Money, as we know it, is created as interest bearing debt by central and private banks. This is, by and large, the greatest problem on earth, which creates the vast majority of other global problems, such as environmental destruction, poverty and hunger. If we are going to fix these systemic issues then, ultimately, we have to reinvent money.
The below is from Thomas Greco, author of The End Of Money And The Future Of Civilisation
Mutual credit, and credit clearing, are the highest stage in the evolution of reciprocal exchange, which, in effect, make money as we’ve known it obsolete. The fact is that goods and services pay for other goods and services, whether we use money as an intermediate payment medium or not. Credit clearing makes the use any third party credit instrument (money) unnecessary.
Present day banking is mainly a credit clearing process in which additions and subtractions are made to their customers’ account balances. However, banks perpetuate the myth that money is a “thing” to be lent. If a client’s balance is allowed to be negative, the bank considers that to be a “loan” and will charge “interest” on it. Has the bank loaned anything? Not really. What they have done is to allocate some of our collective credit to the “borrower.” For this they claim the right to charge interest.
Any group of traders can organize to allocate their own collective credit among themselves interest-free. Done on a large enough scale that includes a sufficiently broad range of goods and services spanning all levels of the supply chain from retail, to wholesale, to manufacturing, to basic commodities, such systems can avoid the dysfunctions inherent in conventional money and banking and open the way to more harmonious and mutually beneficial trading relationships.
We are proud to have Thomas Greco on our advisory group.
Find out more about the Open Credit Network and if you’re interested in taking part in this new cooperative venture then please express your interest and when we find businesses for you to trade with we will invite you to become a full Member.