Oldystunde - einmal englisch

verfasst von Oldy, 09.12.2000, 04:32

Weil ich doch beim Elliott-Treffen über Wörgl und (alternatives)
Geld reden soll, bringe ich hier einmal eine ganz kleine
englische Kostprobe, wo die zwei Punkte wie stabiles Geld
aussehen muß, ganz einfach gezeigt sind und dann auch
gesagt wird, wie es in Wörgl gemacht wurde und wie es
jetzt gemacht werden wird. Wo und wann, das ist noch die
Frage, aber das Prinzip ist in diesem kurzen Beitrag voll
erklärt meint der Oldy

The do and do not's of (alternative) money.

This is a free translation of some work that was done by a few German scholars and should ideally apply to all money not only alternative one.
1) Money should keep its value or purchasing power indefinitely. The value should not be tied to a single commodity but measured by an index like a cost of living index or an index of wholesale prices.
2) Money should have some moving force applied to it to keep it in circulation. This cannot be done by moderate inflation, because this destroys purpose number one.
These two simple statements describe the crux of the matter and while the first is self explanatory the second one needs some clarification and some practical way to apply the moving force.
Since World War 2 the moving force was always moderate inflation in nearly all countries of the first world and high inflation only hit the countries of the second and third world. Even a country like Switzerland with the most stable currency of the world experienced a loss of three quarters of the value of the Swiss Franc since then. As long as the moving force is not applied in some other way this is the best they can do and the worst is that either inflation goes out of hand or deflation kills the economy.
This other way was stamp scrip in Woergl or periodic re-minting during the times of the Gothic and there was also some demurrage on the old clay tablets that were used as currency in ancient Egypt.
In Woergl this demurrage (one could also call it a tax on idle money) was applied by a monthly stamp worth 1% of the face value that had to be affixed to the bills. It worked marvelously. Irving Fisher made the mistake of propagating 2% weekly, a whopping 104% a year and this, of course, could not work.
Now, mainly though the work of the above mentioned scholars, a much simpler way to apply the moving force that is also suitable for alternative money like in Woergl, was developed.
In short, it is the idea of expiry dates on the bills, which have to be exchanged at this dates for new ones. At this time the moving force in form of a 5% discount is applied. This prevents excessive use of money as a store of value while still allowing it to be used as medium of exchange nearly free of cost. In fact the cost is much less than any other means like credit cards or bank transfers.
The moving force is with this method applied directly to the bills and not like with inflation only to their value. Therefore the value of the bills can be kept stable and money could keep its worth indefinitely.
It would also find its way of being invested into assets, even when they do not promise high profits any more. It is better to invest even at 0% interest than loosing 5% a year by keeping money idle.



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gesamter Thread:

• Oldystunde - einmal englisch - Oldy, 09.12.2000, 04:32
  • Re: Oldystunde - einmal englisch - 2good4you, 09.12.2000, 10:40
    • Re: Oldystunde - Frodo, 09.12.2000, 10:52
      • Re: Oldystunde - 2good4you, 09.12.2000, 13:27
      • Re: Oldystunde - R.Deutsch, 09.12.2000, 14:11
        • Re: Oldystunde - Jochen, 09.12.2000, 22:41
          • Re: Oldystunde - Frodo, 10.12.2000, 01:38