Customer Reviews

The End of Money and the Future of Civilization

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This will be an interesting book for those curious about the history of money, how it evolved into modern day currencies, and how to break the banking monopoly on credit. The author who is in the alternative exchange movement advocates the creation of credit clearing houses for individuals. This is modeled after the clearing houses established by banks that enable banks to clear their books by calculating how much each bank owes the other as opposed to running money for each individual transaction. For example if a check from bank A is cashed for $100 at bank B, and other transactions have two $50 checks from bank B cashed at bank A then they clear each other out with no one owing anything to each other. Of course it is much more complicated when you get several banks involved over lapping each other, but I hope you see the principle. The author advocates that if credit clearing houses are set up for individuals and business and credit is completely based on goods and services that are created instead of currency continual printed to cover debt interest, then it would stabilize the business cycle of booms and busts. It would also take banks monopoly on loans and shift them to individuals.
The author also expresses strong views on the separation of money and state. He believes that the ability to endlessly print currency, run up national debt, and for the government to print money only backed by the credit of the federal government is antiquated. With the advances in Visa, debit cards, wire transfers, and the like, currency will no longer be needed in the near future. He instead advocates the use of credits linked to the valuation of a basket of commodities. This book is very fascinating and I believe we will see the advances he talks about come to fruition over the next few years. Very insightful read for curious minds.

This is not a book you can glide through; it took me almost three months to read it, but it was time well spent. I have a degree in finance, and I was astounded at how little I knew about the history of money and the implications of how it has evolved into a situation where control of money and the economy is held by a small group of people; very powerful people. As I started to read it, my first impressions were that this book was in the vein of some conspiracy books. And yes, there is an index entry for the Trilateral Commission! But as I continued, the more everything started to fit together. This is not some doomsday book, but a carefully researched thought-provoking work.

The author proposes that to help make money more accessible to everyone, and to be more equitable to all, is the formation of alternate currencies. He details how that has taken place in the past, such as in post World War One Germany, when hyperinflation gripped the country, and in 1923 a loaf of bread cost 428 billion marks. An alternate currency was introduced, with some key features that are crucial for any alternate currency, such as no legal tender compulsion, and reasonable limits on currency creation. Other examples come from various South American countries. In the United States, an example from Pennsylvania after the tragic Johnstown flood shows how this concept can work. A current example not mentioned in this book, but is covered in the book Africa Rising, is how cell phone minutes have become a medium of exchange in several African countries, combating hyperinflation there. You can get your car repaired in exchange for cell phone minutes!

The book highlights the major problem with current currencies as there has been a blurring of the distinction of the two basic purposes of money, and the role of central banks such as the Federal Reserve Bank in the USA. The first basic role of money is as a medium of exchange, or a store of value. The other is as a credit instrument, to help fund future production. What has caused our current predicament is the conflicts of interest between the banking industry and the central banks, in regards to creation of currency.

He then details how a gradual transition to a more equitable solution is possible. The main idea is the creation of "barter clubs" to get to the point where cost of credit becomes reasonable and controlled. He details past attempts at such barter clubs, and gives a balanced coverage of both the successes and the failures, and details what can be done to avoid the past failures. The beauty of the barter club is that members can obtain reasonable amounts of credit for current inventory without any interest charges He mentions the key to the success of these barter clubs is to recruit the entire supply chain; manufacturers, wholesalers, service businesses, and retail. I know from experience with a barter club in the 1970s a major drawback was almost all members were service businesses such as beauty salons, realty agents, and car repair. Taxation implications are addressed; barter clubs are not an attempt to bypass income taxes. Barter club is perhaps a too narrow term, but sufficient for this review.

The book has a very thorough index, 198 footnotes, and four pages of references from a variety of sources. Two appendixes contain a sample member agreement for barter clubs and a proposed standard measure of value.

This book could have a profound positive impact on local and eventually global economies. It is definitely worth the effort to read through it, if nothing more to better understand our financial system and its weaknesses in order to garner support for a more equitable and secure financial system.

Why are some of the most important topics so very boring? Is that why people don't know these things? They can't STAND to get through books like this in order to learn them?
I totally agree with everything this book is saying - not only does it do a thorough job defining the history and the problems with money, as we know it today, but it offers very real, practical solutions. Solutions that I believe are going to be vital if the US is going to retain it's world power status and avoid revolution.
That said, there are cartoons on youtube that are much more accessible to the average joe that needs to be aroused from 'this is the way it works' slumber. NO IT DOES NOT. Therefore, giving this to your friends to try to help them understand is probably NOT a good idea - and that would be the best value of the book, because chances are, most people that are going to buy it ALREADY KNOW how the fractional reserve system works, and already understands that the FED is NOT part of our govt. and that central banking was NOT something the founding fathers ever wanted in AMERICA!
That said, this book can give those already familiar with how money works an excellent arsenal to be used in discussing the future of currency and how loans COULD work to build America instead of forcing us all into positions of wage slaves for a few elite.
Even though I am pretty well versed in Austrian economics, and the current problems, I found I had to read this book about 1/2 a chapter at a time. It is 'hard' reading.

The fraudulent nature of our monetary system should now be obvious to everyone. But, it's not. However, the damage it causes is obvious and people are starting to realize the problems don't simply happen. They happen because fraud is built into the system.

When a very junior senator with one of the all-time worst voting records (F ratings from the citizen watchdog groups) can be "elected" to the Presidency of a nation staggering from massive debt illegally amassed by the two previous administrations and then push through a massive pork barrel spending plan, you know something is very wrong.

And you know that further debasement of a currency that lost 50% of its value over the last two decades is a given. This sorry state of affairs, however, is only a small part of the total fraud picture. There's more. Much more. And you are paying for it.

What's going on, that the criminals behind this sort of theft are not prosecuted? In a word, ignorance. During the 2008 "election" for President, the only candidate to talk about real issues was vilified and marginalized by the mudstream media. That candidate, of course, was Dr. Ron Paul. One of the things Dr. Paul advocated was an end to the Federal Reserve, also known as the Frauderal Reserve. Did he advocate that because he's the crackpot the mudstream media made him out to be? Or did he advocate that because he knows a few things that all Americans should know?

One way to answer that is to dust off an unused document called the U.S. Constitution and compare Dr. Paul's platform statements to it. Suddenly, he does not look like a crackpot, unless you consider all of our Founding Fathers to be crackpots. Four of our Supreme Court Justices do, but that's something other books explore. This book explores the colossal fraud conducted via our monetary system. By the way, we did have a functioning (as opposed to malfunctioning) system during our nation's history as late as 1863. Read about Andrew Jackson to learn more.

To understand this book, it helps to read many other books on money (which I have). I'm not talking necessarily about books written by activists or others with an axe to grind. On the reading list are many books that are just historical in nature and with no political agenda. What if you haven't read those books? The author provides enough background that probably you will "get it." He also provides basic analysis of money in action, by following money through various types of transactions. So, he's not talking abstract theory but he is explaining how things work.

For example, his discussion of what really goes on when banks charge "interest" (their word for it, but it's not actually interest in the real sense of the word). You follow the flow of wealth, and you see "interest" isn't wealth at all. It's money created out of thin air. Interest doesn't need to be like that, but it's how we do it today. This misapplication of the concept of interest has the same effect as adding water to milk. Or in this case it may be more appropriate to compare this dilution to the way a crack dealer cuts drugs to rip of his clientele. Same thing with "interest." Especially when it's compounding (growing exponentially). Even a cursory look at this situation shows it's unsustainable, yet we victims of this system permit this chicanery to go on.

The underlying problem is our system is based on debt instead of on credit. That isn't credit in the sense of "credit cards," but I won't explain it here. The author does an absolutely fine job of explaining the difference, and that explanation is a key feature of this book. When he explains how an existing mortgage system (not of Western culture) based on credit instead of debt works, you cannot help but ask, "Why don't we do it that way?"

We don't do it that way, because our debt-based system enables the most psychopathic of us to benefit at the expense of everyone else and they aren't comfortable trying anything that is win-win. Actually, we don't do it that way because, on the whole, we are ignorant of how a sensible monetary system should work and what we have instead. This book can correct that, one reader at a time.

Greco is a recognized expert on money, currency, and finance. He does an international business in speaking (at conferences) and advising on these topics.

This book does contain his opinions, but he explains those as such and justifies them in a fairly balanced manner. To do this, he draws on an astounding amount of the literature. The book is well-researched and the author is quite rational. I was impressed that the book contained no leaps of logic and that the quantitative analyses were good. After completing the book, I read his bio. Like me, he's been an engineer and entrepreneur and has an MBA. That could explain the orderliness of his thought process and presentation, plus his excessive research to make sure he has his facts right. Not all engineer/MBA types fit that profile, but most do. Unlike me, he's also been a college professor. Anyhow, the word "rigorous" is considered a compliment among types like us, and Greco deserves that compliment.

I also appreciate the fact that he explains why "backing the currency with gold" (redeemable upon request) would be disastrous and would not fix what's actually wrong anyhow. His explanation is "must read" stuff for people who are rightfully disenchanted with the way our monetary system cheats people.

This book consists of twenty chapters and an epilogue. It has two appendices, extensive notes, and one heck of a bibliography. While not formally divided into parts, the book does have three parts:

One. An explanation of the problem. What's wrong with our current system, what it's done to us, and where it's taking us.

Two. Explanation of money, currency, value, wealth, debt, and credit. And how they relate to one another and to a society.

Three. The solution. This is much more complex that the other two parts of the book. For me, it was harder reading because it was new material with new concepts. I'm not sure I grasped them all. I don't think I understand everything I know about it. One reason for my problem here is Greco doesn't trot out a slap-on bandage. There are nuances here, and by exploring and explaining them he is going to lose some readers along the way. But that's fine. If we all understand the first two parts, then we have solved more than half of the existing problem already. This third part is really for people who are ready to do something about the problem. And it's for policy makers so they can begin to grasp what a real currency would look like. It seems that right now they have no idea.

It's bothered me that in each of the federal "elections" in my lifetime, the Demopublican candidates have steadfastly refused to talk about any issues of any substance whatsoever. People see the election as a contest between the Crips and the Bloods, rather than as a choice between candidates who actually offer something other than more of the same criminal pillaging. Ron Paul offered that in 2008, but unfortunately ignorance defined the debate and he was forced out. Perhaps in four years, the American people will actually vote instead of wasting their vote on a Crips vs. Bloods contest. The lesser of two evils is still evil.

Real voting would be for candidates like Dr. Paul instead of yet another spendaholic Demopublican. But people who don't understand the real issues don't do real voting. Which is why we keep getting more of the same fraud perpetuated on us. Wars, inflation, mass unemployment, the IRS, and other pestilences are completely avoidable.

If this nation survives the damage inflicted by the current misadministration over the next four years, perhaps enough people will understand the money scam and vote in a legitimate, law-abiding government. One that can motivate people with respect, instead of fear.

In my lifetime, this country has gone from being the greatest nation on earth to being the poorest in human history. The primary tool of our demise has been this fraudulent monetary system. Now it would be a major feat for us to rise to third world status on some key metrics. That is a very sobering thing.

Read the book. Become informed.

This book arrives at precisely the proper time in monetary history, with the United States destroying not only its own currency but the world's reserve currency which underlies all modern economies and banking systems. Liberty Dollar, an alternative currency based upon silver in the Northeastern United States, has just had all of its principals arrested. This follows a raid and seizure that occurred in November 2007. The Fed and the Treasury are determined to use their monetary monopoly to preserve the profitability of seniorage until the final collapse, forcing all savers to eat the inflation they created to pay for fantasies they could not afford otherwise. The Chinese are laughing at our Treasury Secretary when he says the dollar is "safe," while the leadership of China drop their dollar holdings like a bad habit to obtain tangible commodities. Other major trading partners are following suit.

Hence, The End of Money and the Future of Civilization. While the title is unimaginative and the cover bland, the content was thought-provoking and original. Greco appropriately recognizes the present monetary disorder, and aims to correct it by demonstrating the potential democratization of the monetary system by using credit clearing systems at local levels.

The first seventy-five pages are spent discussing the nefarious ways of Central Banks, going all the way back to the Bank of England and up to the present-day Fed. He briefly touches on the New World Order, and the deflation and inflation that are caused by the power of Central Banks to move markets and remake the world in their distorted image, as Money-God gone mad. Many readers with a more conspiratorial orientation will be familiar with these ideas; for others, they may be new. But the introduction is nonetheless necessary to set the stage for the meat of Greco's argument.

In Chapter eight, Greco calls for the separation of money and state. This is brilliant in theory. A revolutionary thought for most, but because paper money systems are so abused by the Money Powers That Be with an artificial monopoly on issuance, the costs of allowing this monopoly are not worth the purported benefits. It is evident that the author has thought deeply about the various alternative monetary regimes that might be possible, but they all strike me as deeply flawed. For example, are bad debts transmitted throughout the currency system? Since one of the chief virtues of banks is information (interest rates, credit scores, risk level, etc) how does society compensate for the lack of this information? Would credit clearing associations be capable of fulfilling this role? If the printing press is decentralized (commendable in principle) how do we prevent abuses? The author does not spend enough time dealing with these issues in my view. It's easy to say, "look for the warning signs - currency is losing value," but this is too late for those who hold notes in the devalued currency as savings. Who protects them? We cannot count on corrupt Western governments nor the banks, so how would this work?

Another issue that would come to the fore is that of redeemability. Greco is no goldbug, but does recognize that there must be some sort of tether on page 207. He also recognizes the shortcomings in chapter nine - a monetary tether like gold can lead to extreme concentrations of economic power, and can artificially constrain growth to the rate of the mined gold supply. This issue needs more clarity, in my view, and I would argue that it's easier to entrap individuals in a web of debt through fiat money than a gold or silver standard.

The author should have dedicated more thought and emphasis to the role of savings and investment. As a student of the Austrian school, this is paramount. The limits on the type of credit allowed would honor savings and investment fairly, rather than introducing fraudulent fiat cash into the system, but I do think most individuals or even corporate boards or governments would have trouble making the distinction between the two - this is an advanced topic. Most people are used to thinking of money as a universal standard of account, not the different forms it takes unless they are an economist or perhaps an institutional investor. Hence the practicality of metal monetary standards - it democratizes but also simplifies money itself.

In sum, this book is a terrific effort to deal with some very difficult and complex issues. I would welcome a second edition, which could perhaps clarify the author's positions on several points.

Overall I found this an interesting read, a bit challenging since I have no background in economics or finance, but was still able to piece together the big picture. I was struck how similar the issues are to the online world: free software vs. commercial (Firefox vs. Internet Explorer, Linux vs. Windows), community built websites (Wikipedia vs. Britannica). If you care about open source and open content issues, then the same sort of open, democratic, egalitarian ideals can be applied to the money system. It's remarkable once you see a vision of possibility, the old (current) money system seems outdated, and somewhat evil.

Greco shows that "elitism" - the central banks monopoly of credit - is at the root of the problem. The solution is to decentralize power and wealth by eliminating the banking credit monopolies which have a stranglehold on credit (money).. in other words, more openness, participation, "egalitarianism". Greco explains how to do this using what are called credit clearing or credit exchanges that can eliminate the need for money entirely. Just as banks already clear checks between one another in clearing exchanges, without actually moving money back and forth (debits and credits cancel each another), individuals could operate at the same level, without the need for money - or interest, or needing a bank for credit. Computers and the Internet make it more practical. It's an audacious long term vision - just as Creative Commons could take generations to make a dent in the stranglehold of copyright - but check it out and understand what's happening on the forefront of monetary reform.

This book provides a good background on money in general, from before the establishment of the central bank to our current global financial situation. The author uses familiar analogies to make his points easy to understand. Hi viewpoint is against an 'elite' group of people who are favored by the financial industry and provides his theories on how to decentralize control of money. He uses plenty of quotations and examples to illustrate his viewpoints. It will be pretty interesting to see what will happen in the future in this age where everyone is connected to each other like no time before. Overall, although at times is sounds a bit apocalyptic, this is a book worth reading to get a good insight into the world of 'money'.

In this well-reasoned and well-researched book, Greco provides some intriguing proposals for credit clearing and trade exchanges that are aimed to address some of the deficiencies of existing credit markets. Greco provides an excellent summary of the history of money and its relation with the state and catalogs the rise of central banks. The chapter on inflation is well-researched and is a must-read. After discussing the evolution of credit money, the author then critiques the commercial trade exchanges and offers plans ranging from trading platforms, development plans, and organizational structures, including changes in government policies. The rationale for these proposals are well made and quite convincing. However, the sweeping range of these proposals may require a far more rigorous risk analysis than what the author has alluded to. In the absence of formal techniques that can assess the impact of these proposals and perhaps even back-test, it is difficult to see how practical these proposals are. Nevertheless, the thought-provoking book is a must-read to understand money and credit through this unique interpretation.

Almost a month ago I was given a book by its author. His name is Tom Greco and his book is "The End of Money and the Future of Civilization." I thought I'd read the book casually, skim most of it and then say something nice to the author. The bottom line is that I just finished the book yesterday. I became fascinated by it, read it carefully, savored every page and came away from the experience far more enthusiastic about the book than I am for our modern financial system.

Unlike most books about money it doesn't serve as an alternative to a sleeping potion. Unlike most books about money that identify the problems with our monetary system, "The End of Money..." not only defines the problems but also identifies the solution to the current crisis.

The book is readable, entertaining, enlightening and understandable to anyone, not just monetary students.

Tom Greco strips away the mysteries that blind most of us to the functioning of debt money and fractional reserve banking. He explains how money is created by monetizing debt and the resultant twin imperatives for ever more debt and unsustainable growth to feed the insatiable demands of compound interest.

But then the book gets really interesting when Greco shows that there are various alternatives to the current debt based monetary system that address its defects and offer incredible promise of enabling a healthy, prosperous and sustainable future for all. And, these alternative systems aren't something that Greco dreamed up or that have never been tested. Rather he describes and demonstrates several examples from around the world that have survived, in some cases for decades. Greco also provides a candid description of the problems alternative monetary systems must confront, including many that are self inflicted by the organizers and users of the systems.

Thomas Greco is no dreamer. He is a realist and the work he has completed offers a clear and honest evaluation of the current situation, the dangers that ultimately could threaten civilization and the hope for a reasonable future. In short Greco is not just willing to say "The Emperor has no clothes." He also showed me the money, warts and all.

If you really want to understand money, the problems with money and solutions to enable civilization to prosper, read "The End of Money and the Future of Civilization."

You need to know this information, understand it and act upon it.

Okay, okay, that's nothing new; we're always on the brink of the future, but as Thomas H Greco, Fr. has made clear in "The End of Money and the Future of Civilization," that future is very bright. In "Future," Greco makes the case that we're on the brink of a revolution in money and, thus, the precipice of a new, more egalitarian, more responsible, and more fulfilling existence (quite a claim, I know).

The author reviews the current state of the economy with a history of money, government, and banking with a fairly easy-to-understand style mixed in with a touch of conspiracy theory about the bankers that control the entire system. His take: a few bankers are control of the central banks of the world; the central banks control the governments, the governments control the people. We can bypass all that control by making our own money, as Greco recommends: Mutual Credit Clearing associations that allow people to trade goods and services without relying on money (which is affiliated with the current power structure).

This book is well-thought-out, inspirational, and could lead the way to the dawn of a better world. The structure of the book is a little out of whack and could be better organized to allow readers unfamiliar with the banking process easier access to the information, but all in all, this is a highly recommended read.

Get the book, take it in, and help bring in the future.