banking system??

Jimi Devereux

Should we return to the bartering system or continue to trust the banking system? Any or all opinions accepted

Pablo Sanchez

I want to hear more from you on this to see if you have thought it through, how would the barter system work, what would you trade for say, a house. What could you personally produce that you will be able to barter?

dudara

This is a question for the Economics forum.

As a previous poster has pointed out, a major advantage of banks is that they act as multipliers.

dudara

Amirani

A barter system can't work in any sort of developed economy. How are the exchange rates of different goods decided? What can you do about fractional units? What if a seller doesn't need what a buyer is offering but something else instead? Money is definitely the best system available.

Manach

The barter system would seem unsuited to taxation, hence the government might not be too keen on it.

WooPeeA

Current money system creates money with no value. €20 note has no bigger value then €10 note. The value of the money is an agreement between banks and the government which made all other systems illegal.

Years ago a currency was backed by some real value product, such as gold or silver. Back then if the government wanted to print money they had to have exactly the same amount of value in gold. A money note was nothing but a certificate that you could exchange for gold/silver at any time.

Current system creates nothing but a debt that at some stage may lead to the worst.

andrew

The problem with barter is that it requires a 'double coincidence of wants.' If I have a pig, and I want a horse, then I need to find someone willing to trade a pig for a horse. Until then, I can't make the exchange. So money is very useful in this respect, in that it allows anyone to trade anything for anything else.

You could do no worse than to introduce the North Dakota Banking system.
http://motherjones.com/mojo/2009/03/how-nation%E2%80%99s-only-state-owned-bank-became-envy-wall-street

The Bank of North Dakota is the only state-owned bank in America—what Republicans might call an idiosyncratic bastion of socialism. It also earned a record profit last year even as its private-sector corollaries lost billions. To be sure, it owes some of its unusual success to North Dakota’s well-insulated economy, which is heavy on agricultural staples and light on housing speculation. But that hasn’t stopped out-of-state politicos from beating a path to chilly Bismarck in search of advice. Could opening state-owned banks across America get us out of the financial crisis? It certainly might help, says Ellen Brown, author of the book, Web of Debt, who writes that the Bank of North Dakota, with its $4 billion under management, has avoided the credit freeze by “creating its own credit, leading the nation in establishing state economic sovereignty.” Mother Jones spoke with the Bank of North Dakota’s president, Eric Hardmeyer.

krd

Manach wrote: »

The barter system would seem unsuited to taxation, hence the government might not be too keen on it.

This is actually completely wrong.

Taxation can easily be applied to the barter system - and it is.

In rural Somalia, farmers grow grain and crops, and the local government confiscates a portion of their crops as tax.

And before we had a well established money system, farmers would have crops taken in lieu of rent and, or, tax.

During the Soviet era, any western firm dealing with the Soviet union, received payment in goods. And when Hitler and Stalin were great friends, their economic relationship was completely based on barter. Russian wood for German goods.

And don't think barter, and taxation, can stop at goods.

During the 90s, North Korea paid off debts to Russia by sending thousands of North Koreans to work in Russia as slave labour. That was in the 90s.

Just think how qiuickly a barter system would make those who benefit from the parasitic banking system poor.

Barter really only works for those who provide useful services in return for useful products.

andrew

krd wrote: »

This is actually completely wrong.

Taxation can easily be applied to the barter system - and it is.

In rural Somalia, farmers grow grain and crops, and the local government confiscates a portion of their crops as tax.

And before we had a well established money system, farmers would have crops taken in lieu of rent and, or, tax.

During the Soviet era, any western firm dealing with the Soviet union, received payment in goods. And when Hitler and Stalin were great friends, their economic relationship was completely based on barter. Russian wood for German goods.

And don't think barter, and taxation, can stop at goods.

During the 90s, North Korea paid off debts to Russia by sending thousands of North Koreans to work in Russia as slave labour. That was in the 90s.

The post to which you're replying said that barter makes taxation more difficult, not impossible. It's not that it's impossible to tax someone in a barter system, it's that you've to tax them in terms of what they produce, which is difficult if you don't want what they produce.

Duke Leonal Felmet

Jimi Devereux wrote: »

Should we return to the bartering system or continue to trust the banking system? Any or all opinions accepted

All too often these type of posts come from single post accounts...