[IGNORE THIS FLAG ON]
IMHO, we're suffering from "money madness." That means any discussion of the topic will be somewhat insane and bizarre.
In short, money madness is the belief that money has an intrinsic value independent of the marketplace of goods and services.
To illustrate the madness, one must first understand what money is or does.
Money supposedly is a medium of exchange that facilitates trade when barter is insufficient. Money passes value to a future trade, in other words.
. . .
Why are we insane?
Let's use a sane example of a medium of exchange that passes value... a private promissory note (ex: coupon). You acquire a coupon denominated in "one free Micky D burger" and tender it at the retailer. You receive your burger, and depart. The retailer notes the coupon has been discharged, and destroys it, since it has done its job - passing value to you.
. . .
Now, what happens if you tender MONEY for your burger? After you depart, the retailer does not destroy the money - it has intrinsic value. Whoa. How did it simultaneously "pass value" and "retain value"?
At the end of a trading day, when all trades are completed, and all the market shelves are bare, how can money "retain value" for that which is not yet available for trade? And what happens if there is MORE or LESS available for trade, regardless of the static amount of money available?
Feeling uncomfortable yet?
That's cognitive dissonance creeping in. If you feel nothing is wrong, that's doublethink.
We have been indoctrinated to "want" whatever is being used as a money token - precious metal coin (gold, silver) - green pieces of paper (dollar bills) - or electronic entries (bank accounts, credit cards). And that which is offered to us, is deliberately kept SCARCE and in demand. Why would anyone need to borrow money, at usury, if it was cheap and plentiful?
There is no correlation between the sum and value of circulating money tokens and the aggregate marketplace of goods and services. Despite the classic eCONomics explanation that "inflation is caused by too much money chasing too few goods," we have suffered from a money drought for generations. . . and it's crushing the nation. (Bill Gates is not bidding up the price for milk and cookies!)
But, hey, what do we know, we're all INSANE.
In a sane world, only laborers and businesses would have the power to emit the mediums of exchange used to "buy" (trade) their output. Every unemployed worker could "spend" his promises to work into circulation, and discharge them when tendered back to him. Every business that needs capital could "spend" its promises to do a service or provide a product into circulation, to discharge in the future. There is no finite money pie to fight for market share. There is no usurer taking a skim. There are no stockholders demanding dividends.
Everything available for sale (that has not been bartered for) has a note / coupon to buy it with. You don't have to advertise for customers, since any holder of your coupon is a prospective customer. You don't need to advertise for workers, when all you need to do is accumulate their circulating coupons (from a note clearinghouse) and tender them. In such a world, prosperity is based on the prodigious production of surplus usable goods and services, equitably traded and enjoyed. There's no inflation, deflation, speculation or corruption of the money token in circulation. There's no competition nor contention for "greater market share." In fact, a bad reputation is the one thing no one wants - for that would terminate their ability to issue more notes in the future. Imagine a future world, where every worker and business is dedicated to the highest quality - because there is no longer any advantage at churning out cheap and shoddy products or service ... no one will use "your money" if you do.
Why would we trust banks or governments to make "our" money? They've been robbing us all along. According to the law, CONgress can "coin money" (stamp bullion) or "borrow money" - it cannot create bullion, nor can any bank.
They're the guardians of the asylum we're in.
WHO DOES HAVE THE POWER TO CREATE MONEY?
Ironically, it's been part of American law from the beginning. Look at a humble coupon and read the fine print : "cash value = 1/20 cent". Free Americans have always had the power to CREATE money... just not "lawful money."
Restating, the use of private promissory notes ("coupons") denominated in specific goods and services, is an endowed right that cannot be taxed nor regulated by government.
If ever it becomes a widespread practice for local communities to use their power to "make money" they would be free of the constraints imposed by the "official" dollar bill based insanity.