On Fri, Jun 19, 2015 at 6:47 AM, wrote:
Hi Warren!

Do you know this proposal by Rob Parentau and Trod Andresen of introducing a parallel currency in the form of Tax Anticipation Notes?

A program proposal for creating a complementary currency in Greece

From rumours seem it could be introduced in Greece.

What do you think?

Yes, it’s been around for a while- a take off on Mosler bonds and my California proposal years ago when they had problems.

The Greeks have known about these things all along but didn’t want to go in that direction. If they come to any kind of agreement, they get full conventional funding. If they don’t, they are afraid of what might happen to the banking system and the economy if the EU retaliates, whether or not they get alternative funding. And that could mean political turnover and the rise of Golden Dawn, etc.

So it hasn’t been about funding- it’s been about coming to terms that allow Greece to stay in the EU. As we discussed, leaving is looked at as a move to the right, and a victory for the right and nationalism.

It’s the right that has said the the EU was a mistake from the beginning for reasons of governance more than economics. The current Greek leftist government considers themselves as ‘progressive Europeans’ who look to the European Union and the common currency as the progressive future, moving away from the nationalism that caused the previous centuries of warfare, etc. So their first choice is to remain Europeans and work within the EU for a progressive economic agenda.

If they do break from the EU and move towards alternative finance to support their progressive economic agenda, which could very well happen, they will see it as a catastrophic failure of their diplomatic efforts to achieve their personal ideals.