In December 2009, Sepp Hasslberger introduced to us Bibo, a proposed standard for stable currencies, that would replace the current inherently unstable banking money system.
This article has become our most comment rich article, in particular through a recurring debate between one of the Bibo co-authors Marc, and Ardeshir Mehta.
Ardeshir has written an article that challenges one of the main points of monetary reformers, i.e. that the current system leads to the infinite creation of debt through compound interest.
You can find it here.
“Currently, most if not all money is loaned into existence by banks, and is thus based on interest-bearing debt. There is no question that neither interest nor debt-based money are good for society, and I have written denouncing both debt and interest elsewhere. However, there is a fairly common thesis, based on the fact that money is loaned into existence as interest-bearing debt, that if new loans are not continually being issued in ever-increasing amounts, enough money will not be created to pay the interest on existing loans; and as a result, at least some those loans will be defaulted upon, resulting in inevitable foreclosures. “