Re: Creditary Economics (CE)

["Gunnar Tomasson" <tomasson@xxxxxxxx>]

Bill:

 

I don't get your point.

 

My statement - "In the modern era, it is possible to take paper IOU of any given nominal face value to the bank and it will transform it into money.  The bank would charge interest as its fee for the service rendered.  How can such money be considered debt instruments?" paraphrased

 

Your statement: "In the era of "free coinage" it was possible to take any quantity of bullion to the mint and it would be coined into money. The mint would keep a percentage as its fee for the service rendered. How can such coins be considered debt instruments?"

 

I now recognize that my wording was not sufficiently clear for you - that "paper IOU" that a prospective borrower takes to the bank in order that the bank "will transform it into money" MUST mean a DRAFT IOU. 

 

My wording reflects the customary procedure in Iceland, where a prospective borrower fills out a "bill of exchange" for, say 100,000 krónur, takes it to his bank manager and asks him to "buy" it.

 

If the bank manager says YES, the draft IOU becomes Deposit Money.

 

If the answer is NO, the draft IOU is torn up and thrown in the wastepaper basket.

Gunnar