Although ‘pure’ (sovereign) money would seem pretty much the same to people using it, it would behave differently from bank-money in a number of interesting ways.
Ivo Mosley (Guest Author)
The transition would involve a one-off re-definition of money units as units of pure property, not ownership of debt from banks. The rest of this chapter addresses money not created as debt, but as circulating ‘pure’ money. This kind of money is referred to by reformers as ‘sovereign money’ or ‘pure money’.
The nature of money Essentially, money is a form of property. Your money is your money, mine is mine, otherwise money has no meaning. Money is property in the abstract. The most interesting example of money as pure property is the stone money of Yap: some large stones sank in the sea generations ago while being carried from one island to another; but they are still acknowledged as money. It is irrelevant that they are at the bottom of the sea; everyone knows who owns them. The stones are exchanged for other property – even though they sit on the seabed.
Banks create new money in massive amounts – always as debt. How does this work towards making financial predators rich and productive workers poor? Here are one or two examples.
Imagine a world where huge amounts of money are created out of nothing for private profit and destroyed again once profit is taken, so that new money can be created again (and again, and again) – for private profit.