Saturday, 14 April 2012

1. How the "hydraulics" of the current Monetary systems of EURO and USD (which are owned by private banks) are LOCKED to create increasing debt

Most people do not really understand why the world is headed to increasing over-debt. Or they think that it is simply the fault of the borrowers, like unwise households, unsuccessful enterprises, or corrupt states (odious debt). But in reality all the above factors may simply create a faster path to over-debt, but they are not the major causes. Even with wise households, optimised financially enterprises, and honest with integrity governments, over-debt is unavoidable, and depends on particular pattern of "hydraulics" of the flow of the money in the current monetary systems.

The "hydraulics" that create over-debt are 
a) easy in their pattern and 
b) easy to understand why this pattern is repeated. 

1) The "hydraulics" or pattern of flow of money, that creates the pathogens and black-hole of over-debt is the lending of the majority of newly printed-issued  money by the Central Bank, to private banks (or the public sector) , that in their turn lend it again ( a domino effect of lending, or a "multiplier" of lending). This leads  e.g.  the European enterprises to have in average 66% of the assets as liabilities. This 66% means that although from the legal point of view the owners of the enterprise own all the assets, from the financial point of view mainly they do not own their assets and mainly are doing business for the lenders. This leads to alienation and inability to take true financial responsibility of their own business. In a monetary system cured from over-debt and normalized by democratization, the normal percentage of liabilities to total assets would be less than 33% , which means that their assets are not own only legally but financial as well at their major part. 

2) The "hydraulics" that would avoid over-debt, would be that the Central Bank being a non-profit organization belonging to the state, and which is not allowed to lend with interest the newly printed-issued money, but it is obliged to distribute it mainly through subsides and investments (when ever it is printing-issuing  new money) to the public sector, which in its turn is distributing it through investments , subsidies and public services, to private enterprises, and households. And even better, there is a special public non-profit organisation that distributes directly the newly printed money by the Central Bank, to the public sector, private enterprises, and households, not as debt but rather as a kind of subsidy, under transparent,  laws and rules. In such a healthy monetary system,   e.g.  the European enterprises would have in the average less than 33% of the assets as liabilities, which would make them stable, in "earthquakes" in the evolution of the economic system.

It is little known to the public, that the majority of the paper-money that have in their wallet or bank account (either if they have liabilities or not as a household) is recorded from some major bank in a loan to be returned to the central bank!

Of course it will never be returned, because it must never be returned, as the money should circulate; that is the role of money to circulate, in a any live economy. And obviously this means that in some crisis of the industrial and technological evolution, some public sector, or enterprise, or household, will bankrupt. 

The reason that the pathogens of 1) is happening repeatedly, and not the healthier 2) is again simple to understand:

3) The owner of the Central Bank is not the state, but mainly the private banks. So there is strong (not only financial but mainly power) interest from the owners of the Central Bank, that the newly printed money, is lent to the owners of the Central Bank again, in other words, the major private banks, which in their turn will lend it to the public sector, enterprises, and households, to gain interest, and create over-debt.

To make expressions short and skip the many words, the formula (or "hydraulics") that describe the corruption that creates the over-debt is

Over-debt=(I_print_money+I_lend_the_printed_money)^(n-times repetition)

And the corruption here is not on the "I_print_money" part isolated , but rather on the I_lend_the_printed_money part.

With the above tactic, the flow of the newly printed money is forced to be mainly through debt, and so over-debt is created.

In this way every central monetary bank for each state or group of states with the same currency, may become, metaphorically speaking   "the Minotaur or Tyrannosaur Rex of the kingdom": a monster that consumes the children of the country.

See e.g. the euro, at the site of the European Central Bank (ECB)

In the annual report it is recorded that every year the  ECB is issuing new banknotes, that when converted to bank-money (at a fractional reserve rule of 10, that is multiplying them by 10) it gives at least 15% new currency every year. If the ECB would be a non-profit organization, belonging to all the European states of euro, then these money would go directly to the public sectors, without borrowing and interest rates. No over-debt would exist in the societies!

Surprisingly for most people that read newspapers and are informed by the mass-media (that mostly belong to the owners of the central banks...) the over-debt phenomenon is more than 80% systemic of the (banks)-(central bank) interplay and less than 20% behavioral of the borrowers.
Those that repeat the  over-debt is a behavioral pathogen of the borrowers, are enemies of the people and countries. They support the intentions of divide-and-conquer from the real guilty groups towards  the victims of over-debt. The people and the countries are forced to resort to borrowing, because it is necessary to utilize money,  to proceed with the production of goods and services, inventions and discovery of new technologies  and so as to advance the quality of life in the civilization.

The money in the current monetary system of USD and EURO are issued or "printed" in the following 3 methods
1) The public state issues the metal coins (what is left from the times that the public state only had the right to issue money, which was at the moment of issuing, public good belonging to all, not private good).
2) The banks issue money through the fractional reserve rule, whenever they lend money (that they do not really have), and borrow automatically money from the central bank that is immediately  "printed" or rather issued, by the central bank.
3) The central bank itself is issuing money either in public  or hidden in a classified way with no  transparent rules.
After all the states do not seem to have the right to ask for a financial auditing of the central bank, neither this has ever happened!

For an excellent detailed description of the the US monetary system (FED) works see e.g.

A book about the mechanics of issuing money in the monetaray system, published by the federal reserve bank of Chicago. (Title "modern money mechanics" , pages 50),d.d2k

Here a short video with almost the same ideas from the french intelligentsia

Examples of central banks that are entirely owned by the state as it should are, those of China, Russia, Canada, Australia, Iran , New Zealand, Norway (royal). In Switzerland  and Japan the public sector owns only 55% of the central bank, and these cases that the private sector instead essentially owns the public sector ins in spite of the 55% .  etc

And as we may notice in the links below in the monetary systems of the above economies that have the central banked owned completely by the statethe national debt is less than 33% of the GDP in most cases and in only two case less than 50%. That the central bank should belong to the people, and the state is the first step. The second is that it never lends more than 20% of the newly issued currency annually.

The previous monetary systems that have public central banks , have saved the public sector from over-debt  BUT NOT THE PRIVATE SECTOR. We will see in post 3, and 4 and in conclusion 9,  how the private sector can be saved too. 

If we make the equation money=blood, then we may imagine the whole of a nation as being a single human being. Then the current privatised monetary systems would correspond to someone having taken the liver outside the body, putting it in an artificial pump, and demanding to the human being: I will produce blood for you , but you will have to borrow it, and for every single drop that you will need, you will have to give it back with additional interest in blood. There is no doubt that not only the life of this human being is totally depended on the external owner of his liver, but also that he is condemned to death, as it is not possible for him to produce blood, and give it back as interest for the blood he is using. 

As an alternative metaphor, we can say that what the private central banks are doing in a society (like ECB and FED) can be compared with someone who suddenly has the monopoly of all the solar energy! In other words, it is decided wit an outrageous agreement , that all the solar energy will belong only to a private groups for profit, anyone who collects it, is equivalent to borrowing it from them, and has to return it plus an interest! No doubt that in this way everybody is condemned to bankruptcy sooner or later. 

This monopolist situation creates "The trick of the Draconian measures". Which is the next plan: With the situation that the central banks of euro is creating in the economy, we create a debt-crisis, and then we ask for "Draconian Measures", that is severe emergency measures (like utterly destructive thrift , or obligatory overwhelming borrowing etc)  that give us the opportunity to pass what we really want (like buying the strategic productive units of a society).

To understand in very simple (simulation) way how the over-debt is created in society from the central banks, let us imagine two super-simple game cases
1) Case A: The normal society is say 11 people, from which one person  plays the role  the state, and one person represents the rest of the world. The person that represents the state  has the privilege to "print"  money, and when he does, he is giving the money by dividing it equally, to every other person, in the group of the 11 people. The person that represents the rest of the world,  each time he gets money he  is destroying them (which corresponds to currency diffused to the rest of the world and never returned in the society). The  group is left to execute randomly transactions between them for say 6 hours.
2) Case B: The abnormal current over-debt monetary system society is again a group of 11 people as before, and  again one person represents the rest of the world, and each time  he gets money he  is destroying them. Nevertheless in this case B, of 11-persons  group the person that represent the state, does not have the privilege to print money. Another person which represent the central monetary bank does have this privilege. And each time he is printing money, he is lending it to 4 other person in the group who represent the banks of the society and who in their turn may lend part or all of the borrowed money. Again we let the group to  to execute randomly transactions between them for say 6 hours.

It is obvious after 6 hours of transactions which group of 11-persons will have high levels of over-debt and which group of 11-persons will not. Obviously the case B group will have  significantly higher levels of over-debt, compared to the case A group, that may have low debt levels. 

The central banks have subtracted the right to money from the states and public economies , and are able to issue as much money as it is demanded and even more as they want, and then lend it  to every one else, who does not have the right to issue money, but are obliged to utilize money. In the way the central banks have become the supreme BLACK HOLES , PARASITES , CANCER and DEBT-CONTAMINATORS  of the economies.  The central banks simply KEEP STABLE THE CREATION OF THE RE-OCCURRING   DEBT CRISIS. The do not cure them they simply create them and keep stable that are created They are the main source of creating overwhelming debt in the societies, as this is what they do, the lend, the issued currency which is claimed that they own it , for profit. We shall see in post 3,4 how the role of matching those willing to lend money and those willing to borrow money can be served, through the web, by other type of enterprises similar to real estate brokers, and abolish completely  the current role of the banking system.
The private central banks like FED, and ECB,  1) Have made the public economy to be non self-sustained, and autonomous 2) has created overwhelming debt for both the private sector and the public economics 3) has deprived vast amounts of money and wealth from both the the private sector and the public economy 4) Is the major source of economic inequalities in the economies. 5) Are the stable and consistent creators of debt-crises.

Here are two  excellent cartoons on the topic of this Blog for a non-serious way, to give the idea.

Money as debt:

The zeitgeist movies

David Icke, on the unfair monstrosity of the banking and monetary system.

There are rumors that the negative will behind the central banks goes far beyond our planetary civilization. Here is the relevant link

The banking cartel of the central monetary bank, in other words the monetary system, is so designed so as to increase the financial inequalities in society. It inherits an increasing over-debt to every body, then it is bailing-out, from over-debt, a minority of larger organizations that chose to be  associated to the banking cartel of the central bank , and is leaving to bankruptcy the rest of the world, of households, enterprises and even whole public states. For the damage in society of economic inequalities  see e.g. 

“Let me issue and control a nation’s money and I care not who writes the laws.” Mayer Amschel Rothschild (1744-1812), founder of the House of Rothschild.
“The few who understand the system will either be so interested in its profits or be so dependent upon its favors that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.” The Rothschild brothers of London writing to associates in New York, 1863.
Money is a new form of slavery, from the old simply by the fact that it is impersonal – that there is no human relation between master and slave.” Leo Tolstoy, Russian writer.

"The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity.Abraham Lincoln

"Issue of currency should be lodged with the government and be protected from domination by Wall Street. We are opposed to…provisions [which] would place our currency and credit system in private hands.Theodore Roosevelt

Despite these warnings, Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote: "I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of  credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most  completely controlled and dominated Governments in the civilized world no longer a  Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.Woodrow  Wilson

"The real truth of the matter is,as you and I know, that a financial element in the large centers has owned the government ever since the days of Andrew Jackson…Franklin D. Roosevelt (in a letter to Colonel House, dated November 21, 1933)

The power of the private sector enterprises (like the private central banks, and sub-banking system), over the public state, govermnent and economics is a the very definition of fascism, according to Mussolini!

The problem of a monetary system locked to create overdebt is no small problem for humanity.

Here is the list of the 7 major problems of humanity right now

1) Child mortality and overpopulation
2) Outdated nutrition model based on animal tyranny or  animal slavery.
3) Degradation and destruction of the ecological biosphere.
4) Outdated energy model with high CO2 emmissions.
5) Climate crisis based on CO2 emissions.
6) Over-monetization of life and a monetary system,  where the private sector and not the people have the priviledge to print money and the laws around the central banks, (which are owned by private banks), that create over-debt economies, forcing the public sector, enterprises and households, to borrow from the banks, the newly printed money, which essentially should belong to them by right .
7)  Brutal or  subtly hidden tyranny

A very brave and remarkably successful, for one only man, working for the resolution of the above issues of the current state of humanity and the planet was the  comprehensive anticipatory design scientist Buckminster Fuller (1895-1983). 
He was  very good example of the psychology of the planetary scale human being, in the service of the totality of humanity and the planet. 
Buckminster Fuller  may be considered that he  introduced of a new science and discipline that may be called
Global Design for the prosperity of all humanity, and life on  the planet.

Speculating about how the rest of the financial system, should be so as to function in a more healthy , stable and solvent way, here is an extract from a blog about ecological communities and their "internal macroeconomics". From these remarks we can easily deduce how the global economic system was initially intented to be.


We may have to remind to  ourselves, in this economic crisis, the basic operating principles of the current societies.


"The reality of the experience of life, is based on a system of spiritual and perhaps subconscious (implicit) or  explicit beliefs. Changing these beliefs will result in changing our reality and changing our fate. "

    This principle is crucial, as it determines that the society is to function without violating civil liberties. The seven basic personal freedoms are
1.1) The spiritual freedom (freedom of religion)
1.2) H freedom of political decision (Democracy, or rather direct-democracy)
1.3) The   freedom of he creative-expressions (freedom of speech)
1.4) The moral freedom (freedom from fear)
1.5) Economic freedom (freedom from  want)
1.6) The physical freedom (actions, activities).
1.7) The freedom of private property (having).

(Here Roosevelt is stating 4 of the essential freedoms
          Because of 7th individual freedom of private property, it is necessary the use of some form of money (not necessarily banking money). It is the nature of money and of the free market to create economic inequalities. If there was no private property, then we would not need to use some form of money and the economic and living standards inequalities  would not be inevitable. Only political power , especially direct democracy can  tame and reduce economic inequalities. Not the oligarchic economic power itself. Inequalities in society (economic, authoritarian, other social power etc.) is a source of misery, unhappiness, crime, lack of trust, mental illness, etc. The current social  inequalities are not identical with the actual psychic  meritocracy. A society with many inequalities has slower evolution  and is a less advanced civilization, compared to  a society with fewer inequalities. E.g. the killing capacity inequalities for survival in the jungle is a system of most slow collective evolution. From this principle it follows, that a monarchical or oligarchic society evolves more slowly than a democratic society. And   at least for this reason democracy  is preferred. Money and the economic power, can not unite people and bring prosperity, because it is in the nature of money to create  inequalities. The political power, particularly of direct democracy can tame and control  the economic inequalities with laws and institutions and bring more justice. The principle of equality applies also on to that all citizens are equal as far as the laws are concerned.

         This principle suggests that the primary treatment of each of our fellow man is positive and not negative. The morality of  mercy, compassion, and positive empathy is a key element, creating equality and the ability to combine up individual talents into a collective civilization of the society, so that  conversely each person can benefit at maximum from the society.


           The power is not only the political power i.e. the legislative and the executive, but there are very significant other powers, such as economic (private sector), military, religious, and the authorities of the function of the state (public authorities, and services, justice, police, etc. ). To these we can add the more impersonal, like th power of science and technology.
 Furthermore we may distinguish the powers to
1) From people to people
 2) From people in inorganic physical reality.
Based on the principle of equality, the second type of power is ore appropriate and ideal for the humans compared with first type.
The powers have priorities and reversing these priorities can and has became a source of misery , unhappiness and crimes. E.g. The economic power (the private sector) should not take precedence and override the political power, or the political power to succumb and bend to the oligarchic economic power. Political power has the top priority among all. Money and the economic power, can not unite people and bring prosperity, because it is in the nature of money to create inequalities. The political power, particularly that of the direct democracy can tame and control  the economic inequalities with laws and institutions and bring more justice.
BUT every form of power, and the political also,  exists so as to serve  the human  (immortal) soul and its evolution. Power is not an end in itself.

       5) THE PRINCIPLE OF CONSISTENCY (Justice, education etc.)
           Society would be neither serious nor viable, if it did not practice  the principle of consistency. This means does not mean only that law should be enforced with  justice. E.g. in education, the principle of consistency means that, all the knowledge that is essential and crucial  for the survival of the civilization, must pass across the totality of the new generation. Not only the basic and elementary knowledge while the rest and more advanced to  a minority only. This maximizes survivability and the successful continuation of the civilization.

    According to this principle, every individual has not only rights in society but also obligations. The basic obligation of each person which is also a virtue, is the participation in society and its functions. The person should tend to be social. Each individual is offering to the society according to his abilities, and is receiving from the society according to his needs. On the other hand, this principle, pushes the society to participate in wider sets of other societies, based always on the respect of the above principles.


According to this principle, the small organizations (municipalities, local government, enterprises, universities, etc.) should tend to operate, in decision making, as the political democratic decision-making in the large scale public sector, and not vice versa.

The large scale, undertakes to decide only what the small scale is not in a position  to decide (subsidiarity). The larger the size of a society, the greater the opportunities, of a common person, to benefit  during the mortal life  from the society more than  what  he himself is able to offer to the society.

Here are some guidelines for the internal macro-economics and finances  of communities and federation of communities. Compared to the current in the societies they are renormalized, without the known pathogenesisWe write having in mind the eco-communities, but unavoidably we also get our model from an alternative macro-economic structure in all the society. We write having in mind the eco-communities, but unavoidably we also get our model from an alternative macro-economic structure in all the society.

Before we proceed to the details we state here some philosophical-sociological-economic ideas on which the next rules are based.

1)    The economic structure is essentially a power structure from human to humans rather than from humans to the physical reality. Money (as well as votes) can be defined as a technology of exercising of power from human beings to human beings and objects. Through that power of money  is established  the economic inequalities of to  the share of individuals and nations in the wealth of the planet.
2)     In a distant future development of individuals and society, there would be no need of power structures, besides the individual and the society as a whole. Neither it would be necessary to utilize money at all. But this is not applicable in a current state of evolution, where many individuals have strong desire and will to apply power over other people (or have other people apply power to them). If in the current state of evolution an economic system would allow only the power of the individual and the public state, without any intermediate private sector, it would occur, totalitarian and tyrannical phenomena  similar to those in the communistic Soviet Union and China.
3)     It is therefore almost unavoidable that intermediate power structures (“private sector”) must keep the balance to avoid tyranny. The organization units of this intermediate structure are shaped because of a) the individuals strong desire of power over other people b) through the “free market” game of “private property” and c) after the social law of universal attraction, that leads to a Pareto distribution of  volumes of power.
4)     In the current system to regulate this “private sector” power structure can be done through two tools a) money b) voting. (Both are "technologies of transfer and propagation of rights of power from humans over other humans and objects", which create power structures. But the voting tool is a bit more advanced, it is used mainly by the public sector, as it involves principles, expression, etc versus mainly only action that money involves).
5)     In a future more advanced evolution the regulation and creation of "private sector" power structures, can be done entirely through the tool of voting, while money may have been entirely eliminated.
6)     A “private sector” with intense power (economic) inequalities creates unhappiness, crimes, and violence. Any improvement from the current state to more evolved would involve lessening the power (or economic) inequalities.
7) Traditionally a small group of individuals that is in the highest  power  in the private sector, has less power than a small group of individuals that is
      in the highest power in the public sector. That is why  spiritually and in consciousness non-mature people are more dangerous when they are in the highest power in the public sector that when they are in the highest power in the private sector (see e.g. the ex Soviet Union). But if a society has to evolve normally, fast  and effectively with spiritually and in consciousness mature people in the highest power, then these people must be in the public sector rather than in the private sector. The more the individuals become more evolved and mature in spirit and consciousness, the more the public sector is safe to become and it becomes larger and stronger than the private sector. 

A. Morality renormalization at the scale of the individual and the household.1) Money is essentially destined to be exchanged with objects mainly, not so much with abstract intangible services, or other abstract values as "value of an enterprise" or "value of the whole of the community" etc. The more advanced the community , the more it will refrain from buying even human labor, as it is nothing else than soft-slavery. The human soul is involved in the human labor, and human existence in personal time. The abstract-use of money occurs not at the scale of household, but at the scale of enterprise (surplus wealth=capital=operational power, buy an enterprise) , domestic economy (buy.....a nation), and global economy (buy....the planet). The more advanced and uniform the community the less the use of money, the more the demonetisation. The abstract power of money (from the enterprise and above,surplus wealth=capital=operational power) may be substituted with the political power of voting. The more advanced the community, the more the economic interplay is shifted from win-lose or lose-win, to win-win or lose-lose. The more advanced the community, the less the financial differences.

2) There is a minimum household wealth that everyone has the right from birth till death. And there is a maximum household  wealth (which is also protected from any bankruptcy) . Any surplus wealth above the maximum household wealth, can be used for enterprises and business but not for the private household. Surplus wealth is  a weaker form of ownership compared to household wealth.

B. Monetary system macroeconomic renormalization
3) If the community or federation of communities is to issue  their own currency, then no private group can have this privilege other than the collective of the communities. There must be an reasonable frequent inventory of the objects of coins and paper-money, (not financial value) so that each time the communities "print" or issues new money, to replenish from the diffusion to external social environment or for other reason (increase of the population of the community etc) ,  only a limited percentage of it can be lent (e.g. <20%). The newly "printed" money is to circulate mainly  through investments, subsidies, payments etc. The above rules guarantee that the currency will not be led to non-solvent over-debt by issuing and lending 100% of the newly issued  money by any private subgroup. The currency is issued by the community with the following rules: For each person it is printed every month 3 equal amounts of currency (A,A,A) e.g. if A=1,000, then  1,000+1,000+1,000=3,000. The first 1,000 it is for the unconditional monthly income for the person, the second 1,000 for the community, and the 3rd 1,000 for the environment and the rest of the world. Each year the currency loses X% of its value (the percentage x%, is to be defined by collective decisions, and determines the amount of money M0 in circulation). We call this rule the gradido rule. The quantity A, can be defined by the formula  A=(a*W)/(3*Y*P)  where W is the total wealth as assets of the public state, in current prices, a is the percentage of the assets that should be in money (liquidity), e.g.a=20%-33%, and P is the total number of individuals in the society. The coefficient Y , is set , as if all money are saved simple mathematics prove that with X% annual decrease of the value of money, the accumulated money per individual is Y*A.  And the coefficient 3 is set, as money are issued in three amounts of A. The coefficient a and its adjustments, may be the object of political decisions. As alternative rule to the gradido rule , (called here the water-cycle rule) the amount of issued money per year, is exactly equal to the amount of decrease of the money in circulation, due to the annual X% decrease rule, that is X%*Amount_of_money_in circulation (here we mean M0 or M1 money, not M2, M3 or M4, that is banknotes and coins, and possibly bank deposits only). This rule makes money flow behave as the water-cycle in nature. The evaporation of water from the sea and the lakes, corresponds to  the rule of decrease by X%, while the monthly issuing of an equal amount of money which is given to each citizen, corresponds to the rain, that supposed to fall for all creatures.  Again as a further alternative, the money do not lose annually in an obligatory way any of its value, but a tax is set at the total wealth of each citizen or economic entity , and the three equal amounts paid monthly are derived exactly from the totality of this tax. The latter rule has the advantage, that foreign economies that keep currencies reserves from this nation, do not suffer from any loss of the value of this currency. Such monetary systems that are different in the details from the gradido monetary system , may be called cyclic-money monetary systemsWe must notice here that the current taxation systems, focuses on taxing the flow of money (services, sold goods , consumption etc) which makes the income of the state, highly unstable in crises. A more stable and simple system of taxation would depend more on the total wealth of each individual or economic entity, and less on the flow of money. 

3.1) There is a minimum size and a maximum size for a community that issues its own currency. The main reason is so as to avoid a big size difference from the wealth of each individual and the common wealth of the community, so as to avoid phenomena of totalitarianism as those in the ex Soviet Union.  This is also in accordance with the wisdom of the ancient Greek civilization, that considered cities not larger than a maximum size, as a basic feature of rational, balanced ensouled, and democratic civilization as contrasted to monstrous size cities, kingdoms, and steep Pareto distributions of wealth distribution that eventually create crime and violence. 

4) No classical banking business based on fractional reserve rules, is to occur with the currency of the communities. The only "banking business" intended (called here safe-keepers) is the historic initial role of the banks, in other words , individuals or groups may give their valuables and money, for safe keeping, and for this they must pay the safe-keepers reasonable fees. The safe-keepers do not have the right to lend any of the valuables that are deposited to them. The absence of the greedy banking  fractional reserve rule eliminates the classical instabilities of the financial system. Also enterprises that match lenders with borrowers, without any fractional reserve rule, and so that never the ownership of the lent money is not on the inter-mediating company, are healthy substitutes of banks. They maybe called money-mediators, but they are no banks!  As enterprises issue public-co-ownership (shares) and public-borrowing (bonds) (even outside any stock-exchange but always so that all shares and bonds are always bought and sold on the same price, so there are no any capital gains)  the role of banks for public lending of enterprises is redundant. The lending compared to investments is kept low (e.g. lending=0.25*investments) and it is always with zero interest rate. This guarantees that money circulates perpetually compatible with a sustainable permaculture, and not exponentially which is incompatible with natural resources long term behavior    

C. Enterprise, microeconomic renormalization.
5) Enterprises in the communities may be shaped, but to avoid the classical psychological and financial alienation, the shareholders mainly are the employees of the enterprise, External share-owners may exist up to e.g. 20% of the equity, and have less rights compared to internal shareholders.
Even better if all enterprises are non-profit type of enterprises.
The liabilities of the enterprises are limited always to less than 25%.  The liabilities plus the external owners cannot be in total more than the 33% of the assets.

5.1) Enterprises are of 3 sizes. Small, Medium and Large.
For medium and large size enterprises, in order to avoid decisional domination of a small group of shareholders to the rest, a quantitative rule, prohibits of individuals having significantly larger percentages from the rest of the shareholders.  The above rules make sure that the legal owners of an enterprise are also the real financial owners of it, so alienation is avoided. For the medium and large size enterprise to function in a democratic way (like democratic state rather than a totalitarian oligarchic state) the decision of a manager to take a position must be a double confidence election : Both from the higher rank managers, and from the lower rank employees. 
For medium and large size enterprises, the decisions to elect a board is not taken through voting  only by the owners, but through voting with appropriate weights of all the stakeholders (much as is done the voting and elections in Universities) In other words, the owners, the employees, appropriate samples of suppliers, and customers, and agents of the public state vote too. 
If a medium size enterprise grows to a large size enterprise, then automatically,  shares from the private owners (prefered of week ownership not strong ownership, see 2)) are transferred to the public state, as a type of donation, so that the public state owns at least 51% of he shares.

5.2) The totall accumulative assets of the private sector, P, cannot become larger than m-times the total assest of the public state. Or converselly the public state cannot become less than a particular size compared to the private sector.

5.3) The enterprises have also the right to issue currency as the public state has. (Actually a public state service, does so for the enterprise). In this way they do not have borrow from the state, or individuals, and so the private sector is  in equal setting as the public sector. If A is the amount that the public state issues currency for each person in 3 amounts (A,A,A) , then the enterprise also issues every month for each person of the enterprise (employees, owners etc) three amounts (B,B,B) to be used respectively as 1) persons salary, b) enterprise needs c) the environment and the rest of the world. The formula for B is as the formula for A, in other words B=(a*We)/(3*20*Pe), where We is the total assets of the enterprise, a is the percentage of assets as cash, and Pe is the total number of employees,  owners etc of the enterprise.  All enterprises utilize the same coefficient a. This currency too which is identical with the currency issued by the public state, loses its value by 50% every year so that we have asymptotically stable amount of currency and no creeping inflation. With the above rule the amount of money depends both on the population size and the volume of good and services produced in the society, so it is a mixed monetary system.

These rules are intended to a) give sufficient liquidity of money to the enterprises so that they do not resort to borrowing, b) decrease the economic inequalities c) make sure that no  private sector enterprise becomes stronger than the public state.

D. Stock exchanges and "free market"  macroeconoic renormalization.
6) Stock-Exchange phenomena may occur between enterprises, but as the historic term signifies, they are for the purpose of creating stable portfolios of business for each enterprise. (exchange of inventories)
To protect this original intention the next rule applies: Each share (security) is bought or sold only at the fixed accounting value. This value never changes or fluctuates, Thus any one buying shares cannot lose , only not gain(he will buy them and a price and will sell them at the same prices). What is expected to gain is the dividend from the operational profits of the business. The above rules make sure that enterprises are open up to some degree to the public, but at the same time there is no risky game that makes the majority losers and a very small minority winners. 

E. Cross currencies exchange rates global renormalization.
7) If different communities issue different currencies within a federation , their relative cross exchange rates is always equal to 1. This rule avoids  unfair abrupt devaluations or overvaluations simply from a minor demand supply interplay, to the currencies of whole communities. Furthermore that total imports and exports balance of each "domestic economy" is regulated in such a way, that never the net negative balance  (exports-imports) is more than Z% of the GDP, where the size of Z% is determined by a democratic collective decision. 

Final remark: The previous rules of renormalization, restrictive as may be, will have the effect to eliminate over-debt, economic bubbles, and instability. But they will not eliminate the economic inequalities, as this is the result of a) The "hunger" from people to have power and dominate other people, b)The existence of the game of private property c) a "free market" even restrictive as it is set-up as above. 

To set an example of a chorological estimation for the required time in global planetary evolution relevant not only to economics but also to all the principles and values in this Blog here is an example that covers all of the Aquarius Age of 2,000 years from 2,000 till 4,000 A.C. which is essentially a short description and variation of the visionary book by Paul Amadeous Dienach with title "The valley of the roses". 

2000-2300 A.D. Gradual resolution of the problems of overpopulation, ecological destruction, CO2 emissions and climate change, nutrition, tyranny brutal or subtle  and local wars. Through a new nobel prize in physics, the physical science discovers the equations of the unified aether-field (unification of electromagnetism, static gravitation, aethorodynamics or antigravity). It become also more clear that most of the energy of the gravitational field comes from the infrared  solar radiation.  In this way the old energy model with the CO2 emissions is substituted with a new from clean and cheap ubiquitous renewable energy.  Not only science can photograph now the aether , but also a large number of people have sufficient high frequency in their physical bodies, that can "switch to aether vision" with their naked physical eyes. The economic systems is gradually renormalized to more human, wise and really better intentions and implementations. People  gradually get free from the hastily race and slavery for financial survival, which does not leave time and energy for inner and spiritual self-development.  The massive carnivorous habits of humanity give place to a nutrition model closer to vegetarianism. The challenge here for the earthly civilization, is resolve the above difficulties as fast and as smooth as possible, avoiding a great scale war and disaster during 2000-2400 A.D.Also to avoid any early and on evil purpose World Government without first a global direct democracy, and global parliament , would be essentially a tyranny, from visible or invisible powers, that does not reflect the real evolution of the  human consciousness, with the excuse of urgent planetary problems, problems that may have been accentuated  on purpose by the same powers.  Before any global Government, a global consensus and global election-able Parliament must have been shaped first. 

The extinct  "tyrannosaurs"  here are 
1) The banking system with the fractional reserve rule and the monetary system as we know it
2) The uncontrollable child mortality
3) The old energy model with the CO2 emissions
4) The irresponsible destruction of the physical environment. 

2300-2400 A.D. Final establishment of a Global Planetary Parliament of a Global Planetary Direct Democracy which is realized with direct electronic-internet democracy elected by direct voting , random draw and rotation from all Nations. Its members are not politicians of businessmen , but scientists, engineers and technocrats and humanitarian philanthropists. The money, the banking system , the enterprises, the stock exchanges and the monetary system as we know it do not exist anymore. Nevertheless a kind if vote-money is used and the private sector and National Governments are kept as a counter balance of the power of the Global Parliament so as not have totalitarian phenomena like than in the old Soviet Union. The private property in a limited way, still exists, the planetary resources are re-distributed, a minimal basic standard of living is established for free for all people. The publicly known and open contact and affiliations with other galactic or extra-galactic civilizations is in a common public awareness and subject to democratic voting. 

The extinct  "tyrannosaurs"  here are 
1) The dominance of the businessmen and politicians as the leading approach for the global planetary welfare. 
2) The pretented planetary isolation from the rest of the galactic civilizations
3) That any type of conflict or big change in the civilizations should be always only through a war.

2400-2600 A.D The great challenge here for the earthly civilization from 2400 to 2600 A.D. is to avoid a global  totalitarian system similar or softer to the case of the old Soviet Union, or even worse a global tyranny e.g. through a crypto-piracy over the Global Parliament from evil powers. At the end of 2600 A.C. the private sectors and the national governments are almost of no importance anymore, people have acquired a planetary  consciousness  and the functions of the elected Global Parliament by direct voting, are increased, without the overall power structure  being a totalitarian system. It is not allowed anymore the buying and selling of human work-time as it is considered a form of indirect and partial slavery. All payments are in the form of dividends  The transportation inside and around  the planet, takes place  mainly through aether propulsion , and flying discs.

The extinct  "tyrannosaurs"  here are 
1) The dominance of the private sector in social life
2) The indirect and partial slavery of selling human work-time for a living. 

3) The dominance of any one only  national state as leader for the planetary welfare

2600-3400 A.D.  Although economic inequalities are almost non-existent there are still inequalities on the used level of technology. A large number of people have become telepathic in a natural way. Science has an unprecedented evolution. New truths are discovered about the interior of the earth, and its history going back  millions and billions of years. The  internal sun of the planet is discovered , and the large cavities from vegetation and animals of larger size than he corresponding of the surface of the planet. The first few cities in the interior of the earth are built. The medical science makes use less and less of drugs and pharmaceuticals and more and more of sound, color, light and meditation.  The people are still in spiritually weak and sluggish and continue to count the success of their life with the utilization of material possessions and technology. 

The extinct  "tyrannosaurs"  here are 
1) The "survival-race monster" in the life of the individual
2) The  "money standing" as the main factor and persuit in the individual's life

3400-4,000 A.D. The individuals acquire and develop  an unprecedented powerful spiritual ability that could be called Hyper-vision or Hyper-Intuition , that allows them the contact with the “Major spiritual light”, and “The Direct Knowledge” and gives them an stunning ability for powerful intentional clarity and creativity. A new universal inner visual voiceless, telepathic language is created for the first time.  A new Golden Age of the Civilization. Some of the  members of the Global Parliament are not anymore scientists or engineers but  Universal Creators”. In other words the synthesis in the same person of the talents and qualities of a Philosopher , Scientist, Artist, Mystic etc. During these centuries for the first time are created universal languages with alphabets that are 3-dimentional inner-vision-images, that are projected telepathically from mind to mind without external sound, writing, or internet. Science has by now discovered the inactivated and dormant DNA in the cell , it has being activated and restored, and the human DNA has now many more than two only strands, as it was initially. All in the society, not only the basics, are free, cloths, food, house, transportation, entertainment, scientific research, art-creativity, there is no  private property, the people are essentially vegetarian in nutrition habits , there is no animal slavery or zoos   etc. The science has now a glimpse of new transportation principles, that of "field gates" , that tranascend the flying discs technology. Especially as earthly people are informed about this transportation method by more advanced galactic civilizations. But although earthly science starts to have concepts about  it, they are far behind so as to apply it universally.   Those future people would seem naive to us, very sensitive , non-pretentious and without cunning ulterior motives in their relations while at the same time of elevated awareness. It is not possible to lie now to another man without being sensed. There are no material inequalities in the civilization. The only inequalities are of reputation,  honour, and public appraisal. People work not more than the current equivalent of two years in their entire life, and do not count their life long  success with material possessions but with the inner and outer spiritual self-development. Needless to say that the duration of the human life is remarkably longer, in an  undreamed way, compared to the duration of human life during e.g. the century 2000-2100 AD. 

The extinct  "tyrannosaurs"  here are 
1) The human intellectual inadequacy in the individuals life
2) The  indulgence to private interests, versus collective interests
3)  The "monster" of animal slavery and the opression  from humans to animals.

Of  course the above is simple an example of global time evolution. Personal or small groups time evolution may be different. The human history is full of examples of famous spiritual personalities like Pythagoras, Plato, Newton etc that although where in the present in their contemporary civilization, their spirits were far in the future . 

We may notice here a similarity pattern between he evolution of the age of Aquarius (2,000-4,000 A.D. and the age of Pisces 0-2000 A.D.) In the age of Pisces about at 4/20 of the age (4th century A.D. the Christian religion becomes formal and the official religion of the known world. It corresponds to the forecasting that about 4/20 of the age that is about 2400 A.D. the Global government is established on the planet. And as with the age of Pisces about at 16/20of the age  that is at the 17th century the enlightenment starts e.g. with I.Newton and the new sciences. Similarly for the age of Aquarius it is forecasted that by the 16/20 of the age that is at 3600 A.D. the hyper-vision is established on all humanity and a new enlightenment era starts. While for the age of Aquarius, in between 2400 A.D. to 3400 A.D. a kind of dark age is for humanity, exactly as it was in the age of Pisces, from 4th century A.D. till 1400 A.D. In short, the first (0%-25%) and last (0.75%-100%) parts of the age is from the side of light, while the middle part (25%-75%) is from the side of darkness! Both light and darkness seem to balance.


Here is the description of the gradido monetary system which is based on the economy of nature.