To substitute actual currencies
Nothing is more wanted and accepted due
to ignorance as currency is. People don't know how currencies are produced, how
much they are worth and what guarantees them. Who knows, who knows currencies,
has one only interest: to keep the ignorance of those who don't know, because
his earnings come exactly from that ignorance.
Firms produce goods and services
they exchange with other goods and services. Banks produce currency. Central
banks produce paper or plastic banknotes. The other banks not even those: they
only register they have issued currency they lend in exchange of the receiver's
commitment to reimburse it with interests.
The fundamental difference between
banks and all the other firms is that firms become creditors due to the selling
of goods (wares) or to the performance of services with a real value, while
banks become creditors without giving any real value, because currency, set
aside it's a banknote or a simple book entry, is issued devoid of any value.
The other firms' credit rises from
the selling of goods or by performing a service in exchange of a deferred payment;
the banks' credit rises from the loan of a certain amount of currency that's
Why is the banks' currency worth
nothing? Because, when it's issued, it doesn't represent any value. The
banknotes issued by the central banks are simple paper or other material
tickets representing nothing else than the writings they carry. Practically
those banknotes are bills with no term, because the central bank will never pay
The currency issued by the other
banks, the so-called bank money, is nothing else than the simple credit entry
towards who has received a loan from the same bank.
When currency was convertible it
represented goods, gold or other real values. At a certain point convertible
currency wasn't enough and non-convertible currency started to be issued. Since
then, currency no more represents any kind of value and its exchange rate only
rises from the laws set in order to establish that any debt can be settled by
paying with that currency.
Because the issue of currency
didn't have to be limited in relation to the value it represented, the banks
issued an enormous amount of currency whose value keeps falling. The amount of
currency needed in order to pay for goods or for a service is therefore always
That's how inflation rises. Not
just the one rising from the drop of the exchange rate of a currency with all
the others but first of all the depreciation resulting from the currency's
purchase power loss towards goods and real services.
We've reached the point where the
circulating monetary mass is more than twenty times the value of the goods and
services exchanged each year on the planet and higher than the value of all the
existing things (natural resources and products) on Earth.
Why is that? Because at a certain
point the States, above all in order to finance wars, needed a quantity of
currency higher than the assets they had and than the incomes (coming from
taxes) they could receive in the future. So, according to the States, the only
way they cold have more currency was to issue directly or make the banks issue
more currency of what could have represented the total value of the assets they
owned and the incomes they previewed.
The paradox is that the banks
issue the currency with no value as an interest-bearing loan to the States.
This way the central banks issue banknotes and the other banks issue bank money
they then use to acquire State bonds (i.e. State debts). Indeed the States own
currency by giving in exchange bonds, by means of which they undertake to
reimburse the currency received, added of the interests.
The interests end up with the
expenditures of the States' budgets, which are covered by the taxes the
Basically, the banks make the
States pay interests on currency without real value and the States make their
citizens pay those interests.
In the last thirty years, the
States' debts (public debts) have increased by a higher scale than that of the
increase in produced wealth and the risk is that in future the States' debt
will get higher than the wealth produced in the entire world, as it already
happens in Italy and in other Countries.
Who earns from all this is the
banks. While the economy is in crisis, they keep earning the entire difference
between the interests they receive from the loans of inexistent currency and
the interests they pay on the deposits.
This difference is very high
because banks can lend currency for a value up to fifty times the one of the
deposits, i.e. for a banknote the bank system receives as deposit it lends more
than fifty of them of the same value.
This is why, it can be affirmed
that the banks take wealth away from real economy, which is the one that
produces goods and performs services.
Things can't keep going like this.
Not only because sooner or later people's ignorance will rip up but also
because at a certain point the currency issued without value will loose its
exchange value and people won't accept anymore to exchange goods and services
with that currency.
Today, we're half way from the
total inflation process. If the monetary mass shall double every year, we would
have the same effect of the lotus flower in a lake. Lotus flowers double every
year. At the beginning of the year in which all the lake's water will be
covered completely by the lotus flower, half the water is still uncovered and
very few people realise that in just one year all the water will be covered by
The monetary mass increases every
year by a scale lower than the one of the lotus flower, so its even more
dangerous, because not a few but very few are able to perceive the crash's
danger and even fewer are those able to find a solution.
It's impossible to guarantee the
currency currently in circulation. More than the 90% of this currency is
employed in currency exchanges. Practically almost the 45% of all the currency
in circulation is employed in the exchange of another 45% of the circulating
This 90% of circulating currency
doesn't represent any value. Its nominal value is due to the laws imposing its
acceptance as payment, that is the currency's so-called forced circulation. Its
exchange rate depends upon national economies, people's ignorance and also from
the fact that this 90% isn't employed in real economy, and therefore doesn't
cause a high monetary supply in relation to the demand of those offering goods
To consider the possibility of
going back to guarantee all currencies with gold or other precious metals means
thinking of a solution now impossible and therefore wrong in relation to a real
The only way to have a currency
with a real value is to issue a currency that represents or is guaranteed by
work or by its products, meaning for "work" those activities needed
to produce goods and services and for "work products" goods and
In order to prevent a predictable
monetary catastrophe, which would fatally provoke a financial and therefore
economic and productive collapse, the currency without real value will have to
be substituted with currency representing or guaranteed by real value, that is
work, goods and services.
Only Dhana currency has this
condition. The majority of the Dhana issued, are guaranteed by capitals of
firms, the kind of capitals representing the firms' assets (starting-up,
machinery and productive plants).
These capitals are denominated in
all national currencies, until they will be able to be denominated in Dhana.
To give Dhana a reference value,
it has been established that each issued Dhana will be guaranteed by a firm's
capital with nominal value par to 25 euro.
During year 2004, trade exchanges
occurred amounting to approximately eight thousand billions US Dollars, equal
to about six thousand billion Euro. The maximum quantity of Dhana to be issued
has been fixed to one-hundred Dhana for each inhabitant of the planet aged at
least sixteen, that in year 2005 will make almost five billions.
Therefore the Dhana will be issued
up to 500 billions, for a value equal to 12,500 billions Euro, par to about
16,500 billion US Dollars, more than double the total value of the goods and
services exchanges during year 2004.
Each inhabitant of the planet aged
at least sixteen will be assigned one hundred Dhana against the payment of just
the issue value, different for each Country proportionally to its average per
The issue cost can also be paid in
hours of work, considering for all Countries one Dhana per each hour of normal
Why the payment of the issuing
cost? For two reasons. The first reason is that ignorance does not allow
something received for nothing to be appreciated. The second is that the people
that provide their enterprise capitals to guarantee Dhana have the right to
renounce to the availability of those capitals but not to make their firms pay
Dhana's emission cost, in order not to put the enterprises' activities in
What shall be done then? Time has
come for people to collect information, understand, think, decide and act. And
to do so is very urgent. There's not much time anymore.
Naturally, the information about
nature and the function of currency can't be received from banks and from their
institutions, like some press, some radio and television companies and some
search engines on the Internet.
These subjects, accustomed to ooze
self-importance and arrogance, will try by any means to prevent people from
understanding the truth, a truth that is very simple but that escapes from
people's perception, that sees those subjects as the authorities to whom one
should refer for issues of monetary or financial kind.
Once the information is acquired
and things are understood as they are, the solutions have to be thought of. If
there are solutions better than Dhana, they are welcome. If not, Dhana will
have to be decided for. Quickly. In 2005, the world will be worse than before.
In average, people will have less purchase power, because the average inflation
rate will be higher than the average economic development rate. The States have
already decided to increase their debits and military expenses. Those
controlling resources (raw materials and energy) and worldwide trade will do
all they can in order to preserve their hegemony.
The substitution of national
currencies with Dhana shall be decided. It shall be done gradually but it shall
start strait away. The admiration and envy towards who's had the idea and who's
accepted to make the resources (capitals) disposable as guarantee of Dhana
shall be overcome. Each human being shall undertake the responsibility he has
towards himself, the people he cares and his destiny, which shouldn't depend
upon half a score of bankers which base their power on the peoples ignorance
and that choose governments and rules, deciding development and poverty, life
and future of each human being.
Then one shall act. One shall ask
for the assignation of Dhana and ask for it as payment, in exchange of other
currencies. The future of more than six billion people doesn't depend on who
has conceived Dhana, the Republic of the Earth and all the initiatives in order
to face the most felt and urgent problems of humanity; it doesn't depend on
those who made the resources disposable for these initiatives. The future
depends on you. Build your future. Do it together, because together it's possible.
January the 13th, 2005
World 2005 is at http://www.holosbank.org/unigov/world2005_download.html