Excerpts from Sacred Economics by Charles Eisenstein The Gift Economy; Monetary Policy: “As theorized by Silvio Gesell in his 1906 masterpiece, The Natural Economic Order...[An ideal for a decaying currency] Our goods rot, decay, break, rust, so only if money has equally disagreeable, loss-involving properties can it effect exchange rapidly, securely and cheaply. For such money can never, on any account, be preferred by anyone to goods...His proposal would force money to circulate. Gesell saw the interest-bearing property of money a brake on prosperity. As theorized by Gesell, money afflicted with loss-inducing properties ceased to be preferred over any other commodity as a store of value. It is impossible to prove, however, that the rejuvenating effect of these currencies came from Demurrage and not from the increase in the money supply, or from the economically localizing effect of a local currency such as the Worgl. America almost passed a similar type currency during the Great Depression with the back of Irving Fisher, a bill was introduced in both the House of Representatives and the Senate that would of issued one billion dollars of Stamp scrip nationally, the Cotigan-LaFollette unemployment relief bill (S.5125). Senate Bill 5125 never came to vote, and a month later Roosevelt vanned all “emergency currencies” by executive decree when he launched the New Deal. According to Bernard Lietaer, the reason he did this was not because the local and state currencies wouldn’t be effective in ending the Depression, but because it would mean a loss of central government power. Negative Interest Currency ( A Decaying Currency Model) on reserves is compatible with existing financial infrastructures: the same commercial paper markets, the same inter-bank money markets, even, if we desire it, the same securitization and derivatives apparatus.”
Posted on: Mon, 10 Jun 2013 16:19:47 +0000
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