The US economy is already on its last legs, life on the bond and equity markets is supported only by having no precedents in stories Fed measures to inject liquidity and print money. In the first half of November, a turning point in the current global financial system was publicly designated. So, former US Treasury Secretary Lawrence Summers, speaking at the IMF annual conference, said that to achieve full employment in the US economy would require the establishment of negative real interest rates.
Moreover, his speech was summing up the annual conference of the IMF with the characteristic name “Crisis: Today and Tomorrow” .
REPETITION OF THE CONFISCATION SCENARIO OF THE YEAR 1932
Note that the establishment of real negative interest rates can only be achieved by getting rid of paper money and 100% switching to electronic payments, while at the same time withdrawing paper dollars from the population. By analogy with the requisitional “Decree No. 6102” by F. Roosevelt from 5 on April 1933, according to which the dumbfounded population was asked to hand over all of their gold savings to 1 in May 1933, in exchange for paper promissory notes of the Fed. Violators were threatened with 10-year imprisonment and a $ 10.000 fine - the equivalent of $ 200.000 today .
ONE GATE: THE FLOOR KRUGMAN AND THE "RED BARON LARRY SAMMERS"
The presentation of Summers’s “hereditary financier” at the IMF Research Conference “caused a real stir” and was declared “a brilliant, concise and innovative presentation of the most pressing economic issue of our time”. Naturally, his fellow tribesman was praised in his NYTimes blog “pop star on economics” Paul Krugman, who said that he “thought the same way” and “hinted at this way out of the situation in various works. But Larry's wording is much brighter, more insistent, and overall better than anything I've done. Damn you, Red Baron Larry Summers! ”
This envious praise from Krugman was followed by a whole set of banalities that it makes no sense to retell, but it is worth highlighting only two key phrases - “reconstruct our entire monetary system — say, eliminate paper money and pay negative interest rates on deposits” and “Larry said at the IMF not just an interesting speech. He proposed a radical manifesto. And I am very afraid that he may be right. ”.
Those. Nobel laureate in economics Krugman knowingly won his prize - his voice implies the “global kick” of all foreign holders of dollars.
As for the speech of Larry Summers, then, alas, there was nothing fundamentally new in it. On a large scale, he only stated that over the past 50 years, the Federal Reserve has consistently reduced short-term interest rates to stimulate economic growth. Naturally reaching the zero lower limit, which limited the Fed to its monetary ability to "stimulate the economy."
To compensate for the zero limit limit, the Fed used the “quantitative easing” (QE) emission mechanism in order to try to achieve an “increased investment”. But we understand perfectly well that money has long ceased to be a “scarce commodity”, moreover, there is an obvious “crisis of overproduction” in the world - money, in fact, is simply “no place to invest”. As a result, all trillions of dollars from QE went to more “profitable” speculative operations to get “money from money”, and not to the real economy.
Summers voiced that the real interest rate today is below zero, because the discount rate is lower than inflation, which eats up the value of money. The result is that with a quantitative increase in the total money supply, their real value decreases. At the same time, the Fed lost power - the ability to manipulate the economy and can no longer do anything (note that the disease is so neglected that pure Keynesian recipes - in the form of tax regulation and an increase in government spending - also will not save the US economy).
As a result, Summers made a logical conclusion - that over the next two years, the interest rate should be negative: “Imagine a situation where natural and equilibrium interest rates fell well below zero.”
Thus, without increasing the tax burden, you can encourage people to spend money more actively, which will again push the economy. It remains to eliminate only one obstacle on this path - to eliminate cash and switch to electronic money, where the issue of removing demurrage is decided elementarily (as opposed to brand certificates, as was the case in 1930 in Germany, Austria, etc.).
BRIEF HISTORICAL FLASHBACK
"I am convinced that the future will learn more from Gesell than from Marx"
John Maynard Keynes
John Maynard Keynes
As we noted earlier, at the very beginning of the twentieth century, self-taught economist Silvio Gesell published the work Freigeld (“free gold”) or “The Natural Economic Order” (eng. “The Natural Economic Order). Despite the absence of titles from the author, his theory, following Irving Fisher, was recognized by other academics, including the British “authority of authorities” John Maynard Keynes. In the middle of the 30's, Freigeld was successfully introduced in Austria, Switzerland, Germany and - almost everywhere - in the United States of America during the Great Depression. It seemed that Gesell’s idea was guaranteed a stellar future, but very quickly both his name and his theory were thoroughly wiped out of public consciousness.
All attempts to put into practice the theory of free money in 30-s had a common fate: as soon as possible (within a few months), they showed phenomenal results in overcoming the most gloomy manifestations of economic depression - eliminated unemployment, raised the collection of taxes, revived municipal activity , caused the flourishing of local trade and - most importantly - eliminated the shortage of live money, driven by deflation into bank safes.
However, as soon as the mass desire of municipalities to introduce "miracle-money" appeared, as the Central Bank interfered in the process, and under one pretext or another, closed the project. In particular, a similar scenario was played out in Germany (Wära experiment in Schwanenkirchen) and Austria (free money in the Wörgl alpine town). Thousands of experiments in the United States to introduce free money from the ocean to the ocean were strangled by the New Treaty of 1933, signed unilaterally with the nation by a freemason of the 32 degree F.D. Roosevelt, “naturally, in favor of the Fed” (see above).
The central banks intervened because, losing the monopoly on the issue of money, they themselves then technologically could not maintain demurrage money in the volume of the entire money supply. But the situation has changed radically today, when electronic money exists, and demurrage write-off from each of the accounts can be done by software.
At the heart of the theory of Gesell is a simple postulate that money must be "an instrument of exchange and nothing more." At the same time, traditional forms of money are extremely inefficient, since “they disappear from circulation every time a need arises for them, and flood the market at times when their number is already excessive”. Such forms of money "can only serve as an instrument of fraud and usury and should not be considered usable, no matter how attractive their physical qualities may seem."
If Gesell had stopped to criticize the imperfections of monetary systems, his name would have been forgotten long ago. Moreover, a critical analysis of Gesell is not close to the monumental vivisection carried out by Karl Marx over capitalism. The genius of Gesell in the conclusions and - most importantly - practical recommendations.
In Marx, “evil” is in surplus value, and the restoration of justice implies the removal of this value from one class in favor of another. In Gesell, “evil” is in the credit nature of money, and the restoration of justice presupposes the elimination of this credit nature, which feeds usurers. The main difference: instead of violence against people, violence against the abstraction of loan interest.
Money, in its modern form, has become a “self-creating perfect product,” disinterested in serving the market for traditional goods and services. But the whole host of virtual money derivatives finally brought down the world economy. Silvio Gesell put forward a revolutionary idea for the new time: it is not enough to deprive money of the ability to make a profit at the expense of interest, they must be taxed with interest. In other words, for the use of money should be charged (demurrage): “Only money that becomes obsolete, like newspapers, rot like potatoes, rust like iron, and evaporate like ether, can become a worthy tool for the exchange of potatoes, newspapers, iron and ether. Since only such money buyers and sellers will not prefer the product itself. And then we will part with the goods for the money only because we need money as a medium of exchange, and not because we expect the benefits of owning the money itself (for more information on the practice of using money with demurrage see K. Myamlin, Free Money (Freigeld), VC Institute)
FANTASTIC ADVANTAGES OF GEZELLIAN MONEY
We will not set out in detail all the historical examples and nuances of using money with demurrage, but let us recall 12 the indisputable advantages that society should receive from their introduction:
1. A monstrous imbalance in the redistribution of world profits will be eliminated - those 60%, which today unfairly receive financial capital, can be sent to the scientific, cultural and social sphere (thereby raising the quality of life times 2,5).
2. The use of demurrage finally solves the issue with a specific peculiarity of money - the “monetary phenomenon”, concluded that the possession of money as a means of accumulating wealth involves the holder in insignificant storage costs, while storing stocks (raw materials for production, food, etc.) .) cost much more. Those. “The custodian of money” - a banker, a financier - was initially placed in more privileged conditions than any person working in the real sector.
3. In addition to restoring equal conditions for business activities, there is also a purely practical application - “free money” will significantly accelerate the turnover of local industry, which will be one of the reasons for an accelerated recovery from the crisis (proven by experience in several areas of Austria, Germany, Canada and the USA).
4. The issue of regulating the rate of one’s own currency in relation to the currencies of other countries is simplified, which provides competitive advantages (the example of China), and the issue of controlling the flow of speculative capital is being resolved. Foreign trade calculations in this case are reasonably carried out through in “neo-bankors” (for the International Clearing Fee, see below); for personal overseas travel, it is possible to convert money on the card into foreign currencies directly at the border.
5. The size of demurrage in the electronic environment is regulated by elementary - exerting, thereby, the influence on various macroeconomic parameters. Obviously, the greater the negative percentage, the more accelerated the monetary and commodity turnover (the experience of using this monetary system in Wörgel showed an acceleration of turnover up to 20 times). According to experts produced for Japan, to contain deflation, the level of -4% per annum is needed, Gesell suggested using the -1% rate per month. At the same time, society essentially loses nothing, since this percentage is actually equal, or even lower than the current inflation.
6. The value of negative percentages, accessible and understandable to everyone (as opposed to the abstract inflation for many), will allow society to consciously control the efficiency of the economy (instead of stupid listening from news issues of price fluctuations on the stock exchange, which are served to us with the intonations of the Sovinformburo as a summary from the battlefields).
7. Demurrage can be the only form of tax collection, significantly reducing the cost of accounting, will remove the multiple difficulties of fiscal practice. The practice of avoiding taxes will forever go into oblivion without "tightening the screws" and "public executions."
8. In modern conditions, such a transformation is technically simply feasible through the transfer of all calculations into electronic form and the complete abandonment of paper money (as planned in Japan for the 2014 year). The technical base has already been laid not only by numerous acquiring systems (and the program for creating a national settlement system in Russia).
9. In money with demurrage, the psychological component is extremely important for the transition from the liberal model of society to a (communitarian) society with a high social orientation. At the same time, the “type of intermediaries” - moneylenders (banks will become simple settlement centers) will be eliminated by non-violent method - without the intrusive ideological propaganda characteristic of socialist societies.
10. People who have significant incomes will no longer invest in beanbags and, after purchasing the necessary goods, including as a form of capital investment, they will begin to move from the “state of the gobse” to the charity of Savva Morozov, Pavel Tretyakov (that is, people will be more inclined charity and creation of social projects); Another way to invest can be an investment in art. A negative manifestation of hoarding will be the emergence of certain surrogates (or the use of foreign currency) - the question of neutralizing this phenomenon will require study (M. Kennedy outlined in some detail the theory in this area).
11. From modern problems of a funded pension system, we will fully move on to a distributive pension system that takes into account labor achievements and is based on the principle of intergenerational solidarity.
12. A financial system based on money with demurrage meets the standards of morality and the spirit of at least three major religious denominations - primarily Orthodoxy, Islam and Buddhism - which contributes to the consolidation of peoples in many countries and regions .
But all this is possible if the issue of money remains under the control of the state, and not the private central bank.
DARK SIDE QUESTION
In fact, the most important problem remains the answer to the question “in whose hands will the money issue remain?”. If the emission control is kept by the private central bank - like the Fed - then the introduction of money with a demurrage will mean only one thing - the financial oligarchy that controls this Global Central Bank, who have been borrowing for many years ahead, living at the expense of future generations, chose all limits and Now he is going to continue to do this, according to the American economic observer Martin Armstrong, “forcing the bastards to spend money and stop saving for a rainy day” .
From this point of view, the speech of Summers’s ideologist of the Clinton kleptocracy is not accidentally presented in the existing financial circles as “absolutely brilliant”, since it allows the existing financial parasites to retain control levers primarily by American society. The Fed will earn more money simply by maintaining a permanent emission offsetting demurrage (tentatively 4-8% of the total money supply М2).
However, for obvious reasons, unsolved in Summers kleptocrats proposal remains the most serious issue of external borrowing, due to which the United States has parasitized for the past three decades. Obviously, after the introduction of demurrage, the dollars will lose "unconditional" external attractiveness as a "reliable investment tool."
Of course, it can be assumed that the phrase of the banker Andrew Mellon - “Gentlemen prefer bonds” - will remain meaningful for foreign investors - and for “external” state bonds they will retain either positive or zero profitability. As well as for pension funds.
However, the accumulative pension system for usurers has only two meanings for existence. The first, and most important, is to collect cheap money for moneylenders . The second reason for the existence of pension funds is the workplace of numerous relatives of usurers and other social parasites.
In the dry residue, after the introduction of demurrage money in the existing system, a small number of pension employees “for a small share” will provide money transfer services to bonds, and the rest will simply be thrown out onto the street.
Much more serious problem with the host of bankers and economists. In fact, this whole army of parasites serving the "economy of financial services" becomes simply superfluous. To be honest, I have absolutely no idea how they will solve this problem. Of course, settlement and maintenance will not lose its meaning, as will its meaning and lending. But it, in theory, should be interest-free, receiving a fixed share of demurrage, which the Central Bank will have to give to its branches. But the yield here is so small that banks in many ways will lose the meaning of their existence.
However, I will not spend further time on assumptions - “they will think up something”. In the end, the Department of Homeland Security of the USA knowingly bought almost 2 billion (!) Cartridges of special destructive power, 500 thousand "many-placed" plastic coffins and armored cars to suppress internal riots.
Meanwhile, while maintaining the power of the Fed (within the United States), the introduction of the International Clearing House will be a prerequisite for foreign trade calculations in “electronic dollars with demurrage”.
ROTSHILDY AGREED WITH ROOKFELLERS?
I would venture to suggest that here, most likely, a compromise was found between financial clans - the “demurrage / emission of the Fed on 'national dollars' remains for the Rockefellers" (as well as oil production and the MIC), and the International Clearing House "promised the Rothschilds" (about her creation see below)
At the same time, taking into account that China has become the leader in world oil consumption, the Rockefellers will try to control the oil production by purely forceful means. However, this is a separate question. In the meantime, the “Nefteyuan” is obviously threatening the “petrodollar”, and in view of the coming world military and financial chaos, the United States to the 2015-18. fully switch to "oil autarky." This will allow them to dismantle all of their own hydrocarbon reserves and resume the use of “shale technology” - known and used by the “oil rockers” since 1920 — until the United States intercepted oil production in the Middle East from the UK weakened in two wars.
NO PROPHETS IN YOUR REPORT
- Actually, no one claims. But for the power hurt.
Since ignoring the data of “intellectual intelligence” that “the British do not clean the guns with grated bricks” is today not even a problem of losing the financial war, but of the whole future world order. “New World Order”, if you will, the rules in which we can establish in accordance with our Civilization values - and not the ideas of “rootless cosmopolitans”. Because, a crisis is not only a time of payment for past mistakes, but also a time of unique opportunities. Now this is the situation.
We have long said that the introduction of Gesell money (or money with demurrage) is the only way out of this situation . As we remember, initially there were messages that the Land of the Rising Sun was the first to prepare to abandon paper currency with the transition to electronic money from 2014. Note that Japan as a whole can be viewed as a “test financial ground” for the global financial oligarchy. Suffice it to recall that it was here at the end of 1980 that, after the conclusion of the Louvre and Plazowsky agreements, the scenario of deflating large-scale financial bubbles descended, leading to practical permanent 25-year deflation and recession . Exit from which allow as money with a negative interest rate or "demurrage". According to preliminary calculations, demurrage in the area -4% is quite enough to bring the Japanese economy out of a long-term recession.
After the accident at Fukushima, we assumed that it was the reason for postponing the complete abandonment of the paper yen. Therefore, it is difficult to say for sure whether electronic money with demurrage in Japan will be introduced in 2014, but it is quite indicative that their overlord in the US has started talking about them. In fact, Larry Summers in his “brilliant speech” at the IMF said that the United States and Europe are repeating the situation in which Japan found itself in the 1991 year.
It is likely that the American overlord decided to outstrip his Japanese vassal, since the introduction of national money with demurrage inevitably means the next step: they will need it -
INTERNATIONAL CLEARING CHAMBER
Why is its introduction necessary? Imagine that different countries, including the United States, are introducing national money with demurrage. The value of demurrage is different. Accordingly, it will be extremely difficult to conduct international payments in national currencies. Therefore, a special clearing center will be needed that deals with their “clearing” - or “clearing the calculations”.
We have said many times that it was precisely J. Keynes’s idea of creating the International Clearing House that was at the heart of Bretton Woods, and not what the Treasury and the US Federal Reserve turned into (see, for example, Myamlin, “Global Counter-Project »The system of finance and semantics, as weapon").
Note that if its creation goes to the plan proposed by us several years ago, the international economy will become much more fair, not allowing any of the countries to profit from the release of a “reserve currency” and not create a “global government”. The advantage will be received only by the state - the initiator of creation, having begun to establish the rules (the issue of depository placement is also very interesting).
Unfortunately, our proposal was not so heard. Moreover, it seemed that when trying to explain the utmost importance of the beginning of this process, the voiced proposals were treated, at best, as eccentricity. The only thing that was perceived - this is our proposal 2010, the creation of BRICS Bank, but in a "purely traditional system of finance." In addition, now the “fifth column” is still trying to give a significant part of the share capital of the BRICS Bank to the children from the USA and Britain ... (cut out by censorship).
Meanwhile, as we can see, now the ideological vacuum is ready to fill the “tribe of Larry Summers” ... Unfortunately, after the 70-year-old Marxist dictatorship in science, Russian “economic thought” fell into another extreme, absorbing the other less edible “liberal monetarism” . Thus, in the economy, "they rule the liberals raised on Marxism-Leninism." The poisonous mixture of alien economic theories makes itself felt by what we observe in the economy and finances of Russia. Where were the two extreme poles - “dictatorships of the inveterate monetarists” and “opposition from the apologists of the Soviet paradise”. In the middle — in fact, an ideological vacuum — and the proposals for structuring space are dismissed as from “funny eccentricity.”
Is it time (censored) to turn on the head?
“IN STRATEGY, THE WINNING OF THE WHO SETTES THE RULES WHICH HAVE THE POSSIBILITY TO CHANGE THEM”
I will not list the names with whom we talked about the need to initiate the development of conditions and rules for the creation of the International Clearing House, but I hope very much that even now these specialists and politicians will understand that there is no possibility to wait any longer. Russia may lose a unique chance to become a New Civilization Leader and will be forced to drag back into the wake of the “global financial policy” - living by the rules set by the cheeky Judeo-Protestant usurers.
 see the 6 conference section “Crisis: Today and Tomorrow”, IMF website http://www.imf.org/external/np/res/seminars/2013/arc/index.htm
 see, for example, K. Myamlin, “The global financialist and currency wars. Part III - IV. Great golden robberies
 Paul Krugman, Liberal Consensus. “Stagnation, coal mines, bubbles and Larry Summers” // “Secular Stagnation, Coalmines, Bubbles, and Larry Summers”, NYTimes, 16.11.2013
 see more in detail "... A financial system that will improve our lives and become a global counter-project", VC Institute
 Martin Armstrong, "Negative Interest Rates & Eliminating Cash - The Summers' Solution", armstrongeconomics.com, 17.11.2013/XNUMX/XNUMX
 see “Deflationary economy versus usury”, VC Institute
 For details, see link # 10 in the article “Issues of Globalization. Part III. "Let the crisis break out stronger"