What's the best alternative to a "debt based" global monetary system? Is there one?

[Aussie]

I've been pondering this question for a while now . . . and on the theoretical economic scale of things it's definitely above my pay-grade.

We hear talk all the time in gold circles about our "debt" based global monetary system and I do understand about how that works with fractional reserve banking, lending money into existence and the fact that credit has to keep expanding. It's a trap.

But what other viable systems are there?

A couple of questions for the GIM economic scholars . . .

1) What was the basis of the global money system before the Fed and Bretton Woods? I understand there was the international gold standard but how did it differ from today in terms of credit issuance? It's said that America from the 1860's to the early 1900's was it's most prosperous and productive - when gold and silver literally were money. Was this due to the type of monetary system then or the fact that the Fed gov't was tiny and there was no income tax or huge federal debt burdens so people kept all of their earnings (nice).

2) Would that system be better or worse would it be today? Is it practical for today? Would it be overwhelmed by the complexities of today's society and banking expectations.

3) Assuming that all FIAT currencies are headed much lower or to zero, are TPTB simply going to suddenly hit the monetary reset button with a global currency? Is that really practical? It's not something they could spring on the world too easily. How would the Banksters not lose too? How can they re-back currencies without using gold and sending the gold price far higher?

I'm just trying to imagine what things might be like even beyond my life time, say another 30 or 40 years from now. What kind of financial world do our kids have to look forward to? Will it get righted eventually?

Cheers

[Hope+Change]

1) The international gold standard. Goods were traded internationally for gold, or silver. If you had a trade surplus, gold would be sent to your country. If you had a trade deficit, gold would exit your country. The country which exports the most products receives the most gold(wealth).

2) It would be far far better for everyone except banks, the wealthy (top 5% or higher), and governments/government employees. The rich would still be very well off, but their wealth's ability to multiply exponentially would be diminished.
Remember that much of the current complexity is utter nonsense. If you look at the entire system, the essence remains the same: produce a good or service, and sell it for currency. Then use that currency to purchase other goods and services.

3) Who knows for sure. The system could chug along slowly like a wounded animal with continuing currency debasement for decades.
OR - TPTB could crash the global economy at a moments notice, maybe even tomorrow, and this manufactured crisis would give them the perfect opportunity to create a one world fiat currency. What percentage of sheeple would accept this, especially during a crisis much greater than the previous one? 80%? 90%? 95%? 99%? None of them store food or gold or silver and most likely live paycheck to paycheck. Their very lives are dependent on the state.


"What kind of financial world do our kids have to look forward to? Will it get righted eventually?"

Isn't that precisely why this forum exists?

[TimoneX]

When I examine a global currency...like the SDR(gak) of the IMF I have a great deal of difficulty seeing it as a viable global currency. Never mind that the bankster scum peddling it want to use it to uniformly oppress the masses, I just can't see a way it can work long term at this point in time. I mean look at the EU's systemic problems. Germany's currency needs are very different than Spain's & Greece's. To unify them under one currency and one interest rate sounds lovely in theory, but isn't so pretty in practice. Perhaps one REAL currency(asset based or debt free paper) could work in this situation if governments could somehow keep their meddling hands off & avoid artificial interest rate moves and adjusting the money supply.

[GOLD DUCK]

QWAK,People are FINELY confronting the greater REALITY that "NOTHING is FREE" -- never has been and NEVER will BE and WHY they were FOOLISH enough to believe that GOVERNMENTS could DO what they as indiviguals could NOT --- "SPEND what THE have NOT GOT" -- the PARADIGN is BROKEN -- like AWAKENING from a DREAM to COLD HARSH REALITY -- they begin to SCREAM in ANGUISH at -- HOW MUCH -- FREE REALY COSTS!

The definition of MONEY has been SOooooooo DEBASED and DISTORTED that the very concept of MONEY = another persons WORK and EFFORT has been LOST!

the DUCK

[AGgressive Metal]

The best system is no centralized system at all. A total free market in money that is not monopolized by any single fiat or metallic currency. Gold would most likely emerge as the standard international currency, but people would be free to use what they wish in local everyday transactions, like community currencies or silver, etc.

[earplugs]

No system is adequate when the people who compose the system are idiots

[Aurumag]

No system is adequate when the people who compose the system are idiots

If you are referring to the Federal Reserve Sytem, then I would beg to differ:

The FRN system is a brilliant design which, now that digital transactions are in the majority, has kept the banksters far ahead of the peons, both in terms of wealth, and especially power.

Local currencies pose a direct threat to central banking, and as evidenced, those controlling the FRN will expend significant resources in order to maintain their fiat empire.

First they eliminated competing currencies, but I wasn't involved.

Then they closed the swap meets, but I didn't care.

Then when hyper-inflation set in, I had nothing but FRNs...