Greco Says Credit Money, Not Gold, Is The Way To Go
May 27th, 2007 · by Bob Meyer · 3 CommentsCurrency expert Thomas Greco says many people these days are arguing for a return to using gold (or silver) as the primary exchange medium. But that would be a mistake in his estimation.
“To revert to using such commodities as means of payment would create more problems that it would solve,” according to Greco. (Part III of his book, Money and Debt explains the need to segregate the typical monetary functions and shows how to do it.)
Just because credit money has been monopolized and perverted, that is no reason to abandon it and revert to more primitive forms. Credit money instead needs to be liberated and perfected, because credit money is a higher form (has evolved further) than commodity money like gold.
Greco believes that demanding gold as payment means you are not willing to trust your trading partners. A trust should be based on relationship history, past performance, prudent judgement, and a willingness to take some risk.
“By organizing this process within credit clearing association, we can liberate the ‘credit commons’ and mitigate the risks of default, while at the same time, reducing our dependence upon the dysfunctional political money and banking system,” Greco believes.
Thomas Greco is currently lecturing around the world on a exhausive 6-month trip.
For more information on Thomas Greco, see his blog.
Greco
This entry was posted on Sunday, May 27th, 2007 at 7:21 am and is filed under Marketing, Purchasing & Financing, Tom Greco. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
May 28th, 2007 at 10:04 pm
Dear Mr. Meyer -
While we certainly can discern that a “better” monetary and credit system exists in theory, the sad reality is that the current global fiat system, albeit intrinsically bankrupt (see Open letter to Meyers June 20 2006), is controlled by a veritable death grip by the captains of banking and privilege - the heirs of the actual perpetrators who illegally initiated the woeful system that we are today saddled with. (See Google video - The Money Masters)
My personal conclusion is that the current system will get far worse before it bursts like a pent-up dam (read bubble), and prior to which gold-based public and private currencies and banks will play an increasing role in bridging the chasm of destruction that lies ahead. It is for this reason that I cannot advocate that citizens and small businesses simply ignore gold until (and IF) the redesigned money system(s) of Tom Greco and Bernard Lietaer come to pass.
As a part time investigative journalist, I have written about a global gold price conspiracy at the highest levels of central banking and monetary control that is now being undermined by the legal actions of the Gold Anti-Trust Action Committee-GATA (See Where’s The Gold? Part 2 & Part 2 - http://catalysthouse.com/lvtribune.html. GATA’s aggressive actions now threaten to expose the entire house of cards upon which the current global fiat system rests, and push gold even higher as the current system accelerates further into meltdown.
To paraphrase GATA’s founder, Bill Murphy, a return to a gold standard system is now more feasible than ever, but is nonetheless politically incorrect. But politics be damned, I propose that gold-based banks and currencies can be a reliable vehicle for safe liquidity as the current system unravels - e-Gold.com and GoldMoney.com being prime examples of next-generation gold standard digital banking.
The existing political structure can be expected to resist any shift to a gold-based financial system because it will make the welfare state impossible to maintain. The welfare state depends upon the government’s ability to defraud people by printing money or, worse, gunning the economy through a reckless credit expansion. The Federal Reserve has opted for the latter course since 1982, and it will soon lead to a devastating crash and depression.
In recent times I have seen certain private gold-based currencies indicted on trumped-up charges, e-Gold and Liberty Dollars come to mind, and I am reminded of a quote from my old friend and former Washington lobbyist-colleague, Adrian Cronauer (Good Morning Vietnam!): “If you are catching flack, my dear, you must be on target!”
I do hope and pray that the money visionaries can someday usher in a new world of credit banking that works for us, the people, instead of the money-master bankers, but in the meantime I’ve got my bullion and my e-Gold and my GoldMoney.
Very Sincerely,
Lynnea M. Bylund
President
The Barter Catalyst Initiative
Catalyst House, Inc.
www.CatalystHouse.com
May 29th, 2007 at 2:23 pm
Dear Lynnea, Thank you for your feedback. Your efforts in this field are noteworthy and we appreciate your time and effort in sharing with us this information.
May 29th, 2007 at 5:04 pm
Thank YOU BOB - the BarterNews Blog is my favorite business blog! LB