- Greek philosopher (384 – 322 B.C.) who influenced Western Civilization. He taught that money is determined by the laws of society, and not by the material from which it is made (such as gold). He taught money is a means of exchanging goods or services, but is not wealth itself. He condemned interest on money (usury) since money is barren. It is human labor expended on raw materials that creates wealth.
- Chicago Plan (1930s)
- A monetary reform proposal made in 1933 by Henry Simons and other economists at the University of Chicago. The Chicago Plan called for the ending of the bank creation of money, and required 100% reserves on demand deposits. Henry Simons made this grand observation which still afflicts us today:
“The mistake...lies in fearing money and trusting debt."
- The money in actual use or circulation for transactions or exchanges, usually coins and notes. The term may refer more generally to a money system used in a given region or nation.
- debt money, aka bank credit, aka commercial bankmoney
- The private 'bankmoney' system was begun in 1694 with the creation of the private Bank of England and has spread to most countries today, including the United States. Debt money (aka bankmoney) can function imperfectly as money. Debt money is created by private commercial banks when loans are funded by crediting the borrower’s account. Debt money is canceled or destroyed when the loan balance is repaid.
- fiat money
- Any money declared in the law to be legal tender. As Aristotle said, "Money exists not by nature, but by law." As Stephen Zarlenga wrote, "Both Aristotle and Plato noted the paramount monetary principle -that the nature of money is a fiat of the law, an invention or creation of mankind and society, rather than a commodity." He further explained, “the law can normally confer the power of money onto something by making it acceptable in payments due to the Government for taxes and duties."
- 'free' trade
- A policy of government that there should be no restrictions on trade, such as tariffs, between its producers/consumers and other countries. 'Free' trade is supported by financial capitalists. In the 18th and 19th centuries, Britain used 'free' trade to cripple other countries; for example, from 1783 to 1789, after Britain had lost the American Revolution and its American colonies, British merchants sent in cheap goods to the new U.S. states, bankrupting American farmers, merchants, and craftsmen. The result was Shay's Rebellion, the first rebellion against the new government. We may need a new rebellion to stop today's 'free' trade agreements like NAFTA and CAFTA.
- Greening the Dollar
- is a plank included in the Green Party US Platform (items #15, 16, 17 in section IV.I), which later became legislation introduced in Congress as the NEED Act.
- legal tender
- Legal tender status means that in addition to the money being legally acceptable in payments due to the Government for taxes and duties, it must be accepted by private individuals as payment of debt. The Federal Reserve Note bears the inscription “This note is legal tender for all debts, public and private.”
- to sell an asset or a service and receive money for it
- NEED Act
- National Emergency Employment Defense Act: legislation introduced in the 111th and 112th Congresses for “greening the dollar.”
- net assets
- is the result of subtracting Total Liabilities from Total Assets, as in
Nationalize the Fed:federal government buys the net assets of the 12 Federal Reserve Banks.
- the ancient Greek word for money, derived from 'nomos', "anything assigned, a usage, custom, law, ordinance". ". . . but money has become by convention a sort of representative of demand; and this is why it has the name 'money' (nomisma)—because it exists not by nature but by law (nomos) . . ." Aristotle, Nicomachean Ethics [1133b 1]
- public banking
- A public bank is a bank that is controlled by and principally funded by a government body rather than by private investors. As of April, 2017, the Bank of North Dakota is the single public bank in the United States. Public banking is not a reform of the Federal Reserve monetary system but seeks to provide the benefits of bank ownership to state governments. Public banking is promoted by the Public Banking Institute.
- quantitative easing (QE)
- is a monetary policy in which a central bank creates new bank reserve money in order to buy government bonds or other financial assets from banks.
assessment:QE has made banks more financially solvent, but has not succeeded in the stated purpose of stimulating the economy. It has mostly resulted in banks having stronger balance sheets, but not in more bank credit entering the “main street” economy.
- is the difference between the face value of money and its cost of production.
- sovereign money
- is government-issued money used at face value, such as
today's U.S. coins:31 USC 5111 (b)
The Department of the Treasury has a coinage metal fund and a coinage profit fund. The Secretary may use the coinage metal fund to buy metal to mint coins. The Secretary shall credit the coinage profit fund with the amount by which the nominal value of the coins … exceeds the cost of the metal. … The Secretary shall deposit in the Treasury … excess amounts in the coinage profit fund.
- The charging of interest on a loan. As recently as 1822, the Catholic Church banned usury. With the spread of credit the definition was changed to be charging excessive interest. Usury has been linked to serious social and economic problems due to the tendency to create excessive debt obligations. The Old Testament and the Koran condemn it to this day. See presentation:
The Usury Debate Continues