Financial Activism: How to Defeat the Money Power

August 31, 2012 | By | 2 Replies More

Anthony Migchels, Real Currencies
Waking Times

For eighty years a major not for profit, private currency has been operating in the heartland of Europe. In Zurich, almost next door to the Bank of International Settlements in Basel, there is the WIR, turning over the equivalent of almost 2 billion CHF per year.

WIR was founded by businessmen Werner Zimmerman and Paul Enz in 1934. It was a direct response to the Great Depression. They built on the legacy of Silvio Gesell, whose thinking also was the basis for the famous Wörgl Scrip and today’s German Regional Currencies, like the Chiemgauer.

Silvio Gesell is in fact the Patriarch of what I suggest should be called ‘German Economics’ or ‘Interest-Free Economics‘, the theoretical basis for the anti-usury movement. His analysis of Usury inspired both Gottfried Feder and Margrit Kennedy, two other leading lights of the European anti-usury movement. He also had interesting and much needed ideas about land reform.

Where the Wörgl and the Chiemgauer were/are backed by national (banking) currencies, the WIR goes where nobody before dared to go: it is basically Mutual Credit. Mutual Credit based currencies are nowadays used in Barter organizations world wide. Barter in this sense is a misnomer, they do use a means of exchange but not the national currency. WIR is undoubtedly one, if not the first Mutual Credit facility in the world and most certainly the longest surviving one.

Nowadays WIR turns over a little less than 2 billion WIR (1 WIR = 1 CHF) per year. Because many transactions involve maybe 25 to 50% in WIR while the rest is settled in CHF (Swiss Francs), real turn over generated by WIR is maybe up to three times higher. It has 1 billion of WIR in credit outstanding.

Transactions are settled with the use of debit cards or with their on-line banking system.

Werner Zimmerman and Silvio Gesell

WIR is operated for the common good and not for profit. About 62,000 small and midsized businesses participate. There are six regional offices through the Swiss republic.

WIR is especially important during downturns. Deflation and capital scarcity make businesses more creative and more willing to deal with WIR’s limitations.

For our purposes WIR is important because it proves that Mutual Credit facilities have a viable business model. It proves currency can be offered at very low cost while maintaining a prosperous and professional organization over the long term.

Limitations
Notwithstanding its major achievements, WIR suffers from some significant limitations.

In the first place it is not convertible to other units. This is a common problem with Mutual Credit based currencies. Until recently, the technology was not available. Amazingly, many people are so used to this situation that they do not even consider it a problem. They will claim that non-convertibility is actually a strength, as it forces participants to shop within the network. However, this is a mistake. Non-convertibility damages the liquidity (what it will buy) of the currency and liquidity is everything. As a result, many businesses accept only certain percentages in WIR. This hampers liquidity even further.

Another problem is that consumers are not serviced. Only businesses can participate. This again badly damages liquidity: businesses cannot pay their employees in WIR, for instance.

Just think of what is possible for modern units leaving these limitations behind them.

Money Power Subversion
Obviously, WIR is very important opposition against the Money Power. The Money Power can be expected to keep a keen eye on it and there are serious indications it has been resisting WIR actively.

There is a persistent rumor suggesting the Banks have told WIR that things are fine as they are, but that they should not vie for further growth. This may explain why they have not developed a comprehensive strategy for consumer participation.

Also, in the 1950′s WIR started to price its credit with interest. Even today interest rates are very low, with 1% rates for mortgages, for instance, but still. Interest is an affront to Gesell’s ideas. It hinders circulation, which was one thing very much on Gesell’s mind. The price for credit, even at 1%, is somewhat high for collateralized (and thus risk free) long term loans.  It also lessens the power of the message: that interest free credit is not only possible but a fact.

The last few years WIR has been starting to focus on more traditional banking activities, including ordinary loans in CHF.

This has led Thomas Greco, a leading expert on Mutual Credit, to state that the Banking Cartel has probably found a way of getting its henchmen on WIR’s board of directors.

Conclusion
WIR is a leading example for the entire world. It has proven that interest free mutual credit can be offered on a large scale. Its superior management was a key factor to its success: it was not a couple of dreamers that built it, but down to earth businessmen understanding the issues and the solution.

It is not convertible and it has no comprehensive strategy to compete outright on a full scale with the Banking Cartel and yet it turns over billions per year. These limitations can nowadays be solved. Convertibility for Mutual Credit is now possible. A comprehensive strategy including consumers not difficult to devise.

In this way the Money Power monopoly on currency can be assaulted. Regulators, inimical as they may be to these schemes, are left empty handed: there are no laws against Mutual Credit and they are very difficult to develop, especially against determined market players who understand what they are up against.

Even though today WIR seems to have been subverted, it took the Money Power eighty years. It is fully possible for just a few thousand ambitious people world wide to open up their own initiatives and the Money Power could easily become overwhelmed.

It goes directly at the heart of the matter: the Money Power’s control over the money supply and extortion through usury and the boom/bust cycle. In this day and age of deflation and stagflation, additional working capital is desperately needed by small and mid sized firms. Now, more than ever, are they willing to take a chance when they are offered a real alternative.

The German Regional Currency Movement shows that it can be done even today. In Britain, too, many regional currencies are now starting, most recently in Bristol. This unit is not even circulating yet, but already 100 small businesses have signed up. They desperately need additional cash and new customers and Regional Currencies supply both.

It is no use to wait until the Government cleans up its act. It never will. It is completely controlled by the enemy. Private initiative is the only hope we have. In fact, let’s face it: why would children of the One expect to have their lives be run by sugardaddies like Government? Private initiative is all there is.

Private currencies, competing with the Money Power in the market place are the way forward.

The world was conquered by a few ambitious men serving the Adversary.

It is now time for it to be liberated by a few ambitious men serving the One.

“THERE IS NOTHING MORE DANGEROUS THAN PERSONAL INITIATIVE: if it has genius behind it, such initiative can do more than can be done by millions of people among whom we have sown discord.”
Protocol No.5

~~ Help Waking Times to raise the vibration by sharing this article with the buttons below…

Tags: , , , ,

Category: Activism, Business, Community, Governance, Ideas, Law & Punishment, Money, Revolution, Society

Comments (2)

Trackback URL | Comments RSS Feed

  1. Jillian says:

    Take a look at Charles Eisenstein’s work, particularly his book, “Sacred Economics,” for a discussion of how to re-formulate our economic system to support the planet’s people, resources, and commons. It’s truly lovely and brilliant, and includes ideas very similar to the WIR as potential directions. Eisenstein’s website is http://www.sacred-economics.com.

  2. Anon says:

    The QUIET or SILENT Revolution – Humanity’s answer to the NWO: GLOBAL NON-VIOLENT, NON-COMPLIANCE!

    Not a single shot need be fired in this Revolution. Besides, “revolution” simply means CHANGE, anyway – however, not the HOPIUM OF CHANGE, that was promised in 2008!

    Removing your money out of any TBTF Bank is ONE thing that you can do. However, there are many, many other things that we all can do, too!

    Here are just a few:

    1) BOYCOTT – learn this concept well, and EMPLOY IT – against those enslaving you!
    http://www.organicconsumers.org/articles/article_26620.cfm
    2) THINK for yourself. TURN OFF the IDIOT-BOX (TV) OR THROW IT AWAY! READ! USE YOUR BRAIN MUSCLE!
    3) QUESTION all ‘authority’ (Big Business/Government, Big Religion, Big Media, etc.)
    http://www.lulu.com/shop/john-hamer/the-falsification-of-history-our-distorted-reality/paperback/product-20051585.html
    4) Get out, and/or stay out, of DEBT!
    5) USE CASH AS MUCH AS POSSIBLE. Avoid using credit, debit, and customer loyalty cards, that track or record your purchases
    6) Bank at a local credit union!
    7) VOTE WITH YOUR DOLLARS! (What do you support, with your time, money, and energy?) (Buy true ORGANIC, & MADE IN USA!)
    8) Contact your Representatives on critical issues: such as “END THE FED!”
    9) Re-read the 2nd Amendment to the U.S. Constitution. It isn’t about hunting. It’s about government tyranny, and protecting yourself from it.
    10)Buy (products) Made in U.S.A.
    11)Invest in precious metals, primarily SILVER (and gold) bullion
    http://libertycpm.com/silver/
    12)Buy ORGANIC food! Support your local Organic Farmer, food store or Co-op! Support the true HEROES of organic food production (on the right side, of the following poster: http://www.cornucopia.org/wp-content/uploads/2012/08/prop37-poster3.jpeg)
    13)Start your own garden using NON-GMO, non-hybrid seeds!
    http://www.mypatriotsupply.com/
    14)Pray or meditate – reduce your stress! Stress weakens your immune system, and opens up your body to attack by free radicals, viruses, etc.
    15)Read a book, you know, an actual book! Open your mind!
    http://www.lulu.com/shop/john-hamer/the-falsification-of-history-our-distorted-reality/paperback/product-20051585.html
    16)Exercise your brain muscle!
    17)Listen to soothing classical, jazz, ambient or other music you thoroughly enjoy!
    18)CUT BACK ON OIL AND GAS CONSUMPTION!
    19)Take a high-quality daily multi-vitamin

    EXPAND THIS LIST, AND SHARE IT WITH EVERYONE YOU KNOW!

Leave a Reply

Must Watch Videos

Link Found Between Food Allergies and Farm Antibiotics

Link Found Between Food Allergies and Farm Antibiotics













Dr. Mercola
Waking Times

Food allergies affect an estimated 15 million Americans, including one in 13 children. Statistics indicate something strange is afoot, as food allergies in children rose by 50 percent between 1997 and 2011 alone.

Similarly, in Great Britain one in three people are allergic to something, be … More

September 18, 2014 | By | Reply More
Drop Out and Simplify Your Life

Drop Out and Simplify Your Life













Zen Gardner, Guest
Waking Times

I was thinking about this very subject and sat down to put some notes together when I stopped to moderate comments on the site. And here was this synchronistic and very wise comment from Soliel:

Despite all the fear-mongering out there, many have remained … More

September 17, 2014 | By | 2 Replies More
Coconut Water is One of the Greatest Nutritional from Nature

Coconut Water is One of the Greatest Nutritional from Nature













Karen Foster, Prevent Disease
Waking Times

The first documented use of coconut water dates back just a few centuries, however it’s safe to assume humans have been enjoying this supreme hydrator as long as we’ve been around coconut palms. Here’s why young coconut water has one of the highest sources … More

September 17, 2014 | By | 2 Replies More
How Monsanto and Big-Ag are Fighting Back Against Anti-GMO Activism

How Monsanto and Big-Ag are Fighting Back Against Anti-GMO Activism













Dr. Mercola
Waking Times

Between 2012 and mid-2014, Monsanto and the Grocery Manufacturers Association (GMA) successfully blocked GMO labeling legislation in over 30 states, at a price tag of more than $100 million.

These funds were received from the 300+ members of the GMA, which include chemical/pesticide, GE seed, and … More

September 16, 2014 | By | Reply More
A Letter To My Siblings

A Letter To My Siblings













Zen Gardner, Guest
Waking Times

A note from Zen: An answer to a question from awakening siblings about how have I kept up with world and American events being outside the US so many years. This is part of a discussion on world topics that we’ve been debating including More

September 13, 2014 | By | 5 Replies More

Activism Works

7 Ways Cannabis Legalization Has Already Benefited Colorado

7 Ways Cannabis Legalization Has Already Benefited Colorado













Jeff Roberts, Collective-Evolution
Waking Times

January 1st 2014 saw the opening of the very first cannabis shop in Colorado as the cultivation, manufacture and sale of the controversial plant became fully legalized. Since then, the state has seen a lot of promising results.

Laura Pegram of Drugpolicy.org wrote in her … More

September 16, 2014 | By | Reply More
Sweden Recycling 99 Percent Of Garbage, Edging Closer To Zero-Waste

Sweden Recycling 99 Percent Of Garbage, Edging Closer To Zero-Waste













April McCarthy, Prevent Disease
Waking Times

There’s a revolution happening in Sweden right now. Dubbed the “recycling revolution,” the Scandinavian country now recycles 99 percent of their garbage, edging closer to a zero-waste lifestyle, nationwide.

Wouldn’t it be great if no household waste was wasted? If each and every item … More

September 4, 2014 | By | 6 Replies More
Food as Medicine: How One Hospital Is Using Organic Produce to Help Heal Patients

Food as Medicine: How One Hospital Is Using Organic Produce to Help Heal Patients













Coach Mark Smallwood, EcoWatch
Waking Times

In 431 B.C. Hippocrates said, “Let food be thy medicine and medicine be thy food”

More than 2500 years later, we are inundated with advertisements boasting the latest, greatest cure-all super drug. From a young age, we learn that it doesn’t matter how or … More

August 23, 2014 | By | 4 Replies More
As Keystone XL Dominoes Fall, Time to Arrest Tar Sands Industry

As Keystone XL Dominoes Fall, Time to Arrest Tar Sands Industry













, EcoWatch
Waking Times

We’ve got this.

Thanks to the courageous and indefatigable efforts of pipeline fighters everywhere, the tide has finally turned on Keystone XL. As it becomes increasingly clear that Keystone XL’s northern leg is not going through, it is time to set our sights … More

August 4, 2014 | By | 2 Replies More
Seizing Control of Our Destinies

Seizing Control of Our Destinies













Julian Rose, Contributor
Waking Times

In 1381, at a time of great repression for the British agricultural work force, an extraordinary people’s revolutionary named Wat Tyler sprang to his feet and announced, “England should be a nation of self governing communities,” to which he added, “ No lord shall exercise … More

July 28, 2014 | By | 5 Replies More