The State-Issue of Currency without Usury

We humans are in the midst of a potentially terminal economic, social and environmental crisis. In order to address that crisis this chapter outlines a proposal for the structural reform of a national monetary system, with practical and beneficial consequences. It is recognized, of course, that monetary reform per se is not a holistic panacea to all of our global ills. Yet, it is hoped that the incremental transition recommended, using the national bank to issue interest-free currency (credit-money), could promote the cause of social and economic justice through a more sustainable monetary system. In addition, interest-free currency could be used to finance other reform proposals such as the spread of capital ownership or the creation of a basic income. At the core of the reform is the insight that, usury (defined here as an interest-charge in excess of justifiable administration cost) is not necessary. Whilst it can be argued that administration charges, collateral and properly conceived repayment plans are imperative for the proper functioning of credit markets, usury is not so easily defended (especially for state expenditure) unless the motive is to profit the private financial sector and their investors.