What is Money? Money, especially paper money itself is a great human invention (first used in China), an abstract tool of symbolic payment, which allows free flow of goods and services. Historically locally available resources (like amber, beads, cowries, drums, eggs, feathers, gongs, hoes, ivory, jade, kettles, leather, mats, nails, oxen, pigs, quartz, rice, salt, thimbles, umiacs, vodka, wampum, tobacco, yarns, zappozats or decorated axes) have been used as money. The average person’s life and living standard has been vastly improved, because of universal acceptance of money as the medium of exchange. However, confusing the symbol for the real things is similar to giving away the real land for the paper map. To this day money-changers have used every form of deceit (including elaborate government taxation and welfare schemes) and control of education, media and research institutions to create myriad diversions through ideologies and scare tactics to keep the control and issue of money power to themselves. Lot of confusion exists about what is money or how to define it. Money is generally confused with wealth since money can buy any wealth (land and its resources, labor, precious minerals and goods). The difference between US Treasury printed cash money and credit (interest bearing loans issued by banks) has also disappeared with the introduction of credit cards. Money is perceived as a medium of exchange (MOE) and as a store of value (SOV). Neither is quite correct, as money exists now. Both paper money (fiat-money) and credit money under fractional reserve system is no longer backed by any precious metal; as such money has no inherent storage value. Since it is not a store of value, it is also not a "real" medium of exchange (which implies exchange of value). Money is a document, a symbolic measure of exchange, a universally transferable acknowledgement receipt (ITU), a human made tool or communication device that allows repeated and complex transaction and delivery of goods and services between parties often separated in space-time. [see Aristotle Vs. Adam Smith's concept of Money by S.Zarlenga] 

.  Perception Vs. Reality of Money: The history of origin of paper money and commercial banking and the growth of central banks have never been studied systematically, except by a few. The question of what money is and how it is created is not commonly understood; hence this issue have never been discussed or decided democratically by people everywhere. True democracy, equality and sustainability demands replacing the current structurally unsound and grossly unfair system of debt-money (which produces debt-slavery of people, their governments and businesses) with debt-free, interest free trust-money. Changing perception of money from a "store of value" to only a "symbolic measure of value" (in the same way a coupon, ticket or accounting entry is) is going to minimize all volatility arising out of speculation or hoarding of money, over-building of excess capacity or waste due to unused capacity. The current system of fiat money (not backed by gold or precious metals) has no intrinsic value and derives its value solely from the collective legalized agreement to use money as the universal "medium of currency of flow." The continued perception of money (from the old goldsmith and gold standard days) as a "store of value" is simply an illusion. Since fiat money is no longer a store of value (SOV), the continued perception of money (from old barter or mutual commodity trading days) as "medium of exchange" (MOV) is also an illusion. This paradoxical situation however brings the historically unpreceedented global opportunity to redefine money as a universally accepted man-made tool - simply a token and symbol (with units of measure) which enables delivery and transfer of goods and flow of services among all people. This slight shift in perception is actually a Quantum shift in the way we generate and use money for all kind of creative human enterprises.

Basic Problem of Circulation of Debt-Money: People will never be free with money that is issued as debt to begin with and reality will continue to contradict the myth of freedom under democracy and free market. "A legitimate government can both spend and lend money into circulation, while banks can only lend significant amounts of their promissory bank notes, for they can neither give away nor spend but a tiny fraction of the money the people need. When your bankers here in England place money in circulation, there is always a debt principal to be returned and usury to be paid. The result is that you have always too little credit in circulation to give the workers full employment.You do not have too many workers, you have too little money in circulation, and that which circulates, all bears the endless burden of unpayable debt and usury (Benjamin Franklin autobiography)."

At the international level, trade is deeply affected by the debt-based financial system. The aggressive pursuit of maximum export revenues, rather than seeking a simple balance of trade, is entirely due to the fact that even the wealthiest nations operate from a position of gross insolvency. International trade has degenerated into a competition between nations to alleviate their indebtedness, rather than a process involving a mutually beneficial exchange of goods and services. Endemic Third World debt is also directly attributable to the reliance upon debt and banking to supply money. The theoretical model of borrowing from the World Bank/IMF, investing in development and repaying loans from export revenues, is one of the great failures of contemporary economics. The persistent inability on the part of debtor nations to repay these loans suggests strongly that the nature of the indebtedness suffered by the Third World has absolutely no actual legitimacy or validity.[The Grip of Death by Michael Rowbotham 1998, and Confessions of Economic Hitmen, John Perkins

UBI, Fair Allocation, and Dignity of All Human Life/Labor: The problem of fair allocation of money, as well as mass poverty and ineqaulity can be safely addressed by giving every citizen (consumer) a basic income with non-inflationary and non-speculative trust money. Since money is not a store of value, its value is secured by collective agreement and trust of people to serve the basic needs of all people in the community, region and nation by using the best of collective human wisdom practices and human-scale technology available. Public Money issued debt-free as ITU notes or electronic currency (I Trust you, I Thank You instead of IOUs) can be fairly and easily allocated to all living citizens as basic gauranteed income. This also sets free the providers of basic goods and services from the need to secure markets by agressive marketing or advertisement hypes. With readily available consumer base backed by real purchasing power (effective demand) providers can now concentrate on production and delivery of goods and services. people and productive activities can self-organize inspired by service than motivated by profit. Also money allocated debt-free for basic sector will keep circulating in local economy, building rich community networks and healing relationships that were weakened under predatory capital economy.Universal Basic Income (see below) have the potential to free humanity from physical survival needs, create equality across race and gender, restore dignity of all human labor, promote community spirit of cooperation, strengthen peace, democracy and well being and free the innate creative potential in all human beings. True equity, individual sovereignty and entrepreneurship can thrive only on the foundation of equality! With UBI , all services are honored including services of mothers, homemakers (both men and women), grandparents, volunteers, non-business hobby type craftspeople, caregivers and the like whose services are not counted in the GDP, but without whom families and communities cannot survive.

Public Vs Private and Other Assumptions: The definition and perception of “public” entities Vs. “private” corporations has been blurred historically through a complex system of legislations. Giving gobal mega-corporations with employees in different countries and continents the "private" status to avoid public accountability legally is something that needs to be questioned (see corporate personhood). Each person is simultaneously a public and private citizen in his/her daily life. Any institution dealing with people, land resources and environment must hold a greater degree of civic responsibility and accountability than maximization of profit for a few shareholders alone.

The two basic assumptions of economics regarding "scarcity" and "competition" (as the best model for free market allocation) need to be seriously questioned. Human ingenuity, creativity and enterprise have always overcome scarcity or lack anywhere within society. Such progress has been always accompanied by mutual cooperation and collaborative behavior and ingenuity of individuals rather than competition among private corporations ( see 'Unequal Protection’).

What's Wrong with Usury? Usury (in the original sense of any interest especially excessive interest) is scripturally and doctrinally forbidden in many religions. Usury was denounced by countless spiritual leaders and philosophers of ancient times, including Plato, Aristotle, Cato, Cicero, Seneca, Plutarch, Aquinas, Moses, Mohammad, Jesus and Buddha. See more on usury at Wikipedia. What wikipedia doesn't mention is that Usury is actually compound interest on principal that is mathematically unsustainable over long run. Usury is also Unearned income, which means no labor is expended in earning usury. Also charging interest on fiat money that has no intrinsic value is deceitful. Usury is exploitative and promotes greed and artficial scarcity in money supply (when principal is issued, the future interest is not, ultimately resulting in inflation and loss of value of money). Also money isssued as debt cannot be fairly allocated to vast majority in the planet without formal full time jobs and much more. It is not just the third world, the developed countries like US, UK, Japan and others are accumulating national debt at a staggering rate. Do we stop to think who are owning all this debt? There is a huge gap in reality and how we are conditioned to believe in TINAC (There Is No Alternative to Capitalism) through diversion of attention to myriad dysfunctions of Capitalism and perpetuating fear and denial of anything else that looks at the cause. A monetary system designed to issue money privately via centralized commericial banking and allocated money as usurious debt (bearing compound interest) gradually shifts wealth from actual productive class (farmers, farm laborers, artisans, manufacturers, service providers) to non-producing bankers, fiancial sectors, beaureaucrats, and middlemen of all kinds. There is a breakdown of relationships between actual producers/providers of food, goods and services and actual consumers/users of those gifts of labor. The dignity of life and labor is lost in the process of mindless production and consumption generated by endless cycle of debt-money and unrepayable debt. Lay-offs, downsizing, outsourcing, sweatshops, pollution and waste are the last survival strategies left to this insane chase for globalization of capital economy and imperialism of financial interests.

All of mankind’s moral and religious codes forbade usury. But the Old Testament strictly forbade Jews from taking usury from their "brothers" (other Jews), and discouraged taking it from strangers. Scholastics (1100 -1500 AD), the Church scholars looked on all mankind as brothers. Other codes restricted usury

Code Of Hammurabi (2130-2088 BC) limited usury to 33%;
Hindoo Law - Damdupat - limited interest to the full amount of the loan;  Roman Law limited interest; Justinian’s 6th century Code reduced the 12½% limit of Constantine the Great, to 4-8%, and accumulated interest could not exceed principal. The Koran totally forbids usury, from the 7th century;
Charlemagne’s laws flatly forbade usury in 806 AD.
The Magna Carta placed limits on usury in 1215 AD.

Most States of the United States enforced usury limits until 1981. As economies became more dynamic, with real growth possibilities, it became clear that charging interest on business loans where the borrowing merchant prospered, couldn’t be condemned as greed or lack of charity and by 1516 the idea of a lending institution charging interest for its services had been overwhelming accepted. John Calvin finished off the usury ban in 1536. He considered usury sinful only if it hurt ones neighbor and that it was generally legitimate in business loans. (Zarlenga)

Real Vs. Unreal (delusional) Economy: In real economy money is issued in accordance with monetary need for production and distribution of real food, goods and human services. But when money itself is used as a commodity for earning usury or compound interest then all human services and activities (including human labor and life's worth itself) becomes commodified and measured in terms of money. The historic growth of Stock market and lately the foreign exchange currency market (FOREX) are part of the Unreal Economy fueled by excess accumulation of wealth in hands of those who have the inside access and inscrutable knowledge of this unreal economy of global financial/capital and derivatives markets. [see MEL formula of Money] 

Speculation, Hoarding and Volatility of Debt-money: Debt-repayment and taxation requires taking out money from circulation for hoarding, saving and profiteering purposes  not only to meet current needs but future needs and inflationary uncertainities. "In addition to almost unlimited usury, the bankers have another method of drawing vast amounts of wealth. The banks are able to approve or disapprove large loans to large and successful corporations to the extent that refusal of a loan will bring about a reduction in the selling price of the corporation's stock. After depressing the price, the bankers' agents buy large blocks of the company's stock. Then, if the bank suddenly approves a multi-million dollar loan to the company, the stock rises and is then sold for a profit. In this manner, billions of dollars are made with which to buy more stock. This practice is so refined today that the Federal Reserve Board need only announce to the newspapers an increase or decrease in their "discount rate" to send stocks soaring or crashing at their whim. Banks collect billions in interest by loaning to Government and the Corporations!" [Pastor Sheldon Emry]

Future of Money: "Your money's value is determined by a global casino of unprecedented proportions: $2 trillion are traded per day in foreign exchange markets, 100 times more than the trading volume of all the stockmarkets of the world combined. Only 2% of these foreign exchange transactions relate to the "real" economy reflecting movements of real goods and services in the world, and 98% are purely speculative. This global casino is triggering the foreign exchange crises which shook Mexico in 1994-5, Asia in 1997 and Russia in 1998. These emergencies are the dislocation symptoms of the old Industrial Age money system." [Future of Money by Bernard Lietaer]

Money as compound interest bearing ‘debt’ (coupled with creation of monopoly global currencies of trade like dollar and Euro) creates extreme polarization of poverty and wealth distribution, which progressively leads to war and financial imperialism, monopolization of local economies through global corporations driven by profit maximization, rise in various speculative activities with money and currency (the illusion of free market), and destruction of the delicate ecological balance that sustain the rich web of life in the planet, including human lives. Only 2% of over $2 trillion worth of daily foreign exchange transactions relate to the "real" economy reflecting movements of real goods and services in the world, and 98% are purely speculative (Bernard Lietaer, former central banker and developer of Euro. Aso see Foreign Currency Speculation Disaster]

New Economic Thinking and Holistic Measures of Growth: Rather than a simple mathematical equation of GDP, we need a set of measures that includes external costs like costs to the environment, costs to our health and wellbeing and costs to society. And we need a system that allows us to measure the things that are truly valuable in life: happiness, health, community, and life as well as the unpaid work of mothers, caregivers, volunteers and such [GPI Genuine Progress Index]. The associative or relational approach to economics is based on the idea that economic life is the responsibility of every human being in collaboration with humanity as a whole. It proceeds from what we think and do, rather than by way of abstract forces. Associative economics is about making this responsibility conscious and finding ways to give it effect in practical life [Associative Economics Institute]. There are also other emerging fields like Green Economics, Evolutionary Economics and Ecological Economics or NGO's like New Economic Foundation of UK. Gross National Happiness (GNH) is a term coined by Bhutan's King Jigme S. Wangchuck in 1972 to define quality of life in a more holistic (material and spiritual) terms than GNP.

See this page quoted at Evolutionary Justice Site Money booklet page 4

See This page link quoted at Monetary Evolution Net , Infoshop Wiki and Laborlawtalk encyclopedia links

Other Global sites: Wizards of Money Tree, PostCapitalism, Joytopia (german)

Additional Author Notes: 

The root of the systematwide corruption of the institution of Church, the Monarchy and the State (under feudal system, totalitarian fascist/communist regimes and even within democracy) goes deep.  Some of the basic assumptions and language of Economics need to be evaluated from a free and open mind. The assumption of “scarcity” of resources arises out of few “men’s greed (usurious debt-money system) and not due to man’s basic and universal needs. Man’s basic instinct and nature as formed from birth to adulthood within family, community and society is one of going out of physical survival needs to one of greater relationships, greater cooperation and ultimately a greater kinship with all life. Theories can become self-fulfilling because the very assumptions and beliefs (like survival of the fittest, man’s inherently selfish and competitive nature, educated mind is open mind, experts know best etc.) shape the institutional design, management practices, educational norms, media focus, and social expectations, which in turn create the conditions where theories appear to be valid.

The viscious cycle of poverty (explained in economics as a perpetual cycle low-productivity -> low Income -> low savings -> low capital) leaves out the reality that money “as debt” cannot be allocated to vast majority of poor, illiterate masses who have no income or access to capital (without job and collateral). The poor and illiterate are not necessarily without indigenous skills, wisdom and enterprise (see experience of grameen bank); however most poor people (dispossesed of land) are denied basic access to clean water, education and health under current monetary system. Usurious debt and inflation generating money is mathematically unsustainable. In developed countries too like Australia and USA as much as 40% of the population is under some form government welfare. The vast majority of world’s poor are women, children, disabled, and seniors. Three billion people live on less than $2 per day while 1.3 billion get by on less than $1 per day. Seventy percent of those living on less than $1 per day are women. It is not scarcity of money (or resource or labor) that is creating poverty, it is the kind of money we are using unconsciously. [poverty statistics].

In conclusion money is a measure and symbol of payment, and not a store of value. Money is a collectively agreed and acceptable medium of delivery of value and not a medium of exchange of value. This SHIFT IN PERCEPTION is a QUANTUM SHIFT in the way we perceive, generate and use money. In this system it is possible to pay every citizen a non-inflationary debt free basic income (perhaps with some expiration date to prevent hoarding), build public infrastructures based on publicly collected ground rent (land and resource use fee), and develop local economies and sustain indigenous resources and skills using community currency. It is possible for man to live and create in harmony with nature, when our currency can embody the principle of free energy flow as found in Nature which preserves the Web of Life.

Every living thing in nature spontaneously self-organizes itself through exchange of energy available freely. All human activity and endeavors can self-organize itself once debt-free tax-free money is made available as basic income to all citizens. Self-employment and small businesses can emerge in myriad ways to fill every need of humanity. All businesses and organizations will be service oriented, and profit or speculation will no longer be the motive in a fair and mathematically sound monetary system. Money that keeps circulating (not being taken off circulation for saving, hoarding, speculation, and future uncertainity) will be anti-inflationary. It is likely with increasing technology, productive capacity co-operation, and free information flow it is very likely that people will be able to afford more and more with less and less money. Think of the internet and web, where nothing is centrally controlled, yet it is exhibiting spontaneous pattern of self-organization of all kind of information. With the help of technology the gap between work, leisure and play is also likely to fade. Full employment is necessary only for purposes of long term debt-servicing and a tax-based welfare system.

Community currency is emerging as a powerful tool for fostering local econonomic development, but it is currently handicapped by some of the assumptions and perceptions inherent in conventional money (money as a store of value and medium of exchange needing some form of centralized accounting of  transactions)! As long as our mind is full of theories and fear-based assumptions and preferences we cannot see and recognize the obvious. Please share this article widely, so people at least start thinking along different lines.[Added 6/9/05]