Prof. Antal Fekete discusses the invention of self-liquidating bills of exchange [link to Fekete article] “as important as the invention of the wheel”. And this invention was standard practice in the trade fairs of Lyon, France and Seville, Spain in the middle ages. This may be one of the practices that allowed the High Middle Ages to be one of the most prosperous, healthy, and free periods in history. (Bernard Lietaer, “The Soul of Money”, unpub, 2000, B Lietaer, “The Future of Money”, 2001).
When the system of self-liquidating notes was replaced by legal tender in 1909, preparatory to the takeover of the world economy by the Federal Reserve and other central banks, the monetary system was uncoupled from the gold circulation process, and an inevitable slide into exaggerated booms and busts ensued.
GGT has discovered an alternative economic system which is using the same tools of the banking system to create money, through fractionalization. Like the fractional reserve system, which may produce 900% or more of money from each deposit it receives, which the banks then use to increase their own assets, this system produces enough extra money to liquidate the notes which generate the money, and to liquidate other notes in the system as well. Currently, most banks are not willing to allow anyone who is not part of the central banking system to create money as they do, but some few banks are seeing the wisdom of increasing the money in circulation, and increasing the banks’ assets [link to BT 45 pdf] . This allows the banks to better service their customers, and allows the customers to have more money to do commerce. Ultimately, the whole economy benefits.
This is contrary to the wishes of the financial Powers That Be, who have recently contracted the economy in the same way that they did in 1929, in order to cause a depression. In a depression, the banks have been able to buy up defaulted property at bargain basement rates. And they are opposing the applications of these new principles at every turn, not wishing for anyone to wield power similar to theirs, not allowing anyone to use the same tools that they use, not wanting anyone to gain financial liberty. Still, they will lose, the current economy will collapse, and hopefully, we will have created enough of an alternate economy that the fall will not be catastrophic.