L. Dwayne Barney Ph.d.

Capital As Money L. Dwayne Barney Ph.d.

Are you shocked and confused by the collapse of our credit and banking system and its failure to recover? In one way or another, we are all victims. Are you frustrated with the impotence of the Federal Reserve and its repeated attempts at ?expansionary? monetary policy? The recession/depression we are now mired in is threatening to last longer than the Great Depression, with no sign yet of a convincing recovery. ?Stimulus? attempts by government have only succeeded in expanding the deficit and placing a growing mortgage on our future. Based on what you've lived through, you may have wondered if there is not a better or simpler way to manage money, banking, and borrowing. If you have, then welcome. It is for you that this book is written. Using the simple device of an island economy?one which is fictitious but intentionally parallel to our own?the evolution of money and banking is sketched in an amusing and clear way. The reader follows the development of an economy from barter, to commodity money, and ultimately to fiat currency. Although the setting is imaginary, the problems spawned by a system of fiat currency, a central bank, and fractional-reserve banking are unfortunately very real. Finally a glimpse of a futuristic yet entirely attainable alternative world is offered?one that doesn't depend upon the sad fiasco of fractional-reserve banking and central bank manipulation. A new island economy is described that takes advantage of emerging technological and market capabilities. In fact these capabilities, that are presently available to us, render their previous monetary system obsolete. Productive capital can and does become the new store of value and the medium of exchange?the new money.