.Funny Money (the
money) parenthetical suffix added
because Funny Money entry
is about a movie with that name.
From Wikipedia, the free encyclopedia
Funny Money (the money) is what critics call
fiat money--if and when it is sometimes issued and spent
by a sovereign nation to pay its bills--rather than
always being lent by banks at interest to credit worthy
borrowers.
Almost all nations today use only fiat money--that is,
money that cannot be converted into any other money but
itself. But they create such money by lending it at
interest--not by spending it to pay some or all of their
bills.
This difference in the way new (or more) money
gets into circulation is thought to better control the
total amount of money in circulation: if there is too
much of it, hyperinflation may result.
Many money reformers (often political activists)
advocate funny money and call it debt-free money--meaning
there is nothing funny about it.
Their advocacy is based on the belief that if
debt-free money is saved in high enough amounts,
demand, (in markets where money pays for the things we
need), will be low enough for supply to remain in
sufficient balance with it--for prices to remain
affordable.
This would mean that (for that nation at that time)
the debt-free money was successful--and hyperinflation
did not necessarily follow its use.
The idea to use debt-free money (when there is slack
in the labor market and a demonstrated need for more
supply--to end poverty, want and neglect), is advanced by
reformers as a way to reduce taxes and resistance
to government spending.
The reformers believe such governments will be able to
buy infrastructure and other things nations and people
really need (and may produce)--if such money can motivate
them to get organized and go to work.
Obviously, not every nation can spend all the new
money it wants to spend ahead of delivery of products it
expects to receive. Only those nations, with a successful
monetary system of production in place, will be able to
initially augment their debt-based money with some
debt-free money.
If this greater spending works well, a nation
may be able to grow its production at rates higher than
ten percent per year--until all its people are
"rich"--in the sense that none of them are
poor.
The best source for advice on the economic principles
of money and production designed to end poverty and
unemployment is the Center for Full Employment and Price
Stability (CFEPS) at the University of Missouri Kansas
City (UMKC).
Funny
Money (the money) - Wikipedia, the free encyclopedia
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