In this edition
- October 2016 Tour Report
- 2017 June Workshop in Greece
- Global monetary system is headed over the cliff—An Open letter to Jim Rickards
- Solar Dollars
October 2016 Tour Report
During my October 2016 tour, I gave three presentations in Kuala Lumpur, Malaysia and was a panelist at the Mitzas Festival in Sardinia, Italy. Two of the Malaysia presentations were at the International Forum on Inclusive Wealth, and the third was an extended presentation and discussion (on October 10) at the Institute of Advanced Islamic Studies titled, A World Without Money and Interest: A pathway toward social justice and economic equity. The latter can be seen in its entirety on YouTube at https://youtu.be/8BejigzDAVY. The audio only can be found here, and the slide show used in my talk can be viewed here.
2017 June Workshop in Greece
It’s time to get on board for my 2017 summer workshop, Monetary and Financial Innovation for the New Economy. The workshop will run from 16 to 23 June, 2017 at the Alexandros campus of the Kalikalos Holistic Summer School on the beautiful Pelion peninsula in Greece. This is a chance to gain a deeper understanding of the principles of reciprocal exchange, basis of currency issuance and credit allocation, and to engage with like-minded peers to explore innovative designs and strategies for their implementation. All of this while enjoying gourmet quality vegetarian meals, fresh mountain air, and Aegean beaches at bargain prices.
I will again have the assistance of Matthew Slater, and there will be a guest appearance by Prof. Jem Bendell of Cumbria University (UK).
Space is limited so register now at http://www.kalikalos.com/community/x/exchange-finance-new-economy-thomas-greco/.
If you’ve so far missed hearing about it, you might want to have a look at my Solar Dollar white paper. It describes a way to create more liquidity in a local economy while at the same time providing incentives for a local utility company to generate and sell more energy from renewable sources. Solar Dollars are a win for the environment, a win for the utility company, and a win for the local economy. The implementation of a Solar Dollar currency will involve a partnership with an electric utility company somewhere and the support of local merchants, but by issuing Solar Dollars in the way that we prescribe, their value and general acceptability as a payment medium will be unquestioned. The full description can be found at https://beyondmoney.net/2016/08/26/solar-dollars-a-private-currency-with-multiple-benefits/.
One of my long-time colleagues in Germany was so impressed with the Solar Dollar proposal that he graciously took the trouble to translate the white paper into German. We’ve retitled the German version, Sonnen-taler (meaning “sun thaler,” the thaler being a silver coin that circulated in Europe for over 400 years and from which the word “dollar” is derived). That translated document, in Word format, can be found at https://beyondmoney.net/recent-articles/sonnen-taler/; the PDF version is at http://wp.me/a43RA-Kf.
Global monetary system is headed over the cliff—An Open letter to Jim Rickards
Here is a letter I recently wrote to well-known author and investment advisor, Jim Rickards.
I’ve recently read your books, Currency Wars and The New Case for Gold. Your analysis of the global situation and financial instability are largely consistent with my own views, and your perspectives based on your high level contacts in government, banking and finance have been helpful.
I strongly agree with your conclusion that “the global monetary system is headed over the cliff” and that there seems to be, in “policy circles,” little cognizance of it or willingness to embrace solutions. Quite clearly, the control of money has enabled the centralization of power and concentration of wealth that is now reaching extreme proportions. That is why I have devoted most of my energies over the past 35 years to developing private, market-based, innovative systems for mediating reciprocal exchange and providing equitable and sustainable approaches to finance. I believe that reform of the global money system is not possible so we must create exchange mechanisms that do not involve banks nor require payment in dollars, euros, yen or any other political currency. There are established precedents that can be optimized and scaled up to eventually replace the present system that we agree is not sustainable.
In the face of imminent collapse of the global financial system it is not enough to try to preserve whatever wealth a few of us may already have, we must find ways to ameliorate the negative impacts of collapse and develop replacement systems before the crisis reaches the panic stage. The coming breakdown of global finance can also be the opportunity to install decentralized systems that are stable, sustainable, and work for the benefit of everyone. The most promising strategy in my opinion is to bring to market sound private and community currencies and to establish networks of direct credit-clearing circles that enable traders to create their own liquidity for themselves and their communities based on the real value of the goods and services they produce and sell.
Many such circles already exist in the form known as “Trade Exchanges” or “Barter Exchanges.” These enable businesses to trade with one another without using conventional money but instead by allocating sufficient credit to members within each circle to offset their purchases against their sales. So long as a business remains a member of the circle there is no need to settle their accounts provided that their balance remains within proper bounds and there is a reasonable flow through their accounts. One such trade exchange, The WIR Economic Circle Cooperative, founded in Switzerland in the midst of the Great Depression in 1934 as a self-help organization, has been operating successfully for more than 80 years (It is now called the WIR Bank and has added conventional banking services to its activities).
While your investment advice may be beneficial to the relative few who have a nest-egg to protect, survival in the face of chaotic breakdown of social, political, and financial structures (including markets), will require more comprehensive strategies based on cooperative, decentralized, peer-to-peer approaches to reciprocal exchange and finance. Are you willing to apply your significant abilities and resources to developing and implementing them? The very survival of civilization is at stake.
Snowden, the movie.
Snowden, the movie, is more than just another expose about government malfeasance. It is an alarm, sounding loud and clear that our government has gone far astray from its founding principles and Constitutional restraints. The story goes way beyond mass surveillance.
World War is Underway
Why is U.S. power being deployed to bring about regime change in so many countries, and to what end? Why is Russia being ring-fenced by the U.S. and NATO? Why is Putin being vilified in the media? Investigative journalist Robert Parry cuts through the propaganda machine to report significant unreported facts that reveal a much different picture. Do We Really Want Nuclear War with Russia? http://ccisf.org/really-want-nuclear-war-russia/
What’s at the root of the Syrian Crisis?
Leaked e-mails from the private US intelligence firm, Stratfor, revealed notes from a meeting with Pentagon officials which confirmed that as of 2011, US and UK special forces’ training of Syrian opposition forces was well underway. The goal then was to bring about the “collapse” of Assad’s regime “from within.” Read it here.
Confessions of an Economic Hit Man
Having read his earlier work, I was eager to get my hands on John Perkins’ new version titled, The New Confessions of an Economic Hit Man. In this book, Perkins adds his voice to many others in demolishing the myth of the United States being the global champion promoting freedom and democracy throughout the world. Instead, he reports how the “Corporatocracy” has spread around the world using subtle methods of seduction and cooptation to persuade national leaders to lead their people into the debt trap from which they have no hope of escape; and when those methods fail to work, threats, intimidation, subversion and destabilization follow; and if those methods also fail, more overt military interventions are employed. Perkins recalls numerous well-know U.S.-led coups over the years, including the 1953 overthrow of Iranian Prime Minister Mohammad Mosaddegh, in which the CIA has acknowledged its complicity; the 1954 overthrow of democratically elected President Jocobo Arbenz in Guatemala; the 1973 coup that deposed Chilean President Salvador Allende, as well as others. Reading this book will dispel any illusions you might still have about the purpose of more recent U. S. interventions in other sovereign countries. Besides providing a vast amount of information about the geo-political facts-of-life, Perkins’ story is deeply personal and as engaging as any well written spy novel.
Spring is the time when many forms of life emerge anew from their dormant state. The results of last November’s elections in the U.S. seem to have generated enough “heat” to stir Americans from their complacency about the state of our democracy. Let us hope that their actions will lead to better mutual understanding and cooperative actions that promote fundamental human values.
Despite the happy talk coming out of Washington and New York about the supposed economic recovery, the present economic and political order remains on course toward self-destruction. I’ve said it over and over again that the fundamental flaw is the compound interest that is built into the global debt-money regime. The fact that virtually all money is created by banks that “lend” it into circulation at interest causes debts to grow faster and faster with the passage of time. A quick glance at the timeline for public and private debt makes this obvious.
Prof. Richard Wolff, in the video below, does not mention this debt-growth imperative, but he does a good job of explaining how the governments and the central banks managed to temporarily forestall total collapse following the 2008 financial crisis, and why their actions are failing to solve the basic problem of slack demand.
We need to look beyond economic ideologies to find ways of defusing the debt bomb which grows bigger and more deadly with every passing day. A shift toward innovative, interest-free, approaches to the exchange of value and the financing of enterprise development provides the most promising route toward a soft landing. See The End of Money and the Future of Civilization.
In ancient Israel, Mosaic Law, in addition to the division of the land among the tribes and families, delineated several ingenious provisions to assure the welfare of all. Recognizing the tendency in organized societies for inequities to develop over time, it prescribed such measures as the sabbatical year, the jubilee year, gleaning and the prohibition of usury. Some of these, in some form, were carried over into the Christian era, but over time mercantile and industrial demands overshadowed social concerns. The mid-twentieth century saw tremendous gains in productivity along with renewed demands by the laboring class and racial minorities for a more just distribution of the collective wealth, but over the past 35 years many of the social programs that were instituted by governments have been under systematic attack by powerful reactionary forces resulting in massive increases in the disparities of income and wealth. These disparities bring with them increased violence, crime, addiction, and deteriorating quality of life for all.
Now, with automation rapidly reducing the need for human labor, the separation of livelihood from jobs is becoming an obvious necessity.
Here below are two pertinent videos, and this article mentions a few places where basic income allowances are being tried.
In this Fox News interview, former Ohio Congressman and Presidential candidate, Dennis Kucinich, sounds the alarm that entrenched elements in the U.S. Intelligence community are working to undermine the Trump presidency and derail his attempts to normalize relations with Russia.
When you consider the economic and financial implications of peace, it makes complete sense that the military-industrial-banking complex would fight tooth and nail to stir up conflicts around the world, which is precisely what has been happening.
Whatever we might think of Trump as a man or as a President, the people must rally to support his efforts to cooperate with Russia in quelling the turmoil in Syria and the middle-east and move the world toward peace.
It has long been evident the Greek government, over the years, has been so overburdened with debt that much of it would eventually need to be forgiven. Now, even the mainstream media is touting that as the necessary solution to Greece’s predicament. In his recent article, published on the Bloomberg website, Princeton Prof. and former IMF deputy research director Ashoka Mody argues that the IMF is to blame for Greece’s debt situation and that it ought to pull out. He proposes that the IMF’s principal shareholders — the Europeans and Americans, must “honorably accept real losses.”
But he also points out that “the IMF’s Board, over the fierce opposition of several executive directors, the Europeans and Americans pushed through a bailout program that, contrary to the fund’s rules, did not impose losses on Greece’s private creditors. The decision was based on a spurious claim that “restructuring” private debt would trigger a global financial meltdown.”
So, here we have another case of private bank creditors being bailed-out. Yes, the Greek debt must be forgiven to allow the Greek economy to recover, but the burden now falls upon European and American citizens instead of on the banks’ owners, where it properly belongs.
Following last summer’s exciting and successful workshop in Greece, Thomas Greco will again this summer be conducting a workshop in Monetary and Financial Innovation for the New Economy at the Alexandros campus of the Kalikalos Holistic Summer School on the beautiful Pelion peninsula in Greece.
[Edit:During the 2017 workshop Tom will again have the assistance of Matthew Slater and the benefit of a guest appearance by Prof. Jem Bendell of Cumbria University (UK).]
In this week-long workshop we will examine the problems and deficiencies of both conventional money and local currencies and exchange systems, and delve into the principles and practices of innovative exchange and finance.
Over the past three decades, a great many complementary currencies and exchange schemes have sprung up, gained some degree of acceptance and notoriety, then faded away. This workshop will focus in on the reasons why none of them has become a significant factor in their community economies, and uncover the principles of design and implementation that need to be applied to make exchange alternatives more effective, robust, and scalable. It will also cover new ways of providing entrepreneurs with the resources needed to bring their ideas to fruition and achieve success in the marketplace.
This course is designed especially for social entrepreneurs, government officials, enthusiastic agents of change, and serious students who are ready to co-create a new sustainable and convivial economy from the bottom up. In this highly participatory workshop, we will use a combination of presentations, discussion groups (some on the beach), videos, and simulation games, to dive deeply into the process of exploring and developing innovative methods of finance, exchange, and value measurement. Participants will have the opportunity to showcase their projects and ideas and receive feedback from the group.
Here is an opportunity to work with one of the world’s leading experts in innovative economics, finance, and exchange, and to collaborate with like-minded peers to create a new economy that works for everyone, while enjoying a delightful summer holiday on the magical Pelion peninsula. Come join us in a process of inquiry, discovery, sharing and collaboration.
The workshop will run from 16 to 23 June, 2017. Space is limited so register early at http://www.kalikalos.com/community/x/exchange-finance-new-economy-thomas-greco/.
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All the perplexities, confusions and distresses in America arise not from defects in the Constitution or Confederation, not from want of honor or virtue, as much as from downright ignorance of the nature of coin, credit and circulation. –John Adams, second president of the United States.
Just as the political monetary system trends power toward the state, so the system based on true money will release the natural forces that trend society toward private initiative, enterprise and democracy. Pending this fundamental reversal, all resistance to statism is futile. As long as the only available monetary system is political, exchange, that process by which the social order functions, will never accomplish its natural purpose, the development of prosperity and freedom.– E.C. Riegel, Flight From Inflation
Roberts says raise taxes on corporations’ offshore profits; the FED manipulates all markets, may crash the economy.
Here is another excellent interview of Dr. Paul Craig Roberts in which he outlines the political situation in the U.S, some of the prospects for the Trump administration, limits to Presidential power, and what would need to be done to rebuild the American economy.
According to Barter News Weekly, the Israeli government will now charge capital gains tax on profits made from Bitcoin transactions. here is their report:
TEL AVIV – Transactions involving Bitcoins in Israel could be treated as barter transactions, and profits from coin sales could be charged a capital gains tax.
Late last week the Israeli Tax Authority issued a circular detailing the authority’s stance on the taxation of cryptocurrencies, saying that the Bitcoins and other cryptocurrencies shall be treated as assets when sold.
Cryptocurrencies are often considered to fall into a legal grey area for the purposes of taxation, with some countries classifying them as financial instruments, or currency, or an equivalent of a currency, or an asset.
The ITA has now decided that any cryptocurrency sold in Israel shall be regarded as the sale of an asset, and, subsequently, will carry a potential capital gains tax obligation.
The profits made from the sale of cryptocurrencies will need to be declared to the tax authority.
Some experts have noted that if the currency is treated as assets, any businesses accepting crypto-coins as payment will need to treat the transaction as a barter transaction, and will be required to complete their tax filling obligations accordingly.
The treatment of cryptocurrency as an assets does not preclude any transactions from falling under the scope of the country’s VAT system.
It has been said that, “the power to tax is the power to destroy.” Well, the decision of the Israeli tax authorities to tax Bitcoin transactions as asset transfers may not destroy Bitcoin as a speculative medium, but it will surely inhibit its use as a payment medium. The money and banking cartel hates competition.–t.h.g.
This video featuring Dr. Paul Craig Roberts is a “must view.” Roberts, who was Assistant Secretary of the Treasury for Economic Policy under Ronald Reagan, explains very clearly how Greece was lured into its present predicament and made a “colony of the EU.”
If the Greek economy is to be rebuilt and some measure of Greek independence restored, ways must be found to create domestic liquidity independent of the global banking system . Domestic currencies might be issued by the national government or by regional governments, or liquidity could be created by private enterprises in the form of private currencies or credit clearing exchanges. I’ve explained in detail how this can be done in my article, 50 Ways to Leave the Euro.
Looking beyond Greece, Roberts speaks about inflation and unemployment and the true state of the U.S. economy, as well as U.S. foreign policy and the causes of the current geopolitical crisis.
Other important videos to watch are:
Max Keiser’s December 22 interview of Roberts, where he talks about Trump’s cabinet picks and relations with Russia, and
Michel Chossudovsky’s take on the “sweeping measures taken [against Russia] by Obama on December 29.”
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