Michael Duerr: Practical Monetary Reform Experience and the Insights for a Possible Greek Solution

© DenkManufaktur AG, Schliersee / Bavaria: Any use of this material is very much appreciated!

Practical Monetary Reform experienceand insights into a possible Greek solution by Michael Dürr

www.denkman.com

Conference - „The Future of Money: What does the evidence teach.“Athens University of Economics and Business - Executive MBA & International MBA, January 24th 2013

© DenkManufaktur AG, Schliersee / Germany

Today´s Discussion

denkmanufaktur.net I 1

Transition agenda to get rid of the Greek odious debt situation and to restore democracy from debtocracy!

The Future of Money and it´s transformation by an activist central bank shareholder

Practical monetary reform experience in South Africa: transformation through the nationalisation of money - JUST MONEY proposal

Isolated island money reform: transformation in the Seychelles – JUST MONEY proposal thwarted by the IMF

Insights and a possible transformation in Greece -nationalised legal tender creation and the freedom of currencies

Alternative (complementary) currency blessing for Greece

JUSTMONEY

One solution: Bank of Greece – takeover or liquidation

First they ignore you, then they laugh at you, then they fight you, then you win. Describing the stages of a winning strategy of nonviolent

activism.


Source: DenkManufaktur AG - Research, Analysis, Insights denkmanufaktur.net I 2

is guaranteed by the nationalisation of the creation of money

The Future of Money ...

dated March 1935 was the 20th century guideline for the Future of Money: safe money, smoothed business-cycles, controlled inflation, seignorage in the public purse, public debt redeemed.

JUSTMONEY

Although academic results from Irving Fisher et al. are still valid, those findings had to be adapted to the 21st century and the necessities of electronic money. This is one possiblity:

Source: DenkManufaktur AG – Vorsprung durch Denken denkmanufaktur.net I 3

Leverage of ownership in a 100% privately owned central bank of a G20 country

... and the transformation by an activist central bank shareholder – part 1

JUSTMONEY

Own a central bank and have your say!

Source: DenkManufaktur AG – Your Global Think Authority denkmanufaktur.net I 4

Shareholders should ideally enhance the independence of the Reserve Bank

... and the transformation by an activist central bank shareholder – part 2

JUSTMONEY


Declare Money Supply M1 (means-of-payment) as sole legal tender

... and the transformation by nationalisationJUSTMONEY

19th century: nationalisation of coins

21st century: nationalisation of electronic money

20th century: nationalisation of banknotes

History and future of phasing out privately issued money in favour of public money

Bundesbank Act (latest version as amended on December 22nd 2011)

Systematic risk today: only banknotes are sole unrestricted legal tender

© DenkManufaktur AG - Vorsprung durch Denken

Today´s Discussion


„The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayer will be saved immense sums of interest. Money will cease to be master and become the servant of humanity.“ (Abraham Lincoln)






JUSTMONEY



Transformation through an instant 100% minimum reserve requirement

Practical monetary reform experience in South Africa:

Two shareholders of the South African Reserve Bank meet the President: he wants to understand and change (December 1st 2009)


The lessons learnt from this 6 year fight are helpful for a Greek solution

… and the subsequent problems in the transformation

The banking lobby (oligopoly) defends its turf and hits back: through the media, the Treasury and the Reserve Bank – even an agreement with the President gets vaporised


Today´s Discussion


„The issue of currency should be lodged with the government and be protected from domination by Wall Street“ (Theodore Roosevelt)






JUSTMONEY



JUST MONEY in competition to a Paris Club Agreement and the IMF

The isolated island money reform transformation in the Seychelles

Source: DenkManufaktur AG - Vorsprung durch Denken denkmanufaktur.net I 11

Now the Club (IMF, BIS, IIF, etc.) allows false flag operations to see the light of day

… JUST MONEY proposal thwarted by the IMF

The banking lobby (IMF) defends its turf and hits back: the lessons the IMF learnt due to the monetary reform evolution worldwide and the proposals presented in various countries


Today´s Discussion


„If Congress has the right under the Constitution to issue paper money, it was given to be used by themselves, not to be delegated to individuals or corporations“ (Andrew Jackson)






JUSTMONEY



The basis for a Greek monetary reform revolution is present and well informed

Insights and a possible transformation in Greece

The next documentary in 2013: 100% Money (aka Vollgeld, Just Money, Positive Money, The Chicago Plan Revisited, etc.)

2011: www.debtocracy.gr

2012: www.catastroika.com

> 2 millionviewers

?


A probable bank panic is when many commercial banks suffer runs

… a possible transformation: The Bank Run

Problems of the current and faulty fractional-reserve banking system

Minimum Reserve Requirements only 1%Deposit Insurance systems are a myth

Self-fulfilling prophecy when a bank run startsCurrent proposal by MoF to reduce cash payments to Euro 500 maximum

MoF plans to incentivise electronic payments in 2013

Banknotes in circulation (31.12.2012): Euro 23.576 billion

Greek population: 11.3 million

Euro banknotes per Greek citizen: Euro 2,086

Contingency cash available at any given time calculated by Bundesbank figures: 10-15%http://www.bundesbank.de/Redaktion/EN/Downloads/Publications/Monthly_Report/2011/2011_01_monthly_report.pdf?__blob=publicationFile(Monthly Report January 2011 - pages 29 to 41: Foreign demand for euro banknotes issued in Germany)

Contingency banknotes per

Greek citizen (using Bundesbank data):

Euro 210 to 315 per person

MORALHAZARD(excerpt: Wikipedia)


„It may not be rational to start a bank run, but it is rational to participate in one“ (Sir Mervyn King, Governor Bank of England)

… „The only way to stop a eurozone bank run“

„Case for a bloc-wide deposit insurance and bank resolution regime“ – this will not work

Source: DenkManufaktur AG - Vorsprung durch Denken denkmanufaktur.net I 16

Transformation with the support of a Greek version of 100% (Just) Money makes bank runs / panic obsolete

… nationalised legal tender creation and the freedom of new currencies

Nationalisation of toxic / problem assets or bad banks sell-by-date expired!

Nationalisation of the creation of money with a simultaneous introduction of free alternative / complementary currencies is the only way forward!

Local markets will determine the best solution to fit the Greek society and economy!

Monetary Diversity is the name of the game – variety is healthier and more stable!


Transition will be achieved through the right leverage and fulcrum

… use the ODIOUS DEBT situation - copy Correa style or create Venizelism 2.0

Odious Debt in the 21st century: from debtocracy back to democracy

Odious - when it is without knowledge of and benefit to the people plus lender knows about it

Use the illegality and illegitimacy of most of the debt due to the fact that it is odious

Create an audit committee to evaluate what debt is odious and what will be accepted

Use the examples and results from Argentine and Ecuador to learn for Greece

Support a Greek Rafael Correa: „boot the henchmen from the zombie institutions like the IMF“

Use the „Chopper“ as a symbol: Greece most recently got new helicopters anyway – on debt

Stop Merkiavelli, the Hellenic Republic Asset Development Fund and the Reichenbach task force

Give them a run for their debt money created by the MFIs, based on the fractional-reserve scheme

Venizelism 2.0: respect the law and use it against the plutocracy

© DenkManufaktur AG – Your Global Think Authority

Today´s Discussion


„History records that the money-changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance“(James Madison)






JUSTMONEY



Swiss cooperative WIR Bank as a model case for one electronic barter system


Founded in 1934 by 16 people as a cooperative basedon the system developed by JAK in Denmark 1931

Pioneer phase until 1952Demurrage (Silvio Gesell) until 1958

Growth phase until 1988

Innovation phase until today:

Membership 70,000 companies and since 1997 open to the public

WIR (since 2004 with ISO 4217 code: CHW)is not covered by the Swiss Franc (ISO code: CHF)

Immediate implementation by one of the 12 Greek coop banks (which comprise 40% of Greek banks)

www.wir.ch is only one example of an alternative currency to be copied

© DenkManufaktur AG - Vorsprung durch Denken

Today´s Discussion


„I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit“ (Woodrow Wilson)






JUSTMONEY



One step for a Greek monetary reform revolution is getting a BoG shareholder


Buy into the system and fight it as a shareholder:Bank of Greece shares → ISIN: GRS004013009

A takeover or liquidation of the Bank of Greece, listed at the Athens Stock Exchange, is theoretical, but the leverage and fulcrum of being a central bank shareholder is enormous.

75 shares grant one vote. The „Have a Say“ in your central bank would cost Euro 1,300. The AGM of BoG owners will be held on February 25th (shares to be registered 5 days before).

This will be a great short term opportunity and contribution for a Greek citizen to change the course of events, create more awareness and to personally vote for a money reform.

It will be a life-changing practical experience and one would gain first hand insights in the inner workings of a major puzzle piece in solving the Greek dilemma.

And the best of all, over the last month one would have made a profit of 35%.(share price at January 22nd 2013: Euro 17.45 compared to Euro 12.9 at December 21st 2012)


Takeover by the state or liquidation due to bankruptcy is part of the solution!

… this may seem unreal, but there is a logic behind it!

At its meeting on 21 January 2013, the General Council of the Bank of Greece approved the Bank’s audited Annual Accounts for the financial year ending 31 December 2012.


The End of Today´s Discussion -> Conclusions


„First they ignore you, then they laugh at you, then they fight you, then you win.“

100% (Just) Money will replace the fractional-reserve banking system

Alternative & complementary currencies will be allowed unconditional

Nationalisation of means-of-payment is a prerogative like coins and notes

Transformation is the most important issue – the academic base is sound

Greece is ripe for the monetary reform revolution needed for the change

Practical experience has to be used to avoid further ambush by MFIs

Greek transformation through a bank run or a bank panic very likely

Greek transformation through an activist shareholder approach (BoG)

Greek people have to take the pride back they deserve, get rid of the odious debt, free themselves from the shackle of the current system, create a debt- and interest-free currency, which can flow into the economy through public expenditure, avoid direct taxation and much more!

© DenkManufaktur AG, Schliersee / Bavaria: Any use of this material is very much appreciated!

Practical Monetary Reform experienceand insights into a possible Greek solution by Michael Dürr ([email protected])

www.denkman.com

Conference - „The Future of Money: What does the evidence teach.“Athens University of Economics and Business - Executive MBA & International MBA, January 24th 2013

Thank

you

Michael Duerr: Practical Monetary Reform Experience and the Insights for a Possible Greek Solution

Documents

future of money

nationalisation of money

futureof money

safe money

possible transformation

favour of public money

bank of greece takeover

denkmanufaktur ag research