The emergent path toward peace, harmony and equity.

1. The emergent path toward peace, harmony and equity.

2. First, is its artificial scarcity. There is never enough money to allow every debtor to pay what is owed to the banks. The debt grows simply with the passage of time as interest compounds, but the supply of money to pay those loans plus interest can only be maintained as the banks make additional loans. These new loans have the same problem. Thus, businesses and individuals are forced to compete for markets and scarce money in a futile attempt to avoid defaulting on their debts. The system requires that some must fail. Capital wealth becomes ever more concentrated in giant corporate conglomerates, which must seek higher returns on their investments. They are driven to expand their markets and dominate economies, often through government's application of military power and "covert operations" to assure the continued flow of low-priced raw materials and the availability of low-cost labor. Prepared by Thomas H. Greco, Jr.

3. Second, the requirement that interestbe paid causes a net transfer of wealth from the debtor class to the moneyed class, or from producers to non-producers. Besides the direct payment of interest on their own debts, the poor and middle-class majority pay the cost of interest which must be added to the price at every stage of production. It is easy to show statistically that lower income households, because they are net debtors, pay much more interest than they receive, while those in the highest income brackets receive most of their income as interest returns on investmentsThird, the money created as bank creditis mis-allocated at its source. Much of it goes to finance government's deficit spending for weapons, military interventions, and transfer payments to corporate clients. Another large chunk is used to finance such things as real estate developments, which are presumably well collateralized, but are really supported by inflated land values and overblown prospects of profitability. Thus, we find an abundance of hotels, resorts, and upscale residential construction but a chronic shortage of affordable housing. Prepared by Thomas H. Greco, Jr.

4. Why Does Money Need to Be Reinvented? • Throughout the world, money has become an instrument of political power. • Money and banking are manipulated by and for limited private interests. • Political money is exploitative, dysfunctional, and undemocratic. Prepared by Thomas H. Greco, Jr.

5. Roots of Pyranomic Principles • Interest Concentrated by the Pyramid Vector • Inflation Dilution of Credit then absorption by the Pyramid Prepared by Thomas H. Greco, Jr.

6. Pyranomics is Dysfunctional and Exploitative • inefficient and inequitable – many needs go unmet because the flow is not shared so is deficient. • Periodic cycles of depression and inflation derive from the actions of central banks. • Money concentrates power and wealth – the rich get richer; everyone else gets poorer. • Who decides whose interests will be favored? • Conventional political money causes social and international conflict and ecological destruction. Prepared by Thomas H. Greco, Jr.

7. Solving the Pyranomic Problem • Pyranomic nature of money, banking, credit, and exchange. • Credit centrally issued and controlled by States or Central banks. Prepared by Thomas H. Greco, Jr.

8. ConNexUS Free Currents • Political democracy can go no further in freeing man until it is itself emancipated by economic democracy whose sheathed sword is money. -- E. C. Riegel • Money is inherently free. When it comes, free and uncontrolled trade, stimulated by the hope of gain, will dissolve all our economic problems. -- E. C. Riegel Prepared by Thomas H. Greco, Jr.

9. What Is Money, Anyway? There are various ways to define money. Practical Definition – its distinguishing feature • Money is anything that is generally accepted in payment. Prepared by Thomas H. Greco, Jr.

10. What Is Money? Functional Definition – what money does Money is a: • Medium of exchange • Measure of value • Store of value Prepared by Thomas H. Greco, Jr.

11. What Is Money? Essential Definition – what money is • Money is credit that is allocated and managed through an accounting or information system Prepared by Thomas H. Greco, Jr.

12. The Primary Role of Money Is to Mediate Exchange • Exchange is a fundamental necessity in advanced civilizations. • Most of what we need, we get by trade. • When the division of labor has been once thoroughly established, it is but a very small part of a man’s wants which the produce of his own labor can supply.– Adam Smith, Wealth of Nations. Prepared by Thomas H. Greco, Jr.

13. How is Political Money Dysfunctional? • Money is kept artificially scarce. • Money is expensive because interest is charged. • Money is misallocated at its source. • Political money forces artificial growth. Prepared by Thomas H. Greco, Jr.

14. Why is Money Scarce? • Money, today, is mainly bank credit. • It is created when banks make “loans.” • “Borrowers” must pay interest on every dollar. Debt grows faster than the money supply. Prepared by Thomas H. Greco, Jr.

15. Why Is Money Expensive? • “Borrowers” must pay interest on every dollar of bank-credit money.This interest burden makes money expensive to use, and adds unnecessary costs to every stage of production and distribution. Prepared by Thomas H. Greco, Jr.

16. Pyranomics • Money are loans by banks. • The higher up the pyramid the better the terms low interest; minimal collateral, actual access the lower on the pyramid the worst terms you receive until at a certain level there are simply no terms to be received. You are locked out. Pyranomics starve productive enterprises flames destructive cycles. Holomid

17. Pyranomics ultimately destablize everything • Compound interest cause debts to grow with the passage of time, but the money supply can be expanded only by banks making additional loans, so the amount of money available to repay bank loans is always deficient. • Manipulation of interest rates upsets the natural adjustment mechanisms. • Monetization of government debt by banks dilutes the value of all money. Prepared by Thomas H. Greco, Jr.

18. Debt Grows Exponentially Debt Time Prepared by Thomas H. Greco, Jr.

19. Pyranomics • The apex predator monetizes collateral assets called loans. They charge for this through interest and deficit issuance. • Assets become interest generating debt money resulting in gowth as a bassic neccesity for Pyranomics to function, destabilizing the whole system. Prepared by Thomas H. Greco, Jr.

20. The Creation of Bank Debt-Money as Deposits Bank Account Deposit (liability) Debt Money Mortgage Note (asset) Mortgage note Banks now issue only debt money, not as notes, but in the form of bank “deposits” when a “loan” is granted. Prepared by Thomas H. Greco, Jr.

21. Wholonomic Exchange The exchange process liberated. • Sound and credible exchange media emerges from varieties of sources not limited by centralized power, governments or banks. Prepared by Thomas H. Greco, Jr.

22. Free exchange leads to greater justice, more efficiency in distributing goods and services. markets and money free from monopoly control. Prepared by Thomas H. Greco, Jr.

23. Wholonomic Hyperdimensional credit and value clearing/balancing Bypasses Pyranomic dysfunctionality Prepared by Thomas H. Greco, Jr.

24. Wholonomics eliminate the destructive nature of debt money • Mutual exchange networks Credit (MUTEN) ConNexUS Currents can reduce the need for conventional, bank-created, debt-money. • Wholonomics has the right of contract. Prepared by Thomas H. Greco, Jr.

25. Reinvented Currency Prepared by Thomas H. Greco, Jr.

26. Wholonomic Wholos • interest-free or negative interest are spent into circulation. • Independent of outside manipulation of interest rates and money supply. • Automatically allocated to benefit the needs of the whole. • recirculate locally to globally promoting the health of the entire local Wholomid AND collective Wholomid. Prepared by Thomas H. Greco, Jr.

27. Advantages • Abundant supply • Created as needed, they supplement the supply of scarce official currency. • Low cost, no interest • Democratically allocated • Gives local suppliers preference over imports • Reduced risk of default – A promise to deliver goods or services is less speculative than a promise to repay a loan of money. Prepared by Thomas H. Greco, Jr.

28. Tasks • Organize as mutual credit clearing network. • issue currencies • Mutual aid and barter. • trading “fairs.” Prepared by Thomas H. Greco, Jr.

29. The Business Community • Form mutual credit associations for clearing payments due to one another. • Issue “purchasing certificates” or community currency to the general public, backed by their ability to provide goods and services. Prepared by Thomas H. Greco, Jr.

30. Local and Regional Governments • Issue “tax credit certificates” or “tax anticipation warrants” to finance operations. • Issue “community improvement bonds” to finance infrastructure developments. Prepared by Thomas H. Greco, Jr.

31. Tasks National Governments • Renounce legal tender laws. • Repeal laws that give privileged status to particular banks and currencies. • Do not interfere with private exchange systems or privately issued currencies. Prepared by Thomas H. Greco, Jr.

32. issue own currency, in amounts limited to anticipated revenues over a one year period. • currency directly from the treasury by spending it into circulation. • accept its currency back, at par, in payment. • no one else should be required to accept it at par. The market free to refuse it or discount it. Prepared by Thomas H. Greco, Jr.

33. Basic Requirements • Transparent operation and open records. • Properly issued on the basis of value being exchanged, in amounts proportionate to the goods and services produced and ready to be sold. • Clear agreement about the rights and responsibilities of the issuers and users. • Anyone who emits a currency must be willing to accept it back in payment, at par. Prepared by Thomas H. Greco, Jr.

34. Benefits • Multiple exchange alternatives lead to more efficient, lower cost exchange. • When exchange media are abundant, no real needs are left unsatisfied because of lack of money. • More equitable access to credit. • More equitable distribution of production. • Reduced unemployment. • The end of boom and bust cycles. Prepared by Thomas H. Greco, Jr.

35. What can You do? • Learn about this • Join or start a local Whologroup. • Promote among the local business community and municipal or provincial governments. • Lobby higher levels of government to eliminate special privileges in money and banking, and to remove legal impediments, if any, to private exchange alternatives. Prepared by Thomas H. Greco, Jr.

36. To Learn More and Keep Up-to-date on Developments • Explore the websites: ReinventingMoney.com circ2.home.mindspring.com • Read, Money: Understanding and Creating Alternatives to Legal Tender, by Thomas H. Greco, Jr. • Subscribe to one of the many related listserves. Prepared by Thomas H. Greco, Jr.