Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
7Activity
0 of .
Results for:
No results containing your search query
P. 1
3 09 Ralph Borsodi Constant Currency

3 09 Ralph Borsodi Constant Currency

Ratings: (0)|Views: 11,870 |Likes:
Published by Carl Mullan
3-09 Community Currency Magazine article: The Borsodi Constant aka “The Exeter Experiment” Inflation Free Currency. After 1971 he created his own private money system called the “Constant”. This commodity backed money was only an experiment and it included notes backed by a basket of commodities and pure silver medallions he called ‘globes’.
3-09 Community Currency Magazine article: The Borsodi Constant aka “The Exeter Experiment” Inflation Free Currency. After 1971 he created his own private money system called the “Constant”. This commodity backed money was only an experiment and it included notes backed by a basket of commodities and pure silver medallions he called ‘globes’.

More info:

Categories:Business/Law
Published by: Carl Mullan on Mar 14, 2009
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

06/03/2012

pdf

text

original

 
Te frst step or any community aiming to become more sel-reliant is to establish its own currency system.
L
ocaL
 
community
 
currency
 
obtains
 
its
 
vaLue
 
entireLy
 
from
 
the
 
wiLLingness
 
of
 
peopLe
 
to
 
trade
 
with
 
it
...
LocaL
 
currencies
 
can
t
 
be
 
banked
 
away
 
to
 
earn
 
interest
 
so
 
consumers
 
keep
 
spending
 
it
 
and
 
this
 
gives
 
a
 
boost
 
to
 
the
 
LocaL
 
economy
.
Local currency for the town of Lewes in East Sussex, England
March 2009, Premiere IssueDigital Version
I
nsIde
 
thIs
 
Issue
:
 
New Local Currency Projects & Efforts, LewesPound, Totnes Pound, BerkShares, AlternativeCurrencies, Michiana Money, Ithaca HOURS,Cocoa Bucks, Local Money, Toronto Dollar Community Currency, Legal Tender StampScrip, Borsodi Constant, REAL Dollars, TeninoWooden Money, Wendell Berry, Paul Glover,Noney, Amy Kirschner & Antartica Currency
 
22 § Community Currency Magazine March 2009 Issue
t
he
B
orsodI
C
onstant
 
aka
 “t
he
e
xeter
e
xPerIment
I
nFLatIon
F
ree
C
urrenCy
 
(
aPProxiMaTely
1971-1974)
United States Constitution forbids thecounterfeiting of this nation’s currency, however,it in no way limits the circulation of a completelyalternative medium of exchange...
I
n 1948, roughly 60 years ago, Dr. Ralph Borsodiwrote a booklet entitled, “Ination is Coming andWhat to Do About It”. In the mid 1970’s, around the
time of his local currency experiment, he wrote, “If we
continue this foolishness [at money],” says Borsodi,“we’re eventually going to witness a debacle followedby a depression worse than that of the 1930’s.” Dr.Borsodi was a very smart man and about 30 years ago
he experimented creating his own version of privately
issued, commodity backed local money. His experiment
and creation is considered a successful venture.
Ralph Borsodi was born in New York City in 1886 or 1887, by his own admission, the actual year was notrecorded.* He was so moved by Nixon putting an end tothe gold standard, after 1971 he created his own private
money system called the “Constant”. This commodity
backed money was only an experiment and it includednotes backed by a basket of commodities and puresilver medallions he called ‘globes’. *(Ployboy interviewhttp://www.soilandhealth.org/03sov/0303critic/Brsdi.intrvw/The%20Plowboy-Borsodi%20Interview.htm)This new ‘sound currency’ was born in the town of Exeter, New Hampshire, and was the brain child of Dr. Ralph Borsodi and Robert Swann. The currencywas based on a standard of value using thirty different
commodities in an index. It was named the Constant
because, unlike government issued national currency,
this private money would hold its value over time. (the
value remained Constant) This medium of exchangewas created to be ination-proof. Dr. Borsodi’s currencywas 100% based on the real wealth of commodities
and not on some politician’s paper promises.The constants circulated in Exeter for over a year and
 just as Dr. Borsodi had theorized it was accepted by the
local citizens and was recognized as a legally issued
non-governmental currency. Borsodi received nancialbacking for the project from several well known people
including Mr. Ray Kroc the founder of McDonalds™.The new private currency successfully circulated in the
Exeter area and was used by the public. At that time,the Constant even received national publicity in Time& Forbes.
What did the U.S. Treasury Department have to say
about the private currency? A Treasury agent was
quoted at the time saying, “We don’t care if he issues
pine cones, as long as it is exchangeable for dollars sothat transactions can be recorded for tax purposes.”
Dr. Ralph Borsodi was famous for successful
experiments in self-sufcient living. Beyond self-sufciency, he focused on the causes and cures of ination.
His view was that governments will cynically and stupidly
debase the purchasing power of their own currencies
Image courtesy http://www.ratical.org/many_worlds/cc/NMfHC/chp8.html 
 
Community Currency Magazine March 2009 Issue § 23
on purpose by printing too much paper money.
In one interview, Borsodi pointed out,
“During most of thelast century, the majority of economists preferred gold and silver or currencies that were solidly backed—unit for unit—by such real wealth. The prevailing doctrineamong those economists was that the worst possiblekind of money was ‘printing press’ money . . . currency backed by nothing except the word of the government 
which issued it. They called this fat money. They didn’t 
have much regard for it.” 
In the 1970’s, Dr. Borsodi understood that
“planned 
ination is just like planned drug taking. It doesn’t work.You always need a bigger ‘fx’ the next time around.Politicians have never stopped inating a country’s
currency once they’ve begun. Quite the contrary. They  just keep on giving a nation’s money supply a bigger and bigger shot in the arm until the whole situationruns away with itself. And that’s what’s happening on aglobal scale right now.” 
Just as many great nancial minds of today, Dr. Borsoditraced our current nancial problems back to BrettonWoods[1944]
“The Bretton Woods conference disturbed Dr.Borsodi so deeply that he soon wrote a small  paperback in which lie prophesied what aresubstantially the economic problems that we’reexperiencing right now. The booklet, published in 1948 by The School of Living, was titled 
Ination is Coming and What to Do About It.
Despite the fact that the publication sold nearly half a million copies, however, few individualsin positions of power seem to have read it or to have heeded Borsodi’s warnings. And so we
nd nearly every nation in the world frantically 
trying to run up . . . an increasingly rapid downescalator of debased currency. It costs more and more every day, in other words, just to stayeventhan it did the day before. During the 28 years
from 1945 to 1973, the value of the United States
dollar depreciated by a good two-thirds . . . and a 1974 dollar has shrunk an additional 10%. And there’s no end to the madness in sight. “If wecontinue this foolishness,” says Borsodi, “we’reeventually going to witness a debacle followed by a depression worse than that of the 1930’s.” 
“I
LIke
 
what
I
CaLL
ratIonaL
 
systems
 
oF
 
money
’. I
LIked
 
then
 
In
1944
and
I
stILL
 
LIke
 
them
 
today
. F
Iat
 
money
 
Is
 
not
 
ratIonaL
 
and
k
eynes
PhILosoPhy
 
oF
 
eConomIC
 
Growth
 
Can
 
Lead
 
onLy
 
to
 
FIat
 
CurrenCy
.”
Dr. Ralph Borsodi late in lifeOne Ounce Silver Globe Constant’ Source of these photos is unknown.

Activity (7)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Jennie Hankins added this note
I met Dr. Borsodi in 1975 at his Exeter home. He was very gracious in giving me his time for more than an hour in describing our sick society. It was sick then,only getting worse during these forty years, and now is on its death bed. All the dire things he predicted economically and culturally are even worse than he could have imagined back then. Wayne Hankins
Rick Casey liked this
Sgouris liked this

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->