“It is well enough that people of the nation donot understand our monetary system, for if theydid, I believe there would b...
•   Graduated with honors in Statistics,    Phd in Social Sciences and Social Research    - in late ‘90s worked with itali...
•   Graduated with honors in Statistics,    Phd in Social Sciences and Social Research    - in late ‘90s worked with itali...
•   Graduated with honors in Statistics,    Phd in Social Sciences and Social Research    - in late ‘90s worked with itali...
•   Graduated with honors in Statistics,    Phd in Social Sciences and Social Research    - in late ‘90s worked with itali...
•   Graduated with honors in Statistics,    Phd in Social Sciences and Social Research    - in late ‘90s worked with itali...
What is Money?
What is Money?1. The Alchemy of Money:  origins of the western monetary system
What is Money?1. The Alchemy of Money:  origins of the western monetary system2. Money and Environment:  why the nature of...
What is Money?1. The Alchemy of Money:  origins of the western monetary system2. Money and Environment:  why the nature of...
What is Money?1. The Alchemy of Money:  origins of the western monetary system2. Money and Environment:  why the nature of...
Banco Metalli E.C.
I the undersigned Enrico C.,      as owner of Banco Metalli E.C.declare that I will give back to the bearer   of this note...
The Alchemy of Money (England, 17th century)                                                            by Richard A. Wern...
The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.                   ...
The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“...
The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“...
The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“...
The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“...
The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“...
The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“...
The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“...
The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“...
The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“...
The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“...
What is Money?1. The Alchemy of Money:  origins of the western monetary system2. Money and Environment:  why the nature of...
What is Money?1. The Alchemy of Money:  origins of the western monetary system2. Money and Environment:  why the nature of...
MONEY SUPPLY
MONEY SUPPLY  CREDIT (Commercial Banks)  MONETARY BASE (Central Banks)
MONEY SUPPLY  CREDIT (Commercial Banks)  MONETARY BASE (Central Banks)                    90%                   10%
MONEY SUPPLY  CREDIT (Commercial Banks)       DEBT   INTERESTS  MONETARY BASE (Central Banks)                    90%      ...
MONEY SUPPLY  CREDIT (Commercial Banks)            DEBT           INTERESTS  MONETARY BASE (Central Banks)                ...
MONEY SUPPLY  CREDIT (Commercial Banks)            DEBT            INTERESTS  MONETARY BASE (Central Banks)               ...
£ $  !      MONEY      SUPPLY   =      DEBT                   (+ interests)
Deficit 2010: -26%Debt/GDP: 142%Debt/Revenues: 363%Rating: CCC-
Deficit 2010: -59%Debt/GDP: 93%DEBT/Revenues: 608%
Deficit 2010: -59%Debt/GDP: 93%DEBT/Revenues: 608%Rating: AAA+
Source: www.treasury.gov
Source: www.treasury.gov
2010
14500mld$            2010
14500mld$            14000mld$                        2010
14500mld$            14000mld$                                            2010                        3450mld$            ...
14500mld$            14000mld$                                                  2010                        3450mld$      ...
2010
201014500mld$   14000mld$                        3450mld$
60000mld$                                           2010            14500mld$   14000mld$                                 ...
MONEY SUPPLY = DEBT   ECONOMY                $               GDP
MONEY SUPPLY = DEBT   ECONOMY                $               GDP
MONEY SUPPLY = DEBT   ECONOMY                $               GDP
STRUCTURAL                       LIMIT                        (1)MONEY SUPPLY = DEBT         ECONOMY                $     ...
InvestimentsCurrent expensesInterests payment
InvestimentsCurrent expensesInterests payment
STRUCTURAL  LIMIT (2)  Investiments  Current expenses  Interests payment
STRUCTURAL  LIMIT (2)                             T                      The Triffin Dilemma  Investiments  Current expense...
What is Money?1. The Alchemy of Money:  origins of the western monetary system2. Money and Environment:  why the nature of...
What is Money?1. The Alchemy of Money:  origins of the western monetary system2. Money and Environment:  why the nature of...
Let us compare the conditions of Guernsey and its need a century ago, with the condition and need ofEngland today. When we...
Let us compare the conditions of Guernsey and its need a century ago, with the condition and need ofEngland today. When we...
MONEY SUPPLY       Economic Growth               £
MONEY SUPPLY       Economic Growth               £
=£     MONEY           DEBT $    SUPPLY       (+ interests)  !
=£     MONEY           DEBT $    SUPPLY       (+ interests)  !
=             £        MONEY                DEBT              $       SUPPLY            (+ interests)               !MONET...
MONETARY REFORM:1. Money creation by the Government (all of it and with no debt)
MONETARY REFORM:1. Money creation by the Government (all of it and with no debt)
1963              1865               1833MONETARY REFORM:1. Money creation by the Government (all of it and with no debt)
“I KILLED                                                          THE BANK!”                                             ...
Economic Growth             GDPMONETARY REFORM:1. Money creation by the Government (all of it and with no debt)
Economic Growth                    SOCIAL Growth             GDPMONETARY REFORM:1. Money creation by the Government (all o...
Economic Growth                    SOCIAL Growth             GDP                               1968MONETARY REFORM:1. Mone...
MONEY SUPPLY                                           INFLATION                                                £         ...
MONEY SUPPLY                                           INFLATIONMONETARY REFORM:1. Money creation by the Government (all o...
MONEY SUPPLYMONETARY REFORM:1. Money creation by the Government (all of it and with no debt)2. Replace GDP with a true ind...
SCARSITY                             POVERTY                           CONFLICTSMONETARY REFORM:1. Money creation by the G...
PROSPERITY                           WELLBEING                       SUSTAINABILITYMONETARY REFORM:1. Money creation by th...
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011
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What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011

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SLIDES from our lecture at Schumacher College, Dartington, Totnes (UK), 6th october 2011.
In the audience, students and teachers of the Master in Economics for Transition.

CLICK THIS LINK TO LISTEN TO THE AUDIO:
http://soundcloud.com/kaldarireport/whatismoney

Thanks
www.kaldarireport.com

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Transcript of "What is money? - Kaldari Report at Schumacher College (Totnes) - 6 oct 2011"

  1. 1. “It is well enough that people of the nation donot understand our monetary system, for if theydid, I believe there would be a revolution beforetomorrow morning.” Henry Ford
  2. 2. • Graduated with honors in Statistics, Phd in Social Sciences and Social Research - in late ‘90s worked with italian research institutes and contributed to to published works about political communication
  3. 3. • Graduated with honors in Statistics, Phd in Social Sciences and Social Research - in late ‘90s worked with italian research institutes and contributed to to published works about political communication• Musician, video-maker, producer, talent scout...
  4. 4. • Graduated with honors in Statistics, Phd in Social Sciences and Social Research - in late ‘90s worked with italian research institutes and contributed to to published works about political communication• Musician, video-maker, producer, talent scout...• Sales and Marketing executive - head of a 6 people sales&marketing team, selling high value services to leading international companies, local and central institutions
  5. 5. • Graduated with honors in Statistics, Phd in Social Sciences and Social Research - in late ‘90s worked with italian research institutes and contributed to to published works about political communication• Musician, video-maker, producer, talent scout...• Sales and Marketing executive - head of a 6 people sales&marketing team, selling high value services to leading international companies, local and central institutions• New media and web-reputation “expert” - worked as journalist for the first italian online local newspaper - co-founded the first italian online-media monitoring company - made speeches and lectures about new media and web-reputation
  6. 6. • Graduated with honors in Statistics, Phd in Social Sciences and Social Research - in late ‘90s worked with italian research institutes and contributed to to published works about political communication• Musician, video-maker, producer, talent scout...• Sales and Marketing executive - head of a 6 people sales&marketing team, selling high value services to leading international companies, local and central institutions• New media and web-reputation “expert” - worked as journalist for the first italian online local newspaper - co-founded the first italian online-media monitoring company - made speeches and lectures about new media and web-reputation• Member of the Board, Municipality of Gradara - in charge of Economic and Touristic Development
  7. 7. What is Money?
  8. 8. What is Money?1. The Alchemy of Money: origins of the western monetary system
  9. 9. What is Money?1. The Alchemy of Money: origins of the western monetary system2. Money and Environment: why the nature of money is the cause of the problem
  10. 10. What is Money?1. The Alchemy of Money: origins of the western monetary system2. Money and Environment: why the nature of money is the cause of the problem3. A New Money for a New World: how changing our money could be the solution
  11. 11. What is Money?1. The Alchemy of Money: origins of the western monetary system2. Money and Environment: why the nature of money is the cause of the problem3. A New Money for a New World: how changing our money could be the solution
  12. 12. Banco Metalli E.C.
  13. 13. I the undersigned Enrico C., as owner of Banco Metalli E.C.declare that I will give back to the bearer of this note on demand the sum of: one bar of pure gold Enrico C. Banco Metalli E.C.
  14. 14. The Alchemy of Money (England, 17th century) by Richard A. Werner, 2005 selected as “Global Leader for Tomorrow” at the World Economic Forum of Davos, in 2003
  15. 15. The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals. by Richard A. Werner, 2005 selected as “Global Leader for Tomorrow” at the World Economic Forum of Davos, in 2003
  16. 16. The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“note di banco”) start to circutalate as“paper money”, without intrinsic value. by Richard A. Werner, 2005 selected as “Global Leader for Tomorrow” at the World Economic Forum of Davos, in 2003
  17. 17. The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“note di banco”) start to circutalate as“paper money”, without intrinsic value.Rare withdrawals from their vaults allow themto lend their clients’ gold, by Richard A. Werner, 2005 selected as “Global Leader for Tomorrow” at the World Economic Forum of Davos, in 2003
  18. 18. The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“note di banco”) start to circutalate as“paper money”, without intrinsic value.Rare withdrawals from their vaults allow themto lend their clients’ gold,with an interest (pure profit), by Richard A. Werner, 2005 selected as “Global Leader for Tomorrow” at the World Economic Forum of Davos, in 2003
  19. 19. The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“note di banco”) start to circutalate as“paper money”, without intrinsic value.Rare withdrawals from their vaults allow themto lend their clients’ gold,with an interest (pure profit),printing “paper receipts” (or “banknotes”), by Richard A. Werner, 2005 selected as “Global Leader for Tomorrow” at the World Economic Forum of Davos, in 2003
  20. 20. The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“note di banco”) start to circutalate as“paper money”, without intrinsic value.Rare withdrawals from their vaults allow themto lend their clients’ gold,with an interest (pure profit),printing “paper receipts” (or “banknotes”),more then one time for each gold bar (“fractional reserve”), by Richard A. Werner, 2005 selected as “Global Leader for Tomorrow” at the World Economic Forum of Davos, in 2003
  21. 21. The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“note di banco”) start to circutalate as“paper money”, without intrinsic value.Rare withdrawals from their vaults allow themto lend their clients’ gold,with an interest (pure profit),printing “paper receipts” (or “banknotes”),more then one time for each gold bar (“fractional reserve”),asking “collaterals” as a guarantee of the loan (without risk). by Richard A. Werner, 2005 selected as “Global Leader for Tomorrow” at the World Economic Forum of Davos, in 2003
  22. 22. The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“note di banco”) start to circutalate as“paper money”, without intrinsic value.Rare withdrawals from their vaults allow themto lend their clients’ gold,with an interest (pure profit),printing “paper receipts” (or “banknotes”),more then one time for each gold bar (“fractional reserve”),asking “collaterals” as a guarantee of the loan (without risk).New purchasing power is created, by Richard A. Werner, 2005 selected as “Global Leader for Tomorrow” at the World Economic Forum of Davos, in 2003
  23. 23. The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“note di banco”) start to circutalate as“paper money”, without intrinsic value.Rare withdrawals from their vaults allow themto lend their clients’ gold,with an interest (pure profit),printing “paper receipts” (or “banknotes”),more then one time for each gold bar (“fractional reserve”),asking “collaterals” as a guarantee of the loan (without risk).New purchasing power is created,with pure profit and no risk, by Richard A. Werner, 2005 selected as “Global Leader for Tomorrow” at the World Economic Forum of Davos, in 2003
  24. 24. The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“note di banco”) start to circutalate as“paper money”, without intrinsic value.Rare withdrawals from their vaults allow themto lend their clients’ gold,with an interest (pure profit),printing “paper receipts” (or “banknotes”),more then one time for each gold bar (“fractional reserve”),asking “collaterals” as a guarantee of the loan (without risk).New purchasing power is created,with pure profit and no risk,if there’s TRUST from the clients andCONFIDENTIALITY about how “it works”. by Richard A. Werner, 2005 selected as “Global Leader for Tomorrow” at the World Economic Forum of Davos, in 2003
  25. 25. The Alchemy of Money (England, 17th century)Jewellers offer safekeeping facilities for precious metals.Their “receipts” (“note di banco”) start to circutalate as“paper money”, without intrinsic value.Rare withdrawals from their vaults allow themto lend their clients’ gold,with an interest (pure profit),printing “paper receipts” (or “banknotes”),more then one time for each gold bar (“fractional reserve”),asking “collaterals” as a guarantee of the loan (without risk).New purchasing power is created,with pure profit and no risk,if there’s TRUST from the clients andCONFIDENTIALITY about how “it works”.That’s the birth of modern western monetary system. by Richard A. Werner, 2005 selected as “Global Leader for Tomorrow” at the World Economic Forum of Davos, in 2003
  26. 26. What is Money?1. The Alchemy of Money: origins of the western monetary system2. Money and Environment: why the nature of money is the cause of the problem3. A New Money for a New World: how changing our money could change our world
  27. 27. What is Money?1. The Alchemy of Money: origins of the western monetary system2. Money and Environment: why the nature of money is the cause of the problem3. A New Money for a New World: how changing our money could change our world
  28. 28. MONEY SUPPLY
  29. 29. MONEY SUPPLY CREDIT (Commercial Banks) MONETARY BASE (Central Banks)
  30. 30. MONEY SUPPLY CREDIT (Commercial Banks) MONETARY BASE (Central Banks) 90% 10%
  31. 31. MONEY SUPPLY CREDIT (Commercial Banks) DEBT INTERESTS MONETARY BASE (Central Banks) 90% 10%
  32. 32. MONEY SUPPLY CREDIT (Commercial Banks) DEBT INTERESTS MONETARY BASE (Central Banks) = 90% 10% £ $ ! MONEY SUPPLY = DEBT (+ interests)
  33. 33. MONEY SUPPLY CREDIT (Commercial Banks) DEBT INTERESTS MONETARY BASE (Central Banks) = 90% 10% £ $ ! MONEY SUPPLY = DEBT (+ interests) Fonte: “Modern Money Mechanics”, 1992, Federal Reserve Bank of Chicago.
  34. 34. £ $ ! MONEY SUPPLY = DEBT (+ interests)
  35. 35. Deficit 2010: -26%Debt/GDP: 142%Debt/Revenues: 363%Rating: CCC-
  36. 36. Deficit 2010: -59%Debt/GDP: 93%DEBT/Revenues: 608%
  37. 37. Deficit 2010: -59%Debt/GDP: 93%DEBT/Revenues: 608%Rating: AAA+
  38. 38. Source: www.treasury.gov
  39. 39. Source: www.treasury.gov
  40. 40. 2010
  41. 41. 14500mld$ 2010
  42. 42. 14500mld$ 14000mld$ 2010
  43. 43. 14500mld$ 14000mld$ 2010 3450mld$ Investments Current expenses Interests payment
  44. 44. 14500mld$ 14000mld$ 2010 3450mld$ 1290mld$ 2160mld$ Investments DEFICIT Current expenses Incomes Interests payment
  45. 45. 2010
  46. 46. 201014500mld$ 14000mld$ 3450mld$
  47. 47. 60000mld$ 2010 14500mld$ 14000mld$ 3450mld$
  48. 48. MONEY SUPPLY = DEBT ECONOMY $ GDP
  49. 49. MONEY SUPPLY = DEBT ECONOMY $ GDP
  50. 50. MONEY SUPPLY = DEBT ECONOMY $ GDP
  51. 51. STRUCTURAL LIMIT (1)MONEY SUPPLY = DEBT ECONOMY $ GDP
  52. 52. InvestimentsCurrent expensesInterests payment
  53. 53. InvestimentsCurrent expensesInterests payment
  54. 54. STRUCTURAL LIMIT (2) Investiments Current expenses Interests payment
  55. 55. STRUCTURAL LIMIT (2) T The Triffin Dilemma Investiments Current expenses Interests payment 1960
  56. 56. What is Money?1. The Alchemy of Money: origins of the western monetary system2. Money and Environment: why the nature of money is the cause of the problem3. A New Money for a New World: how changing our money could be the solution
  57. 57. What is Money?1. The Alchemy of Money: origins of the western monetary system2. Money and Environment: why the nature of money is the cause of the problem3. A New Money for a New World: how changing our money could be the solution
  58. 58. Let us compare the conditions of Guernsey and its need a century ago, with the condition and need ofEngland today. When we hear arguments against slum clearance, against building new schools orhospitals or providing better roads, or even against providing everybody with a su!cient income to keepthemselves decently, on the grounds that we have not the money, if we remember the Guernsey MarketHouse experiment, we realise how specious such arguments are.
  59. 59. Let us compare the conditions of Guernsey and its need a century ago, with the condition and need ofEngland today. When we hear arguments against slum clearance, against building new schools orhospitals or providing better roads, or even against providing everybody with a su!cient income to keepthemselves decently, on the grounds that we have not the money, if we remember the Guernsey MarketHouse experiment, we realise how specious such arguments are. from “The Guernsey Market House Scheme”, by D. M. Sherwood (on “The Fig Tree” #10, september 1938)
  60. 60. MONEY SUPPLY Economic Growth £
  61. 61. MONEY SUPPLY Economic Growth £
  62. 62. =£ MONEY DEBT $ SUPPLY (+ interests) !
  63. 63. =£ MONEY DEBT $ SUPPLY (+ interests) !
  64. 64. = £ MONEY DEBT $ SUPPLY (+ interests) !MONETARY REFORM:1. Money creation by the Government (all of it and with no debt)
  65. 65. MONETARY REFORM:1. Money creation by the Government (all of it and with no debt)
  66. 66. MONETARY REFORM:1. Money creation by the Government (all of it and with no debt)
  67. 67. 1963 1865 1833MONETARY REFORM:1. Money creation by the Government (all of it and with no debt)
  68. 68. “I KILLED THE BANK!” (1845) 1963 1865 1833MONETARY REFORM:1. Money creation by the Government (all of it and with no debt)
  69. 69. Economic Growth GDPMONETARY REFORM:1. Money creation by the Government (all of it and with no debt)
  70. 70. Economic Growth SOCIAL Growth GDPMONETARY REFORM:1. Money creation by the Government (all of it and with no debt)2. Replace GDP with a true index of Social Growth and Well-being
  71. 71. Economic Growth SOCIAL Growth GDP 1968MONETARY REFORM:1. Money creation by the Government (all of it and with no debt)2. Replace GDP with a true index of Social Growth and Well-being
  72. 72. MONEY SUPPLY INFLATION £ $ !MONETARY REFORM:1. Money creation by the Government (all of it and with no debt)2. Replace GDP with a true index of Social Growth and Well-being
  73. 73. MONEY SUPPLY INFLATIONMONETARY REFORM:1. Money creation by the Government (all of it and with no debt)2. Replace GDP with a true index of Social Growth and Well-being
  74. 74. MONEY SUPPLYMONETARY REFORM:1. Money creation by the Government (all of it and with no debt)2. Replace GDP with a true index of Social Growth3. Money creation disclosed and connected to Sustainability
  75. 75. SCARSITY POVERTY CONFLICTSMONETARY REFORM:1. Money creation by the Government (all of it and with no debt)2. Replace GDP with a true index of Social Growth and Well-being3. Disclosed money creation, and connected to Sustainability
  76. 76. PROSPERITY WELLBEING SUSTAINABILITYMONETARY REFORM:1. Money creation by the Government (all of it and with no debt)2. Replace GDP with a true index of Social Growth and Well-being3. Disclosed money creation, and connected to Sustainability

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