Prof. Dr. Margrit Kennedy

Using New Concepts WE

Can Rule Money?

Split 10.07.2012

124 banking crises326 currency crises

64 debt crises

According to an IMF – Statistik 2011

between 1970 und 2007 we have had

Misconception 1:Money with intereest and compound interest can grow forever

There exist different growth patterns in the material realm

a. natural growth alone can be termed sustainable

b. linear growth can be sustained temporarily

c. exponentielles growth is soon coming to an end

2. The Transparency Misconception

1 Garbage Collection FeesCost of interest on capital 12%

2 Drinking Water Costs Cost of interest on capital 38%

3 Rent in Public HousingCost of interest on capital 77%

Source: H Creutz

Interest is paid only when we borrow money

Interest payments and Interest gains show large disparities:

80% of the population pays twice as much as they gain

10% gain more than twice as much as they pay

Misconception 3:Everybody is treated

equally in the system

Source: H Creutz

Continual InflationBecause of inflation, in the year 2001, every DM

was worth only 20 Pfennigs…

and this was the most stable currency in the world!

Source: H Creutz

Excessive Increasein Foreign Exchange

Transactions

Source: Lietaer Of Human Wealth 2008

Exponentially growingDebtAND Assets

French government debt as % of GDP:

Official debt versus debt computed without interest 1979-2009 

1979 government debt was € 239 billion or 21 per cent of its GDP2009, this had risen to € 1,088 billion or

78 per cent of its GDP.

Had Article 25 of the Law of 3 January 1973 not been in force, the French government would have saved €1,306 billion in interest by 2009, and the country’s total public debt would only be

8.6 per cent of its GDP.

Components in Interest for Loans and Credit

In the present money system

Bank Fees 1.7%

Risk Premium 0.8%

Liquidity Premium 4.0%

Inflationary Adjustment 1.5%

Total 8.0%

In complementary money systems

Bank Fees 1.7%

Risk Premium 0.8%

Liquidity Premium 0.0%

Inflationary Adjustment 1.5%

Total 4.0%

• interest costs of 40% € 12.000 / household /year• demurrage half of that € 6.000 / household /year

Comparison of Credit Costsfor average German household with

€ 30.000 /year

DesigningComplementary Currencies

Creating new financial liquidity

for a limited purpose

LOCAL, REGIONAL and

GLOBAL CURRENCIES

or SECTORAL CURRENCIES

Sectoral CURRENCIES

two examples

Fureai-Kippu System, Japan

WIR Wirtschaftsring, Switzerland

Fureai-Kippu = Care Tickets

since 1995 in Japan supports care of elderly

with help from younger people who get hour credits

which can be used at a later date in another part of the country

or by another person

WIR-WIRTSCHAFTSRINGPARALLEL CURRENCY SYSTEM

among small and medium businesses

since 1934 in Switzerland 15 Swiss regional WIR- organisations

60.000 membersaverage turnover per year 1.6 bio WIR

proves to have anti-cyclical effectsupports policies of government

REGIONAL CURRENCIES:

• partial decoupling from globalized economy

• increased use of regional products and services

• added value and surpluses remain in the region

• community keeps essential public utilities

• closer links between consumer and producer

• strengthening regional identity & diversity

• reducing need for transport and energy

A First Model for Regional Currencies:The Wörgl Experiment

Results in 13,5 monthsbetween 1932 - 1933:1. Unemployment reduced

by 25% 2. Town-Income increased

by 35%3. Public works investment

rose by 220%

Regional money system based on vouchers

Figures for 2011:

Annual turnover 6 mio Euros

2.388 Members

600 Firms

200 Associations

Donations50.000 ChiemgauerTotal since 2003210.000 Chiemgauer

These

five villages

are supporting

members

paying

their fees

A Solution to the financial crisis in Greece and other European countries

developed by the initiators of the Chiemgauer

http://www.eurorettung.org/

Express Money is unique in two ways:

1) Via its spending incentive

- demurrage -

monetary circulation is accelerated

stimulating the economy.

Doubling monetary velocity doubles GNP.  

2) Via the leakage inhibitor feature

an exchange fee for conversion into euro

money stays in the country

strengthening its economy

and reducing its trade deficit

• more favorable interest rate than euro credits, thus facilitating

economic investment.

 

• quickly become the vehicle for domestic

payment transactions.  

Differences between COMPLEMENTARY

and TRADITIONAL currencies 1:

use- instead of profit-oriented

limited instead of general acceptance

circulation incentive instead of interest

transparent instead of obscure creation

democratic instead of central control

Differences between COMPLEMENTARY

and TRADITIONAL currencies 2:

inflation-resistant

instead of inflation-prone

promoting community instead of destroying it

Differences between COMPLEMENTARY

and TRADITIONAL currencies 3:

a win-win solution for everybody

instead of only ten percent of the population

Resilience Efficiency(Diversity + Interconnections) (Streamlined)

Sustainability of complex living systems

Optimum

0 %

100%

Window of Vitality

Resilience Efficiency(Diversity + Interconnections) (Streamlined)

Sustainability of complex living systems

Optimum

0 %

100%

PresentFinancial System

Resilience Efficiency(Diversity + interconnections) (Streamlined)

Sustainability of complex living systems

Optimum

0 %

100%

Effects of Complementary

Currencies

My change of perspective between 1987 und 2012

New Society PublishersGabriola Island, CanadaAugust 2012

more on:www.margritkennedy.dewww.monneta.orgwww.kennedy-library.info