Economics For A Decent And Dignified Living For All

An Indictment of Unbalanced Capitalism and the Historically Viable Solution:


Worgl, Austria 1932-33 



A Naturally Balanced Economic System That Provides A Decent And Dignified Living For All By Eliminating the Artificial Scarcity of Money - A Prerequisite for True Democracy





      "Money does not grow on trees, you know." -  Any defender of the status quo to anyone else who questions it.

     

       "No, it's creation process is actually much simpler than that." -  Any knowledgeable 5-18 year old to their parents.

      

        “The process by which money is created is so simple that the mind is repelled.” -  John Kenneth Galbraith, the foremost                   American economist of the past century, speaking on the creation process of money.  This is one of his two valuable insights.          The other is his insight on the importance of the velocity of money.


       "It is well enough that the population do not understand our banking and economic system, for if they did, I am of the belief that         there would be revolution before morning."  - Henry Ford, carmaker and progenitor of the mass production system.  Unfortun-         ately, he was correct, as one realizes if they do some basic research on the subject.  By the way,  an ancillary fact, the Ford Model T's MPG was roughly 28.  After aerodynamic modification, it was 32.  More than a hundred years later, we are still at this dismal level. It also had flex fuel capability, running on either gasoline or alcohol.  A century later, we are still supposedly struggling with this rather useful feature.  This single fact shows how much the "progress" of the last century is really just skillful propaganda.  We apparently went to the Moon in ten years, but we cannot raise the gas mileage of the automobile in a century.  http://www.gizmag.com/go/2946/


The summation of the essay below is as simple as this:


  1. Capitalism is touted as the best economic system possible currently. This is patently false. The basic definition of any good economic system is that it must provide a decent living for all.  Without exception.  Capitalism fails this fundamental test miserably. One only has to look around to see this.

  2. Capitalism is called this because it is about the accumulation of capital, or money in the contemporary world, nothing more. Since money is both essential for survival and systemically scarce, the accumulation of it is of primary importance, even though it is just a concept-a manmade idea. Since it is manmade - an artificial concept, there is no logical reason why the system should make people go without. If money was systemically abundant, much like Nature makes air and water abundant enough that one does not have to think about them consciously, both as important for survival but more real than money, then capital would recede into the background as an infrastructural support and would not need to be thought about consciously. Paradoxically.  Much like the air we breathe and the water we drink and the food we eat and the sunlight we absorb. The "system" of Nature is inherently set up for life and success.  Why is not the economic system?  Again, money is not a real thing.  It is just computer bits and bytes at this point.  Why is anyone going without enough of it? The system of Capitalism makes it scarce since 95% of currency is created through debt and the banks only create enough currency for the principal, not the interest.  Therefore, the essential resource called money is constantly in short supply.  Everyone knows this on some level.  Therefore, the name of the game is accumulation of wealth. Because the people know that the system will not take care of them ultimately.  Again, one must remember that the definition of a good economic system is that it will take care of everyone to provide a decent and dignified life, without exception.  By this common sense definition, Capitalism falls far short, of course.  Furthermore, it will never meet this definition, of course.  No matter how much the "science" of economics progresses, the fundamentals of the system prevent an equitable distribution of wealth, even to the extent of billions for one and none for another.  A sorry example of Democracy which will keep the People against each other rather than united as they should be in a balanced democratic society. 

  3. The Public Banking Institute – http://www.publicbankinginstitute.org/why_we_don_t_understand_money_and_debt_and_why_it_s_important_that_we_do?utm_campaign=pbinews22&utm_medium=email&utm_source=pbi .    Or,  http://webcache.googleusercontent.com/search?q=cache:oJLfnK1XLHEJ:paulgrignon.netfirms.com/MoneyasDebt/MoneyasDebt1_Transcript.doc+&cd=16&hl=en&ct=clnk&gl=us .  The previous link shows how long and out what kind of iniquity the banking profession comes.  The crux of the problem currently is that money should be a means of exchange primarily, not a store of value.  The latter attitude is encouraged by the current setup.  Currently, money is created by bank loans, whereby the bank creates money out of thin air by granting loans or credit.  However, they do not create the money for interest payments, which they require.  Therefore, not only is all money debt-based, it is in scarce supply from its inception.  X is created but X+Y is required to repay the bank.  Where does Y come from since everyone is getting their money from banks and is in the same deficient position?  Well, one must rob Peter to pay Paul and the law of the jungle prevails.  From this simple scarcity-creating mechanism comes all the major societal and existential problems of mankind for past eons.

  4. A system which placed money as a support to life rather than a goal of life, by eliminating its systemic scarcity, was tried in Worgl, Austria 1932-33, based on the ideas of Silvio Gesell. The systemic scarcity of money was eliminated by changing the concept of positive financial interest currency to negative interest currency model. In other words, there was a systemic monthly one percent tax on the local currency. Therefore, the impetus to hold on to the money disappeared and people spent it as quickly as needed. No tension between getting and spending as in Capitalism. Counterintuitively, the constant flow of money in the local economy made it a balanced model of full employment, cooperation, and a moral system within the larger idea of community. Money became a support to life rather than a goal of life. Unemployment was reduced drastically  within one year during the Great Depression. The system was the proper model of economics and was inexplicably shut down by the Austrian Central Bank after one year though the citizens fought all the way to the Austrian Supreme Court to keep their universally beneficent model economy extant.    

  5. It is time for the Worgl model to be brought before the People again, as Capitalism is beginning to show its systemic fatal flaws once again.  It belongs in the dustbin of history.  And, to be quite honest, such an imbalanced system should never have become the predominant economic paradigm.  The question is what comes next?  The answer is a negative currency model as demonstrated by the successful Worgl example.  Anything else is misguided, though perhaps well-intentioned.  For those who still champion the other economic system-isms, they all suffer from the same fundamental problems as Capitalism - scarcity is at the root of all of them and none provide a sufficient answer to the distribution problem.


     Finally, something apparently needs to be said which should be clear to most people at this time.  The system is actually insane in a clinical sense.  Regarding people, one can appear sane when one is a cog in the machine from the vantage point of one's niche.  However, when the larger viewpoint is seen, that which appeared acceptable in micro is now monstrous in macro.  and the reverse is often true also.  That which is acceptable from the macro view is unacceptable from the individual level. This is where we are as a species.  Sanity means to be human at this particular time in human history.  The system is  anything but human and reasonable.  Simple really.  How can it be sane when it puts the unreal and the ephemeral and the commercial above the human and the natural and the commonsensical?  As long as this particular system is extant, the world and its citizens will suffer needless tragedy as if this is what God intended for them.  Needless scarcity and consequent tragedy is built into the system that attempts to make Bernie Madoffs of us all and  touts it as some sort of great systemic and human achievement.  It is nothing more than the victory of the Bankers' agenda over the People's agenda and the hoodwinking of us all.  For quite some time now.  All one has to realize is that of every financial transaction, roughly forty percent in price is added on due to the bankers' involvement and influence within the system in its current iteration.  A forty percent hidden tax for everyone and everything in this country.  (And, one can really exptrapolate this to the rest of the world.  We are all being bilked by the bankers from the sunrise to the sunset.)  How can a society or even the underlying economic system survive under such a heavy burden?  The truth is it cannot.  There will come a day of reckoning, and the People will pay a heavy price on that day- hopefully the Money Masters will pay a heavier one.  However, the price need not be so heavy if such a system as Worgl is put into use which puts money in its proper role as a support to living rather than a goal of life.  So that people are free to live their lives in naturally balanced ways rather than twisting their lives and souls to make a dollar  An artificial and extractive paradigm if there ever was one as most people realize by this point.


 

    A system which placed money as a support to life rather than a goal of life, by eliminating its systemic scarcity, was tried in Worgl, Austria 1932-33, based on the ideas of Silvio Gesell. The systemic scarcity of money was eliminated by changing the concept of positive financial interest currency to a negative interest currency model. In other words, there was a systemic monthly one percent tax on the local currency. Therefore, the impetus to hold on to the money disappeared and people spent it as quickly as needed. No tension between getting and spending as in Capitalism.  Counterintuitively, the constant flow of money in the local economy made it a balanced model of full employment, cooperation, and a moral system within the larger idea of community. Money became a support to life rather than a goal of life. Unemployment was reduced by 30% within one year during the Great Depression. The system was the proper model of economics and was inexplicably shut down by the Austrian Central Bank after one year though the citizens fought all the way to the Supreme Court.



Revised October 18th, 2015


This essay is not fully finished but the main ideas should be clear. For more information on Worgl, Austria 1932-33 (including historical documents), please see the sources list at the end of the essay.


  It is hopefully already clear to all who are reading these words that Capitalism is a fundamentally flawed system which will never provide a decent and dignified living for all. It should be equally clear that a decent and dignified living for all should be a minimum requirement for a truly democratic and civilized society and world. Hopefully, even in this age of great confusion and propaganda in all areas, the truth of these statements are painfully obvious. They should be. By experience for the first and wisdom for the second. Therefore, we can see that Capitalism and Democracy have been more than somewhat antithetical. In fact, the imbalances which are endemic to Capitalism are a direct threat to the balanced stability which is necessary for true Democracy to flourish. This is a common sense statement which if one has trouble accepting, one must rid oneself of the educational propaganda passing as economics and once again remember what true Democracy is about. It would be wise to start with the realization by both Dr. King and Gandhi, before their passing, that there can be no social justice without economic justice. As one looks around the world today, it is clear there is a distinct dearth of social justice. And economic justice. And legal justice. And spiritual justice. The world is out of balance on a scale that portends a manmade doom of a final nature or a renaissance borne out of attempts to address these longstanding imbalances in which the developmental trajectory of society once again moves towards and finally realizes true Democracy. 

  However, this will not occur without economic justice.  This is not a difficult concept for children, yet many adults have given up on the  ideal-thinking it is unrealistic or worse, utopian.  It is not.  This is merely propaganda passing as intellectual work by those who forget the fundamentals of their essentially simple field of economics.  True Democracy cannot survive while a system such as Capitalism is dominant. The reason is given in the name.  Democracy relies on an educated, aware, and powerful public that has the time and inclination to ponder and discuss the issues of the day. The nature of the concept also implies each individual has an equal voice and power in the affairs of the nation.  We do not live in such a society now though it is touted as that at every opportunity.  The fundamental reason why is because there is no economic parity in the land.  Or in the world, for that matter.  When one is busy earning a living in an unbalanced system such as Capitalism (chasing capital), one has little time or incentive to attend to civic affairs in a meaningful manner.  And, after all, civic affairs are an indication of the spirit of community and Capitalism engenders the opposite of community.  One only has to visit the US, the country which embodies Capitalism most, to see the reality of this.  A country where many of the people realize something is terribly wrong with their country, but cling to their individuality as a drowning man clings to an anchor in the hope it will save him because it is the only thing he recognizes in the vast ocean.  They have forgotten what it means to be fully human but see it as a virtue.  Until they visit another country and are reminded what reality is in its various aspects.  But, since the US is a bit of an echo chamber, only the ideas which the people already have are reflected as well as those that are injected by the Powers that Be.  The underlying philosophy of the ideas never changes.  Constant materialism and dissension and trivialities.. The only thing that will save the country is the thing which formed it: The dissatisfaction and wisdom of the People and a  truer realization of the ideals which are in the founding documents.  However, this deficiency must be transcended in a systemic fashion, which means Capitalism itself must be transcended.  It is not the economic system for Humanity and it should not be the system now.  In fact it is a deeply flawed system which, when judged on its own merits, should have been thrown into the dustbin of history long ago and should have never reached the dominance it has now. However, propaganda is a powerful tool.

  Money serves two functions in any economic system 1) it is a means of exchange and 2) a storage of value.  The second function should not subsume the first as it sometimes does in Capitalism.  When currency is primarily a means of exchange, it will be used primarily as a support of economic activity rather than being a goal of this activity.  And, this is as it should be since it is never the currency that is of primary use for the  people, but the goods and services needed to live a decent and dignified life.  The currency should be of secondary importance and serve the proper function of supporting economic activity and life, in general.  The reverse of this, where money becomes more important than economic activity through scarcity, is a perversion of proper economics and will serve only to deform the society and the people's character.  This is the case in the US now.  It also leads to a perversion of morality in the long run as anyone can see has happened when looking around the world.  Money, after all, is only an artificial concept, valuable only in its public, economic, function and when it has been deemed to be of a certain artificial fungible value.  It is essential to life in the modern society only because the society has been organized in this way.  It is artificial, man made, and essentially useful only because the people put faith in it as a means of exchange for goods and services needed to live.  There is no reason why any aspect of a nation's currency should prevent the full and balanced realization of that society's economic activity.  This is the essential flaw in the current world economic system known as Capitalism.  It is contained in the name.  The problem put plainly is this -  there is no way that a system which makes the artificial but essential resource of money systemically scarce will provide a decent and dignified life for all the people.  (This should be the basic measure of any economic system.)  The people rather will compete among themselves for the "privilege" of obtaining currency at the whim of those who realize the nature of the game and make the accumulation of money and therefore make power the main goal of their lives.  This has also long been the model of business for some time.  People will always have to come second in such a system as the dictate is to make artificial lucre the primary goal of living.  This is why American business has been hollowed out by a lack of ethics and therefore humanity while the rest of the world wonders how such an obviously immoral country can succeed for so long.  The truth is the system of Capitalism hinders everyone from top to bottom since it gives an artificial substance the greatest systemic importance and works against the spiritual growth of all of us.  An Alice in Wonderland situation if there ever was one.  Everyone suffers spiritually since they are in the chase of an artificial debt-based concept which enforces a hierarchical class structure to society even though "All Men Are Created Equal".  The debt slavery is perpetual as one realizes when one looks around the world and attempts to find out which countries exactly are not in debt. This can be seen here - http://www.economist.com/content/global_debt_clock .  Especially when one realizes that debt is not necessary at all to run an economy when it is designed properly. The material suffering occurs since not everyone can earn a decent living in this system.  It is systemically impossible.  And everyone feels the stress of the unbalanced system in one way or another, even if they do not recognize the true cause.  It is a fact that not all will be provided employment in this system.  It will always lead to a haves versus have-nots situation since it makes money systemically scarce and therefore encourages a hoarding, clinging mentality.  Even though it is an artificial substance, there is never enough to go around.  It is a game of monetary musical chairs which makes some owners, most slaves, and some owners spiritual slaves. A completely backwards and illusory system held in place only by ignorance of the public, the scholarly assent of the educated but misled mainstream economists, and the continuous hand waving and uncaring will of the masters. 


  The essential problem with Capitalism is in the name.  It is about the accumulation of capital, which is money in the modern world.  One must put primary importance to the accumulation of this ephemeral concept rather than more important and naturally human things.  This is because the system makes money both scarce and essential for survival.  If, instead, the system provided capital, again an essential resource in a modern society, abundant enough to live life, much as Nature provides air to breathe and water to drink in amounts sufficient that one need not consciously think about it to survive, the system would not be called Capitalism.  It would have another name yet to be determined since one's attention could be placed on other than the accumulation of capital.  Capital would fade into the background as a support to living.  The system would be naturally balanced and based on natural abundance rather than artificial scarcity.  Everyone would be systemically provided enough of the manmade resource called money that one would not have to worry about economic survival.  Money would naturally assume the proper role of support to real life rather than being a goal of life as it now.  This would naturally allow a properly lived life within an organic and human centered community - a system that both Dr. Martin Luther King and Mahatma Gandhi would perhaps have approved of within the realm of necessary economic life.  The current system resembles and functions like a poorly designed engine which never runs smoothly and properly - no matter how much one fiddles with the timing, changes the spark plugs, checks the oil, etc.  It will never be able to fulfill the full functions of an engine, which is to power the vehicle. To draw the analogy to its end, the economy will never be able to adequately power the society in a full and naturally balanced fashion no matter how much one fiddles with interest rates, money supply, debt levels, population, etc.  Unfortunately, this is where the entire world finds itself currently at the beginning of the potentially transformative 21st Century.  The system is insufficient, inhuman, and often requires one's soul as the cost of admission to one's own life.  The spiritual malaise and the symptoms of the imbalance are everywhere to be seen if the eye is keen enough. 

  The key to understanding the inadequacy of Capitalism is to view the US, other Capitalist nations, and the rest of the world, and realize that the system is working just as it is capable of doing by its very design.  The extreme economic imbalances in the world and the great trouble the people are having in achieving any kind of meaningful justice of any kind is just what can be expected under Capitalism.  Economics as a field of academic inquiry, unfortunately, will get no better with time.  All the discoveries/theories that need to be made to perfect the field have already been made.  Its current state of ineptitude and inadequacy are also by design.  It will not get much better than this constant vain struggle for an economic balance which supports democracy and allows the People to live a decent and dignified life.  A poor show.  And, of course, any unbalanced system, by its very design, is open to manipulation by vested interests. And human nature being what it is within an unbalanced system.  However, it is not difficult to find examples on all sides of these interests gaming the system against the People and each other for their own narrow business needs.  Usually, this is done by withholding information that the consumer would deem it in his best interest to have. I will leave it to others to draw the darker and further reaching conclusions.  Suffice it to say that money has been a fungible item for some time now and has always been a manmade concept, it is the height of absurdity that we should be living under a system which makes the possession of that manmade concept essential but also makes it difficult.  Quite absurd.  One has to wonder also what the purpose of the Federal Reserve and the IRS are at this logical juncture.  Also, what is the point of paying taxes since it is a witnessed reality that money can be created quite easily in the trillions for those Banks that need it, as they purportedly did in 2008 in the housing mortgage crisis?  It is quite a show that is being put on in the public arena in the critical area of the nation's economy, finance, and governance.  For evidence of this, one only has to view the debacle that was Congressman Alan Grayson's interview of the General Counsel of the Federal Reserve as to where and how money was disbursed during the 2008 crisis.  The entire Federal Reserve seems to be run by yes men or boobs.  Perhaps that is intentional. 


 The crux of the problem is simply this - there is never enough money to go around in the national and world economy, even though it is an artificial concept.  This is due to the fact that over 95% of the currency in the economy is created through the process of debt.  In other words, through loans. When a loan is created, the money to pay it back is created in the principal of the loan. However, the money to repay the interest, which is the price that the bank charges to loan out (not buy) their product (money) is not created.  Therefore the loanholder has to "attract" (as the euphemism goes) enough capital in the marketplace to not only repay his loan but also the extra that is needed to cover his interest payments.  Unfortunately, everyone in the economy, except the bankers, are in this situation.  Therefore, everyone has to basically "Rob Peter to Pay Paul".  One debtor has to literally take food from his neighbor's mouth in order for he and his family to eat.  The neighbor (whether he is next door or across the country) must go without paying his debts and perhaps declaring bankruptcy instead.  And his family will go without.  This is the way the system is structured currently. There is no other understanding that is correct.  The artificial scarcity of artificial concept (money) that is built into the system always keeps the people on the leash of never enough. Money is essential to have in the modern world, and one cannot really survive without it. It is therefore unconscionable that we live under a system which makes it impossible for everyone to have enough of this artificial concept to live. Everyone has to go into debt to survive. There is not enough money created for everyone to pay the debts off, therefore some will always be in debt and unable to live life free of worry.  And since it is culturally unacceptable to be in debt, those that can attract enough to pay debts will always have an advantage over those that cannot. And keep in mind that money is basically an artificial concept. Since there is never enough money to pay back all the loans, the economy must keep growing to keep the Ponzi scheme afloat.  Otherwise, the economy would crash.  It is not only an unbalanced system, the fundamentals are erroneous and artificial. Scarcity is not the fundamental mechanism of the Universe. One only has to look around the world to see that there is also more than enough to go around as well. The scarcity comes from a philosophy and system which creates scarcity even when there is abundance, mainly through systemically poor distribution and behind-the scenes manipulation. Any unbalanced system begins to resemble evil after a long enough time. When scarcity is foremost in people's minds, materialism and hoarding are understandable reactions. More, more, more.  It is a bit of an illusion we have here in the developed world.

 

  1) Morally flawed-must take advantage of someone or something to make a living.  Spiritually untenable because of debt. Infinite growth required on finite planet.  Unavoidably creates haves versus have-nots situation due to the psyc
  The fundamental reason why Capitalism is a detrimental system societally is because its fundamentally unbalanced nature, caused by the artificial scarcity of the economic lifeblood of money, requires that one must somehow acquire currency at the cost of other things, such as morals, relationships, community, spiritual principles. etc.  This leads to a general systemic nature of exploitation.  One must take advantage of someone, something, oneself, or the planet to make a living.  This is again because there is a scarcity of money and its' acquisition  therefore becomes the highest priority systemically.  Everything else comes second.  This also inevitably leads to a situation where the primary goal in life becomes to look out for oneself rather than the whole community.  Every man for himself.  The definition of civilization, no?  This is untenable for any decent society.  This is because of the positive interest financial interest system combined with the debt-based currency.  These two characteristics combined are the worst possible since this setup demands infinite growth on a finite planet.  The economy must grow ever larger for debts to be repaid and the system not to collapse.  However, there is no real balance which can be reached which provides a fully satisfactory economic situation for the nation.  There will always be unemployment, currency scarcity, and a sense of disquiet on the part of the people that something is not quite right.  It is a correct intuition.  There is nothing in such a system that is to be lauded except the creation of a middle class.  Much better can be devised, however,  by putting money in a supportive role to life rather than as a goal of life by making it systemically abundant.  (Much as Nature makes air and water abundant enough so that one does not have to think about it.)  Finally, this constant struggle for artificially scarce currency creates a dynamic of constant accumulation.  There is a tension between getting and spending in America.  The reason is one must spend to live but there is never a sense that the system will provide enough currency to take care of one as it should.  One is always on edge.  This leads to a hoarding behavior on the part of some, and addictive behavior on the part of others.  They are known as Capitalists.  Even the billionaires cannot get enough.  The cost ends up being one's soul for many.  And for many others, an emptiness of life.  And society, in general, where the dollar is confused with God.  Is this not what Jesus fought with righteous rage at the Temple in Jerusalem?

  Also, this is apart from the fact that most people are unhappy with their jobs and job possibilities.  The system just does not produce the kind of jobs which are of interest to the People.  And the further mechanization of them is in tolerable.  We are all automatons.  It  is highly telling that the greatest number of heart attacks occur on Monday morning.  It is to be expected in an unhealthy system.  Never mind also that the true rate of unemployment, not including the dissatisfaction factor, is roughly twenty percent.  And it will never reach zero.  The real problem is that Capitalism works against the morality and the true nature of the People.  God versus Mammon.  A system which makes one choose Mammon is not fit for human participation in the long run.  Morality and the character of the people suffers and public life becomes primarily commercial.  This is the true test of a society.  The effects of such an economic mindset are innumerable and hard to overestimate.  Where is the humanity of the people?  Is it still there,  Or has it been transmuted to a cybernetic commercial state of being in which everyone is a self-maximizing unit?  I suspect we are at a breaking point and we are seeing the Beginning of the End of Capitalism.  Either that, or the end of our feeble attainment of civilization as a species.

What is the Solution?  Worgl, Austria 1932-33  (section yet to be completed)

  Money as a 
support to life rather than as a goal of life through negative interest currency.  Simple system resulting in much greater currency velocity in local economy making money systemically abundant.  Much like Nature provides the air and the water we need to survive in abundance.  No need to consciously think about attaining or accumulating money as the system always provides enough through rapid circulation (word currency means rapid in Latin) .  There is never a sense of scarcity. This was done by increasing the local systemic velocity of money through imposing a 1% tax on the held money at the end of the month.  There was no motivation to hold onto the money unlike in Capitalism, in which there is a tension between getting and spending.  The multiplier effect became many times the seven which is normal in the US, for instance.  The results were a drop from thirty-four percent to twenty-three percent unemployment within one year.  "Enough work and bread for everyone."  Civic projects built.  Taxes paid before they were due.  Local currency system.  Supported cooperation rather than pathological competition.  Allowed people to feel supported economically and psychologically enough so that they could act on the impulses of the better part of their human nature.  People got together in groups to plant trees spontaneously.  Shut down after one year by Central Bank with imprimatur of Supreme Court.  Town rejoined world in economic misery after glimpsing economic utopia.  Relatively unknown to this day due to the premature closure.  Otherwise, would have spread like a benign virus around the world during Great Depression.  Over 200 towns had sent representatives to Worgl to observe/export system within the year.  Its artificially engineered and premature demise and the continuation of the economic depression was a direct factor in starting WWII.  Needless to say, the story of Worgl and the seemingly miraculous effects of negative interest currency have not been inculcated into the educational curriculum of mainstream economics or its canon of worthy knowledge.  It is perhaps the greatest flaw in economics.  When a philosophy is based on scarcity, chances are it will not provide abundance to the People, even of money-essential for survival.  The entire field is based on erroneous assumptions, though understandable,also no longer useful.

  Optimal size of system TBD but tends towards human sized economy unlike Capitalism's tendency to Monopoly due to hoarding behavior encouraged by scarcity mindset.  One of the proper and viable solutions to Capitalism since it removes the structural flaw of scarcity of money, an artificial concept. and gives the opportunity of a decent and dignified economic life to all rather than a system which allows a relative few to dictate the standards of living for the many, which is what Capitalism tends toward.  Justice is indeed hard to attain/fight for when one's economic survival is at the whim of another.  The power imbalance is hard to overcome unless one has the power of numbers.  This is why the world, even in the "civilized" world, is still primarily a concrete jungle.  And partially why both economic and social justice lag.  It is the 21st century after all; there must be a reason why no part of the "First" world begins to even resemble it by societal and material norms.  And why most of the world still is living in the Middle Ages.  There is absolutely no need for it.  If  Worgl had been allowed to grow and spread instead of being shut down preemptively by the Bankers, I suspect we would be living in a completely different world currently.  A world largely without war, without strife, without want, and without silly questions as to whether human nature is essentially good or bad.  And, the major disease of our time, separation, isolation, and almost a complete lack of community and common understanding would not exist.  In fact, most social problems would have disappeared as they are symptoms of an unhealthy mode of living forced upon people by the unbalanced and inhuman systems they live under.  It is a naturally human tendency to live a healthy, balanced  life.  Constant war and conflict and amorality are abnormal. Even pathological.  Even at that time over two hundred towns had sent representatives to the  town to observe and hopefully replicate the "Miracle of Worgl" in the irrespective towns. It was a seminal turning point in modern history but it was not recognized as such on a large enough scale.  We are still paying the immeasurably tragic and needless price for this induced ignorance.  The only "flaws" of such an appropriate system would be the local size of it and the need perhaps to base the currency value on a precious metal backing basis.

 To put it as simply as possible, the economics problem that seemingly bedevils us has been solved long ago.  It was shown to work in Worgl in a spectacular fashion by fully meeting the needs of all the people within one year.  Any deviation from this historically demonstrated answer (negative interest currency model) is probably wrongheaded in the long run though may seem successful in the short run.  At least until the human species transcends money altogether.  Why we are all suffering needlessly is not due to a lack of better answers,  it is due to deliberate obfuscation that serves the interests of the status quo over the wellbeing of the entire world population.  It is a monstrous situation, no matter how prosperous things may temporarily look on the surface.  Even in the West.  Capitalism was a fatally flawed system from the beginning.  By its own merits, it never should have become the worldwide system and it is showing why now.  The correct solution is a local system based on negative interest currency that systemically puts money into its proper role as a support to life rather than being a goal of life.  It is, after all, a man made concept. No real reason to let it rule the lives and dreams of billions of people.  The system as it currently stands makes a complete mockery of what it means to be a decent human being and only still exists because it serves the twisted interests of a relative few while placating or distracting the many. The so-called progress it has engendered is largely an illusion, though enough to maintain the support of the public mainly through propaganda and disinformation.  We are far behind where we should be as a species on this planet.  The status quo cannot and should not stand.  The profit motive is largely responsible for a twisting of the human soul and is responsible for most of the suffering of the world and a reduction of the human condition to an economic footing. What better way to negate Jesus' teachings than to let the economic system do it?. When compared to what could and should be, the current system is revealed for what it is - a way to control the lives of the people and the progress of the human species.  A naturally balanced economy would not require the severe psychic cost this one does and would propel the species forward in a better direction and to more naturally compatible goals than the ones which are touted now.   The greatest terrorist in the world  is, in fact, the deeply flawed and dysfunctional economic system, otherwise known as Capitalism.  If this statement is incomprehensible to one, one must probably travel outside the borders of the country and attempt to regain the uncluttered spirit and clear sight  that are the essence of survival and reality in most of the world.
 Or ask your children. Until the economic system is changed to a proper negative interest currency model, it will needlessly continue to be the cause of as many problems as it appears to solve. And,the destructive relationship between Democracy and Capitalism will continue.  As  we are seeing currently, Democracy is the less flawed institution which will outlast Capitalism.  The economic system should never be systemically more important in the nation's life than the political and civic life. Paradoxically, because it is so important that if it is not functioning correctly, it will threaten to take over the attentional resources of the nation unnecessarily and will threaten to crowd out that which really is more important in the long run, the leading of the nation in the correct moral, and political direction and in a balanced fashion.  Once the economics "problem" is solved, it can be permanently placed under the political life in importance.  Of course, the civic life should be paramount and central to any truly democratic society.   The current system stands in the way of “the establishment of a more perfect union.” Those enlightened leaders throughout history who truly had the interests of the People at heart (as well as the People themselves today) would agree. Hopefully, we are witnessing the beginning of the end of Capitalism. It has been around long enough oppressing and deluding the People. The negative interest currency model (similar to the example of Worgl) is what should come next. Balanced freedom for all rather than a gilded and subtle system of slavery for most, which is what exists now. This unbalanced dynamic is at the heart of Capitalism, unfortunately.  Any system which places commercial activity at the center of the society does no favors for the idea of Democracy.  Rather, over time, the democratic ideals and institutions are hollowed out and replaced by commercial values.  The market should not be at the heart of an advanced civilized society.  It is the People, after all, who are the lifeblood of the community, and all their various needs should be met within the framework of the village, not only the commercial aspects of their lives.  Such is the society which we have now and it shows everywhere and in all aspects..  Rather, the balanced and democratic civic life should be at the heart of the community.   This is a truism throughout history.  Although commercialism has been at the heart of many societies, for lack of a better economic system which allows a non-pathological commercial structure to underlie the society; consequently, a truly democratic and balanced society has never been seen in full fruition in world history.  


As a note of warning from history, for those who are looking forward to and working for change. The basic reason why the Worgl system did not spread around the world in 1932-33 was because the citizens trusted their paternalistic institutions too much. The experts found reasons why it was a fluke – and the institutions they trusted to have their best interests at heart did not it seems. Namely, the Austrian Central Bank and the Supreme Court. It would be wise to remember that the same forces responsible for this travesty of justice are still loose in the world. One only has to look at the dismal state of the world to realize this. However, the subtle schemes and motivation of these forces cannot be underestimated. One only has to look at the Occupy movement to realize this. A supposed revolution without a leader, complete with literal handwaving, and very few concrete systemic demands for change. The only real ingredient they had of an actual revolution was the support of the People. The point being that the Occupy movement was designed for failure from the beginning or soon taken over after its inception by minions of the very forces which it deigned to overthrow.  The author has personal experience on which to base this statement. Cohesion was almost actively avoided in that movement, much as in society at large, indicating who was really steering the ship. All by design. And, although, people were aware of the presence of “outsiders”, they really did not seem to pick up on the subtle indications of the takeover of the movement by these antagonist forces in their very midst and from the very beginning. Thus, its resulting failure.  This seems to be, hard as it is to believe, the very same thing which is happening in the society at large right now.   A certain amount of common sense is required, even perhaps more than usual, when you are taking on Capitalism. It is wise to remember that these type of forces do not rest, so cast a glance around with this in mind. The pattern of things engineered not to succeed is quite high as one can tell from the news for the past few years..  


    The single difference between the time of Worgl and the present is that it is a different era. Everyone who is truly aware of the world these days knows the system does not really work as advertised for the vast majority of individuals.  And, after all, the Divine seeks balance in the universe. It is the foundation of justice. This will be enough this time to overturn this artificial economic system which is one of slavery for most people, despite the incessant and sometimes subtle propaganda. In fact, the time of change has already begun, which one realizes if one is watching the news, but the wrong side is in charge currently. Soon, the tide will turn and the People will mobilize as a united entity speaking with once voice, powerful enough to topple those seeking to enslave the them in a final way. Capitalism would allow such an abomination to occur. Worgl would not. It is the very definition of democracy and balanced freedom.  It's only flaws are the limit on size of the model and the need to reset the value of the currency every few years.   A small price to pay for a balanced economy which provides a decent and dignified life for all who take part in it.  In reality, the only thing keeping such a system from being instituted is the mindsets of the People which have been shaped by the mainstream economists for so long to think up is down and the status quo is tolerable when, in fact, it is a monstrous and illusory system which makes moral behavior unnatural for the People.  A system which cannot stand the test of time or history.  It has been propped up by those whose purposes it serves.  Within God's plan perhaps, it is the domination of the patriarchal energies for as long as possible.  It is time for the tide to turn and balance to be restored on this planet.    





Sources -

1.) A good summary of the Worgl "Experiment" -

https://realcurrencies.wordpress.com/2012/07/02/the-power-of-demurrage-the-worgl-phenomenon/


2.) A Summary of  the Worgl, Austria 1932-33 "Experiment"

http://www.lietaer.com/2010/03/the-worgl-experiment/ 


3.) The Unterguggenberger Institute - http://www.unterguggenberger.org/page.php?id=228


4.) Historical Documents on "The Miracle of Worgl" 

http://www.reinventingmoney.com/documents/worgl.html  

3.) "The Dysfunctional Operation of Money" -  A paper explaining the fundamental flaws in Capitalism which make it fatally unbalanced.  Gabor Sardi - Kaposvár University, Faculty of Economic Science, Hungary 
http://journal.ke.hu/rbs/index.php/rbs/article/view/62


 4.) "Free Money and Other Complementary Currencies as the Ideal Unity of Autonomy" (Revised MA Thesis) - A paper examining currency systems which support Democracy much better than Capitalism. Hironori Nagamatsu - University of Bradford, Department of Peace Studies, UK 

FreeMoney- http://www.complementarycurrency.org/ccLibrary/Free%20Money%20and%20other%20CCs%20as%20the%20ideal%20unit%20of%20autonomy.pdf



**Frederick Soddy, Silvio Gesell, and Irving Fisher are well-known historical economists worth reading for a good foundation in proper economics.  There are many others, though not as well known. The usually lauded suspects are quite overblown and can be largely ignored, no matter what their time period.  Perhaps a bit of John Kenneth Galbraith's observations as well dealing with the importance of the velocity of money and the "Great OZ (ignore the man behind the curtain)" creation process of it.  https://www.community-exchange.org/docs/Gesell/en/neo/index.htmhttp://abob.libs.uga.edu/bobk/wvwd/ .


5.) "Why There is Scarcity when There is More Than Enough To Go Around: Solving both King's and Gandhi's Problem of Economic Justice"  - Soon to be published.



6.) Congressman Alan Grayson interviewing various Fed officials -  A group of jesters tasked with maintaining the illusion of safeguarding the nation's economic life being interviewed by a true representative of the People who asks the correct questions.  The silence and blanks stares on the part of the jesters at times is deafening and telling and indicates the true state of affairs of the country - Far worse than openly discussed and worse perhaps than even suspected.
https://www.youtube.com/results?search_query=grayson+federal+reserve&oq=grayson+federal+reserve&gs_l=youtube.3..0j0i5.11950.17370.0.17522.23.13.0.0.0.0.1102.4745.0j2j5j5-2j1j1.11.0...0.0...1ac.1.11.youtube.ux8q4KbO8GI

7.) Money As Debt - Full Length Documentary - YouTube
https://www.youtube.com/watch?v=Ly8fCLzmn-c&list=PL984F07122A861C6E

8.) Money As Debt 2: what money is & why we are bankers' slaves - YouTube
https://www.youtube.com/watch?v=LOa02nPWFbw

9.) ShadowGovernmentStatistics.com - reputable site debunking accuracy of government economic statistical data and giving more accurate numbers instead.
http://www.shadowstats.com/

10.) Author«WEB OF DEBT BLOG - Ellen Hodgson Brown - An attorney who traced the trail of systemic perfidy back to the financial system. Advocate of public banking and a participant in the Common Good Banking project.
http://www.webofdebt.com/

11.) Charles Eisenstein -  Contemporary advocate of a negative interest money system which is the real solution to the illusory worldwide economic problem.  Book available online.
http://sacred-economics.com/ 


12.) Manfred Max-Neef  - Chilean economist who recognizes the vast philosophical/ethical deficiencies of the current system, though may not realize how simple the solution really is.
http://www.max-neef.cl/ 



13.) Margrit Kennedy - Advocate of local interest free currency systems-  Author with Bernard Lietaer of "People Money".   Passed away a few years ago.

http://www.margritkennedy.de/



14.) The Sustainable Economics Magazine 

http://www.sustecweb.co.uk/

15.) Money Myths - Site dedicated to debunking the propaganda and myths of the current monetary system.  This means the entire field, basically. Topic which John Kenneth Galbraith referred to as the mind-repellingly simple truth which was deliberately being obscured in the field of economics - namely the magically unreal creation process of money itself.

http://moneymyths.org.uk/ 


16.) Global Research.ca - Web page of site dedicated to topics which are "overlooked" by the mainstream press and so are not given the notice they deserve. This page reveals the true nature and function of the Federal Reserve as shown by its actual ownership rather than the misleading debate/misinformation about its supposed quasi-governmental character.  Out of 180 countries all but 7 have central banks-this indicates both the wealth and the strength of motivation of these families.

http://www.globalresearch.ca/the-federal-reserve-cartel-the-eight-families/25080




The following sources are for those with an eye to truth no matter where it leads.  Not for your average Nobel Prizewinning economist -


The Money Masters - A 3.5 hour documentary about the historical malfeasance of the Bankers, including the Rothschilds.  Well-known in certain circles - http://www.youtube.com/watch?v=EeIM-4hJO44 

Freedom to Fascism - A documentary by Aaron Russo of the IRS's legal authority to collect taxes from the American people. For those that follow the taxation challenges that appear in the news occasionally, very educational.  "You'd better or else." is not a very legalistic argument though it seems the world mainly seems to run on this dictum these days - http://www.youtube.com/watch?v=O6ayb02bwp0 .  We are still two steps away from the cave.



***It has recently been brought to my attention that there is a group that has been working behind the scenes for quite some time to document and bring the longstanding and ubiquitous malfeasance of the Bankers to light through legal channels, thereby reclaiming mankind's sovereignty. This group has recently apparently achieved this goal last year, implying that the world's financial system/economy is merely a dead man walking at this point since its essentially immoral quality has been exposed at the highest levels and therefore invalidated by its failure to meet its own minimum standards of contractual fair dealing.  If true (and full verification is yet to be made) the next several years will prove to be quite full of promise as the People's fraudulently stolen assets and lives will be rightfully returned to them and the opportunity to put proper economic systems into place will come into being.  It may be the first major milestone in the development to the next level of Humanity and is really what the Occupy movement was trying to achieve, even thought they really did not seem to fully realize this basic fact.  The group's website is http://www.i-uv.com.  It is also known as the One People's Public Trust - (OPPT) .  There are many Youtube videos as well - http://www.wakeup-world.com is also a good resource on the subject.  Again, full verification is yet to be fully made, but the signs are there for the entire financial system to collapse due to the great malfeasance at its center. 


    The recent disclosure by Karen Hudes, formerly of the World Bank, that the entire world financial system is corrupt to the hilt, is also indicative of the unfortunate truth of the rottenness of the system.  Just a drip of the flood that is to come.  The entire system is rotten to the core, no matter western, eastern, top, bottom.  Let us hope we will have the time and the space to institute a much better one that will provide for everyone that which they need to live decent and dignified lives and thereby encourage truly civilized and democratic society around the world - http://www.youtube.com/watch?v=dGCvZuzShSc.  Her website is http://kahudes.net .


    The author, Nomi Prins, has come out with a book called  "All the Presidents' Bankers" which documents in a way hopefully acceptable to mainstream historians, the individuals within various Administrations who are really responsible for the terrible state of the nation and the world.  It has not made the splash this author hoped it would. Good reviews from the average person, however.  Another step in the right direction.  These areas of the nation's dealings have been dark for far too long in the purported leading democratic nation of the world.  A bit of sunlight would do much to changing the mind of the public as far as the real nature of the contemporary American Democracy.



   The Public Banking Institute – http://www.publicbankinginstitute.org/why_we_don_t_understand_money_and_debt_and_why_it_s_important_that_we_do?utm_campaign=pbinews22&utm_medium=email&utm_source=pbi .


   

    If one wishes to delve even deeper into the unbelievable, one can look here – http://www.educate-yourself.org under strawman. The main topic of interest is the essay by Mary Croft titled How I Managed to Beat Every Cash Confiscatory Agency Known to Man - http://thecrowhouse.com/Documents/mary-book.pdf, it is quite illuminating but may be hard to wrap one's head around if malfeasance by the bankers is new­ concept to one. Again, a warning for Economics Nobel Prize winners – this essay may cause extreme cognitive dissonance.




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