** 7 October 2014: The concept described in the following essay has since been developed further — visit beta website deror.org for more information.
“To radically shift regime behavior we must think clearly and boldly for if we have learned anything, it is that regimes do not want to be changed. We must think beyond those who have gone before us and discover technological changes that embolden us with ways to act in which our forebears could not.”
– Julian Assange, Conspiracy As Governance (2006)
There is nothing more dangerous than personal initiative: if it has genius behind it, such initiative can do more than can be done by millions of people among whom we have sown discord.
– Protocol V
Are you seeking profit, or protection from the storm? This is not for you. Are you here because misery loves company, or to impress with wit? This is not for you.
This is written for those who have moved to a place beyond fear, and preservation. Beyond greed, and accumulation. This is for those who have moved beyond, to a place the Sovereign Man knows not of.
It is the place where un-selfish thoughts roam freely; where the forces of greed and fear are “not of this world”.
If you are seeking comfort in confirmation of existing ideas and beliefs, then I encourage you to look elsewhere. Here you may be challenged to reconsider. To research and study. To think outside the square. And to take uncommon action.
In the introduction to the movie V For Vendetta, we are reminded that “an idea can still change the world”. I will share my idea to change the world with you today. I hope you may have an even better one.
First, an apology. The basis of my idea challenges common precepts that you may hold as gospel truth. In the interests of brevity I cannot author a supporting thesis. So I encourage you to simply adopt a certain mind-flex; to entertain the underlying rationale for the moment, in order to consider the main idea in context.
My idea will particularly challenge those who conflate the concept of a “currency” with a “store of value”. We have been trained to do this. We have been taught to identify both of these different concepts, with the singular label of “money”. This is the first and greatest delusion to be overcome. If “money” is ever to be made a servant of mankind, and not continue to be his master, then we must begin by taking great care to distinguish clearly between “money” as “store of value”, and “money” as “currency”.
A “store of value” can be anything real, tangible, and (in relative, human lifetime terms) lasting. Gold, silver, some art, property, gemstones, all these and more may be considered a store of value.
A “currency”, by contrast, should serve only as oil for the wheels of the economy. To aid the proper, efficient, and right moral function of commerce and industry, in its pivotal role within civilised human society. To achieve this, our chosen form of currency should have no intrinsic value whatsoever. Moreover, in the interests of true social justice, the ideal form of currency should be destroyed at a modest, fixed annual rate. Why?
For an in-depth understanding of the answer, I encourage you to read up on the concept of Freigeld (“Free Money”), as elaborated in the Natural Economic Order by Silvio Gesell. Before rushing to dismiss this little known genius as some kind of crackpot, you may first wish to consider carefully the profound success of Gesell’s demurrage currency concept during the Great Depression. The Miracle of Wörgl, Austria is an excellent example. You will also discover how this alternative monetary “experiment” was promptly shut down; tellingly, at the behest of the Austrian Central Bank. And how American economist Irving Fisher unsuccessfully petitioned Roosevelt to implement a similar monetary system, as a solution to America’s woes in the Great Depression.
The reason why a demurrage currency is essential for true social justice is this: The product of labour – the sweat and effort of ordinary people – is subject to the natural laws of entropy. The farmer’s produce spoils. The manufacturer’s product too has a “shelf life”. It deteriorates, or is superseded. The product of labour is compelled by the natural laws of entropy to find a buyer promptly. If it does not, the producer – who has no personal use for surplus – inevitably suffers loss. He wears the “carrying cost” of deteriorating product if it remains unsold.
The possessor of currency, by contrast, has an unfair advantage, if his currency is not likewise subject to entropy. Simply by means of the unspoken threat to “shut his wallet” and withdraw temporarily from the marketplace, taking his non-deteriorating currency with him, he may force the producer – compelled as he is by the law of entropy – to lower the price of his ever-deteriorating goods.
This is the inevitable – and inequitable – consequence of adopting a form of currency that can also be perceived as a “store of value”. The Supplier of currency (the buyer) is granted an unjust and unfair power over the Demander of currency (the producer/seller). The very form of currency itself naturally encourages its possessor to mistreat and humiliate his fellow man, by taking advantage of the relative weakness of his bargaining position. And arguably worst of all, the one who is disadvantaged is the producer of goods. The engine, the very heart and soul of commerce and industry. Simply by virtue of the possessor choosing to “save” his currency – since he also perceives it as a “store of value” – the producer is forced by necessity to continually and ever more urgently lower the asking price for his goods, until the point at which the possessor becomes willing to enter the marketplace and buy. While many may see this as “good business” or “driving a hard bargain”, it is hardly “to love thy neighbour as thyself”.
In the people’s NWO economy, there will never be a shortage of oil for the wheels of commerce. Neither will there be an excess. As with your car, too little and too much oil both are highly damaging. One starves the engine of lubricant until the mechanism seizes. The other causes a build up of excessive pressures, until the weakest part blows.
If you will accept this basic premise concerning a “natural currency” – even just for entertainment purposes for now – then the rationale for my idea will follow.
Before introducing it however, a disclaimer for context. I am vehemently anti debt, and anti usury. Since early this century, a significant proportion of my own modest material net “worth” has been in physical gold and silver bullion. Stored beyond the reach of the banking system. Yet, this choice is predicated by external circumstance, and not by ideology. My research leads me to conclude that gold and silver “bugs”, “sound money” advocates, and “Constitutional money” proponents, are all most subtly, yet most profoundly, deceived. There is a very logical and ancient reason why ancient occult (secret) society symbology is a persistent feature of the founding relics of the USA, of Washington DC, and indeed, of the Federal Reserve Note. To return to a precious metal standard would achieve nothing more than to take one small step backwards – straight into the previous stage of the monetary trap laid for humanity by “the powers that be” (TPTB) over many centuries.
I believe that the current system will collapse. By accident, or by design. Waiting for it, and scheming/hoping to profit during or after the collapse, is a fool’s game. Those who pull all the monetary strings, who have this exclusive “money issuance” power over us now, will have it then too. Only more so. Because whatever system is suggested by the authorities to replace the present one, you may rest assured that it will be their system. Of their design. For their benefit. Ordo ab chao – Order out of Chaos.
Unless We The People beat them to it. By introducing our own monetary system. Not by waiting on “democracy” so-called. By exercising our “dangerous” personal initiative.
My idea for a new monetary system, to undermine and ultimately take over from the collapsing present order, is simple. Build a complementary currency system. Starting right now. One where you, me, and every participant assumes the basic human right to become their own central banker.
After all, if it’s ok for a tiny minority to create their own currency out of thin air – and then enslave us for the privilege of using it – then what is to stop all of us – the great majority – from simply going out and doing exactly the same thing … but with un-selfish intentions?
Here’s how I picture NEO – a Natural Economic Order for the digital age, and a true people’s currency. Imagine some genius has exercised personal initiative, and created an encrypted software program that you can download. It functions using peer-to-peer networks (thus, that much more difficult for TPTB to close down). Let’s imagine that it is called “Jubileeus”.
The Creator.
And the Deliverer from debt slavery.
Using this program, you can create your own digital currency, right out of thin air. Just like the central banksters. There’s no cost. No fees. No interest charged. Ever. But (unlike the banksters’ system) there are encrypted, pre-programmed limits and conditions. To ensure the system is functionally stable, and socially just. And most importantly, to encourage right behaviours that are conducive to a stable, just, and equitable society.
You choose the initial amount you wish to create. This will be your positive bank balance, denominated in “Jubileeus” currency. When you create new currency, you will automatically have a second, linked account too – showing a negative balance, in the same amount. That’s because you have taken up the solemn privilege – a future Human Right – of creating your own “credit” for yourself. In other words, you “borrowed” currency out of thin air, to aid your dealings in the marketplace. But that’s ok. Everyone should have appropriate access to (not free “money” but) free currency. So that everyone is empowered to contribute equally to oiling the wheels of commerce and industry.
In most respects, this currency system functions just like the familiar cash transaction (ie, positive credit) and loan accounts that you might have with your local bank. Spending your Jubileeus to purchase goods and services will decrease your positive bank balance towards zero, just as you would expect. When you sell something, or otherwise earn more Jubileeus, there is a subtle difference though. You do not have a choice to not pay down your negative (“loan”) balance first. Why? The system designer believed it best to encourage people to learn to reduce their negatives, before giving thought to increasing their positives. So any Jubileeus received automatically pays down your negative balance first, reducing it towards zero, rather than simply increasing your positive balance. Having any income automatically applied in full to your “loan” account first, will create no hardship for anyone – if you are ever short of currency in your positive (“credit”) balance to pay the bills or buy groceries, you simply “borrow” (ie, create) some more currency.
I suspect that there are “sound money” advocates screaming about now, that such a system is ignorant, insane, and doomed to failure. For many there will be an automatic negative emotive response, because even this kernel of the idea instantly evokes the spectre of free, unlimited “money” supply, and fears of hyperinflation. Doubtless some will be recalling the many historical incidents of excessive currency issuance by spendthrift dictators and politicians, and recoiling in horror or laughing in derision. Patience, friend. Your fears will be addressed by the end.
Two points to consider. First, the fact of excessive currency issuance in the past does not logically necessitate tying currency issuance to physical commodities (eg, gold/silver). In point of fact, doing precisely this has been the first stage tactic employed by TPTB over many centuries for gaining control over kings and peoples. Linking currency issuance to a physical commodity does not limit your ability to expand or contract the total of available currency, if you already control the stocks, and/or the supply, and/or the public reporting of reserves of that particular commodity. On the contrary, encouraging, coercing, and/or bribing kings and politicians to pass laws linking currency issuance to a commodity that you already control, actually increases your ability to manipulate the currency irresponsibly, fraudulently, or indeed, nefariously. It provides another layer of deception. Another curtain behind which to hide, while you pull the levers of power.
Secondly, you are quite correct. Excessive currency issuance is indeed a real danger to be avoided. Too much oil in the car eventually blows up the engine. The question is, How to avoid it? Historical precedent suggests that the real challenge lies not only in the form of currency chosen, but also in the matter of Who has power to control its issuance.
Our “people’s currency” could address this danger simply and effectively, by way of a built-in, automated Honour rating system. Don’t laugh. I’m serious.
Let’s imagine again. You’ve downloaded the Jubileeus software. You decide to create an initial “loan” to yourself of 50,000 Jubileeus. You now have a positive “credit” balance of 50,000, and a negative “loan” balance of 50,000. The system automatically flags your account with a publicly visible Honour rating. Of just 50%.
Every time you conduct a peer-to-peer transaction with another participant, they can see your Honour rating before proceeding. And just as with eBay’s feedback system, some will decline to trade with you if they have doubts about your character, integrity, and indeed, your honour, as implied by your Honour rating. In the people’s NWO of the future, in light of our experiences of the terrible outcome of permissive attitudes to financial corruption, immorality, selfishness and fraud, I suspect that any question mark over your financial “honour” will weigh far more heavily on others’ thoughts and social consciences than we have seen in recent decades. Having an Honour rating of xx% or worse may result in your becoming a pariah in a society that has, through great pain and suffering, come to see the value of a strong social conscience.
The automated Honour rating system therefore encourages you to carefully consider whether you really need 50,000 Jubileeus. After all, are you really going to spend it all now? Since you can create currency for yourself whenever you need it, perhaps it is wiser to just create an initial balance of 5,000 Jubileeus. And have a 95% Honour rating instead.
How do you improve your Honour rating? Go out and work. Create something. Build something. Sell something. Ask for payment in Jubileeus. After all, every other guy can also create new Jubileeus to pay you with. (Just as in Wörgl, Austria, how rapidly might Depression-level unemployment rates fall towards zero, if everyone had access to a free people’s currency such as this?) As you earn more “money” currency, your negative balance is automatically reduced, ever nearer to that perfect zero point. And your Honour rating improves accordingly.
The zero point is perfect? Yes. Having zero represents the perfect moral and social position on personal use of free currency. And the only way to have a 100% Honour rating, is to have a zero bank balance.
Just because you may completely pay down your previous (interest-free) “loan” balance – or, perhaps you never needed one – this does not mean that it is ok to start hoarding currency. It is the oil on the wheels of commerce, and is supposed to constantly circulate, remember? By hoarding currency, you are indulging in anti-social behaviours. You could and should be passing currency ever onwards, in exchange for the fruits of others labour, thus doing your part to provide employment and opportunity for all your fellow men. If you truly have no need or desire for more of others products or services right now, then you could and should be investing for the longer term. Perhaps in dividend-paying shares in a sound and ethical public (or private) company. Or, perhaps simply in a true “store of value”.
So in the same manner as a negative balance, a positive balance is also penalised automatically with a reduced Honour rating. Should there be a difference between your positive (“credit”) balance and negative (“loan”) balance, then the Honour rating is based on the larger – thus the “worst” – of the two balances. For example, if you have 10,000 in positive, along with a 5,000 negative balance, your Honour rating will be 90%. Not 95%. But pay off your 5,000 negative “loan” balance with 5,000 from your positive “credit” balance, and you will be rewarded with that 95% Honour rating.
Finally, what about the demurrage aspect? Recall that our basic premise is that the ideal “people’s currency” should be designed to automatically deteriorate if not used to conduct transactions. Gesell’s original innovation of applying a “carrying cost” to currency – hence Stamp Scrip – is the primary means to encourage proactive circulation of currency rather than hoarding. (My Honour rating idea is supplemental, but importantly, it also serves to discourage greed in the initial act of creating new currency by appealing directly to our sense of public reputation, personal integrity, and self-worth).
How do you make a purely electronic currency deteriorate? I imagine some genius out there could simply pre-programme the software to automatically reduce all account balances – positive and negative – towards zero by a fixed percentage, calculated weekly and summed since last log-on. How much should this fixed percentage be? Gesell advocated an annual “carrying cost” rate for currency of 5.2%, or 1/10th of 1% per week. I have no idea if this is an appropriate figure – though it would appear that it certainly worked a treat in Austria until the banksters had it shut down. Perhaps some free-thinking economist (oxymoron?) will read this, and be interested enough to research and offer advice.
Once again, the system encourages you to use your Jubileeus. If you have it and don’t use it, it slowly but surely fades away. Back towards the zero point.
Such a system not only encourages productivity (ie, hard work). It encourages creativity and innovation (ie, what new product can I make? what new service can I offer?).
It eliminates poverty. No one need ever again have insufficient “money” to purchase the basic necessities of life, when every person is their own central banker.
It also applies natural limits to global “growth”. And thus, to the impacts on our environment and natural resources.
Under a Jubileeus system, no longer are there cabals of greedy banksters’ creating endless “credit” – at interest – in order to finance the Ponzi scheme of “capitalist” perpetual economic growth. And enslaving humanity to debt servitude in the process.
Instead, Jubileeus means that “growth” is naturally limited by the total number of human beings on the planet, multiplied by the sum of their collective willingness to “Honour” each others’ Jubileeus. Not only are there pre-programmed rules on the amount of currency that an individual can create. There is also a natural limit on how much public “disHonour” that people are willing to take upon themselves by creating more currency than they actually need at any time. And, there is a natural limit on how much “disHonour” that people are willing to accept in others, when choosing whether or not to buy or sell with other individuals.
Jubileeus means a true declaration of individual independence from those who control each and every one of us, through their exclusive control over the creation, and issuance, of “money”.
Jubileeus means that every day, is independents’ day.
There you have it. That’s my Big Idea. I hope it inspires you to think about what is really happening to us all, and what (if anything) you are going to do about it.
For my part, I look forward to reading your thoughts, constructive criticisms, and insights. Because I’d like to do something more than just ponder all this. I’d welcome contacts from any who may be of like mind, and wish to get involved in a real project to bring this idea – or something better – to fruition. Truth be told, I have the time and motivation, but lack the necessary technical skills to realise this alone.
I’d also welcome feedback from anyone who may be inspired to independently try something similar.
There’s plenty of alternative currency ideas out there – the Ripple Project, and more prominently Bitcoin, are two that spring to mind.
There’s also free-spirited genius software developers such as “Jaromil“, who has developed a tool that allows you to connect your computer with your neighbours – essentially bypassing the telecomms infrastructure – using the wireless card in computers and creating an effective “new net.”
Just imagine the revolutionary power of such brilliantly simple low-technology – combined with any number of possible hardware solutions such as One Laptop Per Child, or even just reuse of abundant, “redundant”, discarded-but-functional Western consumer PC hardware – in helping every human being worldwide, especially in developing nations, to each become their own central banker too.
Imagine too, the effect of such a system on human relations and solidarity. In Jaromil’s Dyne:Bolic example, you become reliant on your neighbour to break out into the network. Inherent in this system is the expression of “love thy neighbour” – we must share, before we can benefit. Imagine how we would all feel about our neighbours, if they were the only way we could connect to (and buy-sell with) the rest of the world.
There’s also the grassroots network of hackers at ‘digital foundry’ dyne.org, and the researchers and developers at dyndy.net. These are all doing sterling work as they “Imagine the Future of Money”.
Unfortunately, in the words of Henry David Thoreau, “There are a thousand hacking at the branches of evil for every one striking at the root”. My research suggests to me that all the complementary currency systems currently out there are flawed in key aspects, and so represent a less-than-ideal solution if we are to have a sustainable, tamper-proof, boom-and-bust proof, truly egalitarian system of free “money” to serve the human race. But that’s just my viewpoint, and I wish everyone the best who may have a mind to try setting up a new and better currency in competition with TPTB.
The system that I have proposed here, a “mutual company” so to speak, or a “commonwealth of stewardship”, represents a singular threat to the #1 weapon which those who would continue to reign over us possess.
Fear.
Their current plan to address the fear of global systemic banking risk – a fear which they have created through control of the boom-and-bust “cycle”, of which the GFC is only the most recent example – is to divorce the transactional currency system from the store of wealth system.
This is precisely what my idea would achieve … without the centralised control.
Mervyn King, Governor of the Bank of England, gave a speech at the Buttonwood Gathering in New York on October 25, 2010. His speech was titled “Banking: From Bagehot to Basel, and Back Again.”
Here’s an excerpt from the speech (emphasis added)*:
Another avenue of reform is some form of functional separation. The Volcker Rule is one example. Another, more fundamental, example would be to divorce the payment system from risky lending activity – that is to prevent fractional reserve banking (for example, as proposed by Fisher, 1936, Friedman, 1960, Tobin, 1987 and more recently by Kay, 2009).
In essence these proposals recognise that if banks undertake risky activities then it is highly dangerous to allow such “gambling” to take place on the same balance sheet as is used to support the payments system, and other crucial parts of the financial infrastructure. And eliminating fractional reserve banking explicitly recognises that the pretence that risk-free deposits can be supported by risky assets is alchemy. If there is a need for genuinely safe deposits the only way they can be provided, while ensuring costs and benefits are fully aligned, is to insist such deposits do not coexist with risky assets.
Straight from the mouth of Bank of England Governor, Mervyn King. Separating the “store of value” system, from the “currency” system. In its effect, precisely what the system I propose would achieve.
But with the banksters still in control of both systems.
Unless We The People beat them to it.
But first, we need to wake up.
We need to understand the true and proper nature of “money”, and “currency”. So that we are not hoodwinked by the next stage of the global bankster scam.
Many are aware of the evils of “fractional reserve banking”. And it is these who will be the first to sing “Hallelujah!” and fall for the trap, when TPTB suggest doing away with fractional reserve banking as a “solution” to the global systemic banking crisis that they have created.
The only way that “money” can truly be rendered a servant to mankind, is with a decentralised system.
One that no one controls. And every one shares.
A “Natural Economic Order”.
With the writing on the wall ever clearer, and financial doomsday drawing nearer, I honestly reckon that we all have little to lose – and everything to gain – by trying to exercise some “dangerous” personal initiative.
Will yours be the one with genius behind it?
Our integrity sells for so little, but it is all we really have. It is the very last inch of us, but within that inch, we are free.
– Valerie
Beneath this mask there is more than flesh. Beneath this mask there is an idea, Mr Creedy. And ideas are bulletproof!
– V
* Acknowledgement – reference to Mervyn King speech originally cited and brought to this author’s attention by Dave Harrison http://tradewithdave.com/?p=5310
Barnaby Is Right 
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