A barter economy would defeat fraudulent banking practices. Private banks would still exist, but their business practices would become fair and honest.
The key concept to understand here is the concept of "intrinsic value".
intrinsic: belonging to the real nature of a thing; inherent
value: that quality of a thing that which makes it more or less desirable, useful, etc.
For example, a bushel of wheat has inherent value. Wheat is valuable because everybody needs to eat, and most people eat wheat. If you have some wheat, you can eat it or trade it to someone else. Five bushels of wheat is exactly five times as valuable as one bushel. You cannot counterfeit a bushel of wheat. In fact, a bushel of wheat is exactly 8 gallons of wheat. That is the inherent quality of the bushel of wheat: you have to have enough grains of wheat to fill up 8 gallons. You can't fake it.
A piece of paper also has inherent value. It is a product that requires effort to manufacture, and it can be used for many purposes. If you have a surplus of paper, you can trade it to someone else, because almost everbody uses paper.
However, does a piece of paper, with the number 100 written on it, have 100 times the intrinsic value of a piece of paper with the number 1 written on it? Certainly not! For virtually all purposes, the 2 pieces of paper have the same intrinsic value.
The fraud of modern banking is all based on the fraud that the 2 pieces of paper have vastly different values. Fooling the populace into believing this makes it possible for the banks to acquire items having intrinsic value in exchange for counterfeit items that do not: paper money or their electronic equivalents. The banking industry has amassed tremendous wealth through this fraud.
A barter economy is based on the requirement that all trades involve the exchange of items having equivalent intrinsic values, where those equivalent values are determined by the participants in the trade. Counterfeiting in all of its forms is prohibited.
Banks would still exist in such an economy, but their profits would be a tiny fraction of what they currently earn (steal). Banks would still offer a place to safely store items of value, and the ability to earn interest through the lending of items of value.
Of course, for general trading puposes, certain items having intrinsic value would become the most popular. Throughout history the best choices have been metals, since metals are rare, non-perishable, and easily divisible. Gold and silver have always been the most popular in the past, and would likely become popular again. A reasonable approach that many people might choose to adopt would be to value various items in terms of gold; the unit of measure might be 1 gram of gold, and each item would be worth so many grams of gold. In fact, such a method of trading, called e-gold
, already exists. The barter economy already exists on a small scale. The challenge is to rid the economy of the fraudulent counterfeiting practices of banks.
Here is an excellent explanation, in the form of a story, of how the fraud of counterfeit money is perpetrated by banks. It makes very clear how banks use a shell game to fleece the populace. Understanding the truth of this story reveals the barter economy as vastly superior to trading with intrinsically worthless, government issued counterfeit money.
I Want The Earth Plus 5%