations separately listed, perhaps also the stagflation periods. – Most people, if at all, are aware of some of these losses only in their own countries and not of the fact that the same cause caused the same problems and losses in all other countries as well. The record for inflation may still be held by a Hungarian one unless Zimbabwe has recently exceeded even it. The German Inflation from 1914 to 1923 may by now be only in third place. - See under Inflation. – J.Z., 1.11.10.

CENTRAL BANKING: The governments' central banks are reducing the value of their paper currencies almost all the time (at different rates), although they are supposed to guard their currencies against depreciation. - J.Z., 20.12.01. - As usual, governments achieve the opposite of what they aimed to achieve by their legislation, "measures" and "policies". In addition, central banking has achieved and maintained large degrees of involuntary unemployment over long periods and the persistence of some involuntary unemployment even during its "boom" periods. It has made all economic crises worse. It has also prevented the rapid and automatic ending and prevention of depressions, deflations and inflations by the self-help methods of monetary freedom. Regarding financial freedom and at least in countries like Germany, it has also outlawed value-preserving clauses or made them conditional upon permissions granted by the central bank, which are almost never granted. However, the customary, traditional or legislated exclusive currency condition of metallic currencies, and of metallic redemption currencies and lack of clearing knowledge, techniques and facilities, had also caused frequent and persistent deflations before central banking arose to its present dominant position. - J.Z., 26.8.02, 30.5.11. - CENTRAL BANKS AS "GUARDIANS" OF GOVERNMENTAL PAPER CURRENCIES

CENTRAL BANKING: The governments of the world must now get out of banking and trade.” – Secretary of the Treasury, Carter Glass, in 1919. – Quoted in p. 59 of: Anthony Sampson, The Money Changers. Bankers in a Dangerous World. Coronet Books, Hodder and Stoughton, 1981, 1982.

CENTRAL BANKING: initial plan was to destabilize the British economy by dropping the notes from aircraft..." But remember, when Ben Bernanke drops notes from a helicopter it's a tremendous boon for the economy! - Ron Manners: - Adolf Hitler's fake British bank notes expected to fetch £2k at auction - - Hitler ordered millions of the notes, in £5, £10, £20 and £50 denominations to be printed in 1942. But British spies got wind of the idea and intercepted the shipment. - Kevin Kartun Operation Bernhard portrayed in the academy award winning movie "The Counterfeiters". - John Zube It is central banking and legal tender laws that make such abuses possible. - It is much harder to impossible to forge a multitude of competitively issued private currencies, all only with a limited circulation area and circulation period. - LEGAL TENDER, FORGERY OF AN ENEMY REGIME'S MONOPOLY MONEY, STIMULUS PAYMENTS, GREENBACKISM, INFLATIONISM, MONETIZING GOVERNMENT DEBTS, FIAT MONEY, LEGAL TENDER & MONOPOLY MONEY.

CENTRAL BANKING: The management of money has not improved its quality. - Sir Ernest Benn, The State the Enemy, cover. - He should have said: Centralised and coercive management of money. He might have added: It has not managed to provide the correct but for each day fluctuating required quantities of money, either. Instead, it over-supplied or under-supplied its exclusive and forced currency for all too long, almost as a rule. - J. Z., n.d. &15.4.97, 30.5.11.

CENTRAL BANKING: The most important, centralistic and monopolistic economic institution of the Australian Federal Government is its Reserve Bank. - We should aim to break its stranglehold on the economy, not by destroying it but by depriving it of its privileges and powers, by introducing free and decentralised competition against it. Thereby we could overcome the depression, unemployment and inflation it has caused. - Try exchanging without money and you will soon find out how large your dependency on the central bank and its exclusive currency has become. - Allow any employer to offer, in payment of wages and any employee to accept any other exchange medium that is agreeable to him. Do not force both to deal only in a monopolistic and also rapidly deteriorating and otherwise mismanaged exchange medium and value standard. Let's have the exchange media as competitively supplied as knives and forks are - and we will have no shortage of them, either. - With sufficient sound exchange media, free and sound value-standard reckoning, free pricing and when no job or trade is closed to anyone by any monopolies, then unemployment could be done away with within hours to days in almost all cases - by people who understand and are free to apply the monetary freedom techniques. - J.Z., 1985, 30.5.11. - CENTRALISM, MONOPOLISM, THE POWER OF IT

CENTRAL BANKING: The Reserve Bank (central bank of Australia) proposed to reduce unemployment benefits in order to reduce unemployment. While it is true that one can get almost any degree of unemployment that one is able and willing to pay for, the total abolition of involuntary unemployment should remain the aim. Here the central bank is the main culprit, with regard to unemployment, although subsidies, price controls, wage controls, coercive unionism, collective bargaining, etc., do also play a role. Typically, the Reserve Bank did not propose the reduction or abolition of its monopoly, privileges and regulatory powers, as means towards the abolition of unemployment. Most of its directors and employees probably still imagine that it could reduce rather than cause and increase unemployment. Nor did it propose the transformation of the unemployment benefits from handouts into credits, a thought which ought not to be way-out for any bank. But then only the central banks have access to the note printing presses for their exclusive and forced currency. With that power, they do not seriously consider the alternative of permitting employers to pay and employees to be paid in alternative and competing currencies. - To sort out the moochers (dole bludgers etc., the voluntarily unemployed) from the genuinely unemployed, I would rather propose an increase in unemployment benefits but, at the same time, make them repayable by the unemployed, even if he might have to sell his house and car for this purpose. Moreover, he should see to it that his family members and friends do guaranty his repayment, if necessary. That will tend to spur them into accepting almost any job they can get and looking for any job opening. That would also induce them to accept lower wages or salaries. But this would still not suffice to induce most of them to ponder monetary and financial freedom as the main cure for unemployment. With the gambling spirit probably still rather large among the unemployed, too, perhaps it might be worthwhile to get them involved in a prize competition for the best ideas, not so far refuted in literature and practice, to end unemployment. Let them seriously search for such ideas and practices. Let us say that there are 1 million unemployed in Australia (there may be, governments tend to understate this case). Then, if every unemployed just contributed 1 dollar a month, there could be monthly prizes of 1 million for the best idea of the month. The scheme could even be judged by the unemployed themselves, voting on each scheme, with its pro and con, as compiled by them. To simplify the voting process, one could use the jury system. 12 of them would have to agree, unanimously, on the best proposal for the month. Such jury sessions should be publicised as much as possible. Let thus the finding and proving of the cure for unemployment be the job, as far as possible, of the unemployed themselves - and of anyone else really interested in this question. - The news on the Reserve Bank proposal was aired on radio news on 13 Dec.,1993. - J. Z., 23.4.97, 30.5.11. - I may be the only surviving member of the Berlin Society of 1952 to Fight the Causes of Unemployment. It had much to say on this subject which is new still to most people, even to those who consider themselves to be experts on this subject. See the details in my PEACE PLANS series, all on microfiche. - J. Z. - Later I suggested, somewhere, that half of the money so collected should be used for the prize money for the best proposal and the other half for the collection, ordering and publishing of all these ideas and opinions in the cheapest media, e.g. on microfiche, floppy disks and CD-ROMs, even paying some of the unemployed for full-time work on this library, archiving, editing and publishing project. As Ulrich von Beckerath frequently remarked: Combined purchasing power is one of the greatest and also one of the least utilised forces in the world. - J. Z., 7.9.02, 30.5.11. - REDUCTION OR INCREASE IN UNEMPLOYMENT BENEFITS, THEIR TRANSFORMATION FROM HANDOUTS INTO CREDITS & THE DEGREE OF UNEMPLOYMENT, PRIZE COMPETITION BY THE UNEMPLOYED ON IDEAS HOW TO ABOLISH UNEMPLOYMENT.

CENTRAL BANKING: The very cheek of the central banks of governments, forcing themselves as a monopoly mediators into every monetary exchange transaction and into every value standard measurement within a country and this with a very inferior and fast depreciating means of exchange and a rubber band and manipulated value standard that is close to the worst of all which have ever been imagined and practised. And with all this they still pretend to be able and willing to sufficiently supply the market with exchange media and with a sound currency. It is like a highwayman monopolising crime in a country and then pretending to be a crime fighter. Could anyone possibly have accumulated more disqualifications for the job of supplying a sound value standard and sufficient exchange media, than have the central banks, in every country? - J. Z., 19.8.92, 23.4.97.

CENTRAL BANKING: The wrongfully legalized money issue monopoly of central banks makes them feel so strong and confident, while territorial statism is still popular, that they often do not even bother to suppress some private monetary experiments, holding that lack of interest in them, combined with their remaining flaws will prevent them from spreading widely and lead them soon to their demise. Mostly they are right with this assumption. The defence of the sound monetary freedom experiments against prejudices of public opinion and against political, police and juridical suppression would need to well prepared and organized long in advance of the need for it. – J.Z., 12.2.10, 24.9.10. - MONETARY FREEDOM, MONETARY EXPERIMENTS

CENTRAL BANKING: There is not a single good reason to confine monetary, clearing or credit competition or cooperative credit and monetary arrangements to international competition between central banks, their exclusive and forced currencies, for whole national territories and their exclusive and enforced paper "value standards" only. That is like considering politics only from the point of view of despotism and economics only from that of command economies. Those with as limited horizons should only be free to limit their own notions and actions to their own limited spheres and associations of volunteers, instead of going on to legally and territorially impose them upon peaceful dissenters and involuntary victims. - J. Z., 18.3.97, 30.5.11.

CENTRAL BANKING: This is a great... | Facebook - - Cached - Free-market money and banking! Its time we break free from the chains of soviet interest rates and cash creation. It's not enough to audit the Federal ... - FREE MARKET MONEY, CENTRAL BANKING, COMMUNISM, MARXISM, MONETARY DESPOTISM, MONETARY & CURRENCY LIBERATION

CENTRAL BANKING: Totalitarian communism in East and West, go on and on, at least in the following forms: the monetary despotism of central banking (See point 5 of the platform of the Communist Manifesto), territorialism, taxation, welfare statism, collective decision-making on war and peace, armament and disarmament, international treaties, economic policies, migration and trade, labor, housing, roads, transport, buildings, libraries, postal services, policing, research and education.  Collectivist mass murder preparations are also very much "scientifically advanced." Their targets: the masses of the people, rather than their Big Brothers and "statesmen". (By comparison the mass murder camps of the Nazi regime were primitive.) Dozens to hundreds of millions of people can now be murdered by "great leaders" and button pushers in minutes to hours, largely in automated ways. And such powers are hardly questioned at all. To that extent communism hasn't fallen but gained an almost universal victory over public opinion, public actions and public institutions. Naturally, all the problems inevitably associated with these communistic institutions go on and on. - J.Z., 26.8.91, 24.8.02. - & COMMUNISM, EAST & WEST

CENTRAL BANKING: Trust any central banks to depreciate any national currency fast, at least somewhat, if not very extensively. – If you should find an exception to this rule, lasting for years to decades, please, let me know. - J.Z., 1.11.10.

CENTRAL BANKING: Under government patronage the monetary system has grown to great complexity (*), but so little private experimentation and selection among alternative means has ever been permitted that we still do not quite know what good money would be - or how good it could be. (**) Nor is such interference and monopoly a recent creation: it occurred almost as soon as coinage was adopted as a generally accepted medium of exchange. Though an indispensable requirement for the functioning of an extensive order of cooperation of free people, money has almost from its first appearance been so shamelessly abused by governments that it has become the prime source of disturbance of all self-ordering processes in the extended order of human cooperation. The history of government management of money has, except for a few short happy periods, been one of incessant fraud and deception. In this respect, governments have proved far more immoral than any private agency supplying distinct kinds of money in competition possibly could have been. I have suggested elsewhere, and will not argue again here, that the market economy might well be better able to develop its potentialities if government monopoly of money were abolished." (Hayek, 1776/78, and 1986: 8-10.) - HAYEK, F. A., The Fatal Conceit, 103/104. - (*) This complexity is built upon simple despotic foundations: Note issue monopoly and forced acceptance and forced value or legal tender for the notes. The rest is more or less only window-dressing and false pretences. - (**) Illegally numerous monetary experiments have taken place. But precisely because they were not legal and not supported by most scholars, they did not last long enough and the records of these experiments are rather incomplete. Moreover, they were never fully gathered together, translated into the major languages and then fully explored theoretically. But scholars like Ulrich von Beckerath, in a life-long effort, have come as close to such an exploration and to sound theoretical ­conclusions based upon them, as an individual, largely on his own, could. - J. Z., 27.5.97. - & MONETARY DESPOTISM, MONETARY FREEDOM, EXPERIMENTAL FREEDOM, MONETARY LIBERATION, VS. CENTRAL BANKING, CURRENCY POLICIES, INTEREST RATE POLICIES

CENTRAL BANKING: Using a central bank's banknotes it is often easy to get credit paid in them - but hard to pay it back because these notes, once spent, do not return automatically to the spender. E.g., tax collectors and other users, in other localities and industries do "waylay" them. Trade becomes a struggle for a scarce exclusive currency that is well supplied only in those channels favoured by the central bank system and governments spending its notes after first extracting them from almost everyone or simply printing them. Self-issued notes or notes locally issued in association with others would return to the issuer or issuers, soon. - J. Z., 13.5.87, 9.5.97, 13.9.02. That describes only the deflationary and part of the stagflationary aspect of central banking. Under its inflations the debtors are allowed to pay back their debts nominally, in depreciated currencies. Naturally, as a result they find it harder to get any further credits. - J.Z., 30.5.11 - NOTE ISSUE MONOPOLY, REFLUX, DEFLATION, INFLATION

CENTRAL BANKING: Was there ever a large-scale and persistent paper money inflation, inflating the whole price and wage level, without the issue monopoly and legal tender? Economists and historians should be able and willing to check these relationships out. If the finding is that there was not and there cannot be an inflation without these two preconditions, by the very nature of monetary exchanges under freedom, then these findings should be publicised and lead to resistance against monetary despotism. Can they really call themselves economists and historians if they do not engage in such surveys? - J. Z., 15.4.97, 30.4.11. - LEGAL TENDER & ISSUE MONOPOLY, INFLATION

CENTRAL BANKING: Why Do Central Banks Exist - › Business/LawFinance - Cached - 5 Nov 2009By contrasting free market money and banking with State-controlled systems, we see that central banks exist to benefit the government, ...

CHEAP & EASY MONIES: Both, cheap and easy money could be either sound or unsound money. That to use these and similar terms without adding a qualification does not make sense. They could be optional or forced currencies, currencies with a free market rate or with a forced value, currencies that must be accepted in a country or that are competitive and can be refused and discounted. They could have a sound or an unsound value standard. The same applies to terms like “soft” and “hard” currencies. Shells, stone and diamonds, used as money, would certainly be hard but not necessarily very useful as currency. Pure gold coins, even copper coins are relatively soft and yet considered as kinds of “hard” money, while iron or nickel money would be harder and yet by some considered to be soft and cheap currencies. – Wooden nickels or plastic token money would be “soft” money but could have a sound shop foundation and could be accepted e.g. for wanted consumer goods and services, priced out in gold weight units, for which such tokens would be accepted at their nominal gold weight value. - In each sphere appropriate terms should be used rather than prejudices and misleading ones. – J.Z., 20.1.10, 1.11.10.

CHEAP & EASY MONIES: Those, who thoughtlessly condemn all of them, wholesale, have failed to sufficiently distinguished between their unsound and their sound forms, issues and reflux arrangements and their varied value standards. If an exchange medium and its value standard are sound, then the cheaper and more easily it can be obtained, with minimum transaction costs, e.g. through print on paper or in effective digital form, then the better it would be for all its users. It is a cheap and misleading attack to thus try to deny the possibility that cheap and easy paper money issues can be quite sound in their value standard, without metallic redemptionism by their issuers, upon demand by the note holder, that they can be hard rather than soft currencies and reveals a great ignorance and prejudice by the user of such terms, as if they were indicating, in every case, a genuine crime with involuntary victims. – If such attacks were only directed against the issues of central banks then they would be justified for most of them, for most periods. Alas, they are also used against many of the rightful and economic options of free banking and monetary freedom and thus, at least to some extent, support monetary despotism, even if it is “only” that of exclusive gold coins and gold certificates. - J.Z., 1.11.10. – EASY, CHEAP, SOFT, HARD MONEY, PAPER

CHEAP & EASY MONIES: When “cheap” and “easy” money is indiscriminately attacked, then usually only the “cheap and easy” money of monetary despotism is meant, which is cheap and easy for politicians and central bankers but not cheap and easy money for their victims, while the cheap and easy as well as sound money issue and money reflux options of full monetary freedom are simply ignored. The complexities of all forms of money cannot be “cheaply and easily” covered by using such misleading terms. – J.Z., 2.11.10. – EASY MONEY, SOFT MONEY, SOUND MONEY, UNSOUND MONEY

CHEAP MONEY: The “cheap”, exclusive and forced currency money of the central banks of territorial governments is, usually very expensive for its subjects and victims – in the long run. To that extent it is quite wrong to call it “cheap” money. It is cheap only for the issuer. Mises remarked somewhere: I takes a government to turn two valuable commodities like paper and ink into worthless scrap. – Quoted only from my flawed memory. – Money that is merely a clearing certificate or a goods warrant and service voucher can be cheap to produce and yet can honestly reckon and account in e.g. gold weigh value units, kept in par with this, its nominal value and be accepted for the goods and services that its issuers do offer, without any of the issuers or acceptors possessing even a single gold coin. – It bugs me that the gold bugs have still not realized this cheap, honest and efficient gold standard currency and exchange medium or clearing certificate option but continue to ignore it, in the vast majority of all cases. - J.Z., 2.6.10, 29.7.10. – LEGAL TENDER, MONOPOLY MONEY, FORCED CURRENCY, COMPULSORY ACCEPTANCE & FORCED VALUE

CHEAP MONEY: The cheap money of monetary freedom is different from the cheap money of monetary despotism. It would not and could not lead to inflation and unjustified economic investments. - J. Z., 1.12.96. Its production and acquisition would be cheap. It would be relatively cheap to get it accepted in your local community. And it would have a cheap, easy and fast reflux to you, for its redemption into the goods and services that are the basis of your note issues. You would not have to pay a monopoly interest rate for exclusive and forced exchange media provided by a monopolistic and coercive central bank. Your own money would be cheaper and better for your purposes and those of your customers. - J. Z., 20.3.97.

CHEAP MONEY: To attack some monies as "cheap" money is a rather cheap attack. Neither cheapness nor expensiveness is decisive for money but, rather, its usefulness, soundness, competitiveness, free market rating for it, refusability, discountability, availability or unavailability, the ability or inability to supply it oneself or in association with others, its acceptability to sovereign consumers, at least locally, e.g. in wage payments., and, quite basically, its rightfulness or honesty, its degree of "optionality" or "voluntarism" or "free choice" or "competition", as opposed to coercion, intolerance and despotism. Indeed, some alternative currencies, that CAN be as good as gold coins, although not convertible into gold coins by the issuer but only on the free gold market, are cheap to produce, compared with gold coins and gold certificates. But that does not turn them into cheap and nasty money. Indeed, central banks that can pump their forced and exclusive currency into circulation, almost without limits, will find their paper currency cheap to produce and circulate - until the last stages of the inflations they do thus cause or until other effects of inflation begin to matter considerably, e.g. the results of price controls and rationing, the cessation of credits on a paper money basis, and finally even the severely increased printing costs for the notes. To that extent its "cheap" money can very often become very expensive for a government. It might even be overthrown, if not immediately, by a crackpot like Hitler & Co, who tried it in 1923, but, largely as a result of this inflation- and the subsequent monetary crisis of the Great depression, by the same crackpot dictator, 10 years later. Money that is very expensive to obtain and with which an economy cannot be fully supplied, can reduce that economy to degrees of barter and to emergency sales prices. In such situations - until normal marketing conditions for goods, services and labour are restored, the availability of some form of cheap money, even if it is not ideal money, would be widely welcomed. But governments in such situations make neither the own exclusive currency sufficiently accessible nor do they permit or encourage unofficial competitive supplies of exchange media. (On the contrary, in the last years of the Weimar Republic the suppression of alternative currencies reached new heights in legal and juridical comprehensiveness.) Once the "cheap" (despotic) money of monetary despotism has expropriated creditors (including all wage and salary and pension recipients) by the millions, a rather costly treatment for them, the value of that currency will finally come close to zero and to total refusals to accept it. Already in the meantime many people will resort largely to primitive barter. - The money of monetary freedom is physically cheap to produce, too. Only some forms of it are believed, by their supporters, to require gold treasures, circulating gold coins and convertibility into gold. Others can do without that, even while continuing gold weight reckoning and would thus be much cheaper to provide. The cheapness of aluminium via modern production methods has not made it valueless but much more widely useful and used. - One should also distinguish between the low production costs and high production costs of money tokens and low and high purchasing power of them. Low production costs for monetary freedom issues do not mean that they have to have a low purchasing power. And high production costs of notes during a galloping inflation does not meant that they do have a high purchasing power, even though their denominations are very high. The largest German RM note of 1923 was 100 billion RM, worth then only ca. 7 pounds sterling. Poor people, with a few dollars or pounds, could then live in luxury in Germany, although their foreign exchange paper money was also very cheaply produced. - In general, the mere production costs of sound exchange media should be as low as possible and their purchasing power should be as high and stable as possible. - J. Z., 13.1.94, 1.5.97.

CHEQUES FOR CLEARING ONLY: They do not have to be covered by legal tender savings or deposits or gold or silver reserves and do not have to be redeemed in any rare metal. It is enough if they are useful enough for clearing settlements, i.e. if the cheque account holder gets enough credits written into his cheque account from the sales of his goods, services or labour, which here, too, form the real cover for the value of his cheques. Without them his cheque account would soon run red. - J.Z., 3/97.

CHEVALIER, MICHAEL, French economist who opposed the note issue monopoly - according to Rist.

CHICAGOMORTGAGESPECIALIST.COM: The Myth of the Free Market – Money, Interest and Power! -  - Cached - 3 Jul 2011 – A video to send to those who think the free market produced all the recent economic catastrophes… …and happy new year to all my listeners ...

CHILD LABOUR: Child labour, voluntary and unexploited, should be part of a child's learning process and could make a child financially independent of its parents at an early stage, which would help to avoid much friction and frustrations between the generations and also among parents in nuclear families. When unemployment is wide-spread, then children and juveniles are kept out of the labour market by compulsory schooling and "protective" child labour laws, like minimum wages, set about the market level for their work contributions. (In the average case, not in all individual cases. Under freedom of contract for wages many able and willing young people could earn much more than their present minimum wage. But now neither they nor their employers are given the chance to find out how productive they can be.) When labour is still very unproductive and insufficiently supplied with capital and also forced to be sold only for a forced and exclusive currency, then the income of a family was often insufficient and so the children had to be sent work to work. Now they are not allowed to and their time is taken up by compulsory school attendance and imposed homework so that for much of the rest of the time they try to escape into games, entertainment and play. (Just like adults, who are bored or stressed by their job situations.) Neither of these are very educational and a good substitute for giving children the chance to become early-on involved in various self-supporting labours that are self-chosen and naturally educational. Under full employment they could change their jobs e.g. every week, if they wanted to, to give them a more varied although not a thorough experience with them - but they might find their true vocation in this way. That they should no be exposed to great risk to life, limb and health is self-evident. Parents and guardians should have a veto there. Under monetary and financial freedom parents would, as a rule, be able to earn enough to support their children and they would remain their guarantors and guardians and not forced, by their poverty to send their children to go to work just to earn enough money to help support the family. Most would see the value of unforced labour for their children. Moreover, then there would be many more part-time jobs. A few hours of work a day, or for some days a week, is more bearable for them than 40 hours or more a week. Furthermore, upbringing and education loans would be much easier to obtain and easier to repay later, by the parents or the children or both. One child charity asks currently for $ 1 a day to support a child in an underdeveloped country. I feel certain that FREE children (ECONOMICALLY FREE, and that would also require full monetary and financial freedom) would be able to earn much more than $ 1 in no more than 1-4 hours of daily work, if allowed to do so and most of them would tend to learn more from this than they do now in schools (in their "12 year sentences"). At the same time, competing schools and education systems, could be made much more attractive for them, give them a choice and their lessons could also be paid for by the children themselves, so low could they be, if they were organized e.g. under the monitor system of Joseph Lancaster. (Or, nowadays, digitally. - J.Z., 30.5.11.) High school and university students, being already literate (only somewhat literate, under present government schooling), would find it much easier to support themselves through part-time work, with chosen stretches of full time work between stretches of full time studies. Learning is more and more becoming a life-long process, anyhow, for all, since the job skills and knowledge required are continuously changing, too. The fixed, long and compulsory school years are a form of unjustified enslavement for children and one of the major causes of juvenile delinquency, escape into drugs and alcohol, mind-numbing and hearing-damaging music and of unnatural friction between children and parents. It also does most children good when they are not only disciplined by parents and teachers but by job, trade and market requirements, as spenders of their self-earned money etc., becoming as early as possible self-responsible instead of delaying that more and more. How many of them are e.g. killed on the road, because the driving option was withheld from them until they were almost 17? I would like to see a statistics comparing country children, who often drive tractors etc. on their parent's farms, much earlier, with the driving records of city children, forcefully kept from driving until almost 17. For any suppression of natural urges there is always a price to be paid. Their internal control and naturally learned self-control is much more preferable then the controls imposed by compulsory school attendance and government run or regulated schools. - J. Z., 4.5.97, 13.9.02. - The existing controls by teachers have not even eliminated bullying. - J.Z., 30.5.11. - CHILD LABOUR LAW, UNEMPLOYMENT & MONETARY FREEDOM

CHILD LABOUR: Why are most kids not productive most of the time? Because we are prepared to subsidize their idleness, although there would be plenty of jobs for them in house and garden, industry, business and agriculture, all voluntary, part time, market rated, if only all restrictions upon their creative and productive activities, including taxation, licensing, labour laws, wage controls etc., were abolished. Only their guardians should be free to set rightful limits upon their activities. - J. Z., 16.3.97.

CHILDREN AS FREE BANKERS? To what extent would they be immune from the penalties for infringing the money monopoly that would fall upon adults? Could they be penalised at all? Would their parents be? Could children be trained for such freedom actions? (That would certainly be more rightful and useful than training them in the use of automatic weapons, as some regimes do. - J. Z., 10.9.02.) Would they be interested enough to try? - One should try to write a primer, interesting and understood even by children, on this option. It should point out the connection between  unemployment and child abuse and youth suicides, the especially high rates of unemployment among young people, the educational options of free child labour, the economic independence they could acquire as such bankers and as children, whose jobs would be made possible by such a bank. Their right not to be taxed in their productive efforts should be stressed. A bill of rights for children should be attached. The project should be discussed with children, e.g. on the Internet, to which many school children now have access. - J. Z., 2.3.95 & 27.5.97. - See: START-UP OPTIONS, OLD PEOPLE'S BANK OF ISSUE, WOMEN'S BANK OF ISSUE, ABORIGINES' BANK OF ISSUE, RED INDIAN BANKS OF ISSUE, IN RESERVATIONS, NEGRO BANKS OF ISSUE?

CHINA, UNEMPLOYMENT: 200 MILLION UNEMPLOYED: "China admits 200 m people unemployed." Headline in BANGKOK POST, Wednesday, March 3, 1993, p. 18: Peking, (UPI) - A government-run newspaper admitted yesterday that China has more than 200 million unemployed and called on the government to replace its failed social welfare policies with neo-classical economic solutions to the growing problem. - The official ECONOMIC DAILY asserted that misleading government figures are covering up whopping unemployment figures equivalent to more than one-sixth of the nation-wide population.... No statistics were given on the national working-age population, but 200 million unemployed could translate into an unemployment rate of as high as 30% if western statistical methods are used. ... The Ministry of Labour has officially admitted to only a 2.3% unemployment rate nation-wide for the last few years, but these figures have long been considered suspect by outside experts. ... But most of the unemployed are made up of farmers, who migrate by the hundreds of thousands into cities to look for jobs. ..." - That is like the population of 4 large nations. Add their dependants! What a bankruptcy declaration for a communist regime, a supposed dictatorship of the proletariat. With all the political and economic powers imaginable in its hands, it still does not manage to employ and thus, according to its notions and practices, exploit as many unemployed. Even the millions of political prisoners in the forced labour camps and the dozens of millions of supposed "class enemies", which the regime previously murdered, have not prevented such an enormous failure rate. - That many unemployed does automatically suggest: Why do as many people, mostly intelligent and productive people not employ each other, i.e., produce and exchange as best as they can? What hinders them, apart from their ignorance, increased by the mis-education system of the regime? - Admittedly, in China they do encounter not only monetary and financial despotism but more than the usual other economic interventionism. Obviously, when the government is not able or willing to employ them, they ought to be free to assert their right and liberty to employ themselves, as best as they can and this independent of any government laws, policies, measures, institutions, especially the monetary, financial and trading and taxing laws of their government. As many people, the equivalent of several large nations, ought to be able to arrange for division of labour and free exchanges among themselves, if not forcefully hindered to do so, and thus to employ themselves fully and productively and even prosper. Naturally, there ought to be no hard and fast borders around them. They should not be reduced to a ghetto existence. In other words, they should also be free to trade with "outsiders", to mutual benefit. Self-employment to mutual benefit and among themselves is only suggested here as a thought-model to break through the mentality that either the central government "provides" jobs or private employers do or one is completely helpless and must remain unemployed. China has a long tradition with various monetary experiments. Its copper tael currency, using copper by weight as an accounting unit, has for centuries helped Chinese to become independent in their value standard reckoning from the depreciated standard their governments provided. Private and competitive note issues go back, according to one book in my possession, to about 1300 AD - but were suppressed by the paper money despotism of the ruling Mongols. - The communists may talk about production for use, not for profit. But they do not enable these 200 million to produce and exchange for their own use and to profit thereby. They should not be forced for their production and exchanges to use exclusive currency of the Communist Regime which is also a legal tender one has made and kept them unemployed - and exploited and oppressed for so long and to such an extent. Allow them to pay taxes with their own currencies - if they cannot avoid tax payments at all. - With as many Chinese producing and exchanging independently from the regime, even the communist regime could benefit much more internal and exterritorially autonomous economic communities, practising free enterprise, and free trade internally and externally, under the practices of full monetary and financial freedom, than it has benefited, over the last few decades, from trade with Hong Kong. The communist regime, in its own interest, has tolerated this trade with a much freer Hong Kong, on the basis of a territorial separation, until now, when the treaty with the U.K. runs out and, for its future, it has promised to continue its economic liberty. It has also permitted various industrial and free trade zones (a little bit liberated from its economic despotism) in its domain, out of sheer necessity. Hong Kong, when it was leased, was a largely rocky, mountainous and infertile area. It showed something of what people can do, if only somewhat set free. Instead of a territorial liberation let there be a personal one, based on individual and groups secessionism, combined with exterritorial autonomy for communities of volunteers - starting with those the regime is helpless to help. - Naturally, this would and should ultimately have political consequences, too. - I for one would favour allowing them to produce or purchase arms for their defence against continued aggressions and interventions by a government that has made and kept them unemployed. Allow them to trade freely with the world and to refuse to trade , if they want to, with the Communist Regime, which kept them largely enslaved but would not even supply them with the life support of slave labour! They should be free to refuse to pay taxes to Peking and to levy any, if they want to, only for their own purposes. They should be free to declare their political independence, too. Also, to federate freely, if they want to, with all other more or less free Chinese communities in the rest of the world - and all other somewhat free communities. - Once they have learned to support themselves by their own labours, in a division of labour and free exchange process, then an army or self defence force or militia of millions of members, serving voluntarily and part time, a real "people's army", could serve for their defence, protecting their liberties. Among its rightful aims should also be full exterritorial autonomy for all the remaining communists and socialists and other ideological groups, all based completely on the free choices of sovereign individuals. That is not a declaration for a permanent civil war or party struggle but a declaration for a quite tolerant and permanent peace option, offering to everyone the government or society of his or her dreams. It would be the analogy to religious liberty or religious tolerance but this time in the political, economic and social (ideological) spheres. Chinese had much experience in the last 2 centuries with exterritorial or personal laws. Alas, these were, mostly, unilateral options for foreigners only. Chinese, unilaterally, could make them multilateral, for all kinds of Chinese groupings and for all kinds of foreigners, not only in China but in the rest of the world. (As the oldest continuous culture, with the longest economic, political and social experience, they should and could take the lead in this sphere. - J.Z., 16.9.02. - If the communist regime tried to suppress their self-help and autonomy efforts and defeated them in China, allow them to retreat to any other country, there going on to employ and support themselves, rather than becoming burdens for others as refugees under other regimes that also cause mass unemployment. They would probably gain much international sympathy if they formally declared their secession from the communist regime - but, at the same time, did not engage in any revenge or repression measures of remaining communists in their areas or spheres of influence but allowed them to continue to do their things to themselves, at their own risk and expense. On that basis they could minimise resistance against them and maximise the chances for Chinese people anywhere to become liberated, as far as they want to become liberated. - Any territorial "nation" is largely an involuntary conglomerate, too! If it has an unemployment rate of 1/6th, as the above quoted article suggested, then it is already in a potentially revolutionary situation. The Nazis rose to power on ca. 10% only. Obviously, friends and relatives of these 200 million victims and self-liberators would sympathise with them. Once monetarily and financially liberated, they could offer amnesty and jobs to the conscripts sent to fight against them, provided only that they either desert, let themselves be taken prisoners or declare themselves neutral. - Chinese people, if not lorded over by ideological fanatics, could also establish various self-management and cooperative production and consumer coop enterprises, very different from the governmental ones, with all individual and group incentives and rights maximised, rather than subjected to externally imposed bureaucratic plans, dictates and rules, so that the best ideas of e.g. alternative forms of socialism and communism (There exists even something that calls itself "libertarian communism"!) could also become, be realized by themselves and among themselves, on a quite voluntary basis,. In practice it would be found, I believe, that the best forms of "socialist" self-management practices are not greatly different from the internal best business practices of what has been called "free market capitalism", with its property, profit and free enterprise incentives, which were, alas, only realized in the "free" countries for a minority in every enterprise, instead of for everybody, from the messenger boy to the to manager. - J. Z., 24.5.97. Various exterritorial governments in exile of Chinese, in other countries, could and should be free to set attractive examples for alternative political, economic and social systems, all of them only for volunteers, thus demonstrating how they could peacefully coexist in the future China as well and also world-wide. - J.Z., 31.5.11. - LIBERATION, LIBERTARIAN REVOLUTION, SECESSIONISM, PANARCHISM

CHINA, UNEMPLOYMENT: Hong Kong Bank says in its latest CHINA MONTHLY REPORT that labour problems in the country have worsened but have only recently drawn major concern and attention. - The bank estimates that there are between 10 million and 20 million redundant workers in the State sector, with another 120 million in rural areas - figures which are growing each year." - Robin Brombi, "Bank warns on China's soaring unemployment." A photo accompanies the article with the inscription: Searching: Some of the 25,000 students who applied for 1500 jobs in Zhuhai zone. - THE AUSTRALIAN, 24.4.94. - How can one raise interest in the monetary freedom options in mainland China, or at least in Taiwan? Could only a revolutionary army be interested in them? If it could supply deserters and POW's almost instantly with productive jobs, then it might not have much fighting to do. - J. Z., 27.5.97. - Even our defence department should be interested in "armies" of unemployed, for another Hitler, this time with Chinese features, could turn them into conquering armies. Moreover, if we could supply any number of deserters and refugees very rapidly with productive and self-supporting jobs, by utilising especially all monetary and financial freedom options, then we would not have to fear any conscript armies or hordes of refugees. - J. Z., 10.9.02. - I wonder what its unemployment rates have been since then. - Has the part-liberation of the economy made a difference? At least monetary and financial despotism, apart from political despotism, do still remain. - J.Z., 31.5.11. - LIBERATION, DEFENCE & FULL EMPLOYMENT

CHINA: Can China Change the Rules of Global Capitalism? - - Cached - 13 Jul 2009 – Free market money - at least in a world rife with mistrust about government money-is going to be gold and silver. ... - People of China (at least 56 different ethnic groups, not to speak of religious and ideological diversity) had, historically, a very interesting and varied monetary freedom tradition, of which most of its present misrulers are, probably, still quite unaware. Only a few modern writings point out this tradition. Most of the older and relevant Chinese texts are, probably, still not translated into Western languages. Territorial rulers merely change their wrongful rules, rarely somewhat for the better, and do not permit anyone to opt out from under them. Full monetary and financial freedom ideas can be a great help to overthrow their territorial rule and this rather non-violently. Chinese merchants did achieved much, even under government paper money mismanagement, with e.g. copper-weight value standard reckoning. - Dr. Walter Zander wrote an article on this. - All of the monetary freedom tradition and experiments in China may still have to be compiled in a special digitized anthology. E.g., if I remember a reference right, a Shanghai electricity work produced its own electricity money. Street money experiments go back to the Middle Ages and were outlawed by the Mongol rulers then. Barber shops, restaurants, tea-houses and brothels did then issue their own emergency street monies. See e.g.: Herbert Franke, Geld und Wirtschaft in China unter der Mongolen-Herrschaft, Beitraege zur Wirschaftsgeschichte der Yüan Zeit, 1949, Otto Harrassowitz, Leipzig, indexed & with a large bibliography, 175pages, especially pages 118, 120,124, 127, 133. - This author got away with publishing such ancient freedom experiments under the totalitarian communist regime of East Germany. - J.Z., 24.7.11.

CHOICE IN CURRENCY COMMISSION, Exec. dir. Joe Cobb, 325 Pennsylvania Ave., S. E., Washington, DC 20003, USA, T.202-226-7850. (1986).

CIRCULATING MEDIUM: A forced and exclusive currency hardly deserves the name of a "circulating medium". - J. Z., 2.7.96. It is rather forced, like a requisitioning certificate, into the hands of helpless creditors, including all wage and salary and pension recipients. - Something that circulates only under coercion and fraud (due to its depreciating value standard) does not circulate under its own steam. It would be rejected under freedom. - J. Z., 19.3.97. - GRESHAM'S LAW, LEGAL TENDER, FORCED CURRENCIES

CIRCULATION CHARTS: See my 11 pages on this in PEACE PLANS 41, on microfiche. I also offer them digitized. - J.Z., 31.5.11. - CIRCULATION CHART DRAFTS BY J.Z.: See file: FB JZ circulation charts, 145 KB.

CIRCULATION OF FREELY ISSUED SOUND EXCHANGE MEDIA, ESPECIALLY UNDER THE REAL BILLS DOCTRINE OR BANKING PRINCIPLE: Verbal description of the circulation process involved: 1.) The employers have received the services of their employees and produced, using their capital (raw material, machines, premises, etc.) consume goods which they would sell to wholesalers on short term credits. - 2.) For these the employers would receive commercial bills of the wholesalers, or other short term debt certificates, instead. - 3.) These they would then get discounted, into private goods warrants or bank notes by the issuing centre of the local shop association or by a bank operating on the pure banking principle or real bills doctrine. - 4.) With these notes or goods warrants the employers would pay the wages and salaries of their employees and also the bills of their suppliers. They would take out their own profit in this way, as well and, after a corresponding tax reform, pay also their taxes with them. (Otherwise the State, as long as it is still allowed to raise taxes, could raise only as much in taxes as it made sound tax foundation money available for current and near future tax payments.) - 5.) The wholesalers would have received the goods and given their commercial bills in return, obliging themselves to repay their bills when they are due in goods warrants, or get them settled by clearing. They would sell the goods to retailers, usually not for cash but upon the short term promises of payment given by the retailers, to pay them for the goods in goods warrants or banknotes within 1-3 months. - 6.) The retailers, between them, would receive the goods from the wholesalers, and would be obliged to repay them in goods warrants or banknotes in the near future. The additional goods they could thus offer, together with their stocks remaining from previous deals, would constitute the ready for sale cover (shop foundation or readiness to accept foundation) of the goods warrants or bank notes issued by the issuing centre of the local shop association or the local bank of issue. - 7.) The retailers would sell their consumer goods to the employees and all other peoples profiting from these turn-over credits, for the goods warrants or banknotes thus issued and would thereby become enabled to repay their debts to the wholesalers. 8.) The employees would have given their labour, would have been paid in local goods warrants or banknotes and would have spent their earnings in the shops. 9.) The issuing centre had discounted the commercial bills, or the equivalents, of the wholesalers, presented to them by the employers, with its own goods warrants, or notes, keeping the bills as a short term security. Lastly, the wholesalers would have been paid for the goods supplied to the retailers and thus enabled to redeem the bills of exchange, that were discounted and kept by the bank. - - All these transactions could also be done via non-cash accounts, deposit or cheque and clearing accounts, credit cards or purely electronic transactions. - All members of the issue association or bank, at least as debtors of the banks of issue, would have to oblige themselves to accept these certificates in payment. Especially the employees, if they want to be employed, should not refuse such payments, as they have long been accustomed to do. But they might rightly state that they would only be prepared to accept these alternative means of payment if and while they are locally accepted at par, in the shopping centre and, e.g., in their own consumer cooperative and in the canteens of the employers. Their wages having been contracted in sound value standards, they would insist upon being paid correspondingly more - in case the local currency would ever be depreciated. - If they insisted instead upon being paid in some or the other exclusive currency, which the employer could not or not as easily and sufficiently obtain, they might lose their jobs or their pay would have to be reduced. - To make this form of payment initially more attractive, a wage and salary increase might be readily offered if they accepted it in this form of payment. - Once the notes or goods warrants have been used to redeem the short-term securities - upon which they were issued, which would represent goods produced and sold, the circulation process would be closed. Not a single gold- or silver coin would be required for it and not a single legal tender note. Then this process could be repeated over and over again. - For competitively issued exchange media based upon a service cover that is locally offered, the circulation system would be slightly different. The independent tradesmen and professionals involved as issuers could get their own bills discounted by the retailers' issuing centre - up to the amount of their service potential and average trading during the next short term period. By paying their suppliers, profits and wage bill in their warrants, they would put them into circulation. By accepting them in payment for their services, they would be enabled to withdraw them and repay their IOUs with them. - Instead of joining the local note-issuing bank or issuing centre of the local shop associations, the service providers, tradesmen and professionals, could also establish their own issuing centre. They might include not only tradesmen and professional services but e.g. transport services, restaurants, amusement centres, educational services, also suppliers of gas, electricity, communication, water and sewage services etc. - - Local people would individually decide whether they would be prepared to accept 2 or more such local currencies. - The issues of the goods and service warrants would merely provide the necessary turnover credit. They would not and should not be issued to provide medium or long term capital loans - because these would not assure their rapid enough return to the issuing centre. If issued for longer periods than those of short-term turnover credits, they could depreciate. But they could be used, saved up and invested like cash, to purchase term deposits, bonds, mortgages and shares and to repay medium and long term loans or instalment repayments and interest payments on them. - This use of monetary freedom would mean that due to our private local issues (alone, or, preferably, in association with others), we would no longer have to scramble for a chance to sell our labour, services and products against a monopolistic and more or less scarce exchange medium issued by a central banking system. Instead, we would be enabled to pay with our own notes or the notes of our association and thereby we would assure that our own notes or those of your association would come back to us or our association - to pay for the goods and services we have to offer, alone or together with them. - To the extent that we have valuable goods and services to offer and do offer them at competitive market prices, and that others have valuable goods and services to give in exchange, also at free market prices, we would then be enabled to exchange them, independently of the monetary policies and mistakes of the territorial government to which we are subjected, its central bank, its monetary legislation and its currency and interest rate "policy". All our issues would automatically flow back to us to be redeemed e.g. in the gold-weight-values expressed in our goods and services. (If we had accepted these as our value standards, for our notes, goods, services and labour.) All our earnings and contract earnings and debts would also be expressed in sound value standards as reckoning units. - - An instance of a single issuer, however unlikely and rare such instances might be: A barber, to the extent that he would be able to issue in payment and get accepted his standardised hair cutting tickets, would not have to be afraid of being out of work. They would, inevitably, stream back to him to be redeemed by him through his services. If he were to spend the same amount of government cash, it would not necessarily stream back to him or not fully. - - Without this freedom, employment opportunities are, indeed, tied down to the supply of legal tender. Under monetary freedom, they are only limited by your willingness to give your productive labour and services in exchange for those of others. In fact, under monetary freedom you could anticipate your earnings, spend them with your own notes or clearing certificates and then work, to earn them back, be paid in them and thereby finally pay off what you bought with your standardised IOUs or those borrowed from your local shop association. Naturally, you would always have to accept your own notes in payment for your own work. Likewise, the notes of your creditor, since you could use them immediately to pay your debt to him. (I am speaking only of short-term turnover credits!) - - Compare this self-liquidating issue, acceptance and reflux system with the issue of e.g. gold or silver coins or the circulation of legal tender paper money notes. These coins and notes are not as effective in providing work for you because - whenever you pay with them, they do not necessarily return to you, or your association, or not soon enough or with sufficient certainty. Instead, they may flow to anyone else in the country or even, temporarily, into foreign countries. - Private notes, promising redemption in the goods and services of the issuer - and his associates - have the essential capacity for a rapid and regular reflux, i.e. they must stream back to the issuer, if they are to have any value for the holder, and will thus provide corresponding sales and employment for the issuer. To that extent they are like tickets. That could and should be formalised by giving them only a limited circulation period, 3-12 months at most. - If they happened to suffer a small discount in general circulation and all the rules of a sound issue technique would have been obeyed, then these notes and their discount with them, would rapidly disappear from circulation. Debtors of the issuing centre would not only accept them at par for their goods and services when anyone buys something from them, but would go out of their way in attempts to buy them up on the market for exchange media, using other means of payment, and gladly acquire them thus at a discount. If a debtor would thus be enabled to buy such notes at 1% discount and could with them repay, on the same day, his debt to the issuing centre, he would have made a 1 % profit on this day, amounting to an annual profit rate of 365%. That would be so attractive that the discounted notes, and with them their discount, would soon disappear from circulation. (Provided only the issue and reflux technique had been quite sound.) Potential customers of the stores of the issuing centre (if it is a shop association) would also love to acquire such notes at a discount - in order to carry them fast to these stores to be redeemed in goods and services at par. In other words, a discount for a sound goods warrants issue could not last long and would not be large. But, if a discount were considerable and persistent, then something else would happen. People would mostly refuse to accept the notes altogether. Only a few would continue to accept them, at a considerable discount - to the extent that they could still use them against the issuer. In other words, the issuer could no longer issue more notes or only at a loss. The loss would occur because he could issue them only to a few and at a discount whilst he would have to accept them again at par and immediately. - J. Z., 1985 & 21.5.97. - For graphical descriptions of the circulation process for optional and freely issued exchange media that are based upon shop or service foundation see my drafts in PEACE PLANS 40, which I also offer digitized. In the writings of Ulrich von Beckerath you will also find many much shorter and clearer verbal descriptions of this process. - I have not yet got around to extract them all and all his numerous other important remarks upon monetary freedom, which he studied, pondered for over 60 years and wrote about for at least 48 years. Alas, some of his writings, to the extent that they were preserved, are still unpublished, even on my microfiche, in German only, i.e. untranslated. - J. Z., 14.5.02, 31.5.11.

CIRCULATION OF MONEY: Strictly speaking, money does not 'circulate': it is exchanged against goods. When the turnover of (*) money increases, the turnover of goods increases correspondingly." - Henry Hazlitt, Where the monetarists go wrong, THE FREEMAN, Aug. 76, p. 76. - (*) Here I would insert: "good" or "sound". - If money is just turnover-credit money then it could and should, perhaps, upon every return to the issuing centre, be cancelled, instead of being issued out again into circulation. This would facilitate the control of the issue. It would correspond to the cancellation of the real bills the issue was based upon. It would make e.g. the issue of new series more frequent and thus give less opportunity for forgers. It would correspond to the use of tickets, mostly just once. (Unless it is a subscription pass for a whole period.) And it might be considered necessary or useful by their issuers and final acceptors. The discovery of forged notes, with the same numbers, would be facilitated, too. (Theoretically, one could take down the numbers of returned notes before one issued them again. But when another note appears with the same number, it would not always be clear or easy to determine which of the two notes is the forged one, in the absence of the first one that was received and re-issued again. - Thus Ulrich von Beckerath advised to follow the old practice of the Bank of England and to clearly cancel all returned notes and keep them as a record. - In that case notes would have only a very short and temporary circulation, it could be called that at all, and would, instead, oscillate, with each new oscillation: issue and reflux, being undertaken by a new series or new set of numbers of an old series. - J.Z., n.d. & 31.5.11, 2.8.11.

CIRCULATION OR OSCILLATION OF MONEY? Not all kinds of sound money need to "circulate". Various private notes might be issued and, shortly afterwards, stream back, like stamps, tickets and gift-vouchers or tokens. The more it is issued merely upon the "security" of the consumer goods and services that any money is, usually, "redeemed" in, every day, by consumers, according to the note-holders' wishes and needs, among the many choices offered to him in his payment community, usually the local shopping centre, the more will the issues be the accurate equivalent to the goods and services for sale and wanted, at market prices. Then, with any increase in output, that can still be sold at close to the old prices, or with any increase in the total of all prices asked for and which the consumers would be prepared to pay, if only they were sufficiently supplied with purchasing power, the additionally required purchasing power could be issued by the suppliers. The money would be issued and would stream back fast, in the quantities required, to be redeemed in its goods and services cover. More could not be issued than is required for this, for then it would be discounted - and the issuer would still have to accept it at par and wants to stay in business, rather than being boycotted for not keeping his exchange media sufficiently at par in general circulation. - Henry Hazlitt may have had something similar in mind when he wrote, in "Where the Monetarists Go Wrong", THE FREEMAN, August 1976, p. 76: "Strictly speaking, money does not 'circulate': it is exchanged against goods. When the turnover of money increases, the turnover of goods increases correspondingly." - I would rather say: When the turnover of goods money or goods warrants or purchasing certificates increases, the turnover of goods increases correspondingly. - J. Z., MFNL 3/4. - Money is here like oxygen in the blood circulation: Continuously issued by the issuing centre, it is earned and used up by the consumers, in their working lives, and replaced again and again by the issuing centre, e.g. the local shop association. A clearer image is probably provided by comparing them with transport tickets or other tickets. They, too, oscillate rather than circulate permanently. They are continuously replaced by new issues when they have achieved their intended turnovers. - J.Z., 5.9.03.

CIRCULATION PERIOD, LIMITED, FOR COMPETING CURRENCIES: The possibility of a discount of competing exchange media, as a warning signal, is a necessary factor in the payment system of monetary freedom. It is a sign that something might be wrong with the issue or its reflux and that some counter-action is required. For instance, if it happens, the issuers might arrange for a special sale to speed up the reflux of their notes. They might also charge a higher fee for short term loans they grant in their own currencies, for wage payment purposes or increase the discount rate when they discount sound commercial bills of their members. Another option would be to shorten the reflux period for all newly issued notes, until they have achieved a reflux period which would keep their notes at par. E.g., if they used a reflux period of 10 years, then their notes might become discounted because they are not rapidly enough streaming back to the store in repayment. A reflux period of 1 day only (like for cinema or theatre or sports events tickets) might maximise reflux but would be rather inconvenient for a local currency. Thus, somewhere between at least a week, if not a fortnight or a months, at most 3 to 12 months, is the optimal circulation period for any competitively issued exchange medium that is to retain its par value while it changes hands locally. Ulrich von Beckerath ascribed the limited circulation period to a proposal by Prof. Edgard Milhaud. But it merely corresponds to the limited circulation period for most sound commercial bills of exchange. It also can satisfy the anti-hoarding aspirations of Gesellians, without burdening the note holders with a special tax upon their notes or the obligation and bother to affix stamps to them. It would, moreover, express the nature of most alternative currencies as ticket money, transport vouchers, clearing certificates etc., for time limited, i.e., perishable goods and service capacities. A reflux of notes that is assured only in 1 to 10 years is no more useful to most sellers of goods and services than is a rain, coming only every 120 days to 120 months is to an agriculturists. - Even for hardware goods the owners and sellers do not want irregular but as far as possible regular sales. Naturally, especially with regard to this, it would be a mistake to issue large quantities of a local currency and all of it with the same expiry date. Instead, the expiry dates should be staggered, best perhaps from the day of issue, perhaps by date-stamping previously printed notes only once they are issued. What is possible for transport tickets should be possible for these paper token monies, too. - J. Z., 11.3.89, 28.11.92, 16.5.97. - TO SPEED UP & ENSURE THEIR SUFFICIENTLY FAST & COMPLETE REFLUX

CIRCULATION QUANTITY: How can one determine for any particular time and place and condition the right quantity of exchange media? In the same way as the right quantity of any products and services is determined, i.e. by free pricing, determined by supply and demand. When sound exchange media are freely chosen and publicly rated against their value standards, other value standards and against competing exchange media, then the exchange media will either be at par with their nominal value (their value standard units) or below or above par with them. If below par, or at a discount, they will be less and less issued and more and more refused or discounted. Thus they reach the limit of their circulation. (If they are rated against other exchange media, then they will either stand in their exchange rate at par, below or above them and these changes will be published and observed. As long as they do still circulate still at par or even above par, with their own sound enough value standards, then further issues are possible and desirable. Free market rating for exchange media, sound value standards, and full publicity for the issue and reflux of competing money notes do make their circulation or volume determination for any period quite automatic. Under a competitive supply of exchange media we would no more suffer shortages of these media and of sound standards, than we do suffer shortages of pens and rulers, milk and litre measures, wheat and kg weights. Any despotic attempt to determine for others the right quantity of exchange media or clearing transactions and of supposedly ideal value standards for all their transactions (currency or monetary policy), is condemned to failure, like all other attempts at central planning and direction or experiments with command economies. - J. Z., 3/97. - LIMITS FOR ISSUES, VOLUME OF SOUND MONEY

CIRCULATION SPEED: A rapid circulation of exchange media is not as important, mostly, as a certain and full circulation is of all wanted or needed goods, services and labour, mediated by money tokens or clearing. Only monetary and clearing freedom, combined with free choice of value standards, can achieve that. This freedom can also make issuers and acceptors largely independent of the quantity of hoarded exchange media, since they can be easily replaced by additional issues, should a currency shortage occur. Moreover, competing exchange media, to assure their reflux, will usually be given a limited circulation period, too, like commercial bills and cheques and tickets. However, in their own interest, issuers of sound and private or cooperatively issued turn-over credit currencies, will see to it that their issues will return to them, in payment for their goods, services and labour, as soon as possible. To the extent that electronic clearing and account checking has become possible, payment and clearing can become almost instantaneously. Quite possibly, people who do some of their shopping still for cash but only weekly or fortnightly, would be quite satisfied with a local shopping currency, to the extent that they want to and can spend it, that is valid only for a week, a fortnight or a month, and to the extent that they can and want to satisfy their requirements from local suppliers. The circulation of alternative media of exchange will also tend to be speeded up whenever and wherever they have suffered a discount. For then the holders will want to spend them fast - and can be sure of getting them accepted at par only by the issuer. Even while a discount does not occur, the system must provide for the possibility of a discount. The slightest discount, perhaps only at money exchange offices or in wholesale trading, or on rare metal markets sends an important signal or even an alarm to the issuer, inducing him to discontinue further issues, while the discount exists and before it become noticeable in general circulation and thus give his note issues a bad reputation. The same self-interest would also induce the issuers, if self-given or adopted issue statutes do not already oblige them to do so, to use other means of exchange to purchase the own ones, especially when they are anywhere traded at some discount. Any money that is essentially ticket money or clearing money, does not have, as a rule, any trouble with its circulation speed. Nevertheless, additional reflux arrangements could be provided for it. E.g., debt repayments in other exchange media could involve payment of a small penalty or a fee for the conversion of exchange media which one is not obliged to accept, because they are not the own. The prices might ­then be marked in the own exchange medium at par and, if paid in other exchange media "plus 1-5%". That would also speed up the reflux of the own exchange media. Furthermore, loans might only be made within the vicinity of the centre of issue. Nor should the total amount lent to any one business come to a large fraction of the total note issue, thus involving too large a percentage of the issues of a centre in the always possible failure of that particular business. To "suck" the own notes back to the issuing centre, in payment of debts, like with a vacuum cleaner, the issuing centre might oblige all its debtors to accept its own notes and to indicate their readiness to do so, by large signs in their shops and offices. Daily note exchanges and clearing between centres of issues will also speed up the reflux of notes or clearing of accounts. Electronically clearing could even occur almost instantaneously. - J.Z., 14.12.93, 1.5.97. - OR RAPIDITY, NUMBER OF TURNOVERS OF A CURRENCY, DEGREE OF HOARDING, DEGREE OF CASH HOLDINGS, HOARDING

CIRCULATION: The economic problem is in reality not a problem of consumption or of production but a problem of circulation." - Dr. Bank. Banks? Date? Title? - Which economic problem? Are consumption and production really problematical? Does money really have to circulate permanently? What does have to circulate? Are economic crises due to insufficient "circulation" of capital or of exchange media? Doesn't, at least during an inflation, one thing, the monopoly money, with its legal tender power, circulate all too extensively and exclusively, namely as the government's forced and depreciating currency? All such general phrases and explanation attempts do not sufficiently explain the realities but rather distract from them. - J. Z., 9.9.02. - DIS., PRODUCTION, DISTRIBUTION, CONSUMPTION, MONEY, TURNOVER CREDIT & TURNOVER CLEARING OR TURNOVER EXCHANGE MEDIA, CAPITAL & THE ECONOMIC PROBLEM OR CRISES, EXCHANGE ­MEDIA, FREE EXCHANGE, MONETARY FREEDOM, FREE BANKING, MONETARY DESPOTISM.

CIVIL RIGHTS: Civil rights must not include, however, the "right" to violate the property rights of others. Legislation which seeks forcibly to segregate private property must, of course, be opposed, but legislation which seeks forcibly to integrate private property must also be opposed, for this too constitutes a violation of freedom. - Richard W. Grant, The Incredible Breadmachine, self-published, n.d., indexed, 286pp, p.208. - INDIVIDUAL RIGHTS, PROPERTY RIGHTS

CLARKE, ANTOINE, The Micropolitics of Free Market Money, a proposal by Antoine Clarke; Currency Competition some options considered by Antoine Clarke ... - Libertarian Views on Money - its Creation and Control - - Cached - 29 Feb 2008. - - The Micropolitics of Free market Money: a proposal. THE MICROPOLITICS OF FREE MARKET MONEY: A PROPOSAL - - File Format: PDF/Adobe Acrobat - Quick View by A CLARKE - 1992 - Related articles - Economic Notes No.39. ISSN 0267-7164. ISBN 1 85637 081 X ... - - The Micropolitics of Free Market Money: a Proposal » The Cobden Centre - - Cached - COBDEN CENTRE,: a Proposal By Antoine Clarke, on 7 December 09. This paper originally appeared as Economic Notes No. ... - CLARKE, ANTOINE, The Micropolitics of Free Market Money: A Proposal.- - Roy Halliday, in section on Genuine Money.

CLASS WARFARE: As Frederic Bastiat said in THE LAW: "When plunder is organized by law … all the plundered classes try somehow to enter - by peaceful or revolutionary means - into the making of laws." - Dean Russell, Government and Legal Plunder. Bastiat Brought Up to Date, FEE, May 85, ISBN-0-9106614-70-9, 116pp, p.21. - PLUNDER-BUND, MUTUAL PLUNDER, LAWS, LEGISLATION, REVOLUTIONS, REFORMS

CLASSIFICATION OF WRITINGS ON THE SUBJECT: Maybe they or the exchange media and value standards discussed in them, should be presented in form of charts, especially of the details of exchange media and value standards proposed or described as used in the past or present, stressing good points and also all wrongs and errors or mistakes still involved in them. Otherwise, the great variety of ideas, experiences and potentials that does exist in this sphere, is all too often not clarified in the writings of partisans of one particular system or the other, be they green-back advocates, Gesellians, Social Credit people, one or the other kind of gold bucks or rare metal redemptionists, currency- or the various free banking school advocates or those of "community currencies". The differences between them are so numerous that Siegfried Schwenke, in his online draft of a manuscript on monetary theory, has confined himself to describing just a few of this multitude. I hold that the number of those worth discussing becomes greatly reduced if one describes a) optional, competing and market-rated currencies as opposed to b) monopolistic or exclusive ones with legal tender power. The latter do already condemn themselves by their usual disastrous economic consequences and also by the political, social and even military consequences of them. Thus they could, largely, be only indicated as such and, otherwise, ignored, on the road to sound exchange media (or clearing options) and to sound value standards. - J.Z., 31.5.11.

CLASSIFICATION SCHEME: The literature on the subject is too extensive. Tabulations of the historic and proposed exchange media and their characteristics and, likewise, of value standards should be drafted, amended and gradually filled out in a collaborative process. False premises, observations, conclusions and theories involved in them should be pointed out, as well as the literature defending and attacking each position taken. No copyrights should be claimed. But each contributor should sign his statements, preferably with a contact address. Giving each statement a number would make referrals more easy. - J. Z., 16.3.97, 31.5.11. - FOR EXCHANGE MEDIA AND VALUE STANDARDS

CLEARING & CASH TRANSACTIONS: Over a short period the same total amount of clearing certificates or clearing account credits or electronically accounted and transferred dollar totals can settle dozens to hundreds of times as many debts than are due immediately and payable immediately and in cash. These alternatives can function very well under full freedom and this without the daily cash circulation being multiplied and thus being enabled, under monetary despotism, to drive up prices and wages expressed in is "value standard". Sound value reckoning in any chosen value standard can then go on. Much more is thus being turned over, than could be turned over in cash and this without inflation. All exchange media and methods that merely promote clearing and use sound value standards, are by their nature no more inflationary than an pure barter transactions. Every day, every hour, only as much cash and clearing options are required to settle all debts due on that day or by a certain hour. However, when cash-redemptionist "thinking" or thoughtlessness is still very strong, i.e. the assumption of the legal and juridical right of creditors persists to demand, at any time, a debt settlement in cash (rare metal coins, gold certificates or legal tender), rather than settlement by clearing or non-cash payments, while, in normal times, much more is settled cash-less, i.e. by clearing or money transfers, then, quite unnecessarily and irrationally a risk and panic factor is built into this situation. Each credit becomes then a dealing in futures (in cash one hopes to get for the repayment) and each sudden growth in the demand for cash can set off further cash demands instead of continuing the normal and numerous as well as voluminous clearing and non-cash transactions. Then, whatever amount of cash is available will not suffice to satisfy the increasing demands for cash and the monopoly cash supplier, the central bank, can then not supply the additional cash required fast enough, when and where it is needed, at least sometimes,. - One should not try to discuss this topic without referral to a survey of the increase in cash circulation of the central bank's forced and exclusive paper currency over the last few decades, a survey of the correspondingly increased prices and wages, compulsorily expressed in this currency, and one of the normal total of daily non-cash transactions and their growth over the last decades. One should keep in mind the fact that the much larger daily total of non-cash transactions, which are legally and juridically claimable by the creditor, upon his whim, in legal tender cash, are much larger than the cash that the government makes available through its central bank. - The existing money issue monopoly system, with its inbuilt cash claim authority for all creditors towards all debtors for all transactions, even those normally settled by clearing or non-cash payments, is prone to deflations, stagflations and inflations, cash panics or currency famines, which can all appear quite suddenly, extensively and repeatedly. - Even if the monopoly issuer were able and willing to rapidly satisfy any cash demand of creditors with additionally printed notes, as legal tender these notes, issued beyond their tax foundation, would tend to stay in circulation even after the cash crisis is over. The deflationary crisis would thus be "overcome" only by inflation, as soon as the amount of non-cash transactions is back to normal. - J.Z., 2.4.97, 10.6.11, 12.6.11, 2.8.11. - CREATION OF MONEY, CREDIT, DEPOSITS, DIS., RIGHT OF CREDITORS TO DEMAND CASH, LEGAL TENDER MONEY OR A PARTICULAR MEANS OF PAYMENT, INFLATION, VOLUME OF EXCHANGE MEDIA & METHODS

CLEARING BANKS: Clearing banks are the same as note issuing banks in principle. Only the metal redemption does not apply to them. - Ulrich von Beckerath, in correspondence. - That applies only to clearing banks that operate by clearing only, not to cheque banks, that authorise their cheque account holders to withdraw either a rare metal deposit or legal tender, upon demand. - J. Z., 7.4.97. & NOTE ISSUING BANKS


CLEARING: A clearing transaction does not need ANY quantity of exchange media nor ANY quantity of value standard units (e.g. rare metal coins), beyond the one unit adopted, e.g., an ounce or gram of gold, merely as a reckoning or accounting standard. It can operate well enough with book keeping and digital accounting only, in figures, expressing purchasing power in multiples or fractions of the adopted value standard units, e.g. a gram or an ounce of gold. The value of the value standard chosen is in no way changed by changes in the number of clearing transactions using it, in the same way as the sizes of the meter, the weight of 1 kg, the volume of 1 litre, are not changed at all with the number of transactions that use these measures. To affect the purchasing power of a medium of exchange its nature of exchange medium must be legally and coercively or by prevailing custom combined with a fictitious abstract or paper value "standard", and an exclusive exchange medium and this value standard must also be exclusive and forced (compulsory acceptance AND compulsory value, at its nominal value, as a result of legal tender acts). Then the people are not be free to express their prices, wages, and salaries etc. in sound alternative value units and payable in competing, optional and market rated notes and clearing certificates. Then, indeed, quantity changes in such forced and exclusive currencies do affect prices, wages etc., which have to be priced out in this "value standard" and "exchange medium" and have to pay paid, at least in all official and public transactions, in this "value standard" and "exchange medium" and the forced and monopolistic official value standard does then have to be used even in all open clearing transactions. Only on the usually all to limited black markets are people then free to act otherwise, honestly and voluntarily - without, however sufficient legal and juridical protection for their contracts. On the contrary, they risk penalties, in some instances, historically recorded, even the death penalty. - J. Z.,, 27.4.97, 31.5.11.

CLEARING: A man, who can properly clear his own labour services and products against those he wants, is no longer unemployed. His danger would rather be over-employment - since the wants of most men are rather unlimited. - J.Z. 7.8.75

CLEARING: Almost all sound exchange media, which do not, like gold or silver coins, carry their subjective and market-determined commodity value in themselves, are essentially merely clearing certificates for an anonymous and multilateral clearing process, which they facilitate and simplify by their very nature. But it lies also in the very nature of free clearing that it does not inherently depend upon any QUANTITY of exchange media or any QUANTITY of value standard units but merely upon a sound enough value standard that is agreeable to all concerned and that is merely used for clearing, accounting and reckoning purposes, but that value standard does not have to be supplied and used as a means of payment, cover or reserve, or redemption fund, in quantities and values that are equivalent to the free clearing transactions that could be carried out without any exchange media and without the transfer of any rare metal coins, then being used merely as value standards. To maintain the value of an adopted value standard unit it is not required that it becomes demandable as a physical means of exchange by every creditor. It suffices that some transactions in this metal take do place, which confirm its market value against exchange media and against value standards of another kind and that such trades are regularly and publicly reported. While it can do no harm if debtors, well enough supplied with quantities of gold coins, remain free to offer them in payment, even gold coins should not be turned into legal tender - except perhaps within private payment communities whose members agreed to so offer and accept them. - The clearing nature and value reckoning nature of money is essential. The rest is an unnecessary although sometimes a convenient formality. No monetary policy or theory should ever ignore this fact. Then it will not be lead to wrong conclusions or towards monetary despotism. - J. Z., n.d., & 30.4.97, 31.5.11 - & EXCHANGE MEDIA OR MONEY

CLEARING: An extension of clearing merely indicates easier sales and a greater total turnover. It does not directly indicate or represent a corresponding increase of medium and long-term capital becoming available. Additional turn-over clearing can only reduce the short term turnover credit interest rate. To affect the capital interest rates, clearing certificates and notes must, like money now, be saved up and invested on medium or long terms. Tickets to a cinema are just turnover media, too. One cannot buy the cinema with them, directly. But if one had bought e.g., a large block of tickets for a large party and for one or the other reason the party is turned off, then one could negotiate with the cinema, offering to sell it back the block of tickets, either for other forms of cash or for one or several shares in the cinema. If the cinema is certain to be able to sell the tickets again, before the performance, then it will be amenable to either buying them with other means of exchange or, perhaps, with some shares in the cinema. The time span, motivation, ownership, function of shares and circulating notes is quite different. They circulate for different periods and among different people and are used for different purposes, even when both are issued, somewhat circulating and ultimately somewhat redeemed, at least during liquidation of a business. To try to turn capital assets like raw materials, premises, and machinery or the capital securities that represent them, directly into currency, supposedly useful and sufficiently "secured", into means of purchase for currently offered consumer goods and services, is a great mistake because at the same time no equivalent consumer goods and services are provided by the issuer to redeem them with. Nor is the acceptance of such money, i.e. the subscription to such capital certificates by potential acceptors assured. The holder of capital certificates (if they had accepted them at all, and why should they?) could only force the issuer into liquidation and then claim his share in raw materials, premises and machinery - but few would want to acquire them. On the other hand, if there is someone prepared for a take-over bid for the business of the issuer, then such issue attempts would be very much welcomed by him, for this scrip would rapidly depreciate in a free market and could thus be bought up very cheaply and used in the take-over bid. A few such experiences, well publicised, will serve as a deterrent. But that does not mean that there should not be full freedom to issue and offer financial securities for sale, for one kind or the other of cash or bank credit accounts, too, or for other kinds of capital security assets, among people interested in capital investments and organized in stock exchanges. To reduce this kind of mix up of capital securities with turnover bills and notes, the issue departments for both should be as far as possible kept separate, for people have fallen for the errors of "asset currencies" again and again and they have often been embodied in banking laws. - J.Z., n.d. & 31.5.11, 31.5.11. - & INTEREST RATES, SHARES & TICKETS, SAVINGS, INVESTMENTS & TURNOVER CREDITS

CLEARING: Clearing is the principle and practice behind all monetary exchanges. We should be mainly concerned with how it could be carried out more purely and easily, for all but minor or trivial transactions. - J.Z., n.d. & 31.5.11.

CLEARING: Clearing needs no official organization or regulation nor any official or private funding - no more so than e.g., postage stamp or coin exchanges for collectors do. But what it does need is freedom to organise itself under its own statutes, independent of all repressive legislation, regulation and jurisdiction. - J.Z., 19.7.91, 26.4.97.

CLEARING: Distinctions should be made e.g. between a) banks with or - b) without their own capital and capital reserves, c) banks that promise rare metal or legal tender redemption, d) banks that don't make such a promise and do not accumulate and keep such redemption funds at all, e) banks regulated by a central bank and f) banks not regulated by a central bank and in free competition with each other, g) banks that promote turnover transactions by notes or clearing and h) banks that promote capital savings, investments and transfers. - Preliminary notes. This is a very muddled-up subject. All kinds of different definitions and premises, arguments and conclusions abound. It is difficult to work oneself through the jungle they form. Even when one manages to hack, temporarily, a path through it, much of the jungle remains, right and left and the path is soon overgrown again. I have seen some famous libertarians and free marketeers repeating a few of the most popular errors and prejudices in this sphere. All the errors and myths in this sphere, often combined in Social Credit notions, are a great obstacle to monetary freedom. - For mere current account or clearing banks no bank capital or reserve would be required at all. It would merely administer the accounts of its clients, more of less efficiently. Ideally, even its customers would not have to deposit any cash, gold or credits from other banks there. Its bank customers could just start with it "ab ovo": Each just opening an account there, with a zero credit and would contract to use this account for all his trading with the other customers with this bank. For the sake of simplicity let us assume that this is the only bank that they would use and that this would bank would mediate all their trading, i.e. that there would be no trading by them with the rest of the country or the rest of the world. We could assume this to happen either on the local level, on the national or even at the international level. Let us also assume that the participants have agreed upon a sound standard of value for their pricing, all their trades and their accounting at this bank. Let us also agree that they would use their accounts only for their daily turnovers, not as a savings and investment account. (Here certain precautions could and should be taken: Those building up too much of a credit balance might, at a certain point, either have to forfeit them or to purchase, with all the excess amounts, bank bonds or fixed term deposits or other capital securities of this bank or other banks or other issuers of such securities. These amounts, and these alone, could then be used for corresponding loans to members or outsiders. On the other hand, all those who built up too much of a debit balance, would have to pay up the excess debt in their own IOUs, in convenient denominations and with a discount to be settled between the bank and its debtor, perhaps through arbitration. The debtor would have to accept these IOUs at par from the bank or any of its customers. In other words, he would be forced to undertake a discount sale towards all who offered him his IOUs. For all customers some leeway would have to be determined in their debts and credits on this account, in accordance with their kind of business and their normal turnovers. - So much about possible abuses and difficulties of this system. - Normally, the members could then settle all the debts and credits arising out of their current trading among themselves, without any other means of exchange, merely by assigning account credits or account debts to each other. They could do so by cheques (cheques for clearing only), by orders to the banks, by passbook entries, via credit cards or any other convenient means. Among these might be standardised clearing notes of the bank, in convenient money denominations, which would promise nothing else by the bank than acceptance at par on all its clearing accounts. When giving such certificates to any account holder, his account would, naturally, be proportionally reduced or put into debt. - To assure their use for clearing only, not for credits, these clearing house certificates should be given only a short life-span or circulation period. In essence, each payment through this bank would be an instruction to the bank: Debit my account by xyz and credit B with xyz. They would use these payment instructions (whichever payment method or means is used, in payment of any goods, services and labour received. Naturally, they could do that only towards all those willing to accept these transfers, clearing certificates, etc. at all and at par or at a mutually agreed upon discount. - The total of the debts of the members would exactly be proportional to the total of the credits of the members. There would be no left-over capital amounts which the bank could lend out, on medium or long term, with or without consent of the account holders, apart from the above-mentioned (in brackets) purchases of bank bonds or fixed deposits. - It is very important to note that their turnovers would not be confined to any level, to any maximum totals. If they can manage to produce and sell more to each other, then all their mutual debts and credits will simply become correspondingly larger. Goods, services and labour being priced in sound value units, likewise the accounts and the transfer orders, the fact of there being many more payments would merely meant that there are many more exchanges. Millions instead of hundred-thousands, billions instead of millions - IF people could increase their productivity and exchanges by that much - or just in accordance with the increases, or decreases, that take place at any time. Thus, apart from fluctuations of prices - from the goods, services and labour side, no depreciation of these means of payment or clearing would take place. They could increase their turnovers a hundred-fold or a thousand-fold and there still would not be an inflation. Simply as much more would be exchanged. Their self-chosen value unit, e.g. a gram of gold, would not be depreciated by so many more turnover transactions using it. (Under a computerised accounting system even a number of freely agreed-upon value standards could be utilised, with ease, among the members. By 1990 a major Australian Bank, like Westpac, was prepared and, apparently permitted, to keep accounts not only in Australian dollars but also in gold weight units.) - None of the account holders could demand payment in gold grams of all the clearing credits he had accumulated and the bank could not demand of its account debtors payment in gold grams, but merely payment in his own and also gold-weight valued IOUs, perhaps only with a fair discount, and then his acceptance of his own IOUs, from anyone to whom the bank or its customers might have transferred them, at par, as if they were gold grams in the stated quantities. - Naturally, bad debtors could go bankrupt in this system, too, although not due to a faulty payment and clearing system. They picked the wrong trade or did not conduct it properly or got careless in some large transaction or wasted capital and earnings instead of improving their business, etc. Many other problems than payment problems, do require many other solutions. If they accumulated too much of a debt and had to pay this back in their own IOUs at such a large discount that they could not recover their costs, then they would be out of business, soon. The charges levied by the bank on the clearing accounts it holds, would include an insurance premium to cover this risk. - Seeing that all these accounts are only intended as turnover and clearing accounts, and perhaps also have to cover an insurance premium, to cover bad debts, those who accumulate large debits on their accounts and do so for more than a few days, might be charged a considerable interest rate as an additional inducement to reduce their debits fast. - One kind of low prices would be avoided by the system: emergency sales prices due to money shortages. - Depending on the tax situation, the clearing bank accounts might be open to inspection, at least to potential buyers and sellers, who then could, perhaps even by phone, verify for instance the current clearing account status of the buyers. - The members of this bank would all, ultimately, and more obviously than usual in monetary transactions today, pay for all their purchases with their own goods, services and labour. The accounts and their figures at the bank would just keep track of all these free exchanges - and facilitate them in a monetary or ideal clearing way. Their own accounts would be deducted and those of their suppliers credited or they would be credited with whatever their customers paid them through this system. The bank would charge a small percentage of the total turnover as its fee. The members would at any time have to let their own debts be accounted against themselves. These deductions would be made with or without their consent, if any genuine debt is involved. - They might also be put under obligation to use any outside means of payment received towards the abolition of their account debt at this bank. (The bank would then sell this "foreign exchange" to those who had built up a large credit with it and wanted to use it in this way.) The bank would explicitly and publicly state: These accounts have not been established through cash deposits, rare metal coin reserves or a reserve fund made up of some capital assets. They do not entitle to any cash withdrawals or rare metal redemption. They are merely current and clearing accounts. The clearing bank merely helps to transfer the mutual credits and debts of its customers and keeps account of them. It does not grant any credits and cannot grant any credits from these current accounts. However, to the extent that some of our account holders want to make some of their credits on their accounts contractually available, for medium and long term credits, it would be willing to mediate these, too, amongst its customers. - To that extent such a bank would be safe from any time risk and means of payment or ability to pay risk or difficulty. (Naturally, sickness, accidents, catastrophes, insufficient business sense or business mistakes excluded. Thus the bank might insist that its customers insure themselves, as far as possible, against such risks.) - Such clearing and "deposit" banks (of current trading credits transferred from others of its customers) should be open to inspection by their members, or representatives of their members, but do not constitute institutions that threaten the payment and value accounting situation in any country. On the contrary. Without legal tender, subject to a free market rate against a sound value standard, these means of payment or clearing could not depreciate from the money side - unless they had picked a value standard that was not really as sound as they thought it would be and at the first sign of this they could change over to a better one. The elasticity of the system would be unlimited. It could precisely fit all the output of and trade in wanted goods, services and labour (among its members). It would not distort exchanges but, instead, greatly facilitate them. For small transactions, not worth any writing efforts or electronic checks and transfer costs, such a clearing bank could issue token coins whose only foundation would be their ready acceptance at par in all its clearing accounts. To avoid the charge that thereby it would "levy a loan from the public" or "create money out of nothing", it could be quite correct on this, too, and debit each of its accounts with e.g. $ 30 (or the gold gram equivalent) and pay out that amount to each of its customers in small token coins, less the cost of producing them. - The general assumption for such a service is, naturally, that monetary despotism could not effectively outlaw and suppress it. - Secondly, such a clearing bank should, naturally, possess no monopoly and should be free to clear with all other clearing banks. - - This is as simple a free exchange system as I can imagine, free of all the ordinary flaws and wrong assumptions and imposed requirements, supposedly necessary controls and safeguards. Mind you, I have not described a savings and short to long term credit bank. The credits mediated by this clearing bank would be explicitly confined only to current and short term turnover and clearing transactions. Those credits which their customers would make explicitly available for medium and long term loans should be transferred to other accounts or certificates, under corresponding terms. They would not have to be run by a separate department of the bank, although it would probably appoint one or several investment specialists if there were many such funds available for investments. - One should add that the loans given by the bank would be given only by its credit transfers and they would also be repayable by such credit transfers. Terms and interest rates would have to be haggled out among lenders and borrowers, with the bank merely acting as a mediator. It might e.g., publish the funds available and under which conditions they are available and the funds wanted and under what conditions they are wanted and then act as a broker to achieve as many mutually satisfactory agreements between these customers as possible. Part of the interest payable would serve for credit insurance purposes. In this uncomplicated model I see no need for any outside interventionism or any suspicion that the bank or its customers would thereby be given any special opportunity to cheat or defraud others, to "create" any money or value out of nothing, to appropriate what really belongs to others, a chance to deflate, inflate, stag-flate, or tax the economy, to speculate at the expense of others, to establish a monopoly or any coercive power to intervene with any productive or creative activities, with any individual rights or liberties. It would be a contractual self-help project. I see no need or justification for government control or supervision or guaranties for such institutions. They would and should operate quite separately from the government, more independently than the present churches and sects are from them. Ideally, they should not be subjected to any taxes and licences, laws and regulations and official supervisory boards and inspectors at all, either. However, once governments began to operate as competing business organizations and for voluntary customers only, then they and their members should be free to open clearing accounts there, too, or establish their own clearing banks. - When dealing with all other models and notions of deposit, note-issuing, savings and investment banks, we should, first of all, keep this simple model in mind and check whether any added features are really rightful and necessary or, rather, wrong and self-defeating or risky and distorting, leading to panics, failures, booms and busts or would be too inelastic and deceptive or coercive or all of these combined. - What would happen, e.g., if any credit established in such a simple clearing bank did go astray and were used as a credit in some other banking institution, which might consider it as a valuable foreign exchange and, based upon it, using it as a reserve and blow up its deposit volume or note circulation in an inflationary way?. - Imagine that the other banks would and do this. Would our clearing bank have to be blamed for their actions? Would it suffer from this? To make it easier to answer this questions, let us assume that our clearing bank, instead of establishing clearing certificates or accounts with gold gram value accounting, had possessed some gold coins and issued gold certificates and that these gold certificates would have got into the hands of some other banks of issue and were there used as "currency reserve" for a fractionally covered and over-issued currency that is monopolised and made legal tender. Would you, then, blame the gold weight clearing bank for the wrongs and mistakes of that foreign bank, perhaps a central bank? If not, then you would have no right to blame the gold clearing bank, either, when its credits were somewhere else so used. - But, we should also consider that not only the credits of our clearing bank would go astray but, those of other banks, too. Our clearing bank could insist upon note exchanges or mutual clearing and thus get the own credits back, soon. If, as we assume, our clearing bank adheres to stable value reckoning, i.e., does not engage in an inflation, with its clearing media and all the prices of its customers would continue to mark their market prices etc. out in the agreed-upon stable value units, while all around it central banks would engage in monetary inflations. Then, most likely, many more foreign exchange media would be offered to it than notes of its own that would have gone temporarily astray - by arriving at central banks in other countries. So our clearing bank could easily pay for the return of its credits, even before their stated validity has expired. The exchange rate for the foreign currencies would fall and the clearing bank would tend to refuse them altogether if it would not need them to buy back its own exchange media or account credits gone astray. If central banks began to imitate its value standard reckoning, then this would also not impose any risk for our clearing bank. A mere clearing or accounting standard can be shared with an unlimited number of other people. Nor would the establishment of clearing credits at this bank by foreigners or even foreign central banks bring any risks or problems. The accounts are for clearing purposes only. No gold or cash withdrawal claims can be raised. They can only be used for purchases or sales among the members, the more, the better. Loans to foreign governments would no more be granted by it than to the own - unless the own government would turn into a bank robber against it, using all kinds of pious or cover-up or confidence trick phrasing in the process. Naturally, this system could not function freely and without frictions and problems if it were forced to use a fiat paper money standard (forced currency: compulsory value and compulsory acceptance), were subject to quantity regulations on the totals of its turnovers, had to redeem all its debts upon demand in gold coins or legal tender paper money, had to keep part of its accounts with a central bank, were severely taxed or not permitted to freely clear the accounts of its customers, had to turn over any foreign exchange received at a fixed rate, payable in legal tender, to the central bank, had to purchase government "insecurities" or private capital assets. Freedom from all acts of monetary and financial despotism is here presupposed. Its business is the liquidation, balancing or settlement of debts of its customers, payable for the sale of goods, services or labour, or their purchase, i.e. daily turnovers of what holds body and soul together in a society based upon division of labour and free exchange. It would not make any promises it could not keep - if not governmentally prevented from doing its job. Up to the limits of the productive and trading capacity of its members, to provide goods, services and labour to each other, it could increase its business turnover, total of accounts, total of debts settled, its short term clearing credits granted. Both terms, "overdrafts" and "credit expansion" are misleading here. The customers started with a zero account and did not have to deposit any rare metals or legal tender to establish at first a disposable credit account. They might merely have a personal debt limit on their clearing account, as is also practised with credit cards. Such a bank would not and could not "expand credit" but its customers might increase their exchanges among themselves and grant each other short-term turnover credits through the mediation of the bank. - But it could become involved in international trade clearing to the extent that it could issue, with the consent of exporters among its customers, clearing certificates upon their ready for sale export goods, sell these, via account transfers to importers among its customers, to the extent that these can use them to pay for their imports, and could stimulate the rapid returns of these clearing certificates in payment for the export goods, which would redeem these clearing certificates. - I try to deal here with economics not with anti-economics or neo-comics, as Dr. H. G. Pearce used to say. To grant other credits, medium or long-term ones, to foreigners or countrymen, would, again, be a matter for its customers. The clearing bank would only help in the process. By allowing foreigners to pay with clearing certificates upon their export goods, to the extent that the clearing bank's internal importers would accept these, it could, in most cases, make the granting of credits to foreigners by the own exporters, unnecessary. In other words, it would act like a bench (origin of the work bank) or special market for the transactions of its customers. This market institution would neither have the power nor the interest to inflate, deflate or stagflate the transactions of its customers but, rather, to make them as easy and fast as possible. All accounts would represent real goods (services and labour included) and real sales. Or the bank would anticipate sales of its customers, who are ready to sell, by allowing them to spend themselves into debt, up their personal limits. The bank would EXPRESS or RECOGNIZE that turnover credit of one of its debtors. It would not CREATE it. The acceptors of the clearing bank's transfers would CONFIRM these turnover credits by their acceptance of the transfers certificates or account credits at par. No arbitrary credit "creation" or "money creation" would be involved. Its turnover credits would not promise any more than could be delivered at anytime: the ready for sale goods, services and labours of its debtors. Especially gold or silver coins or legal tender would not be promised. - Those who would not merely desire the par-value of the clearing bank's clearing accounts, clearing certificates or tokens with their nominal gold weight values, but, instead, gold metal of the corresponding weight total, instead, would be referred by such a clearing bank to the free gold market, especially its local representatives, with access to all the gold reserves in the world - and the best knowledge of the clearing bank's par value and the par value of any other local currencies that might exist parallel with it. The clearing bank itself should not be in the gold metal storage and trading business. That is a business for other specialists. The only connection would be the gold weight value unit used by it for accounting and clearing purposes only. - If the clearing bank were paid in gold coins or gold certificates it should use these to buy back its certificates or account credits from whoever wants to buy gold or gold certificates with them. If it saw its accounts or certificates suffering a small discount somewhere, then it should make such gold coin and gold certificate exchanges especially then and there. But it should not accumulate any gold coin and gold certificate "reserves" for this purpose or promise to supply them upon demand. To that extent its proclaimed fractional gold "cover" and redemption would be expressly "zero"! It would only promise clearing AT GOLD WEIGHT VALUES. No one would be granted any right to claim gold metal from it, except in the deals in which it sells all gold coins received, instead of its own certificates or account credits, at par. All foreign notes and credits received would also be used to speed up the reflux or reduction of its own clearing certificates and account credits. If you can express all this more clearly, convincingly and shortly, without any of my remaining errors and mistakes, please, do so. - I am neither a banker nor an accountant. - J.Z., n.d. & 31.4.11. - BANKING, DEPOSIT BANKING, CURRENT ACCOUNT BANKING, CREDIT CREATION? CREDIT EXPANSION? MONEY CREATION?

CLEARING: Full clearing freedom (as well as the freedom to issue and to rate and discount or to refuse money tokens, be they "real" money or "merely" sound money substitutes) when fully thought through and applied, at least in thought experiments, demolishes the notion that a certain quantity of money is absolutely necessary and that it ought to be fixed, e.g. to the GNP, as calculated by some, or increased at a fixed rate, or tied to the population, the price level, a corresponding gold-reserve etc. etc. People need only freedom to clear and to account in value units chosen by them or accepted by them or even established by them, not any exchange medium or any particular quantity of any exchange medium. However, once exchange media are seen as media to facilitate clearing, then as many of these media as those people involved in the clearing find convenient to use, should be freely issued and accepted, rated or refused by them and cancelled after their use. Nobody can rightly prescribe for others how many of such more or less advanced private "cash" or clearing or ticket certificates they should be allowed to issue and accept. That would be like prescribing to them how much they should produce and exchange. The subjective value theory applies here, too, quite apart from property rights and the right to make private contracts. No monetary theoretician or technician, expert, reformer or authority has the right to prescribe to them how they are to settle their exchanges and to promote them to the utmost and what means and processes they are to use for them. In fact, there exists no one and no one may ever exist who knows best what is best for all other people in all situations or even some of them. Even if he did exist, he would still not be entitled to force other people to become happy or rich in the way he thinks they ought to go. If they do adopted him, individually, or as a group, as their medicine man or guru, then that is their affair and risk, indeed, also their right and part of their liberty. - J.Z., 3/97. - & QUANTITY OF MONEY, QUANTITY THEORY OF MONEY.

CLEARING: If it is true that all exchanges can be settled by clearing and, lastly, are settled by clearing, even if only indirectly so, with the help of currencies, paper monies or coins or banknotes, then there is INHERENTLY no need to give such clearing media any other backing or cover or redemption other than their clearing function. At the same time, seeing that clearing means the cancelling of mutually owed debts, it is obvious that forced and artificial values for clearing media would distort clearing transactions and so would the compulsory acceptance or demand for any fiat currency or rare metal coins. Clearing claims should never be legally and compulsorily turned into the exclusive coin and note currency for a whole country. Thereby, and inevitably, the monopolist and coercer could shed his own debts, by unilateral action and authorise all other debtors to do the same, to the extent that this monopolist has inflated his currency. Creditors and debtors ought to be freed to agree upon sounder value standards - and means of payment - that suit both of them. Through private and free clearing and note issues, acceptance and reflux we should make ourselves independent of the wrongful, flawed and limited options that are the only ones which the governmental central banking system offers us. Free choice of exchange media, clearing facilities, credit instruments and value standards, all of them optional and market rated - except for their issuers, towards whom a juridical legal tender should apply, since they ought to recognize and accept their own debt certificates at par from anyone. Everything else would be fraudulent. - J.Z., 7.9.97, 10.9.02, 31.5.11

CLEARING: Let's clear the air about clearing. With people free to clear their labour, services and goods, all ready to be supplied, for the labour, services and goods of others, there could be no unemployment or underemployment or sales difficulties for any labour, services and goods that are still wanted at market prices. All being supplied with either sufficient sound exchange media or clearing avenues, to facilitate all these desired exchanges (settled, even when paid in "cash", simply by a convenient form of clearing), all could be cleared against each other, provided only that all people concentrated on supplying labour, services and goods that are wanted rather than on those that are not wanted or not wanted at higher than free market prices. Moreover, under this condition, all ready for sale labour, services and goods wanted at market prices could become liquidified then utilized as purchasing power - redeemable in these wanted things. Whoever puts any obstacle in the way of the free and competitive private or cooperative supply of sound exchange media or of clearing avenues and banking institutions and payment centres, does thereby assure unemployment, underemployment, sales difficulties, depressions, inflations and stagflations. While a single and very efficient clearing centre for the whole world could, theoretically, arrange for all possible and desired exchanges, keeping all willing to provide labour, services or goods busy, producing them and exchanging them through this clearing centre, it remains true that coins and paper notes, do facilitate clearing, e.g. in the purchase of a newspaper or a book. Thus, fully freed clearing should always be accompanied by the free issue of optional and market rated and competitively issued exchange media in form of paper notes and coins or tokens. The sum of clearing exchanges and the total circulation of notes required can be no more rightly and efficiently prescribed or limited than could be the sum of labour, services and goods which people are able and willing to provide for each other in a division of labour process that depends upon free enterprise, free exchanges and free trade. All attempts to centrally manage and limit exchange media and clearing facilities have led to abuses and economic crises. Only full monetary freedom, including clearing freedom, can prevent abuses and crises - as far as is humanly possible. - J.Z., 3/97, 31.5.11.

CLEARING: Mutual settlement, balancing of accounts, set-offs, mutual payment adjustments, mutual writing off of debts, mutual cancellation of debts, non-cash payments, trade-off money or methods, transfers of accounts only, book money settlement, balancing of debits against credits, numerical money, symbolic money, accounting money. In German: Abrechnung und Verrechnung. Perhaps from other languages more suitable terms could be taken? - J.Z., n.d. - CLEARING HOUSES, CLEARING PROCESS, CLEARING CERTIFICATES: ARE THERE BETTER NAMES FOR IT, NAMES MORE EASILY UNDERSTOOD, LESS LIKELY TO BE MISUNDERSTOOD?

CLEARING: Short term credits and debts that represent turnover transactions amount mainly to clearable credits and debts that would and could almost always be settled by clearing, if only the creditors were not given the authority to demand cash payments instead and would not, sometimes, be inclined to demand them. Thus the assumption or legal presumption that all short term non-cash credits, deposits and cheques are to be claimable in cash ought to be done away with and replaced by a right to clearing only, in as convenient and just a way as can possibly be arranged by private and monetised notes and clearing certificates and clearing accounts. Capital savings should not be used to finance such turnover credits. They are unnecessary for them. Such transactions are inherently self-liquidating if only no form of monetary despotism interferes with them. - J.Z., 7.12.92 & 15.4.97. - CREDITS & DEBTS ON SHORT TERMS

CLEARING: To the extent that any kind of money is a clearing medium (Actually any kind of money is, basically, a clearing medium, a counting token, whether its material is cheap, expensive or electronic, for a multilateral and anonymous and automated clearing process.) it does not need a "cover" at all. It either represents a debt or a credit and all of these cancel each other out, at least over a period. However, instantly or soon clearable debts and credits should be distinguished from those settled only over medium to long term periods. For instantly or soon clearable debts and credits money tokens and accounts are suitable aids. For medium to long term debts and credits the special capital securities are the suitable issues. In any somewhat free economy some cash exchange media (or non-cash payment accounts) are all the time turned into capital securities or capital securities into cash or bank accounts, but only to a limited extent, one voluntarily determined by savers and investors. Capital securities are not suitable "covers" for cash. Most cash is needed to buy goods and services, not capital securities and capital securities do represent real productive capital and future earnings opportunities and, as such, do not need a cash cover but merely some cash operating funds. Their main purpose is not to represent cash but to earn cash by the production of wanted goods or services or to maintain or increase the capital value of capital investments. The fact that most of the time sound capital securities can be relatively easily turned into cash does not make them equal to cash. Sometimes, for instance, they are hard to sell or only at a loss. With sound cash it is different in normal times, only emergency situations excepted, when real goods and services are often preferred to cash or when goods and services are sold at emergency prices for cash. Both are valuable in their spheres, promoting the transfer of values, but that does not make them identical or sufficiently, fully and rapidly interchangeable for all purposes. The main purpose of cash, or corresponding liquid bank accounts, is to pay for daily living expenditures and frequently occurring minor debts. Try to pay for them with shares, bonds, treasury notes or mortgage letters! In a perfect clearing system we would not need any physical or electronic money tokens at all. All debts and credits could be cancelled without them. Only some suitable value standards would have to be agreed upon by the participants. Bad debts would have to be born as losses by some - and unearned gains by others - or would be covered by insurance premiums that had been paid by the traders. - J.Z., 13.3.02, 24.8.02. - COVER, LIQUIDITY VS. SECURITIES, CASH VS. CAPITAL

CLEARING: To use a somewhat clarifying analogy: Free and open exchanges of facts, opinions, ideas and proposals do also achieve a kind of clearing. They clear the air of errors and misunderstandings, clear the minds and are enlightening, although not as clear-cut and thoroughly as the clearing is that uses a sound value standard to measure and settle mutual debt relationships. – J.Z., 23.6.05, 6.10.10.

CLEARING: We are all each other's debtors and creditors, with the totals of debts and credits exactly balancing each other. Consequently, if only we organized a perfect clearing system between us, one not disturbed by any legally or juridically authorised demands for rare metal cash or monopoly paper money, which is legal tender, then we could clear all our transactions. All the notes we would still use for the sake of convenience need be nothing more than clearing certificates to facilitate this free exchange via free clearing. We should no longer tolerate any law, regulation, juridical decision or administrative authority which prevents this from happening freely, naturally and fast, doing away with and preventing all monetary crises, especially inflations, deflations, stagflations, with their involuntary mass unemployment, expropriations, bankruptcies due to this despotism, general impoverishment and their trends towards despotism, terrorism, civil wars, and wars. - J. Z., 24.7.93, 24.4.97, 8.9.02.

CLEARING: When you consider money merely as a clearing facilitator, not as a commodity, then the quantity of goods, labour and services that people possess or can and will offer, in exchange for the goods, services and labour of others, has no other limit than these goods, labour and service readiness themselves and the quantity of "money" available becomes irrelevant, because under fully developed and free clearing no money would be required at all. Only for some minor payments, e.g. the daily newspaper, would some form of physical clearing certificates, which might be called money, still be convenient and cheap, more convenient than formal non-cash transactions, no matter how much they are computerized. Under free clearing, essentially not needing any money tokens or money commodity at all, in quantities corresponding to the sum total of the cleared goods and services, but, possibly, using e.g. a gold weight unit as a value standard to price all goods, services, labours and other contracts. The value standard unit that might be used in all the accounting and clearing of the free exchanges might not even exist at all in physical form, or free transactions using it or might not be used at all within that clearing community for its pricing. E.g., gold value trading in Sydney might use the market price of that gold weight unit in London, Zuerich or N.Y. for its own value measuring purposes. Some clearing or payment communities might be satisfied with a value standard less stable than gold weight units or they might discover or invent one that is even more stable and use that one. Freedom of choice, here, too. No exclusive and forced value standard (except by private contracts, binding only the contractors) and no exclusive and forced exchange media and clearing avenues (except within voluntary payment communities). Under free clearing the number of transactions might increase or decrease. The total value of transactions might increase or decrease. This would not influence the standard of value used or depreciate or increase the value of the clearing avenue - or of clearing certificates or account credits. To try to put a quantitative limit on clearing certificates or mere turnover credit notes would amount to forcing people to limit their production and their exchanges when there is no justification or need for this at all. An imposed issue or circulation limit would then amount to a rationing system for the community subjected to it, for the exchange of its goods, services and labour. No more could then be offered and traded than is prescribed or permitted by the monetary despotism involved. - The quantity theory of money makes only some sense for an exclusive and forced currency that is issued beyond the limit at which, under freedom, it would have been accepted at par with a sound value standard. Then it can be arbitrarily multiplied and thus depreciated, while the goods and services at the same time cannot be as much multiplied and would, even by multiplication, not necessarily be depreciated in their value, either. For instance, if a baker bakes 10,000 loaves of bread instead of merely 1,000 a day, and if he finds buyers for all of them, then the value of the bread for each of the buyers would not be depreciated. Nor would the money or clearing medium be depreciated because at least for these turnovers ten times as many money tokens or clearing certificates or account credits would have to be used. The need for monetary exchanges is, essentially, a need for clearing exchanges in a very convenient form. If that is kept in mind, then we will avoid wrong conclusions on varying quantities of optional and market-rated as well as refusable exchange media. A community is enriched, not impoverished, when its money and clearing system enable it to exchange more goods, services and labour efforts, quite freely and easily. The money and clearing transactions would be increased - and so would be the quantity of goods, services and labour turned over. - The best method would be to transform, as far as possible, all ready-for-sale goods, services and labour into exchange media or clearing certificates or clearing accounts (using sound value standards), to the extent that this can be done without turning the par-value of such shop currency into a deterring discount. (If one can judge by the experience with sound tax foundation money then shops might even be able to monetise not only their current stocks but their turnover for the next 1-3 months. Much would depend on current terms for earnings and timing habits for consumer spending.) Then any quantity of goods, services and labour could, with their help, be easily exchanged for those of others, in a division of labour and free exchange process - in a free market that would include monetary and clearing freedom. The need for money is merely a need for clearing or for complete freedom to exchange, using the best and easiest available means, those accessible, in self-help steps, to every productive and honest persons. As Ulrich von Beckerath used to say: Allow people to transform their NEEDS into effective monetary DEMAND, but only to the extent that they are prepared to supply, ready for sale, and wanted goods, services and labour in exchange. - Then and with their "ticket-money" (or goods, labour or service warrants), they can satisfy their needs and wants, to this extent and the others can use these tickets­ against him as an issuer, to the extent that he is able to supply their needs and wants. That would amount to "production for use" and mutual profit at the same time. Useless tickets would be refused. Tickets that are only marginally useful would be discounted or refused, thus limiting their circulation. The ticket-money would have an automatic reflux to the issuer - and would serve as an advertisements at the same time. Ticket money! That's the ticket! - J. Z., 26.4.97, 8.9.02, 31.5.11. & MONEY & THE QUANTITY THEORY OF MONEY, MONETARY DESPOTISM & TICKET MONEY

CLEARING: Without government assistance but also without any governmental hindrance, however legalized and excused, any number of people could come to clear the monetary value of all their free transactions that they have between them, using whichever clearing system and value standard they have agreed upon among themselves. To that extent they would become independent of the governmentally regulated banking and central banking system, with its monopoly money and fictitious and forced value standard and the kind of clearing processes that it has allowed the existing banks to undertake. Under free clearing all those, who do have wanted consumer goods and services or productive labour to offer, could clear them against those which they do wish to acquire in exchange, in an economy based upon the division of labour and on free exchange. Under that condition involuntary unemployment as well as subsidies for unemployed people would soon become impossible. Full employment among all those able and willing to work would be the rule, also as much overtime-work as people are willing to undertake, quite freely, would become available. - One alternative to comprehensive free clearing would be the issue and ready acceptance of exchange media that are, essentially, clearing certificates or clearing accounts and that also use a self-chosen sound value standard. No governmental monopoly currency or clearing system could be a good enough substitute for such a system. However, those still believing in it should be free to practise it among themselves, as long as they wish too, surrounded by others, who do practise their monetary rights and thus get the benefits of free exchange. - The practice of free enterprise, whether under the employer-employee system or under some form of self-management, is here taken for granted, for all those, who do prefer it for themselves, regardless of how other groups of volunteers, choose to restrict their rights and liberties in this sphere. - Free markets in every sphere for all those in favour of them. Restricted markets only for those still desire these restrictions for themselves. - J.Z., 10.11.10, 2.5.11. - PANARCHISM, EXPERIMENTAL FREEDOM, MONETARY & CLEARING FREEDOM, VOLUNTARISM

COCHRAN, JOHN P., Book Review: Free Banking - January 3, 2011. - "The new preface is an important contribution to the ongoing debate within Austrian circles over banking freedom versus 100 percent–reserve banking." - Roy Halliday, in section on Free Market Banking. - Author not mentioned in this hint. I would bet that it is not Henry Meulen's book. - Maybe he reviewed serval free banking books. - J.Z., 9.8.11.

COHRSSEN, HANS R. L., Cohrssen, article written in 1932 about the "Wara" scrip issued in Germany ... (It should be Wära. - J.Z.) - More on scrip, not all only of the Gesellian type: Very detailed paper on the Alberta Prosperity Stamp Scrip. ... - Google's cache of It is a snapshot of the page as it appeared on 19 Jun 2011. The current page could have changed in the meantime. - This page by "Rod" offers the best survey of this literature that I have seen. It includes the Hans R. L. Cohrssen title: Wara, (Waera. - J.Z.), also an article on the clearing house certificates of 1907. It ends with: All content on this site is © 2005. If you see anything that you think should be changed, or if you have anything to contribute, just email me at - J.Z., 1.7.11. - SCRIP, IRVING FISHER, STAMP SCRIP, GESELL.

COIN AND MONEY COLLECTION HANDBOOKS: They should be perused and partly abstracted or extracted for precedents. - J.Z., 31.5.11. - More details should be dug up on the monetarily interesting cases that they do report, than they do offer for coin and note collectors. - J.Z., 31.5.11.

COIN OF THE REALM: Allow people to pay and be paid in other monies than the "coin of the realm" or the government's exclusive and forced currency - and most of our economic problems would be over. - J. Z., 1989, 8.4.97. - OR LEGAL TENDER PAPER MONEY

COLES/MEYER SHOPS IN AUSTRALIA AS POTENTIAL ISSUERS: Their annual turnover according to news of 2.8.93 was 15 billion. (Currently around 20-20 billion A $'s. - J. Z., 12.9.02.) Assume that they could keep in circulation, or oscillation, for short periods, ca.10% of this. This would mean that at any time they could issue and keep in thus, temporarily, A $ 1.5 billion worth of their own shop currency in circulation. This amount alone suggests they should take an interest in this aspect of their own business. Moreover, if they could issue that much of their own currency - assured of its reflux in sales, then their total turnover could probably be increased considerably. Moreover, they might also use a stable value standard in their currency and in their pricing, thus making their own notes still more widely acceptable. Furthermore, they could grant wage payment loans with them, to that extent of their "shop foundation". Such extra short term loans could greatly contribute to reduce the current unemployment, officially above 800,000, unofficially probably considerably above that number. (By exerting an extra monetary demand for productive labour and also turning over more goods and services than before. - J. Z., 12.9.02, 31.5.11.) Unemployment for young people is sometimes and in some areas as high a 20 - 40%. But these unemployed are not interested in or free to ask for payment in shop currencies and the potential issuers are not free to offer them such payments. - J. Z., 30.4.97, 31.5.11.

COLLECTIONS: It could start with the hand books for coin and money collectors but could be supplemented, for research purposes, with good photocopies of other specimens, not mentioned in these. - More details on their issues and reflux should also be collected than these books for collectors do offer. - J.Z., n.d. & 31..5.11. - OF MONEY TOKENS AND PRIVATE ISSUES

COMMITTEE FOR MONETARY RESEARCH & EDUCATION: Seeks to promote the public understanding for monetary processes and the vital value of a healthy monetary system for a free society. Pamphlet series, newsletter MEN & MONEY. Pres. Elisabeth R. Currier, POB 1630, Greenwich, CT 06 836, USA, Tel. 203-661-2533.

COMMODITY MONEY, RARE METAL CURRENCIES: Online Debate: Commodity money (i.e. a gold standard) is ... - - Cached - Once one develops this understanding of monetary history, it is easy to see how commodity money (i.e. free-market money) is an aid to long-term, ... - Rare metal commodity money is NOT the only SOUND and RIGHTFUL MONEY. Even primitives knew of many alternatives to them. - Railway-, Bus-, Electricity-, Rent-, contribution-based- and shop currency monies, as well as all other service-based monies, e.g. telephone money, postal money, are not based on rare metal commodities, while shop currencies are based upon hundreds of thousands of daily wanted consumer goods and services. History showed barbers and brothels as issuers of street monies. Where is the "commodity" there? History is full of numerous examples, which this author ignores. Also of clearing actions, which needed only the goods or services being exchanged and the use of a sound value standard, but not redemption in rare metals. More nonsense than sense is written on money and currencies, exchange media and value standards. - J.Z., 24.7.11. - There are millions of different commodities and services - but when it comes to the redemption of alternative free market monies and their cover for note issues and giving free market monies a sound value, then all too many economists and libertarians seem to be able to think of only two commodities, namely, gold and silver, although only rarely do they ever buy gold or silver and daily or at least weekly they buy their choices of xyz consumer goods and services. Daily experiences do not always lead people to rightful conclusions and principles, to a full understanding of e.g. monetary phenomena and possibilities. Another instance: We have seen or read the legal tender note on their paper monies thousands of times but how many have understood the relationship between legal tender and inflation and even clearly distinguish between exchange media and value standards when they think, speak or write about money? - I was already 19 before somebody, Ulrich von Beckerath, gave me an understanding of this inscription and its significance. - J.Z., 9.8.11.

COMMODITY MONEY: Commodity money, as usually understood, in form of gold, silver, platinum or copper coins and of certificates that are 100 % or, quite openly, only fractionally covered by them (preferably with precautionary option clauses, which would cover the risk of sudden redemption demands), represents just a few of the numerous options for monetary freedom. Sometimes and quite without justification or necessity, such issues would be granted legal tender status. - If it is so good, why insist upon it being legal tender? Then it would still constitute an exclusive or monopoly currency, unless freedom to issue and use other kinds of exchange media and value standards is introduced. If it is so good, why insist upon such a privilege? It would limit value accounting to these standards and this in the face of hundreds of different value standards that have been proposed and that are believed in - at least by some. It would also limit exchanges to those that can be covered by ready availability of these commodities. It would mean that a few or even one selected commodity only would have to cover the exchanges of all other commodities, as well as of all services, not merely as mere standards of value but as means of payment, too. This means the establishment of a very tight bottleneck for all transactions. Prices in exclusive rare metal currencies went never so low that the available rare metal coins sufficed to make monetary transactions penetrate universally, everywhere. Even primitive barter continued to exist, to a considerable extent, in developed countries, well into the 20th century, at least in some spheres, where e.g. some agricultural workers were being partly paid in wheat, potatoes and firewood. Under monetary freedom the ultimate redemption fund that most currency holders are interested in, namely, ready for sale goods and services, in millions of varieties, would be the kind of commodities or services that would back and redeem or provide the convertibility for the most common, competitive and optional monies of monetary freedom. Once these have been widely issued and accepted, rapidly streaming back and being replaced by new issues, and when they have a relationship to commodities like gold, or other rare metal weigh units, only as their agreed-upon accounting and clearing value standard units, in the competitive notes and certificates of private currencies and in the prices of all goods, services and labours, then the idea of confining all exchanges to those coverable and redeemable by rare metal commodities will come to appear ridiculous. To take an example from today: Do you imagine that railway, bus-, cinema or lottery tickets or postage stamps, to preserve their value and to measure them accurately, would have to be convertible, by the issuer, at any time and upon demand, into a rare metal? Neither does a shop foundation money need such a cover to give it value - measured e.g. in gold grams and keeping it at par, in a free market, with such a value, perhaps even above par (among those who do not want to carry gold coins around or do not want to confine their earnings to those that can be paid in 100% covered gold certificates). All other ready-for-sale consumer goods (commodities) and even daily wanted consumer services should be considered as suitable "commodities" for redemption, cover and convertibility, by those desiring it. And the specialized convertibility desires of some, who do want to turn their "ticket money" or effective shop currency into rare metals, should be referred to the greatest redemption and convertibility fund of all, namely the free and world-wide market for gold and other rare metals. Notes that are locally accepted at par with their nominal gold weight value can also be used to purchase gold metal from a local representative of the world-wide gold market. Even now most banks do also sell gold coins to investors or collectors, but not because they are legally or juridically obliged to do so. They are not. - A shop association issuing its own shop currency, reckoning in gold weight units as its value standard, would greatly prefer accepting its own shop currency in payments to being offered gold coins to the same value. It could easily check the validity of its own shop currency note but not the gold weight value and fineness of a gold coin. The lines at the check-outs would grow longer or the supermarkets would have to introduce a special check-out for people only willing to pay their debt to them in this form. - The owner of a small corner grocery store would have even more difficulties in checking out a small or large gold coin. He might refer you to a jeweller and he might charge you for his testing. Or to a bank or money exchange office, which might also cost you a fee and time. To that extent a shop currency reckoning in gold weight units would not only be then and there as good as gold coins but better than gold coins. - For small shopping and their debts most gold coins are also too large. You could not expect to get change in still smaller gold coins. Even if they were offered, would you be able to check easily and fast whether this change is of the right weight and fineness? - Thus, in practice, even pure gold coins do not have a sufficient "shop foundation" but would be considered as a nuisance by payer and payee, unless the payee is a coin collector and the payer would then not get the collector's value of his coin in most cases. - J.Z., 1.8.94, 17.4.97, 7.9.02, 31.5.11. - SOME BUGS FOR GOLD BUGS.

COMMODITY MONEY: Rare metal commodities or their certificates are certainly not the ones which consumers usually want but only in-between commodities or certified claims to them, in attempts to assure that their holders or claimants can get the value satisfaction in the commodities and services that they really want. Originally, there seemed to be no better way, than this important step-up from primitive barter. However, since then, in millions to billions of daily transactions, easier, cheaper and more direct means have been found and used, illegally or legally, to achieve consumer satisfaction, to balance the variety of commodities and services with a variety of commodity and service vouchers, and in millions of cases the interest in value preservation has also been served by rare metal commodities not being used as exclusive or frequent means of exchange or as exclusive redemption media but, merely, as value standards, reckoning or accounting units, using their purchasing power, weight, in free rare metal markets, as daily reported in the mass media, in all free exchanges, in which this kind of value standard was agreed upon, to be used in pricing, banknotes, paper money and money tokens. For free transactions the barter or sales value of gold weight units can be abstracted, and used merely for reckoning or accounting in value of gold-weight units, for prices, wages, rents etc. and exchange media with which they are paid, without any gold coins being present or changing hands in a transaction, as an exclusive currency as well of being offered in monetary certificates for their redemption by the issuer, upon demand by the holder. For this purpose gold does not have to be physically present. Nor does it have to physically back up each transaction, nor do even gold certificates have to be backed or covered by gold or be redeemable or convertible into gold coins by the issuer of the certificates himself. Gold clauses can not only be used in investment certificates but also in prices, wages, salaries, rents etc. merely as a value standard. He has only to see to it that his "paper gold" remains at par with its nominal gold weight value. Then the actual convertibility of any notes or certificates can then be transferred to the world-wide gold market, embracing all gold stocks and all current gold production. Most of the commodity money advocates (gold bugs) never dreamt of such a huge redemption or convertibility fund for their supposedly ideal gold standard currency. They considered only the tiny fraction of the total which their kind of commodity currency issuers could mobilise for their purposes. Goods warrants with local shop foundation could liquidify most currently wanted goods and services while still preserving gold weight pricing and reckoning, independent of the local, national or world-wide supply of gold. When private, no-exclusive or forced paper money has been supplied, which is optional and free market rated but kept at par with its nominal gold weigh value, then it is "as good as gold" and it was usually preferred to gold as long as people expected this goodness of paper money to be continued. Monetary freedom would permit gold coin and gold certificates, whether 100% or fractionally covered, for all voluntary payment communities and at their risk and expense. After having been all too long outlawed, they would probably blossom for a while but then shrink in their occurrence and volume, in free competition with cheaper and better alternatives, which would preserve what is good in rare metal currencies (in coins or certificates), namely their use as value standards only, by those, who prefer that value standard, but would eliminate their drawback as exclusive exchange media. (For all but the voluntary victims of such a payments system.) - Say's Law would then get fully realized: All suppliers of daily wanted goods and services, suitably associated, could then issue the required purchasing power for them to achieve the sale of their goods and services within a normal consumption period. - J. Z., ­22.4.97, 7.9.02, 31.5.11. - REDEMPTION, COVER & CONVERTIBILITY TERMS SHOULD NOT ONLY BE APPLIED TO RARE METAL CURRENCIES & RARE METAL CERTIFICATES. - REDEEMABILITY IN WANTED CONSUMER GOODS & SERVICES, WITH THEIR PRICES, EXPRESSED IN GOLD WEIGHT UNITS, ALSO USE IN SHOP CURRENCIES, MERELY AS THEIR VALUE STANDARD, WITHIN A SYSTEM OF FREE CHOICE OF VALUE STANDARDS & OF MEANS OF PAYMENT OR CLEARING.

COMMODITY RESERVE STANDARD: Competition would provide better money than would government. I believe we can do much better than gold ever made possible. Governments cannot do better. Free enterprise, i.e. the institutions that would emerge from a process of competition in providing good money, no doubt would. There would in that event also be no need to encumber the money supply with the complicated and expensive provision for convertibility which was necessary to secure the automatic operation of the gold standard and which made it appear as at least more practicable than what would ideally seem much more suitable - a commodity reserve standard. ... - Hayek, Denationalisation of Money, p.83. - OR CLASSICAL GOLD STANDARD? MONETARY FREEDOM

CONFIDENCE: Ben Bernanke and The Confidence Men - - Cached 9 Feb 2011A free market economy, with a free market money (gold, most likely), would not need confidence to run effectively. ... - Also on: Ben Bernanke and The Confidence Men « Vince's Economic Blog - - Cached - 10 Feb 2011 – A free market economy, with a free market money (gold, most likely), would not need confidence to run effectively. ... - Does the value of tickets to xyz performances depend on "confidence" or "trust" or, rather, the close to 100% certainty that a wanted performance will happen? So why should e.g. ticket-money and shop-foundation currency, or clearing certificates have to depend upon "confidence" or "trust". Do we have to depend on such primitive notions on money for the next few centuries, too? - One think is sure: Neither central banks nor their bankers deserve any trust or confidence from us, judging by their performances and their utterances. - J.Z., 23.7.11 - DEBT FOUNDATION, SHOP FOUNDATION, TAX FOUNDATION, READINESS TO ACCEPT FOUNDATION, SERVICE FOUNDATION, TICKET MONEY, GOODS WARRANTS, PURCHASING VOUCHERS, CLEARING CERTIFICATES, VALUE STANDARDS, EXCHANGE MEDIA, DIS.

COMMUNISM: Communism lives on, e.g. in central banking, also in compulsory taxation and the collectivist ownership claim upon "national" territories that I call "territorialism". It is also preserved in "protectionism", social insurance legislation, legislation on industrial relations and in numerous other State interventions with the economy and our work and private lives, even in the supposedly non-communistic or even anti-communistic countries. But the worst aspect is central banking. From it either the other evils arose or have greatly grown through it. Since it is preserved by a faith it cannot be abolished or effectively outlawed. But what is achievable is tolerance for dissenters, freedom for them to opt out of central banking and to do their own things for themselves, i.e., making use of monetary freedom, as part of the whole range of exterritorial autonomy options for communities of volunteers or of freedom of action, freedom to experiment or exterritorial autonomy or minority autonomy. Since popular majoritarian faiths are not directly challenged by it, as they are e.g. by terrorists, and since monetary freedom is not appreciated by most, that is an aim that is attainable, even if only as a "fool's" liberty. It can also be claimed under the right to make mistakes, at one's own expense and risk. So much about freedom of action contrary to central banking beliefs. But that does not mean that central banking should no longer be intellectually attacked. One of the most promising attacks in our times could very well be to point out its communist connection, unknown to most of the victims of State schools or State-controlled "private" educational institutions. Even those who can't be bothered to study monetary freedom options might thus come to reject central banking as a mainstay of what remains of totalitarian communism, even in most supposedly free Western countries. - J. Z., 11.5.97, 14.5.97, 31.5.11, 31.5.11. - & CENTRAL BANKING

COMMUNISM: Ever wondered how Communist countries (*) first become Communist? It’s not the secret police who do the deed, it’s the tax collectors. That’s how the Communists wiped out private companies: they increase the tax rate steeply according to the number of employees. Only firms with less than a dozen employees had a chance of surviving. … – Len Deighton, Berlin Game, Panther Books, 1984, p.37. – That overlooks precedents like central banking for decades, monopoly post offices for centuries and the totalitarian aspect of territorialism for thousands of years. Also numerous other interventions with individual rights and liberties, all legalized, like e.g. Protectionism and Conscription. The totalitarian Communists simply did more of the same kind of territorial Statism. – (*) Countries, as geographical areas, are neither communistic nor anti-communistic. Their population is not single-minded, either, for or against any ideology or faith. To use such misleading terms favours coercive and territorial collectivism and camouflages what is really happening. – J.Z., 2.11.10. - NATIONALIZATION BY STEALTH, TAXATION, EXPROPRIATION, FINANCIAL DESPOTISM, MONOPOLISM, TERRITORIALISM

COMMUNISM: The institutions and conditions of Russia as well as those of the supposedly free Western world will remain largely collectivistic and communistic as long as the coercive and monopolistic central banking system and its monetary despotism are upheld. - J.Z., 26.8.91. - COLLECTIVISM, MONETARY DESPOTISM, CENTRAL BANKING, STATE SOCIALISM, RUSSIA & THE "FREE WORLD"

COMMUNISM: Why did and do all supposedly anti-communist parties and non-communist parties support both central banking and legal tender even after the fall of most communist regimes and economic systems? Why is that system still preserved in the countries supposedly liberated from communist regimes? Karl Marx and Engels in their platform in the Communist Manifesto of 1848: "5. Centralization of credit in the hands of the State by means of a national bank with state capital and an exclusive monopoly." In an 1848 leaflet this was further clarified in point 10: "A state bank the paper money of which is legal tender, will replace all private banks." - In the Communist Manifesto they called their programme themselves one of "despotic inroads on the rights of property and on the conditions of bourgeois production, by means of measures, therefore, which appear economically insufficient and untenable." - So, why is this despotic, insufficient and untenable system still legally and coercively upheld everywhere and hardly even criticized? - J. Z., 20.3.97. - CENTRAL BANKING AND LEGAL TENDER

COMMUNIST MANIFESTO: Did you ever read the 10 Points Platform in the Communist Manifesto? - It was expressly drafted to create an economic chaos, by economically untenable methods - a disorder in which the Communist Party could flourish and finally take over power. - Its point 5 runs: Centralization of credit in the hands of the State by means of a national bank with state capital and an exclusive monopoly." In an 1848 leaflet this was further clarified in point 10: "A state bank the paper money of which is legal tender, will replace all private banks." - We know by now and through bitter experience that neither the ALP nor the LP or CP nor the DLP have a workable employment programme. If either of them had it, it would be firmly in power. All of them, in spite of some lip service to anti-communism, support at least point 5 of the Communist Manifesto, i.e. a system expressly designed to create disorder and further the cause of communism. They do not even apologise for this but consider their behaviour as self-evidently justified and necessary. - The supposed anti-monopolists in the main parties did thus establish the largest and most dangerous monopoly of all, the money monopoly. - All Western and, supposedly free and anti-communist governments did legalise this communistic (or state socialistic or State capitalistic) proposal and outlawed all free market alternatives. (I find this communist idea in almost every mind and, almost, "under every bed" - and more or less hotly defended by most of its adherents.) - Frederic Bastiat once said: "Society Is Exchange." If this statement is correct then the socialists and other dictocrats, who raised exchange difficulties in this form and others, are thereby and to this extent revealed as anti-social elements, as enemies of society. - Full employment is something NO government can PROVIDE. Not even a libertarian government could. A libertarian government (severely limited government) would just leave the unemployed free to supply themselves with work - and to take all the monetary, financial and organisational steps required for this purpose. At most it would provide advice and would see to it that none of its own measures would continue to create and maintain unemployment. - J. Z., 1985 & 21.5.97. - & UNEMPLOYMENT

COMMUNITY CURRENCIES: The term "community" is still all too vague. Usually only territorial communities of various sizes are considered. The territorial political communities can really offer only a single tax- or rate-based currency for the range of their tax- or rate-supported services that they do offer. Non-territorial communities of volunteers, might also have their taxation, contribution, subscription or insurance premium charges for the services, insurances and protection they do offer their volunteers and could base their kind of tax-foundation or subscription-foundation money issues on anticipating this income. The other notions on "community currency" that I encountered are all too vague or, in my opinion, flawed. However, all deserve close examination, free experimentation among volunteers and good record keeping online or on discs. The following organization might come to provide that service: Error! Hyperlink reference not valid. - The CC Resource Center is an international, multi-lingual resource for those interested in Complementary Currency Systems. The founder and coordinator is Stephen DeMeulenaere, who has 20 years experience in the field. - A March 2011 entry from Facebook. The website under that name offers numerous links. - Stephen DeMeulenaereComplementary Currency Resource Center - The April 11 issue of the CC Magazine is out now! - For other local currencies a combination of local goods and service providers, most importantly a local shop association, is required to provide a locally widely acceptable currency even among those local people who, politically, are not members of the same exterritorially autonomous community of volunteers. - Local providers of e.g. water, sewage, garbage collection, electricity and gas supply as well as transport and communication services might also supply separate or combined local currencies, between them as many or as few as traffic will bear. - J.Z., 14.1.11, 25.4.11. - LOCAL CURRENCIES, TAX FOUNDATION, SHOP FOUNDATION, INSURANCE FOUNDATION, SHOP CURRENCIES

COMMUNITY CURRENCIES: They are something as vague in their monetary foundation as are "national" currencies, unless their issue and reflux policies are clearly stated and sound enough. All too often they resemble "social credit" notions and "greenback"-"policies" or the monetary and currency "policies" of central banks. They assume the existence of communities, mostly only on a territorial model. Merely to realize all the inherent wrongs and mistakes of central banking on a smaller, decentralized, but still territorial scale is simply not yet rightful and good enough. To my, admittedly, limited knowledge, of the many different kinds of "community currencies" proposed, many of which are already offered online, their supporters have no clear ideas on the traditions and proposals of sound tax foundation or contribution-foundation money and of the "readiness to accept foundation" or clearing foundation of banknotes issued on the Real Bills Doctrine, in its best form, or of e.g. the shop currency of an association of local shops. Usually, they do not see the connection between legal tender and the issue monopoly - with the inflation threat associated with them and the connection of the issue monopoly with the deflation threat associated with it. - Why should anybody accept a "community currency"? Just because it has been given this name or another? Why should anybody supply his labour, services or goods for it? What rights have the issuers, except to oblige themselves by their own IOU issues or clearing offers? Have all participants already agreed upon a sound value standard or upon free choice of value standards? Do they all recognize the right to refuse or discount any currency one has not issued oneself or obliged oneself to accept and this at its par-value? - A monetary freedom or free banking handbook, including the best refutations of all the popular errors, myths, dogmas, false assumptions and conclusions in this sphere, is still sorely amiss. Has at least one of the different schools of monetary thinking and proposals so far made use of digital "argument mapping" as proposed by Paul Monk et al online? (Dr. Paul Monk, , Dr. Tim van Gelder, , , - With this method the fog or confusion of views, hypotheses and theories, proposals, opinions and ideas could become rapidly dissolved, as it could be through a monetary freedom data bank, as proposed by Klaus Falke or through a large alphabetized encyclopaedia on all the terms, ideas, writings, proposals and experiences in this sphere, towards which I have accumulated large files. Both need of the latter attempts do, indeed, still much input from others. - At least all the supporters of "community currencies" should and could come to an agreement of freedom for all kinds of monetary experiments - among voluntary participants and become, gradually, acquainted with all the genuine rights and liberties in this sphere and should subscribe to them. - J.Z., 23.4.11. - ARGUMENT MAPPING, MONETARY RIGHTS & LIBERTIES, MONETARY THEORY

COMMUNITY CURRENCY MAGAZINE: Stephen DeMeulenaere: An excellent magazine about Complementary Currency Systems! - Error! Hyperlink reference not valid.

COMPETITION UNDER MONETARY DESPOTISM & UNDER MONETARY FREEDOM: Instead of a severe competition (which has given competition a bad name in public opinion) among suppliers of labour, goods and services, largely free to compete with each other as such suppliers, for a monopolised and thus scarce or unreliable or depreciating exchange medium, upon which all their exchanges depend but which was, obviously, not competitively supplied, nevertheless, under monetary despotism - there would be, under monetary freedom, the easy competition of not only supplying one's own goods, services and labour competitively but, also, that of competitively supplying money tickets for their acquisition and use and for paying all one's debts with them, to the extent that such money tickets or purchasing vouchers etc. can be issued at par with their nominal values (expressed in whatever value standards are found acceptable under free choice of value standards). Not only the goods, services and labours could be almost endlessly varied, as wanted, but the means to pay for them could be, too, by those who have the wanted consumer goods, services and labour to offer. Each certificate would only have to offer that degree of variety of local goods and services as its redemption fund which would induce potential acceptors to accept it at par. Thus severe competition in goods, labour and services supplies would be ended through an easy competition in the supply of goods-, service-, and labour vouchers, in convenient denominations and issued by the local suppliers, the retailers, within the limits of their supply and labour capacities. No more monetary bottleneck or excess friction would exist. Each supplier could also supply the purchasing power to turn over all his supplies and could do so over and over again. The quantity of goods, services and labour could be freely brought into balance with the quantity of purchasing media for them, by the goods and service providers themselves, rather than by outside monopolists, who have other priorities and even contrary interests to these suppliers and no rightful claim to dispose of the goods, services and labours of others by means of exclusive and forced currencies. Monetary emancipation would fully realize or emancipate competition, too, as well as free cooperation on a free market. - J. Z., 14.4.97.

COMPETITION: [A]s we have seen, when the Individualist Anarchist proceeds to reduce his principle to practice, he is inevitably led to Mr. Tucker's program of "competition everywhere and always" among occupying owners, subject only to the moral law of minding their own business. - George Bernard Shaw, The Impossibilities of Anarchism, London, Fabian Society, 1893 (published as Fabian Tract 45). Reprinted by Leonard L. Krimerman & Lewis Perry, Patterns of Anarchy, Anchor Books, 1966, p.506. (Pages 500-514.) - INDIVIDUALIST ANARCHISM, BENJAMIN R. TUCKER

COMPETITION: Competition from unregulated markets makes life tough. - Lisa Allen in THE AUSTRALIAN FINANCIAL REVIEW, 7.6.11, p.13. - There is, obviously, no competition from unregulated exchange media, clearing options and alternative value standards. That is one of the main factors which makes it tough for the jobless, those still employed, the employers, producers, wholesalers and retailers and other traders still in business, as far as they can be under xyz wrongful and irrational restrictions and wrongful charges upon free enterprise and free exchanges, which have created almost the opposite of a free market in every sphere. Even this financial review manages to overlook that or passes such notions without critical comment. - It is the lack of competition and the over-abundance of wrongful laws and regulations which makes our lives relatively hard, quite wrongfully and unnecessarily. However, the believers in regulations and other restrictions should be quite free to impose them - upon themselves! - Monetary and financial freedom only for their volunteers and monetary and financial despotism only for their volunteers! - J.Z., 22.6.11. - DIS., REGULATIONS, CHAINS UPON FREE MARKETS, PANARCHISM, PERSONAL LAWS, TOLERANCE FOR TOLERANT ACTIONS & EXPERIMENTS, VOLUNTARISM.

COMPUTERISED MONEY, DIGITAL MONEY, LEGAL TENDER, INTERNET MONEY: How sound can they be, or how soundly can you judge the currencies involved, if all you see and can know about them, through the computers, are figures on a screen? All face to face evaluations, knowledge of particulars, trades, goods and services involved are abstracted in the process. Moreover, the prices quoted are often prices artificially and wilfully manipulated by governments to give a wrong impression. Such money manipulations can occur, as despotic actions, almost at any time and at any degree. The monopolized and forced currencies traded, as well as those which are offered on the Internet, are all too separated from daily consumer goods, services and labour exchanges and their conditions. The exchanges and exchange media offered by monetary despotism and to a large extent also those offered only electronically, via the Internet, are all too anonymous, not immediately visible, touchable or testable. Too much has to be accepted upon legal commands, faith, advertisements and reputations. It is almost as if one considered only the markets established by powerful criminals, organized crime, pirates, highwaymen, with their loot, their fiat money, their requisitioning certificates, their regular and irregular tributes and levies, and from them tried to judge the economy in general and come to rational decisions. Indeed, the government securities traded in the money markets are investments in tax slaves. When and where and to what extent these tax slaves will finally rebel or simply refuse to pay or evade or avoid taxes can't be safely predicted. To the extent that credit claims to cash or gold are traded, and lead by its system to of an immense non-cash payment and clearing structure, upon a comparatively small gold and legal tender basis, with creditors entitled to demand rare metal cash or legal tender paper money (of which there is never enough to pay all the current non-cash payment and clearing claims), the whole system is very unstable and subject to panics and collapses at any time. Consider also the huge stocks of U.S. paper dollars hoarded all over the world because the other national currencies are, usually, even worse. As soon as the other national currencies improved or became more stable than the U.S. dollar, then these huge amounts might suddenly flow back to the U.S., leading there to a strong paper money price inflation, since there they still have legal tender purchasing power. Who can predict when that will happen? - The whole embodies all the uncertainties of the old court watchers, the Kremlin watchers of recent decades and of the Washington and Tokyo watchers etc. - While the government is still despotically involved with currency and finance - this market cannot be free and sound, either. - Digital monies are still far from being local currencies, useful in local shopping centres. LETS is, perhaps, the best example for this. However, as I learnt from my relatives nearby, for larger private purchases within driving distance, the information of offers for sale there of wanted items can be very rich and helpful. They also managed to sell some of their surplus items this way - with both kinds of deals for legal tender currency, just like in garage sales. - J.Z., 12.4.97, 18.5.97, 1.6.11. - DIGITAL CURRENCIES

COMPUTERIZED MONEY SYSTEM: Can any electronic system, no matter how extensive, and how often it is changed or reformed, be a full substitute for the inventiveness, creativeness and ingenuity of free participants in a free market for exchange media, value standards, foundations, clearing and credit methods etc. and the subjectivity of values for different people or is it merely another instance of the "one size or one utopia fits all" notion? Especially libertarians should be wary of computerizing all their transactions, making them thus more or less open to government snooping with the most expensive and extensive decoding equipment, software and manpower resource for that purpose. While in a quite free market computerization would offer many advantages, under the rule of territorial governments it also offers many disadvantages. Computers, software and their networks are not and may never the panacea that many people expect them to be. I find that indicated by the way libertarian computer users neglected and still neglect e.g. their microfiche, floppy disk and CD-ROM publishing options for libertarian literature. - J.Z., 27.8.02. - However, in the same year I discontinued the expansion of my libertarian PEACE PLANS on microfiche, because most libertarians, apart from their preference for texts in print, which I can't afford to offer, they much prefer to get then digitized rather than on microfilm. - J.Z., 1.6.11.

COMPUTERIZED, DIGITAL OR ELECTRONIC CURRENCIES, PRIVATELY SUPPLIED & MANAGED, FOR CLEARING PURPOSES ONLY: This kind of clearing money would have to be hacker proof. Forgery would also have to be prevented. Any PC should easily connected to a  payments centre. All one's digital spending should provide one's identity, assured by scanning, codes, pass words, whatever. The system should also be pre-programmed to sound an alarm at the account holder's computer and a security check computer at the clearing centre, whenever any tampering with any account seems to occur, e.g. by repeated tries to hit upon a code number, flawed scanning etc. E.g., the credit card, holding the phone clearing credits of a participant, might be associated with a beeper that would indicate to the card holder any attempt to spend from his account. Then he should have the option to press a button leading to the message at the clearing centre: I am not trying to spend anything now. Apparently, a fraudulent attempt is in process to use my account. - Then such payments attempts, at the expense of others, without their consent, should not be completed until the matter has been clarified via checks with the account holder. Whoever made the attempt to break into an account and rifle it, electronically, should also become automatically and electronically traced and identified. - We may not be there yet but we might not be very far from that situation, either. I am less worried about this than about governments, especially the tax department, getting access to this kind of private trading and paying. Security against this should become close to 100% before I would prefer that system to cash payments. - Some claims have already been made for a large degree of security for private payment channels. I do not know how true and how costly these security avenues are. - Perhaps as an experiment, libertarians and anarchists could set up such a system among themselves, for the exchange of printed, disked, micro-fiched, on-line literature or literature compilations on hard disk drives, ZIP disks and CD-ROMs of the cheapest kind, that offer only text files. Expensive multimedia are not necessary to convey essential freedom information. - I still think that e.g. 5,000 active micro-fichers in the world, producing and reading microfiche actively, could use their fiche between them to set up a clearing bank, using a microfiche of acceptable quality of reproduction and legibility, as a value standard unit and also quantities of them, as media of exchange. If each participant deposited a few duplicates of each of his issues at that central bank of freedom microfiche, then he could there get a corresponding credit, in form of the other freedom microfiche that he wants. The centre might also act as a literary agency for the participants and offer their fiche for sale, directly, on a commission basis or by mediating subscriptions. Thus it could cover its costs and make some profits - provided only that microfiche would have been already as widely accepted as that. Indeed, that might never happen, in spite of all the advantages this medium offers. But the potential is there. - J. Z. - 1.5.97. - The potential is much greater for digitized texts transferred as email attachments or in large batches, whole special freedom libraries, on discs. - Such exchangers might reckon in MBs or GBs of wanted texts. - Libertarians should make a start with such exchanges, until finally a complete digital freedom library is achieved, portable in a powerful and high capacity disc drive, still so cheap that such drives are currently offered at slightly below A$60 per TB. - J.Z., 31.5.11.

CONFIDENCE & TRUST: The present banking system of monetary despotism does not deserve the maintenance or restoration of confidence or trust but, rather, the solid establishment of permanent doubt and distrust and the replacement of this despotism by the individually chosen alternatives of monetary freedom. - J.Z., 15.3.97. - DIS.

CONFIDENCE: An honest currency is not a confidence game or trick. It can be as honestly offered and accepted as goods and labour services can be. - And its quality could be as rapidly checked: E.g., would it be accepted as "as good as gold", or at its other par value, to a different standard used in it, in the next shop or service station? If it is, any suspicion, distrust and lack of confidence would be rapidly dispelled. - One might even say that it is a self-interested confidence game of advocates of an exclusive and either 100% or fractionally covered gold certificate currency, to insist that "confidence" would be required for banknotes. Such nonsense is simply thoughtlessly copied, from one author or lecturer to another, over generations. - J.Z., 6.11.91, 26.4.97. - DIS.

CONFIDENCE: Confidence as the basis for the value of a currency? Nowadays you can only be confident that a government paper currency will NOT be redeemed by the government issuer (or its central banking system) in gold or silver or by any private bank, forced to deal only in the government's forced and exclusive currency - or forced and exclusive currencies of other governments. - You can also be confident that you can pay your taxes with it and that the government will mostly back you if you use its depreciated currency to cheat your creditors with it for part of your repayment obligation. At most you remain somewhat free to try to purchase rare metals with it, at current paper prices for gold weight units, often taxed for such transactions. - J.Z., 16.3.97. - DIS.

CONFIDENCE: Only that confidence is needed for a currency, to be widely enough accepted, at least locally, that consists in the assurance that one can buy with the currency all one's wanted consumer goods and services and pay one's debts with it. When this confidence is assured then it comes close enough to a certainty. A further guaranty by the issuer: a promise to deliver gold or silver for the currency, too, upon demand, is then not required and thus metal redemption will be renounced by competitive note issuers, as a superfluous and expensive as well as insufficient luxury. It will also not asked for by most users of freely competing and market rated optional currencies. If they really want to buy gold, instead of consumer goods or services with their various local and competing shop currencies, they would remain free to do so on a free gold market. - J. Z., 16.3.97, 1.6.11.

CONNECTION, THE: Published by Erwin S. Strauss: On and off it discussed also monetary freedom options, e.g. Dio in TC141p48, Jim Stumm in TC142p29. Stumm, in TC133p115 sees Gresham's Law correctly: Without legal tender & money monopoly, good money drives out the bad. Some of the usual objections are raised by D. Ust, in the same issue, p.52. Strauss offered some comments to them in TC134p6. I marked 3 free banking contributions in TC143, on pp 8, 9, 38/39. - I would like him or others providing all back issues digitized and the magazine also continued in this form, sent as an email attachment to subscribers. It seems to be still continued only in print, up to March 2011, according to the WIKIPEDIA: You can get a sample issue for $2.50, or an 8-issue subscription for $20, by writing to Erwin S. Strauss, 10 Hill Street, #22-L, Newark, NJ 07102, USA. - Google offered today 2840 hints to him and this magazine, many less when I put the search words in quotation marks. - Email address & website? I did not see any mentioned. Latest issue number I noticed: 258. - J.Z., 1.6.11.

CONSIDERATION FOR OTHERS: A system of monetary despotism is hardly considerate towards the rights and liberties of others. It does not learn from its mistakes. It does not allow its victims to opt out from under it. It does not permit competition by others. It is the product of totalitarian fanaticism. Under the pretence of providing the greatest possibly public services it manages to provide, actually, some of the greatest possible public disservices and this not only for a moment but, for years and even decades, and this with the consent of most of its victims, while suppressing the free actions of a few enlightened individuals and groups, that could clearly show up its wrongs and defects. - J. Z., 11.5.97.

CONSPIRACY THEORIES: To assume that all accountancy and trustee companies and directors of banking coops are unanimous members in an international conspiracy, to "cover up" an endless "creation" of deposits and credits out of thin air, goes a bit too far for me to take on credit or faith, just upon the hot air or written ones assertions that such things could and would occur. Some accountants have written detailed reports to prove that such frauds and cover ups do not and cannot occur (although many other culpable acts do happen in this sphere), and that we have here merely one segment of the many sectarian and prejudiced popular beliefs on money and credit. - J. Z., 3/97, 1.6.05. - & CREDIT-, MONEY- AND DEPOSIT "CREATION"

CONSTITUTION PARTY, Ballot Access News » Blog Archive » 2012 Constitution Party ... - - Cached - 18 Nov 2010 – The same is true with a so-called free market money system. One major mistake our Founding Fathers made in writing the Constitution, ...

CONSTITUTIONALISM: First Snowfall of Kondratieff Winter - - Cached - 1 Feb 2008 – If the United States followed the free-market money of the Constitution instead of establishing the Federal Reserve that manipulates the ... - No territorial constitution was, so far, ever good enough in that sphere! - Some of the merely proposed ones are, at least for their volunteers. - J.Z., 24.7.11.



CONSUMER PRICE INDEX: How can one achieve the transformation of a politically determined and correspondingly fraudulent CPI to one or several ones that are economically determined? Full publicity on the details of its determination would be essential. Without them one cannot criticise its foundation. A debtor, as large as the government, with its CPI committed payments, should not be permitted to manipulate the CPI under the pretence of properly measuring the inflation which it caused in the first place, and still continues, through its legalized monetary despotism, thus diminishing its debt burden through unilateral and fraudulent action, under the pretence that it would fully undo the inflationary effects it had caused, at least at annual intervals, for some people, so "protected". (That would leave, for instance, the losses through the degrees of weekly and monthly depreciations, for those receiving regular weekly or monthly payments, like wage and salary recipients.) Naturally, the abolition of monetary despotism would be a more fundamental solution. But honestly compiled indexes, well publicised, could be among the first of the required steps to reveal monetary despotism for what it is. - One wonders why the creditors of the government, so defrauded, do not speak up and defend their interests. Also, why supposedly free economists do not speak up against this fraud. - How much does the government owe its CPI indexed creditors, every year still, after it fraudulently determined the CPI in its favour? - We do let governments get away with all too much, against our own rights, liberties and interests. - J. Z., 14. & 18. Dec. 93, 2.5.97, 1.6.11. - INDEX DETAILS, INDEX CURRENCIES.

CONSUMER PRICE INDEX: How honest or dishonest is e.g. the Australian Consumer Price Index (CPI)? E.G. Superannuation payments are determined by it. Personally, observing the prices that I have to pay as a consumer, I was always of the opinion that it understated the inflation rate - because that was opportune for politicians and saved them money in indexed payments. I was also assured by several economists that in the determination of it, in Australia, some price controlled items were intentionally included. That is an obvious absurdity, wrong and fraudulent. To measure inflation one should use only prices that are not controlled, or artificially kept low or perhaps subsidized. Details on which of hundreds to thousands of possible indexing methods are used in Australia to determine its official CPI, are not known to me. Unfortunately, the mass media and associations of employers, employees, retailers and wholesalers are not supplying or sufficiently publishing independent and other CPIs, to my knowledge, that would help to throw doubts upon the official one. - J. Z., 6.7.91, 30.4.97.

CONSUMER PRICE INDEX: The official CPI seems to be an at least annually repeated malicious and self-interested lie of officials entrusted with its calculation and application. It harms millions, whose incomes are thus wrongly indexed in the inflated and forced currency of the government. The culprits involved seem to remain anonymous and immune from prosecution and even from public censure by genuine economists. So far no investigative journalist has tackled this fraud, as far as I know. No one has been brought to court for it, as he should be, by a class action. The top rulers and politicians do not depend upon CPI increases. They seem to legislate salary increases for themselves and various perks almost as they please - and then even cheat in their declarations on their recoverable expenses. When one was recently found out, an Australian Senator, he first blamed mere accounting mistakes. But, apparently, there were dozens of them and almost all in his favour. (No full reporting on this took place but the matter is supposedly under full police investigation.) When he pointed out that most of his colleges did the same, he earned their wrath, risked his future and was called a traitor. Indeed, he betrayed their all too common frauds and dishonesty. They did not like that. But this hue and cry is likely to be soon over and these rorts will go on and on, in one form or the other, usually far beyond an honestly determined CPI, which they have so far not managed to provide for poor retirees like myself. The State Superannuation Fund, to which I was forced to contribute at least a minimum amount annually, was once bragging that it provided cheap, i.e. very low interest housing loans to other than public servants. The "representatives" of the thus "insured" remained silent. Moreover, the employer's half of contributions were not paid together with mine, earning interest over the years, but, in nominal and depreciated dollar amounts, only when I retired, after 28 years. Economically, these contributions were part of my wages and as my wages, if invested, would have earned interest over almost 3 decades. Another fraud in this old age security system which is passed over in silence by most. At least part of this superannuation fund's accumulated reserves had, probably, to be invested in government insecurities - repayable largely by the same people in form of taxes, although in depreciated money. Rorts upon rorts. And at the same time quite honest and safe old age security arrangements are outlawed and the existing systems are frequently interfered with and taxed and regulated contrary to the interests of the thus "insured". I was not at liberty to opt out of that system, while I remained a public servant in NSW and to adopt an alternative old age security option not government regulated and controlled. Even if I had been allowed to opt out, all the others would be just as much be wrongfully meddled with, quite legally and none of them was free to offer value preserving clauses, except to the extent that it was also investing in CPI indexed government securities. Flawed as this CPI is, to the advantage of the Fund, or its favoured borrowers, and to my disadvantage, at least I am somewhat protected by it against the results of further inflations of the Australian governmental paper dollar. What is misnamed social or old age "security" has actually forced many people into involuntary poverty, who, under full monetary and financial freedom could have become rich in their old age on no higher contributions than they were forced to contribute to achieve a low pension or superannuation in their old age. Never trust any territorial government to get or do anything right. - J. Z., 30.4.97, 1.6.11. - COST OF LIVING

CONVERTIBILITY: Convertibility is a safeguard necessary to impose upon a MONOPOLIST, but unnecessary with COMPETING suppliers who cannot maintain themselves in the business unless they provide money at least as advantageous to the user as anybody else. - Hayek, Denationalisation of Money, p.84. - Some have argued that there would be a competition to provide the best possible convertibility and that would be a 100% convertibility by the issuer upon demand of the note holder. However, under free competition it would soon be revealed that convertibility of banknotes into gold coins as their bank of issue and the ultimate liquidity or guaranty that people would like to receive upon failure of a bank of issue is less important for the current value and use of a currency than is its acceptability, right now, for goods and services in daily demand. Consequently, and in order to save the outlay for a gold redemption fund, many issuer would proclaim merely that they are always ready to provide for convertibility of their notes into goods and services that are in daily demand and priced in gold weight values. They would clearly state, that they would not supply themselves their equivalent value in gold weights, too. Instead, they would merely price their goods and services and their debts in gold weight units and accept their own notes at par with their nominal gold weight value (and other notes only at their gold weight value in a free market). In other words, they would only try to preserve the par value of their own notes with gold weight units but without obliging themselves to supply gold coins on demand. Those who would then wish to acquire gold with them, rather than purchase their nominal gold weight value in goods and services, would be referred not to any stocks of gold that the issuer might also posses, for other than currency purposes, but, instead, to the greatest gold reserve and redemption or convertibility fund of all, that of the whole world, of all of mankind, the one available to all buyers and sellers of gold, to all fans of convertibility, metal cover, gold value guaranties and redemption, namely to the free gold market. They cannot demand more than that the notes which they hold of any issuer are accepted there at par with their nominal gold weight value (or as good as gold). With the maintenance of that par value the rightful obligation of the issuer would be ended. Nor would the issuer be obliged to maintain the par value of his notes outside the locality where he issues them as turnover or clearing media. He is not under any obligation to maintain them at par in the whole country, other countries or the whole world. At the place of issue no only the issuer but most of the whole local trading community would treat his notes as good as gold and so would the local gold sellers. But, ultimately, only the issuer would be obliged to accept them at par from anyone and that would tend to keep it locally at par in other local transactions as well. What more can one rightly ask for from any as convenient paper means of exchange than its local purchasing power and value being at par with its nominal value? It would then be considered as superfluous and unnecessarily expensive to try to provide each note holder with a 100% or fractional gold metal redemption fund as well. Those who do not offer it and declare that they will not cover their notes thus, would win out in free competition. Their prices will be lower and their exchange media and their value standard will be just as good or even better and less subject to fraud and deception and runs upon the remaining gold hoard of an issuer. - J. Z., 18.4.97, 1.6.11. - REDEMPTIONISM, FRACTIONAL OR 100 IN RARE METAL OR 100% IN WANTED OR NEEDED CONSUMER GOODS? SHOP FOUNDATION, GOLD MARKET CONVERTIBILITY, GOLD WEIGHT VALUE ACCOUNTING VS. CLASSICAL GOLD STANDARD


COPYRIGHTS: Seeing the catastrophic consequences of monetary despotism - and how often they occurred and for how long, should we still insist upon copyrights for all monetary freedom writings, when this might obstruct their publication or republication? Or should we try to promote their duplication and publication by any means, in any medium that we can afford, fully aware that at least at this stage it would be almost impossible to acquire any riches or even to recover the costs of such publishing efforts? Or can you imagine any such writings becoming best-sellers, soon? - J.Z., MFNL&MF 3/4, 2/89. - FOR MONETARY FREEDOM WRITINGS? RENUNCIATION OF COPYRIGHTS FOR MONETARY FREEDOM WRITINGS, AT LEAST UNTIL THIS BASIC LIBERTY IS FINALLY ATTAINED


COSME, PARAGUAY, Cooperative Colony, had a Labour Exchange Bank, according to TIMES, Aug. 31, 1897. - Source: Anton Menger.

COST OF LIVING: Always a problem. With inflation you worry about the cost, and with deflation you worry about the living. – Anon. – This would be nothing to worry about if we worried enough about monetary and financial despotism to abolish them, at least for the affairs of an enlightened community of volunteers. – J.Z., 25.8.10. - CONSUMER PRICE INDEX

COST OF LIVING: When I first started working I used to dream of the day when I might be earning the salary I’m starving on now. – Anon. – Not enough people dreamed about their monetary and financial freedom options and thus they became victims of monetary and financial despotism – and most of them still grant it the sanction of the victims. – J.Z., 25.8.10.

COST-PUSH & WAGE-PUSH INFLATION: These notions are based on the same fallacies as those of the wage-price-spiral. They ignore the monetary factor or assume merely the degree of monetary mismanagement that is normal for monetary despotism, in which politicians depreciate the currency in the effort to maintain their own power by buying votes with inflated paper money (inflation tax) and with other taxes funding their "government-spending" programs. - J.Z., 24.3.97, 30.8.02.

COST-PUSH INFLATION: In the strict sense, there is simply no such thing as a 'cost-push' inflation. Neither higher wages nor higher prices of oil, or perhaps of imports generally, can drive up the aggregate price of all goods UNLESS THE PURCHASERS ARE GIVEN MORE MONEY TO BUY THEM. What is called a cost-push inflation is merely the effect of increases in the quantity of money which governments feel forced to provide in order to reduce the unemployment resulting from a rise in wages (or other costs), which preceded it and which was conceded in the expectation that governments would increase the quantity of money. They mean thereby to make it possible for all workers to find employment through a rise in the demand for their products. If government did not increase the quantity of money, such a rise in the wages of a group of workers would not lead to a rise in the general price level but simply to a reduction in sales and therefore to unemployment.- Hayek, Denationalisation of money, p.75. - WAGES, PRICES, QUANTITY THEORY, INFLATION.

COUNTERFEITING: Counterfeiting is a crime which politicians monopolise. - Stormy Mon, TC121, 29.7.84. - CAN one "counterfeit" one's own notes? - The issue-monopoly of central banks and the legal tender coercion and monopoly of its nominal paper "value standard" are by themselves criminally wrong and harmful enough without adding the false charge of "counterfeiting" the own notes. - When other governments counterfeit the notes of the own governments, or when private forgers do so, or when private banknotes are forged by criminals, then that is counterfeiting. - J.Z., 2.8.89, 29.4.97. - The wide circulation area and long circulation period as well as the uniform appearance of government paper money makes large-scale and prolonged forgery of it easier and more difficult and slower to find out. - Thus some people predicted that some day government currencies might become destroyed through forgery. Usually they manage self-destruction well enough on their own. - J.Z., 9.9.02. - FORGERIES, DIS.

COUNTERFEITING: If you do it it's illegal. - From a Workers Party leaflet: Something's Wrong in Australia. - A forger does not forge his own notes but those of others. At most he could water down his stock or issue more of his own notes secretly than he has promised to do or recorded as having done. But all his notes would still be genuine. Only their value would be reduced. Not a single one of them could be declared to be a total forgery and quite invalid, although the purchasing power of all of them would be reduced. - J. Z., 19.4.97. - Alas, I had subscribed to the same error myself, when I wrote on 14.11.73: If you want to engage in counterfeiting legally, join the central bank. - & INFLATION OF LEGAL TENDER PAPER MONEY, DIS.

COUNTERFEITING: The biggest counterfeiters have been governments. - Jack Allen Horrigan, article "Inflation Island", 10/1971. - One can hardly "forge" one's own notes but, under legal tender and the money monopoly, one can multiply them and still this increased volume of money into circulation and thus depreciate it and drive up all prices expressed in it. In each transaction the creditors are not cheated out of the whole value, as by the use of a forged note, i.e. an entirely invalid payment, but instead, merely by the inflation percentage. - Advocates of monetary freedom should try to avoid inaccurate terms. They should leave that activity, as a monopoly, to the advocates of monetary despotism and attack these lies and false pretences with properly expressed truths and correct terms. - J. Z., 18.4.97, 1.6.11.

COUNTERFEITING: When Block discusses counterfeiters, even his economic arguments falls apart. His protestation that paper money is already counterfeit is irrelevant. The counterfeiter, whether government or private, is an aggressor, defrauding others of rightful value. The real crime of the counterfeiter is not that he copies worthless government notes but that he passes on his own worthless notes to innocent victims. To say that government theft justifies private theft is an argument worthy or the New Left, not a self-styled defender of liberty. - Sharon Presley, where? when?

COURT CASES: I think them too costly and having much too low chances for success, when an attempt is made to uphold genuine individual rights and liberties which a territorial government does not recognize. Most likely only the lawyers would benefit. The time and energy involved for the litigants and the costs, would be better spent upon research, studies and publishing efforts. - J. Z., 7.4.97, 1.6.11. - AGAINST MONETARY DESPOTISM? HUMAN RIGHTS, JURISDICTION OF GOVERNMENT COURTS

COURTOIS, French economist who opposed the note issue monopoly - according to Rist. - No further details known to me at this stage. - J.Z., 23.7.11.

COVER: As money cover can serve anything that is found acceptable by well informed acceptors of a paper money in a free market. - J.Z., 77 & 97. - FOR MONEY ISSUES, ACCEPTANCE FOUNDATION, SHOP FOUNDATION, TAX FOUNDATION, DEBT FOUNDATION, READINESS TO ACCEPT FOUNDATION, CLEARING FOUNDATION

COVER: Goods already sold to wholesalers or retailers are a better cover for notes than merely speculatively warehoused goods of manufacturers or speculators, withheld from sales in the hope for higher prices coming up or goods that are can be sold not for normal market prices at all but merely for emergency sales prices, i.e. at huge discounts and, possibly, only at a loss. That there can be "illiquid" goods, stored in hopes of future buyers, I know only all to well - as the producer and distributor of libertarian and anarchist micro-fiched literature. - My microfiche have certainly not yet acquired currency or bestseller status and are not even suitable as yet for inclusion in e.g. LETS exchange lists, for lack of demand for them and, usually, not even included in many bibliographies and abstracts. - Microfiche are illiquid assets and others than libertarian microfiche publishers and readers, like me might not even consider them as assets at all. - But they do last and are available upon demand while, apparently, much of the Internet information stays there only temporarily and only a fraction of the temporary appearances is so far being archived by some, probably of all whatever it may offer in the monetary freedom sphere, so far. - Only some literature and address lists have reached me so far from that source, thanks to some correspondents - and some disks which my systems won't accept or read at all! - J. Z., 4.7.91 & 12.4.97. - By now at least a comprehensive web archive does exist: - FOR NOTE ISSUES



COVERS & RESERVES: Security provisions or guaranties in case of bankruptcies, when the circulation efforts of banks of issues have failed, should be distinguished from securities, safeguards, covers, reserves, clearing and reflux arrangements that limit the quantity of exchange media issued, assure demand for them, make certain that they stream back to the issuer and preserve, as far as humanly possible, the par-value of the notes with a sound and self-chosen or acceptable value standard. These latter precautions are necessary to the sound functioning of alternative, optional, privately or cooperatively issued local currencies. When these precautions have all been taken, then the former precautions for the day a wide-spread distrust of a note issue and a run on the bank, or of liquidation of a bank's the note issue business, would not be necessary at all - at least not for such sound banks of issue. (What kind of "securities" would be necessary for banks that issue capital securities is another question. Some might merely issue securities to make the real capital assets - as well as capital expectations of their customers - more liquid and transferable, as liquid as one can make capital securities. They can't be made as liquid as currencies have to be - upon this foundation alone.) - Back to note issuing banks and e.g. shop associations issuing local currencies with shop foundation: Unlimited liability for the directors of such banks would not cost anything, could not do much harm and might do some good. Also some common sense rules, like a limited area for loans and circulation, a limited circulation period, the obligation to use other exchange media received to purchase the outstanding own notes at par, the acceptance of other exchange media only upon payment of a small fee, whenever the own notes have suffered a small discount, publicity for all issues, the stopping of further issues upon any but a trivial and temporary discount, contracts with the debtors of the issuing bank that bind them to acceptance at par, the discounting with notes only of "real bills" (sound commercial bills) or their equivalents, which are short-term and do represent goods already produced and sold and on the road to the retailers, if not already in the retailers' shops. - A currency is accepted as a "current" currency, at least as a local currency, not because in case of a bankruptcy the creditors would be able to resort to a guaranty fund but because there is a current use for it, either for the note holder himself, or indirectly, through a current demand for it by others, for their consumer satisfactions and other debt obligations. This and the final readiness to accept them, in debt repayments to the bank of issue, and its debtors, who would mainly be suppliers of goods and services in daily demand, and the demand for the notes to pay wages, salaries, and one's own profits etc. with them, do constitute the essential debt, demand, clearing, reflux or shop foundation for sound local currencies. Without it even gold coins would only be of some use to some. If these few could not convert some of their gold coins readily into food and shelter, they would perish. Without this shop foundation small money tokens would be no more useful than e.g., shares are as means of payment. - Which other local covers than shop foundation could and should be mobilised by a single or competing local currencies? E.g. the services of professionals and tradesmen, also those of local restaurants, pubs, coffee-shops, all kinds of eateries, entertainment centres, bus companies, taxi services, the local rail connection, and the local rates and fees, legally granted to or extorted by the local government, the local suppliers of gas, electricity, water, sewage and garbage disposal services. As long as any shortage of exchange media is still perceived or expressed in a premium for local exchange media over their value standard, no monetary payment sphere, which could issue its own sound exchange media, should "poach" all its means of exchange requirements from those who have provided their own media of exchange for their own purposes. Custom and ethics on this might, one day, become as strong as e.g. the condemnations of cheating are, when gambling. If you can help yourself in this respect, then you ought to help yourself in this respect. Mature adults mostly feel strongly the urge to become self-supporting, not a burden upon anyone else, if they can help it at all. (Welfare States have greatly diminished that feeling for self-support and self-responsibility. - J.Z., 8.9.02.) That aspiration should become extended to becoming monetarily independent as far as possible and convenient to do so. Naturally, nobody would be obliged to issue personal notes that could have only a limited local circulation among a few and that only at a considerable discount. However, as soon as proper discounting facilities are locally established, combined with proper clearing services, then even individual issuers of IOUs, known to be honest, industrious and productive, could issue their own IOUs, in standardised denomination, not for general circulation, but bring would bring them to a local discount or exchange office to get them there exchanged into one of the local currencies. That discount or exchange office would then have the task to put these IOUs or clearing certificates into the hands of the few who, with them, would want to purchase the goods and services of the issuer of these personal notes or money tokens. Upon purchase, they could then present these IOU's etc. to the issuer in full payments, at their par value, either themselves or through their bank. For at least towards the issuer any note must have, juridically, a full legal tender, i.e. debt-dissolving power at its nominal value. The issuer cannot rightfully and unilaterally repudiate such a debt. If he tried to this, then he could be criminally prosecuted for fraud. - J.Z., 25.4.97. 1.6.11. - REFLUX, REDEMPTIONISM, DIS., CLASSICAL GOLD STANDARD, HARD MONEY, REAL MONEY, SHOP FOUNDATION, READINESS TO ACCEPT FOUNDATION

CPI & INFLATION: The official CPI (Consumer Price Index) is intentionally full of misleading figures, because the government has a vested interest in not letting it represent the real and much higher inflation rate. It is obliged to pay CPI-indexed pensions and the real inflation rate would make a bad impression high during elections. - It also has largely pre-empted the market for other price-index calculations. If they are compiled at all, by compilers not salaried or subsidized by the government for their labors, then the government largely sees to it that their divergent figures are not widely enough publicized. The mass media do not want to offend the government, which is one of their biggest advertisers. I would like to see a tabulation of the official CPI rises over the last few decades, side by side with the real prices of some of the standard consumer goods and services for the same periods. Not even the rise in the A$ paper money notes and governmental coin circulation is regularly announced, nor are the rising figures for both, for the last few decades, put together and published. It is much easier to defraud people who are kept in ignorance. - J.Z., 23.1.01, 27.8.02. - CPI: CONSUMER PRICE INDEX, COST OF LIVING, INDEX CURRENCIES.

CRAIG, KEVIN: Banking and Money -- KEVIN CRAIG - "Liberty Under God" Beginning ... - - Cached - Free Competition in Currency Act Stop inflation, bubbles, and recessions by permitting free market money to compete with Federal Reserve Notes. ...

CREATION OF CREDIT: Creation of credit or money by the banks leads to inflation. Banks can create credit or money out of nothing or can multiply any deposits or money they receive by a factor of ten. - Popular opinion. - 1.) Credit is not created by any bank but, rather, through the mediation of a bank, given by its customers, its depositors, to the extent that they do not dispose themselves of their deposits for their own purposes and, especially, to the extent that they grant the bank fixed deposits or buy its securities for a certain period. - 2.) Inflation could take place only when there is "refinancing" by the central bank with newly printed legal tender money (when under free market rating and monetary competition this money would suffer a discount and widespread refusals to accept), in case the first, secondary and following depositors want to utilize their deposit accounts for their payments at the same time. But then we would have a coercive inflation of paper money and not "credit creation". When not supported by fictitious deposits from the central bank or additional fiat money issues by it, private banks can only transfer and not multiply accounts. For each credit they have to account an equal debt, for each debit an equal credit. As long as their computers do not malfunction - and correct bookkeeping checks would soon reveal that, no multiplication of credits takes place and a corresponding multiplication of debits would soon be protested by the victims. Credit and money creation by private banks is entirely imaginary, a false doctrine of Social Credit ideologues. - Without this "refinancing" by the Central Bank, when any private bank has over-extended itself, e.g. by wrongly investing short term deposits in medium to long term loans, or in other cases of fraud, embezzlement or careless investments in the irresponsible spending of some more or less despotic foreign regimes, or in the wasteful projects of the own governments, corresponding bankruptcies would and should occur. Banks should never give their short term or instant withdrawal creditors the impression that they could at any time fully withdraw their funds - in all cases in which they have been invested, at least in parts, in illiquid funds. - But if there is an agreement between short term depositors and a bank that specifies that their money is repayable only e.g. in instalments, as it becomes available from the repayment of loans, i.e., as soon as possible, then no run can and will take place and the transaction can be honest on both sides, with spare funds, from the repayments of due loans, used as best as they can be used. I doubt that under free competition such banks would be very successful but, at least, they would avoid the term or timing risk. Medium and long-term loans should always be financed only by corresponding medium and long term deposits or savings, best by the issue of corresponding securities. Otherwise, the banks would sell to the short term depositors only the illusion of having liquid funds while they have in reality only a claim upon the medium and long term debtors of the bank. If the governmental bank supervision or governmental juridical system and governmental auditing or government approved auditing system worked, then such abuses would not be possible in most cases or on a very large scale or for long. But, in the absence of fully free banking they are likely to occur often. - Money or credit can no more be "created out of thin air" than can anything else - except the constituting elements of thin air and even that process is not cheap. (Example: Nitrogen production out of the air for fertilizer production.) - Credit cannot be created by cheque issues, either. In Germany cheques must be presented within 8 days. Receivers of cheques use them fast for credits on their accounts and do not leave their accounts idle as a rule. People are not only savers but spenders. Borrowers, especially, are more spenders than savers, at least when spending their loans productively, to enable them to repay them when due and to make a profit in the process. When workers or clerks are paid in cheques then they do not, as a rule, put most of the amounts received into savings accounts. And if they did this, on medium or long terms, then such savings could not act in an inflationary way, either. When banks rightly or wrongly assume that call-deposits will continue to increase then many of them will be misled into investing part of these total deposits into other than short-term liquid funds. A liquidity risk is thereby taken up, not an inflation risk - unless the central bank helps them out, with additional legal tender paper money issues, whenever they need it in one of the inevitable future liquidity crises that will then occur. - No one but the central bank can increase the cash or near cash purchasing power of an economy under monetary despotism and only this tends to increase legal tender prices when legal tender is inflated. - To the extent that non-cash transactions can be freely settled by clearing, without being suddenly disturbed by cash demands, for which no equivalent cash exists, genuine exchanges are settled by clearing, in which the clearing settlement always is equal to genuine transactions. Then, under sound value standard reckoning no inflation can take place because the clearing settlement is always equivalent to the purchases and sales of the goods, services and goods involved. But if all prices, services and labour are coercively priced-out in an inflated fiat "value standard" then all clearing transactions, that also use that fiat standard, are also participating in its depreciation - but, merely genuine exchanges of present goods, services and labour, do not CAUSE this depreciation although they participate in it PASSIVELY. - If banks could create credit and money out of nothing, then they would possess divine powers. But even the world was not created out of nothing, or was it? What those believing in credit and money creation do not seem to understand is the time factor involved in credits. Over a long period many more loans are granted and become due than is available in cash at any particular point of time to pay all of them. A cash amount of $ 1,000 may well serve to repay 3 or more different loans at different repayment dates. But what they might refer to is the dishonesty or negligence of banks borrowing short and lending long. Most business men try to keep at least a small and positive balance on their accounts for emergencies. If the banks do not respect that requirement, sufficiently, then this can lead to the demand deposit owners one day finding out that they have no have money at the bank that is ready to be paid out to them in emergencies, or that they can dispose of with cheques, but that, much against their intentions and trust, they possess, in effect, merely something like a mortgage, bond or share - a part of the medium or long-term investments by the bank of their short term funds or on-demand deposit claims. Even though such bank actions may be habitual, going back to the tradition of fractional reserve gold certificates and although it may be quite common and legalized practice, somewhat insured by central banks demanding minimum deposits with them, it is still basically a dishonest, negligent and false business practice. That central banks, when the minimal deposit with them is not enough to cover withdrawals at the bank that borrowed short and lent long, are insufficient to cover their obligations, then issues additional legal tender note to cover this wrongful and careless action, means that then it is the central bank, once again, which causes an inflation, not the original and wrongful lending short term deposits, without the explicit permission or instruction of these depositors, on long terms. Without this inflationary backing of this practice by the central bank, the holders of "on demand" deposits would simply find out that they do not longer have such deposits but merely long-term claims against the bank and its medium or long term debtors. The use of terms like "money creation" and "credit creation" does not explain but rather cover up such relationships. - One of the major troubles of this kind of dishonesty, carelessness or fraud is that the central bank might refuse to cover this flawed borrowing and lending process by additional note issues, while upholding its money issue monopoly. Then a currency famine would result without its natural cure or prevention options being a permitted. Cash being already short and supposed cash deposit having become illiquid, i.e., longer-term investments, more and more cash will be asked for . The non-cash payment sector will shrink fast, since they still grant creditors the right to demand cash and thus the demand for cash will greatly increase while the supply is already short. - The cure lies then in abolishing the right to demand cash and replacing it by the right to demand only clearing. In this, clearing certificates issued by the debtors must be negotiated, at terms satisfactory to both sides. And the cash shortage should be overcome by the issue of exchange media based on ready for sale goods, labour and services. - Otherwise all economic transactions will come to shrink to a fraction of their former extent. -  J.Z., 3/97 & 31.8.02. - See: TAYLOR, DAVID; MEULEN, HENRY; SOCIAL CREDIT, CREDIT CREATION, MONEY CREATION, FIAT MONEY, LEGAL TENDER, MONOPOLY MONEY ISSUES, CENTRAL BANKING

CREATION OF CREDIT: Credit creation is possible because the owners of bank accounts do not dispose over all of their accounts at any particular time. - Pop opinion. - Every embezzler has the same notion, hopes that he will not be found out or not before he gets away safely. But he still does not create anything by his "creative bookkeeping" but merely steals, defrauds or embezzles. If the whole bank engages in this, then it is still not a creative act but merely stealing. If it "invests" these funds in lottery tickets or horseracing tips, or medium or long term investments without consent of the owners of short term funds, short term or immediately and without asking them for permission, giving them the impression that their on-demand deposits remain immediately withdrawable, then this is still not "creating" values but defrauding others of them. To the extent that the long term investment of on-demand deposits is, otherwise, sound, they could then ultimately be repaid from the winnings or repayments of the long term loans and dividends from them, when these payments are finally made, but the on-demand deposits could not be immediately paid out (except in additional notes produced by the central bank, if it is prepared to cover this fraudulent action). Otherwise, the hopes and expectations of the depositors of the on-demand deposits cannot be instantly fulfilled. The depositors may still imagine they do have these funds at their disposal - while others have already disposed of them. These imagined credits should not be added to the wrongfully and long term "invested" ones. The total of credits has not been increased. On the contrary, such "investments" frequently lead to losses, so the account holders and the bank may end up with less than they had before. Other gamblers or betting addicts, or suppliers of those who were thus wrongly granted credits and spent them wastefully rather than productively, would benefit correspondingly. - While at any time an honest cheque drawer (or one not granted a current account credit - which has its own inherent limit in the current funds available from others) cannot spend, in cheques, more than the amount on his account upon it, he may, in the average, in his usual business, get so many cheque payments into his account, as a result of his sales, that within a short period, based upon these cheque payments to him, he can spend much more than the average account balance through this account. But he can do this only through him buying and selling real goods, services and labour in this way as others buy real goods, services and labour from him in this way. That "credit creation" would be involved in this is nothing but a creative fiction. - J. Z., 29.3.97.

CREATION OF CREDIT: Credit or notes are not created "out of nothing" and do not only require paper, ink and printing presses. As a rule, credit certificates, banknotes and clearinghouse certificates are not "created out of nothing" but are temporarily produced IN EXCHANGE for other kinds of credit-notes or assets which are less suitable for general local circulation. These exchanges of bills, unsuitable for general circulation, into bills that are suitable for at least local circulation, represent clearing processes in progress and the movement of already produced goods, that are already sold, at least to wholesalers, if not already to retailers. And these goods are the real and second redemption fund for such notes and cut up bills, as they are for any kind of currency. The primary ones are these bills themselves, for they to have to be paid. Such turnover credit or bill discount is not given for nothing but only to genuine producers and suppliers. The discounting of the Real Bills, using a sound value standard, provides sound wage and salary payment means to workers and clerical employees, which they bring to the local stores and spend them there, so that they stores can repay their debts to the wholesalers and these can redeem their real bills (or equivalent short term debt certificates) they gave to their suppliers. Such clearing notes and clearing house notes, by their very nature, do not need any rare metal cover at all to keep them at par with their nominal gold weight face value. Their par value is assured by a strong reflux or demand for them in the repayment of the short-term debt involved and this repayment is facilitated by the large sum bill being split up into convenient small bills or banknotes in money denominations. If the debtors e.g. the retailers, cannot pay their debts they are thrown out of business. This is a strong enough incentive for them to serve others with their goods, services and labour for banknotes and clearing house certificates (or with equivalent book or electronic accounts). This kind of money can always be freely and competitively issued to the limits of its goods, services and labour cover - but not beyond it. Readiness to accept a money in payment for daily wanted consumer goods and services and in payment of any other debts due, is a sufficient cover for any sound exchange medium. The best value standard for any kind of exchange medium, purchase and sale, for any kind of traders, at any place and time, is precisely that which they consider to be the best or good enough for them, as long as they do. No third party has a right to prescribe another standard for them, which they do not like or distrust. - Especially labourers and employees must become free to accept "cut up real bills" and employers must be able to offer them to them in payment and stores and store associations must be free to issue them and to accept them and to pay their debts with them - on via their bank accounts at banks of issue. - The free exchange of one type of paper claim for other kinds of paper claims, more suitable for their purposes, does not amount to a "creation" of some value out of nothing but merely to a transformation of one suitable resource and matter into another one, one claim, into another. It does not interfere with transactions but promotes them. It increase the ease of the transferability of real values. It does not cheat, defraud or confiscate but facilitate. It increases transferability of goods, services and labour and of exchange media, like real or sound commercial bills, and thereby increases their value. It is transferability which gives any goods, services and labours their market value. In a division of labour economy we all depend upon it. The easier any value can be transferred, the higher its exchange value will be to its owner. No exchange medium needs universal acceptance or is universally accepted. It takes brute and wrongful force (however legalized and excused) to make a single paper money acceptable in a whole country. Competitive and private and non-coercive and freely market-rated paper exchange media need only a sufficient local acceptance to become there a good enough local currency, that can locally widely circulate at par. In the next town or market it may already have a discount. (A foreign exchange rate.) So what? That applies also to all national forced currencies, whose legal tender and monopoly end at a national border. The greater these discounts of falls in the foreign exchange rate are, the faster these exchange media will be returned to their issuers to buy their goods and services with them at their par value. -Compare the circulation charts in PEACE PLANS 41. I also offer them digitized. - & MONEY? - J.Z., n.d. & 1.6.11.

CREATION OF CREDIT: If banks could create money and credit out of nothing, I would like to be a banker under these conditions, and so would almost everybody else. Why doesn't everybody make use of this opportunity? An Aladdin's Lamp for everybody! Nobody need to produce or sell anything any more to acquire purchasing power. We could simply multiply it at will and live all from the proceeds, a form of unearned income! Please, tell me, why do the banks still ask you to supply them with your savings, to deposits them with them and why do they mind if you withdraw them from them? Under the asserted conditions they would not need you and your savings at all. They could e.g. input a single dollar of their own and multiply it endlessly, with only the trouble of spending the riches thus gained by them. - That such beliefs can still be widely held in our century is almost unbelievable. - J. Z., 5.7.94, 18.4.97.

CREATION OF CREDIT: Private creation of credit is inflationary and must be controlled. For this central banking is required. - A monetary despotism and social credit notion. - Before central banking, with its note issue monopoly and legal tender, was introduced, there was never any evidence for this - and afterwards, the only one that could "create" money was the central bank. Credits not granted in additionally issued legal tender (or short term or instant claims to legal tender), are just credit TRANSFERS, mediated by banks or by other private contractors, and as such they cannot have any influence on prices and wages, no more so than any clearing transaction could. Consumer goods and services are still largely paid for in legal tender cash - and only the Central Bank can legally multiply that. There are, indeed, many credits that are ultimately, upon demand, to be paid in cash. All credit transactions are speculations over time on the availability of that cash. When it does not become available, the credit collapses to a fraction of its former volume. It required, for its granting, as well as its repayment, the availability of cash or of claims to cash. Especially when payment through clearing options is not generally recognized as an alternative, i.e., when the creditor's legal and juridical claim to payment in cash is continued - and the cash supply remains monopolised. No creditor can create his credits out of thin air. None of them is a magician. But myths, which are widely believed in, are hard to kill by mere facts - in economics, or what passes for economics, as well as in religion or in "political science". How can one prove the non-existence of something that does not exist? - All credits are limited at present by the creditor's right to demand cash in repayment. And debtors who are not cheats know that they do have to somehow acquire the cash - or claims to cash - or try to acquire them, to repay the credits received, if they do not want to be driven into bankruptcy and few want that. Once this legally demanded cash-backing for all credit and non-cash payment contracts does fail or is insufficient, then, credit collapses correspondingly - and even more cash is wanted from then on for many to all transactions that were previously carried out without cash. During such currency famines - under a money issue monopoly and a manipulated value standard, in which all prices and wages are marked, prices and wages tend to fall in a deflationary way and there is then a negative feedback effect involved: While lowered prices encourage buying, falling prices discourage buying. Thus, once a deflation has set in and is not stopped by the introduction of monetary freedom, much more money hoarding takes place than usual - as much as people can afford to hoard, and the effect is that a deflation accelerates. Only those purchases are still undertaken by most that they cannot avoid. Those lucky enough to be in possession of considerable cash stocks can then acquire otherwise expensive capital goods or consumer goods very cheaply, and may do so in the expectation that sooner or later the deflation will end and that then they can then sell these shares or goods much above the forced sale prices at which they acquired them. - Prices marked in stable value units are not influenced by the amounts of cash or credit available. But they can become reduced through the deflations or increased through the inflations made possible by monetary despotism. When they are marked in unstable and manipulated "value standards" then they participate in all the instabilities and manipulated effects of that "value standard". - All cash transactions have a large clearing "overhead", 10 to 20 times as large as the amount of cash available, because they are easier and faster to arrange and, in normal times, they can, upon demand by the creditors, be changed into cash, because in normal times this is rarely wanted - because the clearing and non-cash-payments are so convenient. Whatever effect this "overhead" is presumed to have upon prices (I would deny any, since real exchanges are behind most of the payments, if not zero sum speculative games), have already taken place. For centuries the non-cash transactions have far exceeded the cash transactions. More credit than the market requires and can be paid, in normal times, ultimately and upon demand in cash, cannot be created out of nothing or upon a too tiny cash basis. Debtors do indeed often defraud their creditors, spend or waste what they have been granted in loans and become unable to repay. But such cases do not blow up the total volume of credit. Instead, they make more potential creditors more careful in granting further credits. Such cheats, well publicised, rather lead to a degree of voluntary credit restriction by the potential creditors, i.e. their cash holdings and current account or deposit holdings tend to increase. Whereupon then many wrongly conclude that no deflation has taken place because there is an abundance of short-term funds accumulated at the banks. Part of these may be frozen - with the banks unable to pay them out in cash (because they had lent them out on long terms) - and part of them being kept there intentionally because the deposit holders want them there and because the banks see no liquid and secure enough investment opportunities for them, while sales and orders are down. At the same time private cash holdings, by those who have altogether lost their faith in banks, would increase as well. - J. Z., n.d., & 29.3.97, 31.8.02. - CENTRAL BANKING, CONTROL OF MONEY, MONETARY CONTROLS, SOCIAL CREDIT

CREATION OF CREDIT: The creation of credit is made possible by issued cheques not being redeemed immediately. - Popular opinion. - If and to the extent that this would be possible, we would then have a part disposal of cheque account funds by the banks, for a short time, without consent of the cheque account holder and at his expense and risk, not a "creation of credit" out of nothing. - The total circulation seems temporarily increased but each of these seeming increases is followed by a corresponding decrease. Moreover, the very delay in cheque credit availability to the receiver of the cheque, still 5 days in Australia as far as I know, in spite of computers and considerable competition between banks, does slow down the spending of the cheque credit correspondingly and thus balances out the "multiplication" of means of payment that may be temporarily involved, if banks disposed of these funds for these periods. The basic rule still applies: The same amount cannot be spent by two people at the same time. One should also take into consideration that the establishment of a cheque account, 100% covered in cash, has correspondingly hoarded cash. And this cash becomes then mobilised or may be demanded from the recipient's cheque account, only after a cheque is issued and credited. In other words, a considerable hoarding is involved - to facilitate cheque payments, which should be taken into consideration when one imagines that cheques would multiply means of payment, not only facilitate payments. - The "mysterious" nature of the seeming "creation" of cheque credits "out of nothing" lies in the very nature of the clearing process, if one considers merely the payment side of it and not the goods and service side, which is thus cleared. Assume 1000 cheque account holders in a self-sufficient economic community, each with $ 1000 on their cheque account and all producing for each other, and providing each other with goods, labour and services, all that they require and are capable and willing to supply to each other. Within that limit of their physical capability, willingness and productivity, each of them could spend their whole cheque account every week or even daily and, nevertheless, in the average, all would end up with ca. 1,000 on their accounts again, through the goods, services and labour they would have sold to the others. Since real exchanges of wanted goods, services and labour would be involved, no price increase would have taken place even when, from one week to the other or within a day, they would have bought double as much from each other in this way than they had in the week or on the day before. Their account total of 1 million value units would not have been increased by a single value unit. All their cheque-mediated transferrals from their accounts, would, in the average, have their equivalent in cheque payments received from others. The used cheques would be cancelled and new cheques would be issued all the time, to be cancelled in their turn. The cheque credits transferred would be mutual, not unilateral. They would represent genuine trades and exchanges not robberies or embezzlements or "creative" financing. Each account would be liquidified by cheques but not multiplied. But the number of possible, desired and agreed upon exchanges could and would be easily multiplied in this way, limited only by the ability and willingness to supply wanted goods, services and labour. - Since many costs are fixed, regardless of the number of transactions that take place, an increase in transactions could even lead to some price reductions. Certainly the kind of extremely low prices happening in emergency sales or bankruptcy sales, would become much rarer under such a system, especially, when all the participants would renounce any claim to cash payments and declare themselves satisfied for all their transactions with the mutual clearing of their cheques through their clearing house cheque accounts. - In a world where natural science knowledge is not yet general or wide enough, in which still many still believe in a God. even as a loving father, in a devil or in demons, in which libertarian gold bugs consider all means of payment not made of gold or 100% covered gold certificates, as mere fiat money and fraudulent, one should not be surprised when this clearing process is by them or others interpreted as a "creation of credit" out of nothing or "out of thin air". - Thin air is, by the way, not nothing, either. Otherwise people living in high altitudes could not breathe. And even a vacuum is not something that can be produced or found very cheaply on the surface of this planet. That is one of the reasons why some industrial processes could be profitably carried on in space. - I guess this kind of discussion of pop notions on the subject will have to be carried on until quite striking and convincing refutations have been formulated. - J. Z., n.d. & 29.3.97, 31.8.02, 1.6.11. - & CHEQUES, MONEY, CREDIT, DEPOSITS, DIS.

CREATION OF MONEY: But you can't MAKE purchasing power. You can only TRANSFER it. - Terry Arthur, 95% Is Crap, 209.

CREATION OF MONEY: De nihilo nihil. - Lucretius, Ueber die Natur, I/149. (Aus nichts wird nichts. Nothing grows from nothing.) & CREDIT

CREDIT & CLEARING SUPERSTRUCTURE: There was never enough cash around, or could easily be produced, under current legislation, customs and beliefs, to mediate all wanted and possible exchanges. There were never enough sound or unsound physical exchange media, currency, coins or banknotes etc., provided for this. Under a monopoly or oligopoly for their supply nothing else should have been expected. Moreover, there were risks and costs involved in transferring large amounts of cash. So, for a long time, at least for trading between experienced merchants, various negotiable instruments were utilised instead of cash. They were nominally and when due still payable in cash. But in reality most of them were settled by clearing of such debts and credits against each other, in internal as well as external trading. This kind of trade and payment facilitation goes back at least to the time of the crusades and, most likely, much further. Whatever cash was available was utilised largely only for wage, salary and tax payments. With regards to the large formal cash obligations arising out of e.g. sound commercial bills of exchange, cash was kept only for the settlement of the usual small balances remaining, after clearing, and, perhaps, in many cases even these were settled by short-term IOUs, which went into the next clearing. This extensive clearing became traditional, customary, habitual and influenced monetary thinking and is still present in the current right of creditors not to demand rare metal payment but payment in the exclusive and forced governmental legal tender money. The total volume of non-cash transactions is usually ten to twenty times that of cash transactions. Thus all non-cash transactions could not be readily paid in cash, instead, if this were demanded. The full potential of clearing and clearing certificates and electronic settlement of mutual debts is still not being realized but insistence upon the right of creditors to be paid in cash, upon their demand, instead of via clearing or non-cash payments, as usual, remains upheld with, often, disastrous and prolonged consequences. The long experience with banknotes that were 100% or fractionally covered by rare metal coins and the right granted to the note holders to demand their full redemption at any time, continued this practice and the theory behind it - and it led to frequent runs and monetary famines, under fractional covers, when as a result of suddenly increased cash demands the volume of non-cash transactions was rapidly diminished and the demand for cash rapidly correspondingly further increased. (Even under 100% cover, the total quantity of rare metal coins was never large enough to turn all exchanges into monetary exchanges. Barter transactions continued even into the 20th century and were extensive before it. - J.Z., 1.6.11.) Even in "normal" times, the cash demand right of creditors limited the number of transactions that could be carried on via clearing, to a limited multiple of the normal amounts of cash reserves and the normal demands upon these. Trade, exchange via clearing, could not proceed, without limits, beyond these cash reserves, while the right to demand cash, at any time, remained. And they could not, as gold coins, and were not, as monopoly paper money, always and rapidly enough increased in volume, in a sound way, to satisfy a rapidly increased demand for cash. The possibilities of unlimited clearing of due debts against due credits were theoretically seen only by some, during the 19th century and are still not fully realised by most people, even experts, today. Thus many of the libertarian money reformers merely want a return to gold and silver coin circulation and banknotes, or electronic accounts that are fully redeemable in rare metals. Under full monetary and clearing freedom, the non-cash options available to merchants, already for a long time, would be extended to the man in the street, especially to wage and salary payments to employees and their consumer spending, which would mean, in the absence of a "right to cash", the possibility of an unlimited growth of the volume of exchanges. At the same time, the clearing certificates used or clearing accounts, could become as convenient, at least for local sales and purchases, as are cash notes and cash cheque accounts now. - J. Z., 6.9.02., 1.6.11. - BUILT UPON A SMALL CASH FOUNDATION: HOW DID IT ARISE? WHY WAS IT CONTINUED OR WHY WAS THE RIGHT OF CREDITORS CONTINUED TO DEMAND CASH INSTEAD OF CLEARING? CURRENCY FAMINES & SHORTAGES

CREDIT BANKING: It is possible without fractional gold reserves or short sales of gold, without the risks of runs upon gold metal or legal tender cash or reserves of legal tender at a central bank. Matter of fact, it works best when purely based on credits and debts and their free clearing, using any value standard which the participants find acceptable for their accounts. There is no fixed limit for the total productivity of people, at least not in the long run, in spite of obvious present limits, due to presently known and accessible resources, scientific knowledge and technology and available capital. But under full freedom each can only exchange the products and services of his own productivity for those of others. That is his present limit. Credit merely bridges some time spans, during which he can develop his potential. But, apart from insurable risks, all credits and debits cancel each other. And a small insurance charge on all transactions can cover that risk. We should credit all participants in credit-money transactions with the ability to select for themselves better value standards, under freedom, than governments provide them with under monetary despotism. - J. Z., 3/97, 1.6.11. - ISSUE LIMITS, CIRCULATION, LIMITS, REAL-BILLS DOCTRINE, CLEARING.

CREDIT CARDS: As easily portable proof, or easily and automatically checkable proof, of the existence of an account with a more or less regular income and a credit remaining, it makes the acquisition and carrying of large amounts of cash unnecessary. But it does not as yet make its holders independent of the supply of cash, as a pure clearing account would. Cash spent with the cards has to be replenished with legal tender from bank accounts or by cash. So far they are spending accounts rather than accounts to directly receive non-cash payments from others. A pure clearing account would have to have that facility and should be made independent of cash by not being redeemable in cash upon demand of the credit card holder, when he has acquired a positive balance. Moreover, so far too high costs were associated with the use of most credit cards, thus I rarely found it convenient for myself to use them, except when travelling, to withdraw cash now and then. With cash I could usually make better bargains. It is, as someone once said, "a poor man's credit card." - But the varieties of credit cards in existence are a good precedent for a multiplicity of competing currencies and they could become ID's for pure clearing accounts. The smart cards could even carry the balance and all recent transactions electronically. I see no great advantage for them as cash cards, except e.g. in the use of automatic ticket machines, turnstiles and in public phone payments. If government supplied coins were not relatively scarce, and prices for e.g. rail transport and phone use would not be frequently driven up through inflation, i.e., could be paid with standard coins, then these cash cards would be less popular. - If you could pay everything with a credit card and received all your payments in a credit card account, then cash would not be necessary at all. Alas, under present conditions, it would then become still harder to avoid paying tributes to the tax gatherers. So far they find it much more difficult to trace cash notes, even their own numbered ones. Sooner or later they will use computers to do that, too, removing that cash payment advantage. - J. Z., 1.5.83, 4.5.97. - & CLEARING

CREDIT CONTROL: Credit control by governments? The sheer impertinence of it: A robber organization setting itself up as controller over something as voluntaristic and productive as credit! - J. Z., 12/84, 18.4.97. - I would like to control the credit of governments - and have the right to control my own credit and accept the private credit arrangements I like. - J.Z., 12/74. - Credit control is in principle as much an interference with individual liberty as sex control would be. - J. Z., 30.5.75. - The use of the term "control" in the expressions of "experts" and of the man in the street is OUT OF CONTROL. It serves as a cover for almost any kind of despotic meddling and mismanagement, always under the pretence that thereby "everything is under control!" - Only self-control is real control. Human beings that are controlled by others are no longer free men but puppets or marionettes, who dance more or less to the tunes of their masters. - Granting them what is supposed to be "THE" vote, but which disfranchises them in most important respects, does not change the situation much. - Without full monetary freedom and of the right to secede from the State and to become exterritorially autonomous, together with other secessionists, also without the right to bear rightful arms for rightful self-defence and to organise in volunteer militias for the protection of individual rights, and the full spectrum of the other basic individual rights, man is not enough in control of his own fate. - Monetary emancipation is a very good starting point. Let us individually vote government paper money out of existence and sound alternative currencies and value standards  - in! - J. Z., 18.4.97.

CREDIT CREATION: Credit creation is largely a figment of the imagination. Credit either exists or it does not. When it exists, it can be mobilized and leads to more production and free exchange. A fictitious credit can only be criminally established for a while through fraud and or coercion, e.g. through legal tender laws for inferior government money. This is rather a destructive, monopolistic, exploitative, partly expropriating and parasitic method, via its deflationary, stagflationary and inflationary effects. The note issues of central banks, when deviating from the Real Bills Doctrine, or their equivalents, does not have any “creative” feature or justification, whenever they goes beyond their tax foundation or tax anticipation. (To the extent that anything based upon compulsory taxation can be justified.) It can be justified at most, among volunteers and towards convicted criminals with victims and aggressors, for indemnification purposes.) – J.Z., 9.12.09, 25.9.10. - CREATION OF CREDIT, MONEY, DEPOSITS, SOCIAL CREDIT NOTIONS, FIAT MONEY, DIS.

CREDIT CREATION: Credit is never created but merely transformed. Goods and services capacities are liquidified, freely transferred in liquid form and finally settled against each other in clearing all the claims arising out of turnovers of goods and services (including labour). - J. Z., 5.10.88 & 15.4.97.

CREDIT CREATION: In the system of the forced and exclusive circulation of legal tender paper money and the limited non-cash transactions that can be built upon this, always under the risk of sudden legal and juridical cash claims going beyond normal cash requirements, the resulting chronic shortage of rare metal cash (sometimes even merely a shortage of small change cash, so incapable was the centralised issue in many cases), as well of legal tender paper money cash, at least in some circles of the economy, led always to degrees of sales difficulties for goods, services and labour. These have persisted, to some extent, even in "normal" or "boom" times. Traders, manufacturers and desperate employers have always felt forced or induced to try to bypass the prohibitions and supplement the cash money supply somehow in more or less primitive and advanced ways, with token money and emergency money issues, accommodation papers etc. For the alternative was bankruptcy or unemployment. (One of the easiest and soundest ways to extent the cash supply for wage payments by employers was to get their sound commercial bills, representing their sale of goods to wholesalers, discounted by a bank in banknotes. Even though the real bills were nominally payable in rare metal coins, as well as the bank notes issued, in reality most of the discounted bills were either settled in clearing against other bills or paid for in the bank notes issued upon them, in the discount business, and to that extent neither the real bills nor the banknotes issued for them in their discount, required any gold redemption. What the bank notes required was the shop foundation, i.e. the readiness to accept them for wanted consumer goods and services, rather than for gold coins. The retail shops could pay the wholesalers with the banknotes and the wholesalers used them to pay their bills issued to the employers, their suppliers. The employers used the banknotes to pay wages with and also their suppliers. They could not have paid wages with large and uneven commercial bills, due in one to three months. Thus the non-cash payment options were extended as far as they could, but always under the risk of the imposed (customary and prejudice supported) delivery obligation of debtors for cash, upon demand by creditors. (The banknotes were usually not legal tender and, for a long time, were not considered to be cash, again out of the prejudice in favour or rare metal redemptionism that considered only rare metal coins to be real money. Even forced and exclusive legal tender, while not extremely short supplied or rapidly depreciated, remained widely and for long times preferred to all too primitive, not only to other dishonest substitutes for it. The private substitutes for official coins or paper money, no matter how rightful and efficient they were already, at least sometimes, were never sufficiently studied in the official literature and lectures. Nor were they granted experimental freedom and thus the chance for gradual development and improvements. Only the prohibitions against them were more and more developed, detailed and improved, until they wove so tight a net that it seems almost impossible to find a legal way out of this monetary despotism. The government was almost never blamed for its monetary despotism or, if at all, then usually too late, after it had done all too much damage, for months and even years. Moreover, it found apologists, even decades after, and these form the majority everywhere, still, even among the professionals, the supposed experts. In ten-thousands of ways did practical men try to get around the money issue monopoly and its effects, without theoretical understanding of it and of its inevitable consequences and without understanding all the monetary freedom alternatives. Often they did not even realize their limited self-help actions were illegal, because they could not imagine any government being so malicious, misled or ignorant to have anticipated and be willing to suppress their self-help attempts and thus to have outlawed them by very detailed legislation. Ignorance in this sphere (promoted by governmentally arranged or supervised and examined and certified mis-education) is so great that Big Brother is always appearing as the shining hero while Big Business and Big Labour are cast as the villains. Under these conditions government money, even though unsound, was, usually, much more widely accepted and sought after than it would be under freedom conditions. Usually just a better and different management of monetary despotism was demanded rather than its abolition. Even under the supposedly best management of central banks monetary crises, inflations and deflations persisted or got worse and more prolonged and people had either to give up or try to help themselves, via various token money, emergency money and clearing arrangements, no matter how outlawed these were. In that situation all kinds of unsound schemes could also temporarily flourish and spread, before they were suppressed by the government. Even now sound issue and reflux principles and practices remain largely unknown and unpublished, even within the circles of money reformers and among these - even among those few there are those, who do only favour one or the other degree of monetary freedom - whilst condemning others. Sound money and credit arrangements require a development period in practice and also a preceding or following development of monetary, clearing and credit theory. That was never granted under the official religion on money, clearing and credit. Under these conditions most of the theorising and illegally practising monetary reform sectarians never reached sufficient enlightenment. - J. Z., 14.4.97, 6.9.02, .1.6.11. - & TOKEN MONEY & EMERGENCY MONEY, DEPOSIT ­INFLATION, CREDIT EXPANSION, & MONEY CREATION, etc.

CREDIT CREATION: Many merchants do offer their goods on credit, with payment due only in 30 days, and without interest, at least for 30 days. Often such offers go now for much longer periods, even 6 to 12 months, interest free, if instalments are paid and often without an initial deposit. This also might be called a credit "creation", offered upon private initiative, offered quite publicly and to many members of the public. But what are actually offered on credit is the goods of the seller, which he could also repossess upon non-payment. If it were true that privately "created credits", seemingly out of thin air (but here granted in goods values transferred, to be repaid later, on agreed terms, in cash or non-cash), were inflationary, then all such actions would be inflationary. In reality, they indicate rather a deflationary conditions, in which sellers are desperate for cash and do not flee into goods but still want money, even when the full money payment is postponed for a long period and even when no interest is paid. At the same time, the government inflation may go on, so that, in combination, we have here a symptom for a stagflation. - Closer still to home: If you were to grant me a credit in form of your literature, postponing repayment for it and if I were to grant you a credit in my literature, mostly microfiche, postponing payment for it, would we then have to add up both ­these credits as our contributions to the existing money inflation? Or would exact equivalents of valued goods-deliveries exist? Could not our mutual debts, be completely cancelled, if they happened to come to the same amounts, without a single cash or non-cash Australian or U.S. dollar being set into motion in the process, even without effecting the statistical GNP, although both of us might feel information-enriched? - Would any woman, who, in a baby-sitting exchange, accumulates some baby-sitting credits against other participants, thereby contribute to the supposedly credit creation and credit inflation? - If you are short of cash, so short that you cannot buy a beloved grandchild a present, and promise to buy it later, after your next pay day and he grants you a credit for this, does he thereby contribute to the supposed "credit creation" and "credit inflation" or would we rather have a deflationary situation, at least one confined to you? - Try to envision a private bank of issue, one designed for the discounting short term real bills or other promises to shortly pay for goods received, or for the keeping current accounts with cheque and clearing facilities and then imagine it as having the worst possible intentions but, at the same time, not enjoying the privilege of legal tender for its notes, or the chance to hide its over-issues, in the absence of a free market for exchange media and value standards and also not enjoying the privilege of keeping as "business secrets" the facts of its short term cover and reflux arrangements and of the number of its notes in circulation at any time and of the degree and speed of their reflux. Under such free and open conditions its notes would very soon get a discount upon any over-issues and would then encounter wide-spread refusals that will extend to its future issues, too, which it might have reckoned upon. Any holder of its notes, with a wad of them in his hands and, finding that he has no debts to pay to the issuer nor that there is anything he wants or can purchase with them, because there is an insufficient "readiness to accept" foundation for them, especially, an insufficient shop foundation, might find his own wad of notes depreciating in his hands and cursing himself to have accepted so many of them merely upon confidence or trust in them, which were very much misplaced. But few will be so foolish to accept many notes from such an issuer. Notes they do not know or are suspicious of, or against which their friends have warned them, or the mass media did, will simply be refused. His only remaining option will be as a creditor with a claim against all the remaining assets of such a fraudulent issuer. The same applies to any cheque account credits obtained with such a dishonest bank. If the courts were just, efficient and competitive, the "banker" involved would loose his car, his house, the shirt on his back and would be forced, for along time, to work in possibly menial jobs to pay his restitution obligations. But it is unlikely to come to many such cases. They were rare even in the cases of "wildcat banking" (with all the flaws and fraud options of metal redemptionism), as several recent researches have shown. Already William B. Greene, in his classical work "Mutual Banking", pointed out, the notes of supposedly failed U.S. banks, unable to fulfil their formal gold-redemption obligation, often continued to circulate at par, until all the local short term debts, they were based upon (in discounting), had been settled by paying them with these notes. Some circulated even at par beyond such short term periods, kept at par by longer running debts with their thus reduced current demand for notes. Via the repayments of debts to the banks the notes disappeared from circulation and no note holder was economically harmed by notes thus kept at par, even though he did not get any gold coins from the issuer. He could have got them, if he wanted to, on the free gold market. Under freedom conditions a unilateral "creation" of credit, deposits or money, at the expense of others, is even less likely or possible than it is now. - J.Z., 3/97, 1.6.11.

CREDIT CREATION: There is no room or possibility for "credit-creation" in a monetary freedom scheme. It does not even exist in the present system of governmental monetary despotism and government privileged banking - although many other mistakes are made in that system, many wrongs committed and many abuses do occur there. Government monetary and financial activities are never "creative" but, rather, confiscatory or prohibitory. - But can one prove that something non-existent does not really exist or exists only in the imagination of some? That is as impossible as to "prove" the non-existence of God or the Devil or of "evil spirits" or of "fairies".

CREDIT CREATION: This kind of expansion or "creation" is, usually, nothing more nor less than the "expansion" of non-cash or clearing transactions upon a limited amount of available cash (in form of rare metal coins or legal tender: forced and exclusive currency), while all non-cash and clearing credits or deposits are still claimable in cash upon demand by a creditor. In all cases the non-cash and clearing transactions could and should actually stand on their own, without "cash" backing by 100% or fractional reserves. The cash, if it has a sound value standard, like e.g. fine gold or silver coins, or any other that is agreed upon, would then be merely used as an accounting unit or value standards, not as an obligatory means of payment. It would not be required as means of payment, to the extent that clearing is free, well developed and can serve as a means of payment much better and for an unlimited number of free exchange transactions, with an unlimited total value. However, while creditors are legally and juridically authorised to demand cash, when a debt is due, rather than merely a settlement by clearing, this possible and sometimes more than usually actualised demand exists as a risk factor for all of the additional non-cash, clearing and short-term credit and debit payments settlements that have become customary and are based upon a relatively small stock of cash, which might be more or less hoarded at any particular time. Thus the non-cash or clearing side of the economy could only grow somewhat but could never grow, on its own, to the requirements of trade, to finally cover all possible and desired turnovers. Via the cash demand option for creditors it remained still tied to the old-fashioned (rare metal coin) or modern cash (legal tender by a monopoly issuer) redemptionism. The cash demands of creditors fluctuate and thus affect the much larger non-cash transactions built upon them - and thus can lead to cash and credit crises, while the cash supply is monopolised and thus slow to expand and while the larger volume of non-cash transactions depends upon the available cash. E.g., when a bit more cash than usual and than expected and anticipated, was suddenly demanded, a large overhang of possible non-cash payments and clearing transactions had to be discontinued, many became this illiquid and their collapse increased the demand for cash still further and that additional cash demand, when cash was already short-supplied, led to further collapses of non-cash transactions because of that legal or juridically granted claim, granted to creditors to be paid in cash, even when it is in short and non-competitive supply. That currency famine risk could be largely abolished (apart from abolishing the issue monopoly for cash) by not granting creditors the right to demand cash and replacing it by a right to demand clearing only. (This in as convenient a form as possible, including private IOU issues in money denominations that only oblige the issuer and, by contract, his debtors.) - In the extreme case of a thought example, all immediate and short-term payments could have become have become payable only through a very efficient clearing system. Cash might thus have become as unusual or absent as are now gold coins in most transactions. Under these conditions, the sudden introduction of the right to claim cash would certainly lead to difficulties, not foreseen by the well meaning dogmatists who wanted to introduce e.g. an exclusive and 100% covered or coined or certified and 100% redeemable gold standard currency. The very extensive and free exchange economy, based on clearing, would then largely collapse. Fractions of such a general collapse occur through the still habitual, legal and juridical authority of creditors to demand cash and the fluctuations in these cash demands, especially for wage and salary payments and consumer spending. So much about the deflation risk as long as creditors are entitled demand rare cash payments rather than clearing settlements. - - There is another risk factor, the inflation risk, in the non-cash or clearing payment sector, while it uses for all its payments and settlement not only optional cash demands by creditors for an exclusive cash exchange medium, but also the exclusive and forced paper money "value standard" of the central bank. (Formerly, the more or less depreciated coin of the realm.) - Then, and to the extent that they do so or are compelled to do so, these transactions participate in the depreciation of that exclusive and forced standard. But the clearing transactions themselves, no matter how large they are, do not cause that depreciation. For short term transactions, if that depreciation is not yet very rapid or even galloping, it does not matter greatly. But it does matter when considerable time periods pass before a payment is due, still to be made by using the exclusive and depreciated value standard. When free to use a sound and agreed-upon value standard and if their productivity permitted it, clearing would permit its participants to double, treble or even increase tenfold their turnovers tenfold, if they could, all paid-for by clearing, without depreciating that sound value standard used in all their clearing exchanges. Simply more goods and services would be produced and turned over, through a higher volume of production, sales and clearing transactions. But no corresponding increase of prices and wages would take place, one corresponding to the higher volume of clearing. Greater productivity and ease of clearing exchanges would rather tend to increase wages, salaries and service charges while lowering the unit costs of production and the prices for consumer goods. If they physically could, people could via automation in production and clearing in exchanges, increase their turnovers, including the total value of their consumption per head, a hundred-fold or a even a thousand-fold. Always assuming that they would not have to pay up, upon demand, in scarce gold coins or exclusive government legal tender. But these additional exchanges, on their own, and by their quantity, could not depreciate further the forced and exclusive value standard of the government, or any other, but sound value standard adopted by any exchangers, but they might INDICATE A DEPRECIATION THAT HAS ALREADY TAKEN PLACE, when and while a depreciating value standard is still being used by some voluntary victims of it.  People might then finally find out that they could do better for themselves by choosing themselves one or even several different but sound value standards, those which they prefer for their own contracts. Consequently, they might do all their clearing with that or these only. As means of payment they would have already by-passed the government's paper money through their free clearing practice. They would thus have already excluded it as their means of exchange. - What would be left to the government paper money would be a much reduced circle of voluntary acceptors of the cash notes and coins of the government that could readily circulate - but only among the remaining voluntary taxpayers and other debtors of the government. And these voluntary acceptors of its notes and recipients of its spending might become further reduced to even less voluntary State subjects by exposing its service supplies and charges as well as their membership to free competition from other governance or societal organizations in the same territory, among people who have opted out or seceded from the old territorial government and re-associated quite voluntarily and under full exterritorial autonomy, all doing only their own things for or to themselves, according to their individual preferences, which they would have in common, in their associations of volunteers. All governmental or central bank notes would then be reduced to their own voluntary payment circles, used for their spending, their budget items only and their voluntary taxes or subscriptions. Under full competition of this kind, the existing territorial monopoly governments would, quite rightly and peacefully be reduced to exterritorially autonomous volunteer associations themselves, competing like e.g. insurance companies, for customers, and to the volume of transactions they can build up or retain among them under such competitive conditions. And that, most likely smaller circle of their voluntary victims and acceptors of its currency, would also reduce the circulation options for any remaining non-territorial government to its own backing or cover or reflux arrangement, to its "tax foundation" or clearing foundation, i.e., to its market value options within its payment community. When a territorial government had previously, due to legal tender and the legalized issue monopoly, over-issued and forced its currency at least potentially (seeing the extent of non-cash transactions even now) into every channel, it would then be excluded from most private circulation channels or payment communities and from whatever "official" payment circles  other communities of volunteers would have established for themselves. For its remaining economic or anti-economic activities the former volume of its circulation would be too large. The quantities that it could formerly force upon others, would no longer be accepted or needed as exchange media. That would mean, that its currency would depreciate and could pay for goods and services of those ­outside its payment circles only at inflated prices, even while the same goods and services, if paid for in competing, optional private exchange and clearing media with sound value standards, would remain priced at the same level. (Apart from changes at the goods side.) Obviously, this would also be a situation in which the former territorial and exclusive central bank's issue monopoly and other privileges and its legal tender would not longer be enforced or fully enforceable in the private and cooperative self-help and free note-issue and clearing and value accounting sector of non-members. The blame for any depreciation of its currency would then lie entirely on the side of the issuers and acceptors of the State paper money. It would be the bad money that would be driven out by wide-spread refusals to accept it at all or by discounting it down to its remaining foundation, e.g. to tax foundation, while that would still exist and be enforced. The government could then no longer use the goods, services and labours of all people within "its" borders as its redemption fund. They would express their monetary offers, needs and demands in other, better and safer ways, independent of the old territorial government, which they have rejected for their own affairs and would reject its paper as means of exchange and as standard of value as far as they could or wanted to. The free private and cooperative clearing would become, independent of the former territorial government's cash and its legislation and paper value standard and their manipulations, other, most likely much sounder values standards would be adopted by those who have opted out and associated to do their own things in their own ways. - - One should also take into consideration the short-term turnover credit transactions, in which creditors are satisfied with being paid within 7 to 30 days. (Under present stagflationary conditions they are often satisfied by being paid, interest free, after 6 months to 2 years only, judging by their advertisements of goods for sale.) Such short term credit settlement should also be considered like ­the "instant" clearing settlements. After all, many economic transactions, even credit card and cash transactions, do take at least some time, especially if one includes pick-up and delivery as well. If ready sellers are prepared to grant more time, then it should be up to them. (The delays that are involved even in daily consumer shopping do have their equivalents on the current mass production and distribution side and, also, in the delays in receiving payment for production and distribution activities and for the spending of earnings received from them. Not all these earnings are, usually, instantly earned and spent. Mostly the consumer spending is spread over a period, the period of wage or salary payments. Thus the balance between the exchange media issued and the ready for sale consumer goods and services could also be spread over a short period. - J.Z., 6.9.02, 2.6.11.) However, the more widely monetary and clearing freedom will be practised, the less there will be a need to postpone payments for purchases and the easier it will become to obtain real credits, for medium and long term investments, on a stable value basis, with these term credits paid and repayable as well in shop foundation money circulating only for a short period. The whole process might be gradual or proceed in steps. At first only private alternative exchange media and clearing certificates might be introduced. Then monetary emancipation might be advanced further against the remaining government paper money. For instance, taxpayers might insist on their taxes being determined in a sound value standard and so might public servants for their salaries and pensions and other groups of wage and salary recipients and other groups of creditors might raise the same claims and resort to the same alternative solutions. Then tax payers might insist upon the acceptability in tax payment of their private clearing certificates and clearing or money tokens, but only at their market value. Moreover, they would then begin to insist that depreciated government paper money be accepted at the tax offices at par with its nominal original paper value, while they, not being its issuers, would refuse to accept government paper money at par with its nominal value whenever it had been over-issued or the might refuse to it altogether in all their transactions. But at present the government has their throats still in the sling of its exclusive and forced currency and can pull that string tighter or depreciate its paper value standard at any time. It will also always tend to blame private exchangers and their exchange media and channels and their value standards, and speculations in them, for the depreciation that follows its over-issues of its own exchange media. - J. Z., 14.4.97, 6.9.02, 6.2.11. - OR DEPOSIT EXPANSION OR THE RISK OF INFLATION & DEFLATION. - 3 pages and 174 lines! Never start anyone on his hobby-horse. He might not know where to stop! - For now I will not attempt to try to break up this all too long passage into more comprehensible segments. Upon re-reading and partly re-writing it, I have probably not yet eliminated all of my remaining errors and mistakes. I do not claim to be an expert on any subject but merely try to think those through, as well as I can, which do interest me. By all means, do better! - J.Z., 2.6.11.

CREDIT CREATION: What is usually called "credit creation" is nothing but false pretence, fraud or robbery." - J.Z., 5/73. - When only short term credits are involved, that are self-liquidating, like in the discounting of real bills, then merely an advanced form of clearing takes place, spread over a short period, in which the IOU of the buyer, being unsuitable for general circulation, is "cut up" or temporarily replaced by small bills, suitable for circulation, with which workers, retailers and, finally, wholesale buyers are paid, who redeem with them their IOU or real bill, which they gave to the manufacturer and which the manufacturer got discounted at a sound bank of issue. Who really gave the credit here was the manufacturer, for the payment of the goods he delivered to the wholesaler, products that are thus on their road to the retailers and the consumers. He merely got the IOU or the bill of exchange; he drew upon the wholesaler, TRANSFORMED, by the bank, into a more suitable means of payment, especially for paying his wage and other suppliers' bills for his production. That transformation is "creative" only insofar as any artist transforms some materials in one way or the other, to make them more suitable and attractive. It is in neither case of a "creation out of nothing". - To say that it is "created out of thin air" is misleading, seeing that valuable elements, like oxygen, nitrogen and helium are precisely thus produced. - J. Z., 18.4.97. - Not is the term "thin" appropriately used in this connection, since neither mountain or near-space air is used for this purpose. - J.Z., 7.9.02, 1.6.11. - OR SOUND BILL DISCOUNTING OR CLEARING?

CREDIT CREATION: Your own preferred monetary system is based on some of the premises of Social Credit people - followers of Major Douglas' teachings. They are split in many different schools and sects but do share some common premises or prejudices and false observations, especially that on the supposed "creation" of money and credit out of nothing. It is fundamentally and especially false when ascribed to those private banking institutions, which are otherwise privileged but not in this respect. "Ex nihil, nihil!" ("Nothing comes from nothing!") ­Even the greatest artist, chemist, physicist or biologist cannot create something from nothing. He can only reshape and rearrange existing materials in a better way. When the government "spends" its additionally printed legal tender notes, then it does not create anything, no more so than an officer of an occupation army does, who issues "requisitioning certificates" in a supposed "payment". I.e., he appropriates the values of others. He does not "create" new values. When a cheque forger forges cheques, he does not "create" anything, either, but, instead, wrongly appropriates some money that rightfully belongs to others. When a government issues directly or indirectly its currency notes, those needed to finance its spending as well as those which an economy has to have, in the absence of monetary freedom, as some form of money, even if it is a monopolized money, then it does not create and offer something that is currently wanted, to the extent that it is supplied, but it rather makes and anti-economic "war" against many to most of its subjects and charges them the costs of this warfare under many kinds of illusions, lies and false pretences. It requisitions rather than produces. It can rightfully act only for those of its peaceful citizens who have given their consent to all its actions. And that is often only a small minority. Least of all is it able to provide peace, justice, prosperity, freedom, security and stability. Parodies of each are offered instead and contraries. Please consider: For many decades now we have seen the growth not only of privileged commercial deposit and savings banks but also of cooperative and credit union banks, even banks especially of and for women and for the ecology and conservation movement. How happy would all these people be, and how fast their banking enterprises would have grown, if they had "discovered" that merely by putting on the hats of bankers, they could, thereby, suddenly and arbitrarily multiply their deposits, at will, between them, "creating" wanted values and becoming rich, "out of thin air". How nice it would be for them if they could "create" most of the funds they need for a new car or a new house in this fashion! How come all these millions of cooperative people did never discover THESE supposed banking advantages and privileges for themselves? Are they so dumb or blind? Berthold Brecht must have had a similar prejudice in his mind, when he suggested, in one of his left-wing propaganda writings: "Do not rob a bank! Start a bank!" - If that kind of "something for nothing" scheme were possible, then everybody, especially the already rich and powerful, would love to get into the act and all barriers against it would have been broken down, long ago in their general rush for unearned riches. How come so many rich people, skilled businessmen and entrepreneurs and also innovators are still satisfied with making an average of 5 - 15% in interest and profits on their productive capital investments, when they could thus, and much faster, multiply their riches without any effort or ingenuity or investment and risk? What could hold them back or away from this supposed "pot of gold at the end of a rainbow"? - I have reproduced (on microfiche) 2 books critical of Social Credit ideas and also some writings by David Taylor against this prejudice. I saw once a third book title of this kind but did not buy it. - J.Z., 3/97, 1.6.11 - From a note to Robert de Fremery. - MONEY CREATION, DEPOSIT CREATION, SOCIAL CREDIT

CREDIT EXPANSION: Credit expansion is as much inflationary as e.g. paying public servants with additionally printed paper money. - Popular opinion. - If you grant somebody a credit from your bank account, in a consumer or an investment credit, with your own funds, or those entrusted to you for this purpose, then you do not multiply means of exchange and do not drive prices up but use the existing exchange media and do trade or sell over time, as usual, hoping to make a profit in your sales on terms, as well as in your sales for cash or cheques. - No creditor who wants to get all his money safely back, plus a profit, will be expansive with his credit. (But if he is allowed to gamble with the money of others …) - When a savings and investment bank or a current account and cheque bank grants a credit, then they tend to do the same as you would do - only on a larger scale and for more people at the same time (provided they are honest and competent). Through its mediation - and for the fees and charges involved, creditors and debtors still do their things for each other but, usually, anonymously as far as their total payment transactions are concerned. They are aware only of their face to face and order and invoice trade relationships, not of the mutual settlement process behind them. When "credit" is granted via additionally issued forced and exclusive currency, printed for this purpose, or via government "spending" in additionally printed legal tender, then and then only and to that extent, can the general price level be permanently increased, i.e. inflated, because these price increases are the only defence left to the recipients of these "payments". (I still remember, in times of rapid inflation, my public service salary being paid in freshly printed notes, still with consecutive numbering, i.e., having come straight from the note-printing presses of the central bank, the Reserve Bank of Australia. This happened for several consecutive months. Alas, I did not keep a record of these payments in such notes.) - What is overlooked in the very term "credit expansion" is the fact that at the same time a corresponding "debt expansion" is involved. The "expanded" credit cannot be created out of nothing. It must mobilise already existing funds and assets. Otherwise the recipients could not spend these loans. E.g. a furniture or car sales firm might mobilise thus part of its unsold stock, presently cramming its warehouse or parking space. And the debtor, of a consumer credit purchase, for each repayment or part-repayment of his debt, must correspondingly restrict his other purchases. In the whole notion of credit expansion, if no inflationary expansion of the legal tender circulation is involved, then all the fallacies of "credit creation" or "money creation" are involved. - Even if in reality a "credit expansion" were possible, it would always only be temporary, not permanent. Each credit would have to be repaid, largely out of the sales of goods, services and labour. A paper money inflation is reversed only exceptionally - and then also with catastrophic effects. But a credit "expansion is always and automatically reversed by the repayments of the "expanded" debts, which would have to correspond to it. It is careless, to say the least, to speak only of a supposed "credit expansion" and not of the accompanying "debt expansion." Prices might then rise at most temporarily - to decline correspondingly when the credits are repaid. But any expansion of the paper money circulation would be permanent. However, I would deny that a real "credit expansion" can take place - otherwise than in the imagination of some. Just because one coins a word for something does not mean that the reality will automatically and certainly conform to that new word. Otherwise, I might say: Abracadabra: Turn into a frog, NOW! - and you would turn into a frog - or whatever I had wished you to turn into. - When debtors can't repay their creditors then both tend to go bankrupt and nothing but a myth remains of "credit creation". Only in a system of monetary despotism can practices arise which some interpret as "credit expansion" or "credit creation" but which, in reality, are fraud and coercion of quite a different kind than the one imagined. - It is particularly absurd when under the system of monetary despotism some of its victims, namely private bankers, forced to deal only with the forced and exclusive currency of the central bank, are then accused of depreciating the currency of the central bank by their manipulations - while the central bank is assumed to be a defender, protector or stabiliser rather than an inflationist of its currency. - No decrease in the percentage of hoarded funds for the granting of credits should be termed a "credit expansion". - J.Z., n.d. & 2.6.11. - & INFLATION, INTEREST, DISCOUNT RATE, OPEN MARKET POLICY, CENTRAL BANKING, CREDIT RESTRICTIONS

CREDIT EXPANSION: Is it a dangerous reality or a false assumption? Attention should remain focussed not on the dishonesty involved in fractional reserves used to promise 100% redemption at any time, whether in gold coins, consumer goods or services or labour, while much of the cash or deposits is lent out, but, rather, upon the additional turnovers so achieved, which could also have been achieved merely by free and honest clearing, using no exchange media, or actual deposits at all but merely sound value standard accounting. To the extent that this happens, the supposed credit- or money- or deposit-expansion or "creation" merely represents more trading and does not disturb the total balance between exchange media and goods, services and labour exchanged. There is also a time factor involved. If the first depositor really leaves much of his deposit, in practice, not by the terms of his deposit contract, on medium or long terms with the bank and if the bank then dishonestly lends that money out, e.g. on short terms, several times, and and these loans are then several times repaid, within a medium or long period, then the total of these loans and their repayments, seems to some to indicate a credit expansion, one that is unjustified. But others see a) the repayments and b) the additional turnovers thus achieved. The same dollar, over a short to long period, can change hands hundreds of times, promoting exchanges of hundreds of dollars worth of goods, services and labour, without being thereby depreciated. Naturally, sound value reckoning rather than paper standard reckoning and free market rating of exchange media against the sound value standard and the option to refuse any exchange medium or to discount it (except the own), or to resort to a competing one, would help in this process. Monopoly status, compulsory acceptance and compulsory values do disturb all exchange relationships and cover up essential details that are required for sound and self-regulating issues and reflux of the issues. - When short term deposits are invested on long terms, when fractional reserves only exist but promised are 100% redemption at any time by the issuer, upon demand of the note holder, then there is much talk about the dependency upon confidence and trust while, in such cases, distrust would be deserved and correct. No one should be allowed to get away with promising more than he can fulfil, with the excuse that merely confidence and trust in his actions were ultimately lacking. - The central banks try to reduce this malpractice by insisting that the banks keep part of their cash or demand or short term deposits with the central banks. I do not know whether they pay the banks - and thus the depositors - interest on these accounts. Certainly, that interest would not be earned through the most productive investment of these funds. Nor do I know what the central banks usually do with these accounts, i.e., whether they keep them frozen or lend them out on short terms - or even on long terms, especially to governments, since they are more or less at liberty to print exclusive and forced currency cash when calls for cash are made upon them. - When it keeps these bank reserve accounts frozen, then it would have initially issued these amounts, with compulsory value and compulsory acceptance - and then compulsorily retired them, for at least prolonged periods, from circulation. When, instead, used for government spending and then compulsorily withdrawn by taxes, the money is not frozen (apart from inefficient and too slow handling of government accounts, that leave funds unused for prolonged periods and can thus cause deflations) but spent again, since governments are rather inclined towards spending more than they do coercively extract or confiscate, then these reserves disappear in government spending. - To the extent that banks are forced to keep reserves with the central bank and these reserves are then kept there, idle, they could, almost without risk, lend equivalents of these amounts out on long terms, since the central bank could always back them in cash. To that extent the dishonest practices of long term lending out of short term funds deposited by one's customers, is encouraged rather than discouraged by these reserve deposit practices. The central bank would then be an accessory or even an abettor or guarantor for such dishonest actions of the banks, supposedly under its supervision and control. - Tempted by its option to issue more additional legal tender notes in "repayment" of these reserve amounts, when they are already spent by the government, or borrowed by it, on long terms, then it will engage in a corresponding inflation by the over-issue of its legal tender monopoly money, when the supposedly still existing reserves are needed by the banks, and thus paid by the central bank. Governments and governmental institutions are infamous for spending funds intended for one purpose for other projects instead. Then, when the reserves are called upon and paid out in additional forced currency notes of the central bank, this guaranty against an assumed "credit expansion" will, rather, achieve an actual inflation. - If the central bank paid no interest on these "reserves", then the banks would have to charge correspondingly more on their other loans or pay less to their depositors. - By the way, I have still to find a clear statement by any bank on how it can justify the large differences between the interest rates it pays and those it charges. In the age of computers these differences seem to have become larger rather than smaller. - Let us assume, instead, that the banks were free to issue bank notes and clearing certificates for turnover credits. Then the volume of their issues would tend to rise and fall with the requirements of trade. More goods and services would be produced and sold, at least to wholesale traders, and the debts of the wholesale traders to the producers would be monetised upon the banking principle or real bills doctrine, temporarily, by notes more suitable to circulation, until the short term debt falls due and is repaid in the notes or clearing certificates (or deposit accounts) issued upon it. That would not be a process that could unilaterally increase the exchange media out of proportion to the goods production, sale and consumption, but reduce it to the offer and use of means payment corresponding to the quantities and values of the services, goods and labour supplied. Under stable value reckoning, optional acceptance, freedom to refuse acceptance, freedom to discount a suspected or really over-issued exchange medium, and with only the issuer obliged to recognise and accept his own exchange media at par with their value standard, enough exchange media could be freely issued, not over-issued, and the repayment obligations involved would keep them at par. Over-issued exchange media could not be forced into circulation and could not be given a forced value. They would all remain clearing exchange media, even if the clearing were not instantaneous but spread over 30-90 days. These currencies or current account deposits or clearing accounts could be as elastic as they would need to be. When no one is legally or juridically or customarily obliged to supply rare metal coins or, likewise, monopolised, legal tender paper money cash, while all he can offer by his own efforts are often only efficient means of clearing, then the risk of inability to pay would be largely removed. - Instead or using the clearing process for turnover loans, which can provide out of itself, via sound bank note issues and clearing certificates, all the exchange media required for it, bankers do now usually grant turnover credits out of savings invested with them. Such practices are based on the old models of bills of exchange redeemable in rare metal coins and of rare metal deposit certificates, with all their inherent risks of cash payment disability, while the clearing payment ability would have remained undiminished. By now we should be able to think and act beyond these models and to reckon in gold weight values without having to own or pay in a single rare metal coin. - When rare metal deposits are required then the depositors should be prepared to pay the costs of keeping them, 100% of them, in storage or mobilising them only via 100% covered and redeemable rare metal certificates and in case of fractional covers then only with any of several precautionary clauses that would abolish the risk of a run. When bankers and depositors would have to agree upon such clauses and contracts, which would remove the occasional impossibilities of fulfilment, then they would replace them by a number of contractual options that remain possible for mutual satisfaction. (For instance, the bank might pay out its deposits in banknotes with a clearing foundation only, based upon acceptance by the bank in all payments due to it. - J.Z., 14.9.02.) They could reduce repayment or withdrawal claims by requiring timely notice of withdrawals, limiting them to the amounts becoming available in repayments or allowing only fractions of the deposits to be withdrawn immediately. Or they could introduce waiting lists for withdrawals. Alternatively, they could hand over, as a security, the short term debt certificates for those funds they had not kept in cash but had invested on short terms, promising to take them back, when these debts are due and paid and pay the claimant then out of this debt repayment. Whenever bankers and their customers realize that they do not need rare metal stocks or legal tender paper money to trade, then they should be free to provide and use their alternative means of exchange and clearing options, with both using alternative and freely chosen value standards. Then bankers would not need any rare metal coins or legal tender paper money cash or cash accounts of that type to finance any turnover credit loans or current exchanges. - When the savings and investment market is quite free, then bankers and customers should also be free to determine the terms and to remove any term risks by their contracts, apart from the insurable risk of bad debts not due to the money monopoly and its manipulations. Any risks the bankers take, in speculative investments, should be, quite openly, done only with funds entrusted to them for this purpose. To assure that, full freedom of contract, full publicity and full personal liability should be introduced and the futures risk involved in all payment contracts should be clearly stated and withdrawal premium and the clearing alternative for all such contracts should also be pointed out. Confinement to monopoly exchange media, an exclusive value standard, privileged banks, restricted clearing options, to coin and legal tender cash redemption models should be abolished as a constitutional, legal and juridical imposition (except among exterritorially autonomous volunteer communities). Upon contract and at the own risk and expense any payment system, from internal monetary despotism to full monetary freedom, should become permissible for voluntary payment communities, at their own risk and expense. - J. Z., 5/97. - We should be given the chance to learn as much as possible from the mistakes and errors of others. - J. Z., 14.9.02. - And of our own. - J.Z., 2.6.11.

CREDIT EXPANSION? Those believing in almost unlimited credit expansion as a result of every credit granted by one deposit bank and the credits then being deposited in another bank and serving as a cash security basis for much larger credits there, do forget that people do not borrow and pay interest on their loans in order to leave the money in the bank. They borrow to spend the money, and this rather sooner than later. Further, most of what they spend is not ending up in savings accounts of others but is spent on current consumption of those who supplied them. However, the clearing effect, which does not need any quantity of exchange media at all but merely a sound enough value standard, does often give the impression (if all the turnovers achieved by clearing, are added up), that an expansion of deposits or of currency has taken place. - J. Z., 21.5.97.

CREDIT INFLATION? Isn't it strange that people frequently speak of a credit inflation but rarely of a credit deflation caused by the repayments of credits? Actually, during inflations debtors are more eager to repay their debts in inflated money than they are able and willing to repay them with sound money. Should we call this a deflationary phenomenon? One that is quite common in the middle of a raging inflation, because sound money is then, obviously short. Without free market rating of currencies with sound value standards we do have no reliable measures to find out whether the circulation is oversupplied with exchange media or under-supplied or just sufficiently saturated. A real inflationary effect of what has been called "credit inflation" can only result under legal tender currencies, issued not only in short term loans, which are sound turnover-credits, but "spent", permanently and forcefully into circulation, for current government expenses or in medium and long term loans, subsidies, bailouts, stimulus spending, pump-priming, handouts, foreign aid programs etc., i.e. without sufficient reflux arrangements required, for currencies, to balance their issues at any against wanted consumer goods and services at any particular time and thus to maintain their value. Such money resembles requisitioning certificates much more then genuine goods- and service-warrants in convenient money denominations. Why should anyone have to accept them and this at their fictitious face value? When a medium can legally be forced upon anyone, not only the issuer, then there is. frequently to usually, not enough reflux to the issuer, even when the State or its central bank is the only issuer and reflux arrangements are as high as the current direct and indirect taxes are. The inflation tax acts otherwise. It gradually or even fast destroys the purchasing power of the exclusive and forced cash in the hands of everyone, without most people becoming fully aware of this depreciation, because, nominally and by appearances it remains the same. All they notice, to some extent, is the rise of all prices expressed in this medium - and that their medium and long-term credits are remaining nominally the same, but not in their purchasing power, and that interest rates are rising. - For any price- and wage rises they then blame the retailers and labour's wage demands, instead of the issuer of the inflated monopoly money and the legislators for establishing and maintaining such a wrongful and dangerous institution. - J. Z., n.d., 2.6.11.


CREDIT INSURANCE: It can be a real insurance business only for ordinary business risks, spreading them among its subscribers or premium players. It cannot insure anyone or all participants against the risks of inflation, deflation and stagflation, due to arbitrary and at least in their degree unforeseeable government interventions and in their total harmful effects these are much too large to be insurable risks. It can also not insure against the abuse of this cover by careless investment bankers and companies that think that they can skim off the high profits of extremely risky investments and let the insurer (or involuntary taxpayers) bear all their losses. To prevent that effect the insurance companies must examine the credits to be insured more thoroughly than those lenders do, who want their credits insured. - J. Z., 24.3.97. - See: Deposit Insurance. - When incompetence, carelessness and corruption waste or make money "disappear" by the millions and billions, as has happened too often in recent years, then this is simply not an insurable risk. Only a much better, more public and much faster and thorough accounting and court system could prevent or reduce such losses or recover much of the funds that went astray. The hierarchical forms of enterprises do also multiply, maximise and prolong such abuses and so does the relationship between employers and employees, capital owners and employees, managers and shareholders. - J.Z., 30.8.02.

CREDIT REFERENCE BUREAUS: Australia-wide credit reference bureaus were planned in 1989 and also opposed under privacy claims. - Those with a good credit rating want it rather known than hidden. Those without debts will not be interested. Only those with a bad credit record have a motive for hiding it as much as possible. All their potential creditors have an interest in finding out how good and reliable their potential debtors are. Not debtors have a right to cheat their creditors. The general economy will be better off if bad debtors become known as such. That would lead to less bad investments, fraud, embezzlement and waste of scarce capital. If debtors are wrongly treated by one credit reference bureau then they should be able to set up their own in competition, supplying all the evidence required for their credit-worthiness. If there is no single credit reference bureau and compulsory registration in it and if there is also the option for debtors to see the records on themselves and to make corrections and comments and to refer e.g., to more accurate reports on them, in other credit reference bureaus, then few debtors would have any cause or right to complain. - The most accurate records would probably be compiled by a bureau which not only supplied credit references but also engaged in credit insurance. Then it would have no interest in providing a good reference to a bad debtor or a bad reference to a good debtor. On the contrary. - When there are competing credit reference bureaus then the more accurate ones will also get a larger share of the total business. Uniformity, centralisation, a monopoly for a single credit reference bureau for the whole of Australia are not required. E.g., debtors might come to declare towards their potential creditors that such and such would be their credit reference keepers. A special credit reference bureau might also be established that would point out how reliable the references of various credit bureaus have been, in the past, according to the reports sent in by creditors. - Alas, credit bureaus can only supply information on honesty and ability, not on the disabilities that are the results of government interventionism, especially monetary despotism and compulsory taxation and changes in taxation laws and regulations. - J. Z., 13.3.89, 15.5.97, 2.6.11. - CREDIT & PRIVACY, INFORMATION REVOLUTION, COMPUTERS & CREDIT REFERENCES

CREDIT RESTRICTIONS: A means to fight inflation - An all too popular opinion. - What ought to have been restricted, long before credit restrictions are officially attempted, is the issue of government monopoly money with legal tender power and that, very often, to inefficient and dishonest private debtors, sometimes on a vast scale, and, usually, also to wasteful and dishonest territorial governments and their bureaucracies and empire-building attempts. When, as a result, many private and public debts become bad debts, and the forced and exclusive currency has already been used to over-issue and depreciate it, then general credit restrictions are sometimes imposed, while monetary and financial freedom remain suppressed. This means that then honest and efficient or productive debtors will get less credits than they need, i.e. the economy will be forced to shrink, while dishonest and inefficient debtors do often get some or even all of their debts cancelled and depositors lose some or all of their deposits or taxpayers are forced to subsidise bad debts or the losses made in granting them. Reckless loans ought not only be restricted but done away with altogether. Sound loans should be expanded to their optimum, rather than restricted. Naturally, this should not be done on the basis of an almost continuously deteriorated value standard but at least under general use of value preserving clauses, better still, under competitive sound, optional and market-rated currencies only, which do not permit debtors to legally pay back less than the value of their debt in depreciated monopoly money that was made legal tender. - In the absence of free market rating for sound and competing currencies there is no obvious and early limit that prevents over-issues or indicates under-issues or the saturation point of the economy with exchange media. Thus the forced currency leads always either to deflationary, inflationary or stagflationary effects, at least in some sections of a national economy or in different circulation channels. Under monetary despotism the public sector will tend to get preferential treatment, while the private sector will tend to get under-supplied - while it remains prohibited from supplying its own sound and competitive exchange media. To apply the same kind of exclusive and centrally conducted "credit policy" uniformly over a whole country and its population, e.g. to agriculture and tourism, which are largely seasonal, and to industries, which are not seasonal, must lead to unsatisfactory results. If the centralized credit depends on statistics, then it depends upon the gathering of the statistic information, the accuracy of it, the honesty in the selectiveness of the statistics, the various schools for interpreting it and the various schools of thought on what to do about it and the influence of the numerous vested interests, lobby and pressure groups and upon other political considerations, with the next elections in mind. Thus whatever policy is adopted might be false, too early or too late, do too little or too much or is also applied to the wrong section of the economy. Obviously, no God can take evenly care of all of "his children", nor does or can any government or bureaucracy take equal or just care of all of its subjects. No centralized management can replace self-management and self-responsibility. Any "even-handed" centralized policy for all of the economy, all its different parts, in different situations, means inappropriate and indiscriminate handling of different situations. It will inevitably and more or less be a "monarchic" or "feudalistic" policy, under all kinds of democratic or republican pretences, applying centralized planning and direction. Those which were over-supplied with exchange media, e.g. in one or the other form of subsidies, may be granted even more. Those which were already under-supplied with them, as agricultural areas, for instance, often are, might become even more deflated than they were already before. Honest and productive debtors and sound credits to them should never be restricted. Dishonest and unproductive debtors should never be granted any credit and unsound types of loans should also not be made. But when loans are granted upon "connections", "reputation", "power", or supposed "securities", or political influence or donations to political parties, when they are often quite speculative and negligent, in spending millions to billions, without even thoroughly inspecting the account books of the debtors, what otherwise can one expect than large accumulation of bad and largely uncollectible debts? - To try to reverse a prior inflation by deflationary steps does not undo the wrongs and damages of inflations but adds the wrongs and damages of deflations. The restriction upon sound credits do not undo the damages done by the granting of unsound credits. Credits granted and taken only in the expectation of further inflationary price rises, which would enable debtors to repay their loans with more and more worthless paper money, are also fundamentally unsound and ought not only to be restricted but abolished and prevented. Nor should governments, at the expense of tax payers or depositors, ever bail out dishonest or incompetent debtors or those who granted bad loans. Credit restriction should be complete in all the monies of monetary despotism: exclusive and forced currency. They should no longer be permitted in or imposed on any transaction. - Trying to counter the effect of a previous inflation of forced and exclusive (legal tender) currency by its deflationary reduction via credit restrictions, while at the same time not permitting any competitive currencies, is like driving over a pedestrian and then trying to revive him by reversing over him. - If that example is too gruesome for you: Envision how easily it is to squeeze out a toothpaste by hand and how difficult, without special equipment, to reverse the process and thus to restore the tube to its original appearance. - One of the major wrongs of credit restrictions or credit squeezes is that ALL credits will be reduced, directly by government authorities or upon their pressures, not only those of governments and their authorities, although these were all too often the only or the major offenders, and not only foul credits by sound ones as well. - J. Z., 28.3.97, 30.8.02, 6.2.11, 3.8.11. - PLANNING, POLICIES, CENTRALISM, CONTROLS, REGULATIONS, LEGISLATION, BUREAUCRACY, MONETARY DESPOTISM

CREDIT RESTRICTIONS: The best answer to credit restrictions is to provide your own honest and efficient note issue and credit institutions, and means of payment and value standards and turnover credits paid in them or in establishing pure and free clearing facilities for this purpose, legally, if it can be done, illegally if it must be done, in rightful self-help efforts and in the realisation of basic economic rights, never mind that governments have so far not recognised them. - J. Z., 1985, 21.5.97. - MONETARY FREEDOM, SELF-HELP, MONETARY FREEDOM REVOLUTION, FREE BANKING, RIGHT TO SUPPLY ONESELF WITH WORK & SALES. - RECESSIONS, DEPRESSIONS, DEFLATIONS, SALES DIFFICULTIES & SELF-HELP AGAINST THEM


CREDIT, ESPECIALLY TURNOVER CREDIT: Your system would permit credits only with already pre-existing monetary funds, with savings that are invested. Such notions were natural for advocates of a an exclusive rare metal currency or of 100% covered certificates of gold, silver or platinum or of any other commodity-based currency, based on e.g. stored coal or wheat reserves. In this whole host of opinions, errors, prejudices and preconceived notions and convictions, the clearing options are usually overlooked, especially in the sphere of turnover-credit. These options have been extensively discussed by Ulrich von Beckerath, Prof. Heinrich Rittershausen and Dr. Walter Zander, to speak only of the most advanced representatives of the German, Swiss & Jewish monetary freedom school, particularly with regard to the inflation, depression and mass unemployment risks of the present system. (I have tried to illustrate the turnover-credit and clearing money issue options in my circulation charts in PEACE­ PLANS 41, later digitized, to supplement their theoretical texts and those of others.) Turnover credit, like medium and long-term production credits, also benefits from a sound value standard, preferably one chosen or agreed-upon by the participants, but it does not need any external provider of exchange media or any uniform and externally prescribed value standard. For its short terms involved the value standard is also mostly not of great importance. It can provide its own self-liquidating and inflation- as well as deflation-proof clearing media, credit accounts or banknotes and did so, traditionally, for a long time and - well, limited or interrupted and sabotaged, sometimes, only by the prejudice in favour of metallic reserves and redemptions, which they as sound clearing media, do not need and which only limits and disturbs the clearing process and how much can be achieved with it. It could have functioned much more extensively, as and more safely and undisturbed without these unjustified and unnecessary impositions, "precautions", "reserves" or "guaranties". Especially under full freedom of choice of value standards, if only the participants are sufficiently enlightened on this and on the freedom to issue and refuse to accept or to discount (or to free-market-rate or price) any currency (that was not issued by them or which they are not, by contract, obliged to accept at par) and thus are habituated to compare and choose, rationally and well informed, all exchange media and value standards. These two distinct features should not be coercively and monopolistically combined because then the pricing mechanism of a free market cannot function with regard to them. This real bill or commercial bill discount tradition is sometimes known and described as the essence of the "banking principle" (especially in Beckerath's writings, and in the English and US tradition as the "Real Bills Doctrine". Alas, it, too, is still and largely misunderstood by most "free banking" advocates, even 200 years after this principle and practice was seriously but not yet fully discussed. I had a long exchange with Kevin Dowd on this, which I will not repeat here. It is filmed in my series. Considerable controversy on this subject remains. Most of it overlooks some monetary freedom traditions or options. I will here only shortly describe, in one instance, what is involved. Even after centuries sufficient enlightenment in this sphere is still as rare as it is e.g. on free trade, land reform, cooperative production, rightful revolution and liberation and defence efforts: Assume a local productive and alternative exchange media and payment community, free to help itself when insufficiently supplied with government cash currency to pay all wages and to enable all potential customers to pay for their wanted and needed purchases, e.g. a depression condition. Under freedom the local factory owner, for instance, who might employ most local people, would be free to sell his goods, as usual, to a wholesaler, for a short term promise to pay, which the wholesaler hopes to make good by the sale of the goods to retailers. So he pays the factory owner e.g. with a sound commercial "bill of exchange", sound, because it represents a real commercial transaction, a sale of goods already produced and on their way to the final consumer. But the factory owner cannot pay his labourers or his suppliers with this large bill. It is a single certificate for a large amount owed to him. So he needs it "broken" or "cut" up into small bills, in money denominations, running for the time until the large bill is due. These small bills would simply anticipate that ultimate settlement and make it easy, as its means of payment or clearing. Thus he takes the large bill to a local free bank of issue, which provides this service for him. For the bank's discount of the bill it does not require any savings or rare metal gold reserve. It can and should "discount" the large bill by exchanging it into its own standardised and typified bills or bank notes, in money denominations. (It should not utilise any existing legal tender paper standard for this, for then it would be involved in any inflation or deflation of that paper standard and paper money, by the third party "authority".) Now, neither the large bill nor the small bills need carry any promise to pay gold coins or bullion or government currency, they do merely represent each other, until they get cleared or redeemed each other. Required is merely the promise and readiness to accept them in clearing and payments like ready cash - using such and such a value standard, the one agreed upon. With this discount transaction the employer gets the small bills or notes he can use to pay his labourers with. (If these are not prejudiced against any private payment alternatives, misled by their union functionaries, as usual.) Alternatively, he can establish corresponding deposits at the bank for them, which they can dispose of with cheques or credit cards. Those hesitant to accept the alternative private bills or deposits could be informed and shown easily that the local shops are ready to accept them like ready cash. Perhaps an insufficiently prepared group of employees hesitates or refuses at first such an alternative payment. Then someone might be sent by them, immediately, to the nearest store to try out this new payment method, while the others still wait, refusing to accept the alternative banknotes or accounts until their messenger returns. He could be back within a few minutes with his important message: It's as good as cash at the nearest local store! Thereupon the labourers will be, most likely, willing to be paid in this way, or so we will assume here. As usual, they will spend these, their cash or cheque accounts, fast, mostly in the local stores and pubs. These will return the notes, directly (or indirectly via their bank), to the wholesalers, to pay with them for their previous or new orders. The wholesalers uses the notes - or their corresponding account at the bank, to redeem their large bills of exchange, now held by the bank against him. Then, ideally, all the small notes and the large bill should be cancelled. They have fulfilled their functions. This process can be endlessly repeated and paralleled by other such turnover-credit facilities or, accordingly applied, in other circles, too. Such bills or notes will be readily accepted, at least locally, only if and while they are running at par with their nominal value, e.g. a certain gold weight unit, initially, probably or possibly, only the government's paper or rubber "standard". They will be and should be widely or altogether refused should they suffer a considerable discount, making further issues impossible or costly to the issuer and beneficial only to his remaining debtors - if he has not contractually obliged them to always accept his notes at par. Obviously, they do not require a gold cover or reserve or redemption by the issuer in order to function well. Such a single issue transaction does not describe sufficiently the mutual dependence between local firms and others. But, historically, it has often happened that notes of well known local manufacturing firms were locally circulating like ready cash. Some of these local firms did even later turn into local banks of issue. - The law in most countries and most theoreticians and money reformers would not permit a local payment community such a freedom or freedom for essentially similar mutual clearing experiments. Almost all rely on father State or Big Brother doing his best and on his best being good enough. Even at their best they are mostly not good enough, nor can they be, for several inherent reasons. To illustrate one of these, shortly, Ulrich von Beckerath used to say: A single bakery cannot supply a whole country sufficiently with fresh bread, either. For more arguments on this see under CENTRAL BANKING. The banking principle (there are several legal forms and hypotheses and practices of it, some sound, some not so sound and mixed with notions and practices of the currency principle) or real bills doctrine, as applied above, is not and cannot be inflationary - if a sound alternative value standard is used. If, uncritically applied and an inflated governmental "value standard" is used, then it would, naturally, participate in the general inflation expressed in the prices when this exchange medium and its "value standard" are still used - but not by adding to it. Remember, it would merely mediate local genuine, wanted and necessary exchanges. It is self-liquidating. It does not put additional notes permanently into circulation, by giving them a fictitious, exclusive and forced tender "value" but it sees to it that the issue is in correspondence with the goods produced and already sold to the wholesalers and on their way to the retailers or on their shelves, waiting for their consumers and also that these additionally issued notes, achieving additional turn-overs, are extinguished again, soon, with the consumed products. Often they may already disappear from circulation or their representation in deposits, before the worker - consumers have used up all the perishable food items they may have bought with these private notes or accounts. Without this option to provide wage payments, the factory owner might have to close the factory, the wholesaler could not redeem his bill, the retailers might go bankrupt, the workers would be unemployed and hungry - to the extent that the governmental central bank system does not supply the local community sufficiently with cash - or clearing facilities. Even in the best of times, which are possible under the despotic central banking system, a number of manufacturers and wholesalers and retailers do go bankrupt merely because of the unjustified and unnecessary frictions and difficulties introduced by this monopolistic, despotic and insufficient exchange system. - Tradition and correct theories insisted that only sound commercial bills be so discounted, because they are self - liquidating, not "financial bills" or long-term or habitually extended bills, because these would at least postpone their redemption, for a longer period and would be much less certain to be redeemed by their debtors at all. FINANCIAL bills, if discounted with banknotes that are  not covered by gold reserves, would inevitably lead to a depreciation of these bank notes (unless they are given the legal tender privilege and can thus drive up prices) in a market in which they may be freely rated, refused or discounted against sound alternative value standards and other currencies. Their "reflux" is not assured, in time. The same amount that was issued is not soon due, exerting a corresponding immediate demand for the notes. Moreover, they do not represent additional goods added to the market, which act as their redemption fund. On the contrary, they exert an additional monetary demand for the pre-existing goods, thus driving prices up. Only already sold goods, ideally consumer goods, not stocks of presently unsaleable ores or grains, or ready for sale goods (of shop-associations acting as note issuers) can form a rightful and efficient basis for private currencies, local or shop currencies, that are truly "current" and readily acceptable because of this foundation or "readiness to accept" for daily wanted consumer goods and services. All other kinds of issues are mostly attempts to thus acquire the goods and services of others without immediately offering them equivalent values in goods and services which they do want. Assignments upon accumulated large wool, wheat or coal stocks or blocks of land have only a speculative value to some consumers, with some capital and intention to so invest, more or less speculatively, for prolonged periods. They cannot satisfy their "current" or "currency" requirements and they do not oblige those who have ready for sale goods and services to offer them for such capital certificates. Only when the issuers are monopolists will the suppliers of consumer goods and services be more or less forced to sell for such monopolistic issues, if they want to participate in monetary exchanges at all. - The "Real­ Bills Doctrine", as practised above, does not fulfil the requirements of e.g. Rothbard's "100 % Gold Dollar" or of Robert de Fremery's "Population Standard." But it can satisfy the exchange requirements of a local community, no matter how productive or unproductive it may be and quite independent of the payments system desired by a State, State federation or world federation. No monopoly for such issues is needed, nor any coercive powers, but merely the right of the believers in monetary rights and liberties to practise them among themselves. To prevent forgeries or discover them sooner and to keep better track of the issues, returned bills used to be regularly cancelled or destroyed. But in order to save printing costs this practice was largely discontinued and the same paper-bills were issued over and over again, as long as they lasted, in new as limited and self-liquidating issues. Ulrich von Beckerath suggested a return to the cancellation practice after the reflux. He also suggested a limited and short circulation period for the issue of each series. Now there exist even automatic machines that can fast check stacks of notes for forgeries. Duplicate numbers in short and often issued series of notes, which circulate only shortly and locally, in most instances, before they return, would be very rapidly discovered by the use of such machines. Then, in many instance, the forger could be traced, too, rapidly,. - J. Z., 3/97, 3.6.11,3.8.11. - IS CAPITAL FUNDING FOR TURNOVER CREDIT REQUIRED OR ONLY A CLEARING OPTION?

CREDIT: Credit is extended only to 90 year olds who come accompanied by their grandparents. - Note I saw years ago on a cash register. - J.Z. - Have our present banks really practised the common sense rule: No credit to those who are not credit-worthy and credit to all who are? - Have they managed to utilise the "banking principle" to properly finance turn-over credits with their own banknotes? At present they seem even unable or unwilling to incorporate all kinds of fees and insurance premiums in a single interest rate. Moreover, even their extensive use of computers has not enabled them to reduce their charges and fees but has rather driven them up. - They still take 5 days to credit you with the sums of a cheque you deposit with them. - Even small credit unions are often able to undercut the service charges of large banks or to pay higher interest to depositors. - Their inabilities, unwillingness or bureaucracy has also been a great aid in the growth of numerous other kinds of finance companies. - J. Z., 7.9.02, 3.8.11. - & BANKERS

CREDIT: Credits are ultimately given in goods, services and labour, made available for an agreed upon period via certified claims upon them, which, by rights, should be issued or subscribed by the owners and sellers of the goods, services and labour. - J. Z., 30.4.97, 3.6.11. - ULTIMATELY GIVEN IN GOODS, SERVICES & LABOUR

CREDIT: If credit is the present value of a future good, then one should be able to anticipate e.g. the value of self-management of firms, through a take-over bid by their employees, issuing their own industrial bonds for this purpose, the future value of an increased knowledge through student loans, the privatization of all capital assets of governments, the irrigation of deserts (and be it e.g. through artificial mountains, increasing rainfall. L. J. Hogan, Man Made Mountain, 1979.), liberation through the overthrow of authoritarian, despotic and totalitarian governments, by anticipating their governmental assets, the value of an Ideas Archive and a Talent Centre, the establishment of peace on Earth, even contact with the civilization, science and technology of aliens. Such possibilities were partly described e.g. in PEACE PLANS 19C and 20. - J.Z., 15.4.11.

CREDIT: No man's credit is as good as his money. - Ed. Howe, 1855-1937. - A man's credit, honesty, ability or business reputation may actually be much better than that of the scarce or inflated and exclusive currency that he is forced to use. - Alas, he is so far not free to express his good credit in his own exchange media, including his clearing certificates, nor are honest alternative note issuing banks at liberty to do this for him. - The saying applies only to cash in form of good money, which is usually, but not always, preferred to credit arrangements. - J. Z., 18.4.97. - HONESTY, GOOD & BAD MONEY, DIS.

CREDIT: Turnover credit in form of newly issued physical exchange media or clearing certificates or current account credits, which need not be valuable through their material, like rare metal coins are, is the value, measured in a sound value standard, of goods, services and labour, ready for sale by the issuers of turnover credits and also by the voluntary acceptors of such means of payment, who may accept them at par with their nominal value or at a discount against it, while also being free to refuse them altogether. The issuers must always accept their notes, IOUs, account credits, clearing certificates or tokens, their "ticket money" at par with their nominal value - for whatever they have to offer for sale. By contract the issuers could and should also oblige their debtors to so accept these certified turnover-credit notes etc. at their par value, since with them they could immediately or soon repay their due or soon due debt to the issuer. Fundamentally, all such exchange media or credit options need not be covered and redeemed in the value standard units used but merely in the goods, services and labour of the issuer, all priced out in that value standard. - J.Z., 4.7.11, 19.7.11. - MONEY, CURRENT ACCOUNT CREDIT, CASH CREDITS, TURNOVER CREDITS, CAPITAL CREDITS

CREDIT: You should not be surprised when not getting credit in this world. Credit is monopolised and tied to an exclusive and forced currency, beyond which it cannot be much extended upon a free clearing basis as long as this monetary despotism remains in existence. As long as creditors are authorised to demand payment in legal tender cash, it cannot be extended as far as free clearing transactions could and should be, to multiply production and exchange, using sound value standards for honest accounting of the values of all trades. Under completely free clearing neither inflation nor deflation nor stagflation would be possible. All debts and credits would be, so to speak, only different sides of the same coin. All could be settled against each other, for all turnover transactions, for which payment is immediately due or within a short period. - J. Z., 22.8.76, 18.4.97, .3.6.11.

CREDITWORTHINESS IN THE EYES OF PRESENT BANKERS: Customer: "How do I stand for a five-thousand dollar loan?" - Bank Manager: "You don't - you grovel!" - THE LION MAGAZINE, quoted in READERS' DIGEST, 9/86, p.97. - Is this only a joke or is there at least some truth in it? - J.Z. - JOKES, Q.

CRIMINAL MONEY ISSUES: The issue of monopoly money or of money that is otherwise coercive and confiscatory or fraudulent towards third parties, who have not contracted for it or were not at liberty to contract, for themselves, payments in alternative and better currencies and may not freely refuse or discount the monopoly money, is quite wrong, even criminal and very harmful. - J. Z., 1.2.96, 20.3.97, 3.6.11. - That, at the same time, it does provide a uniform currency for a whole territory, cannot make up for its wrongs and the harm that it causes. - J. Z. 20.3.97, 3.6.11. - FORGERIES, COUNTERFEITING, FRAUD

CRISES: Crises, as opposed to simple scarcity, result from market disruptions; and the only sector of society which possesses the power to disrupt a large market is the government. - Henry G. Manne, REASON 4/74. - Crises are unknown in an unhampered free market economy. - Dick Sabroff, THE FREEMAN, May 74. - GOVERNMENT & MARKETS

CRISES: First governments, by coercive interventions, cause crises, while coercively suppressing self-help measures that would prevent or end crises, and then, under the pretence of fighting or managing or mitigating crises, they do, instead, by their methods of monetary despotism, make them worse and prolong them, sometimes into an almost total collapse of a monetary economy. Then they do have the cheek (impertinence) to do this while blaming others for the results of their actions. Alas, their victims do, usually, accept their excuses and blame price extortionists, exploiters, capitalists, financial conspirators, coercive unionists, greedy landlords, speculators, foreigners, immigrants etc., i. e. people who do nothing else but protect themselves as best as they still can against a government-caused inflation. - J. Z., 17.10.89, 16.5.97, 3.6.11.

CRISES: Micro-economic decision-making is the primary device for keeping crises on a micro-level. - Gary North, THE FREEMAN, 2/74. - Especially the micro-economic decision-making of monetary freedom! - J. Z.,7.7.94. - & MICRO-ECONOMIC DECISION-MAKING & MONETARY FREEDOM, VS. MACROECONOMICS & CENTRAL PLANNING & DIRECTION


CRISIS MANAGEMENT: To most of the ruling bastards this seems to amount to: Coercively manage affairs in a way that the crisis is kept going or even increased. - J. Z., 3.4.95. - Not only communists have often tried to make an existing crisis worse and to prevent genuine reforms, in an attempt to gain or maintain power thereby. - Politicians are always ready to declare an emergency and then to demand emergency powers for themselves, to deal with the crisis. (Compare Pres. Bush's "war on terrorism", then extended to "war against the Taliban forces in Afghanistan" and now to the planned "war against Iraq", not against its despotic ruler, after the 9/11/01 terrorist attack on N.Y.C. and Washington, and always upon the same wrongful principle that the terrorists apply in their actions, namely: collective responsibility, and upon the same "ideal" that they hold, namely exclusive territorial rule.) As a rule the crisis persists, in spite or because of their efforts, even much longer, as a result of their "counter-measures" - and the emergency powers tend to be continued afterwards or not completely abolished. The extreme case of this is indicated by Randolph Bourne's statement: "War is the Health of the State". Compare the growth of the "New Deal" statism under F. D. Roosevelt, which was extended, at least in parts, from the Great Depression to today. - In most instances "crisis management" means "crisis mismanagement" and "crisis prolongation", largely through prevention of common sense and economically effective and morally justified self-help steps. - The only thing that monetary and financial despotism, in combination with other forms of central planning and dirigisme or dictocracy, can manage to supply is - one crisis after the other, in which they can always demand and all too often are all too readily granted, more power to themselves, in spite of a continuing record of failures for all their A to Z "reforms" and "measures" and "plans" and further bureaucratic institutions, which repeat all the old wrongs and mistakes over and over again - but under ever new cover-up names and propagandist "justifications" and "explanations". However, sometimes they do reveal their empty-headedness, e.g. when they merely hope to reduce mass unemployment and rapid inflations by a few degrees in a few years, or when they have nothing else to propose but changes in the budget and in the official interest rates. Thus, obviously, they neither see nor admit the real causes and possible cures. - J. Z., 25.4.97, 8.9.02, 3.6.11.

CRISIS THEORIES: Decades ago over 140 were listed once, somewhere. Probably many more do exist. They are so numerous that all should be listed - and confronted with the facts and contrary theories as far as is possible, in order to enable the patient researchers to finally sort the wheat from the chaff. - J. Z., 19.3.97.

CRISIS: A Greek work for judgement or penalty of nature. - Dr. H. G. Pearce, one of the few Georgists who was a clear advocate of monetary freedom, too. I reproduced some of his writings but not yet the manuscript of his Introduction to Economics, being the notes to his lectures at the Aquinas Academy in Sydney, for a few years. - I still seek the hand-written final notes for this book manuscript, which was incompletely duplicated without them. - J. Z., 18.4.97.

CROOKSANDLIARS.COM: free market, Money | Crooks and Liars -,2301 - Cached - 24 Jan 2008 – free market, Money. 2 documents found in 0.001 seconds. DRILL DOWN: free market[-], Money[-] - Drilldown - Attacks - Bible - David Sirota ... - Also: CROOKSANDLIARS.COM: Science, free market, Money | Crooks and Liars -,2301,1953 - Cached - 24 Jan 2008 – Science, free market, Money. 1 document found in 0.001 seconds. DRILL DOWN: Science[-], Money[-], free market[-] ...

CURRENCIES & GOVERNMENTS: The dishonesty, coercive and monopolistic nature and the vested interests of governments are today largely expressed also in their forced and exclusive currencies, their depreciations, stagnations and manipulations. - J. Z., 25.1.90, 29.4.97. - MONETARY DESPOTISM VS. MONETARY FREEDOM.

CURRENCY BACKING: Not all real values and capital assets are a really good or sufficient cover for sound currencies. - Our health is very valuable to us, but we can hardly turn it into an acceptable backing for our currencies. Our ecology is most important for us, so are sunshine and rain-bringing clouds, but they are a bit hard to coin. We have valuables like large stamp and coin collections and can even sell them for much - but we can hardly turn them into local or national currencies. Each productive individual is worth hundreds of thousands of dollars in a somewhat developed economy, in the course of the decades that he is productively active, sometimes even millions. But we can hardly turn this, our personal capital asset, into an immediately useful currency, no more so than "the" labour hour. It happens to embrace goods and services we will only produce in years if not decades. They are not on the market as yet. Just try to issue and circulate the total production of your life's productive efforts in form of a personal currency right now! How many acceptors would you find? And at what discount rate? If you were a recognized genius or inventor, film star or pop star, you would find a few fans and sponsors accepting your notes. But what could they buy with them? Your autographs? - At most you could anticipate your near future earnings, through private clearing scrip or through share certificates and bonds. - What we can somewhat monetise right now are our labour and services capacity now, and during the next few days and weeks - no more. - It is true that all capital assets have some value in a free market. One can even sell them for currencies available on the market. But one cannot use them directly as local currency and give them, thereby, much purchasing power towards daily wanted consumer goods and services. But one can SELL them for the currency of others, IF others are prepared to buy them. - Currency is not like the leaves of grass on a beautiful lawn, although that lawn is also a capital asset. Nor can it be grown, like leaves on trees, although trees are also valuable assets. It is only capital securities that can freely mediate capital transactions, and it is only soundly issued (as well as re-called, in a natural reflux) currencies that can mediate the daily turnover of consumer goods and services quite naturally, rightfully and effectively. If asset "currencies", without a monopoly and legal tender power, were issued side by side with shop currencies and service vouchers and clearing certificates, they would have some value only among some investors. But no provider of goods, services and labour or creditor of short term debts would be obliged to accept them. These providers would, under freedom, rather issue their own sound currencies and accept them, in their businesses. Why should they give any purchasing power to thoughtlessly issued "asset currencies" or others? Not much of any "asset currency" could be put into circulation. What is the recipient to do with it? Extract some bricks from the building of the bank which issued it? Claim some wheelbarrows full of dirt from the farm which had monetised its capital value? Cut off some wires from the transmission wires, or take a turbine apart of an electrical power plant that had not issued notes acceptable to pay electricity bills with, but had, instead, issued an "asset currency" based upon its capital valuables, like dams, turbines and electricity cables? Capital assets have value only among users and buyers of capital assets. - If, on top of soundly issued currencies, based on consumer goods, services and labour, daily ready for sale, all capital goods were suddenly transformed into money denominations, why should anybody but investors accept them at all? The daily wanted goods, services and labour would not be increased by this multiplication of private notes. Thus they would not be exchange media for such goods. All you could buy with them would be the capital assets they were issued upon. No one else would have to accept them or value them when he is already supplied with sound exchange media for his purposes. Thus they would greatly depreciate below their nominal value and that would lead to their almost general rejection - except among some speculative investors, who might, by purchasing them very cheaply, get some capital assets very cheaply. - Historically, I know of no instance where it was ever successful as an asset currency. Almost all vastly inflated government currencies were fully covered - by government­ "securities". That did not secure their value. Ultimately, not even their issue monopoly and legal tender power could secure them acceptance. Asset currencies are not rally currencies but just a few among the numerous misconceptions on money, currency, exchange media and clearing certificates. - J. Z., 12.2.86, 2.5.97, 3.6.11. - BY ALL KINDS OF VALUABLES, WEALTH, CAPITAL & ASSETS? -

CURRENCY BOARDS: I see in them only a variation of central banking. They may be the best form that central banking can take but that would not be enough for me. Morally and economically acceptable to dissenters would be only such currency boards which confined their activities to the voluntary payment communities which believe in them. Since the faith in monetary despotism is still very popular this would give them a very wide sphere to act in, at least for a while. More and more the successful monetary freedom activities would deprive them of their followers and participants - through one-man monetary "revolutions" or secessions. - J.Z., 22.4.97. - The statutes for any competitive and voluntarily accepted or established currency board should carry a preamble like the following: We do no longer recognize the rightfulness of monetary despotism via any central bank over any groups of dissenters. We do not claim a territorial monopoly for our transactions and powers. Our uniform exchange media will be exclusively for our members only (provided they agreed on this) and accepted at their face value or at all only by contract. And these contracts can be terminated, at least at frequent intervals. Our exchange medium and value standard is legal tender only within our payment community and towards its note issue centre. - J. Z., 22.8.93, 22.4.97, 7.9.02, 3.6.11. - ON PANARCHY in the LMP PEACE PLANS series. CENTRAL BANKING, MONETARY DESPOTISM, TOLERANCE, MONETARY FREEDOM, FREE BANKING.

CURRENCY PRINCIPLE: Its advocates are still predominant among money reformers and advocates of degrees of free banking. Moreover, they still misunderstand the "banking principle" (several versions do exist) and the "real bills doctrine" involved in some of them. Partisans of both schools still believe that they have already refuted each other. How could that controversy be finally brought to a successful conclusion? It is about time, after nearly 200 years. First step would be a complete publication of all their relevant writings. Secondly: All their arguments should be confronted. Thirdly, all needed additional arguments, so far left out, should be added to the debate. Fourthly: This might perhaps be best done via flow chart discussions on paper or with the aid of flow chart computer software on computers. - J. Z., 9.4.97. - DIGITAL "ARGUMENT MAPPING" OR SIGN-DEBATES & FLOWCHARTS OF ARGUMENTS.

CURRENCY REFORM OF THE GERMAN UNIFICATION: The one-on-one exchange rate of one West Mark for one East Mark (Ost Mark) was absurdly wrong and false. The wages thus paid in the same amounts in West Marks were no longer earned by the sale of goods and services. Most people in the West and in other countries refused to buy these goods and services, as being of inferior quality, while the wage and salary earners spent their West Marks, not earned by them but credited to them, not for the goods and services of Eastern Germany but, largely, on those of Western Germany. With many less sales for their own goods and services, many to most employees had to be dismissed. The unemployment benefits or dole which working couples got, paid in West Marks (D Marks), made them economically much better off than they were before, when earning only East Marks and so they did not mind becoming unemployed but rather went on an extended holiday through Europe. By rights they should only have been paid with claims upon the goods and services they had produced. That would have been a strong incentive to produce more and better goods and would have largely solved the sales problem for their output. As it was, they were, to a large extent, made unemployed and turned into welfare recipients. To the extent that their wages were thus subsidized and the production of largely unwanted goods and services went on, the collapse of the enterprises they worked in was only postponed. Their goods and services could only be sold at emergency sales prices. Moreover, for decades, the work ethics in Eastern Germany was largely absent. For instance, bookshops that were run in West Germany by 1-3 people, were run in East Germany by ca. 12-20. Inefficiencies in other jobs were probably corresponding. After all, all of production and exchange was bureaucratically run. (This was expressed in the saying: "They pretend to pay us and we pretend to work for them." This unification change-over was not a change over from a State socialist economy to a market economy but from one kind of State socialist economy to another kind of State socialism, although not an as totalitarian one. But in one respect statist centralism was even worsened: The former two central banks became one. The very limited currency competition between East Mark and West Mark was eliminated. The natural connection between earnings and labor was even more separated than it was before. Those employees, who continued "working", did no longer work to satisfy consumers among their countrymen but to receive hand-outs from the West instead of earned wages and salaries. Moreover, these additional payments in West Marks, also legal tender monopoly money, as recommended by the Communist Manifesto, led to an accelerated inflation of the West Mark. Could the East German products and services still be sold to anybody in the world market? Possibly to people in underdeveloped countries, if claims upon these goods and services had been issued and utilized, at free-market exchange rates, to purchase goods from underdeveloped countries, that could not afford the quality goods of West Germany and did not have the purchasing power in their own currency, at free -market rates, to buy these goods in West Germany, nor had they earned enough West Marks by sales the West Germany, to pay for imports from West Germany in West Marks. However, if they had been paid in East Marks, redeemable only in East German goods and services, and this at an exchange rate favorable to them, then they could have become customers for East German goods and services, leading to corresponding exports. These goods and services could have been sold - even if only at emergency or low quality prices, instead of remaining largely unsold. And the earnings thus achieved should have been shared as wages, salaries, returns upon capital and payments for suppliers. Productivity and earned wages and salaries would have fast risen from low levels to higher and higher levels. Capital could have been obtained in sufficient quantities with e.g. gold clause guaranties and tax and regulation exemptions, to utilize the numerous productivity increase opportunities from a low level of output to a standard high level of output. Naturally, employees would have had to pull their socks up, with the elimination of most bureaucratic featherbedding for them. Then they would soon have become as productive as the employees in West Germany. The "currency reform", as practised, prevented the natural adaptation and development of the East German economy. It amounted to State socialism, the mixed economy type, of the Western model. - J.Z., 1990, 27.8.02, 3.6.11.

CURRENCY REFORMERS: Most are like statist tax reformers, i.e., they just want to replace one monopolistic and despotic evil by another. - J. Z., 19.8.92. - INTOLERANCE & MONETARY DESPOTISM, MONEY REFORMERS, INTOLERANCE, TERRITORIALISM

CURRENCY SHORTAGES: They and their effects are largely denied by theorists of the Austrian School of Economics. They assume that the price mechanism will completely and immediately adjust to any reduction of credit and cash and thus render them completely harmless. Historical experience has refuted this notion, in practice, thousands of times. Ten-thousands of times, if one includes all the issues of emergency monies and trader's tokens, as well as the truck payment and truck payment tokens that occurred in monetary history and that are pretty well documented by coin and money collectors. - Generally, one cold simply refer to the proverbial "cursed hunger for gold" which does not indicate any saturation of the circulation with gold coins to mediate all desired exchanges. One could refer to the often complained about "greed for money", which would hardly exist if it were always easily to be obtained in any market, just by offering one's goods, services and labour for it. The phenomena of the several "gold rushes" did also indicate that the world was not yet sufficiently supplied with gold so that hundred-thousands braved hard circumstances and worked hard and often in vain for small returns, always hoping that, like a few others, they might finally strike it rich. Lotteries, gambling and betting do also indicate a kind of persistent currency famine and the lack of faith in most people that they can ever earn enough ready cash through honest and productive efforts - under the present circumstances. - J. Z., MFNL 3/4 & 8.4.97. - & CURRENCY FAMINES

CURRENCY: Whether inflation, deflation or stagflation or a temporary and relative boom prevails, it always means merely that the government or its central bank is still in charge of the controlling position in the economy and that, sooner or later, it can and will mismanage it even more, although, perhaps, otherwise than it did before. Mismanagement is inevitable in any system that is not foolproof but, instead, monopolistic, coercive and without free pricing or the discounting and rejection option of competing currencies, one that has no competition among different note issuers and no stable standard to measure its exchange media against it. It might try to impose circulation limits - that are ever increased, again and again. It might try to counter an evil like inflation with deflation - only to arrive, most of the time, at a degree of stagflation. It has not inherent limitations. It is, in this respect, like an unlimited government. To be fully limited, all government services and disservices and charges for them must be refusable by individuals. The same applies to the money of monetary despotism. It must become refusable and discountable like the monies of monetary freedom. All but the issuers themselves must be free to refuse it, as well as free to issue (print) and offer alternative exchange media and value standards, if they can find any takers for them. Only monetary freedom can provide sufficient quantities of exchange media and sufficiently stable currencies. To each the exchange media and value standards of his or her dreams and to each the government or free society of his or her dreams or choice! Central management of an exclusive and forced currency means mismanagement most of the time in most countries. Only accidentally and then only for short periods, does it hit upon the quantities and qualities of currency supplies that are correct, at least for its particular circulation channels. (Not necessarily for all of a national economy.) Others it cannot correctly supply at all. Imagine trying to supply everyone with sufficient fresh water from a single dam in a large country, or with sufficient electric power from a single electric power station. Similar difficulties exist for any centrally managed currency and it is high time that they are recognised and abolished together with the whole central banking as an imposition upon a whole country and all its population and all its trading. However, central banking would not have to be totally prohibited or outlawed. It would be enough to open it up to fully free competition or to reduce it to the members of a volunteer community that is only exterritorially autonomous. - J. Z., 14.12.92, 29.4.97, 9.9.01, 3.6.11, 3.8.11. - MONETARY MANAGEMENT & CENTRAL BANKING, MONETARY POLICY, MANAGED CURRENCIES, MACROECONOMICS

CURRENT ACCOUNT TRADING: Apart from the difficulties which monetary despotism can cause them, via sudden cash demands, when all due credits are demandable by the creditors in cash, regardless of the cash supply of the debtor by the monopoly issuer, all economic institutions should be able to settle all their current and due accounts against each other. (The losses due to the minority of unable or fraudulent debtors could be covered by the insurance fees that are part of the interest rates or through other special credit insurance arrangements. Extensive incompetence or corruption in the lending institutions, running up debts by the millions to billions, until these criminals are found out and stopped, cannot be covered by insurance. Incompetence or dishonesty among auditors cannot be insured against, either.) To each credit there would be a corresponding debt. To each debt there would be a corresponding credit. The total balance of all debts and all credits should come to zero. They should balance each other out - unless there were some mistakes make in the book keeping or electronic accounting. Furthermore, to the extent that clearing transactions are almost instantaneous, they do not suffer, as a rule, under a depreciating value standard. Moreover, if the law does not prohibit this, they would be free to adopt whichever sound value standard pleases them most. And with regard to the profit margins involved, in the average, for the participants, a slight variation or loss in the value standard, reduced to that fraction of the loss that occurs in the period of the almost instant or very short term transaction, comes to very little. Furthermore, to the extent that such clearing transactions represent real exchanges of goods and services (or of debts representing goods and services exchanges), the increased number of freely arranged clearing transactions does not drive prices up but merely indicates more trading, not "overtrading" or "over-production" or "over-consumption" and it cannot reduce the value of any value standard - merely by using it more often - in accounting and reckoning, - However, trouble will occur when some clearing accounts, so far reckoning in a sound gold weight clearing standard only, can suddenly be closed down by the creditors with their legal or juridical demand that debtors pay them in gold coin or paper legal tender cash, although the clearing system may not and need not possess even a single gold coin or gold bar or any legal tender cash. When not gold or cash redemption is demandable but merely e.g. a gold weight value clearing standard then, even when no gold coins or bullion were available in e.g. Germany, all such German transactions could still use the gold price of Zurich, London, New York or Tokyo for all their gold-clearing transactions. Any clearing system can be prevented from operating freely by the creditors being authorised to demand the pay-out of all or any of their clearing credits in cash, regardless of how much or how little cash is currently available to that clearing system or made available to it by its debtors. It is one thing to be allowed to pay in (acceptable and sound cash), if one possesses it, and quite another thing to be allowed to demand cash (sound or unsound cash), or, for debtors, to be obliged to pay cash, when the debtors do not possess it, cannot easily obtain it and can offer only clearing options. A clearing house or clearing bank should always remain free to settle all its debts by clearing ONLY. Only when it can no longer do even this, then it should be driven into liquidation and the creditors should then be free to try to extract whatever credits or cash they still can manage to get from the clearing house, not from its remaining debtors. For these debtors, again, should not be obliged to provide any cash - as long as they can still provide acceptable clearing options. Only if they cannot do this, either, should one be able to drive them into bankruptcy with one's cash or clearing claims against them. - J. Z., 11.4.97, 5. 9.02. - CHEQUE BANKS OR CLEARING BANKS

CYCLES, ECONOMIC: Economic cycles are largely the result of economic interventionism, especially monetary despotism. In former centuries, without a world market and abundant transport facilities, natural catastrophes could lead to local starvation. Now only economic, political and military or revolutionary interventionism can provide for such artificial poverty and starvation periods, keep them up and prevent their abolition, sometimes at the price of the lives of millions. Under true free market conditions, including full monetary and financial freedom, free trade, free property rights and free enterprise, economic cycles would largely disappear and natural catastrophes could soon be overcome for their survivors. Only price fluctuations would remain, e.g. corresponding to harvest or demand fluctuations, e.g. due to fashions. Nature as an enemy becomes more and more bearable. But when one's own government and foreign governments and all their military, education and tax slaves and all their bureaucrats are turned into enemies of peaceful and productive persons - then the situation of the latter becomes often desperate. Once they come to realize that monetary and financial freedom can be used as their Archimedean leverage, they could soon emancipate themselves from all internal and external oppressors and exploiters. E.g., then they could make their separate peace with millions of military slaves sent against them, setting them free to support themselves productively, within a short time, in the country against which they were conscripted, much against their will, in order to conquer it for their masters. Monetary and financial freedom ideas could be exported into the heads of revolutionaries everywhere, who do fight any despotic government. But first we have to come to generally realize that monetary and financial freedom options and techniques are rightful and valuable services and also an exportable or communicable ones. - J. Z., 4.12.92, 29.4.97. - CRISES, BOOM AND BUST PERIODS, INSTABILITIES, ­FLUCTUATIONS, IMBALANCES




DAILY BELL, THE, The Daily Bell - Keynes Versus Friedman - and Mises Goes Missing - - Cached - 5 Sep 2009 – Austrians of various colors wish for the return of true free market money, gold and silver, within the context of a free-market money ... - At least Hayek thought and wrote beyond these supposed limits or honest currencies. - J.Z., 25.7.11. - KEYNES, M. FRIEDMAN, MISES, HAYEK

DAILY BELL, THE, The Daily Bell - Should Public Banks Print Money Without Holding ... - - Cached - 14 Jun 2011 – WE ARE NOT TALKING ABOUT A GOVERNMENT STANDARD! We are actually talking about a free-market money competition. ...

DAILY DIG, THE: The Daily Dig -  - Cached - Like the swing of a pendulum, free market money (the money that the free market freely chose to accept) quickly flowed back into the region aiding the ...

DAILY PAUL LIBERTY FORUM: Are you for a 1) classical gold standard or 2) free-market money ... - - Forums - Daily Paul Liberty Forum - Cached - 5 Jun 2008 – Free market money will end up with gold & silver as its chosen currency ..... Free market money ("common tender") is far superior to gold as ... - RON PAUL, GOLD

DAILYMOTION.COM: Dailymotion - The importance of free market gold money - a News ... - › homenews & politicsvideos - Cached - The Euro crisis and gold as free market money. Watch the whole 21-minute video at- ...

DAILYRECKONING.COM: The Dark Side of the Credit Boom - - Cached - 23 Jun 2011 – Why Austrians call for a return to free-market money. Austrians maintain that international monetary affairs have entered a vicious cycle: a ...

DAVIDSON, JAMES ERIC: James Eric Davidson - Citizendia - - Cached - Topics covered in the free sample issues include sovereignty, free market money, gold mining, space technology, launch technology, new countries, ... - Identical with Jim Davidson? - J.Z.

DAVIDSON, JIM, American Chronicle | Interview With Free Market Money Guru, Jim ... - Interview With Free Market Money Guru, Jim Davidson of Vertoro pt 3-4. Mark Herpel. November 14, 2007. When building a larger and stronger online digital ... DAVIDSON, JIM, American Chronicle | Interview With Free Market Money Guru, Jim ... - - Cached - 14 Nov 2007 – He shares with me his ideas on free market money, ..... I think the main thing to do is bring the ideas of free market money to the business ... - Neither Jim's nor the interviewer's full name are mentioned in this Google abstract, indicating one of their frequent flaws. - J.Z., 25.7.11.

DAVIDSON, JIM, Black Market Gold News - - Cached - 1 Feb 2006 – Status Report on Free Market Money for the year 2004. The 2004-report is by Jim Davidson and is located here. Jim Davidson's 2005-report ... -

DAVIDSON, JIM, Black Market Gold News -  - Cached - Status Report on Free Market Money for the year 2004. The 2004-report is by Jim Davidson and is located here. Jim Davidson's 2005-report will be out in ...

DAVIDSON, JIM, Guru Jim - Pipl Profile - - Interview With Free Market Money Guru, Jim Davidson of Vertoro 3 of 4. Time To Buy More Gold ... With Free Market Money Guru, Jim Davidson of Vertoro 1 of . ...

DAVIDSON, JIM, Honouring SEK3, by Jim Davidson - - Cached - 8 Aug 2010 – For free market money has gone cryptographic. ... Here are some of the choices now available to you in free market money. ... - DIGITAL CURRENCIES, E-MONEY

DAVIDSON, JIM, Interview With Free Market Money Guru, Jim Davidson of Vertoro 1 ... - - Cached - This is an interview with Jim Davidson of Vertoro. Jim has been an ever present force in the digital currency world for almost a decade.

DAVIDSON, JIM, Interviews : DGC Blog - - Cached - 15 Jul 2011 – Jim is a widely known and read Free Market Money Guru. This interview is from January 2008, DGCmagazine's issue. ...

DAVIDSON, JIM, Jim Davidson, Free Market Money Guru : DGC Blog - - Cached - 4 Mar 2009 – Tags: digital gold - free market money - gold coins - jim davidson - vertoro. Jim Davidson, January 08 - Publish at Scribd or explore others: ...

DAVIDSON, JIM, The Abyss Also Gazes, by Jim Davidson - - Cached - 2 May 2010 – The free market money industry of 1996-2007 was destroyed by government action, but it is now ready to rise again. Entrepreneurs, inventors ... - It's a delusion to assume that it already existed in that period. - All monetary transactions were still limited to the governments forced and exclusive currency. - J.Z., 23.7.11.

DAVIDSON, JIM, The Coming Hyperinflation. News Link - Economy - Economics USA - The Coming Hyperinflation - by Jim Davidson 07-24-2011 - THE LIBERTARIAN ENTERPRISE - People have been anticipating it for some time. Now one can see it happening. And it looks like it is going to get worse. Entering the financial crisis in 2009, the Federal Reserve began creating money like nobody's business. The graph above ill …  Read Comments•- Make a Comment - Email this News Link - Send Letter to Editor - Only if the money-issue monopoly of central banking and its legal tender power are being continued. - From: FREEDOM'S PHOENIX hint, received today. - J.Z., 26.7.11.

DAVIDSON, JIM, The Monetary Future: Digital Gold Industry Overview - - Cached - 13 Jun 2009 – "Interview With Free Market Money Guru, Jim Davidson of Vertoro, parts 1-2, parts 3-4", Mark Herpel, American Chronicle, November 14, 2007 ... - Digital gold does not require a gold metal stock and a gold-metal redemption but merely freedom of contract for a gold-weight value standard and a free gold market. Then all the conversions into metallic gold, that anyone may wish for, can be fulfilled on any points of the free gold market, which does offer a much greater stock of gold than any government, central bank or private enterprise bank could hope to accumulate or would need to be able to reckon and account in gold weight values. - J.Z., 26.7.11. - DIGITAL GOLD, E-MONEY, DIGITAL MONEY.

DAVIDSON, JIM, The Original Free State Project, by Jim Davidson - - Cached - 20 Mar 2011 – His 2002-2007 venture in free market money and private stock exchange was destroyed by government action in 2007. ... FREE MARKET MONEY, MONETARY EXPERIMENTS, PRIVATE STOCK EXCHANGES

DAVIDSON, JIM, University Rationale Revisited, by Jim Davidson -  - Cached - 10 Jul 2011 – ... my programmer friends and I have made in free market money, to be effective at avoiding government parasites, thugs, and bullies. ...

DAVIDSON, Jim, The Individual Sovereign University Team - - Cached - ... toll road development, free port development, free market money, and private stock markets. Davidson is a world traveller and public speaker. ... - Jim Davidson? - Essential details are often missing in the short Google search results. - J.Z.

DAVIDSON, LAURA, Fractional Reserve Banking Is Indeed Fraudulent - by Laura Davidson. - "Posner criticizes Block for not understanding the difference between property rights and contract rights. Block has responded in an article called "Is Fractional Reserve Banking Fraudulent?" in which he rightly likens the FRB contract to selling a "square circle." Let us examine further where Posner's argument fails, and why the alleged FRB contract does indeed involve a logical contradiction." - Roy Halliday - Discussing the monetary question only upon such term leads the debaters to miss the most important points. Neither fractional nor 100% reserves are needed for the issue of a truly sound, optional, competing, refusable and discountable currency. - Without this cover or guaranty it can be kept mostly at par with its value standard, at least locally, or close enough to it. Only the issue will always be obliged to accept it at par, i.e., at its nominal value, expressed in one or the other value standard - and this only for whatever consumer goods or consumer services he or she or their local association, e.g. a shop association, have to offer for it. To me this trivial and irrelevant discussion reminds me of debates on whether we do have a soul and whether there is a heaven and a hell, a God or a Devil. - J.Z., 9.8.11.

DAVINCIJ15: Davincij15: FREE MARKET MONEY. - YouTube - Proof Davincij15 believes in free market money before ... - 35 sec - 26 Jun 2011 - Uploaded by davincij15 - Search terms "I don't support a gold standard" davincij15 "NOT looking for a gold standard" davincij15 "allow for monetary ... - GOLD STANDARD, NOT A GOLD BUG - More videos for "free market money" »

DAWSON, WAYNE, Combine the Power of the Internet and the Gold Standard - The e-gold system, which already exists, would be a suitable medium of exchange for a libertarian nation. - Roy Halliday, in section on gold. - To each his own. But let all other be free to decide about their own exchanges. - J.Z., 10.8.11.

DEATH PENALTY FOR THE REFUSAL TO ACCEPT DETERIORATED GOVERNMENT PAPER MONEY: Governments could not, of course, pursue the practices by which they forced bad money upon the people without the cruellest measures. As one legal treatise on the law of money sums up the history of punishment for merely refusing to accept the legal money: "From Marco Polo we learn that, in the 13th century, Chinese law made the rejection of imperial paper money punishable by death, and twenty years in chains or, in some cases death, was the penalty provided for the refusal to accept French ASSIGNATS. Early English law punished repudiation as LESE-MAJESTY. At the time of the American revolution, non-acceptance of Continental notes was treated as an enemy act and sometimes worked a forfeiture of the debt." - Hayek, Denationalisation of Money, p.28. -  Towards the end of a galloping inflation even such atrocious penalties do no longer suffice to enforce its acceptance, for then even policemen, soldiers and other public servants refuse to accept it for it they did, then they would still not have sufficient purchasing power to pay for all their survival needs. However, up to that point its acceptance can be all too widely and all too long enforced. - J.Z., 4.6.11.

DEBT CRISES: First, there is no serious doubt that the bankers of this country from 1973 on have made a lot of incredibly stupid loans. These loans are never going to be repaid. The debtor developing countries now owe a staggering $ 2 trillion." - Indemnifying the Debt - A Special Kind of Fraud, MULTINATIONAL MONITOR, Washington, July 86. - Firstly, not only "the bankers" are involved but State guaranties for foreign loans and often also straight government to government loans and these mostly on a mere paper money basis, i.e., repayable, if at all, in inflated currencies. Moreover, all the bankers involved are privileged, by special legislation, protected from competition and via governmental deposit insurance at least to some extent against the results of some of their own worst mistakes and dishonest actions. - What can one expect in such a situation? - Private and government loans to governments ought not to be repaid; since they are immoral investments in future tax slaves. In principle, they are morally no better than former investments in live slaves were, bought from African slave owners and then used, largely or mainly in the Southern States of the U.S., as enslaved plantation labourers. Alas, I have not heard many of their descendants protest against tax slavery, too. - Now consider the figure given, assuming it to be correct. I would estimate that at least 2, if not 4 billion people are involved in developing countries. Thus this debt comes to only $ 500 - $ 1,000 per head. If all these funds had been productively invested, then their repayments should not really have been very difficult, especially if spread over a number of years. But this would also have required, among other things, that their sales problems for goods, labour and services would have been solved via monetary freedom. They could have repaid their international debts e.g. with clearing certificates based upon their export goods. - J. Z., in old MFNL notes, & 30.5.97, 4.6.11. - INTERNATIONAL DEBT CRISIS, LOANS TO GOVERNMENTS, REPUDIATION OF GOVERNMENT DEBTS, GOVERNMENT GUARANTIES OF FOREIGN LOANS, FOREIGN AID, DEVELOPMENT, MONETARY FREEDOM

DEBT CRISES: In most cases it should be seen as a means of payment problem that requires, for its solution, monetary-, clearing- and financial freedom. - Usually, the per head debts, of a private or a public kind, are not so high that they would be really unpayable if all of one's capacity to produce wanted goods and services, including labour, could be easily sold. But if it could only be sold for a natural monopoly good like gold coins or the government's legal tender money …. - Payability of private debts is usually already calculated into them. Once public debts are considered to be too high by tax payers, they should not only see to the repeal of all compulsory taxation laws but also to the repudiation of all public debts. The only indemnification for all the losers in this case (the voluntary or involuntary "investors" in public "insecurities" or investors in tax slaves, which need not be any more morally recognized than investors in live slaves, would be one on an equal basis with all present tax-slaves, through their shares in the remaining real public capital assets. Investments in present and future tax slaves was, for all too long considered as acceptable, just as real slavery was for all too many centuries and as the "educational" and military conscription slavery still are, all too widely. They should no longer be considered as morally justified and enforceable assets or credits. (Compare the digitized PEACE PLANS issue 19c.) - Payments of debts with the own clearing-, goods- and service-vouchers would also be much easier and more honest in most cases than would their payment in exclusive and depreciated legal tender paper money. - The degree of the interest "burden" or "exploitation" involved in monetary despotism would also disappear with it. For turnover-credits it could be reduced to close to zero. For longer term credits on an agreed upon stable value basis, more secured through monetary freedom repayment options, it would also tend to become reduced. On the other hand, on the other hand: When there are many more highly productive investment opportunities and the total capital available for investments has not yet been greatly increased, then the interest rate in such cases would be rather high, with the creditors getting their fair share of these high profits of the debtors as well, as they should, for capital can be considered as "pre-done labour". However, full employment and the permanent boom conditions that would be made possible by monetary and financial freedom, would also increase savings and then their offers in form of investments would tend to reduce the interest rate. An interest rate reduction is also to be expected through credit insurance then no longer being subjected to the extra risks of monetary despotism. - But, at the same time, so many more highly profitable investments in innovations, including self-management innovations, would take place, that would they would drive up the free market interest rate for investments and this without becoming an unbearable burden to the debtors. If fixed interest rates were largely replaced by rates that "partnership earnings" or the rewards for "pre-done labour" (the capital provided) from the extra profits made by the debtors, then the difficulties in paying even high interest rates would disappear for them. The debtors, too, would then becoming rich through the productive use of borrowed capital. The public opinion image of "poor and exploited" debtors is quite wrong, not only in case of inflation, in which debtors are legally authorized by legal tender and money issue monopoly laws to exploit their creditors. - J. Z., 13.1.93, 4.6.11. - ABILITY TO PAY & INTEREST RATES, DIFFERENT RATES IN DIFFERENT SPHERES & UNDER DIFFERENT CONDITIONS, REWARDS FOR PRE-DONE LABOUR IN FORM OF CAPITAL.

DEBT FOUNDATION: All debtors, to enable them to pay all their debts more easily, should become free to offer in debt settlement standardised assignments upon their own goods and service delivery capacity. None should be driven into bankruptcy before this potential is exhausted. Creditors would not be obliged to accept them at par, as if they were legal tender, but remain free to accept them only at a market-rated or arbitration-determined discount, so that both parties can be satisfied with the debt settlement. The automatic legal and juridical assumption that a creditor may demand (if not, in our times. gold or silver coin or certificates to them, that "right" has already been abolished) government legal tender currency should not be upheld, unless it has been especially agreed upon in advance. Since creditors are also debtors at the same time, in many ways, no one-sided interest or privilege is involved here but just a facilitation of the payment and clearing process that was often interrupted by inherently unwarranted demands for cash which the old system of monetary despotism could not sufficiently and fast enough satisfy whenever the non-cash payment system did partly break down (often precisely through this wrongful cash demand) and thus, and quite suddenly, the demand for cash was increased, precisely when cash was already somewhat short. This could then lead rapidly to the almost total collapse of the non-cash payment system or to a governmentally imposed moratorium. Sooner or later the debtors' clearing certificates and those of other local ­providers of goods and services, all issued on convenient monetary denominations and covered and redeemable by their readiness to accept them at their nominal value, will become recognized as local currency cash, which is in some ways more risk free and more helpful to attain and maintain local boom economy conditions, than any governmental cash, especially when enough of these potential local issuers combine their capacities and issue and accept, between them, their own local currency. - There would also be exchange arrangements with other issuers of local currencies, so that the total acceptance opportunities for them would be increased. - These note exchanges would also rapidly indicate any over-issue by any of the issuers. For then the over-issuer could not offer as many of the notes of the other sound issuers in exchange, as the other issuers would have got from that over- issuer. - When all issuers remain sound issuers then these "stray" notes would tend to cancel each other out. - J.Z., 19.3.97, 4.6.11.

DEBT FOUNDATION: Since clearing is the essence of any monetary exchange and since all clearing is the mutual settlement of debts, any money has, in essence, a debt foundation. It does not need any other foundation but only a sound value standard chosen, contracted or provided by the participants. - J.Z., 28.5.95, 16.3.97, 4.6.11. - & CLEARING

DEBT-BASED MONEY UNDER MONETARY FREEDOM: For the purposes of this discussion one should distinguish between short-term debts arising out of goods and services exchanges and medium and long term debts that represent existing or hoped for capital assets or even debts imposed upon tax slaves, confiscated assets, forced loans etc. As an advocate of monetary and financial freedom and free exchange, one can advocate the monetisation of the former and the issue of capital securities upon real assets or expected capital value increases but not the monetization of wrongful income and capital claims against the victims of imposed tributes, called taxes. (However, as long as taxes are still tolerated, one should insist that these forced payments become as far as possible facilitated by the mutual clearing arrangements involved in sound tax foundation money, rather than extracting means of payment from other payment communities or imposing unlimited, monopolised, legal tender tax foundation money upon the whole economy as an exclusive and forced currency. The least unjust and least harmful tax foundation money would be one that would use a sound value standard and that would be optional, refusable and discountable in general circulation but would have full legal tender power towards the issuer, i.e., there and there only, compulsory acceptance at par with its nominal value, no matter how much it had become depreciated in general circulation. (That would constitute a strong disincentive for its over-issue and also lack of opportunities to engage in them, since the potential acceptors could then discount them.) - Monetary freedom promotes and utilises currency based on short term, privately, cooperatively and voluntarily undertaken debt and credit arrangements, arising out of the production and sale of consumer goods, also debts based on readiness to supply services and labour, as opposed to the so-called "asset currencies", based on capital assets, under the wrongful assumption that such valuable assets could also give currency value to currencies supposedly based upon them, instead of merely a capital market value to capital securities like shares, bonds, mortgages etc. - Under full freedom the suitable debt foundation money, e.g., shop foundation and railway or bus money, would drive out of circulation the bad debt foundation money, based upon capital assets for which there is no immediate and near future readiness to accept foundation but only a relatively small demand among some savers, with their currency and only a small reflux, in form of dividend and interest payments and current instalment repayments of the capital involved. To maximise the transferability of both, consumer goods and services and of unused or under-utilised labour, this kind of daily readiness-for-sale or shop foundation can and should be "monetised" with its own kind of competing currencies, ticket money, purchasing or goods vouchers, clearing certificates etc. To mobilise, as far as possible and desirable, the transferability of capital assets and their accumulation and repayment, for purposes of production and development credits, the corresponding financial securities should be freely issued and marketed, i.e., not among ordinary consumers, in most instances and for most of these securities. No supplier of consumer goods and services and of labour is OBLIGED, automatically, without any special contract, to give his values in return for the offer of any capital securities. What they want or are obliged to accept, are currencies that are suitable and useable immediately for wanted consumer goods, services and labour. These two sound valuables, running in different circulation channels, largely among different groups of the population, one facilitating daily turnovers of consumer goods and services, the other facilitating capital transfers, should never be mixed up or used interchangeably, as far as their issue and reflux are concerned. Only via voluntary subscriptions should shop currencies be exchanged for capital securities and through voluntary trades should capital securities be exchanged for shop currencies. Their issue and reflux are different. So is their circulation sphere, their purpose, their life span and the circle of their most common issuers and users, as well as their inherent cover. Both run all too often under the all too general term of "money" or "capital" but that does not mean that in theory and in practice they should be mixed up with each other. To use another analogy: The obligations arising from one night stands are different from those of long-term or life-long marriages, although both are appreciated by many and sex is involved in both types. It is true that capital assets are built by investing consumer goods and services in them, on long terms, and that those who are holding securities for them are ultimately and mostly turning them into shop currencies and spend them. If they do not, then their heirs will tend to do this. It is also true that capital assets are used for the production of consumer goods and the provision of consumer services. But the only currencies that can rightly and efficiently be issued as a result of the existence and use of these assets, are those based upon the consumer goods already produced and sold and the services offered ready for sale - provided both are also sufficiently wanted by local consumers. Their relatedness, similarity and exchangeability under certain circumstances, should never induce them to consider them as identical. Vive la difference - here, too. They are different tools for different purposes and outside of their purposes they do not have the same - if any value or usefulness - as they have for the purposes they were intended for. Under freedom, the currencies with suitable debt foundations will tend to drive out currencies with unsuitable debt foundations. E.g., a "currency" based upon the building value of a shopping centre complex, does not entitle the holder to a brick or other segment of that building. He would have to acquire all the "currency" securities based upon the value of that building before he could claim more than an interest payment: ultimately the ownership of his investment. With all this capital scrip in his hands he would, naturally, soon become the new owner. But fragments of that total would have no currency values for him or for many other people, to whom he might try to use them as means of payment, who do not want to invest in that capital. The savings and investment market is different from the daily production and consumption market. And so are their securities or transfer tickets or clearing certificates or property promises. - J. Z., 3.4.90, 30.4.97.

DEBT-FREE MONEY & INTEREST-FREE MONEY: Whoever thinks that he is able to provide "interest-free" should be free to try to establish such a service, at the own risk and expense and that of voluntary followers. But it should certainly not be a compulsory service for those, who disagree. The same applies to all proposals for "debt-free" money. I hold that the provision of exchange media and of clearing certificates, as well as of short-, medium- and long-term capital is a service worth its price and one that earns its price, as a rule or in the average. Also, that every exchange involves mutual debts and insofar no monetary exchange can be "debt-free". However, if with "debt-free" is meant that capital values or capital asset certificates should not be turned into money in form of currency, then I would agree. For such money does not assure its immediate or rapid-enough redemption in wanted or needed consumer goods or services. Interest or dividend coupons have, sometimes, been used as money towards those, who were under obligation to redeem them, soon. Likewise, tax anticipation certificates had tax foundation for due or soon due taxes. Thus their sound reflux and thereby their value preservation against a sound value standard was assured. Capital assets not immediately or soon enough due do not have a sufficient reflux to preserve the value of any monies issued upon them. Only barter transactions can be interest free. But to match-up people for such transactions can be rather laborious and thus costly, at leat in time and energy, unless the process is computerized. Thus there are, inevitably, transaction costs involved, or fees for such services involved. - J.Z., 25.4.11. - INTEREST FREE MONEY? BARTER, DIS.

DEBTORS & INFLATION: The debtors win by inflation. - Popular opinion. - "For the sake of completeness, one should also mention that they have also disadvantages from it. Those renting flats, for instance, have only an advantage for a limited time. At last the creditors, rightly, fearing a continuing inflation, are no longer prepared to lend their money for building flats on long terms. This is compounded by the fact that most tenants are at the same time also creditors. The employers, e.g., owe them wages and salaries. The advantages they derive as tenants are thereby neutralized, to a large extent. The debtor has the advantage only whenever he is still legally able to "pay off" his creditor in depreciated legal tender currency. In all his attempts in the future, to obtain a loan, it will become more and more difficult for him to obtain it, especially if value protecting clauses are not permitted. - U. v. Beckerath, n.d. - Rents and interest rates will also rise - and so will all prices for consumer goods and services which all debtors will need, as before. In a stagflation all do loose, obviously. - J.Z., 29.3.97, 5.6.11.


DEBTS & MONEY: Many people are strongly and at great length opposed to "money based upon debt". But there are hardly any other foundations possible for most kinds of money, Even gold coins or gold bullion owe much of their supposedly inherent values to the debts that had to be paid in finding, extracting, melting, refining and shaping them. Even they are ultimately only useful to pay debts with. Sound money is a convenient medium to pay debts with, in full. Contrary to prejudiced opinions it cannot be arbitrarily "created" out of thin air. Its issuers owe the holder something, legally or contractually. Thus money based on debt is not a curse or an abomination but rightful and a necessity. What must be conceded, though, that not all kinds of debts are suitable for transformation into money. Obviously, bad debts are not. Secondly, debts expressed in an unsound value standard are not. Debts that impose too difficult payment conditions are not, including really usurious interest charges, based upon an artificially and legally created money shortage. Debts that can be repaid with inflated money are not a sufficient foundation, nor are "asset currencies" that are supposedly "covered" by capital securities. The kinds of debt certificates that are suitable to base money issues upon, in combination with the inherently required "shop foundation", i.e., readiness to accept notes for daily needed and wanted consumer goods and services, is rather limited, to e.g., commercial bills or equivalent short term promises to pay for goods already produced and sold. The debt involved in tax foundation is also a rather doubtful debt, one based on the imposition of tributes or tax slavery. So there is some sense to the objection - if only it is not generalized but sufficiently specified. - How many transactions would take place if the debts involved in them would always have to be paid immediately and in full in some form of cash? And do not most forms of cash involve in their issue and reflux and in their real cover, debt-relationships and contracts? Medium- and long term debts are unsuitable as a cover for currency but at most can provide note holders some guaranties in case a note-issuing bank fails. Debts are required to achieve the counter-part to issues, namely a sufficient reflux for the issued currencies, a demand for them that reduces their quantity in accordance with the reduced availability of goods and services, which their payment for them has caused. A wide enough acceptance for an exchange medium can only be achieved if there are sufficient suppliers of wanted consumer goods and services under obligation to the issuer to accept it. They must be debtors of the issuers and thus under contractual obligation to accept the creditors notes, clearing certificates of shop currency, while they are, naturally, free to pay their debts with them to the issuer, their creditor, at par with their nominal value. To want to eliminate all debts from all money and clearing transactions is as wrong and irrational as wanting to abolish all money and all clearing as well as all credits, which always and obviously involve their counterparts in debts. - J.Z., 12.12.90, 5.6.11.

DEBTS INTO CURRENCY: There are many popular prejudices against turning debts into currency. They are based upon insufficient discrimination between various kinds of debts. To the extent that they do e.g. oppose the turning of governmental medium- or long-term debts or government "securities" into currencies, their objections are, as a rule, fully justified. To the extent that they opposed even the turning of the enforced debts of tax payers into tax foundation paper money, market rated, using a sound value standard, that had to be accepted only by the government at par with taxes stated in a sound value standard, opposition to such debt- or credit-base paper money was misplaced. It made life much easier for the tax slaves, although not as easy as would have the abolition of compulsory taxes or the competitive supply of all public services to voluntary members of all kinds of communities and societies. To the extent that they oppose the debts that are involved in any sales of anything, mediated in money or clearing tokens, they are uninformed and quite wrong. There is nothing wrong for a debtor to turn his debts into a currency, at least for clearing purposes or limited local circulation, to the extent that he has goods, services or labour to offer, at market prices, which are in local demand. Then he could offer assignments upon these, in money denominations, to the creditor in payment - as long as the creditor would not be forced to accept them at par. At some or the other discount rate the creditor would most likely find it profitable for him to accept the debtor's transferable notes, in money denominations. The alternative, especially in times of a deflation or credit restriction, of creditors insisting on being paid in the "coin of the realm" or in the monopolised and forced currency of the government, might mean for them getting nothing at all or only a small fraction of their credit returned to them, with the debtor being driven into bankruptcy. With the debtor still being able and willing to supply goods, services and labour, any sensible creditor would rather have his debtor stay in business and pay him off, even if only belatedly or in instalments and with extra interest for late payment, or, alternatively, when due, in the debtor's own clearing certificates which the creditor would know how to use or could soon find out how to use, if not directly against the debtor then against any debtors of the debtor. No exclusive means of payment should either be forced upon a creditor, at a nominal value, nor demandable by the creditor, regardless of how scarce it is - unless the debtor and creditors have contractually obliged themselves to do so. Even then it should be considered as a speculative dealings in futures: the selling of monopolised currency before it is earned. Thus hedging or a withdrawal premium should be agreed upon. - Even the rare metal coins would be of little value to their owners, in most instances, if they could not be redeemed in ready for sale goods and services. If a creditor would find a debtor's clearing certificates not acceptable enough, even at a considerable discount, then he should suggest to the debtor that he gets them discounted at a free local bank for its local currency. Such a bank would be in the business of discounting personal short-term securities, representing immediate and near future readiness to accept them in payment, and such an issuer should know who, among the local members, could use the debtors IOU's in payments against this debtors, better than a particular creditor of the debtor would. Thus for the debtor there would be a personal issue of money and clearing tokens and a discount option, using the greater issue and circulation potential of a local bank of issue, e.g., an association of the local shopping centre members. The convertibility obligation of the debtor for his notes or securities would only consist in his readiness to convert them at par into his goods, services and labour, any time, during business hours, no matter who presented them. Any honest and capable debtor would always be able to do that. Most note holders do not want or need any other convertibility. One might also assume that a number of debtors in any locality would be in the same situation: Insufficiently supplied with government paper money or coins or any other currency that already circulates widely. Then these debtors could combine and mutually guarantee their issues, by issuing their debt certificates, in money denominations, free market rated, using a sound value standard, and with all the other issue precautions of sound issue centres, to temporarily circulate their debts in much more acceptable common notes. In other words, they could also form a bank of their own, to improve their ability to pay their debts, by accepting these debt certificates in all payments due to them. No creditor should be allowed to drive any debtor into bankruptcy before all such clearing and payment options are exhausted. If he had, e.g. drunk or gambled or speculated far beyond his capacity to give values in return, immediately or soon, then he should be driven out of business and his function should be taken over by more sensible businessmen, tradesmen or professionals. Monetary freedom will not be able to help dishonest, incapable, negligent, lazy debtors or frauds and con-men out of their self-caused financial difficulties. Nor is it capable of monetising government medium or long term debt certificates into sound currencies. At most in can anticipate the government's near future tax grab, allowing the government to issue tax foundation money upon it, without legal tender power and a monopoly status and reckoned in a sound value standard. Some debts are rightful and necessary, some are wrongful and unnecessary. Only some of the former could and should be monetised. - ASSET CURRENCIES, REFLUX, SHORT TERM COVER, CLEARING COVER, CLEARING. - J. Z., 22.6.91, 2.5.97, 3.8.11.

DEBTS: Debts must be normally - that is, reserving exceptional cases due to passing circumstances - paid in goods or services. - Prof. Edgard Milhaud, A Gold Truce, p.46. (Or in certified claims to them. - J.Z., 5.6.11.)

DEBTS: Having a debt that is payable in the own notes or clearing certificates, i.e., lastly in the own products, services or labour, is very different from being forced, by law, to pay one's debts in the notes issued by others, which one had to earn first. If at least these others were competitively supplied with notes or free to issue them themselves, then the situation of a debtor would not be too bad but he still would not be monetarily quite independent or quite free to clear. His situation becomes very different and, sometimes, desperate when the notes of others are monopoly money notes, issued only by a central bank, subject to its policies, interest rates and manipulations. Any central bank may officially AIM at supplying each subject with sufficient and sound exchange media for his purposes or PROMISE that it would do so, but that does not mean that it is ABLE to do so or would actually follow such a legally declared program. Politicians and a monopoly post office may AIM at providing all kind of good, wanted and competitive services, but that still does not mean that they are ABLE to do so. Obviously, a Minister for Health cannot supply every individual with health nor can a minister for economics supply us with wealth or a minister for employment, supply us with full employment. And the transport services that a minister for transport services could supply would be limited to giving lifts to friends or hitchhikers or, e.g. to a taxi or bus service that he might run privately, or, at last, "generously" allow to be established. Ministers for trade have no goods or services to trade with. Who would buy their knowledge and skills in an open market? At most they can officially or unofficially trade with favours or disfavours. And no minister for defence or deterrence has so far delivered peace, security or quite rightful, effective and affordable defence in the long run. At least governments were not cheeky enough to appoint a minister for peace, too. - So why should we assume that any central bank CAN do what ALL central banks ASSERT to be able and WILLING to do - but which, as yet,, they have never delivered? - - Debts in inflated money are not as much of a burden to a debtor as are debts payable in notes of a deflated currency. For the creditor the reverse applies: He hates being under the legal and juridical presumption to have been fully paid when he has only received a nominal payment of his debt in a much depreciated paper money. On the other hand, he is unfairly advantaged, during a deflation, when a debtor has to pay up the full nominal amount of his debt and this in money that has been severely deflated, i.e., whose purchasing power, on the deflated market, has been greatly increased. - - The debtor's position is often rather unsatisfactory, too, when both, inflation and deflation occur at the same time, as happens always more or less under a forced and exclusive currency - and sometimes quite obviously and severely so. He could pay off his creditors more easily, in inflated money, if only at least part of the economy would not be deflated at the same time, so that he may not be able to earn enough of the stag-flated currency. The most severe stagflation occurs towards the end of a galloping inflation, when goods and service prices have raced far ahead of the capacity of the capacity of the note printing presses. - Debtors and creditors can be fully and easily satisfied only once both are quite free to clear, including the freedom to issue, accept and use notes and clearing certificates in convenient denominations and both are also free to choose a value standards they do trust and free to refuse or discount any exchange media or clearing certificates that they have not issued themselves. - J. Z., 19.5.90, 27.4.97, 5.6.11, 3.8.11. - DEBTORS & THEIR ABILITY TO PAY OFF THEIR DEBTS, MONETARY FREEDOM, MONETARY DESPOTISM, FREE BANKING.

DEBTS: No collective debt – unless it is individually approved! – J.Z., 14.4.89. - GOVERNMENT DEBTS, PUBLIC DEBT

DEBTS: The borrower is servant to the lender. - Bible, Proverbs. - The lender is dependent upon the borrower! - J. Z., 12.1.82. - One of the few Jewish jokes which sticks in my mind ran somewhat like this: Isaac: What is the matter Abraham? You look as if you haven't slept! Abraham: That's true! Tomorrow I must pay a large debt & I can't. So I can't sleep. Isaac: The solution to your problem is VERY simple. Just go to your creditor, right now. Tell him that you cannot pay. Then he can't sleep - while you can! - Alas, he did not give him good advice on how to best pay his debt via personal clearing certificates. - By the way: According to Ulrich von Beckerath, the TALMUD is the only religious book that recommends honesty in currency dealings. A debtor is supposed to repay his debt in the same kind of full value coins that he has been credited with, or in coins of the same metal value. The only exemption that would release him from this religious obligation would occur if his own debtors had cheated him with their coins, thus making him correspondingly unable to pay. - Alas, the monetary system of modern Israel is just another form of monetary despotism or central banking. SOME of the few Jews who are bankers may be more skilful than other bankers are in dealing with MONOPOLY money. But I do not know of any who, today, are clearly advocating full monetary freedom. I doubt that Dr. Walter Zander is still alive and Ayn Rand and Murray N. Rothbard, for instance, were just fractionally favouring monetary freedom, still being bugged by the traditional gold bug. - Marx knew very little about monetary freedom and became for a long time the most successful advocate of monetary despotism - as a means to establish a totalitarian dictatorship of an elite over the proletariat and all its other victims. Nevertheless, most conservative anti-communist and anti-socialists could think of nothing better to do than copy his proposals for central banks of issue with an exclusive monopoly and legal tender powers. - Monetary wisdom isn't a matter of race, nationality or religion or ideology, as a rule. But lack of it leads o much racism, nationalism and religious or ideological fanaticism and their consequences. - J.Z., 16.5.97. - After his death an upon a suggestion by me, his two sons created a special website for him as a memorial. Most of his writings can be found there: - - At least some of his files are also on - J.Z., 3.8.11.

DEBTS: When you owe your bank manager a thousand pounds – you’re at his mercy. When you owe him a million – he’s at your mercy.” – Quoted on page 203 in: James Follett, Dominator, Arrow, 1999.

DEFENCE & MONETARY FREEDOM: Georg Holzhauer's German book and essays of 1938/39 on cash payments in occupied territories, which I micro-fiched in my PEACE PLANS series, came close to a work on this subject. So did a book manuscript by Ulrich von Beckerath on the proper financing or genuinely liberating revolutions. It was burnt in an air raid on Berlin, Nov. 1943, together with most of his library. Dispersed thoughts on this subject can be found in U. v. Beckerath's correspondence, partly micro-fiched by me and partly on The inflationary use of centralized note issue banking and legal tender powers may be the best way to finance an aggressive war but it does certainly not provide the best finance for a successful defensive war against a despotic regime. With full monetary freedom any number of refugees, deserters from such an enemy regime could become productively employed. Moreover, anticipating the privatization of all capital assets of it and arranging the distribution of these capital assets among the victims of this regime, just claiming a brokerage charge and anticipating this in a capitalistic way, through "freedom bonds", can come to utilize these assets for the rapid defeat or overthrow of a despotic regime. All such alternatives may still have to be sufficiently described and published. - J.Z., 5.6.11, 3.8.11.

DEFICIT FINANCING: The essential point about it is that it is NOT financing but offers merely the pretence of financing. Austrian creditors coined a joke on this: "Governments never go bankrupt. Only their creditors do." When a government issues securities and offers them for sale, to cover its deficit, then it offers investments in tax slaves. Since slavery is wrong, so is this. If it makes forced loans, then it confiscates, it does not finance. If it increases taxes, it levies a tribute, i.e., it steals or robs, threatening you with its armed might if you refuse to pay up and resist its collection procedures. If it issues its monopoly and forced paper currency beyond the point of voluntary acceptance at par with a sound value standard, then it confiscates and robs to that extent, too, with is notes then being no more than requisitioning certificates. Under monetary freedom and its competition, voluntary acceptance, and free market rating of currencies, the money of monetary despotism would be widely refused, except by a few remaining tax "debtors", whose tax payment the government could still enforce. - J.Z., n.d. & 3.5.97, 6.5.11. (Objectively and morally, no one "owes" any taxes unless he is a voluntary member in a taxing community, free to drop his membership and thus to leave its financial arrangements or subscription charges, when they become too burdensome or useless to him. - J. Z., 13.9.02, 5.6.11.)

DEFICIT SPENDING: One might as well say that the deficit in the budget of a bank robber causes bank robberies. - J.Z., 24.3.97. - BUDGETS DEFICITS CAUSE INFLATION

DEFICIT SPENDING: The only cause of inflation is deficit spending." - J. Almblad in INQUIRY, 10 Sep. 79. - If the government succeeded, in case its budget is not balanced, to induce its subjects to buy sufficient government securities or could even induce foreign investors to do so, then it could cover its budget shortage in this way, without inflation. - It could also levy a forced loan or increase taxes, as it has done so often in the past. However, it often finds these opportunities to have political penalties, while few voters have ever condemned it for abusing its monopoly money issue and legal tender power. So it often resorts to inflation for which it finds all legal and institutional preconditions provided. Without these preconditions it could not inflate its paper money, not even if it had the worst possible intentions. Thus these preconditions are the real causal factor, not the flawed motives of the "big spenders". Many of them have even persuaded themselves, not only their voters, that they are doing "good works". - The term "spending" is also misapplied here. The government is living beyond its means, since all are obtained by taxation or other robberies, including inflation. So, in "deficit spending" it imposes simply another robbery upon the whole country, all its people, the inflation tax upon the money circulation, which depreciates its value. Since few comprehend it, few do object to it and when they begin objecting then they usually blame someone else than the government and its monetary despotism, which allows it to abuse this monopoly and power. - If A owed something to B and could not pay out of what it had previously robbed from B & C and then proceeded, via an excessive note issue, of its monopolised and forced currency, to rob B & C, to enable it, with the loot, to "pay" B., should we call this then "spending"? - Is it right to call a bank-robber's use of the stolen money "spending"? If so, then what does the bank engage in regarding the stolen money? Negative spending, while that of the bank-robber is positive spending? One can rightly spend only what belongs to oneself, i.e. what one has rightfully earned or otherwise honestly acquired, in voluntary transactions, e.g. as a gift or inheritance. A government's distribution of its loot is merely the completion of its act of looting. We should not honour ANY of its tribute gathering and distribution of its loot to some of its favourites or creditors by calling it "spending". Proprietary terms for honest actions should not be used for goods or money not rightly acquired or issued, i.e., not for dishonest and coercive actions. The terms of voluntary transactions should not be applied to monopolistic and coercive ones. - J.Z., 20.5.97. - & INFLATION

DEFINITIONS, QUOTES, NOTES, COMMENTS ON MONETARY FREEDOM & FREE BANKING: A short list of them, alphabetized, should, ideally, come to precede the A to Z and book-length compilation, which is waiting for your corrections and supplementary entries, all of them are not copyrighted by me. - J.Z., 3.8.11.

DEFINITIONS, TERMINOLOGY, BASIC MONETARY FREEDOM CONCEPTS: Those considered, so far, to be accurate or close to accurate, to be especially marked, somehow. However, refutations or supposed refutations, corrections and improvements should be invited for them, too.

DEFLATION & CHEAPNESS: Deflation and cheapness are completely different concepts. Deflation is caused exclusively from the money side, cheapness exclusively from the goods side. - Ulrich von Beckerath, 25.1.52. - CHEAPNESS, PRICE REDUCTION FROM THE MONEY SIDE AS OPPOSED TO THOSE FROM THE GOODS SUPPLY SIDE.

DEFLATION & UNEMPLOYMENT: Under freedom of note issue and freedom to clear, all deflations and their mass unemployment can be easily and very fast prevented or ended. A historical check of this assertion is possible. One will always find deflations associated with this monopoly - and ignorance of, disinterest in and prejudice on monetary matters, which sometimes can take the place of legal prohibitions. But neither state universities nor parliamentary committees nor pressure groups of the unemployed and businessmen are so far likely to undertake such research, although, objectively, they have do have a vested interest in it and should act upon it. How could one motivate them to promote such research or undertake it themselves? That should be easier than trying to induce them to compile and read shelves of books and papers discussing the monetary freedom options. Seek and you shall find. But how can one induce other to seek? Businessmen might be motivated by pointing out to them how vast the amounts are, that they might issue, in combination, in short-term money tokens, based on their delivery capacity for goods and services and how much this could promote their sales. It would be in the interest of any politician trying to become popular, to fast to unearth and prove that connection. But, do they have the intelligence to try this path towards success in their career? - J.Z., 3/97, 6.6.11, 3.8.11.

DEFLATION, DEPRESSION, RECESSION, CRISES: The moderation of inflation was accompanied by a recession that raised unemployment to 6 %. This was unavoidable: I know of no nation at any time that has been able to stop a serious inflation without a recession, and generally a severe recession. - NEWSWEEK, 15.3.71. - Perhaps it is usually unavoidable under the present system - i.e., as long as free banking and its automatic monetary adaptation are outlawed. Interferences with the free market just don't work smoothly. - J.Z., n.d. - Compare my Sep. 1976 16 pages booklet: THE SOFT OPTION, in PP 19b, now attached to my main website. - J. Z. - See: HARD OPTION, SOFT OPTION, DIS.

DEFLATION, INFLATION & STAGFLATION: Inflation and deflation are opposites and thus cannot coexist in the same country and at the same time. - Popular opinion. - In stagflations they do. Stagflationary effects are found in many galloping inflations but are usually not recognized as such. E.g. when cashiers line up before a central banks opens, so that they can act as fast couriers for the wage payments required for daily wage payments - fresh from the printing presses. - Deflation and inflation are insofar not opposites as both are despotic interventions with payment, clearing, credit and value standard measurement agreements. - J. Z., 29.3.97. - During the big German Inflation of 19144-1923, in the end most printing shops in German were busy printing notes and could still not keep up with the demand for them, since prices jumped ahead of the note printing capacity, in the expectation of further depreciation. In the end the printing costs came to about 48% of the rapidly decreasing purchasing power of the notes. Employees were given time off in the middle of the day, so that they could spend their earnings in fast inflated paper money before this money had still further depreciated. - J. Z., 31.8.02. - One joke about these times: If you left a basket full of this paper money for a moment unwatched, then you might find the money dumped out of it and only the basked would be taken stolen! - J.Z., 6.6.11. - DIS.

DEFLATION, THEORIES They are so numerous that all should be listed - and confronted with the facts and contrary theories as far as is possible, in order to enable the patient researchers to finally sort the wheat from the chaff. - J. Z., 19.3.97.

DEFLATION: A deflation policy, undertaken in an attempt to undo the damage done by an inflation, is like running over a person with a car and then, to restore him to health, to reverse over him. - J. Z., 15.3.97.

DEFLATION: All the wrong and misleading statements on, explanations and cures of deflations, depressions and mass unemployment and of all their euphemisms, like recessions, that have been proposed or tried out, should be sufficiently recorded, in alphabetized listings, with the best evidence and arguments against them that have so far been found. It was, I believe in the German "Zeitschrift fuer das gesamte Kreditwesen", in the fifties, that an article appeared that listed over 140 different crisis theories or hypotheses. With world-wide under-employment and unemployment having reached by now ca. 1 billion people directly or indirectly, at least if their dependents are included, it seems to be high time that we should take it seriously enough for such a collaborative effort. Otherwise we might still be stuck in the ignorance and prejudices that cause depressions, deflations, stagflations, recessions and inflations - in another 100 or even 200 years. (In Henry Meulen's THE INDIVIDUALIST, there is a reference to two estimates of the total number of crisis theories.) - J. Z., 29.3.97, 6.6.11, 3.8.11.

DEFLATION: Deflation is the worst possible alternative to inflation and this makes some degree of inflation acceptable. - Popular opinion. - It assumes also that there are only the hard options: Inflation or deflation, and that both can be ended only in "hard" ways and not in "soft" ways. - I would rather say that a monetary system which continuously fluctuates between inflation and deflation and which often has both together, in stagflation, is unacceptable for moral and rational people. - J. Z., n.d. - Compare my digitized essay in PEACE PLANS 19c: The Soft Option. - J.Z., 6.6.11. - DIS., PREJUDICES

DEFLATION: Deflation, according … is a condition in monetary transactions in which there is a shortage in typified and standardised exchange media (so that workers have to be dismissed because banks cannot or will not advance the means of payment for their wages) and at the same time, nevertheless, typified and standardised exchange media (e.g. typified clearing-cheques and goods warrants etc.) cannot be issued because a certain authority, e.g. a central bank, has the monopoly for note issues.  -  Ulrich von Beckerath, 25.1.52.

DEFLATION: Every price rise can be safely and sufficiently countered by reducing the note circulation." - Popular point of view. - You might as well say that when you have become obese by over-eating that you can then simply reduce your weight by eating less. Ask those, who do have that problem, whether they find it easy to adopt this simple advice. Also ask a unionist whether he is as ready to accept a wage reduction as a wage increase and a shop owner, whether he as readily decreases his prices and as fast, a she is ready to increase them. - J.Z., 24.3.97. - And if you have the misfortune to drive over and kill someone, try to revive your unfortunate victim by reversing over him! - Rejuvenation is still largely only a dream and a hope. - Not all processes are easily reversible. - J.Z., 30.8.02. - Try to empty a tube of toothpaste and then to full it again with the paste you had discharged from it. - Or try to reverse any kind of excretion, whether sweat, urine or faeces. - All the errors, prejudices, flawed doctrines, false assumptions and conclusions in this sphere are very numerous and diverse - and need a systematic and persuasive refutation, offered in a special encyclopaedia. - J.Z., 6.6.11. - DIS.

DEFLATION: The facts of currency shortages, namely mass unemployment, sales difficulties, bankruptcies, are too numerous and extensive to be fully deniable. While they cannot be fully overcome by any system of central banking or monetary despotism, except, seemingly, for very short periods, in which degrees of deflation still persist, as evidenced by extensive barter exchanges, for thousands of years under exclusive coin currencies, even the worst kind of deflation could be freely overcome by freedom for sound note and coin issues, which do not require any rare metals, except as mere value standards, for those who choose them as such. In the absence of the note issue and coinage monopoly and their legal tender powers (compulsory acceptance, combined with a forced and nominal value), good alternative exchange media, clearing certificates, clearing accounts and value standard would be free to drive the inferior and the bad ones out of circulation, simply by free people preferring to accept good monies and refusing to accept bad, flawed or doubtful monies. – J.Z., 27.5.05, 5.10.10. - CURRENCY FAMINES, CURRENCY SHORTAGE, CREDIT RESTRICTIONS, MONEY SHORTAGES, FALLING PRINCE LEVELS CAUSED FROM THE MONEY SIDE, EXCLUSIVE CURRENCIES THAT PREVENT A SUFFICIENT SUPPLY OF SOUND EXCHANGE MEDIA & VALUE STANDARDS & BRING GRESHAM’S LAW INTO OPERATION, WHEREBY FORCED BAD CURRENCIES ARE ALLOWED TO DRIVE OUT GOOD MONIES.


DEMAND & PRICES: Demand must be held down so that prices don't go up any more. - Popular opinion - Demand and prices are best and also self-controlled when governments are kept away from all note printing presses and monetary issues and value standards except those few associated with its own VOLUNTARY & COMPETITIVE exchanges that optional governments (only exterritorially autonomous, for their voluntary members) might still manage to sell to their willing victims or customers under CONSUMER SOVEREIGNTY that is extended to GOVERNMENT SERVICES as well. - One cannot hold a fictitious, fraudulent and forced monetary "demand" down when territorial governments remain constitutionally, legally and juridically authorised to print and force upon unwilling creditors their forced and depreciated currency via an issue monopoly, associated with legal tender (forced value and forced acceptance), upon a whole population that is thus victimized, i.e. when government alone is removed from all market restraints and this in the most important economic sphere, upon which all the others depend. - It is absurd to try to discuss this topic apart from the question of monetary despotism. - Demand control is as absurd as price control. Both amount to people control - and to uncontrolled controllers. Who guards the guardians? The guardians of the currency are out of control - precisely because they were appointed as exclusive guardians for currencies that should never be exclusive and enforced. - Hold down the issuers of exclusive and forced currencies. Repudiate all such issues totally - as an essential part of a general tax strike against our overlords - the greatest criminals and parasites. - J. Z., 2.4.97, 8.6.11.

DEMAND & SUPPLY: demand regulates supply.” - Louis F. Post, Social Service, New York, Wessels & Bissell Co., 1910, p.104. – Undoubtedly, but what, in a monetary economy, does regulate the monetary demand, i.e. the supply of exchange media and of clearing or non-cash payment options. That aspect is all too often neglected. Especially by advocates of central banks and the masses of those, who take the money supply for granted, assuming that it would already be as rightful, sound and competitive as it should be. – J.Z., 17.8.10.

DEMAND & SUPPLY: individuals virtually make the things they buy with the money they earn. … Let people stop buying some commodity, any artificial commodity you can think of, … wouldn’t that commodity disappear from the face of the earth? So much of it as had been made in expectation of purchases, would linger awhile, no doubt, but its reproduction would stop almost upon the instant. Who causes it to exist, then, but those, who demand it and give service in exchange for it? - Louis F. Post, Social Service, New York, Wessels & Bissell Co., 1910, p.101. – In this respect the consumers or customers are the employers of the producers. – However, both do need for this sufficient sound exchange media or clearing options. – On page 101 Post says himself: “In reality, every one who does what others want done is employing others to do what he wants done.” – “The persons who give work both to an employer and to his hands, are the consumers of his goods. If they stopped consuming today, your benevolent employer would have to stop “giving work” tomorrow. It is their desire for consumption that causes their demand, and their demand that sets in motion and keeps in motion the process of supply. – Ibid, p. 101. – Under quite free division of labour and free exchange, including the provision of sound exchange media and value standards or clearing facilities, we do all work for and employ each other and profit from the labours and ingenuity and enterprise of others as well as from our own- BUYING ALSO AMOUNTS TO PRODUCTION. SALES ARE NEEDED TO UPHOLD PRODUCTION & SUFFICIENT SALES REQUIRE A SUFFICIENT SUPPLY OF SOUND EXCHANGE MEDIA ETC. WE MUST BECOME FREE TO PRODUCE, BUY AND SELL EXCHANGE MEDIA AS WELL OR TO CLEAR FREELY AND THIS WHILE USING A VALUE STANDARD OF OUR OWN FREE CHOICE. – J.Z., 4.8.10 – EMPLOYERS & EMPLOYEES, SELLERS & CUSTOMERS, PRODUCTION & CONSUMPTION, TRADE, FREE EXCHANGE, MONETARY EXCHANGES

DEMAND & SUPPLY: Reciprocal demand in the social service market must be effective in the nature of things, unless arbitrary obstructions intervene. - Louis F. Post, Social Service, New York, Wessels & Bissell Co., 1910, p.124. – MONETARY DESPOTISM & CENTRAL BANKING VS. MONETARY FREEDOM & FREE BANKING.

DEMAND & SUPPLY: The character and volume of the demand for social service persistently tend to determine the character and volume of the supply of individual services. If not obstructed, this tendency will produce a constant equilibrium of demand and supply, There is plenty of proof for this conclusion and there is no escape from it. - Louis F. Post, Social Service, New York, Wessels & Bissell Co., 1910, p.104. – Indeed. And the supply of sound and competitive currencies or clearing options determines the monetary demand for goods, services and labour (social services in Post’s terms). To the extent that free and efficient clearing takes place physical exchange media become superfluous. Free clearing, using sound value standards, can never inflate prices, neither can exchange media that are not monopoly monies with legal tender power and that are thus competitively issued and do use sound value standards. – J.Z., 16.11.09, 17.8.10.

DEMAND FOR LABOUR UNDER MONETARY FREEDOM & MONETARY DESPOTISM: The demand for labour, services and goods should at any time be as large as are the accumulated real values, immediately available for sale or very soon, mainly daily wanted labours, other services and consumer goods. Not only the immediate offers are important but also the short-term possible and likely offers (e.g. the consumer goods that can and will soon be delivered to restock the shelves) - for the holders of money do not intend to spend all their holdings on a single day, at least not as a rule. Some of their consumption requirements are not as urgent and thus purchases can be postponed and some shopping money is thus held back. But the two sides, the money side and the goods side (including readiness to work productively and to provide wanted services) should be kept in a rough balance, indicated by the par rating of such exchange media. This balance cannot be optimally achieved and maintained by an outside issuer and first spender of newly issued notes and administrator of its fast enough and sound reflux, least of all by a central bank of issue for a whole country, one with a money issue monopoly and legal tender power for its currency. Instead, it is best entrusted to the local providers of goods, services and labour and to local the issuing centres, which they do form and run for themselves and their potential acceptors. They know their assets bests and their limitations, also the characters and flaws of all their members and potential borrowers. Thus they are least likely to make careless mistakes with their issues. A distant centre for all note issues could only prescribe general rules for the creditworthiness of a local producer or businessman. The local shop-association bank would KNOW its debtors and customers and apply different rules and better knowledge of local conditions and local credit applicants. Apart from that it would enjoy the benefits of currency competition, voluntary acceptance (for all but the issuers themselves - and, by contract, their debtors), stable value reckoning, free market rating against the self-chosen and accepted value standards, combined with full publicity for all details of the issues. It would also enjoy the instant note-testing facility for local note holders or potential local note recipients: They would simply have to bring a note, whose value they do doubt, or are not quite certain about, to the nearest shop and ask whether it would accept the note at all and at par. They would not depend upon foreign exchange markets, open market policies of a central bank, trade and price statistics to find out, somewhat and often belatedly, whether their currency has been depreciated. Moreover, the issuers and their acceptors would not have to depend e.g., upon the successful­ accumulation of a large enough gold reserve to give their private paper notes a par value with gold weight units, i.e., to make them, for payment and clearing purposes, as good as gold. All the ready (or soon ready) for sale goods, services and labour could be turned, privately, competitively and cooperatively, into effective monetary demand (up to the limits set by market rating and voluntary acceptance), thus abolishing mass unemployment and sales difficulties and preventing most bankruptcies and establishing a steady boom economy, one that would know no other economic crises than those produced by natural catastrophes and those artificial ones, politically and territorially enforced upon a whole population. Free and competitive issues of optional and market rated additional notes, best produced, issued, lent and then reclaimed by the providers of wanted goods and services, including labour, would lead to more sales and employment, more savings and investments as well, but only indirectly and in consequence, while avoiding inflation, deflation and stagflation. It would also help to end or prevent both, natural and political catastrophes (like wars, civil wars, revolutions and terrorism). It would help to prevent some natural catastrophes, .e.g. by flood, fire and drought prevention measures, easier to finance as a result of extra capital savings following monetary freedom. Sound insurance systems could cover the losses of natural disasters that could not be prevented. Political stability and freedom would also be directly or indirectly promoted in this way. Even military security could be greatly improved, e.g. when whole armies of deserters and prisoners of war and millions of refugees could then be rapidly turned into free producers and consumers. - Furthermore, just try to imagine what effect voluntary taxation (or subscription to competitively supplied public, societal, governance services, as part of financial freedom and full consumer sovereignty, expressed by individual secessionism and exterritorial autonomy for communities of volunteers) would have upon the number and behaviour, spending habits and policies of politicians and bureaucrats, their political parties, institutions, measures and programmes. They would then, like a competing business, have to satisfy their sovereign customers. - J. Z., n.d. & 30.4.97, 10.6.11. - TURNOVER-CREDIT, POTENTIAL ISSUERS, EMPLOYMENT, FULL EMPLOYMENT, BANKING-PRINCIPLE, CLEARING, VOLUNTARY TAXATION, FINANCIAL FREEDOM, NATURAL CATASTROPHE INSURANCE OR CREDIT LEVIES, PAYABLE IN SHOP CURRENCIES, PANARCHISM, CONSUMER SOVEREIGNTY, COMPETITION, VOLUNTARISM, SECESSIONISM, EXTERRITORIAL AUTONOMY

DEMAND FOR LABOUR UNDER MONETARY FREEDOM & MONETARY DESPOTISM: To fight inflation one should reduce the demand for labour. And: Unjustified demands for higher wages do inflate prices. - Popular opinions. - Why authorise anyone to interfere with free contractual relations between employers and employees? All the interventionist laws and authorities that were established in this field are the result of the prior interventions of monetary despotism. By further measures of monetary despotism one will not abolish the previously and legally established wrongs and evils and their consequences. Demand for labour should not be confined to the government's fiat money. Labourers should not be so foolish as to demand to be paid only in "the coin of the realm" or in a forced and exclusive currency, which is either inflated or deflated or stag-flated. Free enterprise and free consumer choice in currencies and value standards. Then one will not have to fight inflation - because it simply will not occur. - Imagine that the government would be the only issuer of shares and bonds upon all industrial assets. Then, too, either under-issues or over-issues would have to be expected. We should not entrust our labour remuneration, our property, our wealth, our exchanges, our security, our peace, our health or anything at all to any government, judging by the historical and present records of all governments in these spheres. Least of all should we appoint it as an organiser and guardian of all our monetary exchanges. For in this way it has failed and wronged us even more, almost continuously, than in all others. - J.Z., 2.4.97. - Even if trade unions demanded wages like a million dollars a week, this would still not put the government's note printing presses into operation. But once the government does use them, then million dollar wages - expressed in inflated and government money do become ultimately possible and even likely. - Without more money being put into circulation, higher wages could not be paid. It is not the union movement that issues monopoly paper money with legal tender power, outlawing rightful and sound alternative means of payment for the payment of wages and salaries. - J.Z., 10.6.11. - DIS., PAYROLLS, LABOUR, WAGES, SALARIES

DEMAND MANIPULATION: Shave the top off demand." - Prime Minister Keating, on interest rate rise, 14.12.94. - I would rather have had the top shaved of this impertinent and coercive meddler. - What little is left of our earnings, after direct and indirect taxation and inflation, deflation or stagflation, after exploitation by xyz government legislated monopolies and restrictions, is then to be further reduced by artificially increased interest charges! - Only extreme ignorance and prejudice can permit such mis-managers to get away with it for years to decades. - No matter how wastefully and self-interested this great "leader" (he called himself, when he was treasurer, the greatest treasurer ever!) acted, he was allowed to stay in power for years and years. Has any criminal ever done as much damage and committed as many wrongs as some of these "great leaders" have? - First they inflate their monopoly money. Then, when some of this money, after taxes, remained in your pockets, they introduce credit restrictions, deprive potential debtors of the chance for credit for  productive investments, thus throw people out of work, deprive them still more of their earnings, all, supposedly, in the interest of the public but in reality merely in an attempt to permit them to persist with their misconceived and misguided policies for a while longer, in the pursuit of their power-addition, under the pretence that they would be doing something positive. - No one has the right to coercively or deceptively "shave off" anyone's earnings, property, purchasing power or demand, not by interest rate manipulation, devaluation, inflation, credit restriction, forced loan, artificial interest rates ("discount policy"), "open market" sales of government securities, to artificially reduce or increase the circulation of its paper money, or by "covering" exclusive and forced paper currencies, additionally issued, with government "assets". - Not only bad debts (investments in tax slaves, under inflation risk) of the own government are sometimes used as "cover" for further issues of legal tender money but even bad debts of foreign governments, even despotic, dishonest ones, that are already in an economic crisis. - At the same time, those who treat us and shear us like sheep, prevent sound tax foundation from immediately withdrawing tax foundation notes from circulation again, shortly after they have been spent, so that they help to honestly clear government spending against government tax claims. (Apart from the wrongfulness of the robbery or theft involved in all territorially imposed taxes, by the modern official, democratic and "representative" "robber barons". They commit immense crimes and then try to cover them up with some "smart Aleck" remarks which the media simply report without tearing them apart and refuting them. Alas, the "man in the street", voter and victim and even most of the supposed experts, meekly and thoughtlessly accept such remarks and such misleaders for all too long, without any protest or moral and rational criticism. - J. Z., 14.12.94, 25.4.97, 10.6.11. - I still remember a public and uncontradicted remark by another former ALP Prime Minister of Australia, Gough Whitlam, in which he declared his readiness to reduce all Australian to recipients of pocket-money, with all other "necessary" goods and services becoming allocated as hand-outs by his socialist government, a situation which also implied forced labour for all Australians and 100% taxation for their output. In other words, he wanted to treat all Australians like convicted criminals, kept in a nation-wide prison. I did not hear or read even one word of protest about this utterance! A nation of sheep, indeed! Just one anecdotal evidence on this mentality among the lowest representatives of this criminal mob: During one election and not far away from the election urns, I had once a short discussion with an old and long-term Labour Party supporter. His envy of higher earnings than his own made him favour highly progressive taxation. So I asked him, would he oppose 80% taxation? No! 90% taxation? No! 100% taxation? No! - So at least he was explicitly ready to vote himself into 100 % enslavement to a territorial government! - First they inflate the currency entrusted to them and then they blame their victims and tax them some more, in one way or the other. I have seen no sign at all that this former Treasurer and later Prime Minister of Australia, had any idea of honest and sound tax foundation money, the alternatives to central banking, voluntary taxation and competing and individually chosen governance or self-management systems of societies and communities of volunteers. He was just another despotic territorial statists who offered is notions of State Socialism as if they constituted an ideal for others than ignorant and prejudiced fools. J. Z., 8.9.02., 10.6.11. - DIS., MACROECONOMICS, COERCIVE CENTRALIZED PLANNING, GOVERNMENT BUDGETS, INFLATION, ARROGANCE OF POLITICIANS, PEOPLE AS PROPERTY OR SLAVES OF GOVERNMENTS.

DEMAND: An over-full demand for labour acts inflationary. - Popular opinion. - How else could an "over-full" demand for labour ever come into existence except through a central bank and its legal tender paper money? - Why allow anyone to establish a forced demand for labour by fiat - while preventing the rightful and rational monetary mobilisation of all ready-for-sale goods, services and labour by the owners of these goods, services and labour? - My salary was, quite a few times, paid for with notes fresh from the printing presses, still with consecutive serial numbers! Why allow anyone to do that - without him offering, at the same time, equivalent and wanted goods, services and labour in return? Why allow anyone to unilaterally issue coercive money tokens as claims upon the goods, services and labour of others? Why be so foolish to grant him a monopoly, too and his tokens a compulsory acceptance and forced value - and to suppress, at the same time, all sound, honest and competitive money issues? Under legal tender and the issue monopoly we will never and never can KNOW whether the money circulation is sufficient, just right for the moment or over-full, because such despotic money removes all self-regulating factors. It leaves no "division of powers" or "checks and balances". It outlaws free contracts, self-help, self-responsibility, property rights, free trade, free enterprise, free exchange and free pricing in its sphere. And then the government wants to set up "laws", "rules", "controls", "regulations", central planning, credit restrictions, price controls, rationing and quota systems, all upon such a wrongful, harmful and shaky "foundation", without even discussing that "foundation". - J. Z., 2.4.97, 3.8.11. - DIS., CENTRAL BANKING, MONETARY DESPOTISM

DEMAND: He could not put an extra resource demand on an already fully employed economy without producing inflation. - Dr. Paul A. Samuelson, on his advice to president L. B. Johnson, THE NATIONAL TIMES, 26.4.l71. - An abuse of the term "demand" is involved that is associated with monetary despotism. In a free exchange economy demand is only established by monetised readiness to deliver wanted goods, services and labour. Such a readiness does not exist for the government's forced and exclusive currency, apart from government services paid for with paper money that has a sound tax foundation. For all other exchanges the government's paper money is an intrusion of a third party with its enforced and, inevitably, also mismanaged and abused monopoly money, which prevents the private exchangers from producing or using currencies of their own. It is, in its first issue, and in its continuing issues, a confiscatory or requisitional act that has nothing to do with free exchanges. As for the quantity of forced and exclusive currency, that would act inflationary: Under forced acceptance and forced value that is not known via refusals and discounting of this currency, i.e. by its free market rating. What remains to its acceptors are only rises in the prices of their goods, services and labour which tend to express the deterioration of this paper money indirectly but not very accurately, either. Moreover, this depreciation, by flooding the market with monopoly money, does also create deflationary and stag-flationary effects. Even the degree of unemployment and of full employment are not accurately observable and measurable under these conditions. A degree of unemployment always tends to remain under centralised and monopolised note issue, especially when it is at the same time subsidised by unemployment "insurance" and this unemployment, under pressure by potential voters and the political "representative" system becomes then a pressure and motive for another Keynesian spurt of inflationary note issues by the central bank. During a galloping inflation the unemployment caused by it becomes large and becomes again a motive to inflate more and more, to the limit of the capacity of the note printing presses. Samuelson's unchecked premise is thus the continuance of the existence of the exclusive and forced currency of monetary despotism. - This abuse associated with fiat money is not possible under monetary freedom. Under it only private resource owners (of resources daily in demand by average consumers) can issue monetized claims or IOUs upon these, their own resources, to the extent that they find voluntary acceptors at par or close to par, who use them to buy the goods, services and labours that they want of them. Then and thus they would do nothing but facilitate a goods, services and labour exchange among their providers to the limits of their productive ability, readiness to supply, serve and labour. Such IOUs would always be fully covered by goods, services and labour and they could not become over-issued and cause a general inflation of prices, fees and wages reckoned and contracted in stable value units. At most some issuers might make some mistakes in their issues, which would lead to a temporary discount of their issues and their issues only and thus to their widespread refusal in general circulation. If they made such mistakes repeatedly, then their further issue attempts would encounter general refusal and they might be driven into bankruptcy, losing all their property. However, under full publicity for all details of private and cooperative money issues, it could and would only rarely come to that state of affairs. Then s small and well publicised disagio or discount of the notes, against their value standard or other sound value standards, would make further over-issues impossible. His remaining debtors would tend to profit, at his expense, unless they are contractually obliged to accept his notes at par - up to the limit of their indebtedness to him. But no matter how depreciated the notes of his further issue attempts might become, they could not inflate the general price level, expressed in stable value units, since his notes, without legal tender, would not have a forced value and forced acceptance, except towards him. At worst he might note-issue himself out of business, home, car and all other private possessions, which would have to serve as redemption goods in bankruptcy proceedings against him. But under monetary enlightenment, combined with full publicity on monetary issues, it would rarely come to that. E.g., a plumber, a barber and a cinema owner would find it difficult to get more of their service tokens into circulation than corresponds to the quantity and value of their services which local consumers want. The same applies to any combination of local suppliers and their combined private or cooperative issues. Issuers and acceptors would only have to watch the market rates for local currencies. They would not have to become involved in macroeconomic statistical measuring attempts and decision-making for others. - J. Z., n.d., 2.4.97.

DEMAND: Liberate demand and make it monetarily and financially effective - through monetary-, clearing-, and financial freedom, based also upon free choice of value-standards. - J. Z., 7.12.93, 26.497, 8.9.02.

DEMAND: Monetary demand has at least two aspects: 1. The demand in form of money for goods and services. Under the money issue monopoly that demand is all too limited and wrongly mismanaged - 2.) The demand or need of goods and service owners and suppliers for money (in a free exchange economy, based upon the division of labour), which gives a money, especially the money issued by themselves, value and a purchasing power towards them. - - When the owners of goods and services, including labour, are free to issue money upon what they have to offer in this form, then even these goods, services and labour become somewhat liquid or liquidified in the process and assure these sales, like sold tickets assure the attendance to performances. However, physical means of exchange, not even in form of mere clearing certificates, are not really required. Pure clearing is possible, rightful and, potentially also comprehensive while it is also quite harmless but very useful and efficient. The clearing process of the own consumer goods, consumer services and of labour for those of others can also be carried out without them, by mere book keeping or computerized clearing. However, a sound enough value-standard is required in both cases, for as just and easy exchanges as possible. The purchasing power entitlements involved and cleared, with or without material exchange media, do not require, for their sound value reckoning, any cover, reserve, guaranty or redemption in e.g. rare metals, far less in foreign exchange currencies or government debt certificates, but only in form of wanted and ready for sale consumer goods, consumer services and productive labour using an agreed-upon value standard. Once the covering curtain of exchange media or clearing transactions is removed, what remains are the underlying exchanges of goods, services and labour. Exchange media and processes that aid this exchange are sound. Those which obstruct it, limit or prohibit it, in some or many cases, are wrongful, irrational and uneconomic. - Without any legalized, arbitrary or prejudiced and enforced interferences, the process of issue and reflux of exchange media resembles somewhat our blood circulation and the usefulness of oil in machinery. Interference with that free flow, exchange or clearing can greatly reduce economic exchanges and even bring its machinery almost to a stop. - The consequences of such interferences (mass unemployment and mass expropriation) do also lead to disastrous political and military consequences, which we have all too often experienced and suffered under for all too long, but which are still insufficiently considered and reported by most historians and economists. - J.Z., 10.6.11, 3.8.11. - MONETARY FREEDOM VS. MONETARY DESPOTISM, LEGAL TENDER, CENTRAL BANKING, MONOPOLY MONEY

DEMAND: The government has a duty to control excess demand in the economy. - Popular opinion. - First it asserts that it has a right and a duty to flood the economy with its paper money. Then it asserts that once that money is in your hands and depreciated, it ought to control your spending of this money, which you and not the government earned. In other words, it wants to hold you responsible for its actions and calls this its duty. Its only rightful duty in this sphere is one of hands off - off any forced and exclusive currency and off all private and cooperative currencies that are issued in its stead, as well as of any private or cooperative clearing transactions. Competitively issued sound exchange media are always tied to their goods, services and labour backing and thus cannot establish an "excess" demand for the goods, services and labour of others. They rise freely and fall with their goods and service cover and redemption, having thus a steady reflux in the realisation or purchase of their "redemption" values, offered by their issuers and also the debtors of these issuers. - J.Z., n.d., 10.6.11. - DIS.

DEMAND-FOUNDATION: The demand for any kind of competing and freely issued and market-rated currency against a sound value standard, not covered or redeemable by the issuer on rare metal coins, refusable in general local circulation by all but the issuer and by contract with him, his debtors, a demand expressed in ready-for-sale goods, services and labour, also for the immediately or soon due payment of other debts, can give it a value that is precisely at par with its nominal value, expressed in one of the other value standard. Convertibility into rare metals can be confined for such currencies to the free rare metal markets of the world. The most suitable issuers for such currencies are the owners and providers of wanted consumer goods and services, including employees, as well as creditors of some other short-term debts. This demand ought to be expressed in sound value standards, used in free market pricing of the goods and services and in the competitively issued exchange media. The readiness to accept must be at par for the issuers themselves or for the members of an issuing association, e.g. the shops of a local shop association that issues its own shop currency. These issuers and their debtors must accept these notes in all payments due to them. - When an institution and a service, as important as a local shopping centre, does issue its own currency, then it becomes voluntarily accepted and this at par not only at that shopping centre but among most other local businesses, e.g. hotels and restaurants, too, as a customary local currency. As service providers such other acceptors might be included as members in the local shopping centre's issuing association, but they need not be. They could also issue their own local currency. All local debts could be voluntarily settled with a local currency - or, possibly, one of several local currencies, if there is an issue and reflux opportunity for several of them. If the community is large enough, it might also find acceptable e.g., a bus, train and taxi service currency, one for and petrol and oil supplies, an electricity money and a gas money, perhaps even an entertainment service money and one for its education services, apart from any official money with tax foundation. The local free market, i.e., sovereign entrepreneurs, traders, consumers and free acceptors and issuers would have to decide their currency issues between them. As long as they feel that their local communities are not already sufficiently supplied with exchange media, they will attempt to issue more. As soon as they feel that there is an abundant supply of sound exchange media already, attempts by additional issuers or attempts of existing issuers to increase their circulation, will not succeed but become rejected instead, starting with the first small discounts of their note issues. - Demand and supply will regulate each other automatically, here, too, by free pricing being applied to exchange media - and their value standards and voluntary acceptance, including the total refusal option. Only those supplying real and wanted values, at acceptable market prices and transaction costs, will succeed. Others will fail. Good monies will be free to drive out bad ones. - An occasional or panicky conversion of metallically convertible banknotes into gold coins would not as regularly supply and as strong a demand for them, as the daily demand does which arises from a) the readiness of local suppliers who offer their goods, services and labour for them, and b) the need for the local consumers for an exchange medium to acquire their daily needs for consumer goods and services, added c) by the demand of local debtors for an exchange or clearing medium to pay their debts with. - Free market rating of competing exchange media against sound value standards would be the essential indicator for any need of further issues or for temporarily stopping further issues and acceptances. Such competitively issued, optional and market-rated exchange media could then not rise above their par values nor far below them. That fact becomes easier to understand if one considers them as a form of ticket money. Who would accept more tickets than he wants to use? Who would sell more tickets than he can supply seating for? Publicity for all details of their issue and reflux, sound value standards and free rating against them would be essential. The right to discount or refuse all but the self-issued monies should be especially practised against governmental paper monies that are, as usual, issued in excess, as long as we are ready to immediately issue and accept sound alternative privately or cooperatively issued alternative currencies, in free competition with each other sound issuers, thus supplying the exchange media and value standards required by the local market for an almost friction-less turnover of all its wanted consumer goods and services and the utilization of all its underutilised or unused ready and willing labour power. If any unemployed would then persist in being paid only in the money of monetary despotism, a monopoly money with forced acceptance and a forced value, then they would have to accept their continuing unemployment, which results from this demand by all too many of them and for all too long. Wee need freedom for employees and their representatives and for the employers and their representatives to agree upon other and better means of payment, of the kind that can always be kept sound and abundantly supplied, so that wages can always be paid and goods and services, including labour, can always be readily sold - both at market prices. -J.Z., 7.12.92, 29.4.97, 8.6.11. - DEBT-, REFLUX-, ACCEPTANCE OR READINESS TO ACCEPT FOUNDATION FOR CURRENCIES

DEMAND-PULL INFLATION: It is absurd to attempt to discuss this apart from legal tender and the issue monopoly for the central bank, i.e., only from the position of monetary despotism. - Under monetary freedom each issuer can only try to establish a circulation for his notes by providing sufficient reflux for his notes - their streaming back to the goods, services and labour he offers for them. Then his goods, services and labour pull his notes back to him, for he is the only one who has to accept them at par at any time from anyone. They have no other value. He exerts a demand-pull for them, with the satisfactions he offers to his potential customers. And they exert a monetary demand for his goods with them, corresponding to all of his issues. And this demand-pull for his goods etc. pulls his notes also out of circulation. Legal tender notes, on the other hand, with an exclusive monopoly for their issue, and for monetary circulation, under its compulsory acceptance and value, tend to remain in circulation and to be over-issued, with each additional over-issue tending to drive up, even further, all prices and wages that are, under these conditions, compulsorily expressed in its depreciating paper "value standard". The monies of monetary freedom have no political pull, there is no fiat giving them any demand power over the goods and services of others. Only the own readiness to supply and satisfy consumer needs can give a value to the own currency, can turn it into a currency that is voluntarily and readily accepted, at least as one competing local currency. Only if its goods, service and labour backing is very well organized can it become an almost exclusive local currency in practice but it can never become a legally exclusive local currency. Open entry for other potential issuers would remains. - J. Z., 2.4.97. - DIS.

DEMAND-PULL INFLATION: When too much money spending is chasing after a limited supply of goods producible at full employment and maximum plant capacity, the resulting bidding up of prices is called demand-pull inflation. Demand dollars "pull up" prices. Economists know how to handle old-fashioned demand-pull - you stop turning the monetary printing press. That is, the Federal Reserve slows down the rate at which it lets money supply grow. We, the public, find ourselves with less currency and demand deposits and with less savings deposits and with less values in our common-stock and other asset holdings. Eventually, we spend less when our liquid balances get depleted relative to the soaring costs of living. Reinforcing this tight monetary policy and keeping it from raising interest rates sky-high and precipitating Wall Street and Main Street financial panics and crises, is the modern tool of stabilising fiscal policy ...." - Samuelson, THE NATIONAL TIMES, 26.4.71. - Legal tender is, again, presumed to be inevitable and, likewise, the issue-monopoly. It is like discussing despotism without discussing any alternatives to it, democratic voting, military insurrections, revolutions etc. - J. Z., 2.4.97, not to speak of quite free societies. - DEFINITION, INFLATION, DIS.

DEMAND-PUSH INFLATION: It requires a central bank's money issue monopoly and legal tender power (compulsory acceptance and a forced value for its notes). - If I issued claims to my libertarian microfiche as money, then, probably, only one in a billion would be willing to accept it. It would certainly not be monopoly money with legal tender power. But with a governmental central bank and its note issue monopoly and legal tender power, any quite criminal or democratic or republican territorial government can already push us around all too much, even into wars, civil wars, violent revolutions and terrorism. - J.Z., 10.6.11, DIS.

DEMONSTRATIONS FOR MONETARY FREEDOM & AGAINST MONETARY DESPOTISM? Berlin friends, back in 1980 or 1984, reminded me that, apparently, there was never as yet a public demonstration or march in which the demonstrators demanded e.g.: Repeal the Legal Tender Acts! and Abolish the Central Bank! The few cases of monetary revolutions or at least radical monetary protest actions that did occur in monetary history ought to be carefully compiled and publicised. In the French Revolution, at last, the printing presses for the Assignats had to be publicly burned. Nothing less would have satisfied the public at this stage. In 1923 Germany was close to a monetary revolution and several secessions were prepared, just to get away from the regime of the vastly inflated official Reichsmark paper money. I believe that it happened at least once in ancient Chinese history that the main culprit of a paper money inflation was beheaded. See: GALLOWS CURRENCY. - J. Z., 11.4.97.

DENATIONALISATION OF MONEY: The reform proposed is not a minor technicality of finance but a crucial issue which may decide the fate of free civilisation. What is proposed here seems to me the only discernible way of completing the market order and freeing it from its main defect and the cause of the chief reproaches directed against it. - Hayek, Denationalisation of Money, p.100. - & CIVILISATION, FREE MARKET, FREE EXCHANGE, CENTRAL BANKING, MONOPOLY MONEY

DENATIONALIZATION, FINANCIAL & MONETARY FREEDOM: No one should expect me to provide good and enough entries on every possible and desired related subject. This is just another hint on how incomplete this compilation its and how much it still depends on more and better input from others. - In my own privatization project, in PEACE PLANS 19C, one among dozens of different other projects, that I only hinted at, (I do a also offer it as an email attachment - until it appears online or on a CD), I suggested the free distribution of general shares in all government assets to all territorial subjects, children included, first only as an election promise and then, upon election, its realization. The winning party, acting as a broker and liquidator, should get a fee for this purpose and should be able to anticipate this fee by the issue of its own liberty bonds. Later all these general shares ought to be convertible, at market rates, into the special shares issued for all governmental enterprises, most of which are currently still so badly managed that they do require tax subsidies. In private or cooperative hands they would tend to become much more productive and even profitable. In Australia that might still mean that ca. A$ 1 million worth of capital assets could be distributed per head of its population. So far Big Brother has kept most of these values from us and only put them into the hands of some privileged groups, while most of the victims of the Australian government got nothing out of these transactions, in cash or shares, except the disappearance of some subsidies and mismanagement. But they did not get the monetary or share value of their supposed co-ownership of all public assets in Australia that were privatized. - Not even their taxes were correspondingly reduced. - J.Z., 10.6.11.

DeNEVE SANDORF, HEIDI, Heidi DeNeve Sandorf, MBA | LinkedIn - - Cached - Tampa/St. Petersburg, Florida Area - Owner of World Gold Invest - ... further protecting against government confiscation - fit the description of 'free market commodity' (sometimes referred to as free-market money) ... - Ideally, exchange media are not investments but merely turnover credit and clearing facilitators. Not should value standard commodities be mainly considered themselves as investments but merely corresponding contractual clauses should safeguard one's productive investment by the chosen value standard. Investing in the value standard metal gold, is not a productive investment although, in times of inflation, it might be a profitable investment by preserving one's capital and profiting from a speculative over-valuation of gold, happening in the expectation of further inflation or the monopoly money with legal tender power. But all of us could not be economically better off if all of us invested in gold rather than increased and improved production of consumer goods and services. - J.Z., 26.7.11.

DGC BLOG: DGC Blog - - 20 Jul 2011 – ... federal reserve, Frederic Newmann, free and unashamed, free game, free market money, free markets, free online game, free seminar ...

DENOMINATIONS, APPEARANCE, SIZE & MATERIALS OF COMPETING CURRENCIES: The choice of the most suitable denominations, sizes of notes, appearances, designs, numbering, texts, paper or other materials used and steps to prevent forgery and to achieve a fast reflux - can also be left to the free market, its free enterprise competitors and sovereign consumers to decide upon, and this with much more certainty of successful outcomes than when they are decided by the central bank or treasury as monopolists and coercers - if experience is a reliable enough guide. - J. Z., 24.4.97, 10.6.11.

DEPOSIT CREATION: The arbitrary creation of deposits, out of nothing, is a myth that is almost as frequently repeated as do Christians repeat, in their writings and preachings, the myth of Christ as the universal saviour for all our lives and all our "sins", and "God" as a caring father for all of us, as supposedly his children - if only we adopt full faith in this supposed father, son and other children relationship. Child murders and human sacrifices are, generally, abhorred only in other relationships. No matter how often such irresponsible assertions are repeated, they still remain untrue. But they can lead to irresponsible accusation of and persecutions of inherently innocent people, doing their things to, for and with each other, voluntarily, but classed, by dogmatic Christians, who do not love their neighbours, as incurable sinners that ought to be punished or at least slandered, if not exterminated. This false dogma has turned many people into enemies of monetary freedom. While, otherwise, they may think and act as defenders of freedom, right and justice, here they are in reality upholding one or the other version of monetary despotism. Repent, if you can, before it is too late. The future holds only "eternal damnation" for such doctrines. "Adore what you have condemned, condemn what you have adored", at least in this respect. I sincerely doubt that many will do so but am convinced, nevertheless, that they ought to. - J. Z., 3/97. - Even Rothbard wrote about "The Mystery of Banking" and at least full monetary freedom remained a mystery for him. - All the errors of money-, credit- and deposit "creation" still remain to be optimally refuted or the best refutations already existing, somewhere, have still to be sufficiently published, for these and other spleens on money. - J.Z., 12.6.11. - CREATION OF MONEY & CREDIT, DIS.

DEPOSIT CREATION: When deposits, like cash, have also a separate value standard and are valued against it, daily and publicly and can thus suffer a discount against that standard, then any imagined and large scale "over-issue" or "creation" of deposits or credits or non-cash money, becomes as impossible as it is for free market rated and competitive cash issues. What actually happens in deposit banking is a more or less efficient use of the term deposits of others to grant corresponding term loans to people, in anticipation of their future ability to repay them. In anticipation of the repayment ability of their debtors and based on whatever cash and deposits they have on hand, the banks can also grant their credits as account or deposit credits, just as they can grant them in cash. Banks would love to be able to "create" bank deposits out of "thin air". Then they would no longer have to advertise for depositors and to pay them interest. Fixed and strange ideas like that are seriously advanced as if they were genuine insights and even a few free market libertarians have fallen for them. The "creationists" in that sphere manage to overlook the credit transaction that is involved and the security given or provided by the debtor for the loan received. They also ignore the origin of the funds for the loan. Perhaps a deposit game should be developed that would help to drive out this error - when or if it is played among the faithful. One of the fallacies involved is that the loan recipients would have nothing better to do with their loans than to put them into a savings bank, as if their intention had not been to spend the borrowed money. Especially since electronic funds transfer has become possible, all these debts and credits should balance almost instantaneously. - Let's over-simplify, in a thought experiment: If any Bank could suddenly increase, tenfold, the nominal value of all its depositor's deposits, by unilateral and administrative action, then that part of the total purchasing power of its customers would be increased tenfold (unless that supposed additional value or purchasing power were confiscated or embezzled by the bank). With anyone but the bank and, by contract, its debtors, not being under obligation to accept this multiplied deposit "currency" like cash, at its face value, and, seeing that the total of goods and services has not been increased by this paper-value multiplication, the inevitable result would be that these paper tokens or accounts could buy less and often nothing. Their depreciation would be rapidly noted by the mass media and would lead to massive refusals to accept them at all. Lastly, a "panic" would might occur or might be imagined as happening, among those debtors of the issuers or "creators" of paper credits, who have still plenty of these paper "values" on hand, after having paid all their debts to these issuers or "creators" and among the consumers, who find the shop shelves empty and their own hands or wallets still full of deposit certificates with which they cannot buy anything. In reality, the discount of such paper accounts or certificates would occur very early, some would always know or find out what is going on, and their discounting and refusals would tend to be well and widely reported. Thus they would lead to wide-spread and larger discounts and refusals and these would make further issues soon impossible and also make it impossible for that issuer or "deposit creator" ever to engage in such actions again. - However, only the command economy and exploitation of an exclusive and forced currency with legal tender (forced acceptance and forced value), not only all cash but also all credit and deposit and clearing arrangements are severely interfered with. They are only allowed to ride on the inflation paper tiger and participate in its crashes into reality, even when such a crash may be considerably delayed because such a system makes people very ignorant and prejudiced on money, credit, deposits, interest, value standards, exchange media and clearing and they do support beliefs and errors like those which assert that mere confidence and trust, government controls, coercion, guarantees and "insurance" arrangements can maintain a currency and the security and value of on demand deposits fully and indefinitely. - J.Z., 3/97, 10.6.11. - Ignoring the time factor involved and relying on supposedly effective governmental regulations and controls, also on "trust" and confidence, all too often bankers have invested short term funds on medium to long term securities and have thus made themselves unable to pay out all the short term funds entrusted to them. Not a credit creation is involved but a mal-investment. Only if the central bank were to bail out such banks with additionally issued legal tender money would there be an inflationary effect. Without that kind of wrongful backing by the central bank, the banks could and should offer their short-term depositors only the equivalent of their short term deposits in form of short-, medium- and long-term investment certificates and should admit that their immediate repayment promise could not be kept, always, under all circumstances. I heard that French Banks at least in the 1930's had contractually reserved to themselves the right to do so. In this case, the disappointed short-term depositors, unable to get cash for them, would have no reason to complain. For all but their current cash flows from and to them, they should only operate with fixed deposits for time spans corresponding to their lending contracts. To some extent this seems to be already done and it should be done quite consistently. - J.Z., 12.6.11. - CREDIT CREATION, MONEY CREATION, SOCIAL CREDIT NOTIONS

DEPOSIT GUARANTIES: I would protest government guaranties and insurance offers and organizations that pretend to be able to cover the risk of huge bad loans being made. E.g. "foreign aid" loans, made governments to governments, often merely for political "reasons". They do only encourage a growth of bad loans, that in the short term offer high interest and in the long run and average rather lead to capital losses. The careful lenders should not be made to pay for the careless lenders, either. Nor should the depositors become so victimized - or the taxpayers or the inflation victims. - One should not forget, either, that many people, including investors, are born gamblers and speculators. They are sometimes prepared to take large risks in the hope for great returns. As gamblers they must also expect losses. Thus people who want to gamble and speculate with their funds or want others to do this for them, ought to put up with the inevitable losses, too. Such activities should not be prohibited for them or rendered impossible. - J. Z., 3/97, 12.6.11. - & INSURANCE

DEPOSIT INFLATION: Banks can lend out 10 times as much money as they receive in deposits and can thereby cause an inflation. - Popular opinion. - They wish that they could. They know that they can't. - The only bank that could do that in every country is that country's central bank because, quite wrongfully, it has been given a monopoly on the issue of paper money and also legal tender powers for its note issues. - The superstructure of non-cash or clearing transactions is based on a small amount of cash and it may give uncritical observers the impression of a multiplication of exchange media, which, based upon the same amount of goods and services, and its exclusive and forced currency status, could drive up all prices and wages that have to be contracted and expressed in it. But clearing and non-cash transactions are representing genuine and additional exchanges and, as such, they cannot drive prices up. Only when the same old volume of exchanges has to be expressed in an exclusive and forced currency, whose quantity has been multiplied beyond its goods and service cover, do their money prices, which then have to be expressed in this depreciated currency, become correspondingly inflated. One should distinguish cause and effect here. - The second misleading impression that many people have do and mix up with monetary circulation, is that of the numerical excess of the total of medium and long term loans and of their repayments, over the cash in circulation. Moreover, even in the short term circulation of currencies and turnover credits, at any time in a somewhat developed economy, there are many more non-cash or clearing transactions than there are cash ones. Precisely because the legal right or creditors to ultimately demand cash from all their debtors, this system functions well enough as long as only a few make use of their legal or juridical right to demand cash. Then and then only a relatively small amount of cash and or current accounts (demand deposits) allows a multitude of short-term turnover credits, non-cash or clearing payments to take place, with cash only used to settle balances and even such cash payments can be avoided via the next clearing settlement. When many non-cash payments and clearing settlements are customary, then a small amount of cash and demand deposits permits, over a period, the payment and repayment of much larger medium and long term loans than the amount of cash circulating at any time. Then the same amount of cash can be used over and over again during that period. Instead of comparing the total of all timed loans and loan repayments, one should only compare the total of today's due loans and repayments with the total of the daily available cash and current account or clearing repayment options.

DEPOSIT INFLATION: Claims against deposits (via cheques ) or note issues without sufficient, immediate and short-term reflux arrangements, e.g., shop foundation for their redemption and short term repayment obligations for loans granted with deposits or notes, i.e. without debt- foundation, or readiness to accept or readiness to accept them in clearing, would suffer the same depreciation and encounter the same refusal and suits for fraud which any ticket vendor would encounter who cannot offer seats or enough seats in exchange for them. An angry crowd might even beat them up or burn their premises or vehicles. Moreover, they would lose their chance to become issuers again. - Over-issues and deposit- or credit-inflations attempts are not as easy and without consequences for such issuers as especially the believers in "Social Credit" assume or assert them to be. I believe such "creations" to be almost entirely imaginary, the result of a miscalculations or false book keeping or wrong observations or misinterpretations of observations. - Naturally, under conditions of monetary ignorance or prejudice, where culprits like the central bank and its inflationary policy, get away un-blamed and can manage to blame instead, even in the mass media and supposedly more expert channels, e.g., the trade unions, employers, traders and general, greed or speculation and, naturally, private banks, for their supposed credit "creation" and where they find the "sanction of the victims" for such self-serving propaganda assertions, then real culprits can get away with fraud, deception, embezzlement and corruption for a long time and still do so, remaining unpunished and not under obligation to indemnify their victims. Often the taxpayers are forced to make good such losses. Even people, who have pondered such questions for decades, do rather blame innocent private enterprises for crimes they did not and cannot commit, than hold the government and its monetary and financial despotism responsible. - J. Z., 3/97, 13.6.11. - FICTITIOUS DEPOSITS? UNILATERALLY & ARBITRARILY CREATED BY PRIVATE BANKS?

DEPOSIT INFLATION: If deposit inflation were possible then deposit bankers would be too glad. Their assets could me multiplied without any efforts on their side. Then under competition between deposit banks, the banks should be able receive and to pay ten times as much in interest. In reality, there is insufficient interest between a few licensed banks. My deposit interest rate on deposits up to $ 5,000 (in the average, on my savings and cheque account, is presently only 1/2%. This does neither cover the inflation rate of at least ca. 3% nor does it cover all the charges and taxes I am forced to pay on my account. (My bank was close to broke a while ago and may go broke still.) - Compare all the nonsense said on the supposed CREATION of money and credit. Even the government, when, due to its constitutional or legal or juridical powers, issues a monopoly and forced currency, by its own unilateral fiat, does not really create something valuable but, rather, prevents the establishment of sound alternative currencies and value reckoning and partly expropriates all those whom it thus forces to accept its official requisitioning certificates as if they were real and well preserved money, with a sound value standard and based upon extra and wanted services and goods provided by a government. - J.Z., 24.3.97, 10.6.11, 23.6.11.

DEPOSIT INFLATION: The assumed automatic growth and multiplication of deposits assumes that to deposit owners the deposits are purposes in themselves, which they never utilize. Instead, they are, usually, rapidly reduced by withdrawals. What happens when they are lent to somebody? Would that depositor merely hoard this loan or use it productively, in most cases? The borrower would certainly not love paying interest on loans which they would refuse to use productively, making a profit from them, even after interest and taxes and other costs are deducted from their returns. - Alas, our expenditures tend to equal and often even exceed our incomes, if we do not severely check our spending habits. And borrowers do not borrow as a rule to establish savings deposits but to pay their current and upcoming bills - by becoming more productive. - In the all-over picture all debts are equal to all credits. They do balance each other. Neither debts nor credits can be unilaterally decreased or increased except for force or fraud, which correspondingly reduces the credits of the victims. - No one can rightly and unilaterally multiply his assets. That is wishful thinking or part of the "thinking" of conspiracy-theory believers. They still seem to believe that "money grows on trees". - If one combined all the balances of all the deposits, all their credits and debts and did so correctly, for any given moment in time, you would arrive at a complete balance. But, as I stated above, only current debts and credits ought to be so balanced and the same should be done for tomorrow, the day after and any day in the future, to arrive at the correct balance. All debts due only in the future need not be fully covered by cash or on demand deposits available now - but only at their due dates. Indeed, the time factor should be properly taken into consideration. Immediately recallable funds should not even be invested on short terms, far less on mediate or longer terms - unless the owner of these funds agrees with such a policy and its results, namely the impossibility to repay all these deposits immediately and upon demand. At most they could be "paid" always by the corresponding securities. A merchant with a current balance of only $20,000, might, indeed, be given a book credit of 200,000, over, let us say, two years. But that credit would have to come, to be realized, from other accounts. He would have to EARN the repayment amount, either by the end of the two years, gradually saving it up or earning enough, with the help of this loan, to pay at least regular instalments on this debt, possibly already including the agreed-upon interest rate. No "deposit creation" is involved but merely a temporary current account credit, granted from other deposited funds. The loan is balanced by his debt. What he received, he has to repay, with interest, out of his earnings. - True, the money lent and the monies ultimately repaid, should be in balance in their totals and also properly timed. E.g., via correspondingly timed term deposits or fixed deposits. When short-term funds are used for short-term credits, then, as a rule, short-term or immediate clearing or non-cash transactions are involved. - In a more primitive and obvious way, the merchants wanting short term credits could grant it to each other via a common pot, with the transactions going in and out of the pot being fully recorded, with the records available to all the members. Such a pot need not be full of rare metal coins. Instead, paper IOU slips could be used by all the members and cleared against each other. They would all be covered by the known or checkable delivery or short-term production capacity of the members with their goods and services. - J. Z., 3/97, 13.6.11.

DEPOSIT INFLATION? Unless banks are VERY inefficient, in spite of electronic communication channels, the reduction of one deposit account and the corresponding increase of another, via a bank-transfer, will be almost instantaneously, preserving the total balance between credits and debts. And the trail of such payments can at any time be checked via computers. Bank secrecy has often been broken by computer fans. None of them has as yet reported having found any evidence for the assumed "creation of credit" or of deposits or money". Nor has any honest accountant. - J.Z., 3/97. - Only the central bank can arbitrarily - but legally covered - multiply is monopoly money with its compulsory acceptance and its forced value. - J.Z., .13.6.11.

DEPOSITS: There are many ways to insure the security of deposits in banks, all of them better than a governmental regulation or insurance of them. 1.) They should not be confined to a governmental monopoly currency and its paper value standard and the money- and currency “policy” of any territorial government. 2.) Instant repayment upon demand of all deposits should never be promised. After all, the deposits ought to be productively invested and these investments cannot be instantly and completely repaid. The bank has only a stream of incoming repayments at its disposal to pay out debtors. 3.) There could be a waiting list, agreed-upon, for repayments. 4.) Or a notice period. 5.) Deposits, fixed for a certain period, at a certain interest rate, do already partly solve this problem, for the bank would or should invest correspondingly. 6.) The investors might only get installment repayments or minimal amounts immediately or a variable percentage from the current repayments to the bank. The depositors, if cash is short, might be handed over a corresponding number of investment certificates the bank had invested in. Some French banks are supposed to have such a safety clause. – Central banks should have no powers in this sphere, prescribing e.g. certain minimum investment rates with them. Depositors and Banks should have a variety of deposit and repayment plans to offer, also a variety of arbitration systems for the settlement of disagreements. The self-chosen ones to be signed by the bank’s depositors. I have seen no indication that legislators, politicians and bureaucrats have ever been very well informed and clever in this sphere. – Deposit contracts, as well, should be freed from fixed ideas and fixed laws. - J.Z., 27.10.10. - RISKS, INVESTMENTS, MEANS OF PAYMENT, VALUE STANDARD, FREEDOM OF CONTRACT, FREEDOM OF CONTRACT

DEPRECIATION: People who mutually offset their debts did not, do not and cannot depreciate the official currency but simply ignore it by this action and leave it to its own merits or demerits. They are not under any moral obligation to use the cash exchange media of the government's currency. At most they can be used its fictitious "value standard" to "measure" their exchanges. The government has no right to demand such a use. Moreover, they have all too much experience with government caused inflations. Thus they will tend to avoid the current and government-caused depreciation of the government's current paper money by contracting alternative value standards, e.g. gold or silver weight units instead, whether such reckoning is government policy or legally permitted or not. - Assume that almost all people in a country thus refuse to use government currency and made their own payment, valuation and settlement arrangements instead. Assume also that they would refuse to pay taxes and rather pay themselves the policemen, judges and soldiers mobilised against them, as unwilling victims of tax and inflation slavery or deflation victims of the government's deflation or credit restriction "policy". Then and thus they could, potentially, turn these executioners from enemies into neutrals or even allies. Then government paper money issues would become almost valueless. Could the refusers be blamed for having CAUSED the government's central bank inflation, deflation or stagflation or would they merely reveal the inherent valuelessness of the government's­ currency, by refusing to grant it their own support, at the own expense? - J. Z., 3/97, 13.6.11. - OF THE GOVERNMENT CURRENCY THROUGH PRIVATE NOTE ISSUES & CLEARING? DIS.

DEPRECIATIONS: Now, there are two types of "dollar shrinkages" - official ones and unofficial ones. On December 18, 1971, and February 12, 1973, we had two official ones called "devaluations": The former was 8.57 % and the latter 10 %. Almost daily, as the dollar shrinks in value, causing prices to appear to be going up, we have unofficial devaluations. When the government reported, for instance, that the Consumer Price Index for '74 had risen by 12.2. %, it should have reported that government monetary policy has "shrunk" the dollar by another 12.2%. But by asserting that prices had gone up rather than accurately reporting that the dollar's value had gone down, the government is able to mislead the public as to what is really going on. - Schiff, The Biggest Con, 35. - Add to this, that the CPI is determined by a government institution and this is under constant pressure by the government to "measure" inflation at a lesser rate than that, which does actually take place, e.g. by including price-controlled items. That is one kind of scandal, happening at least in Australia, which no "investigating journalist" has so far bothered to investigate and publicise. - J. Z., 24.3.97, 13.6.11. - MONETARY POLICY, CONSUMER PRICE INDEX. , DEVALUATIONS, INFLATIONS, DISHONESTY & MONETARY POLICIES OF GOVERNMENTS

DEPRESSION: LIONEL (now Lord) ROBBINS's theory (in The Great Depression, 1934) that the government had been prolonging the Depression by propping up prices, wage rates, and unsound enterprises, and that that had to stop. Specifically on unemployment, Garraty notes the view of Robbins, Ludwig von Mises, and Jacqes Rueff (a long-time economic adviser to the French government) that wages must not be artificially kept above the market level, an action which generated massive unemployment. So far, so objective - except that Garraty cannot resist appending a snide sentence: 'Their proposals thus required further deflation, although by early 1933 prices had been falling for over three years.' - It is true that prices had been falling since 1929, but - remarkably in the history of depressions - they were falling faster than wage rates. This meant that REAL wage rates (wage rates corrected for changes in the purchasing power of the dollar or pound sterling) were going up, thereby generating massive unemployment. None of these hard-money economists advocated further deflation, in the sense either of further contractions of the money supply or of general price levels. On prices, they called attention to the fact that keeping a specific price artificially high can only lead to the piling up of unsold inventory on the shelves and the possible bankruptcy of firms in the industry. On the question of unemployment, they were making the same point with respect to propping up wage rates. …" - Murray N. Rothbard, in a review, Theory & History, INQUIRY, May 29, 1978, P.22. - Note, that his experts did not insist upon any "FURTHER INFLATION". The existing one, was, indeed, bad enough and they had nothing to propose to abolish it than the adaptation of prices and wages to it. To that extent they were wrong. Since attempts at keeping prices and wages above the market level are permanent in "Welfare" States, depressions should be permanent, and certainly, TO SOME EXTENT they are. - Alas, Rothbard (and all too many others) ignore monetary despotism as a major factor or recognized only spurts of government-caused inflation as starting points for further inflations and later deflations. Against inflations they recommend merely 100% or fractional gold convertibility banking. Against deflation they recommend nothing, since they believed that everything beyond that kind of exclusive currency would be mere "fiat" currency. There lies their major mistake. But, to the extent that they observed price effects they were right. In Germany wage rates did also fall slower than other prices. Unions and government propped them up, artificially. Among the by-products of that "policy" was the Hitler regime, WW II and its aftermath. So it is high time to attempt to re-examine ALL the factors that were involved, not just one's own favourite depression theory - among dozens of others that one tends not even to mention and consider - if one is committed to one of them, as was e.g. Rothbard. - Not only wage rates, artificially kept above market rates, were to be blamed. - J.Z., 27.5.97, 13..6.11. - DEFLATION, WAGES & PRICES, ARTIFICIALLY SUPPORTED & MARKET RATED AS FACTORS CAUSING UNEMPLOYMENT, CRISIS THEORIES, CENTRAL BANKING, MONEY ISSUE MONOPOLY.

DEPRESSIONS: During a depression it is not more capital that is required to end the depression but, primarily, a sound and sufficient supply of exchange media. Secondly a better condition for the existing capital, best of all, full financial freedom for it. In the main, the normal turnover of daily wanted and needed consumer goods and services has to be restored to normal by free clearing or alternative sound exchange media, used and issued just to the extent required to mediate the turnover of all the goods, services and labour that, due to the depression, remain unsold. The same amount of capital is still about that existed before and will appear again, quite openly and effectively, when really needed, after the depression. During a depression capital still exists but it is no longer as extensively used as before, in the absence of sufficient turnover-credits. It is there, but not used as before. It is hoarded or kept in highly liquid accounts only, because of the depression. If it exists in form of closed factories or factories working only at a fraction of their potential, for lack of sales of their product, with many workers laid off, then it is not a capital shortage that should be blamed. Capital becomes useless to the extent that its products can no longer be sold. - Worst of all, there is no freedom for or knowledge of or interest in overcoming this turnover-credit shortage through monetary freedom. Capital is then kept rather unproductively in form of cash or in short term money market speculations, as liquid as possible. Capital will not be invested in turnover credits, either, while turnovers are hard to achieve, due to a deflation. Anyhow, saved-up capital should not be used for turnover credit but rather for productive investments. Turnover credits can be entirely managed by short-term clearing transactions, using a sound value standard and the modern equivalent of the old Real Bills Doctrine - for the issue of banknotes which do not need a gold cover, since they are, essentially, only clearing certificates, but they could use e.g. gold weight units as their value standard for accounting and clearing purposes only, even without any of the participants in such exchanges possessing and using a single gold coin. - J. Z., 8.9.02. - When there is not sufficient turnover then it does then not make sense to invest it in loans for wage and salary payments, in productive industries that would further increase the seeming glut (hard to difficult to sell goods) in the market, due to the deflationary conditions. (Anyhow, turnover credit does not require capital but merely already produced goods, sold to the wholesalers and already on the road to the retailers and final consumers, the employees, in the standard case. Service suppliers for water, electricity, gas, petrol, transport, postal, telephone and computer services would have their own issue and reflux options for their own exchange media or clearing certificates and would, likewise, not need any gold cover and redemption but only their ability and readiness to serve. Naturally, they, too, should be free to use a gold- or silver-weight unit or any other value standard that appeals to them, in their notes or clearing certificates and in their prices.) Penal measures for hoarded money amounts (as e.g. Gesell's stamp scrip) are neither justified nor necessary. We should make the use of saved-up capital for turn-over credit unnecessary. Allow all turnover-transactions to be mediated by special self-liquidating banknotes, on the banking principle or real bills doctrine, instead, or via clearing house certificates or accounts, including digital ones, with all expressing a sounder value standard (also a self-chosen one), rather than the forced paper value standard of the legal tender paper money of the central bank. Precisely the unsold goods, services and labour are needed and are all the "capital" that is needed to make these alternative turn-over loans and clearing arrangements. They are their "redemption fund", cover or reserve - under monetary freedom. - Don't blame, expropriate, prosecute or hang the "capitalist". Rather, make yourself independent of them. Workers, when largely associated in consumer cooperatives, for instance, could then appear as bankers towards their employers, granting them wage payment loans and giving them and other employers some orders for further supplies of consumer goods. They would no longer insist that their bosses somehow come up with the required ready cash, even under monetary despotism, which puts this supply largely out of their hands. By this action they would enable the employers to act as employers towards them, rather than rejecting them as job applicants. - J. Z., 24.9.91, 28.4.97, 13.6.11. 3.8.11. - & CAPITAL SHORTAGE?

DEPRESSIONS: End all depressions through the introduction of full monetary and financial freedom, as most important parts of freedom of contract, freedom of association, free enterprise, free trade, freedom to exchange, and of the right to supply oneself with work, without depriving anyone else of it - in order to support oneself and one's dependants, honestly and productively. - Once that freedom and its technical details are fully understood, by a sufficient number of activists, then it could be realised within hours to days at most. - Governments, on the other hand, do not know how to end any economic crises within months, years, or sometimes even decades. They can only enlarge or prolong them and hope for the best. Within the system of monetary despotism there is no cure for depressions or inflations. It is the cause. Any markets that are distorted by this despotism can only very slowly and painfully and, to a limited degree, adapt to it. Even in this they are hindered, as a rule, by further economic interventionism. No rulers or their advisors have any solution to offer - only false promises and hopes or "measures" amounting to further restrictions. Sometimes, they do even admit this. But even then they are still not prepared to get out of the way after first having removed all legal obstacles to self-help. - J. Z., 19.12.92, 29.4.97, 13.6.11. - FREE BANKING & UNEMPLOYMENT

DEPRESSIONS: How many million unemployed will there have to be in Australia before any of its politicians or the managers of their central bank will admit to have caused not merely some economic difficulties or a minor and temporary recession but a lasting depression, instead? - J.Z., 10.3.93, 27.5.97. - RECESSIONS & THE COVER-UP LANGUAGE USE OF POLITICIANS, CENTRAL BANKING, MONETARY DESPOTISM, UNEMPLOYMENT

DEPRESSIONS: It’s a recession when your neighbor loses his job. It’s a depression when you lose your own. – Harry S. Truman, quoted in THE OBSERVER. - RECESSION, CRISES, JOKES

DEPRESSIONS: Many thoughtful people are more and more aware that industrial depressions are caused chiefly by faulty control of money and credit. Most "reformers", or those who recommend measures to remedy this, turn to government for issue and control of money. It is my purpose here to briefly present an analysis and "cure" in the light of economic liberty. - Laurance Labadie, The Money Question in the Light of Liberty, in THE STORM, 4 & 5, 1977.

DERIVATIVE CAPITAL CERTIFICATES: Recent practices, leading to the current financial crisis, have given all of them a bad name. But one should keep in mind that at least some forms of derivatives can be and, historically, have been quite sound. For instance the mortgage letters (Pfandbriefe) issued upon mortgages (Hypotheken), in standard and relatively low denominations, made mortgages easier to attain and easier to repay. They created an additional and large capital market, comparable to e.g. the share market, for many productive purposes. If the mortgages themselves were sound, given only to people able and willing to repay them and given not up to the full current market value of real estate but only to a high fraction of it, then a temporary fall of the market value of such properties would not greatly matter. But credit policies, guaranties and interest rates granted in the US in recent years were often quite unsound, selecting and leaving debtors unable or unwilling to pay. - At least twice after very destructive wars Germany was largely rebuilt with the help of sound mortgage letters issues with gold clauses. - I do not know whether many other kinds of derivatives can be and are sound enough. I would suspect all that are only under government guaranties or subsidies or granted at the expense of taxpayers or under the often doubtful “securities that are acceptable to many “private” bankers. (All more or less “regulated” and controlled like e.g. most of our broadcasters and our “educational institutions”. Until governments provided subsidized student loans, the self-managed student loan associations had the highest repayment rate in the USA, I read many years ago, thus shaming the professional financial institutions and their “experts” to as well as the “supervising” and “controlling” institutions of the State. (How often have they prevented or rapidly ended a crisis rather than creating it, prolonging it and making it even worse?) A self-managed credit union by Academics and university students might be the most suitable form for such credits. Under governmental compulsory taxation and licensing, nationalization, forfeiture laws, eminent domain rules, subsidies, “free” services, supervision and controls of foreign and internal markets, banking and credit institutions and capital markets, and the many wars, civil wars, despotism and terrorist acts that territorial governmentalism lead to, naturally, no investment can be quite secure or secure enough until all kinds of statism is confined to its volunteers, so that only they would have to suffer under it. – J.Z., 18.10.10.

DESERT IRRIGATION & FINANCIAL & MONETARY FREEDOM: Compare the relevant article in PEACE PLANS 20, which I offer digitized - J.Z.

DESERTION & MONETARY FREEDOM: See especially the many writings of Ulrich von Beckerath on this subject. See e.g. appendix 18 in my "An ABC Against Nuclear War",

DE-SOVIETIZATION: Let us finally start de-sovietising and de-nationalizing our economy, starting with the abolition of monetary and financial despotism restrictions and their replacement by monetary and financial freedom. - At least voluntary taxation could become popular very fast. So could free monetary experiments that would abolish unemployment among their volunteers. - J. Z., 12/92 & 15.4.97, 13.6.11. - COMMUNISM, ANTI-COMMUNISM, LIBERATION, LIBERALIZATION, DENATIONALIZATION, CENTRAL BANKING, TAXATION, VOLUNTARY TAXATION, FREE BANKING

DICTATORSHIPS: I assert that e.g. the Red Chinese, Cuban and North Korean regimes cannot be easily undermined, or overthrown by a military insurrection or revolution or as a result of massive refugee streams, of as talented and productive people, to the rest of the world, as long as their monetary despotism, nay even monetary totalitarianism, remains largely unquestioned in East and West, including Taiwan and South Korea. There are an estimated 120 to 200 million unemployed in Red China alone! And close to 1 billion unemployed and underemployed in the world. Consequently, refugees and deserters are hardly welcomed anywhere. The communist regimes do not know how to employ and exploit them otherwise than as slave labourers. And the "democracies" or "free" countries tend to deport the escaped modern slaves back to "their" masters, exploiters, oppressors and mass murderous regimes. The realisation of monetary freedom could put all of them to work - to-morrow! It, could almost immediately, provide full and paid employment for millions and millions of refugees and of deserters. It would make them welcome rather than feared or hated. It would increase the division of labour and, with it, prosperity for everyone. It could provide full and harmless employment e.g. for former employees of the nuclear weapons and nuclear power industries, former soldiers and bureaucrats and even for politicians. It could also help to properly finance insurrectionist armies. Most libertarians are not yet ready for such discussions and subscribe to contrary myths, including some very prominent people that I could name but will not, since they share in this simply some of the all too popular prejudices. Most "employers" still consider themselves to be professionally "employers", although they are, under present conditions, quite obviously unable to employ millions of unemployed and although they do not even understand all or many of the interventionist legal causes of involuntary mass unemployment and how they could prevent or end them. - J. Z., Free after MFNL 5. - REMAINING DICTATORSHIPS. HOW TO DEAL WITH THEM?

DiLORENZO, THOMAS J., Central Banking as an Engine of Corruption - April 16, 2010. - "Jefferson concluded that "Hamilton was not only a monarchist, but for a monarchy bottomed on corruption," with a central bank being the financial centerpiece of the corrupt regime." - Roy Halliday

DISAGIO OR DISCOUNT OF NOTES: A temporary and small disagio of otherwise quite healthy and competitive medium of exchange, i.e., its free pricing and market rating in a free market for exchange media and a lasting and practically irreversible deterioration of a monopolized and coercive (legal tender and central bank issued) currency by the government are two very different things, The sound disagio, a free price effect or discount in a free market, will drive the competitive exchange medium to wherever or to whoever will have to accept it at anytime at par, i.e., at their nominal value. It does not interfere with sound value reckoning but is merely market-rating competing exchange media against sound value standards and sorting out the doubtful, unsound or inconvenient exchange media. It will thereby remove these exchange media from circulation having sped up their reflux to the issuer. In the process it will have brought about corresponding sales of goods or services, or a speedier repayment of another kind of debt owed to the issuer. Insofar it would be harmless for the holder, as longer as the issuer remains in business and able to deliver his goods and services or has some outstanding credits. - It was long practice at e.g. the Bank of England, that returned notes were destroyed and replaced by new ones. This might still facilitate checking the series of issues and their reflux. But their electronic scanning and accounting might make this easier and faster than before. The reflux of the discounted notes will make them disappear from circulation and with them their disagio or discount in circulation will disappear, if only the issuer remains ready to supply wanted goods, services or debt-payment receipts for them. The debtors of the issuing centre might also become contractually obliged to accept its notes at par, at least to the extent that their debts or due or soon due, so that they could immediately settle their debts with them. - An artificial and legal inflation, depreciation or devaluation of an exclusive and forced currency is quite another matter. Although by means of it and temporarily, the sale of goods and services will also be furthered, this happens only under illusions, false guidance and reckoning, and at the expense of all those receiving payments in such a currency. Prices do not rise evenly but unevenly. Prices for the same goods become even more different in different shops. Sometimes even the same goods are priced differently in different sections of the same store. In chain stores price increases often differ in their different branches or even sales rooms. Buyers notice such differences rapidly; even women and children show skill in finding price differences for the same goods in different stores and go for the relative bargains. The urge to purchase is, at least sometimes, spurred more by simultaneous price differences in the same locality than through generally low prices, that are everywhere the same. In an extreme case, I saw once one particular kitchen knife offered in the same department store, at 3 different locations and at 3 different prices. Through the unequal rise in inflated prices, the sales in those stores which have least adapted to inflation are increased most. Their stocks are then rapidly depleted and lead to reordering. But that will usually be possible only at higher prices. - What is most important in all this is that a naturally occurring disagio in a competitive and market rated currency  is temporary and does not expropriate anyone. Each holder can still present his note to the issuer at par and thus the disagio in general circulation will rapidly disappear, together with these notes. (Generally, exchange media with a discount are widely refused, their issue is thus either stopped or greatly reduced and the circulation of the discounted notes is rapidly reduced via the normal or speeded-up reflux to the issuer at par. - J.Z., 30.8.02, 14.6.11. But when legal tender forces notes into circulation and they remain nominally of equal value in debt payments, although already depreciated, and they have depreciated because their reflux is insufficient, then they tend to stay in circulation and their depreciation, expressed in the unsound value standard of such a monopoly money, tends to increase more and more, with its increased issue and circulation and can, nevertheless, be continuously forced upon every creditor in the country by his debtors as if it were still as valuable as it was when a debt was contracted. A temporary disagio of a healthy paper money in general circulation, will not prevent or reduce long-term stable-value investments and the production of long lasting goods. It will also not reduce the turnover of daily wanted consumer goods and services but, temporarily, even speed it up. - J. Z., transcript of p.11 of some undated notes, slightly revised, - CANCELLATION OF RETURNED NOTES ETC.

DISCOUNT OR DISAGIO OF NOTES: Obviously, an issuer would not have to or wish to issue his notes at 10% discount and soon after have to accept them at 100% from one of his customers or debtors. While some percentage of discount for his note issues exists, that HE would be willing to put up with, during their issue, seeing the normal profit margins he has when someone buys goods or services from him, provided only that such discounts do not reduce the number of acceptors for his issues and his chances for future issues. But it takes two to tango. His potential acceptors have another opinion towards his discounted notes. Thus, as a prudent issuer, not wanting to lose face, risk the reputation of his business and his ability as an issuer, he would stop further issues at the first discount occurring and take up further issues only once the discount has disappeared (together with the discounted notes, because he has accepted them at par in payments due to him and cancelled them or has not re-issued them). Potential acceptors would hesitate to accept any of his notes, when they are not standing at par with their nominal value in local circulation, unless they are among the few who could, either immediately or soon, use them against the issuer at par,. They would rather accept notes by his competitors, as long as these stand at par. Thus, even if the issuer were prepared to issue more of his notes, while they have a discount, he would find only a limited market for them. - Then there are the mass media and his competitors, eager to point out the discount for his notes. Also note exchanges and clearing centres would fast discover any real over-issues, which had caused a justified discount - instead of merely a temporary discount expressing an unwarranted distrust towards his notes. The note exchanges would have more notes by this issuer than he could offer in exchange in form of the notes of others. The same applies to clearing accounts. Others would have a clearing credit with him, in balance. He could not settle it with his clearing claims against them. That would not only be fast noticed but also fast publicised by the others. However, if only a mere small and temporary discount exists for some other reasons, although his goods and service cover are still sound, i.e., his goods and services are still wanted, at their prices, then this fact would tend to bring the discounted notes very fast back to his shop, for redemption in his goods and services at par. Thus, some "smart" businessmen, not yet satisfied with the speed of the reflux of their notes to them, might try to decry them, to speed up their return. But however unfounded the resulting and merely temporary suspicions would be, repeated experiences of this kind would stick in the memory of many people and lead to refusals to accept his notes at all or to more wide-spread discounts and, perhaps, ultimately, to a total rejection of his notes. People would tend to prefer notes that do not depreciate below their par values even if only upon rumours, not real inability to cover them fully with the wanted goods and services of the issuer. People prefer stable values, to the extent that they can get them. They do not want to be fearful or panicky regarding the means of payment in their hands. Even upon unfounded suspicious, they will tend to reject exchange media of others and this is their right. An issuer would be foolish to upset and lose many to most of his potential customers just to provide a few of them with bargain opportunities at his shop. - With stable currencies having driven out most unstable ones fast, prices would tend to be more stable, too and represent, due to easier and more certain sales, a lower price level, too. Thus we should expect less discount sales than now and lesser profit margins in sales. When profit margins are low then issuers could even less afford to issue his notes at a discount, even if he were to find enough ready acceptors for them under this condition. - J.Z., 16.6.94, 17.4.97, 14.6.11, 3.8.11. - According to some reports, some supermarkets are so efficiently run and have such a large turnover that their profit represents only 1/2 to 1 1/2 % of the retail prices and, nevertheless, the total amount of their profits is large. But, obviously, at such profit rates they could not afford to issue their shop currency at a considerable discount. - J.Z., 7.9.02. - & THEIR EFFECTS UPON FURTHER ISSUES & ACCEPTANCES

DISCOUNT POLICY: A sound discount policy of the central bank can stop inflation. - Popular opinion. - It is easy to inflate a legal tender currency by several hundred or even several thousand per cent p.a. but it is not so easy to stop or reverse this over-issue of forced currency by increasing the discount rate to several hundred or several thousand per cent. - Usually the discount rate of the central bank is raised only somewhat and only after the central bank has already over-issued its legal tender or fiat money. But no degree of deflation or credit restriction can make any degree of inflation harmless. It can only add to the difficulties already created by the inflation. Stagflation is one frequent result - the inflation goes on and so do the depression and unemployment. - J.Z., 2.4.97, 14.6.11. - & INFLATION, INTEREST RATE "POLICY"

DISCOUNT POSSIBILITY IS ESSENTIAL: The possibility of exchange media suffering a discount against their own value standard (or that of other exchange media) is a necessary feature of a free monetary system. It would draw depreciated notes quickly out of circulation. They would be rapidly paid back to the issuer who has still to accept them at par. This discount would also be welcomed by his debtors. To the extent that they are not obliged to accept them at par when they sell their goods and services, they might then even buy up depreciated notes of their creditors and with them pay their debts to him. They might have to present their creditors in this case with their receipts for such a currency deal, to prove that it went beyond their obligation to accept the creditor's notes in the sale of their own goods and services. The more any notes are discounted the more rapidly they would return to their issuers. With the returned notes the circulation and the discount would be reduced. It is obvious that, while the discount continues, new issues will be hard to impossible to achieve. People will simply refuse to accept them - unless they owe the issuer something. - J. Z., 77 & 97, 14.6.11.

DISCOUNTS OF GOODS & SERVICE WARRANTS, VOUCHERS & CERTIFICATES: If goods warrants were to suffer a small, local and temporary discount. then their issuers and the debtors of these issuers could counter this discount not only by continuing to accept the discounted notes at par from anyone and at any time, pointing this out and thus assuring to themselves more and more rapid sales while contributing towards the removal of the discounted notes and thereby their discount, from circulation. They could even go beyond this and accept the own notes at a premium, or, alternatively, all other means of exchange offered to them only at a discount or demanding a small premium for payments in them or a small penalty payment when their own notes are not returned to them in payment. Thereby they could more rapidly remove their somewhat depreciated notes from circulation and enable themselves to undertake further issues at par. Naturally, while the discount persists, in their own short term interest and in their long term interest as well, as reputable issuers, they would stop further issues. It would be foolish to continue offering the own notes at a discount, which most potential users would refuse to accept at all, since they would rather be paid in par-notes and par note payments are available from others, and then be satisfied with issuing them at a discount to a few, who, at the next moment, could use them at par against the issuer. - However, offering a premium on payment in the own notes or charging a fee when paid in foreign notes, will rarely be necessary to keep or restore the par value of the own notes. Perhaps it will be practised only in some emergency situations or during the introductory period. - But it is an additional measure available to speed up the reflux of notes and to restore them rapidly to their normal par value. The possibility of a discount, as a warning signal, is a necessary factor in this payment system. It is a sign that something might be wrong with the issue or its reflux and that some counter-action is required. For instance, if it happens, the issuers might arrange for a special sale to speed up the reflux of their notes. They might also charge a higher fee for short term loans they grant in their own currencies, for wage payment purposes or increase the discount rate when they discount sound commercial bills of their members. Another option would be to shorten the reflux period for all newly issued notes, until they have achieved a reflux period which would keep their notes at par. E.g., if they used a reflux period of 10 years, then many of their notes might become discounted because they are not rapidly enough streaming back to the store in repayment. A reflux period of 1 day only (like for cinema or theatre or sports events tickets) might maximise reflux but would be rather inconvenient for a local currency. Thus, somewhere between at least a week - if not a fortnight- and 3 to 12 months, is the optimal circulation period for any competitively issued exchange medium that is to retain its par value while it changes hands locally. - J. Z., 28.11.92, 16.5.97. Not all of them would, necessarily, have the same period for their validity.

DISCOUNTS OF PRIVATE OR COOPERATIVE EXCHANGE MEDIA: While a first discount for a competitively issued private exchange medium or current account (possibly and, most likely, happening only in wholesale trading) is still rather small, let us say, 1%, the few, who would still owe something to the issuer and would get access to a corresponding quantity of the slightly discounted private notes or bank accounts, would gladly buy them up in order to instantly pay their debt to the issuer with them. They could thus, at a discount of 1%, make saving of 1% of the remaining debt, thus repaid, on that day. Reckoned annually, their saving would be at the rate of 365% of the debt amount! Debtors would often jump to so reduce their debts. Whatever reflux option would still remain open would thus be quickly exhausted. If the discount was unjustified then it would quickly disappear, with the discounted notes and accounts being used as means of payment against the issuer and account holder. The larger the discount, the more widespread would be the refusals and the faster the still accepted notes would be returned to the issuer in payment at par, because he would be the only one towards whom they would, juridically, have "legal tender". - J. Z., 3/97.

DISHONESTY OF GOVERNMENTS: The dishonesty of governments can best be seen in their laws on coinage, exchange media, value standards, credit, clearing, banking, exchanges and securities.­ Almost no government has ever remained honest in these respects for very long. Not to speak from their openly and legally imposed tributes, thefts or robberies, called taxation. - J.Z., 6.7.91, 26.4.97, 14.6.11. - MONETARY DESPOTISM

DISINTEREST IN MONETARY FREEDOM: At present there seems to exist not even a single periodical or newsletter, in the whole world and in any language, which is exclusively devoted to monetary and financial freedom. That seems to indicate to what extent we are mentally still slaves of monetary despotism, unaware of the havoc it wreaks and of the rights, liberties and economic benefits achievable only through monetary and financial freedom. Look also at the overflowing shelves of periodicals in news agencies. Almost all the other and more or less trivial to comparatively unimportant interests are covered, often by quite a number of periodicals, and almost all but these scholarly interests are catered for in special scholarly quarterlies, annuals, etc., of which ten-thousands are published. Look also at the bulging shelves of bookshops and libraries. Hundreds of millions of books were published, hundred-thousands more are added annually - and yet there are only very few titles among them which deal somewhat with the monetary freedom options, although almost all people do daily handle the money of monetary despotism and suffer some or the other of its evil consequences. Moreover there are hundreds of millions of unemployed who do not comprehend why they are unemployed, and do not seriously try to find out the cause or causes and show no interest in the monetary freedom solutions offered to them by a few. - J. Z., 1.5.97. Then there is the fact that practically everybody, even the debtors, do somewhat suffer from inflations and yet the serf or slave mentality prevails in this sphere, with not even a small minority being properly organized to achieve monetary freedom. - J.Z., 12.9.02, 3. 8.11. - The PC & internet options have somewhat improved that situation in the meantime. - J.Z., 14.6.11. - APATHY TOWARDS MONETARY & FINANCIAL DESPOTISM & THE MONETARY & FINANCIAL FREEDOM ALTERNATIVES

DISTRIBUTED REPUBLIC, THE: Is Free Market Money Impossible? | The Distributed Republic - - Cached - 17 Mar 2006 – Yet this does not mean free-market money is impossible. The supply of Fed-money also increases, yet fed-money is "possible". :) ...

DISTRIBUTIONISM: Einstein's biographer reports that Einstein regarded it as obvious that 'human reason must be capable of finding a method of distribution which would work as effectively as that of production.' (Clark, 1971:559) ... - ... even a sensible philosopher .... stated approvingly that "Einstein is clearly aware that the present economic crisis is due to our system of production for profit rather than for use, to the fact that our tremendous increase of productive power is not actually followed by a corresponding increase in the purchasing power of the great masses.' (M. R. Cohen, 1931:119) - We also find Einstein repeating (in the essay cited) familiar phrases of socialist agitation about the 'economic anarchy of capitalist society' in which 'the payment of the workers is not determined by the value of the product', while 'a planned economy ... would distribute the work to be done among all those able to work', and such like." - Hayek, The Fatal Conceit, p.59. - Almost all, here Einstein, Hayek and some reviewers, and the main schools of economic, or rather anti-economic thoughts fail to distinguish between supposed free market and propertarian distribution under monetary despotism and the real free market and propertarian distribution under monetary freedom. In the former case, therefore, some come even to demand the abolition of the more obvious property rights and rights to freely exchange products. The second case would help to enlighten them but it is not freely practised and not even freely and widely taught, because it is outlawed. - Shop foundation and service foundation money, ticket money and clearing certificates would, much more obviously and quite sufficiently, distribute goods, services and labour - but upon property, free trade and free enterprise principles and practices, giving everybody the chance to use his capabilities, education, training and resources productively, to the own advantage and that of his fellow citizens, with each being rewarded in accordance to his contribution to the total wealth. - J.Z., 30.3.94, 26.4.97, 14.6.11 - PURCHASING POWER, CAPITALISM, SOCIALISM, MONETARY FREEDOM & MONETARY DESPOTISM

DISTRIBUTIONISM: In 1934 Mussolini declared that the "great goal" of fascism was "the distribution of wealth, so that the illogical, paradoxical and cruel phenomenon of want in the midst of plenty shall not be repeated." (Cited by Mathews, op. cit., p. 17.) He promised greater welfare, better education and health, more housing and a rising standard of living. But it was by means of the sacrifice of the individual to the State - at the expense of freedom rather than by means of it - that these laudable goals were to be achieved. In this respect there is too little difference between Mussolini and Lyndon Johnson … "We are going to take all of the money that we think is unnecessarily spent and take it from the "haves" and give it to the "have nots" that need it so much. (From Johnson's message of March 2, 1965.) - (Or, as Marx put it, "From each according to his ability and to each according to his need." - Johnson's statement was included in a White House speech of January 15, 1963. The full text appears in the Congressional Record, page 2227. Johnson has since claimed that he was talking about taking money from one government bureau and giving it to another. But neither the full text nor Johnson's subsequent legislative proposals (such as the rent subsidy) lent credence to this imaginative disclaimer. - Richard W. Grant, The Incredible Breadmachine, self-published, n.d., indexed, 286pp, p.168/69. - , COMPULSORY, FASCISM, WELFARE STATE, TAXATION & GOVERNMENT SPENDING, MARX, COMMUNISM

DIVERSITY: The concurrent circulation of several currencies might at times be slightly inconvenient, but a careful analysis of its effects indicates that the advantages appear to be so very much greater than the inconveniences that they hardly count in comparison, though unfamiliarity with the new situation makes them appear much bigger than they probably would be. - Hayek, Denationalisation of Money, 84. - Under full freedom for the issue of exchange media and corresponding accounts, combined with free choice of value standards, when, finally, enough and freely competing currencies are issued, freedom to refuse their acceptance and under free market rating for competing currencies, no more local currencies will be locally issued and accepted by most potential acceptors than they will find convenient and profitable to issue and accept. This process is continuously self-regulating. Suits that don't suit and shoes that don't fit won't flood the market, either and thus will not be an inconvenience to most people. - J.Z., 21.3.97, 14.5.11. - VARIETY & UNIFORMITY OF MONEY

DIVISION OF LABOUR.COM: Division of Labour: September 2007 Archives - - Cached - (1) Is there a market failure in a free-market money and banking system that a central bank could in principle remedy? (I.e. do we need a central bank?) ...

DIVISION OF LABOUR COM: Division of Labour: Free Market Money - - Cached - 11 Jan 2005 – Free Market Money. Larry properly points out that the dollar coin debate is about more than whether coins are better than paper (or …

DIVISION OF LABOUR: As a young man, still involved with career decisions, I thought once that a handbook was missing that would describe the great variety of different jobs then existing: ca. 100,000. Somebody else produced such a reference book in Germany, before I got around to it. Then, in the 80s, I saw in the window of a closed bookshop, in an airport, late at night, another guide, in English, to close to 400,000 different jobs. So much has the division of labour increased in about half my lifetime, so far. What significance has this with regard to monetary freedom? Division of labour depends upon free exchange. The more free exchanges are, the easier becomes division of labour. No one need be unemployed against his will or should be merely because some people want to uphold monetary despotism. I wonder how many different kinds of jobs can and will be listed once full monetary freedom has been introduced and practised for, let us say, 10 years? I also wonder how much of all the successes of division of labour and of advances in technology, science and management, was due not only through division of labour, far less to the money of monetary despotism but to the largely unmanageable freedom to clear that still exists even under monetary despotism and the corresponding relative easy to distribute what has been produced in what remains of a free market way, even in a mixed economy with all too many interventions and controls? To the extent that one can use even today's greatly diminished value of the paper value standard of a paper money merely as a standard for almost instant clearing of mutual debts, it is still good enough. Then its depreciation from day today does, mostly, not matter very much. To the extent that via the degree of clearing options that one can take up even today, one is independent from the availability of the government's forced and exclusive currency notes and coins, one is also independent from monetary despotism. Alas, creditors are today authorised to demand, whenever they want to, cash or legal tender rather than clearing. That presumed right of creditors to demand payment in a monopolized means of exchange does create difficulties, occasionally to often. The existing clearing banks are also licensed and controlled by the government and its central bank, to a considerable degree. If they were not, the none could altogether bypass the issue monopoly of the central bank and its banknotes or paper money and settle everything freely - by clearing only, including the issue and acceptance of clearing certificates in convenient monetary denominations. But deals in negotiable securities, especially those with a monetary character, are still legally restricted. Possibly no one in any country knows fully how many legal monetary, currency and credit restrictions do apply. Moreover, they are constantly changed, at least somewhat - and all but black market exchanges are subjected to the tribute gatherers. - J. Z., 9.4.97, 14.6.11. - THE PRESENT REMNANT OF FREE CLEARING

DIVORCE, FROM MONETARY DESPOTISM: Let us have freedom to divorce ourselves from the government's monetary despotism, i.e., especially its monetary legislation, its central bank with its issue monopoly power and regulatory powers, its legal tender paper money, but also e.g., from its compulsory taxation, protectionist policies, post office, railway and road monopolies, its wars against the poor and on drug users, its police and prison and jurisdiction monopolies etc. Let everyone be free to opt out of any or all of them - without being prosecuted for this, and let him then act at his own risk and expense - for his own benefit, in every sphere. Starting exterritorial autonomy for volunteers in the monetary sphere, during a severe monetary crisis, might be a good start towards a general liberation effort. - J.Z., 18.4.97, 14.6.11. - INDIVIDUAL SECESSIONISM, MONETARY REVOLUTION


DOLE: Michael Cobb, M.P., "Working for the Dole", in "THE OPTIMIST", March/April 86. - Cobb's article, like many others, proposes that the dole recipients should give something in return for the dole. He does not propose that the dole should be "returned" as a loan, that it should only be paid, in the first place, as an interest-bearing loan, one to be guaranteed by family and friends. He suggests, rather, that the unemployed be directed to do some community works - road works, gardening etc., to continue their entitlement for the dole. The dole representing roughly the pay for two day's work of unskilled labour, they should have to supply 2 day's worth of community work. - Assuming that they should not have to repay the dole, granted only as a loan, with interest (as they should have to, in my opinion) and assuming that the necessary self-help steps to abolish unemployment, even within a day, are not permitted, undertaken or even considered (I hold that monetary freedom offers this option), one should consider which is the most suitable "community work" for unemployed: The most important task for unemployed - and of all those concerned about unemployment - is, obviously, the abolition of unemployment. It could rightly be argued that the unemployed are not recognized experts on the abolition of unemployment. But then who is? Their task would initially be a simple clerical job, a compilation, study, discussion and learning job. It is a job that is much too large even for a large bureaucracy. During the Great Depression, there were over 100,000 submissions on how to overcome the depression. There was no machinery to deal with such proposals and in such quantities. There is still no such organisation, in any country, according to my knowledge. I hold, therefore, that the unemployed are probably the most suitable "labour pool" for this task. It is correct that among the unemployed, too, most people are not the studious type. But most of them can read and write, can't they? So they can search for and compile relevant information, even if they do not understand all of it. - So much has been written on the subject of unemployment that no single person can survey all of it in his lifetime. Consequently, this job has to be tackled in a division of labour process. At least for the initial stages and the intermediate ones, if not also for the final ones, no academic degrees and skills are required for this job - just reading and writing ability. - Instead of providing gardening or road labours, for 2 days a week, I would expect each unemployed to provide at least 4 pages of notes and references per week on the subject of unemployment. (Those with considerable education might have to supply, perhaps, 40 pages.) - These notes ought to cover a very wide sphere: Some unemployed might start with their contributions towards compiling a comprehensive bibliography on unemployment; others might start on abstracts, reviews and indexes, others on collecting, integrating, transcribing, translating and editing such contributions. Some might compile lists of unemployment subjects and research jobs already somewhat dealt with, while others might list of subjects and research jobs that have not yet been tackled or completed. - Some might just collect opinions, ideas, arguments and theories on unemployment - and related ones on economic crises, inflation and stagflation. - Who could or should show a higher interest in such questions? - After the legible transcription of all contributions (the job of some of the participants, each taking up a self-chosen job in this sphere), all contributions ought to be micro-fiched (digitized, if not already keyboarded into a computer. - J.Z., 14.6.11) and duplicated, with a set to be available for viewing in every Australian Employment Office. They should also be made available on floppy disks, CDs and on-line. The costs involved should be footed either by a levy upon all of them or by the Departments of Labour & Trade, or by the unemployment "insurance" systems. (Better still, by a self-help organization of millions of unemployed, with each paying a membership fee of at least, say, $ 10 p.a. - J.Z., 15.9.02.) - No copyrights are to be claimed for such contributions, i.e. other media are to be free to copy them. But each author should be at liberty to state name and address - and the type of work he or she is looking for, so that their contributions could also serve as advertisements for themselves and those reproducing their material should be obliged to mention their names and addresses and the jobs they want, unless they have made certain that the authors are no longer unemployed. Then the author's name would suffice. - Imagine the ca. 800,000 unemployed in Australia, or the by 1996 ca. 1 billion unemployed and under-employed in the world, collaborating in this job. That number would be enough, although, ideally, all the unemployed of the world should be stimulated to think about cause and cure of unemployment. - I think that the job could be tackled and finished fast enough by the unemployed of Australia alone. Between them, they could survey, copy, extract, abstract, index and discuss all the relevant literature, all arguments, theories and facts, in all languages and make them easily, fast enough and cheaply accessible in at least one of the affordable alternative media. - All their input, after eliminating duplications of labour and integrating the material properly and alphabetising this collection, would form a comprehensive encyclopaedia, archive or data bank on the subject. On large discs an automatic search engine could be included. - In the initial stage some duplication of this kind of study work would occur but this would not matter greatly. Later such duplication could be reduced through lists of studies and collections of ideas and proposals, of jobs already done and remaining to be done and through making these lists available to the participants. - Many small circles of unemployed could and should be formed to help them in these labours. Other people, who are interested, economists, students of economy, high school pupils, social workers, teachers, etc., should, naturally, be in no way prevented from contributing their bits of information: observations, ideas, theories, proposals, opinions, criticism and references. Some might merely compile QUESTIONS like: What individual rights are involved in tackling the problem of unemployment? - For instance, do people have the right to supply themselves with work, without depriving anyone else of work, by undertaking all the organisational, technical and economic steps required for this purpose? - What defence implications would full employment have? - What is the relationship between unemployment and inflation? - What is the effect of minimum wages, maximum wages, of wage control? - What effect have unions had on employment, labour legislation, monetary legislation? - Is there a relationship between machines and automation and computerisation and unemployment? - What theories do exist on the cause of unemployment? (These should perhaps be numbered for easier reference.) - What cures have been proposed for unemployment? (To be numbered, too.) - What answers and refutations have been supplied to each of these theories and proposals? - What doubtful points remain on any of these? - Is it possible that a whole army of conscripts of a dictatorial regime could desert - and employ itself productively or be integrated in the process of production, within a day or two? - What steps are required for this? - Could hundred of thousands to millions of refugees undertake the organisational, monetary, financial, entrepreneurial steps, if freed to do so, to support themselves by their own efforts and become assets for the guest country, rather than being a burden for it? Could this be achieved in a very short time? - Are there other writers than Ulrich von Beckerath who have studied this problem for e.g. deserters and refugees and made detailed proposals for self-help for them? - What role could well organised workers' coops play in the abolition and prevention of unemployment? - What role could Theodor Hertzka's "open cooperatives" play? - What would be the effect of Henry George's reform - and of other land reform proposals, if realized? - Would any kind of land reform have really very much influence upon the rate of mass unemployment? - Which employment programmes can be realized tolerantly, voluntarily, as experiments? - How fast could self-help employment schemes of different kinds be realized? - Must full employment cost money? (See the monograph of that title by Ulrich von Beckerath, on - Should prize money funds be collected by public subscriptions, for the best employment programme? - By what standards should it be judged? - Who should be the judges on such questions? - The unemployed themselves - or those chosen by them for this purpose? - How should these programs be tested? - Only by theoretical discussions or also be free experiments among volunteers? - Is there such a right as the right to supply oneself with work? - Should there be full freedom to experiment, among volunteers, at their own expense and risk, with measures to provide additional employment? - Should the unemployed and their dependants be at liberty to opt out of any present legislation (enforcing e.g. compulsory unionism, compulsory licensing, wage and price controls, protectionism, monetary despotism) that prevents them from supplying themselves with work? - Are all the unemployed, most, or many, or, anyhow, too many, just lazy, i.e. unwilling to look for work - or "dole bludgers" as they are called in Australia? - Should unemployment be subsidised? - Is it an insurable risk? - Can there be such a thing as a sound insurance against unemployment? - Are charities or tax levies the best responses to help the unemployed? -  What definitions do exist of unemployment? - Which ones of them are false or only partly right and which ones are true? - What slogans and catchwords exist on the subject? - What is their truth content? - What doubts and questions remain on unemployment? - Is there a relationship between central banking and exclusive and forced currencies by central banks and unemployment? - What laws and regulations, if any, cause unemployment? - A listing of such questions could, by itself, employ many and be challenging to many others. - All ideas on the subject of unemployment and all counter-suggestions and arguments should be systematically registered, together with their references, all criticism of them, all refutations and all supporting arguments and discussions. - Everything worthwhile that anyone has written on the subject should be registered not only under suitable headings and cross references but also under his or her name, at least in abstract form - and while the problem of unemployment is (at least in the opinion of most people) still unsolved, every opinion on this subject should be considered worthwhile, no matter how hare-brained or absurd it may appear to some others or to supposed experts. - There are at least 150 theories on depressions. They ought all to be registered, together with their references - and counter references. - Since inflations do also cause mass unemployment, all theories on the cause and cure of inflations should likewise be gathered. - When hundred thousands work on such a task, it becomes solvable, not in further generations but in months to years at most. - Why pick on the unemployed for this task? - They have got the time! They ought to be interested in their own major problem or ought to be induced to interest themselves in it. Moreover, they are being paid so far, without giving value in return, not even any thought. All the reading and writing they are presently expected to do consists in filling out some forms. - I hold that the first responsibility of the victims of any abuse is self-help and the first requirement for self-help is self-enlightenment. For an individual full enlightenment is almost impossible to attain in this sphere - or the person would have to be very lucky. The jewels of truths on unemployment are buried in the muck of Aegean stables. - If they unemployed could, by this method, be induced to tackle the problem of unemployment systematically, spending as much time on it as on their entertainment, sports and hobbies, then, I believe, they would soon no longer be involuntarily unemployed because then the problem of unemployment would soon become solved or discovered as having been solved already long ago, in some or the other obscure writings. (I hold that my PEACE PLANS series has published some of these.) Either new methods to overcome unemployment would be developed, or, much more likely, long existing proposals on how to solve this problem would finally be sorted out, like wheat from the chaff. - Leaving the problem to "authorities" and "experts" will leave it unsolved for another few centuries! They merely pile expert reports upon expert reports - each ignoring or misunderstanding the contributions of others, with no serious attempt being made to integrate all their contributions - and to confront contradictions. - Book-length treatments are, obviously, not enough. A scientific approach is needed, one that would include every bit of relevant information and most books on the subject have so far excluded much more relevant information than they included. - I hold that every layperson can and should here make his or her large or small contribution to this comprehensive and, therefore, scientific approach and be it only by registering some more prejudices and myths on the subject. After all, most of the legislation, which according to the evidence that I have seen, is behind most of the unemployment, is based on myths and prejudices and most of the volumes written by "experts" are full of them. - Even after the greatest possible effort has been made to clarify the situation theoretically, contradictory theories, predictions and observations will remain. Thus the experimental method will, ultimately, have to decide: Those who can agree on any particular employment programme will have to claim and realize the right to practise their program among themselves and tolerantly, that is, at their own expense and risk, while others would engage in their own chosen experiments. All these experimenters are to be exempted, upon their demand, from all laws, regulations and court decisions that would limit their experimental freedom and which are not required to preserve the same freedom associational and experimental freedom for others. - The unemployment offices are to be obliged to help in the process, e.g. by allowing unemployed to write their contributions there, by covering the digitizing or duplicating costs, costs, by exhibiting the accumulated files, containing all previous submissions and making at least one computer  available in every office for this purpose. After all, these small extra expenditures are to make the huge costs for their services soon altogether superfluous. - This process does not only require knowledge as input but also ignorance, myths and prejudices - and who doubts that the unemployed, as well, have to offer these in large quantities? Their suffering would only be increased and or prolonged by these, their errors, myths and prejudices (and those of most other people) remaining unrecorded and not systematically challenged and refuted in the process. - As my personal contribution, I refer to Peace Plans Nos. 9-11, 19C and 40/41 and others of my monetary freedom series as containing many to most of the insights and proposals required to overcome involuntary mass unemployment fast, in my opinion. But these solutions are unlikely to become widely enough recognized until all proposals and ideas on this subject have been thoroughly examined and the examination results for all of them have become easily accessible to anyone interested - which can now be best achieved via CDs, DVDs, external HD's and online publication. - J.Z., 9.6.1986 & 21.5.97, 15.9.02, 14.6.11, 3.8.11. - WORKING FOR THE DOLE, UNEMPLOYMENT INSURANCE & BENEFITS, FORCED LABOUR

DOLLAR VIGILANTE, THE: The Dollar Vigilante - TDV Blog - The Separation of Money and State - - Cached - 7 Jan 2011 – And there is no doubt that dozens of other competing currencies would flood in and within a matter of months we'd be on a free market money ... - That one sounds promising. - J.Z., 24.7.11.

DOUBLE CURRENCY, BOTH LEGAL TENDER: In one of the mini States, Andorra? the Spanish Peseta and the French Franc circulate both, with legal tender power, side by side. I do not know whether this is under a fixed or controlled exchange rate against each other or under a freely fluctuating one. In my hometown, West Berlin, for a few years, there where also two currencies used, the Eastern Mark (Ostmark) and the Western Mark (Westmark or D-Mark). Their exchange rate fluctuated daily. The daily rate was determined and published by one authority. Many exchange offices exchanged them for each other and prices were often marked in both currencies. The exchange rate fluctuated around 1 Western Mark for 5 Eastern Marks. Many West Berliners worked in East Berlin and were paid in Eastern Marks. Some were partly paid in Eastern Mark and partly in Western Mark. Both currencies were legal tender and on both sides competing currency issues were severely outlawed and all too effectively suppressed. - J. Z., 19.3.97. The monetary freedom alternative requires parallel currencies, all optional and market rated in general circulation and with legal tender for them applied only against their issuers. - J.Z., 14.6.11. - Compare: BIMETALLISM, PARALLEL CURRENCIES, MONETARY FREEDOM.

DOUBLE EARNERS: Many unemployed are opposed to there being 2 or more wage earners in a single family. They want these jobs to be shared out, reducing all families to one earner only, under the assumption that there are only a limited number of jobs and that these should be more fairly distributed. - Unemployed are or should be aware that for each of them there are many people who would gladly employ them in one way or the other - if only they would not have to pay them for their labours. They could keep them at work, sweating, for 8 hours or more a day. There is no shortage of jobs that people want done. But few of these people can afford, under present conditions of monetary despotism, to pay full or any wages for these labours or can, through sales on a market restricted by the money monopoly, easily recover the wages and salaries they paid for productive labours. Thus the tacit assumption, that there is not sufficient work to be done, that work opportunities are only available in a fixed quantity and that this quantity ought to be fairly rationed, and that therefore "double earnings" within a family ought to be outlawed, while there are couples of whom both are unemployed, is quite wrong. Not an insufficiency of opportunities for productive work is the cause of unemployment but the insufficient supply of sound exchange media is, to potential employers, which does not allow them to employ and pay for all the labour they could productively employ - if only they could readily sell their products or services. Under monetary despotism, with its frequent under-supply, always an under-supply of sound exchange media, they are in difficulties with these sales and thus have to cut down their operations and the number of their employees. Lastly the consumers pay for the jobs. If the potential and willing consumers as well (and largely for the same reason) are insufficiently supplied with exchange media, partly because they have been made unemployed, too, or they are inclined to save as much as they can rather than spend their limited funds and incomes, then they cannot keep the production process going at or close to its full productive potential, with full employment, in paid work, at market rates, for all able and willing to work productively. - The consumers, as producers themselves, are then not supplied with exchange media to the extent of their willingness and ability to work productively, at market rated wages and salaries, producing goods and services at market rates. The central bank functions, under monetary despotism, in practice, as a nation-wide network of barricades against numerous possible and desired exchanges. - Only those exchanges can take place that it is able and willing to mediate with its monopoly money and its arbitrary and mismanaged paper money standard, plus those exchanges that are made possible through non-cash and clearing transactions that are permitted to be built up upon this monopoly cash, but which can at, any time, be made largely impossible through sudden and additional cash demands for the central bank's monopoly money, while the debtors are not free to pay with their clearing options instead. - The need for goods and services is, essentially, quite unlimited. For instance, each unemployed needs and wants numerous goods and services - but has not got the purchasing power to buy them. X suppliers would only too gladly sell them these goods and services - if only they would be paid for them. The potential for producing more of these goods and services is there - but not sufficient effective demand, i.e., needs and wants supplied with purchasing power. - Almost everyone could fill out a long shopping list for goods and services he would like to buy, if only he could afford them. For most such lists would run up to thousands, if not ten thousands of dollars per annum, to more than they have saved or expect to earn in extra funds in the near future, under present conditions. To produce these goods and services requires labour. But that labour will only become employed, in market-rated and paid jobs when those with the ready for sale goods, services and labour can express their needs and wishes for this available labour with money-like claims upon the own ready for sale goods, services and labour. Both sides, those who want things and those who want to supply things, have unlimited wishes. But because of the lack of sufficient exchange media the unemployed workers do not get jobs and the retailers do not get enough sales. When there are no hindrances to monetary or clearing exchanges, then the workers and their employers should become fully employed in producing wanted goods and services and the retailers in being paid for distributing the produced goods and wanted services, with all of them being paid by competing alternative currencies to the extent that they do offer anything that is useful and wanted. The producers should be their work abilities and readiness, and working time and energy and basic resources like machines, work places, transport facilities, electricity supplies etc. to produce all wanted services and goods.. The natural condition should, therefore, be overwork for all people whose wants are not yet satisfied, not lack of work. One does not have to share existing jobs or invent new goods and services in order to keep the present workers fully employed towards the satisfaction or their wishes for goods and services. Almost no one feels that he has quite enough of those presently offered. - Workers in the US earn about double as much as workers in Germany do. They do not feel over-supplied with goods and services. Their wants have simply increased. That means that more must be produced for them to satisfy these wants. Nevertheless, presently (ca. 1958/59) ca. 2 million of them are unemployed. - One should also take into consideration that most American consumers are in considerable debt. This means that their current earnings were insufficient to pay immediately for the goods and services they wanted. Thus they acquired them on credit. To repay their debt, they will have to work for a considerable time and much of their earnings in the future will have to be used to pay their debts. In other words, they need to produce goods and offer services to clear their debts, since all debts can lastly only be paid in goods and services. (That is, from monetary earnings from the sale of their goods and services, including labour.) Here, too, is a large work opportunity, for these creditors want to be paid. - In Asia and Africa the average standard of living is much lower than in Europe and in the U.S. In other words, their needs for goods and services are much higher than ours, in Europe or those of the people in the US. Certainly, there is no shortage of jobs that needs doing in these countries. Nevertheless, millions of their people are unemployed. Consequently, unemployment is not due to lack of jobs that need to be done. - The difficulty lies not in finding work that needs doing or workers able and willing to do it but in arranging for and achieving the monetary payment of work that needs to be done, that is wanted and that ought to be done, as fast and as efficiently as possible. - The problem lies not in insufficient needs but in insufficient effective monetary demand, i.e. in the lack of purchasing power. Only needs that are supplied with purchasing power can act as effective demand on the market. - If everybody could pay for his needs with sound money, then all unemployed would soon be employed, at market wages. - Everybody's supply with means of payment ought to be restricted only by his ability and willingness in the past, present and near future, to give equivalent goods and services in return - corresponding to his role in the division of labour process. Then his spending would provide income or work for others and would, at the same time, mean work for himself. People wanting to spend more would have to work more or would have to work more productively. Neither case would lead to unemployment. Only the leisure periods of very productive people, who limited their wants, might become larger. - What is limited in our system is effective monetary demand, i.e., needs and wants supplied with purchasing power. The hungry person is not hungry because there is not enough food but because he has not the money to pay for it. He has no money to pay for it because there is insufficient money to pay him for the labour that he would be able and willing to give in return. - Translation of some German notes by J. Z., most likely from the end of the 50's, on double earners, slightly changed 11/85, 21.5.97, 15.9.02. - & UNEMPLOYMENT, DIS.

DOUG'S BLOG, | Doug's Blog - ... - Cached - 30 Nov 2009 – The market process of free market money has been removed and cartelized ... Without free market money you just have to learn how to lose ...

DOUGLAS, MAJOR, & GESELL, SILVIO, were, like Marx and Engels, totalitarians with regard to the monetary "reforms" proposed by them. Instead of exploring and extending monetary freedom options, they merely aimed at making monetary despotism complete and everlasting, all in the name of "reform". Social Credit people were and are so blinded by their wrong model that they imagine that private banks enjoy monetary freedom now and are abusing it and that therefore the State ought to acquire and practise a severe money monopoly - often combined with price controls, to prevent inflation and to enable it to provide a "social dividend" for all, out of the money issue privilege. While they taught this nonsense, the money monopoly of the central banks had been on the statute books for many years to decades and it is still firmly established there and in the minds of all orthodox economists. - Marxians made a similar mistake, by seeing "monopolists" in competing capitalists and by aiming to abolish this "monopolism" by the legal or revolutionary establishment of a super-monopolism, with the State as the only employer, capitalist and financier. - While such errors, prejudices, false assumptions and conclusions do still spooks in thousands to millions of heads, many with the right to vote and thus to impose their views, attempts at monetary reform have a chance to be accepted and realized at least at first only among small groups of interested and sufficiently enlightened volunteers, or in certain revolutionary situations, where a few enlightened monetary freedom advocates could, quite suddenly, become monetary freedom practitioners, providing extra jobs and sales to those who so far had no knowledge of or interest in monetary freedom. In a crisis situation they might accept its fruits, as they have previously accepted, at least temporarily, emergency money issues. If the monetary freedom thus practised is locally complete, remains uninterrupted long enough and is, therefore, obviously successful, then it will not only be practised temporarily, by a few, but will come to spread, fast, even among those who do not understand or do not even want to know why it works and who have still numerous prejudices against it in their heads. A successful practice can advance beyond theoretical understanding and prejudices in the heads of the men of the street and even most of the experts. Alas, so can some unsuccessful practices and ideas. Compare e.g. the inscription on banknotes: "pay to the bearer ...", which persisted on newly issued banknotes for years to decades after their rare metal convertibility had been abolished. Compare the revival of mercantilist and protectionist notions and restrictions -  even after decades of experiences with large degrees of free trade. - Religious or ideological blockheads of one kind or the other will, probably, be with us if not forever then for a long time. Thus we ought to establish a "meta-utopian" (Nozick) or panarchistic framework within which each "money reformer", "political reformer", ideologue or true believer can have the money system and the governmental or non-governmental free society of his or her own dreams, at their own expense and risk. That would leave also the various groups of more or less enlightened monetary freedom advocates the chance to realize own ideas, methods and practices. "Thou shalt recognize them by their fruits!" - J. Z., 20.4.93,1.5.97. - While the literature of the faithful followers of Douglas and Gesell is vast, texts that are critical of their proposals seem to be rather scarce. - J.Z., 14.6.11. - DOUGLAS, SOCIAL CREDIT, SILVIO GESELL & HIS STAMP SCRIP.

DOUGLAS, MAJOR, ERRORS IN THE MONETARY SPHERE: I micro-fiched some texts on this subject in my PEACE PLANS series. See in my LMP catalogue e.g. under LOGAN, John and TAYLOR, David. - Two books criticizing Social Credit ideas, one by F. J. Docker and one by John Lewis, were micro-fiched by me in PEACE PLANS No. 1042. I will not attempt to include their arguments here. - J.Z., 14.6.11. - See also PEACE PLANS 656, 740, 793 & 906. - See also under CREDIT CREATION & DOUGLAS FALLACIES in my LMP catalogue of PEACE PLANS issues.

DOWD, KEVIN, A Voluntaryist Path to a Free-Market Money.” - Monetary Economics - - Cached - The Voluntaryist, Vol. 63, August 1993, pp. 1, 2-7. Articles on the gold standard. “Gold Standard”. ...

DOWD, KEVIN: Lessons from the Financial Crisis: A Libertarian Perspective - "My topic this evening is the current financial crisis. My theme is that the Classical Liberal perspective can help us both to understand the crisis and to find a way of out it." - Roy Halliday, in section on Government-Regulated Banking

DOWNSIZEDC.ORG/ETP/HONEST-MONEY: Free Competition in Currency Act - - Cached - Creating a free market money system would also have one other benefit. It could help to End the Fed, by making what the Fed does increasingly irrelevant. ...

DOWNSIZEDC.ORG: The Federal Reserve: Protect yourself from an unconstitutional ... - - Cached - 17 Feb 2010 – allow the creation of a free market money system parallel to the Federal Reserve system * prove that we don't need the Fed ...

DRUCKENMILLER: Druckenmiller Calls Out The Treasury Ponzi Scheme: "It's Not A ... -  - Cached - 17 posts - 14 authors - Last post: 2 Jul - What we really need is money divorced from ALL government issuance and interference - free-market money, in other words. ...

DRUG LAWS: Seeing that much cash ends up in the hands of drug dealers and that for them cash deposits and normal bank transactions are made difficult and could lead to their prosecution, the drug trade promoted by anti-drug laws and corrupt politicians, who benefit from them, combined with monetary despotism, may lead to so extensive hoarding of cash that this could lead to deflationary effects like sales difficulties combined with mass unemployment or depressions. - J. Z., 13.11.92, 15.4.97. - MONETARY DESPOTISM, RESTRICTIONS OF CASH TRANSACTIONS, ­MONEY LAUNDERING, HOARDING & DEPRESSIONS

DUEHRING, EUGEN: His teachings are a mixed bag, quite apart from his irrational antisemitism. In some passages, for instance, he is in favour of panarchism and in others against. In some he is for monetary freedom and in others against. Sometimes he favours Free Trade and sometimes Protectionism. Sometimes he favoured trade unions and sometimes he opposed them. Sometimes he wrote like a statist and sometimes he opposed statism. Ayn Rand would have charged him with inability to make up his mind. - Nevertheless, his writings are often thoughtful and thought provoking. One can somewhat benefit from them by reading them very critically. He was vehemently attacked by Marx and Engels. Some would consider that to be a recommendation. - J. Z., 3/97.

DUNCAN, ANDY, The Ethics of Money Production: Accessible and Wise- December 16, 2010. - "An essential book to plug this observational gap is The Ethics of Money Production, by Jörg Guido Hülsmann, which is freely available as a PDF from the Ludwig von Mises Institute." - Roy Halliday, in section on Genuine Money.

DUNCAN, TOM, Atlas Sound Money Project » Blog Archive » “Free Market Money ... - - Cached - “Free Market Money – Instead of Political Manipulation”. Future of Money, Popular Articles — By Tom Duncan on April 21, 2010 at 2:46 PM.

DURELL JOURNAL OF MONEY & BANKING: In 1989 it started out in a very promising way, under the leadership of Dr. John W. Robbins, who would have steered it into the direction of an institute, library and seminars for the study of monetary freedom options, too and would have freely accepted articles on the subject for the D. J. He even invited me to submit an article on the older monetary freedom advocates. However, I dallied, being involved with x other projects, and before I could get around to respond to this opportunity he was already, somehow, "eked" out, as I merely suspect, from this rich, $10 million foundation, by others, probably more skilful in power and position grabbing. The best people rarely succeed in such struggles. (Compare Hayek's remarks in The Road to Serfdom, on why the worst tend to get to the top. As a result, and judging by the index of articles published in the Winter 93 issue of this journal, its articles of some monetary freedom interest have 19already been greatly diminished, from 16 during 1989-91 to a mere 2 during 92 - 93. Good luck to anyone trying to reverse that trend. The journal is supplied free to those who ask for it in the U.S. and for $ 10 p.a. to foreign addresses. Quarterly, from the Durell Institute of Monetary Science in the Harry F. Byrd Jr. School of Business of Shenandoah University, 1460 University Drive, Winchester, VA­22 601-5195. Tel. (703) 665-5432. Fax: (703) 665-5432. - Let me stress that I do KNOW nothing about its internal power struggle but that I SUSPECT a lot merely from its $ 10 million­ foundation resource and the change of staff and contents. The same could have happened under present conditions to any other such institute and publication in any other country. The "Zeitgeist"­ asserts itself - no matter what ignorance and misery and bloodshed it helps to support. New countervailing institutions and channels to liberty, have to be established, like the microfiche path, or the CD one. Finally, they would have to be fully and optimally used. Begin your freedom to issue notes and clearing house certificates etc. with your present freedom to issue fiche, floppies or CD-ROMs containing monetary freedom information. Or, even with mere local tokens for the tourist trade. I do not know whether this journal still exists by now. The last issues that I had seen, many years ago, had become quite uninteresting to me, just like most other orthodox banking magazines. - J. Z. note in MFNL 5, amended 5.9.02, 14.6.11.


[Home] [Top]