I think most can agree that in order to properly function any state requires a system of defence and of justice.
Considering the modern state perhaps we should add that it also needs to have the right to create its own currency.
We know that creating a currency for public purpose requires just two conditions:
1. A reason for and so a means of, spending it
2. A means of legally obliging its payment.
To many this will seem to exclude Eurozone countries as modern states. But in the video (below) Warren Mosler is surely correct when he suggests that any country unhappy with the Euro should not exit it at all but should simply introduce a parallel currrency (which is entirely legal), and which the national government would accept in taxes. New government spending in the parallel currency would ensure that it entered into the economy quickly.
Indeed, I consider that with local authorities in the UK facing their worst ever budget cuts, they should be doing something similar – preferably through the Local Government Association so that it has national importance.
What’s more, I’m pretty sure that if there was not so much misunderstanding, misinformation and confusion of what money is for and where it comes from – they would already have started.