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 worth nothing.

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 them.

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 higher.

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 citizens pay.

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 flower.

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 currency.

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 and services.

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 problem.

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 services themselves.

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 capita wealth.

The issue cost can also be paid in hours of work, considering for all Countries one Dhana per each hour of normal work.

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 difficulty.

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

Rodolfo Marusi Guareschi

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