Wednesday, October 26, 2011

What money does not say that it used to say.

An 1896 $2 note said, “This certifies that there have been deposited in the Treasury of the United States Two silver dollars payable to the bearer on demand.”  That was when money was a warehouse receipt.  Some thing was in a warehouse, in this case the Treasury of the United States, and the bearer could get that thing, in this case two silver dollars, by presenting the note at a bank. 

We do not need nor should we want silver backing our money.  The actual backing of our money is what workers produce in goods and services.  Our money now says nothing about this actual backing.  It should.  So we need money to say the equivalent of what it said in 1896 but in correct terms, something like this:

“This note certifies that One hour’s worth of goods or services have been produced for which the bearer is entitled to be paid the equivalent on demand.” 

That statement would make it clear that money is how we share the work and share the wealth.

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