Unser
Politikblog | 04.03.2015
We
are at a turning point. The sovereign debt crises and the
humanitarian crises can be nearly completely overcome with a
combination of a debt reduction at the standard of the human rights
and with decisive changes of the giral money system. The logic of
scarcity comes to an end, and the selloff of the states can be
overcome. In times, when transnational corporations are richer than
states, the financing of states via banks is not up-to-date any more.
At
the 09.12.2014, the Austrian economic scientist Prof. Dr. Franz
Hörmann and the German human rights activists and bloggers Sarah
Luzia Hassel-Reusing and Volker Reusing have addressed themselves
together to the UN in a paper with two statements. See also the Welt
article mentioned below. Prof. Dr. Hörmann has shown, that the
hitherto money creation via the granting of loans by the banks takes
place out of nothing via the booking entry „demand“ |
„liability“. The liabilities of the banks, which are created that
way, are the hitherto giral money. The interests, however, are booked
to profit, so that, in our current money system, they have to be
earned via work in the real economy. The whole giral money always
only suffices for the repayment of the nominal value of the created
loans without interests. In addition to that, it follows from that
way of money creation, since every bank can create a manyfold of its
capital out of nothing, that already in our current debt money system
every bank is replacable (see statement by Prof. Dr. Hörmann and
section III. of the statement by Sarah Luzia Hassel-Reusing and
Volker Reusing). „Too big to fail“ is just a lie. The human
rights (e. g. to dignity, to life, to food, to health, to equality,
to property) are system relevant, not single banks.
Section
VI. of the paper proposes a three-step plan (first money creation to
equity for UN relief organizations to overcome the humanitarian
crises, second the same right also for the bankrupt debtor states
also limited to the humanitarian supply, third for the states, which
want it, the shift to the information money system, which has been
developed by Prof. Dr. Hörmann, which does not need any banks at
all, except for one democratical central bank per state). The paper
imagines the first step in a clearing unit, whose value would depend
on an international currency basket consisting of the currencies of
those countries,which would be willing, that the entrepreneurs
(farmers, doctors, pharma firmes etc.), who provide the goods and
services, can change the credits they get in the clearing unit, into
their currencies, in the second step the same rights also for the
bankrupt debtor countries, and in the third step the information
money as giral money besides the cash.
The
information money does not circulate, but it is deleted at the level
of the payer and newly created at the level of the payee. Since the
information money does not really circulate, but only fluctuate at
the level of the single market participant, it makes feasible
asymmetrical prices, which are bound to the fulfillment of social
human rights. That can be designed depending on the economical
system. One can introduce it with basically free market prices, i. e.
simulate the circulation, and make feasible, e. g., reduced prices
for existential goods for poor people, and in order to, at the same
time, grant the entrepreneur the full price, without using tax payer
money for that, or in order to reduce the wage costs for more
competitiveness without any reduction of the wages. If one makes the
application of asymmetrical prices dependened on referenda, one can
make sure, that this instrument is focused on the fulfillment of
those social rights, for which the public is willing to accept a
certain extent of inflation. On the other side, in the information
money system, in contrast to the debt money system, there is no new
interest pressure added on the prices.
Or
one goes a step further and uses the asymmetrical prices, in order to
democratically determine the equal payment for human work, and
focuses the competition on a quality competition. In addition, the
information money makes feasible to pay for cooperation for the
benefit of the public.
If
one wants to remain in the debt money system, we regard as necessary,
in addition to that, the limitation of the giral money creation to a
fixed figure per bank and year, which would very unbureacratically
force the bigger banks to deliberately split into smaller banks.
The
amount of debt reduction in the event of a state bankruptcy can,
according to our conviction, be lawfully done only at the standard of
the basic rights and human rights in the respective country. That
enforces a fair compromise instead of a preference of the private
creditors. If the debtor countries are obliged to measure the debt
reduction at the standard of the basic rights and human rights, then
the decision can also be made by the debtor country itself (sections
IV.+V. of our statement).
The
debt reduction at the standard of the human rights would go further,
than what is necessary to reach the Millenium Developement Goals, and
shall be supported by step 2 of our three-step-plan. The giral
information money, finally, would create enough space for sustainable
development.
The
reason for the statements of the 09.12.2014 has been the resolution
of the UN General Assembly of the 09.09.2014 for the creation of an
international state insolvency procedure, according to which the
developing countries want to prevent the prefered treatment of
„vulture funds“, and to reduce the debts to a level, which makes
feasible for them to reach the UN Millenium Development Goals and
sustainable developement (economic growth, social progress, and
environmental protection).
At
the same time, the resolution of the 09.09.2014 also demands the
strengthening of the international financial system (of the banks),
and that the international state insolvency procedure shall bring
more predictability in favour of the international financial system
(for the banks), that, for that purpose, the „costs of
non-compliance“ shall be further increased (no. 23), and that there
shall be no adverse incentives for „non-compliance“ (no. 24), and
it wants the cooperation of the IMF, the World Bank, and the private
creditors within the state insolvency procedure. See the Unser
Politikblog article of the 27.10.2014.
At
the 03./04.02.2015 has been the first working session for the
creation of the text of the treaty for the international state
insolvency procedure (see Pagina 12 article „Una jaula para los
buitres“ of the 21.01.2015).
A
concept for the state insolvency procedure, which is debated i. a. in
a working group at the UNCTAD level, comes from the NGO „Erlassjahr“.
In their concept, a proposal shall be filed by 3 arbitrators (like
in TTIP) per insolvent debtor country, who shall be bound to no human
rights at all. And the decision on their proposal shall then be made
by the assembly of the private creditors of the country (like in the
state insolvency procedure of the ESM of the eurozone). Erlassjahr,
however, claims, that they want the Millenium Developement Goals to
be reached. See the interview by Unser Politikblog for the „Macht
und Menschenrechte“ of the 25.09.2014.