[Dequibenzo]

Originally posted by Danny

Anyway, this town was in Germany, I think, and the economy of Germany had just crashed. In an effort to solve the town's problems, the Mayor printed his own currency, that was only viable in that town. It had Negative Interest: It reduced in value the longer you possessed it. As a result, trade boomed, as people rushed out to spend the money on material goods that did not decrease in value almost as soon as they bought it. This resulted in a great boom for the city in general: The streets were repaved, unemployment was practically eradicated, and everybody prospered (I'll give you the real results when I find the article, but they were more or less what I've said here).

Then the German economy recovered, and the Government found out about this town printing it's own money. Printing currency was banned, and the proper currency, with its Positive Interest, was imposed upon the city. Unemployment shot up, small businesses failed, and there were riots...

Are you saying that this demonstrates a problem with or an advantage to the nature of money? Maybe my history isn't that great, but efforts by Germans to make the world a "better place" have oft been not such a good idea...