Comment: While I agree with your

(See in situ)

In reply to comment: Dictators dictate (see in situ)

Republicae's picture

While I agree with your

While I agree with your premise however, even in terms of the local currency in Wörgl, Austria, the currency was backed by 40,000 Austrian schillings in a bank to issue the local currency. That gave the currency a base of recognized value, without it the system would not have functioned nor would it have been "stamp scrip" been accepted as a means of exchange. It was a good system, but it was not simply that someone decided to print paper and call it money. It also worked because of the economic situation of the period.

"he (Silvio Gesell) decided to put the money on deposit with a local savings bank as a guarantee for issuing Wörgl’s own 40,000 schilling’s worth of stamp scrip. He then used the stamp scrip to pay for his first project. Because a stamp needed to be applied each month (at 1% of face value), everybody who was paid with the stamp scrip made sure he or she was spending it quickly, automatically providing work for others. When people had run out of ideas of what to spend their stamp scrip on, they even decided to pay their taxes, early."

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun