http://www.monetary.org/speech-at-the-u-s-treasury-dec-4-2003/2010/12
Stephen Zarlenga’s speech at the U.S. Treasury (Dec. 4, 2003)
On December 23, 2010, in Research & Articles, by AMI
I thank the US Treasury for inviting me. It’s a great honor and opportunity to bring the research results of the American Monetary Institute to your attention, which are relevant to the developing fiscal crises faced by several states. Part of our 501c3 mission statement is to do just that.
The fiscal problem has its roots in the structure and control of our monetary system and I intend to show how that structure has ultimately been based on a false or inadequate concept of the nature of money.
THE PROBLEM IS THAT MONEY HAS NOT BEEN ACCURATELY DEFINED
Perhaps the chief failure of economics is its inability, from Adam Smith to the present to define or discover a concept of money consistent with logic and history. Economists rarely define money, assuming an understanding of it.
It’s still being argued whether the nature of money is a concrete power, embodied in a commodity like gold; or whether it’s a credit/debit issued by private banks. Does its value come from the material of which it’s made? Or is it, as we have concluded, an abstract social power – an institution of the law, having value because its accepted in exchanges due to the sponsorship of government?