THE HUGE PARADOX !!!

It’s a paradox, but the main reason of the current financial crisis worldwide is : TOO MUCH MONEY…

 Money Is debt and owned by a few number of people. The huge monetary crisis during the third century, across the roman empire,  was related with the lack of precious metal.

 Since 1694, and the creation of the Bank of England, but more massively since the end of WWI, “”Money Debt”” is  keeping people in dependency !!!! and paper money created by banks IS NOT Gold money ……  I don’t have the unrealistic  ambition to change all the system !!! just to show another way is possible  for emergency situations , to cope with poverty and more important to avoid waste… from an historical basis !!! 

In the past, the banks had some REAL ASSETS and the coins were in Gold or Silver…. So, instead of the creation of loans with paper money, we could imagine a bank creating Ad hoc currencies, backed by several  true assets,  for specific sustainable purposes . …. It’s more closely related with the antique coinage, with a huge number of different coins. For example, In the Roman Empire : 2 quadrans = 1 semi : 2 semis = 1 as : 10 as = 1 denarius : 25 denarius = 1 aureus

 In a such system, Gold can be hoarded and the small coins continue to circulate !!!!

 The main problem is that most of the current  complementary currencies are pegged with the national currencies… 

The key of my Emergency Financial Management System is ACCURACY

1. Get an  Asset to back an ad hoc currency.
2.  Identify the needs in zone
3. Create the useful amount of money using a temporary currency, backed by a tangible asset …. To manage the useful exchanges necessary  to fill the  needs
4. The value of the assets are used to make the exchanges sustainable for a long period
5.  Instead to be paid with loans, Banks are paid with long term fees on the productivity created

A currency in a world without growth !!!!!!

From the origins to the years 1800’s the world GDP has been increased annually very slowly …. The financial tools introduced in economy, created a lot amount of money out of air…. And the world GDP skyrocketed !!!

• With a very low GDP growth, Gold and silver as money had a sense. It was relatively easy to find the supply of precious metal, necessary to mint coins. 
• With a high GDP, "money debt" is necessary … because there is not enough supply of tangible assets. 

What to do now in 2013 ??? the world has an enormous monetary supply , but very few tangible assets…. And no more growth worldwide !!! and especially in the western countries. 

1. First of all, Give another meaning to wealth …. Wealth represents tangible assets, health, a secure environment and good relations. 
2.  Secondly, Tokens , without intrinsic value had been always very successful in economy, because they was minted TO BE USED, not to be hoarded. 
3. Natural resources are not unlimited …
4. Creating money by loans means  dependency …. Dependency is a modern slavery !!!!. 
5. In the 1930’s in Germany, the Rentenmark were backed by industrial goods ….. So, we think anything can back a currency , because the most important, it’s EXCHANGE, not hoarding …..
6. Never enough physical Gold and silver to mint coins, Never enough working abilities  to pay all the debts !!! Both systems “money value “ and “money debt” have big weaknesses.
7. Silver is a underrated commodity , because of its massive  use in industry ….

The wealth pyramid here shows  clearly an unsustainable situation : http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/06/CS%20wealth%207.jpg

Creating a paper money and others derivatives with the same value that physical « Gold money » has been a true mistake, two hundreds years ago ….The need of cash could be filled by the banks with ""second currencies"", focused on some specific purposes !!!

 

AFTER the Fiat currency system ....

The chaos ...???? I don't think so ... I trust in private or complementaries currencies. And the current financial crisis will be still long at least until 2020...

The collapse of the US Dollar  will be our Fall of the Roman Empire !!! This decade will remain in the History.

The vicious circle !

Money has probably been invented, 2600 years ago,  to reward quickly soldiers ..... and the King's allies.
In defensive actions, it was not necessary to reward a soldier, because every citizen could been soldier to defend his life ...

Paying quickly soldiers is only useful on offensives actions , like invasions.... And the irony is : they needed silver and gold to pay soldiers for the invasions, so they  fought in many wars to find Silver and gold supply ..... to pay soldiers for new wars ..... It is as stupid as to pay old debts with new debts , like we see nowadays in the western world ....

Image you , 3000years ago, as a King of a small land with a growing population .... Your neighbor is rich in natural resources and has a small population .... Why not let the most scholarly people discussed a partnership and create a token in bronze to be used in both kingdoms ???