American Monetary Institute
Encyclopedia
The American Monetary Institute is a non-profit charitable trust
organized in 1996 for the "independent study of monetary history, theory and reform."
The American Monetary Institute is dedicated to monetary reform
and advocates taking control of the monetary system out of the hands of the private banks and placing it into the hands of the US Treasury
. They argue that this would mean money would be issued by government interest
free and spent into circulation to promote the general welfare. They argue that this would mean that substantial expenditures on infrastructure, including human infrastructure (education and health care) would become the predominant method of putting new money into circulation.
Its research results are published in Director Stephen Zarlenga's 736 page book, The Lost Science of Money.
This book asserts that money did not emerge from barter between individuals, but rather through trade
between tribes and as part of religious worship and sacrifice. Though this is not the mainstream view, there are other scholars of money, such as Keith Hart
, who agree that money developed in this way. The reason this distinction is believed to be important is because, according to the Institute, it is the definition of money which determines how the public will allow the money supply
to be controlled. If money
is a commodity
to be traded, then all that matters is that the money is 100% backed by some commodity, like gold
or silver
for example. If money is credit, then it makes sense that bankers control it, as they do in the United States
today. But if money is an artifact of law, whose value is derived from law (payment of taxes and legal tender laws) then the Institute argues it would only be proper for the government to issue, and control the money supply
. According to the Institute, it is this last definition that is supported by the history and nature of money. Government-controlled money is also postulated to be more stable than credit money or commodity money.
Coins have been claimed to represent an advance over weighing out precious metals with a fixed amount of precious metal being stamped so they need not be weighed and could be exchanged more conveniently than lumps of metal which needed to be weighed. However, Zarlenga emphasises the ratio of gold to silver in ancient coinage, and asserts that the variability in this ratio was crucial to understanding trade in the ancient world, the fall of the Roman Empire, and the drive behind the Crusades.
, Richard C. Cook
, William K. Black
, Dennis Kucinich
and wife Elizabeth
Charitable trust
A charitable trust is an irrevocable trust established for charitable purposes, and is a more specific term than "charitable organization".-United States:...
organized in 1996 for the "independent study of monetary history, theory and reform."
The American Monetary Institute is dedicated to monetary reform
Monetary reform
Monetary reform describes any movement or theory that proposes a different system of supplying money and financing the economy from the current system.Monetary reformers may advocate any of the following, among other proposals:...
and advocates taking control of the monetary system out of the hands of the private banks and placing it into the hands of the US Treasury
United States Department of the Treasury
The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue...
. They argue that this would mean money would be issued by government interest
Interest
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds....
free and spent into circulation to promote the general welfare. They argue that this would mean that substantial expenditures on infrastructure, including human infrastructure (education and health care) would become the predominant method of putting new money into circulation.
Its research results are published in Director Stephen Zarlenga's 736 page book, The Lost Science of Money.
This book asserts that money did not emerge from barter between individuals, but rather through trade
Trade
Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...
between tribes and as part of religious worship and sacrifice. Though this is not the mainstream view, there are other scholars of money, such as Keith Hart
Keith Hart (anthropologist)
Keith Hart is a Professor Emeritus of Anthropology at Goldsmith's College, University of London. He co-directs the Human Economy Group at the University of Pretoria and is Honorary Professor of Development Studies at the University of Kwazulu-Natal, Durban. His main research has been on Africa...
, who agree that money developed in this way. The reason this distinction is believed to be important is because, according to the Institute, it is the definition of money which determines how the public will allow the money supply
Money supply
In economics, the money supply or money stock, is the total amount of money available in an economy at a specific time. There are several ways to define "money," but standard measures usually include currency in circulation and demand deposits .Money supply data are recorded and published, usually...
to be controlled. If money
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
is a commodity
Commodity
In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....
to be traded, then all that matters is that the money is 100% backed by some commodity, like gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
or silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
for example. If money is credit, then it makes sense that bankers control it, as they do in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
today. But if money is an artifact of law, whose value is derived from law (payment of taxes and legal tender laws) then the Institute argues it would only be proper for the government to issue, and control the money supply
Money supply
In economics, the money supply or money stock, is the total amount of money available in an economy at a specific time. There are several ways to define "money," but standard measures usually include currency in circulation and demand deposits .Money supply data are recorded and published, usually...
. According to the Institute, it is this last definition that is supported by the history and nature of money. Government-controlled money is also postulated to be more stable than credit money or commodity money.
Coins have been claimed to represent an advance over weighing out precious metals with a fixed amount of precious metal being stamped so they need not be weighed and could be exchanged more conveniently than lumps of metal which needed to be weighed. However, Zarlenga emphasises the ratio of gold to silver in ancient coinage, and asserts that the variability in this ratio was crucial to understanding trade in the ancient world, the fall of the Roman Empire, and the drive behind the Crusades.
Conferences
The 6th Annual AMI Monetary Reform Conference will be held at the University Center, in Chicago, Sept. 30 - Oct. 3, 2010. While 2010 speakers are still unconfirmed, past speakers have included: Prof. Michael HudsonMichael Hudson (economist)
Michael Hudson is research professor of economics at University of Missouri, Kansas City and a research associate at the Levy Economics Institute of Bard College...
, Richard C. Cook
Richard C. Cook
Richard C. Cook is a former U.S. federal government analyst, who was instrumental in exposing White House cover-ups regarding the Space Shuttle Challenger disaster of 1986. As a witness to the incident and a participant in the subsequent investigations, Cook provided key documents to The New York...
, William K. Black
William K. Black
William Kurt Black is an American lawyer, academic, author, and a former bank regulator. Black's expertise is in white-collar crime, public finance, regulation, and other topics in law and economics...
, Dennis Kucinich
Dennis Kucinich
Dennis John Kucinich is the U.S. Representative for , serving since 1997. He was furthermore a candidate for the Democratic nomination for President of the United States in the 2004 and 2008 presidential elections....
and wife Elizabeth
Elizabeth Kucinich
Elizabeth Kucinich is director of public affairs for the Physicians Committee for Responsible Medicine, and wife of the U.S. Congressman and former Democratic Presidential candidate Dennis Kucinich.-Early life and education:...