The Bank of England has been warned of complacency over the big rise in personal debt. In its toughest warning yet about the possibility of a rerun of the financial crisis that devastated the economy 10 years ago, the Bank of England admitted it was alarmed about the increase in the amount of money being borrowed on easy terms over the past year, reported the Guardian, 24th July 2017.
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.
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.