3.14 Roots – an Early History of Money

1 Del Mar, Alexander. History of Monetary Systems: A Record of Actual Experiments in Money Made by Various States of the Ancient and Modern World. London: E. Wilson, 1895.

NOTE: These books are long out of print, and, what a world we live in! Most of Del Mar’s books are available online for free: “The Online Books Page: Online Books by Alexander Del Mar (1836–1926).” Editor John Mark Ockerbloom, onlinebooks@pobox.upenn.edu. http://onlinebooks.library.upenn.edu/webbin/book/lookupname?key=Del%20Mar%2C%20Alexander%2C%201836%2D1926

2 The Federal Reserve Board. “The Future of Money and of Monetary Policy.” Remarks by Governor Laurence H. Meyer at the Distinguished Lecture Program, Swarthmore College, Swarthmore, Pennsylvania. December 5, 2001 https://www.federalreserve.gov/boarddocs/speeches/2001/20011205/default.htm

3.15 Money Is as Money Does – Money Functions: Tool, Measure, Store of Value

3 U.S. Department of Commerce, National Institute of Standards and Technology, Engineering Physics Division. Penzes, William B. “Time Line for the Definition of the Meter.” Updated September 26, 2016. https://www.nist.gov/pml/engineering-physics-division/time-line-definition-meter

4 “Gold Prices - 100 Year Historical Chart.” Macrotrends. Interactive chart of historical data for real (inflation-adjusted) gold prices per ounce back to 1915, as of May 4, 2018. http://www.macrotrends.net/1333/gold-and-silver-prices-100-year-historical-chart

3.16 Money Paradox: Wealth and/or Tool

5 Wray, L. Randall. Modern Money Theory: A Primer on Macroeconomics for Sovereign Monetary Systems, New York: Palgrave Macmillan, 2012. And, Hudson, Michael. The Bubble and Beyond: Fictitious Capital, Debt Deflation and Global Crisis. Dresden: Islet, 2012.

For more links, see, http://neweconomicperspectives.org/modern-monetary-theory-primer.html

3.19 Authentic and Trustworthy

6 Kuttner, Robert. The End of Laissez-faire: National Purpose and the Global Economy after the Cold War. New York: Alfred A. Knopf, 1991. Reviewed by Haveman, Joel. “Economic Rivals in a Laissez-Fairyland: The End of Laissez-Faire: National Purpose and the Global Economy After the Cold War By Robert Kuttner.” Los Angeles Times, 10 Mar. 1991,Collections. http://articles.latimes.com/1991-03-10/books/bk-204_1_cold-war

7 Salmon, Felix. “Recipe for Disaster: The Formula That Killed Wall Street.” Wired, 23 Feb. 2009. https://www.wired.com/2009/02/wp-quant/

3.20 Who Creates New Money?

8 Wray. Ibid. p.36.

3.21 How Do People Create Money?

9 Board of Governors of the Federal Reserve System. “Data: Money Stock and Debt measures –H.6 Release. Current Release,” Table 1, as of April 5, 2018. http://www.federalreserve.gov/releases/h6/Current/

NOTE: I used the “not seasonally adjusted” M2 Money Stock Measures (December 2016- $13,916.4 billion, December 2017-$13,916.4 Billion, an increase of $623.7 billion).

10 Friedman, Milton. The Optimum Quantity of Money. Revised edition, New York: Routledge, June, 2005.

11 United States Office of Management and Budget. Fiscal Year 2016, Historical Tables; Budget of the U.S. Government, Table 5.4 – Discretionary Budget Authority by Agency: 1976–2020, -2014 actuals, p. 134. https://www.gpo.gov/fdsys/pkg/BUDGET-2016-TAB/pdf/BUDGET-2016-TAB.pdf

NOTE: The US Budget is a cash-based accounting document, so it does not show the full costs that may be commitments to spend, but not yet spent. A full accrual reporting is found in the US Government’s financial reports.

12 American Society of Civil Engineers. 2017 Infrastructure Report Card. Published in 2018. https://www.infrastructurereportcard.org

13 Schultz, David. “Los Angeles Paints Streets White to Stay Cool.” Science Magazine, September 7, 2017. http://www.sciencemag.org/news/2017/09/los-angeles-paints-streets-white-stay-cool and, Golson, Jordan. “World’s first ‘solar panel road’ opens in France.” The Verge. December 22, 2016. https://www.theverge.com/2016/12/22/14055756/solar-panel-road-electricity-france-normandy

and, “Developing roads that can generate power from passing traffic.” Science News: ScienceDaily. Lancaster University. September 18, 2017. https://www.sciencedaily.com/releases/2017/09/170918111830.htm

14 Lietaer, Bernard and Jacqui Dunne,. Rethinking Money: How New Currencies Turn Scarcity Into Prosperity. San Francisco: Berrett-Koehler Publishers, 2013, p. 99–102.

3.23 How Much Money?

15 “The Nature and Necessity of a Paper-Currency, 3 April 1729,” Founders Online, National Archives, last modified June 13, 2018, http://founders.archives.gov/documents/Franklin/01-01-02-0041. [Original source: The Papers of Benjamin Francklin, vol1, January 6, 1706 through December 31, 1734, ed. Leonard W. Labaree. New Haven: Yale University Press, 1959, pp.139–157.]

16 United States Census Bureau. Table: “Median and Average Sales Prices of New Homes Sold in the United States, 1963–2011.” Retrieved May, 2018. https://www.census.gov/const/uspricemon.pdf

17 United States Government Accountability Office (GAO). “FEDERAL RESERVE SYSTEM: Opportunities exist to Strengthen Policies and Processes for Managing Emergency Assistance,” July 2011. Report to Congress GAO-11-696, Table 8: “Institutions with Largest Total Transaction Amounts (Not Term-Adjusted) across Broad-Based Emergency Programs (Borrowing Aggregated by parent Company and Includes Sponsored ABCP Conduits), December 1, 2007 through July 21, 2010.” p. 131. https://www.gao.gov/assets/330/321506.pdf

NOTE: This report is an audit demanded by Congress of the FED’s bailout of the financial sector from 2007–2010. The title of the report is a masterful understatement. The total of $16,115 billion is confusing. This is the total amount of loans made to the banks irrespective of the terms of the loans. So, if a bank borrowed $10 billion overnight, paid it back in the morning, and then borrowed another $10 billion the next night, this is reported as $20 billion in loans. It raises an interesting question about how to report this most accurately. Every night the FED made a choice about who got newly created money.

18 United States Department of Commerce, Bureau of Economic Analysis (BEA). “National Income and Product Accounts Gross Domestic Product, 4th quarter 2011,” and “Annual 2011 (third estimate); corporate profits, 4th quarter 2011 and Annual 2011.” https://www.bea.gov/newsreleases/national/gdp/2012/gdp4q11_3rd.htm

19 Board of governors of the Federal Reserve System. FAQs: “Why does the Federal Reserve aim for 2 percent inflation over time?” https://www.federalreserve.gov/faqs/economy_14400.htm

 PrevMoney Systems 4.27