Prof. Dr. Margrit Kennedy Using New Concepts WE Can Rule Money? Split 10.07.2012

1. Prof.Dr.Margrit Kennedy Using New Concepts WE Can Rule Money? Split 10.07.2012

3. Accordingto an IMF – Statistik 2011 between1970 und 2007 wehavehad 124 bankingcrises 326 currencycrises 64 debtcrises

4. Misconception 1:Money withintereestandcompoundinterestcangrowforever Thereexist different growth patterns in the material realm a. naturalgrowthalonecan betermedsustainable b. linear growthcanbe sustainedtemporarily c. exponentielles growth issooncomingto an end

5. 2. The Transparency Misconception Interest is paid only when we borrow money 1 Garbage Collection Fees Cost of interest on capital 12% 2 Drinking Water Costs Cost of interest on capital 38% • 3 Rent in Public Housing • Cost of interest on capital 77% Source: H Creutz

6. Misconception 3:Everybody is treated equally in the system Interest payments and Interest gains show large disparities: 80% of the population pays twice as much as they gain 10%gain more than twice as much as they pay Source: H Creutz

7. Continual Inflation Because of inflation, in the year 2001, every DM was worth only 20 Pfennigs… and this was the most stable currency in the world! Source: H Creutz

8. Excessive Increasein Foreign Exchange Transactions Source: Lietaer Of Human Wealth 2008

9. Exponentially growing Debt AND Assets

10. French government debt as % of GDP: Official debt versus debt computed without interest 1979-2009 

11. 1979 government debt was € 239 billion or 21 per cent of its GDP 2009, this had risen to € 1,088 billion or 78 per cent of its GDP. Had Article 25 of the Law of 3 January 1973 notbeen in force, the French government would have saved €1,306 billion in interest by 2009, and the country’s total public debt would only be 8.6 per cent of its GDP.

12. Components in Interest for Loans and Credit In the present money system Bank Fees 1.7% Risk Premium 0.8% Liquidity Premium 4.0% Inflationary Adjustment 1.5% Total 8.0% • In complementary money systems • Bank Fees 1.7% • Risk Premium 0.8% • Liquidity Premium 0.0% • Inflationary Adjustment 1.5% • Total 4.0%

13. Comparison of Credit Costsfor average German household with € 30.000 /year • interest costs of 40% € 12.000 / household /year • demurrage half of that € 6.000 / household /year

14. DesigningComplementary Currencies Creating new financial liquidity for a limited purpose LOCAL, REGIONAL and GLOBAL CURRENCIES orSECTORAL CURRENCIES

15. Sectoral CURRENCIES two examples Fureai-Kippu System, Japan WIR Wirtschaftsring, Switzerland

16. Fureai-Kippu = Care Ticketssince 1995in Japan supports care of elderly with help from younger people who get hour credits which canbe used at a laterdate in another part of the countryor by anotherperson

17. WIR-WIRTSCHAFTSRINGPARALLELCURRENCY SYSTEMamongsmalland medium businessessince 1934 in Switzerland15 Swiss regional WIR- organisations60.000 membersaverageturnover per year 1.6 bio WIR provestohaveanti-cyclicaleffectsupportspoliciesofgovernment

18. REGIONAL CURRENCIES: • partialdecoupling from globalized economy • increased use of regional products and services • added value and surpluses remain in the region • communitykeeps essential public utilities • closerlinks between consumer and producer • strengthening regional identity & diversity • reducing need for transport and energy

19. A First Model for Regional Currencies:The Wörgl Experiment Results in 13,5 months between 1932 - 1933: • Unemployment reduced by 25% • Town-Income increased by 35% • Public works investment rose by 220%

20. Regional money system based on vouchers Figuresfor 2011: Annual turnover 6 mio Euros 2.388 Members 600 Firms 200 Associations Donations 50.000 Chiemgauer Total since 2003 210.000 Chiemgauer

21. These five villages are supporting members paying their fees

22. A Solution to the financial crisis in Greece and other European countriesdeveloped by the initiators of the Chiemgauerhttp://www.eurorettung.org/

24. Express Money is unique in two ways: 1) Via its spending incentive - demurrage - monetary circulation is accelerated stimulating the economy. Doubling monetary velocity doubles GNP.

25. 2) Via the leakage inhibitorfeature an exchange fee for conversion into euro money stays in the country strengthening its economy and reducing its trade deficit

26. • more favorable interest rate than euro credits, thus facilitating economic investment. • quickly become the vehicle for domestic payment transactions.

27. Differences between COMPLEMENTARY and TRADITIONAL currencies 1:use-instead of profit-orientedlimited instead of general acceptancecirculation incentive instead ofinteresttransparentinstead of obscure creationdemocratic instead of central control

28. Differences between COMPLEMENTARY and TRADITIONAL currencies 2:inflation-resistantinstead of inflation-pronepromoting communityinstead of destroying it

29. Differences between COMPLEMENTARY and TRADITIONAL currencies 3: a win-win solution for everybody instead of only ten percent of the population

30. Sustainabilityofcomplexlivingsystems Optimum 100% Window of Vitality 0 % ResilienceEfficiency (Diversity + Interconnections) (Streamlined)

31. Sustainabilityofcomplexlivingsystems Optimum 100% Present Financial System 0 % Resilience Efficiency (Diversity + Interconnections) (Streamlined)

32. Sustainabilityofcomplexlivingsystems Optimum 100% EffectsofComplementary Currencies 0 % Resilience Efficiency (Diversity + interconnections) (Streamlined)

33. My change of perspective between 1987 und 2012

34. New Society Publishers Gabriola Island, Canada August 2012 more on: www.margritkennedy.de www.monneta.org www.kennedy-library.info