The monetary system is not the problem
The monetary system is not the problem

Image: Central Bank (ECB) in the background, business bank (Commerzbank) in the foreground. Photo: Jorg Gastmann

Hardly any topic wastes so much "APO energy" Like the monetary system. A quick overview of the most important reason to get off this dead horse

The fact that the Auberparlia Lamentary opposition (APO) reaches so little in Germany is mainly due to their deservation. If you want a change of our economic system, you should see everything from the Sherlock-Holmes method, which is not the addressed problem, is not implementable or is not polarity. Among the remaining alternatives must then be the solution – if there is one.

"If you discover that you are a dead horse riding, get off." (Wisdom attributed to the Dakota Indians)

To simple considerations, wrong conclusions

The scissors between the arm and Reich rubs systemally and further. If this problem is not solved, the social and economic collapse is inevitable. More and more people turn away from the simulation of a democracy, which has always resulted in political / social catastrophes in history.

Money system critic faith to have found the cause of Dafur in the monetary system. If you have replaced money through water in an analogy, money system critics were claimed: that a small minority of people owns their own sub-water lakes, while billion people are thirsty or even more than those lies on the properties and sources of water. Therefore, water water come from a single, central source, and the problem is solved.

Among the monetary system critics there are various camps: many call for gold cover. Most demanded as a central source of all money a central bank, which requires one of their politically independent lead, and the others the exact opposite, namely the directive under the democratic control of a parliament.

Thus, they ignore the actual cause of drawing the scissors between the arm and rich: the permanent redistribution of ARM to Reich by different types of profits, especially consumers to capital owners. Where capital owners always wire coarse and more meaningless, which they can never consume. Loan interests are the least important type of redistribution by profits, and especially in times of low interest rates negligible. "Bond" is not a problem, but a hoax, as we will see in Part 2.

Money, exchange and star trek

Many monetary system critics are as angry as religious people if you are in question your beliefs through facts and logic. Anyone who has worked with the monetary system must therefore first recognize the definition of the three characteristics of money: money is a shower, which also serves for value supply and as a price mab.

Exchange means: you do not exchange goods and services against other goods and services, but puts the exchange in between. Administrative remedy means: one conserves a replacement device for its goods or services (work), which can be exchanged for any other time against other goods or services. Price mab means: Every product and service is associated with a price in the form of monetary units, which can be easily and efficiently calculated.

Many money system critics want to replace money through something else. However, all the money is what the three properties mentioned above is accepted and accepted as a means of payment, be it munzes, shells, stamps, cereals, tulip mania crypto-"Respect", Coupons or Communist rubber points for work hours.

Without money as a universal conversion unit, we only remedy the exchange trading, which would wish you want the money system critic who want to abolish money. With that happen to us like "Hans in hapiness", The after different exchange handling from a gold lump over horse, goose and stone loses all through suboptimal exchange and loses the loss. Bad concept for retirees: Who has nothing to swap, had to die.

How can operations have their many different precursors in the value chain by exchange? Not at all. How and with what time required and what warehouse capacity is supposed to settle handlers at the cash register, when money-free consumers want to swap used well on the other hand? The effort and inefficiency were so high that all product prices were priceless and we did not fall back to the Middle Ages, but in the time before it gave money. So in the Stone Age, in the Jager and Collector several square kilometers forest area per person to survive. Since one can serve billions of people only with an efficient economy, the abolition of money to the apocalyptic dystopia with at least 7 billion dead drove.

Other monetary system critics dreams of a star trek society that allegedly works without money. What is inaccurate. As someone who has seen all the consequences of all star trek series and films, I can only find that salary payments to members of the Starfleet were never addressed. Money, on the other hand, was in virtually every sub-mission as soon as you wanted to acquire a good locally. How the energy and the raw materials of replicators and drives have been procured was never a topic, and in quarks bar on Deep Space 9 certainly nobody received his drink by the Starfleet without the payment "gold-pressed latinum". How the economy worked in the Starfleet has never mentioned Star Trek Schopfer Gene Roddenberry. In it a money-free, radical-communist society to interpret and restart Star Trek as proof of the feasibility of a money-free company, has no basis.

To the three properties mentioned above of money is a fourth for money working: money is a social and political agreement. Legal means of payment is only what has defined political guided by law as such – be it tribal general, democratic parliaments or dictators. The agreement will be legitimate and real by the company seeing the benefits and accepts the means of payment: each employee, entrepreneur and landlord accepts money, precisely because there is only a legal, universal cash.

Regiononey, complementarials

A regional and insignificant money variant is the regioney, which is usually accepted only when coupled to a legal true and is interchangeable. An acquaintance of me is with initiator of the regieponey "Volme Taler" in Hagen. As a complementary maintenance, it contributed a little to the increase in local revenues and collapsed, as too much of it collected at the only gas station that could not pay for the refinery.

The most successful complementary preservation in the German-speaking area, the Chiemgauer, is a translation unit for work, which were otherwise voluntarily paid by coarsely part. As the list of principal billing stations shows, the participants consist mainly of schools, community associations, sports clubs and counseling centers. Industrial, trading companies or craft companies do not contain the published list of participants. The average turnover per participating clearinghouse (business can not really name them) is almost 27 € per day. With 900.000 Chiemgauer had reached the upper limit of acceptance, currently only a money amount of around 700 is.000 units in circulation.

No complementary disposition of the world has ever managed to fuel more than a small regional niche for a monetary exchange in the non-profit area. As a money for a superregional economy and the clearing of industrial products, they do not favor because this requires general acceptance and amplitability throughout the test room.

Another weakness of the Chiemgauer, which prevents his acceptance, is its characteristic as "circulating protection". With almost 6 percent year minus interest, possession will be punished to force it into circulation. After 4 years a chiemgauer is even worthless.

Freight, the "wonder" From what and minus interest

With the Chiemgauer we are in the quite interesting and charming idea of the "Freelance" or "Declining" by Silvio Gelgel, which in 1932 in the Easter Rich village of what (at that time 4.200 inhabitants) for a recovery caused the pendant as "wonder" describe.

Like Ulrike Herrmann in Chapter 15 of your book "The victory of capital" noticed, here was not the minus interest of cash crucial, but "that the municipality forg does not divide anymore, but unemployed to build a bridge and lay channel tubes. So these income, which they could then carry into the tavern or in the shoe business. The community had also achieved this effect if she had recorded normal loans to manage unemployed. Important was the demand, not the brand (minus interest) on the money." The only beauty error of this analysis: The community probably did not receive loans.

There is a touch of realization experience with the introduction of minus interest by the ECB and the transfer of minus interest of banks to savers. The most drastic is currently the Volksbank Magdeburg: on all credits above a free charge of 25.000 Euro are charged by penalty interest. The reaction of the burger on penalty interest for credit is clear:

The customers raise all money over the allowance in cash or distribute it to several accounts at several banks. In the newspaper "The world" 878 to 64 readers of sharp conviction of minus interest rates for bank customers. Mini interest rates on money are not majority. An implementability requires the abolition of cash. This will not happen to my view, because a party that wants to abolish cash will probably exist for lack of elections and members of the.

For the purpose of majority arance, the trail of the circulating money is said to be exceptions: Who creates his money on passbooks or in real estate, securities or other corporate investments, can handle the money. However, through these exceptions, the circulating money loses the big part of its effect because cash is only about 2% share in the total vertical benefit. If the circulation protection is supposed to develop its effect, the entire money must be forced into the circulation – so also the money on passbooks, giro and fixed deposit accounts and also all other savings as well as shares, treasury letters, pension funds, equity funds and life insurance.

Since this is not to be made with the savers, the question arises for a separation between austerity migration and liquid. But how should you define that? Should man savers, which provide with equity funds for their age, for the "Hatung of investments" punish by securities "rot" leaves?

What was not relevant in the village for lack of in the absence of the economic level in a globalized world looks quite different: Everyone can shift their cash at any time into other wealthy species, relocate to foreign accounts and bypassing the circulation backup very easily.

To the "Refatting money" From Silvio Gesell, all three criteria for economic ideas are missing: it is not majority, not feasible and lost the addressed problem. With free money we are at the next aspect, the monetary system criterion:

Money can only be knocked out of nothing

Money is knocked out of nothing. Constructing money system critic an alleged problem. What you talk about: Money can only be knocked out of nothing. Otherwise it would be no exchange, but a raw material. If it was a raw material, he had to be scarce to develop the psychological effect of a high value. If the raw material is scarce, he had to get compiled, grotesk high and completely artificial values associated with the global money amount of translated over 90 trillion dollars, as we will see the next point.

The money pocking is no monopoly of central and business banks. Everyone can fop everyone. Private from the non-shooting money calls itself and is regulated in the alternate law. The hook when changing is that everyone is allowed to accept and pass on, but almost no one wants to accept them.

Regional money, which basically is a variant of the change, is not due to the low acceptance privately clamped money from its niche or. Region.

Gold cover: neither possible nor necessary

Has to be covered money that comes from nothingness? And if yes: what causes?For many money system critics is the lifting of the gold-"cover" from 1971 the causes of monetary policy. They look the reason that says about it:

There is not taking so much gold as to the entire money rate of the world "cover" could. Until 1971, there was the gold binding of the dollar (and thus indirectly also for all the respect for him coupled to him). That’s what the nominal value of US dollars was theoretically the equivalent in gold from the US government / Fed. In 1971, the US government found that it was no longer enough gold in her tresors to maintain this fiction. That raises the question: how much gold did one need to get everything "cover"?

In this statistics of VisualCapitalist.COM can be found a snapshot of the year 2017. The immediate cash or giral money included $ 36.8 trillion. Including money market funds, fixed deposit accounts, passbooks etc. Enclosed the global money amount 90.4 trillion dollars. The entire 187.000 tonnes of gold, which were brought in human history, have a market value of 10.2 trillion dollars today (Marz 2020). The proportion of central banks at the gold quantity is only 15 percent of the amount of gold. The rest is not available because it is privately owned as gold jewelry, munzes, tooth gold or ingot, or because it landed in industrial products such as gold-coated electronics contacts on the mull.

This is called: The gold price of the existence of central banks had to rise about 90 times to increase the money "cover". If you were confiscated to all gold jewelry, all gold tooths and all munzes and ingots of private individuals (not really majority), one had to inflate the imagination price for gold for about 30 times to the illusion of one "cover" to create.

The gold overholding has no rational but psychological causes. Gold is mainly used in people who have seen too many pirate films. Revealingly, as well as nobody calls for a "cover" Through even more rarer and more precious things like platinum or hand signed Beatles records. Warren Buffet said dry and factual: "It is somewhere out of the earth, melts it to ingrates and buries it in a safe."

Chapter 10 "gold? No thank you" Your book "The victory of capital" Ulrike Herrmann is dedicated to the irrational goldwahn just the German, which were traumatized by the 1923 and 1948 inflation and, for example, 2012 whole 110 tonnes of gold bought, during the French only 3 tons bought. Herrmann determines: "That gold is scarce, nothing needs to mean. … the gold market product broke collapsed, if not at least Indians, Chinese, Turks and Arabs were holding to consider gold jewelry as a status symbol. … as soon as only a central bank starts to dissipate their passes, the market was collapsed and the gold price into nothingness." Hermann noticies the irony that people from mistrust against the monetary policy of the central banks of gold hoarded gold, which are just the central banks, which keep the gold price by a sales ceiling of 400 tons per year in a year.

Crash prophets preach gold as rescue before the supposedly approaching economic world. Often they act with gold. However, who believes he can wear with gold in front of the economic zombie apocalypse, because money became worthless, mistaken in multiple terms.

Without a uniform universal cashier in sufficient quantity, the supply chain was immediately collapsed from the demand of raw materials on processing to products to trade on each stage. There was nothing left to buy in the shortest time. As long as there was something to buy, gold uses nothing, because the trade itself even in the smallest punches in which gram fractions in credit card gravity conservation, neither the authenticity told nor determine the current value or change money. Even if the possible goods, hungry people were intercepted by the gold owners on the supermarkets to take them off the purchase. And just overlook Gold Owner that in history states in crises usually all private gold confiscated to stay even as long as possible action, which works only for a short time.

In short, gold can not save anyone. Its requirement is an environmental catastrophe based on ubiel exploitation of (children) workers. To quote Ulrike Herrmann: "Even the ancient Greeks knew that the value of gold is largely imagined. … gold does not scare. It only looks like this."

the "Gold cover" So it was always factually unfounded and the desire for purely psychological, irrational phenomena. Money is always covered by the goods and services that you can buy Dafur. Since all employees, companies and landlords as well as the state accept the legal means of payment, the monetary system works best. All the problems of capitalism who want to attach money system critics to the monetary system have completely different causes.

Continued in Part 2: "Full money", Giralgeld, helicopter money, "Bond", Interest and a conclusion.

About the author: Jorg Gastmann is a book author and speaker of the NGO Economy4Mankind.Org, which represents the alternative economic system Economic Balance System.