The collapse of the legal tender
The dollar is a currency without value because it does not have and does not represent any real existing good but only bad debts in respect of public and private entities that have been granted loans: by banks that have lent U.S. dollars created from nothing and have received in exchange securities that can never be paid but only renewed.
The purchasing power of the dollar due solely to the fact that the majority of international trade is done in dollars, starting from raw materials and first of all the oil, in which, as a result of an agreement between the United States and the exporters countries oil is denominated in dollars.
Taking advantage of this purchasing power, the U.S. has issued you a totally disproportionate amount of dollars compared to their real economy (production of goods and services): in essence, the United States "produce" worthless U.S. dollars with which buy goods produced in other countries.
Because of his purchasing power, the dollar has become the main reserve currency of central banks that issue their legal tender backed by dollar deposits.
Therefore, not being nor representing real existing assets, all legal tender currencies no longer have any real value but represent only the value of the future work necessary to produce the goods and services that will can be paid with the same money.
The problem is that the amount of legal tender issued is far superior to the work that the existing labour force can provide and represents the work of several generations: to get an idea of the disproportion between the money supply and the real economy, suffice it to say that the financial mass is equal to more than 50 times the global GDP and exceeds the value of all the assets and resources of the entire planet.
Since all the legal tender currencies are based on the dollar, if the dollar collapses, would drop all legal tender currencies, including euro, pound, yen and yuan (China's currency reserves are 3,600 billion dollars, accounting for 50% of its GDP).
Now, because many oil-exporting countries (Russia, Iran, Venezuela, etc.) accept payment in currencies other than the dollar (euro, yen, yuan, etc.) and soon other OPEC countries will do the same, the collapse of dollar and, as a result, the collapse of all legal tender, is imminent.
What will be the effects of the collapse of legal tender?
The immediate effects will be:
1) The legal tender currencies lose any purchasing power;
2) Loans denominated in legal tender currencies will no longer have any value;
3) The value reserves (deposits, funds, etc.) in the legal currency will have no value;
4) The legal tender currencies will no longer be used as a means of exchange of goods and services and, therefore, can no longer be used to purchase goods for consumption and to finance new productive activities.
The collapse of the legal tender currencies will result in the total collapse of the capitalist system that, in fact, is based on money, the money that was once represented real wealth removed from work and accumulated in the capital, and now is only appearance.
From the ruins of capitalism, a new economy will rise, with a different mode of production and fairer relations between natural resources and energy, means of production, productive work and results of production, that is, a more equitable distribution of wealth.
To exchange goods and services, a currency that represents real existing values will need, a coin with which be possible to purchase goods and services to live and to finance new means of production. Will be the currency of labour.
Will be Dhana (www.dhana.org). Dhana is guaranteed since the issuance by capital of companies with a nominal value equal to one gram of platinum per one Dhana. So, Dhana is guaranteed by real existing values. Dhana represents one hour of normal work worldwide. So, Dhana serves to universalise the value of work. Dhana is assigned equally to every inhabitant of the planet at least 16 years of age (about 5 billion people): 100 Dhana to everyone. So, Dhana serves to start the redistribution of wealth. Dhana has an issue limit: 100 Dhana for every assignee plus 5% to be used only for humanitarian initiatives. So, 500 billion Dhana to be assigned and 25 billion Dhana for humanitarian aims are issue. In this way, the purchasing power of Dhana will increase over time. Dhana will be the currency of all the inhabitants of the planet.
Thus it will be. But, even before the collapse of legal tender, it needs to return the credit to its real function as a means of economic and non-speculation. Therefore, from July 10, 2012, is running EkaBank (www.ekabank.org) a system of universal credit on trust, without security, without interest and without charge to finance the real economy. EkaBank allows everyone to have money to live and to produce and, at the same time, prefigures the collapse of legal tender and paves the way to preserve the value of the money of those who have honestly earned through their work.
Friday, September 28, 2012.
Rodolfo Marusi Guareschi
Equity capital of group on April 10, 2011, EUR 22,861,259,050,453