Part 5 – Abandoning Political power systems

The conception of money in the two cultures that have been fighting since industrial development.


Part One: :
The conception of money in the two cultures that have been fighting since industrial development. 

The analysis of the context in which the new use of a Positive Money takes place.

Positive Money = Full Currency, sovereign currency without debts, Vollgeld, Moneta intera, Monnaie Pleine sans dettes

The reader of knows the history of the uninterrupted conflicts between the organizations in networks of life that developed the most flourishing civilizations and the systems of power that first plundered the wealth of the organizations in networks then organized the domination of the peoples through systems of military, police, theocratic and their centralized and despotic, tyrannical organizations of power. The aim here is to highlight the role of money in each of these cultures. As for the conflicts waged by international bankers to take power over the monarchies and the peoples governed by these monarchies, we presented them on in the documents about our rich enemies, the masters of the world. The aim here is to highlight the practices used by political leaders or bankers in these conflicts. 

To present these two conflicting cultures or theories in today’s economic system, we use the description given by Erik S. Reinert in his book “How Rich Countries Became Rich. Why poor countries remain poor.”, French translation at Éditions du Rocher, March 2012 and we complete it with our remarks. Likewise, the documents presented in the Strategic Diagnosis, unless otherwise mentioned, come from the book of Erik S. Reinert.

We have specified in the Political and Economic Institutions of the Networks of Life, the functioning of a Positive Money and where the evaluation of the financing needs in the project teams comes from. This is Part 1 of the trial. In this Part 5 of the essay, the issue Positive Money presents the strategy to restore our Positive Money after the abandonment of the neo-liberal capitalist system of power. This strategy is based on a study of the monetary environment followed by an internal and external diagnosis.

In this first part of the Positive Money dossier, the role accorded to work and consequently to the remuneration of such work by money is defined by the culture which is used. The place of the human being and the nature of his activity are not identical in the two cultures that still confront each other today. 

Once the analysis of this context is clarified, we can begin the strategic diagnosis of the environment of a new Positive Money with the internal diagnosis and then the external diagnosis.

I First culture: humanist culture

that puts people at the heart of how organizations work. 

Humanist culture, for example, was promoted by Abraham Lincoln in 1860, when he was elected President of the United States and fought liberal theory based on Adam Smith’s theory.

This historic event can be used as a benchmark to mark the start of a change in the behavior of international bankers in order to prohibit, until today, a government from creating its own currency, which it needs for the sustainable development of its country, and to force that government to borrow money from private banks in return for interest and political submission.

Yet humanist culture has been present in human history since ancient times and has allowed the most flourishing civilizations to develop. It is certainly discarded or even forbidden by the leaders of the second culture, the capitalist and liberal culture, so as not to discuss here also the religious issue and the prohibition by the Catholic Church of Rome since the Council of Nicea in the year 320. 

The humanist culture, on the issue of money, is characterized by the following values, norms and lifestyles: 


In the beginning there are social relations; labor precedes capital; what makes human beings unique is creativity that allows inventions and discoveries; there are also the values of peace and love that give concrete expression to optimal social relations and a clear and unequivocal statement: “there is no wealth nor strength except men.” Jean Bodin 


All work deserves remuneration according to the skills provided.

The national currency accompanies the economic and industrial policies decided by the public authorities. Political leaders present projects or development plans that amount to hard work, discoveries, and inventions. The objective is short-term growth and medium- and long-term sustainable development, full employment.

The work and the wealth produced are paid for through the currency. Money comes after work and facilitates the exchange of wealth produced by one another.

Economic history shows that industrialized countries developed first through protectionism, and then, when their domestic markets became saturated, they embraced free trade, with the advantage that their production facilities had reached critical size, had developed many skills, and their firms had exceeded their break-even levels. This is one explanation of how rich countries became rich and poor countries remain poor. Free trade, then, is only the way for rich countries to dominate poor countries by preventing them from developing themselves by first using the rules of protectionism.

Once a level of sustainable economic development has been attained, the level of production of material wealth becomes sufficient and it is the intangible wealth (which has no price) that continues to develop in a manner consistent with the total quality of life on Earth.

The goal is well known: to realize the values of peace and love. It is then more than a work, but a way of life that also uses skills derived not from the intellectual source of knowledge but from the spiritual source. This norm is found among first peoples and flourishing civilizations, it is forbidden by the liberal and capitalist system of economic power. The source of spiritual knowledge is forbidden by the Roman Catholic Church and the Christian religion as a whole. The work is organized on three levels: the work essential to life and survival, the realization of works transmitted to future generations and which raise the standard of living, the political action exercised by each human being within the framework of his network of life or a participatory local democracy.

To support economic development, leaders must bring gold and silver to beat money or stockpile reserves of gold and silver to back the currency from the gold standard. The abandonment of the gold standard and the subsequent demonetization of gold after 1971 correspond to the phenomenal development of financial power and to the indebtedness of states and citizens, with the massive use of money and debt credit to support economic growth initially and the enrichment ultimately of the Anglo-Saxon financial oligarchy.

Making a lot of money available to a social group makes no constructive sense, because the limit of that organization is the amount of work that can be used to produce useful goods and services.

Sustainable development is thus based on full employment and raising the level of skills so as to produce not only the goods and services essential for life and survival, but also the works that raise the standard of living and are passed on to the next generations as elements of progress. The political action of the members of the Social Group shall determine the projects and development plans and shall vote the budgets necessary for their implementation.


Leaders sought a universal payment instrument to trade across countries, with gold and then silver used as a means of measuring wealth through hard currency and then guaranteeing paper currency. With industrial development and mass production, paper money has grown in size and dematerialized to make it more convenient for trade. The development of information technology and telecommunications has led to widespread use of scriptural money (90% of a country’s currency) compared with cash (coins and banknotes).

Confidence begins when people know that when they get to work, there is a financial means to be paid. The level of confidence facilitates the speed of circulation of money in the economic circuit between production and consumption and thanks to this speed of circulation of money between economic agents, it is not necessary to put into circulation an additional money supply. In times of crisis, local currencies have helped people overcome hardship. The level of confidence also makes it possible for local currencies to support the development of short distribution channels and promote local employment, to change consumption behavior or the use of personal services in order to promote better lifestyles (health, social integration, drug withdrawal, over-indebtedness, etc.)

Money is a means of payment that adapts to trade and to changing lifestyles.

Banking has direct responsibilities for the circulation of money, the management of the speed of its circulation between economic agents, the credit operations from the deposited savings.

Public finances use taxation to reduce specific inequalities and, above all, to finance development plans or social protection (education, health, public personal services) according to the decisions taken by political action through participatory local democracy or its synonym: organization in citizen life networks. If necessary, the public treasury directly creates the surplus of money necessary for these new wealth productions and the National Bank manages the circulation of the currency.

This non-fiscal currency is called the Full Currency, Vollgeld in German. The highest financial skills are found in the jobs of public finances and less in the jobs of commercial banking.  We will discuss these issues later in the internal and external diagnostic. The Mint has been used on rare occasions since the beginning of the Industrial Age because international bankers managed to eliminate it to develop the current Anglo-Saxon financial oligarchy.

II Second culture: liberal culture.

On currency, the liberal culture, instilled in Adam Smith’s theory, is characterized by the following values, norms, and lifestyles (based on the book by Erik Reinert). This culture was born with the development of trade between continents and, above all, it was organized at the beginning of the industrial era.

The legal bases for the freedom of trade and industry and the sacralization of private property and the elimination and prohibition of common ownership date back to the 1789 Revolution in France: the 1789 Declaration of Human and Citizen’s Rights enshrines private property, the Allarde decree and the 1790 Le Chapelier law abolish intermediary organizations between citizens and ruling leaders in the name of freedom of trade and industry, which legitimizes the new business bourgeoisie taking power to the detriment of all citizens and legitimizes the free operation of markets without intervention by states, the invisible hand being able to satisfy suppliers and applicants through a fair price.


In the beginning, there were markets, the division of labor is the result of a human nature tendency to load, swap and trade one thing for another….

The market is the meeting place of supply and demand, it is the freedom of contract that pushes an economic agent to come to a market to participate in the exchange. Society doesn’t exist, there are only markets.

Competition allows every economic agent to intervene in a market to improve the terms of trade between supply and demand. The state does not have to intervene in the functioning of a market, but global government, led by international bankers who own the largest multinational firms, is needed for all markets to become as competitive as possible – that is, to create as much financial value for shareholders.


Following Adam Smith, four important concepts for understanding economic development have been left out of the prevailing model (humanistic and based on the priority accorded to work and the payment of work that produces wealth): 

  • puce rouge The concept of innovation, which had played an important role in English social science for more than 150 years.
  • puce rouge The idea that economic development is the result of synergy and that people sharing the same labor market, composed of innovative industries, will have higher wages than others, an idea that has been in European economic thinking since the fifteenth century.
  • puce rouge The realization that different economic activities can otherwise lead to economic development.
  • puce rouge Adam Smith’s reduction of production and trade by hours of work paved the way for the Ricardian theory of trade, still dominant today, by which the world economy is conceived and understood as an example of Adam Smith’s barter, when dogs traded hours of work without any quality.

End of extract from Erik Reinert’s book.

Labor is no longer a priority and a source of social relations, but in this doctrine it becomes a quantity that has a price and is freely traded on the labor market.

Better yet, work is also a cost that is involved in setting the selling price of a good or service.

When positive economies of scale are no longer possible because of the saturation of a market, negative economies of scale can still be used: for the same volume of output produced, the quantity of production factors used must be reduced, most often technical capital is retained (it is already written off) and the reduction of personnel costs through economic redundancy brings savings and a new gain in productivity in the very short term (until the company declines and disappears in the medium term following several years of these skills losses).

Power evolves from a system of authority to one of efficiency. Negative economies of scale for business translate to public finances through austerity measures taken by governments to reduce the deficits themselves caused by high spending to pay interest on the public debt while reducing these enormous public deficits. As long as government deficits and debts are not reduced sharply, and financiers have not recovered their capital, and especially the compound interest on the financing provided, any hope of strong growth to lift a country out of austerity is futile and ill-considered in the eyes of the Anglo-Saxon financial oligarchy.

To put it bluntly, financiers prohibit a country from putting people back to work who are deprived of it because they refuse to finance the project that organizes the work. In short, they refuse to pay for this work, usually on the grounds that the country is not competitive because it is not paying off its debts fast enough. Excessive use of debt money is the only explanation for this realization, which has increasingly outraged citizens who wonder whether they are still free or have become subject to such power, but it is the rule of the system until it is eliminated. The near-exclusive use of credit to finance investment and development projects is a way of giving private banks the power to decide how to run not only the real economy, but all of humanity.

 Global financial leaders decide where the world’s output should be; they choose countries to use for their low labor costs; countries to weaken because their level of social spending inhibits shareholder and financial enrichment; countries where they want to shut down industries and leave citizens unemployed. Since the 2010s, and with the obvious risk that citizens would refuse tax increases to repay their public debts, global finance leaders have been busy imposing a new and exorbitant rule: if a government struggles to repay, the IMF and private central banks can compel it to direct its repayments from citizens’ savings: life insurance, savings accounts, real-estate investments, and so on.

Private property also includes private ownership of the means of production, allowing the entrepreneur to own the wealth created by the employees who, apart from their wages, are not entitled to anything else. This logic was opposed as early as the 1830s by the canuts of Lyon who led the fights with the slogan: “live free by working or die by fighting”. While they did not claim the power of the citizen to create the currency that characterizes a free citizen, a woman, a man, a canton, a city or a free country, this lesson was learned by citizens who want to regain their full freedom, now demand this fundamental right…. Marx, it seems, has also forgotten to embed this fundamental right in his vision of a society.

Money is a value that is bought and sold on the money market.

It has to adjust to the level of international trade and the level of the exchange rate on the money market, depending on the country’s exports and imports. The trade balance dictates the level of the currency exchange rate. Currency devaluation makes exports easier, but this is simply a theory that has been put to rest by the case of the United States, the world’s leading economic power and the seat of world financial power, whose trade deficit has no meaning other than to prove that, for the world’s leading economic power, the key is to import all the wealth that has been acquired on world markets as a result of the financial investments made. During the Asian crisis of 1997, the US continued to buy up production from Southeast Asian countries, and this enabled the countries to recover quickly, while making the plants that were built there profitable and the physical assets that could not be moved there. After 2000, investors soon switched to production in China.

A country’s leaders must no longer interfere in economic exchange and the organization of markets, especially to satisfy personal political interests in order to get elected or re-elected, which is a prohibitive obstacle for leaders of the economic and financial system. Central banks must become independent of governments, and thus monetary policy cannot be sustained by governments. Instead, they have access only to fiscal policies that are constrained by central banks and financial institutions for the stability of the currency used in global trade.

The wealthiest have legal means to escape state taxation and create financial value without direct relation to the real economy. Private money is managed primarily through the currency of a state, and defending rents has a fiscal and financial priority over labor income, a consequence of the necessary deregulation of markets, especially financial markets.

Since international bankers’ families came to power in the nineteenth century, the proliferation of credit has enabled banks to enrich themselves recklessly: debt money makes finance rich, especially as banks’ fractional reserves fall further and their leverage grows larger, leading to the 2007 crisis.


An endless succession of economic crises, wars of colonial and now neo-colonial conquest waged by transnational corporations.

High-frequency speculation creates repeated speculative bubbles by leveraging debt for quick, large gains. Casino finance trumps real economy financing. It is easier to earn very short-term stock market profits than to invest in factories or research centers by creating medium- or long-term jobs.

Hidden inflation, rising inequality on a scale never seen before in humanity: the 1% who are getting richer without limits, and the 99% who are finding it increasingly difficult to live to get richer from their work. Tax evasion becomes legal; the changing legal framework allows hedge funds and multinationals to sue governments whose actions have run counter to their vested interests.

The credit-driven consumer society leads to enormous wastage of resources, jeopardizing the sustainable development of humankind. The loss of any legitimacy of the political class that keeps itself in power will only follow liberal doctrine and submit to the power of financiers.

Investment bankers have been given a higher priority in trading on the world’s financial centers. Democracy must become compatible with the demands of markets, especially financial markets: protect the rent against inflation, deregulate markets in order to allow speculation on the rise in all consumer goods, including food, etc.


To get out of this secular conflict, our reader has understood, the solution lies in abandoning the systems of power and first of all in abandoning the liberal capitalist system. This is a civilizational choice that is possible and necessary, urgent. We will see this by developing the strategic diagnosis to develop the use of a full currency and social rights.

This document can be found in PDF on in Part 5 of the Networks of Life, folder Positive Money.

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