Metallism vs. Chartalism

[allodial]

If you really consider that if in a system the Sovereign decides what is or isn't money, then perhaps money is ultimately a creature of and founded on sovereignty. The Midas story I was told was about potential dangers of the gold standard. Few seem to note that way way way way way back interest-bearing contracts tended to deal with the likes of crops or animals that could reproduce inherently. The idea of lending something lacking inherent "reproduce-ability" at interest wasn't necessarily heard of. IMHO there is a lot to be gleaned from studies along those lines.

[shikamaru]

If you really consider that if in a system the Sovereign decides what is or isn't money, then perhaps money is ultimately a creature of and founded on sovereignty. The Midas story I was told was about potential dangers of the gold standard. Few seem to note that way way way way way back interest-bearing contracts tended to deal with the likes of crops or animals that could reproduce inherently. The idea of lending something lacking inherent "reproduce-ability" at interest wasn't necessarily heard of. IMHO there is a lot to be gleaned from studies along those lines.

What you speak upon is interest and income vs. increase .