So it seems that you recognize that if determined to to buy all the gold in the world, the Federal Reserve would have to drive the value of is notes to zero.

Therefore it follows that your definition of “free money” would mean the total abolition of all the traditional currency that now exists since it is all based on debt (with the exception, of course, the gold certificates issued by the Treasury to the Fed at the stated value of $42/oz).

Ironically, creation of “free money” is already a part of our current monetary system because of the continuation of government gold reserves. If the Treasury wanted to create about 15 trillion of “free money” right now it could simply call those gold certificates and revalue them at $50000/oz.

I agree that the age of the dominance of debt based currency is over since the high EROEI oil boom which sustained the growth necessary to feed its interest payment requirements is also over.

I do think a private debt jubilee and an UBI will be necessary to offset the continued deflationary effect of technological development as we transition to a new monetary system, but that allowing central political power to have any control beyond determining what that UBI amount will be is a mistake. Assigning any elite the power to inflate the money supply leads to corruption.

Also, given a hard look at the raw geographical and demographical challenges facing the world as the USA retracts its willingness and ability to provide a navy to protect global trade, projections of a techno-utopia might be very premature. Zimbabwe’s “free money” collapsed and when the USA decides it doesn’t want to provide the world’s reserve currency any longer and the huge amounts of international dollar based loans get called, people will want gold more than their national currencies and they will collapse. One can not eat gold but there will always be someone with extra food that will trade it for gold before it rots. No food and some gold is still better than no food and no gold.

People across all cultures for 5000 years value the attributes of gold that make it perfect money. Allow gold ownership to freely trade on the block chain and traditional currency is no longer needed. One of the largest countries in the world is already doing this by incorporating the Kinesis monetary system within is largest retail banking system. Gold itself would become your “free money”. The ability of humans to create value is indeed as limitless as sunshine, but without a stable money their abilities are corrupted by greed. Any fraction of a gram of gold can be traded for anything and that leaves people free to decide what to value and what not to value. A stable money can be infinitely subdivided. Once again, assigning any elite the power to inflate the units of money leads to corruption.

To continue I would need you to describe your view as to the function of interest. Since gold has no counter-party risk and allows one to decline to participate in debt, I’m curious as to how you envision the function of interest rates under your “free money” scheme.

SGI Buddhist, Loves Irish and Latin American Literature, History buff, knows a great deal about Medicare

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