4.28 Commodity Money
1 Locke, John. An Essay on Money & Bullion; Wherein are considered, Value Intrinsick and Extrinsick. Money and Bullion compared. Mr. Locke’s Considerations concerning Raising the Value of Coin. The Present State of our coin. And a Scheme for Raising the Value of our Coin, as well as Gold and Silver. London: Printed for B. Lintot, between the Temple –Gates, Thomas Joplin publisher, 1718. Chapter 2. Published online by McMaster University, Faculty of Social Sciences, Hamilton, Ontario, Canada: https://socialsciences.mcmaster.ca/econ/ugcm/3ll3/joplin/money.txt
2 “Higley Coppers 1737,1739: Introduction.” The Coins of Colonial and Early America. Department of Special Collections, University of Notre Dame Libraries, Notre Dame, IN. retrieved May 2018. https://coins.nd.edu/ColCoin/ColCoinIntros/Higley.intro.html
3 The US Geological Survey, Mineral Commodity Summary, Gold. 2018 https://minerals.usgs.gov/minerals/pubs/commodity/gold/mcs-2018-gold.pdf and O’Connell, Rhona, Head of Metals Research & Forecasts. GFMS Gold Survey 2017. Thomson Reuters, London. http://images.financial-risk-solutions.thomsonreuters.info/Web/ThomsonReutersFinancialRisk/%7B7e83d5e5-edae-457b-9bd5-3c54a865079c%7D_GFMS_Gold_Survey_2017.pdf
4 Laughlin, James Laurence. The Principles of Money, Volume 2. New York, Charles Scribner’s Sons, 1903, p.452. Available on Google books. https://books.google.com/books?id=9eMoAAAAYAAJ&pg=PA452#v=onepage&q&f=false
4.30 IOU: Future-Value Money – Debt or Credit Money
5 Polo, Marco. The Travels of Marco Polo, a Venetian, in the Thirteenth Century: Being a Description, by that Early Traveller, of Remarkable Places and Things, in the Eastern Parts of the World, translated by William Marsden, .R. S. &c.. London: Cox and Baylis (1818). pp. 353–55. Retrieved May 2018. https://books.google.com/books?id=JetQAAAAcAAJ&pg=PA353#v=onepage&q&f=false
4.31 Fiat Money: Money by Decree
6 “Fiat Money.” https://en.wikipedia.org/wiki/Fiat_money. Wikipedia, retrieved on March 21, 2018.
4.32 Fractional Reserve Money Creation
7 Zarlenga, Stephen. The Lost Science of Money: The Mythology of Money – the Story of Power, American Monetary Institute, Valatie, NY, 2002, p.438.
8 United States General Accounting Office. Federal Reserve System: Opportunities exist to Strengthen Policies and Processes for Managing Emergency Assistance. 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.” July 2011. p. 131. https://www.gao.gov/new.items/d11696.pdf
9 United States House of Representatives. House Hearing before the committee on Oversight and Government Reform, House of Representatives, One Hundred Tenth Congress, Second Session. October 23, 2008, Serial No. 110-209.” Available from http://www.gpoaccess.gov/congress/index.html. Video is available: https://www.youtube.com/watch?v=8oLHfKjiQew At 0:52
10 Fisher, Irving. 100% Money and the Public Debt. Originally published without copyright notice in the Economic Forum Spring, April-June 1936, pp. 406–420. Published in Thailand: ThaiSunset Publications, 2009.
4.33 Making a Deal with the Devil – Grand Bargain: A National Central Bank and Privately Created Legal Tender.
11 FRED–Economic Research Federal Reserve Bank of St. Louis. “Commercial Banks in the U.S., (Q4)1983 to (Q4)2017.” Economic Data. https://fred.stlouisfed.org/series/USNUM
NOTE: It’s taken me years to write this and I’ve updated information many times. Some changes are stunning. The number of banks reported by the St. Louis FED dropped 8% in just 2 years, from 5,309 in 2015 to 4,888 in 2017. The graph is nearly a straight line down. That’s a rapid and exponential monopolization. And, the FDIC has slightly different numbers…4,918 institutions. https://www5.fdic.gov/hsob/HSOBRpt.asp
4.34 Bank Money Creation: Anchored by Reserves
12 Fisher, p. 10.
13 The Federal Reserve. Federal Reserve Board. Seth B. Carpenter and Selva Demiralp. “Money, Reserves, and the Transmission of Monetary Policy: Does the Money Multiplier Exist?” Finance and Economics Discussion Series: 2010–41s, Divisions of Research & Statistics and Monetary Affairs. Washington D.C., 2010. https://www.federalreserve.gov/PUBS/FEDS/2010/201041/201041pap.pdf
14 Bank for International Settlements. “Basel III: A global regulatory framework for more resilient banks and banking systems,” December 2010 (rev June 2011). Basel Committee on Banking Supervision, p. 12. https://www.bis.org/publ/bcbs189.pdf
4.35 Bank Money Creation: Anchored by Bank’s Capital
15 International Monetary Fund. “IMF Releases Data on the Currency Composition of Foreign Exchange Reserves Including Holdings in renminbi.” March 31, 2017 http://www.imf.org/en/News/Articles/2017/03/31/pr17108-IMF-Releases-Data-on-the-Currency-Composition-of-Foreign-Exchange-Reserves
4.36 Bank Money Creation: No Anchor
16 Wolf, Martin. “The FED is right to turn on the tap,” The Financial Times. November 9,
17 Michael Lewis. The Big Short. New York, NY: E.W. Norton & company, Inc., 2010. P. 9 7.
NOTE: For example, “In Bakersfield, California, a Mexican strawberry picker with an income of $14,000 and no English was lent every penny he needed to buy a house for $724,000.”
4.37 Sovereign > Commonwealth Money
18 Wray, L. Randall. Modern Money Theory: a Primer on Macroeconomics for Sovereign Monetary Systems. 2012. New York, NY: St. Martin’s Press LLc. pp. xv, 30, 36, 39.
19 Zarlenga, 361–388.
20 Hoff, Brad. “Hillary Emails Reveal True Motive for Libya Intervention.” Foreign Policy Journal, January 6, 2016. https://www.foreignpolicyjournal.com/2016/01/06/new-hillary-emails-reveal-true-motive-for-libya-intervention/
21 Babington, Deepa. “Libyan rebel central bank lacks reserves, eyes dinar.” Reuters, Benghazi, Libya, May 12, 2011. https://www.reuters.com/article/us-libya-economy/libyan-rebel-central-bank-lacks-reserves-eyes-dinar-idUSTRE74B3TJ20110512
22 “NATO bombs the Great Man-made River.” Human Rights Investigations, July 27, 2011. https://humanrightsinvestigations.org/2011/07/27/great-man-made-river-nato-bombs/
23 Perlez, Jane and Yufan Huang. “Behind China’s $1 Trillion Plan to Shake Up the Economic Order.” The New York Times, May 13, 2017. https://www.nytimes.com/2017/05/13/business/china-railway-one-belt-one-road-1-trillion-plan.html
24 NOTE: “Credit is not debt it is a ‘positive’ annotation of value being transferred between two parties to recognize contributions made to society or through the market or as a basic right of income.” I’ve lost the credit for this quote…. Lietaeur? Dyson?
25 US Congress. H.R. 2990 – National Emergency Employment Defense Act of 2011. 112 t h C o n g r e s s ( 2 011 – 2 012 ) , Introduced in House on September 21, 2011. https://www.congress.gov/bill/112th-congress/house-bill/2990
4.38 Complementary Money
26 Greco, Thomas H. Jr. Understanding and Creating alternatives to Legal Tender Money. White River Junction, Vermont: Chelsea Green Publishing Company, 2001. pp. 95–98.
27 Lietaer, Bernard and Jacqui Dunne. Rethinking Money: How New Currencies Turn Scarcity into Prosperity. Oakland, California: Berrett-Koehler Publishers, 2013. pp. 99–102
28 Lietaer, p. 32.
29 Lietaer, ibid.
4.39 Experiments – Interesting Times
30 Tapscott, Don & Alex Tapscott. Blockchain Revolution: How the technology behind bitcoin is changing money, business, and the world. Portfolio. New York, NY: Penguin, Random House LLC, 2016.
31 RSA Company. https://www.rsa.com.
33 Rowley, Jason. “2018 VC investment into crypto startups set to surpass 2017 tally,” Techcrunch, March 3, 2018. https://techcrunch.com/2018/03/03/2018-vc-investment-into-crypto-startups-set-to-surpass-2017-tally/
34 Bitcoin Organization. https://bitcoin.org/en/
35 “Bitcoin.” Wikipedia. Retrieved February 2018. https://en.wikipedia.org/wiki/Bitcoin
36 Bank of International Settlements. “Triennial Central Bank Survey of foreign exchange and OTC derivatives markets in 2016.” Statistics: Foreign Exchange: Foreign Exchange Trading. Updated December 11, 2016. https://www.bis.org/publ/rpfx16.htm?m=6%7C381%7C677
NOTE: Foreign Exchange is $5.1 trillion per DAY, which equals $1,825 trillion in trades per year.
And, Global GDP (2014) is 78.28 trillion. The World Bank. “GDP (current US$)- 1960–2016.” https://data.worldbank.org/indicator/NY.GDP.MKTP.CD
NOTE: The total exchanges represent more than 20 times ALL the exchanges in the global economy, and the bulk of those take place within, not between, countries. So speculators are making at least 95% of the trades, if not more.
37 DeLisle, Bill. “The CEO Who Will Make Almost A Billion from Bankruptcy.” Cryptoslate, November 18, 2017. https://cryptoslate.com
38 Cuthbertson, Anthony. “Bitcoin Bandit Mark Karpeles to Become Filthy Rich From $7 Billion Lost from Mt. Gox Exchange.” Newsweek, Tech & Science, November 13, 2017, http://www.newsweek.com/bitcoin-mark-karpeles-mt-gox-exchange-cryptocurrency-709242
39 “All Bitfinex Clients to Share 36% Loss of Assets Following Exchange Hack.” The Guardian, London, August 7, 2016. https://www.theguardian.com/technology/2016/aug/07/bitfinex-exchange-customers-receive-36-percent-loss-tokens
40 U.S. Commodity Futures Trading Commission. “Bitcoin.” https://www.cftc.gov/sites/default/files/idc/groups/public/%40customerprotection/documents/file/oceo_bitcoinbasics0218.pdf – as of March 28, 2018.
NOTE: In 2015 the CFTC ruled that Bitcoins are not money, they are commodities. By 2018, their published information describes Bitcoin as a “convertible virtual currency. Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value.” AND, they say, “Yes, virtual currencies, such as Bitcoin, have been determined to be commodities under the Commodity exchange Act (CEA).”