Value-Based Money

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Description

Uli Kortsch:

"In short, money creation would become value-based instead of debt-based. Value-based money is also often called “sovereign money” in the literature. Based broadly on an objective of price stability (and as explained further below, controlled by a Monetary Commission), Treasury would issue money for deposit into its account at the Fed, which would be used for part or all of the following: payment toward the federal budget, payment for per-capita-based transfers to states, and payments directly to citizens (e.g., a negative income tax could be used). As Thomas Edison famously observed in an interview reported in The New York Times in 1921: “If the Nation can issue a dollar bond it can issue a dollar bill. The element that makes the bond good makes the bill good also. The difference between the bond and the bill is that the bond lets the money broker collect twice the amount of the bond and an additional 20%. Whereas the currency, the honest sort provided by the Constitution pays nobody but those who contribute in some useful way. It is absurd to say our Country can issue bonds and cannot issue currency. Both are promises to pay, but one fattens the usurer and the other helps the People.” (via email)