Part 5 – Abandoning Political power systems

The internal diagnosis for a Positive Monney, without debts.

POSITIVE MONNEY IS OURS

Part Two: Strategic Analysis :
I INTERNAL DIAGNOSIS. 

Strengths and weaknesses of a Positive Monney for a new use in the Networks of Life.

Positive Monney = Full Currency without debts.

The internal diagnostic helps identify the strengths and weaknesses of the organization by looking at the list of resources and skills it has.

The plan to use a full currency and social rights again, for this internal diagnosis, uses historical examples where a full currency was used before its prohibition by the heads of private central banks and the families of international bankers.

Among these examples, we will distinguish the strengths and weaknesses of a full currency for use in the Networks of Life, once the systems of power have been abandoned.

The headings of the plan are adapted to the project of using a Full Currency again, but henceforth, in the Networks of Life.

I) The analysis of the internal resources of the Networks of Life to use a Full Currency.

1) the study of physical resources concerning production

what are the production possibilities?

This question is transposed here as follows: what are the productions that are possible with a full currency and social rights? We answered it when we presented the economic institution of the Mint Pleine and its use on the three levels of human activity. Here we will use examples from recent history to identify strengths or weaknesses that we can draw from them to facilitate their reintroduction.

The forces of a full currency at the level of wealth production.

Policy statement: Lionel de Rothschild in 1865.

The Rothschild newspaper Times of London wrote in 1865:

If this mischievous policy, which originated in the Republic of North America, were to become in the long run a fixed reality, then this government could supply its own currency without cost. He will pay his debts and be debt free. He will have all the money he needs to support his business. It will become prosperous beyond anything seen in the history of civilized governments. The expertise and wealth of all countries will go to North America. This government must be destroyed or it will destroy all the world’s monarchies.”

It is very clear and full of the obvious:

Living without debt and financing the necessary investments without cost allows new prosperity.

In 1865, the Rothschild family understood well the challenge of a full currency: to crush it immediately in the USA or to be destroyed, she and her clients that are the monarchies always quick to borrow to make wars of succession, family, even religions or usual civil wars to crush the revolts of misery, the jacqueries against royal absolutism and tyrants.

The uses of a full currency throughout contemporary history are thus limited to specific periods in one or the other side that will fight in a war. Dictatorships, tyrannies use their own currency but these do not have the characteristics of a full currency based on humanist values.

 1.1  ThePositive Monney is used to finance war expenses without indebtedness and to pay soldiers.

The first force of a full currency is the financing of a war without debts, the power to pay its soldiers properly and finance the necessary weaponry without ruining the country. The American Civil War of 1861-1865 pitted the abolitionist northerners against the southerners, who defended their slave-owning system of power and rejected Abraham Lincoln’s election and his desire to abolish slavery in the Union. This first historical example to the benefit of the United States Union camp and to the detriment of the Confederation of Southern States, also puts an end to the practice of bankers to enrich themselves by lending money to kings, princes and lords to finance their family wars or their wars of plunder to their neighbors to enrich themselves.

Abraham Lincoln

In 1865, Lionel de Rothschild, from London, addressed his enemy, the President of the United States and victor of the Civil War in which Rothschild London had begun by financing the northern troops and Rothschild Paris, the southern troops, admirable business and promising huge profits for a family of international bankers. Politically, however, ever since US Independence, the founding fathers who followed Thomas Jefferson understood the mortal dangerousness of a private central bank.

« labor precedes capital. Capital is merely the fruit of labor, and it could never have existed if the world of work had not existed in the first place. Labor is greater than capital and therefore deserves greater consideration (…). In today’s world, capital has all the power, and this imbalance must be reversed».

Abraham Lincoln understood the sham of finance and of the liberal economists who favor capital, the rent derived from labor over labor itself so as to legitimize the theft of the wealth produced by workers to the benefit of capitalists, private owners of the means of production which divert the common ownership of the goods of production to their profits only.

American industrial development in the 1830’s and 1860’s came at a time when there was no private central bank but the public bank of the United States Union. It should be added that this industrial expansion was also carried out within the framework of economic protectionism, the huge internal market was then sufficient to achieve economies of scale, which would lead to considerable productivity gains.

Abraham Lincoln was let down by the southern states and won most of the northern states and was elected president in 1860. This election immediately led to the secession of seven southern slave states and the formation of the Confederate States of America. In 1861, at the time of the Civil War, however, the United States was once again indebted with $100 million. The new president, Abraham Lincoln, also played games with European bankers by printing the “Lincoln Greenbacks” to pay the North’s bills. In 1862, with the passage of the Legal Tender Act, Abraham Lincoln returned to s. 1 of the Constitution and created the Greenback dollar. That is how he was able, without increasing the state’s debt, to pay the Union’s troops.

His political line and his humanist ambition are indicated in his famous speech of Gettysburg in tribute to soldiers who died for “the rebirth of freedom – a government of the people, by the people and for the people”.

The National Bank Act of 1863 reited the American central private banking and Chase war vouchers were issued. Lincoln was re-elected the following year, swearing to repudiate this law after taking office in 1865. Before he could do anything, Lincoln was assassinated at the Ford theater by John Wilkes Booth. Booth had important connections with international bankers.

His little daughter wrote a book “This crazy act” which describes in detail Booth’s relations and his contacts with “mysterious Europeans” just before Lincoln’s assassination. The rest of this story is on our site as on other websites. Let us learn the lesson of the Rothschild family in London: monetary creation at a cost by a government is the method to become prosperous beyond all that has been seen so far in the history of civilized governments of the world. This question and this solution are therefore essential to guarantee sustainable development in a flourishing and humanist civilization.

The assertion that the value of work precedes the value of capital is fundamental in the humanist culture which places the human being at the heart of the political, economic, social, cultural organization.

The families of international bankers will learn a lesson from this fight against Lincoln. From now on, they will not be content to finance conflicts to promote wars, they will directly organize wars, wars they know how to conduct, not political wars but new industrial and economic wars to expand their own world government.

1.2 The Mint provides a rapid way out of an economic crisis and an economic and social recovery within a few years.

The case of Germany between 1933 and 1937.

The preparation of the Second World War as early as 1918 and the Nazis’ coming to power in Germany are described by historians. On the economic front, however, there was a major difficulty: the German economy was ruined by the crisis of 1929, which was added to the repayments imposed by the Treaty of Versailles. By contrast, the Soviet economy, the target for the Anglo-Saxon financial oligarchy, was doing better than expected, and its performance exceeded the goals of the 1935 Plan. For Wall Street’s high finance, the situation was greatly compromised and the German economy had to be restored at any cost, putting aside the methods of the liberal system and returning to the full currency that Lionel de Rothschild guaranteed in 1865, that it led straight to prosperity. And the German banker who could use it to steer Germany through that crisis was known to have saved the country from a financial crisis at least twice, and his name was Hjalmar Schacht.

This historical example allows us to examine in detail the functioning of a full currency and this method serves as a basis for the use of the full currency in peacetime in the Networks of Life.

document:

Yet this government’s no-cost method of creating money is capable of lifting a country out of economic ruin in 3-4 years when its citizens are competent and know how to work together. The demonstration of the effectiveness of this method was brilliant during the “German miracle” between 1933 and 1938.

http://www.solidariteetprogres.org/documents-de-fond-7/histoire/article/comment-londres-et-wall-street-ont-mis-hitler-au.html

document :

Francis Delaisi’s 1942 book The European Revolution, published at the height of the war, praised Germany’s economic system based – not on the gold standard or the dollar, but on LABOR CAPITAL – as a radical departure from the speculative stock market system of Anglo-Americans in London and Wall Street who suddenly had no possibility of speculation and financial grip on the German economy. The Jewish press was quick to declare a boycott of production from the Reich, and allied governments issued Germany an ultimatum: return to the gold standard, or war…/…

Hitler replaced currency-based foreign trade with a merchandise-for-merchandise barter, so currencies fell into disuse. Combined with the necessary public investment, these measures had the consequence of a dramatic reduction in unemployment and a sharp increase in trade with the countries concerned…/…

This brought more stability and ease to the Reich, which was very unpleasantly felt by the Western powers, all the more so as they feared that the new German economic system based on “Value-Work” might one day have a very great success in the world and supplant the dollar empire coupled with the gold standard. The Western powers did not want it at any cost and began to prepare for war against Germany.

link: http://allianceanom.forumgratuit.org/t8-les-veritables-raisons-de-la-seconde-guerre-mondiale

document: Francis Delaisi’s European Revolution

The first part provides an excellent description of the genesis of the 1929 crisis in the United States and the limits of the gold standard.

Then comes the description of the methods used in particular by Dr. Schacht allowing this straightening by abandoning the gold standard. First, the transition from a liberal economy to a managed economy with 4-year plans. 

  • the urgent need to put 6 million unemployed back to work by means of a policy of major works on projects which employ as many people as possible (workers’ houses, motorways, canals, buildings, etc.) 
  • fixing the domestic selling prices of imported products.
  • wage increase
  • maintain a system of ration tickets on vital products
  • to establish an international barter system
  • if the cost of living increases, reduce the volume of banknotes in circulation and vice versa
  • raise taxes as living standards permit
  • creation of the 3-signature “labor bill”, not discounted by a private bank, which allows major projects to be carried out without any initial investment. This amounts to a kind of post-work borrowing, these are “Work Supply Bills” WSB.

document :

source: https://postjorion.wordpress.com/tag/schacht/

But what still needs attention is the unique nature of the Hitler economy. Other dictators have concentrated exorbitant powers in their own hands. Those who reigned behind the Iron Curtain were even more omnipotent. But they fall far short of achieving the results that made a small and nearly poor country the most powerful of all nations in seven years. (None would have been able to stand up to Germany alone.) How can such surprising facts be explained?

Schacht’s approach is far more applicable to peace than to war, because those who receive bombs do not want to buy them from the enemy. Moreover, in wartime, all economic regimes are roughly equal, with industries operating at full capacity.

Schacht, he was able to do it not only peacefully, but WITHOUT RAISING PRICES… But if he did it, it is because he understood two small things :

  1. THE PRODUCTION OF MATERIAL WEALTH CONSUMES ONLY GRAY MATTER, RAW MATERIALS, AND LABOR, AND THE SALE OF THESE GOODS YIELDS MONEY FOR PRODUCERS.
  2. THE PRICE OF PRODUCED WEALTH AND THE MONEY THAT IS MADE FROM SELLING IT ARE THE TWO TERMS OF EQUALITY

In other words, Schacht knew that if you spent ENOUGH, you would find enough: neither too much nor too little. Any risk of inflation or deflation disappears spontaneously, as the equivalence of spending and resources results from a mathematical constant.

Given that he could spend money without fear, it became easy to build fantastic industry in Germany and make Germans rich. But he enriched them much better with housing, roads, and cars by June 36 than with the tanks and submarines that followed.

The first half of the boom consists entirely in applying in practice a small equation: P = V.(the price of the wealth produced = the money returned by sales). The second half remains to be seen.

But what does this mean? How would the right level of expenditure be calculated? How would we always spend enough and never spend too much? The answer is that there is no need for calculation: the limit is provided by the production capacity and the time it takes. When demand far exceeds the supply of a given category of goods, delivery times increase and information is provided

Schacht knew what distinguishes collective decision from private decision. He knew that money had a vital macroeconomic function: it was not to be absent, expensive, or excessive.

Thus he created the ‘Mefo effects’ drawn by industrialists on the Metaliforschung, the signature of which was guaranteed by the State. They were much criticized by mainstream economists, but produced astonishing results.

The German state paid out its Deutsche Mark only as and when it “produced” the Deutsche Mark, and the Deutsche Mark was paid in FULL in its coffers, through the money cycle.

In the mefo effect, we find something relatively similar to the currency of the SEL, but on a nation-wide basis. Schacht was saying on the news: “These may not be good bills of exchange under the Bank Act. But the situation is desperate. The purpose of these effects is to get trade and industry back on track.”

Nor has the recovery been underpinned by a significant increase in household consumption. Employment rose, unemployment fell sharply, but real per capita incomes stagnated and profits soared. Monetary policy has been conducted under the auspices of private property, and wealthier owners with the means of production have benefited far more than others from this economic development.

But the fact remains that in 1938 Germany, the country that was initially most affected by the crisis with the United States, was the only one that actually emerged from the crisis. The 7 million unemployed are no longer unemployed, there is no longer any unemployment in Germany. Nasty, but real, observation.

From a base of 100 in 1929, output in 1938 was 130 in Germany, 104 in the United States, 117 in the United Kingdom, and 93 in France. (Other factors to be considered, of course, include the disastrous foreign-exchange policy in France.) Growth returned to the Third Reich attracts capitalists from all over the world and especially from the US with the important investments of the Rockefeller family, Ford, General Motors, ITT, the Swedish SKF group. All these foreign investors will finance the Nazi war effort and also produce for German weaponry.

The scheme for the operation of the “MEFO effects” implemented by Schacht

3-signature ‘labor trafficking’, not discounted by a private bank, which enables major projects to be carried out without any down payment at the outset. This amounts to a kind of post-works loan, they are “job offer vouchers”  Work Supply Bills WSB…

The use in practice of this “work trafficking” or “mefo effects”

More explicitly, the state decided to manufacture a production of domestic material wealth (a hospital, for example). It issued the ‘mefo’ corresponding to the total cost to the chosen undertaking, without any interest. These ‘mefo’ were repayable by the State bank, in the Deutsche Mark, as and when the project was carried out, irrespective of whether that of the undertaking chosen or that of a subcontracting undertaking which received the ‘mefo’ from the implementing undertaking. The “mefo” of the various producers in the chain, exchanged for the Deutschemarks, were then used to pay wages and profits, in “real currency”. The German state only paid its Deutsche Mark as and when it was “produced,” and the Deutsche Mark was ENTIRELY returned to it in its coffers, through the money cycle itself, as we shall see later. In the mefo effect, we find something relatively similar to the currency of the SEL, but on a nation-wide basis.

Under these conditions, it became easy for Germans to get to work. Coordination of efforts was spontaneous. Private initiative was encouraged, rewarded, and exploited to its fullest. On the economic front, Germany was home to the first regime that was as liberal as possible in terms of its benefits to everyone: private initiative. Hence the “German miracle.”

These are the two simple secrets that enabled Hitler to do such a terrible evil as well.

Document: Excerpt from: “A stock-flow approach to money creation”, Jacques Mazier and Dominique Plihon (Shocked economists)

http://fr.scribd.com/doc/85967638/Jacques-Mazier-et-Dominique-Plihon-Une-approche-stock-flux-de-la-creation-monetaire

As a first step, the State issues the WSB (“Work Supply Bills”) vouchers and finances the δ increase in public investment pIG by indebting itself to the companies that credit them with ΔWSB (+δ). They increase their pY output by δ and pay salaries W (up by δ’). But they can finance these salaries (and make profits Aut up by δ”) only because they expect their WSB bonds from the banks that give them an ΔLE credit for an equivalent amount (δ) in a second step. This discount credit to businesses offsets their credit to the government. In a third step, banks refinance themselves at the central bank by rediscounting WSB bonds. WSB’s two entries in steps 2 and 3 on banks’ assets and liabilities offset each other. In the end, the central bank is the one that carries the State’s financing, since after clearing, WSB is included in the State’s liabilities and the central bank’s assets (as a change in the tables below).

There was, on the one hand, the creation of scriptural money in stage 2 when banks lent to companies and, on the other hand, the creation of central bank money through refinancing in stage 3. The mechanism based on the issuance by the state of these labor supply bonds (WSBs) was highly efficient, as it relied on public investment and mass production of certain types of goods (weapons, but not only) that Germany’s productive apparatus could produce.

le financement du programme d'investissement nazi de 1933, tableau macro économique

The recovery of economic activity, however, was hampered by constraints well analyzed by Kalecki, linked in particular to the increase in imports of raw materials and difficulties in financing due to the decline of German exports in a Europe in crisis. Nor has the recovery been underpinned by a significant increase in household consumption. Employment rose, unemployment fell sharply, but real per capita incomes stagnated and profits soared.

But the fact remains that in 1938 Germany, the country that was initially most affected by the crisis with the United States, was the only one that actually emerged from the crisis. Nasty, but real, observation.

From a base of 100 in 1929, output in 1938 was 130 in Germany, 104 in the United States, 117 in the United Kingdom, and 93 in France. (Other factors to be considered, of course, include the disastrous foreign-exchange policy in France.)

145 – Janpier Dutrieux: The German Recovery of 1933 22 December 2010

YearsUnemployed persons registered with the Labor Offices  National income (in billions of Reichmarks)
19325,6 (en millions)45,2
19334,846,5
19342,752,7
19352,258,7
19361,664,9
19370,972,6
19380,479,7
19390,2  
(source : Ernst Wagemann, D’où vient d’où cet argent ?)

(source: Ernst Wagemann, Where did the money come from?)

In those memoranda, Schacht pointed out that he had ‘planned that recovery plan for five years so that the Mefo effects could be extended for five years. In this way, the importance of re-armament was limited by an automatic barrier.

After five years, the reimbursement of the Mefo effects had to start, and the necessary sums would now be lost for the budget and would therefore have to be taken from other items of expenditure, the rearmament was precisely these. All of this became relevant a few years later, when I was left with the impression that rearmament was going to exceed the normal level of peacetime. This would have been prevented by my plan had Hitler not distorted the Reich Bank’s policy.” Schacht resigned as economics minister in the Third Reich in late 1937, and was removed from the Reichsbank presidency on January 20, 1939, allowing Hitler to force the Reich Bank to extend him any credit.

end of document

document:

As the master of financial and fiscal manipulation, Schacht felt himself indispensable. The quarrels of 1936, which led to his defeat and the implementation of the Four-Year Plan, began with a shortage of meat and fat in late 1935. The banker blamed the crisis on the poor planning of the Darré Ministry of Agriculture, and demanded that agricultural policy be brought under the control of the Ministry of Economy. Hitler’s reaction was to get Göring to play referee. To everyone’s surprise, the Feldmarshall sided with Darré against Schacht.

http://www.histoquiz-contemporain.com/Histoquiz/Lesdossiers/seconde/schacht/Dossiers.htm

end of document.

It is likely that Schacht saw only a planning problem in agricultural production, whereas agriculture could be inspired by industrial planning.

We know from Erik Reinert’s book “How Rich Countries Became Rich. Why poor countries stay poor”, whether the development of a region or a country is based on the complementarity between increasing industrial yields and decreasing agricultural yields. It is obvious that the German industrial miracle had to support agricultural development with its profits so that the return to full employment is also accompanied by an improvement in the food supply of the German population and an increase in income for farmers, investment in the modernization of agriculture.

We know that the Nazi leaders had from the beginning set the goal of Germany’s rearmament and then the war of economic conquests in the service of Nazism. Schacht did not know this complementarity between the two increasing and decreasing yields or at least he did not put it in place from the start.

This error of priority must no longer be committed in the 21st century, we must apply the mechanisms that lead to an economic miracle, our miracle henceforth rests on abandoning the capitalist system, the exit from this system of political, economic and social power while not creating a major chaos and crisis but developing immediately a new civilization prosperous, flourishing because respectful of the humanist culture. Let us continue to examine this German miracle between 1933 and 1937.

We’re looking at the mechanism here, the unstoppable logic that gives priority to work, and the bank then takes care of remunerating that work and then manages the trade that comes from that labor income.

Initially, the work order is issued with WSB “Work Supply Bills” and then, as work is done, the work is remunerated by exchanging the work offer Bills in national currency so that citizens can exchange their work with the goods and services they need in the usual business cycle that causes the national currency to leave and return to the national bank.

The national bank controls the speed of circulation of money and in the event of inflation and overheating of the economy, it is enough to slow down the opening of new construction sites. When delivery times increase, you have to put liquidity back into the economy or create additional money, without risking inflation and higher prices. This simple, pragmatic and effective mechanism works in times of peace but is forbidden by the leaders of the liberal system, whereas in times of war, as Lincoln did during the Civil War, all the countries at war use this mechanism and keep their factories running at full capacity.

We also note the difference between Germany, which in 1933 trusted private initiatives (employers and local authorities), and the USSR, which with the same mechanism does not succeed in its economic “miracle” because of the elimination of private initiative and of the Soviet party’s monopoly of collectivist initiative. In the context of the sustainable development of networks of life, the use of the principles of subsidiarity and the alliance of opposites develops the common local initiative much closer to a private initiative than to an initiative originating from the state and a despotic single party.

Finally, we note that this economic success was limited by the environment which remained in crisis and reduced the possibilities of German exports, that there was no complementarity between increasing industrial yields and decreasing agricultural yields in order not only to reach full employment but also to properly feed the population, that domestic demand was not stimulated and that the sharing of the wealth produced remained unequal with the explosion of the profits of entrepreneurs, including the profits of American entrepreneurs who invested in Germany, notably in the cartel IG Farben in the hands of Rockefeller itself controlled by the Rothschild family. A very last point: Schacht did not think that this monetary system could go beyond the duration of five years, it was a policy of getting out of the crisis before returning to the usual functioning of a liberal economy.

Germany’s economic miracle is known to have been betrayed and distorted by Nazi ideology and its war crimes, genocide, and crimes against humanity committed by Nazi leaders.

This force of a full currency to bring a country out of economic ruin is also a threat in the external diagnosis: putting a full currency back into the framework of the liberal capitalist system of power leads directly to war and to the crushing of this policy. Once these power systems are abandoned and the Anglo-Saxon financial oligarchy is rendered ineffective with its wars and crises of all kinds, will things be different? We will answer that question.

1.3 the use of money at macro-economic level at the level of a country through its fiscal and monetary economic policies, examples to be followed in the event of a crisis of confidence in a currency.

Here we are faced with the essential question at the level of a currency: how to preserve, develop and restore the confidence of citizens and economic agents in a currency.

Specific examples, all of which have been successful, are known. 

The banker who developed and used them during periods of war and economic crisis between 1914 and 1937 is known as the greatest financier of the twentieth century: Hjalmar Schacht. Here we write a summary of Jean-François Bouchard’s book “Le banquier du diable” published by Max Milo Éditions, Paris, 2015 as well as other documents related to Wilhelm Lautenbach’s productive credit.

Case 1: an economy is blocked

as was the case for Belgium in 1914. Currency is no longer circulating and the economy is collapsing with all the disastrous consequences that this causes to the point of starvation. To restart such an economy, the solution lies in large borrowing. It is about bringing out the wealth hidden by the citizens, which gives them an individual hope of survival. “Bad money chases good money.” When two currencies are in circulation, economic agents will want to keep and accumulate the right currency and they will seek to part with the wrong currency, the one that does not inspire confidence. In this case, the wrong currency is the requisition vouchers issued by the German occupier and the right currency is the official currency that people will keep in their coffers or under their mattresses. The solution, then, is simple: to abolish the requisition vouchers and pay the German army for supplies in official currency, thus restarting a virtuous circle of growth that will benefit everyone: Belgian economic agents and the occupying German administration. The loan will thus be guaranteed by the nine provinces of the Kingdom of Belgium and it will be a success.

Case 2: an economy is a victim of hyperinflation.

On 13 November 1923 Hjalmar Schacht was appointed Commissioner of the Reich for the Currency, a post created especially by Chancellor Stresemann to end the currency crisis. The record of Germany’s currency crisis is striking: the Deutschmark fell to one-five-hundred-billionth part of its value. In 1918, a gold mark was worth two paper marks. In 1923, that gold mark was worth a trillion paper marks. In five years, the value of the Reichsbank’s issued currency, measured in gold equivalent, has risen from two trillion to one trillion. In other words, the price of bread doubled or tripled in the same day. This led to the ruin of small savers, old bourgeois families and the centuries-old nobility. The causes of this hyperinflation are known in history and this is not our subject here. The result, too, is known: loose monetary policy that runs the printing press. Inflation had also brought its share of financial adventurers, speculators who become enormously rich as long as the printing press turned. Of course, other wiser powers had introduced parallel currencies whose values were pegged to various assets, real estate, grain, etc., outside the central bank’s control. 

Schacht’s plan is simple: first, the Reichsbank prohibits the redemption of parallel currencies with official money. The companies and those who issued these “emergency bonds” are fending for themselves as individual owners who are left only to exchange assets of their assets… as in Sumer in 3000 BC.

Second, speculators trading with the Reichsbank are cut off from overnight credit, mainly in dollars. They are therefore quickly ruined. As a result, within a few weeks, the currency stabilizes and inflation remains around 10%.

Third, to get the economy moving again, Schacht implemented a monetary reform and decided to change the currency. It abolishes the paper mark and recreates the reichsmark, a currency that should inspire confidence. To carry out this project, on December 22, 1923, President Ebert appointed him President for Life of the Reichsbank.

Case 3: the restart of an economy and the elimination of mass unemployment.

In September 1931, the Friedrich List organized a secret seminar in Berlin that brought together its leading members – some 30 leading economists, bankers, and politicians – for two days of intense discussion about how Germany can create productive credit, with international markets providing no capital – at least not for productive projects. At the seminar, Dr. Wilhelm Lautenbach, then a senior adviser at the German Ministry of the Economy and by far the most competent German economist in the tradition of List, presented an innovative document with the provocative title: “Opportunities to revive economic activity through investment and credit expansion.” “The natural way to overcome an economic and financial emergency … is not to limit economic activity, but to increase it,” he wrote. It distinguishes between two types of emergencies: natural disasters and periods before or after a war, where there is a clear need to increase production, and economic and financial emergencies of national and international dimensions, where it is clear that “we should and want to produce more. But the market, the only regulator of capitalist economics, does not provide obvious positive guidelines.”

Lautenbach also points out that credit-financed infrastructure projects have no inflationary effect. These projects are “rational and completely unquestionable from an economic point of view”, since they allow “a real formation of economic capital, in a material sense”. This type of credit financing generates real economic value – there is real value creation.

“With such an investment and credit policy, the disproportion between supply and demand in the internal market will be eliminated and therefore all production will be given direction and purpose. In the absence of such a policy, we will inevitably move towards economic disintegration and a breakdown of our national economy, to the extent that in order to avoid an internal political catastrophe at that time, we will be forced to increase the short-term public debt sharply for the sole purpose of consumption, whereas today we still have the means, by using this credit for productive purposes, to restore the balance between our economy and our public finances.”

As is well known, the German government did not have the courage to act decisively, so this innovative proposal by Lautenbach was discarded – with obvious consequences for Germany, Europe, and the world.

Chancellor Brüning rejected the Lautenbach plan for a government boost in transport and housing and more flexible wage and price fixing. An implicit reason was that by letting the crisis drag on, German leaders hoped to escape the reparations that the Treaty of Versailles required them to pay for the war of 1914-1918. Sixteen months after the Friedrich-List-Gesellschaft conference, Adolf Hitler became Chancellor of the Reich. In retrospect, it is clear that if the Lautenbach plan had been implemented immediately, it would not have given Hitler or the Nazis a chance. 

On 17 March 1933, Schacht was re-appointed President of the Reichsbank and in July 1934 he took up the post of Minister of Economy. It is no longer in the situation of 1931 mentioned by Lautenbach, where the Reichsbank still had resources. In 1934 all the boxes are empty. The Lautenbach plan was essentially a printing press to finance a reflation of economic activity. In 1931, Schacht disagreed with the Lautenbach plan precisely because it created money exclusively from the printing press. In 1934, facing the empty coffers, Schacht also began by running the printing press to finance a loan of 1.6 billion reichsmarks but he could not go any further without recreating a hyper inflation as in 1922.

His brilliant idea was pre-financing. All productive investments will be financed by a facility external to the traditional credit of the Reichsbank. Thus, the “purity” of the currency will be guaranteed against the monetary drift that uncontrolled indebtedness would undoubtedly provoke. This pre-financing will be provided by a small company which brings together the four German industrial giants: MEFO.

This company will issue financial securities, the “MEFO vouchers”. Their repayment is guaranteed by the State at their maturity and the Reichsbank undertakes to rediscount them. They can therefore circulate like the official currency and their value will be identical to the official currency. Only at the end, at the deadline, must the work be done, the new wealth be produced. State leadership is total over how monetary policy works, but local initiatives are free under this overall plan to achieve the only stated goal: that there will be no more unemployed after 4-5 years. When this goal is achieved, a virtuous circle has inevitably been set in place to revive economic growth and its beneficial consequences for society as a whole.

Schacht thus created a “bis” money supply devoted entirely to economic stimulus.

We are no longer at all in the solution advocated by Lautenbach and its simple, its use of the printing press. From an ex nihilo monetary creation organized by the state and therefore by the use of credit to revive the economy, with Schacht we move to a particular loan of the official currency in the form of works orders. The more that work is done, the more wealth, capital, assets there are in the central bank, and therefore confidence in the official currency.

We end Schacht’s story by taking the information from Jean-François Bouchard’s book “The Devil’s Banker”.

In his memoirs, Schacht pointed out that he had ‘planned this recovery plan for five years so that the Mefo effects could be extended for five years. In this way, the importance of re-armament was limited by an automatic barrier. After five years, the reimbursement of the Mefo effects had to start, and the necessary sums would now be lost for the budget and would therefore have to be taken from other items of expenditure, the rearmament was precisely these. All of this became relevant a few years later, when I was left with the impression that rearmament was going to exceed the normal level of peacetime. This would have been prevented by my plan had Hitler not distorted the Reich Bank policy.”

Schacht resigned as economics minister in the Third Reich in late 1937, and was removed from the Reichsbank presidency on January 20, 1939, allowing Hitler to force the Reich Bank to extend him any credit. To stop this warrior drift of the Nazi regime, in 1938, Schacht began to organize a plot against Hitler to prevent war. He did not meet much support from the generals except from Witzleben, the military governor of Berlin. This plot was stopped by Schacht and his friends after the Munich Agreement of September 1938, in which Chamberlain and Daladier authorized Hitler to annex the Sudetenland. After those Munich agreements, Hitler became a national hero, and his popularity reached its zenith. The cowardice of the French and the English allowed him to dissect Czechoslovakia without firing a single shot. Schacht and his friends realized that overthrowing Hitler was no longer possible. 

On July 23, 1944, three days after the Walkyrie plot in which he did not participate, he was arrested. Afterwards, his journey knows the horrors and atrocities of the Nazis: the camp of Ravensbrück, the interrogations in Berlin where he finds his accomplices in the aborted coup d’état of 1938 that he directed against Hitler, then in early February 1945 departure to the camp of Flossenburg, in early April the camp of Dachau then the evacuation in Tyrol by the pass of the Brenner with the “special” prisoners that Hitler and Himmler thought to exchange as hostages, the release by the American army of Italy at Villabassa /Niederör dorf. On 1 October 1946, he was acquitted by the Nuremberg Court, then he went through German courts for denazification and was acquitted on appeal. At the beginning of 1950, he was free and at the age of 74, he began advising developing countries facing economic difficulties. Many of them will see their economic development disrupted by CIA-led putsches and dictatorships.

1.4 Another historical experience: the system of financing the French economy during the “Trente Glorieuses”.

In the three post-war decades, the French economy was under a “managed debt economy” that had two characteristics: two-thirds of external financing for companies came from bank credit (today that share had fallen to less than 50%), and much of the banking and financial system was under state control.

The financing of the French economy has been based on two highly efficient mechanisms :

puce rouge the first gear is the “treasury circuit.”

made up of specialized financial institutions that enabled the Treasury – the state banker – to play a central role in financing the economy. The main public financial institutions were, for the local authorities, the CAECL, privatized and acquired by Dexia (which has been bankrupt since 2008), and, for the financing of industry, the Crédit National, privatized and integrated with Natixis (loss of $5 billion in 2008 on subprime loans), which is the investment bank of the BPCE group.

puce rouge The second component of the financing system was the bank discount mechanism combined with the Bank of France discount mechanism. “This second cog is similar to the funding system that Dr. Schacht put in place in Germany in the 1930s.”

  • As a first step, enterprises take claims on their customers in the form of bills of exchange or drafts.
  • In a second stage, these claims are discounted with the banks, which thus lend to the enterprises (which gives rise to the creation of money).
  • In a third step, banks refinance themselves with the central bank by rediscounting these claims. In this second mechanism, the central bank has a dual role: on the one hand, it provides the banking system with the liquidity it needs to finance the economy (there is the creation of central money); on the other hand, the ECB conducts a “selective” credit policy by applying refinancing rates differentiated according to the type of credit, according to the priorities defined by the public authorities

The strengths and weaknesses of a full currency at the level of wealth production.

The strength of a full currency: relying on local networks of wealth production that develop initiatives and skills to meet the needs of citizens, is also in a way its weakness. Anything that prohibits, slows down, blocks, destroys these social relationships also makes the use of a full currency complicated if not impossible.

Two challenges need to be overcome to eliminate or circumvent these weaknesses:

Firstly, the obligation, within the framework of power systems, to use barter for external trade and to obtain goods that it is not possible to find and produce in the Networks of Life. Between 1933 and 1937, Schacht set up this barter in order to obtain the raw materials that the industry needed, but he regretted that he had not been able to use his system of work vouchers in German agriculture. A full currency is useful only for developing exchanges and relations within a social group. It does not have the function of finding exchange value in the market for monetary and financial securities.

This obligation does not exist when the Confederation of Networks of Life brings together countries whose economies are so complementary as to meet all needs. Otherwise, this barter, as we have seen in the Peace Treaties, is part of the Peace Plan for a country that would refuse to trade with Confederation in order to obtain goods or resources needed for the economy of Confederation.

Secondly, there is the difficulty of farming and livestock rearing, which is by nature an economic activity with diminishing returns. We have seen that the solution to this challenge lies in the city-country relationship and the transfer of wealth and skills from the city to the countryside. This is one of the fundamental missions of free cities to develop. We will come back to this when we approach trade relations as the strength or weakness of a full currency.

2) the evaluation of financial resources in the use of a full currency

how much money can be invested?

This question is transposed here as follows: how the Full Currency works and how financing needs are taken into account until the creation of a legal currency without debts.

The Financial Strengths of a Full Currency:

2.1) There is no need for a gold standard currency or one that can be converted into valuable securities.

This is the main strength of a full currency because the trust that any currency feeds to facilitate trade, we have seen, is found in the group action of life projects, in the exercise of power according to the ancient definition of Egyptian and Greek civilization reported by Hannah Arendt.

This strength and independence from the market and the capitalist monetary system led by the private central banks of the Anglo-Saxon financial oligarchy also explains the fierce hostility and the unfailing determination of the latter against the strategy of recovery of the German economy defined by Schacht.

document : How Hitler challenged the bankers, excerpts:

Hjalmar Schacht, a Rothschild agent who was temporarily head of the German central bank, summed it up thus: An American banker had commented, “Dr. Schacht, you should come to America. We’ve lots of money and that’s real banking.” Schacht folded, “You should come to Berlin. We don’t have money. That’s real banking.’…/…

Makow quotes from the 1938 interrogation of C. G. Rakovsky, one of the founders of Soviet Bolshevism and a Trotsky intimate. Rakovsky was tried in show trials in the USSR under Stalin. According to Rakovsky, Hitler was at first funded by the international bankers, through the bankers’ agent Hjalmar Schacht.

The bankers financed Hitler in order to control Stalin, who had usurped power from their agent Trotsky. Then Hitler became an even bigger threat than Stalin when Hitler started printing his own money.

(Stalin came to power in 1922, which was eleven years before Hitler came to power.) …/…

Rakovsky said:

‘Hitler took over the privilege of manufacturing money, and not only physical moneys, but also financial ones. He took over the machinery of falsification and put it to work for the benefit of the people. Can you possibly imagine what would have come if this had infected a number of other states? (Henry Makow, “Hitler Did Not Want War,” March 21, 2004).

document:

German monetary policy has caused panic on Wall Street and the City of London. extraits.

” Germany’s unpardonable crime before the Second World War was its attempt to withdraw its economic power from the world trading system and to create its own trading mechanism that would deny the world’s financial benefits. “(Churchill, “The Second World War” Bern 1960).

” The two main causes of the Second World War were, first, the success of the German barter system. Second, Hitler’s decision not to accept foreign loans. His claim that the German company would be run in the same way as an honest trader caused a real panic in the financial community”. (Francis Neilson: “Le Churchill Legend”, p 296.).

The Federal Reserve’s Marriner Eccles and the Bank of England’s Montague Norman reached an agreement in 1935 on the strategy to be used to crush Hitler’s financial experiments by any means, including war, if necessary. (“The Word” by Glasgow, 08/03/1949).

Leading bankers are alarmed by the successes of Hitler’s Germany financially, just as their families were terrified generations ago of the successes of Lincoln’s and Napoleon’s natural economy. What would have been laudable progress for Germany and other countries was in fact the main cause of World War II. The struggle between rival monetary policy was inevitable. (Carnelius Carl Veith, “Citadel of Chaos”).

Source: *Google translate* from http://www.burbuja.info/…/461130-hitler-posando-book…

The other strength of a full currency is the financing of investments without using financial resources accumulated in previous years and, of course, without using bank loans.

We have just seen that this is the main feature of the Labor Bills, bills of exchange and bills of exchange used as part of a full currency.

Investments are not authorized by financiers who want to control the entire economy, they are evaluated, decided and voted by citizens through their political action in the political institutions of the Networks of Life. As we have said, the limit lies in the availability or otherwise of the skills and the amount of work required to achieve the objectives.

2.2 ) In order to save the economy, the banks must be stripped of their power to create money.

Economic and monetary theories that combat this dominance of finance theorize that banks should lend in proportion to their deposits, because it is the uncontrolled issuance of credit that fuels speculative bubbles and financial crises. These theories are related to the Chicago School.

document: 

The Chicago Plan: The Forgotten Idea to Save the World Economy? Two economists at the International Monetary Fund have recommended that banks be stripped of their power to create money. Explanations.

Le Point.fr – Published on 27/05/2014 at 12:16 – Modified on 27/05/2014 at 13:59

http://www.lepoint.fr/economie/the-chicago-plan-l-idee-oubliee-pour-sauver-l-economie-mondiale-27-05-2014-1828512_28.php

The idea is old. Rather liberal Chicago School economists, led by Irving Fisher, had proposed it in the 1930s to end a system that had just bred the financial crisis of 1929 and the Great Depression.

Today, the “Chicago Plan” is explicitly championed by the Financial Times’ star columnist Martin Wolf, who recently published two opinion pieces in the British daily newspaper City Hall. Its relevance to reforming the current system was supported primarily by two International Monetary Fund (IMF) economists, Jaromir Benes and Michael Kumhof, in a 2012 paper. On Friday, 23 May, the latter came to explain its operation to a group of financial specialists, gathered in Paris by the Maurice-Allais Foundation. The only French Nobel laureate in economics who died in 2010 (1988) proposed, as did Milton Friedman, that banks should lose their power to create money. …/…

Loans make deposits.

Private banks, not the central bank, create the bulk of the money supply through their lending to households and businesses. “Contrary to the prevailing view in academic models, banks are not intermediaries in the sense that they would harvest people’s savings to lend to others,” says Michael Kumhof. By granting a loan, they create purchasing power, since they are crediting money to an account that did not exist before. According to this vision, it is “the loans that make the deposits”, and not, as one might have guessed, “the deposits that make the loans”. The salary deposited in a bank would only be a debit from the employer’s account to that of the employee.

end of document

Theoretically, the Chicago School represents a force for the use of legal tender without debts, a full currency. The obstacle which it conveys and which greatly limits its interest, is its aim to change the liberal capitalist system in order to improve it, to make it without the risks of economic crises. Therefore this theory does not go beyond the framework of monetary economy, it does not envisage the functioning of a full currency outside capitalism and in a participatory local direct democracy that we call here Networks of Life with everything that goes with it: alliance of the opposites, subsidiarity, assurance and solidarity, Total Quality approach, free cities, etc. Without a participative local direct democracy, the Chicago School pursues state interventionism in the economy, following Keynes and then defends the sovereign currency that belongs to the citizens and is led by their representatives using collective property. The example of the New Deal to right the American economy is not convincing, it is only with the production of weapons to prepare the war that this economy really emerged from the crisis of 1929 to enter into war according to the will of the Anglo-Saxon financial oligarchy.

3) human resources to use a full currency.

3) human resources to use a full currency.

is the staff competent, sufficiently trained and motivated? Is the corporate culture conducive to change?

This question is transposed here as follows: in order to use a full currency, is it essential to have a prior theoretical and practical training attested by a level of diploma? How can the culture of the social group promote the use of a Positive Monney ?

To answer that, we can draw on the experience developed in cities and towns that used a full currency, including during the crisis of 1929 and the early 1930s. The best known example is the small town of Wörgl, near Kufstein in the Inn Valley.

document : Wörgl’s miracle in Tyrol.

http://www.silesfemmescomptaient.com/fr/bibliographie/silence_worgl_8-9.htm

excerpts:

In 1932 Wörgl, with some 4300 inhabitants and several factories, was in a very deplorable economic situation, as was the case everywhere in Austria, Germany and throughout the world.

For example, 3 500 people were on public assistance, including 1 500 registered unemployed. Public finances were in dire straits as factories were abandoned and trade stagnated. The darkest misery reigned, as well as great human misery. Local tax arrears from 1926 to 1931 amounted to about 118,000 schillings and tax revenues were steadily decreasing.

Mr. Unterguggenberger, Mayor of Wörgl, was aware of the experience of free currency according to Silvio Gesell. He organized a Municipal Emergency Committee to create jobs. Very intelligently, he understood that we had to explain to committee members how we could get out of the crisis and still carry out a lot of necessary public works. Unfortunately, however, since the municipality did not have any money, but could not produce it itself, he proposed that the municipality of Wörgl print work certificates worth 1, 5 and 10 schillings. And pay the employees and workers of the municipality. These certificates would be called exactly “Wörgl first aid vouchers, work certificate in value”.

What was the result of the introduction of this means of exchange (the work orders which were thus put into circulation)? First, the unemployed almost all got jobs and regained purchasing power. The cellulose factory hired 350 workers. The cement factory 400. A beach to be developed required 200 workers. Roads and canals were built. The workers received wages. In the shops, we bought again. Everywhere one began to get rich, as the new money fulfilled its natural duty, by circulating constantly among the population. In 1932, tax revenue increased from 93,000 to 121,000 schillings without any tax increase. The large arrears were largely settled. Advance payments of taxes for 1933 were even made! The municipality was able to create jobs for civil servants, still without borrowing or raising taxes, whereas only 9,000 schillings had been issued in the form of work orders, but with an intrinsic dynamic. That is how “wealth-creating money,” as the American political economy professor Irving Fisher put it, came into effect.

Today in Wörgl, a bridge bears the inscription “built in 1933 with free money”, a street bears the name of Silvio Gesell.

An Inconvenient Model: This practical example of the monetary system offers some very important lessons. It must be admitted that a pure means of exchange which has lost all attractiveness of hoarding thanks to a capital tax, can only have a beneficial and quite surprising influence on the economic circuit. But there is an absolute and obvious need for this money – pure means of exchange – to be issued only by the state and to be indexed. Only indexed management of the currency can guarantee its purchasing power. If a country regulates its monetary system in this way, it gives its people “the money that makes it prosperous” (as Professor I. Fisher put it) without deflation or inflation, with favorable consequences that are barely imaginable from an economic and social point of view. It would not be surprising if, in a relatively short period of time, other States followed such a model.

end of document.

other source to consult for a list of the work undertaken by the city council to give work to citizens: http://www.unterguggenberger.org/getfile.php?id=1090

The main conclusion on the use of local currency is that this “pure” means of payment eliminates the hoarding function which, as we have seen many times, poses a problem because it allows a banker the loans which will make his fortune and introduce the risks of financial crises through abuse in the multiplication of credits to indebt clients and states. This is a one-off solution, especially in the event of a crisis, to maintain economic activity and pay wages, and avoid unemployment.

On the other hand, it has no relation to the development of common ownership and the means used to develop real life network organizations. It cures the causes of an economic crisis, but it does not call into question the functioning of the power system that leads these crises repeatedly in the race to maximize the profits of financiers. The financial system is just sidelined for a while, but it will quickly end this experiment that runs counter to its core interests. To eliminate the financial system, we need to be more comprehensive and look beyond, to find the path of thriving networked civilizations.

The human resources forced for a full currency.

Wörgl’s example in terms of human resources is still remarkable today. The knowledge needed to act comes from a book written by Silvio Gesell. The mayor takes his mission seriously and cannot bear the political, economic and social ravages of the financial and economic crisis of 1929. He cannot bear the increase in the number of unemployed in his commune and he decides to share this knowledge on “money that makes prosperity” with citizens who have the courage and are determined to resist, to create another alternative to the government policy that does not know, does not want to get out of this global economic crisis. A Municipal Emergency Committee is enough to launch the operation and the issuance of the Work Vouchers named here Relief Vouchers, Work Certificate.

The culture of the social group here is typical of the mountain environment: people accustomed to helping each other in a mountain environment that presents its difficulties and risks. Christian and Protestant culture is also a vehicle for social innovations to solve crises and eliminate misery.

But more than a pre-existing group culture, the practice of a full currency is enough to convince, persuade more and more citizens to use these Work Vouchers because “it works” right away.

Here we find a fundamental value of the humanist culture, described earlier in this document: the initiative and creativity of the human being through his activity.

Generals and warlords capable of leading their troops to victory know the importance of the initiatives they leave to their soldiers to find the means to advance and to push back the enemy.

Never tell people what to do. Ask them what should be done. Their ingenuity will surprise you.”General George Smith Patton.” Général George Smith Patton (1885-1945).

Historians and citizens who are involved in participatory management, Total Quality and participatory local direct democracy recognize and believe in this :

Never doubt that a small group of conscious and committed men can change the world. It’s even the way it’s always happened Margaret Mead.

The humanist value: labor precedes capital and not the reverse is declinated in terms of human resources with the famous sentence of Jean Bodin, «there is wealth and strength only of men»

When Jean Bodin wrote this sentence in Book V, Chapter II of his Republic, he was thinking of demographic balance. In the years 1550 to 1590, France is far from having regained its demographic level of the medieval period and after Friday, October 13, 1307 and the destruction of the order of the Temple, this demographic level will again be reached only around 1850.

The Republic of Bodin corresponds to the development of royal absolutism and the sovereignty of a monarch who is no longer challenged by family quarrels and wars of succession. In 1596, when he died, the country is still very far from that and the rediscovery of the functioning of the time of the cathedrals, of the law prohibited by royal absolutism and then the centralization of the republican power is still not admitted today. But this famous sentence is the fruit of an intuition rather than of a clear and complete understanding of the medieval period and of the functioning of the Egyptian, Greek and more distant first peoples civilizations.

4) technological resources and patents at the service of a full currency.

does the company have innovative technology and patents?

This question is transposed here into whether the use of a full currency depends on particular technologies, know-how.

We have shown the functioning of a full currency through its recent uses in the countries neighboring France and chronologically first in the Tyrol at Wrögl then from 1933 to 1937 in Germany with Schacht and its Mefos, finally from 1945 to 1973 in France especially during the reconstruction of the country, the Trente Glorieuses.

The Strengths of a fully-fledged currency in terms of technological resources.

The use of a full currency does not depend on any particular technology that would be indispensable for its development. Just pieces of paper are enough with the mention Work Order or Emergency Order.

Even a typewriter seems useless, a stamp of the body that manages it is certainly preferable but since it can be falsified, why not avoid it. On the other hand, handshaking seems essential to seal the discussion and the presentation of the objective to be achieved.

In the event of a crisis, Schacht trusted the individual initiative, the individual freedom to choose the objectives to be achieved, individual freedom which has only the name of it because the achievement of the objective: building a road, a building, etc. can hardly be the work of a single citizen even very versatile but results from the action of a group united around this objective.

For the management of the currency in circulation, there are work orders or commercial bills before their final discount by the central bank, this “technology” or rather practical, is rudimentary and full of common sense: as long as the storage hangars of the production before its shipment are not full, the production can increase. When inventories have delivery times that increase because customer demand falls, production must slow down or stop.

In the Life Networks, this management is facilitated by the planned shift of work from the first level of activity, the work essential for life and survival, to the second level of activity, the realization of works that raise the standard of living and are handed down to future generations. What is forbidden and does not exist in the capitalist system, hence unemployment and exclusion of populations towards precariousness, poverty or even misery.

Double-entry accounting is sufficient to guarantee the clarity and sincerity of accounts and exchanges. It already existed in the Antiquity on the banks of the Tigris and Euphrates and those of the Nile and certainly elsewhere in India or China or in the Andes.

This common-sense simplicity certainly explains why it is obvious for citizens to use a full currency rather than remain subject to the current financial and banking system and the taxation of its debt money, its counterfeit currency. This evidence is illustrated by this well-known comment:

If the people of this nation understood our banking and monetary system, I believe there would be a revolution before tomorrow morning “.  HENRY FORD. 

Another force for using a full currency is precisely the fact that the banking technology for making counterfeit money is not so difficult to unmask, flush and chase, and eliminate when abandoning the power systems that use money as the main instrument of control and direction of the economy.

A number of renowned economists warn against the drift of economies too centralized to be better controlled by the Anglo-Saxon financial oligarchy and thus destroy these trade relations and work here or there.

« I have sympathy for those who want to minimize rather than maximize the economic nexus between nations. Ideas, knowledge, art, hospitality, travel: all are, by nature, international. But that the goods be domestically produced wherever possible and convenient. And, above all, let finance be above all national”John – Maynard Keynes. Quoted by Herman E. Daly, former Chief Economist in the World Bank Environment Department, in a insightful article on the evils of free trade: “The perils of free trade,” Scientific American, November 1993.

Keynes, in prioritizing full employment, is consistent: money and finance must remain national, where economic projects find goals that can meet citizens’ needs. Beyond the national space, the decisions of large groups and multinationals do not guarantee full employment for every nation.

This warning about high finance and its counterfeit currency comes back after every financial and economic crisis, but so far visibly in vain.

« The 1929 crash was not accidental. It is a carefully planned event. The international bankers sought to create a desperate condition here, so that they would become our masters at all. ». Louis T. McFadden, Chairman of the House Banking and Currency Committee, 1933.

” True democracy will come not from a few taking power, but from the power of all to oppose the abuse of power. “ Mahatma Gandhi.

After these warnings and advice, we can tackle this banking technique that produces counterfeit money and serves to indebt citizens, their families, businesses, political, economic, social and cultural institutions throughout our planet.

We will begin with a lecture on the currency of the economist Galbraith

The lesson on money proposed by John Kenneth Galbraith and taken from the excerpt of the book “Money”

Silver is a 1975 book by Canadian economist John Kenneth Galbraith.

In this essay, J.K. Galbraith explains in simple terms the nature of money and all the economic mechanisms that surround it: coins, private or public treasuries, banks, large private or national banks, paper money. All of this is illustrated by examples of Western economic history from the sixteenth century to the present.

« Most currency discussions are locked in a thick gang of incantation and preachy. Often deliberately. Those who speak about money or make it the subject of their instruction, and thus of their livelihood, derive prestige, esteem, and pecuniary benefits, like doctors or sorcerers, from the carefully cultivated belief that they have a special association with the occult – that they have perspectives on a field utterly inaccessible to ordinary people.

This, too, is a well-known scam, a source of job satisfaction and, at times, personal gain. There is nothing about money that a person with curiosity, zeal, and reasonable intelligence cannot understand. And whatever errors of interpretation or fact this story may contain, there is none, the reader can be convinced, which is a process of extreme simplification.

THE STUDY OF MONEY IS, PAR EXCELLENCE, THE FIELD OF ECONOMICS IN WHICH COMPLEXITY IS USED TO DISGUISE TRUTH, NOT TO REVEAL IT. Most things in life—cars, mistresses, cancer—matter most to those who have them. Money, on the contrary, is as important to those who have it as it is to those who do not. That is why it is in everyone’s interest to understand. And both should know that this understanding is perfectly within their grasp

In this respect, one might well ask whether a book on the history of money should begin with some DEFINITION of what money really is. This strip of paper of zero intrinsic value, what makes it useful for exchange while leaving another strip of similar size and color perfectly worthless? The precedents for such an attempt are not encouraging. On television, astute journalists invariably open up economists’ interviews with the question, “Well, tell me — what is money?” Inevitably, the answers are inconsistent. And professors teaching the basic fundamentals of Economics, whether money or banking, begin with highly sophisticated definitions. Which are carefully transcribed, learned with great difficulty and happily forgotten.

Readers should turn to the next few pages with the understanding that MONEY IS NOTHING MORE OR LESS THAN THEY HAVE ALWAYS BELIEVED—WHAT IS OFFERED OR RECEIVED FOR THE PURCHASE OR SALE OF GOODS, SERVICES, AND OTHERS.

Different forms of money, such as what determines what they buy, is another matter. But that is precisely what the next few pages propose to reveal. »

(…)

« THE PROCESS BY WHICH BANKS CREATE MONEY IS SO STRAIGHTFORWARD THAT IT CONFUSES PEOPLE. When it comes to such important things, one should expect a deeper mystery. The deposits of the Bank of Amsterdam mentioned above could, on instructions from their owner, be transferred to others to settle accounts. (A service that had long been rendered by the bank’s private forerunners.) The coins deposited did not serve less money merely by being locked up in a bank and transferable by the stroke of a pen.

It was inevitable that we would discover – as the conservative aldermen of Amsterdam did by looking with guilty interest at their own needs as directors of the East India Company – that with another stroke of the pen a debtor of the bank, not a creditor of the depositor, could receive a loan on that unused deposit. And, of course, it was the bank that would charge interest on the loan !

Depositors could be warned that such use might occur — perhaps even paid for it. The original deposit remained to the credit of the author. But now there was a new deposit made up of the loan. Both deposits could be used to make payments, such as money. So money was created. THE DISCOVERY OF BANKS’ ABILITY TO MAKE MONEY IN THIS WAY OCCURRED EARLY IN THE BANK’S HISTORY. IT WAS THAT THERE WAS THAT INTEREST ON THE LOANS. “WITH THIS KIND OF INCENTIVE, MEN HAVE A NATURAL INSTINCT TO BE INNOVATIVE. »

Source: John Kenneth Galbraith, “The Money,” Folio, pp. 18-19, then 40-41

Links: http://etienne.chouard.free.fr/Europe/monnaie.php

http://www.fichier-pdf.fr/2014/04/20/livre-galbraith-l-argent-1975/

Links on Galbraith include:

http://www.agoravox.fr/actualites/economie/article/john-kenneth-galbraith-cet-9318

http://www.agoravox.fr/actualites/economie/article/les-verites-de-john-kenneth-9310

When granting credit, the banker exercises almost absolute and discretionary power.

The only fear is that the guide will not be repaid in his reflections, and in the face of the bankers’ lack of courage, it is up to the state to pursue growth policies to support investment and the level of activity. Galbraith is in the liberal movement, innovation serves the greed and cynicism that Adam Smith and his perfectly cynical grocer or butcher put forward to work better and eliminate his competitors. We are the opposite of the Total Quality approach that in the Networks of Life organizes human activity and where prosperity begins with the elimination of dysfunctions and risks with investments and work, skills that no banking supervision limits.

The savings that drive a banker to use it through new loans and credits in order to earn more, we repeat, in the Networks of Life does not exist but instead, there is the use of social rights in the management of common assets. Social rights are not a technique as such, just a right to use the commons.

We will see other banking techniques, in particular to secure customer accounts or to strengthen the security of banks in the event of financial and economic crises in the external diagnosis in terms of opportunities and threats present in the environment of a full currency.

5) the commercial and marketing resources at the service of a full currency.

Are customers satisfied with the products? Are market shares increasing? Is marketing policy consistent and effective?

This question is expressed in the following way: is the use of a full currency satisfactory and does it allow sustainable economic development in accordance with humanist culture? The prosperity that Lionel de Rothschild guaranteed in 1865 to any nation that uses it, how does it develop ?

We have shown through the Total Quality approach, the development of human and social, societal relations and the way in which the Costs of Obtaining Quality serve to feed the Plan which represents the database from which the Work Orders are issued and then through their discounts, is created the legal currency at the balance sheet level of the central bank of the Confederation of Networks of Life. The political action of all citizens through their activities and their work thus brings in a tangible way the confidence which is the basis of any currency in circulation in an economy.

To address the prosperity that comes from using a full currency, we will return here to the book by Erik S. REINERT “How Rich Countries Became Rich, Why Poor Countries Remain Poor”.

Reinert makes the fundamental distinction that not all economic activities are equal in creating wealth. Some activities contain more intelligence than others, and some situations bring productivity gains and synergies that others will never have. We must therefore choose the right activities and the right situations to ensure the development of wealth in our system or network organizations.

Excerpts from the book:

« Since time immemorial, the majority of the world’s people have simply lived in relative poverty, often in a delicate balance between population size and available resources. As Alfred Marshall, a founder of neoclassical economics, put it, all migrations in history were created by diminishing yields – rising population density balanced by unchanged resource availability and technology. This mechanism is described in the Bible about the tribes of Israel who had to separate because the earth could not carry them to remain together. In such a world, wealth and poverty were akin to a zero-sum game; wealth was essentially acquired through existing assets that changed ownership. This worldview was codified by Aristotle. At the end of the Renaissance came a change of mentality: many factors combined to cause the gradual disappearance of zero-sum games as the dominant worldview, while at the same time introducing an element of progress in addition to the cyclical nature of history. (page 206).

Aristotle’s worldview, as a zero-sum game, slowly gave way to the growing understanding that new wealth can be created – and not just conquered – through innovation and creativity. (page 208).

« Around the 13th century, the Florentines, Pisans, Amalfi, Venetians and Genoese began to adopt a different policy in order to increase their wealth and power, having noticed that the sciences, the culture of the land, the application of the arts and industry, as well as the introduction of extensive trade, could allow them to generate a large population, provide for their innumerable needs, maintain a high level of luxury and acquire immense wealth, without having to conquer new territories.” Sebastiano Franci, reformer of the Milanese Enlightenment, said: 1764. (page 205)

Very early on, it was clear to people that most of the wealth was in cities, and particularly in some cities. Cities were home to free citizens; in the countryside, people were usually serfs who belonged to the land and the local lord. From these observations, investigations were carried out to understand what factors make cities so much richer than the countryside. Little by little, the wealth of cities was perceived as the result of synergies: people from many different trades and professions forming a community. The scholar Florentine and statesmen, Brunetto Latini (1220 – 1294) described this synergy as “it is common”, that is to say opening “the common good”. Most early economists, mercantilists, and their German counterparts – the cameralists – used these synergies as a building block for understanding wealth and poverty. It is the common good that makes cities great, repeats Nicolas Machiavelli (1469 – 1527), almost 300 years after Brunetto Latini (page 207)

Through this social understanding of wealth that can only be understood as a collective phenomenon, the renaissance has rediscovered and emphasized the importance and creativity of the individual. If these two perspectives – the common good and the role of the individual – are not taken into account, neither the Renaissance vision of society nor the phenomenon of economic growth can be understood. »(page 207).

End of the excerpts from Reinert’s book.

This is the thirteenth century, a flourishing one organized around monastic and knighthood that spread knowledge and defended it against kings and popes. The process of the virtuous circle of economic development is an ever-greater lesson in organizational management: to bring together educated and educated people in a variety of occupations to create a common project: a free city, free from the dominant system of power, the feudal system, today the liberal capitalist system. The common project: yesterday a free city, today our citizen networks of life.

As Reinert shows, there is complementarity between the development of the city and the countryside close to the city.

Urban dwellers use their income as artisans, traders, civil servants, artists and teachers to buy the crops of the farmers around them. Farmers will produce more, achieve economies of scale, and with the help of the city’s craftsmen, they will perfect their tools, their farming methods. The crops will be sheltered in granaries behind the ramparts, within the abbeys. Monks who vow to be poor, guarantee the fair sharing of reserves in times of famine or poor harvests. Trust is building up everywhere, and surpluses are traded with neighboring cities. The point is simple during this historic period: town-country complementarity breeds local development. A countryside that has no town nearby remains poor. A city built without farmland will thrive, because the wealth it creates will enable it to expand agriculture in the neighboring region.

The examples are well known: Venice, Italian ports, the cities of Holland do not have agricultural land in their homes, so they can only rely on their craftsmen, their sailors, their traders. Maritime cities will grow faster as they use thousands of artisans, carpenters and laborers to build their commercial and wartime fleets.

There is a political lesson here: cities should hold back big landowners who think differently and are logical supporters of old-fashioned conservatism and traditions, whose vested interests threaten the interests of cities. The management of the common property, of the common good in a city is a lesson in participatory local democracy as once in the Greek or Egyptian cities. It has nothing to do with the despotic and feudal power of the Lord of the Earth. Florence, located in an agricultural region, will forbid the landowners’ access to power and it will be the traders, artisans, artists who will manage the city’s development. The search for innovation, the exercise of creativity, is based on the principle of subsidiarity taught by the monks, which will find its most visible application even today in the plans for the construction of cathedrals, once the development of cities will allow a surplus of workers that will have to be occupied in the realization of works over several generations.  

This logic, this development mechanism, will be repeated at the start of countries’ industrialization

Excerpts from Reinert’s book with our summary and reformulation: 

Competitive advantage in management temporarily provides a rent, a surplus of profits over others, which ensures a leading position in a market. The minority of richer city-states in Venice and the Netherlands held market dominance in three areas:

puce rouge in economics, they enjoyed rents that generated rising profits and supported high real wages and taxes to pay for their state structures (police, army, judiciary, education).

  • These city-states had a very large and diversified industrial and craft sector
  • which controlled a large market of raw materials: salt in Venice, fish in Holland.
  • Finally, these city-states have developed a very fruitful foreign trade. (Venice was long the capital of the slave trade between Asia and the Middle East, a “great consumer of slaves” (though by around 600, the messenger prophet Muhammad redeemed the slaves around him to set them free, ndrl). Holland’s cities traded from manufacturing in textiles, gemstone cutting, glass lentils, and salted and marinated herring…

puce rouge The wealth created was protected behind steep barriers to entry. These barriers to entry were superior knowledge, manufacturing techniques and above all the use of powerful synergies through diversified manufacturing activities.

puce rouge This production was supported by economies of scale obtained through trade secured by military power.After 1485, England imitated the triple rent structure created by the city-states of Europe. Through heavy-handed economic intervention, Britain created the so-called triple rent system: manufacturing, long-distance trade, and a wool-based commodity rent. Britain’s success would ultimately lead to the death of city-states and the development of nation-states, with the synergies found in city-states extending over a wider geographical area. (page 214). 

end of document.

In England after 1485, royal absolutism and autocratic management replaced the networked organization defended by the order of the Temple, and Joan of Arc’s attempt to restore the cathedrals’ time was discarded and destroyed by the papacy and the French king, who was allied for the occasion with British troops. In the external diagnosis and the political environment, we will return to the criminal roots of the Anglo-Saxon oligarchy and especially to the religious root of the puritanism that legitimized the slave, the deportation of Catholic Christians who defended the management of the commons in their local communities managed in participatory direct democracy.

This is not the most important here, when we are only analyzing the methods of creating wealth.

The bottom line is that the virtuous process of development works. The Templar Fleet traded long distances with the Americas: the Iroquois Indians in the north, Mexico, and the Andes in the center and south. The Temple’s commodity rents rested on the management of 90% of the real estate in France, which ruined the French king, who now had only 10% of the land to live on and pay for an insignificant army. It took the crimes of Philippe le Bel from October 1307 to destroy the Templars, France’s network organization, and found royal absolutism.

The system of industrial power will remain on this mechanism, this process of wealth creation, except that in this system, in this process, the common interest, the common good, the common property managed by the monks and defended by the Templars, will be forbidden and will disappear.

Restoring the commons, common ownership in the process of wealth creation and political, economic and social development is one of the fundamental missions of the movement expressed on fileane.com. 

Thus, the history of industrial development in the capitalist system of power can be summarized clearly and briefly by the means employed by the owners of the capital invested in factories and trade. Europe recognized that it needed to develop a diversified industrial base, and its governments insulated infant industries through tariff barriers in order to ensure investor confidence in the capital of industrial firms. The original aim was to saturate the internal market with mass-produced material goods in order to overcome poverty (from the point of view of the states) and to reach a critical size in order to be able to achieve economies of scale on other markets (from the point of view of the capitalists).

When the internal market was saturated, colonialism applied to countries supplying raw materials. The explanation, clearly stated in Reinert’s book, is that colonialism is the international continuation of the protectionism that states implemented to protect their industries and use the virtuous circle of economic growth. In short, colonialism prevents commodity exporters from industrializing themselves. Of course, otherwise these countries would inevitably and logically ruin or at least slow down the development of the industrialized countries first. Few countries opposed this colonialism. The first and most important was the United States, which revolted against English colonialism in the late eighteenth century. As early as the 1800’s, the US developed its industrial base in the familiar way, evidently using protectionism to bolster its infant economy. The prohibition against colonized countries industrializing necessarily leaves them in a non-industrializing mode, i.e., ostensibly in poverty and economic non-development. 

One last indication of how effective this method can be is that, under the Morgenthau Plan, enacted by the British and American conservatives, Germany was made impoverished for good in 1945 as a war sanction. Both the Western and Soviet allies initially destroyed and took machinery from German factories to transform Germany into a predominantly agricultural country with diminishing returns. By 1947, the results were disastrous, and there were 25 million Germans too many to feed the country at that time. Even before contemplating their deaths from hunger, as Stalin did to four million Ukrainians in 1930 through his agrarian reform to collectivize the land, Anglo-Saxon leaders understood that these Germans would prefer to join East Germany, which was then a showcase for communism against the West.

The Marshall Plan began in 1947, and, before long, reindustrialized all the countries bordering the Soviet bloc in order to develop them so that they could counter the threat posed by the Soviet Union. The Marshall Plan simply revived recipes from the past, which the US had also embraced after independence.

The European common market is built on the same foundation of rising returns. The common market was presented to voters on the premise of increasing returns that would increase wealth (Cecchini Report, 1988)” (page 171). It is therefore becoming clear that the development of a central structure in Brussels which serves as a relay to the liberal doctrine of free trade can only be at odds with European roots and makes it impossible to complete the construction of Europe, the political union which can be achieved much better through networked organizations in confederation.

The Strength of a Full Currency once again guarantees prosperity.

REINERT explains how rich countries became rich under the systems of power, that of royal absolutism and then that of industrial society. It does not use an analysis of medieval society and the functioning for example of the order of the Temple with the introduction into the trade of the use of the bill of exchange among the network of the Temple bank at the service of trade.

Today, the full currency closely corresponds to this virtuous circle of prosperity, that is to say the triple rent: an economy based on know-how and expertise capable of giving a competitive advantage; a wide and diversified network of craftsmen and industrialists; a very fruitful foreign trade.

This virtuous circle is protected by knowledge- and skills-based entry barriers, and, more generally, by military safeguards to ensure the development of large, positive economies of scale that are the primary source of productivity gains.

The main task of the Plan, which brings together the financing of the Quality Achievement Costs presented by the life project teams of the various political, economic, social and cultural institutions, is to identify the conditions for the realization of this triple rent which ensures the functioning of the virtuous circle of prosperity. All this human activity is paid and financed by the currency, its bills of exchange, commercial bills, work orders, relief orders…

6) organizational resources related to decision-making for the use of a full currency.

is decision-making centralized or decentralized? Is the information system effective?

The expression “networks of life” is translated into conventional language by participatory local direct democracy. We have left, abandoned the systems of power and their centralization of decisions. At the level of information management, we have shown how the political action of the citizens is carried out during the assemblies of their institutions and the preparation of decisions by the management centers of the Networks of Life. Similarly, the management of the Mint is based on the Plan, whose main mission we have just shown, and the challenge it represents in terms of clarity and consistency in the financing of investments and the remuneration of labor for all human activity. This organization is a Force at the Service of a Full Currency.

To return and conclude on the example of Wörgl, we use the pertinent remark of this journalist, author, columnist who had understood the strengths and weaknesses of the communication society developed with radio and especially television, telecommunications and the Internet:

Well-informed men are citizens, ill-informed they become subjects.” Alfred Sauvy.

“Ill-informed” is also the whole question of the use of a full currency and precisely how it works, the technologies used for its development and especially those used in the liberal system so that citizens are unaware of its existence, its possibilities in terms of prosperity, the way to use it. Poorly informed, these citizens are also a weakness.

Ill-informed, of course, but the leaders who want to impose their world government do not hide and publicly claim the goal they pursue. An illustration of this dominant undertaking can be found in the book “Memoirs” which has David Rockefeller as its official author. In the English version, it says:

Some even believe that we (the Rockefeller family) are part of a secret cabal working against the best interests of the United States, characterizing me and my family as internationalists and conspiring with others around the world to build a more integrated global policy and economic structure – one world, if you will. If that is the accusation, I am guilty and proud to be guilty. David Rockefeller, MEMORIES, page 405.

Another illustration: Waren Buffet said that class warfare still exists. That’s his class (the rich.. Buffet is the 2nd richest in the world…) who is winning it!

By contrast, the current banking system’s leaders are unable to inform their clients and citizens about the nature and scope of their behavior when they manage credits or sell securities crafted from an assortment of more or less risky debts. Speculation plays into these risks. Securities sales affect all banks, and commercial banks bought a lot of them before the 2007 crisis erupted. Today, bankers are unable to justify whether the loans originated from deposits or from money borrowed from the central bank and thus created ex nihilo.

Is it a force in favor of a full currency to force bankers into this inability to establish the clarity and traceability of the money they manage in relation to the transparency provided by a full currency? Is it a weakness because explaining this situation to the citizens to persuade them to abandon the current banking system is proving so difficult, as we saw with the lesson on the Mint of Galbraith, “the study of the Mint is, par excellence, the field of economics in which complexity is used to disguise the truth and not to reveal it”.

The Swiss Citizens’ Initiative of 2014 for the use of a full currency faced this difficulty to refute the objections of the defenders of the current banking system who said that it is enough to improve the current system to make it more secure and that the risky revolution of a full currency is useless and dangerous. Illustration:

Document: Proposal for a reply to Professor Rossi: The unsaid of the economy (7/4/2014):

EMPTY MONNEY AND FULL MONNEY by Christian GOMEZ

“Professor Rossi, with his usual open-mindedness, has fully appreciated the importance of the debate launched by the ‘Full Currency’ initiative for a fundamental reform of the functioning of our banking system. It is crucial to put our economic future on a solid footing and to make Switzerland even more competitive economically and socially.

No, it is not “normal” for private agents, in this case the banks, to be able to “beat money” and create purchasing power over production from scratch. No, it is not ‘normal’ for the latter to be able to draw a rent from a privilege that has always been held by the Community throughout its State; No, it is not ‘normal’ for the variation in the currency in circulation to depend on actors who may be subject to crises of absurd euphoria or outrageous pessimism; No, it is not normal for a bank’s nonsense, provided that its size is significant, to lead to a collapse of the payment system and thus damage the entire economy; No, it is not normal for the whole system to be able to stand only at the price a brazen waste of capital (increase in capital ratios) and, finally, because all the players in the banking sector, depositors and savers know that the state is the guarantor of last resort and that the citizens will pay all the costs if it is really serious….

By proposing to distinguish between credits that add to a community’s monetary income and credits that are based on current production (which is basically financed by savings), Professor Rossi sees the problem and sees it as a capital problem. But, by rejecting what he considers to be a radical solution to the transformation of the system, Trump has painted himself into a corner. No bank or banker will ever be able to tell whether his loan is financed with “a writing game” or “real savings.” Most bankers don’t know what they’re doing, and they don’t need to be “good” bankers.  The rules of operation of the banking system as a whole must be considered, as most of the leading economists have clearly seen, whether liberal (for example: Simons, Stiegler (Nobel 1982), Marshak, Machlup, Fisher, Friedman (Nobel 1976), Allais (Nobel 1988)…) or Keynesian (like Tobin or even Minsky), all of whom were ardent supporters of the reform brought about today by the new initiative.

The proponents of this reform did not leave without solid arguments and they expect their opponents without aggression but without complexes, with the certainty of defending a cause that goes beyond Switzerland alone by its stake.”

 Wednesday 04 June 2014

end of document.

The campaign for the vote on this Swiss initiative in June 2018 struggled to get out of the complexity of which Galbraith speaks in order to disguise the truth. This is the limit of these Citizens’ Initiatives and the way to skew them at the outset: to propose the amendment of a single point of the Constitution and thus to ensure that the initiative fits into the rest of the texts, in short, hardly changes anything in the system of power so as not to be in flagrant contradiction with this system of power and to be labeled as revolutionary, an insurmountable defect in this country which is the only one since 1945 to have undertaken no purification of Nazism and fascism with which most of its economic leaders have nevertheless collaborated closely, especially investment bankers. In short, this reflects “ill-informed” citizens’ either profound disinterest or superficial and principled adherence, without much conviction, particularly on a radical and complete change of the system of power. So, no search for an overall vision to live differently without these institutions of the liberal capitalist system.

To spend some time with Galbraith, one of America’s most humane economists:

 « It’s not just money that matters in analyzing the economy,” Galbraith wrote in an interview with Harry Kreisler in 1986 (Conversation with John Kenneth Galbraith). Too often, people forget the role of power in economic choices. Despite market orthodoxy as the big adjuster of the economy, at least half of the entire economy is planned by the big corporations that dominate the market ».

Well-informed our readers know that solidarity in the Networks of Life translates into the gift of knowledge, the sharing of a successful experience towards another social group, another local network facing the same dysfunction or the same new need. This management of the intangible collective property of knowledge includes the lessons learned from our two sources and the use of our first individual, personal and initiatory source serves as a trigger, motivation and courage to use our intellectual and rational source in the sole service of a humanist culture and its values.

 II) The analysis of skills for the use of a full currency.

At the beginning of a human activity, there is initiative, creativity, curiosity, appetite to discover the world in which we live in order to find our reasons for living which are the same as our reasons for dying. This teaching finds its origin in our initiatory and spiritual approach, our first source of knowledge, the one that does not need to know how to read and write, just use language in its verbal or gestual form.

At the end of this spiritual and intellectual activity, we find the knowledge and knowledge we need.

This acquisition of intangible wealth is achieved in two ways through education, training and experience, learning on the ground and most often through pedagogy or failure. A skill is the knowledge that comes from training and experience.

In the liberal capitalist system of economic power, the management of organizations distinguishes fundamental competences from other competences. Subject to competition in its markets, an organization must develop and maintain its core competences, which it alone has developed and which are easily imitated by competitors, hence obtaining a rent which gives it a competitive advantage and enables it to enjoy additional profits compared with its competitors.

In the Networks of Life, the practice of the alliance of opposites to define objectives and of subsidiarity to obtain the optimal solution in the state of current knowledge as well as the use of our two sources of knowledge are the basis of the development of skills. We have seen that the exchange of these competences is at the heart of solidarity.

As regards the use of a full currency and through the analysis of the resources which are strengths or weaknesses for the development of its use in order to have once again prosperity in the framework of a flourishing civilization, we have constantly raised the role of skills to promote exchanges among the Networks of Life. We are no longer in a system of power that uses competition in the markets in order to maximize its profits legitimized by the exclusive use of private property, including means of production. In the Networks of Life, the competitive advantage shared by all is prosperity, the use of the virtuous circle of wealth which is based on obtaining the three rents and whose profits are distributed equitably through the common ownership and management of the common assets. The issue of the skills used is radically different.

1) basic skills in the service of a full currency.

Within the framework of this management of a full currency, we have seen that among the skills used, there was one that brought together almost all the others: developing synergies. We’ve seen it in terms of trade resources, trade, and marketing.

The richness and prosperity of a free city is the result of synergies: people from many different trades and professions forming a community.

A definition of synergy: synergy commonly reflects a phenomenon whereby several actors, factors or influences acting together create an effect greater than the sum of the expected effects if they had operated independently, or create an effect that each of them could not have achieved by acting alone. In common parlance, the word is rather connotated positively, and it is used to designate a more favorable outcome when several elements of a system or organization act together.

More prosaically, there is positive synergy when the result of an action or element is greater than the sum of the results of the parties. This is summed up very simply by the aphorism one and one is three.

Illustration by example of the medieval period.

This period of global warming is favorable to the development of demography and the economy. The monastic organization of the Benedictines with then the orders of monks soldiers, including especially the Templars, will set up with the free cities a social peace period of around two centuries which will be destroyed on Friday October 13, 1307 to allow the King of France D ‘Establish royal absolutism.

We know the optimal solution to solve the demographic problem associated with decreasing yields in agriculture and campaigns. The decreasing yields are the opposite of growth and they apply above all to agriculture: extensive decreasing yields when it comes to using more land to feed a population or livestock. Intensive decreasing yields when it takes more work to cultivate land or that land is no longer enough to feed an ever greater population without finding the slightest synergy.

The surplus of labor in agriculture does not remain in the families of peasants. It goes to free cities and a part goes to the abbeys to help monks develop common goods.

The field workers, the serfs are formed initially by the monks of the abbey. They become blacksmiths, masons, carpenters, musicians, doctors, fishermen, weavers, etc. Together they will build the city and its ramparts, its fortifications. When a feudal lord wants to come and recover some families who abandoned his land, even with around fifty men -in -arms, he must stop in front of the city walls and if this lord insists, thousands of men in arms riding on the ramparts or will make an exit to chase it.

This new forces report is also the result of a synergy developed as part of the new free city. This economic, cultural and political power cements this common good, this common property specific to the city community. But the development process is not limited to the city.

The growing yields are based on the learning effect (elevation of skills, a always possible source of productivity gains), economies of scale that come from innovations in production to save the quantities of production factors and especially from Long distance trade capable of bringing new customers especially when this trade is defended by military means.

These are the three annuities of the virtuous circle of prosperity, we indicated it above. The trade fleets protected by the military navies were thus the instruments of the development of the wealth of the first rich countries as well as the was the fleet of the order of the temple which traded with the Americas long before 1492.

Synergies then strengthen this process of wealth initially based on knowledge, the development of knowledge. These are the various trades associated in the development of common goods that will develop the riches of free cities.

Reinert in his book that we use here, presents a historical case of this prosperity of a city based on the synergies it has developed.

The example of the development of the city of Delft in Holland is a case study:

from the cutting and polishing of glass to make lentils, the city produces long views for the navy of war and the commercial navy. It attracts scientists who develop and use the first microscopes. The painters begin to use the magnifying glass to create extremely precise and meticulous paintings by perfectly restoring the play of lights, the details of a portrait like a photo before the hour. Lenses are also used by artists to create black rooms and magic lanterns long before cinema. Commerce, armaments, science and artists are leading to an increase in knowledge and income all around the city.

The relationships between the activities generating these synergies are shown in the following diagram from Reinert’s book:

Delft,un système d'innovation diversifié pour obtenir de nombreuses synergies

Excerpts from the book:

« Figure five illustrates “the national system of innovation” that could be observed when visiting Holland in the immediate aftermath of the Thirty Years War. The knowledge developed in one sector “jumped” into other seemingly unrelated sectors, proving that the new knowledge is created by connecting previously unrelated facts or events. Diversity itself came to be understood as a key ingredient in economic growth, and that diversity was not found in the farming communities where people tended to produce the same things. This has been recognized as one of the problems of commodity producing regions: they have little business to do with each other.

At that time, the Netherlands was a laboratory from which the mechanism of economic development could be seen at work. It seemed obvious to contemporary observers that innovation and wealth were the result of many windows of opportunity to invention outside agriculture, falling unit costs of production, increasing returns to urban activities, the extent of the division of labor, and many different wealth-creating professions as the product of synergies.

Drawing on observation of the same phenomenon in Venice, Antonio Serra clearly describes these three principles in his work published in 1613, adding that “one factor gives strength to another”; in other words, he describes a self-catalyzing system of economic growth. Antonio Serra also devoted a chapter on the types of economic policies that a state needs to create wealth, based on this type of system.

It is as if these theorists say: if you want to estimate a city’s wealth, count the number of professions you will find within its walls. The higher the number of professions, the richer the city. Diversity of economic activities was a goal in itself that allowed new knowledge to “jump” from one sector to another, as we presented in Figure 5. These theoretical developments continue the tradition of the common good, of the common good, of Brunetto Latini in the thirteenth century.

End of excerpt from book.

The practice of subsidiarity implies that the optimal solution must be adapted to local circumstances. We’ve seen it with free cities. Those that are seaports need many craftsmen to build and maintain ships in addition to craftsmen to live and develop the city. There is no specific source of economic, social or cultural inequality here unless we are in a system of power in which the ruling minority, in order to dominate its neighbors, will prohibit them from developing the same management of wealth or, if necessary, will come to plunder and destroy that wealth in order to increase its own. As Galbraith points out, it is the power that runs the economy, even if the theorists of the liberal capitalist system teach the contrary with their dogma and fiction, myth, of free markets.

The wealth created in Delft and in the port cities of Holland, Antwerp and the diamond cutting, etc., has obviously stayed there and we can find it in the heritage of the cities, the architecture, the paintings and the works of art of their museums.

The same applies to the free cities of the Decapolis of Alsace and the republican cities of Strasbourg and Mulhouse, Colmar being the political and economic center of the Decapolis. We know the exchanges between the free cities of Kaysersberg and Munster: the wine went to Munster and the Munster cheese descended to Kaysersberg, in these two cities the inhabitants could feast on a piece of munster with a good glass of wine from Alsace … like tourists still today!

This patrimony remains the tangible witness of the ancient commons of these cities which today are managed by collective property and the elected representatives of the citizens with the great difference, that today this management is carried out with the money debts of the bankers counterfeiters and no longer with a full currency. Hence the chronic lack of financial resources to preserve and save this heritage.

2) the protection of these skills in the use of a full currency.

The loss of skills in France after 1973 and the abandonment of quasi -full money to finance the infrastructure and major modernization projects of the country.

The case of France with its deindustrialization demonstrates how the power and the different governments, the political class, are responsible for the loss, sale, sidelining of innovations, patents, discoveries, technologies and skills, mainly in industry but not that, also in biological, genetic research such as messenger RNA research, a molecule discovered in 1961 by two French researchers from the Institut Pasteur, Jacques Monod and François Jacob, discovery which won them the Nobel Prize but whose work to use it in a vaccine was not funded by the French leaders… but by American pharmaceutical groups without success since since this biological process is particularly unstable and has not yet been stabilized today. Hence the global scandal of the alleged vaccination sold by the giants of the American pharmacy Pfizer and Moderna without any test to check if this vaccination had positive effects to slow down the propagation of the COVVI-19 virus and to reduce the serious cases of infection. Only the lure of the gain and juicy profits that were obtained by these firms explain this scandal.

This example of the scandal of vaccination against COVVI-19, typical of market freedom and the deregulation of activities in the liberal capitalist system, is not possible in our life networks. The security and defense of life networks are responsible for identifying harmful skills for life and its biodiversity and eliminating the tests of biological, chemical, climatic, nuclear weapons.

As early as 2015, we knew that at least an American laboratory developed tests for a biological weapon of mass destruction of human beings and that other studies took place in this field, including that subcontracted by an American firm in the P4 laboratory in Wuhan In China from which the COVVI-19 virus will come out following an accidental leak and a lack of security in the activities of this laboratory sold by France.

Thomson, Alsthom, Alcatel, the nuclear sector, the electronic sector and telecommunications, the computer sector, biological research and so many others are the desperate assessment of the French -political unculture and nonsense, certainly maneuvered by The Anglo-Saxon financial oligarchy in its chimerical quest for a world government in the service of the richest Western.

In the case of Thomson-CSF, the use of the patent on liquid crystal screens (LCD) obtained with the RCA’s buyout in 1988, was led in 1989 and the screens of the weapons system of the new generation of sub -Nuclear Machine launcher (SNLE) in 1992, were LCD flat screens.

A few years later, President Thierry Breton’s refusal to manufacture these LCD screens for nuclear power plants and CEA and then for the general public intervened as part of the privatization of nationalized public enterprises. The state no longer wanted to finance investments in these companies according to the dogmas of liberal capitalist ideology. We had to show our American “friends” and their financiers that we followed their directives or even their orders relayed by the Brussels technostructure.

These politicians by ignorance or deliberately refused to admit that the civil and military nuclear sector had been funded until 1973 by almost full currency and with treasury bills for non -existent debt. How to continue the development of this nuclear sector now with debt money issued by Wall Street and London City’s Falsers? By selling everything if possible and in the meantime, by stopping investments?

Since the end of the 2010s, losses of skills have been recognized with the exorbitant additional costs which are the consequences and with the significant weakening of our military independence certainly but also economic and political, cultural. In 2022, it was a question of power cuts during the winter of 2022-2023 while half of the nuclear power plants were stopped for maintenance which continues in particular because of the lack of experienced welders. Same for the EPR of Flamanville still not completed and operational because of the lack of skills made possible by cost minimization policies through the use of opaque networks of subcontractors who no longer knowing who is responsible for what!

Yet the transmission of skills is easy.

Still at Thomson-CSF, around 1990, the SNLE weapon system project team which had received the very first LCD screens manufactured in Grenoble, in Europe, had been confronted with a lack of skills for the stage of the ‘Integration of the weapon system.

No one in the team knew how to proceed except a young technician recently transferred to this establishment. He came from another establishment in the Paris region which had developed the weapon system of the Radar on board the Rafale planes. The project manager who remembered it left him the painting and before the engineers grandes écoles of this project team, he clearly and simply explained how an integration of weapons system takes place. At the end of the project, he was sent by his team leader to the personnel manager for his transition to the framework status and his salary increase with a question of the head of service to clarify: why was he among us ? What unsuspected luck did we have?

The answer is unfortunately classic in “conservative” French management: in his previous team in the Paris region, the leader of the project team had confiscated for him the success of his team, the honors of the general management and the press without Congratulate the members of his team in any way.

Ecoered, this young technician had decided to leave this team which would certainly be dissolved with the end of the project, and he had remembered that our establishment housed the most important computer project in Europe with the development of another system of Weapons … of which he had acquired skills for the delicate stage of the integration of the system. He then asked for his transfer from us.

The leader of the project team immediately understood what risk his counterpart in the Paris region had taken to the group by his misunderstanding behavior of manager, a risk which would have been very serious if this technician had left for a competing or foreign company. The case ended during a meeting of the scientific council of the group where members coming from our establishment asked for disciplinary sanctions against this project manager in the Paris region, sanctions obtained from the president of the group.

We are once again in the face of a choice of culture and organization of power, management, in front of our choice of civilization.

The protection of fundamental skills is therefore a crucial issue that goes hand in hand with the replacement of a full currency.

The first investment budgets funded with full money will concern skills development, that is, projects capable of raising the skills of members of the work teams. Then skills will develop new teams of life projects.

In the case of Wörgl in Tyrol, it is said that the people responsible for building the bridge did not know at the start building a bridge and yet this bridge is still there with its commemorative plaque for the use of a full currency without which it would not have been built at that time and regardless of the mistakes and the time spent so that this bridge was finally built and usable, everything has been paid in full money

III Management of solidarity, the cost of obtaining solidarity.

Let’s continue the case of this technician who brought his skills in system integration to our SNLE weapons system project team.

After the sanctions, our scientists, experts and senior managers still asked themselves the famous question: what is the use of a Human Resources Directorate if there is no forward management of staff and skills? The HRD at headquarters should have foreseen this expertise in system integration acquired in the Paris region was going to be necessary in our project team in the provinces.

In other words, and according to our own used in the Networks of Life, why is it not possible at headquarters to ensure solidarity between the Group’s establishments and the free donation of the skills acquired here and needed now there.

Of course, this requires the development of internal staff mobility, which is why the HRD was carrying out an ambitious project in this area.

Among the objectives of this internal mobility plan, based on the description of all positions, the project teams were assigned to an institution whose director had to be a former member of the HRD. He stayed on the site so that he would know the area and his services to advise the team staff and their families on everything concerning their local integration. Once the teams had completed their assignments, their staff either remained on site in a new project or transferred to another project elsewhere.

This ambitious project, even if it has probably not been fully realized, remains a course to be followed in the development of solidarity among the Networks of Life. All the more so since these institutions, these various and multiple premises to meet the needs of life project teams are common goods and no longer private properties whose cost is the burden of a private company on markets competitive in the liberal economy.

The Total Quality approach, as we have seen, aims to evaluate the cost of obtaining Quality (COQ), which includes investment budgets in production equipment, premises, training of staff, changes in the structure of decisions, etc. It serves as a basis for evaluating the Cost of Obtaining Solidarity (COS).

When the optimal solution is the subject of a donation from a project team that has developed it to another project team facing the same malfunctions or the same need, it is necessary to complete the COQ with the evaluation of the expenses and expenses that had to be incurred to arrive at the amount of this COQ.

For example, the project team spent 6 months with a Quality Circle of 12 people at the rate of 4 hours of work over two weeks, which represents staff costs (payroll + training expenses, transport, meals, etc. ) of EUR 10 000 and the material investments are EUR 15 000, i.e. a ROOSTER of EUR 25 000 for the company which obtained the optimal solution. This 25,000 euros goes for example on an automated machine to eliminate a non-quality cost of 80,000 euros during the previous year. The COQ represents 29.4% of the CNQR over an accounting year.

The B project team which receives the donation of the optimal solution will spend 4 hours to discover and understand this optimal solution with, if necessary, costs for transport, accommodation if it goes to the premises of the project team A which gives her this optimal solution and the evaluation of its rooster. Admit that this amount is 1,500 euros. The cost of obtaining solidarity is then 8,500 euros, that is to say the economy carried out by the project team which receives the optimal solution. Expressed as a percentage, the result is a saving of 85% for project team B.

This first calculation is completed with the Cost of the Reducible Non Quality which will be eliminated thanks to this optimal solution. For example, in the case of an automated machine, the cost of breakdowns, rebus, overtime, external troubleshooting, penalties for late deliveries had been EUR 100 000 over the previous financial year. The COQ is EUR 15 000 in material investments and EUR 1 500 in personnel costs, i.e. a total of EUR 16 500 which represents the investment to be made to eliminate the EUR 100 000 malfunctioning. The savings for the company receiving the donation of the optimal solution is 108,500 euros. The COQ represents in the second project team 16.5% of the CNQR over an accounting period.

  Project Team AProject Team B
CNQR
estimation des dysfonctionnements qu’il est possible d’éliminer
80 000 € 100 000 €
COQ
Quality Circle
Material investments
25 000 € dont :
10 000 €
15 000 €
 16 500 € dont :
1 500 €
15 000 €
COS0 €  8 500 €
Savings made with these eliminated dysfunctions80 000 €108 500 €

The COS represents a synergy: the donation of the optimal solution brings an additional saving according to the known aphorism 1+1=3.

In our case, for Project Team B, the savings represent 108.5% of the Cost of Non Quality Reducible. You don’t have to start looking to prove that it’s expensive, too expensive!

That’s as much cash as Project B won’t have to use. And that’s all good reason for each project team to take an interest in what others are doing and seek out a COS. When a COS is not possible, it is because the malfunction or the need is new. The political institution then knows that it is necessary to allocate additional resources to its project team in its Total Quality approach.

Networks of Life do not use a tax system to transfer income from private property to collective state property

The current calculation of GDP to evaluate the growth of an economy by adding up the positive activities and the activities that are the consequence of accidents, risks that have been poorly managed is not appropriate.

By contrast, the calculation of the SOC (Cost of Obtaining Solidarity) is a far more relevant and judicious indicator for measuring economic development towards prosperity, flourishing civilization.

The increase in the total amount of COS achieved through the various Life Networks reflects the level of knowledge exchange achieved and consequently also the level of increase in skills made possible through the Total Quality approach used for all human activity.

As we have indicated in presenting this Total Quality approach, it finally makes it possible to eliminate malfunctions in areas deemed unproductive or too costly by the leaders of the liberal capitalist system and the Anglo-Saxon financial oligarchy, especially in the fields of energy, environmental protection, the fight against climate change, in the field of survival in the face of natural or life-related disasters of our planet, in the current fields of public services that the financial oligarchy is constantly trying to privatize by imposing its budgetary austerity programs with its debt money.

Eliminating causes of pollution that result in long-term or degenerative diseases for billions of human beings, of course, will result in a huge, gigantic total amount of COS. Inevitably, this Solidarity in the Networks of Life is the ruin in the opposite camp of the richest among the liberal system and the eradication of the inequalities caused by the functioning of this system of power.

Solidarity is no longer an ideal, a myth or a fiction, the words of philosophers or intellectuals in need of foggy or foggy humanism.

The poet who had the courage of cowardice to go and study the industry practiced the Total Quality approach, participated in an internal mobility plan based on a forward-looking management of skills and expertise of world-class level, carried out aid and relief actions for employees in need or hit by accidents of life. He spent hundreds of hours and more talking to them or them.

The poet doesn’t care about the dreams of a lone walker. The initiatory and spiritual approach is only a more or less spaced sequence of actions in which life, death intermingle to go ever further in this life outside the limits of our carnal body. The solidarity that is exercised in this spiritual approach and that we will address in due course is at the origin of the conviction that human solidarity is possible among our daily activities when together we use our two sources of knowledge, our two sources of human skills.

IV Security and defense of skills

The Security and Defense of Networks of Life and the Confederation of Networks of Life, political institutions, have as their mission, among others, security and the defense of knowledge and skills. This management takes place within the framework of collective ownership with the commitment of experts in each field of knowledge and skills.

Peace plans and treaties for the defense of knowledge and skills.

We have discussed the prohibition of knowledge and skills that pose lethal risks to life on Earth, the development of dangerous viruses by researchers, whether for biological weapons or for risky manipulations of sorcerer’s apprentices, as well as for genetic manipulations of life, nuclear weapons, weapons of mass destruction of wealth, as was already the case during the crisis of 2006 and 2008.

The peace plan addressed to the organization responsible for these crimes presents the reorientation of skills and enrollment in beneficial activities for humanity and which are occasions of solidarity for the benefit of millions, billions of human beings today and For future generations. Clearly, the Confederation of Life Networks offers a sharing of solidarity that exists at home to an organization still present in power systems.

The confederation of life networks dares to stay itself, it dares to say no and it uses the assertiveness approach to start by proposing a solution. She refuses to be put into passivity or to put someone in passivity, she refuses to be assaulted or to attack someone, she refuses to be manipulated or to manipulate someone.

In the event of refusal of such a peace plan, the Confederation of Life Networks and its War Chiefs make a declaration of war to this organization to put it out of harm’s way.

For knowledge and skills useful for the development of prosperity and a flourishing civilization, when solidarity is refused in the usual context of exchanges between nations, peoples and social groups, the Confederation of Life Networks presents a peace plan that includes learning the Total Quality approach until the implementation of the Cost of Obtaining Solidarity. In case of refusal, a Declaration of War is sent to the organization that rejects the Peace Plan.

The best security in terms of knowledge and skills is their widest possible use, that is to say the highest level of Solidarity between social groups, nations and peoples.

Review internal diagnosis.

The Forces presented in the use of a Full Currency are numerous and present at each level of resources.

The functioning of the creation of a Positive Monney is known and recognized as leading directly to prosperity, a level of development far superior and sustainable compared to that of growth measured by GDP in the liberal capitalist system of power.

The Positive Monney is easy to use especially when the work is organized according to the Total Quality approach to evaluate the COQ which allows to eliminate a malfunction or meet a new need.

The rise in the level of skills obtained through Total Quality is extended through the development of Solidarity.

The results obtained with a Positive Monney allow synergies to be obtained through the economy of the Gift, free exchange of an optimal solution with social groups who face the same difficulties or have the same needs.

The weaknesses of a Positive Monney are rare, they depend on attacks against the political, economic, social, cultural relations developed in the Networks of Life and the inadequacy that could be found in the Security and Defense of the Networks of Life.

These attacks concern the present or future threats in the external environment of the Networks of Life, that is to say present in the functioning of the systems of power, especially in the liberal capitalist system led by the Anglo-Saxon financial oligarchy. But the liberal capitalist system also has weaknesses that are then opportunities to use a Positive Monney in the Networks of Life.

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