May 9, 2017
Passings: Stephen Zarlenga
One of the great alternatives to ordinary economists, Stephen Zarlenga, died last month of cancer. He was the founder of the American Monetary Institute. Here is just a bit of his fine thinking :
Stephen Zarlenga - One reason economists have failed mankind so badly is their poor methodology - an over-reliance on theoretical reasoning. Alexander Del Mar the world's greatest monetary historian noted: "As a rule economists. . . don't take the trouble to study the history of money; it is much easier to imagine it and to deduce the principles of this imaginary knowledge.". . .
In England the struggle became the goldsmiths vs the monarchy representing society. Later it was the Bank of England vs. society. Until then England's money power was in the monarch's hands. But from that point, Bank of England credits would be substituted in place of public money. This promoted a confusion between credit and money to this day. But they are different things. Credit depends on the creditor remaining solvent. Real money does not promise to pay something else. Money is on a higher order than credit.
Those behind the Bank of England obscured the real source of the bank's power - its legal privilege. Its notes were accepted in payments to the government. Recovering the science of money for the private profit of a small group produced harmful results: 120 years of continuous warfare spawned an unpayable national debt leading to excessive taxation leading to horrors like the Irish potato famine.
Before then, when a nation's money system was used for taxation, the revenue generally aided the society. But the Bank of England concentrated society's resources in the wrong hands, crippling the possibility for government to function properly, leading to a growing contempt of government.
Today it's still the bankers versus the society. At base, the battle remains private money vs. public money. The outcome determines whether the money system operates to serve the few in control, or the whole society. . .
Mankind can live under various forms of government from dictatorship to republic, but the best systems are those in harmony with human nature. Likewise many things can be made into money, but the best will be the ones in harmony with the nature of money.
Remember: don't confuse money with tangible wealth. Yes, commodities can be improperly monetized by law. The result will make the money system hostage to the commodities situation; hostage to the people, companies, countries that control the commodity. Ultimately it removes the monetary power from society and places it into the hands of the wealthy.
And don't confuse money with credit - either private or public credit. Yes private credits can be improperly monetized by law. But that gives great privilege to those whose credits have been monetized, to the detriment of the whole society. The money system then becomes an engine of injustice - as it is now. . .