mellor the future of money; from financial crisis to public resource (2010)

[...]... time after the coin ceased to exist Money as currency is therefore not valuable because of its metal or other physical content as the metallist commodity theory of money claims, rather, it is a token of value The latter ‘Chartalist’ approach (Chartal is taken from the Latin for token) sees the value of money as resting on the power of the issuer, not the intrinsic worth of the money From the social... and global level? The failure of the Anglo-American attempt to financialise society and turn the whole population into investors has shown that the idea of the democratisation of financial capitalism is a contradiction in terms The huge cost of the financial implosion and its impact on the productive economy has fractured the dogma of the privatised money system and the supremacy of the capitalist market... decried, the state is expected to produce unlimited sums of money to stabilise the financial system when it experiences its regular crises The exposure of the reliance of the private financial sector on the state has brought the financial system into Introduction  3 full view and opens it up for analysis The opportunity must be taken to challenge the private control of finance and ask whether such... hedge funds Public assets were sold off and public investment was privatised through private finance initiatives The chapter will explore the implications of this latest phase of speculative finance capitalism and its role in creating the conditions for the financial crisis The fifth chapter will describe the key stages of the financial crisis as it moved from the trigger of a subprime crisis to a banking... aspect of human society should be owned by, and serve, the interests of capitalism If the conventional view of money and its systems is not challenged, public intervention in the financial sector during the current crisis will only be a stepping stone back to hidden state support of a more carefully regulated capitalist financial sector – until the next crisis The core argument of this book is that the. .. banking and financial crisis and finally to a full-blown economic crisis The origins of the crisis will be traced to the changes in banking and personal finance as described in chapters two and three and the activities of speculative finance capitalism explained in chapter four It will be argued that what the crisis clearly reveals is the public underpinning of the financial sector, as states across the world... ‘money from nowhere’ The radical implications of this will be explored The chapter will go on to look at the changes that took place in banking in the late twentieth century which saw an explosion of new financial instruments and financial institutions These innovations in the financial system, together with the globalisation of finance and a political regime of light regulation, laid the basis for the. .. the same as the value of the metal of which it is made (Innes 1913/2004) Given the varying amount of precious metal in coins, 10  The Future of Money the only guarantee of the worth of the coin became the face or signature of the issuer, basically the authority behind the minting Far from being a precious commodity that had become readily accepted through trade as the barter theorists thought, money... Future of Money out of poverty While debt had seemingly been democratised, the foundations were being laid for the future credit crisis Chapter four looks at the main beneficiaries of the massive issue and circulation of credit under the privatised financial system In the late twentieth century the financial sector eclipsed the productive sector of the Anglo-American economies and captured the policy... theory of money the basis of this high-powered money 18  The Future of Money was a store of precious metal In practice, for both social and more market oriented theories, the basis of high-powered money is the capacity of the state to raise taxes and, behind that, the productive capacity of the national economy For Victoria Chick money in the modern western economy rests on the mutuality of state and . describe the key stages of the financial crisis as it moved from the trigger of a subprime crisis to a banking and financial crisis and finally to a full-blown economic crisis. The origins of the crisis. w0 h0" alt="" The Future of Money Mellor 00 pre 1 23/02/2010 15:07 Mellor 00 pre 2 23/02/2010 15:07 The Future of Money From Financial Crisis to Public Resource MARY MELLOR Mellor 00 pre 3. Given the varying amount of precious metal in coins, Mellor 01 text 9 23/02/2010 15:07 10  THE FUTURE OF MONEY the only guarantee of the worth of the coin became the face or signature of the