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

2. “It is well enough that people of the nation do
not understand our monetary system, for if they
did, I believe there would be a revolution before
tomorrow morning.”
Henry Ford

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

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...

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

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

7. • 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

8. What is Money?

9. What is Money?
1. The Alchemy of Money:
origins of the western monetary system

10. What is Money?
1. The Alchemy of Money:
origins of the western monetary system
2. Money and Environment:
why the nature of money is the cause of the problem

11. What is Money?
1. The Alchemy of Money:
origins of the western monetary system
2. Money and Environment:
why the nature of money is the cause of the problem
3. A New Money for a New World:
how changing our money could be the solution

12. What is Money?
1. The Alchemy of Money:
origins of the western monetary system
2. Money and Environment:
why the nature of money is the cause of the problem
3. A New Money for a New World:
how changing our money could be the solution

16. Banco Metalli E.C.

17. 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.

18. 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

19. 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

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.
by Richard A. Werner, 2005
selected as “Global Leader for Tomorrow”
at the World Economic Forum of Davos, in 2003

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 them
to lend their clients’ gold,
by Richard A. Werner, 2005
selected as “Global Leader for Tomorrow”
at the World Economic Forum of Davos, in 2003

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 them
to 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

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 them
to 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

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 them
to 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

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 them
to 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

26. 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 them
to 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

27. 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 them
to 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

28. 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 them
to 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 and
CONFIDENTIALITY about how “it works”.
by Richard A. Werner, 2005
selected as “Global Leader for Tomorrow”
at the World Economic Forum of Davos, in 2003

29. 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 them
to 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 and
CONFIDENTIALITY 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

37. What is Money?
1. The Alchemy of Money:
origins of the western monetary system
2. Money and Environment:
why the nature of money is the cause of the problem
3. A New Money for a New World:
how changing our money could change our world

38. What is Money?
1. The Alchemy of Money:
origins of the western monetary system
2. Money and Environment:
why the nature of money is the cause of the problem
3. A New Money for a New World:
how changing our money could change our world

39. MONEY SUPPLY

40. MONEY SUPPLY
CREDIT (Commercial Banks)
MONETARY BASE (Central Banks)

41. MONEY SUPPLY
CREDIT (Commercial Banks)
MONETARY BASE (Central Banks)
90%
10%

42. MONEY SUPPLY
CREDIT (Commercial Banks) DEBT INTERESTS
MONETARY BASE (Central Banks)
90%
10%

43. MONEY SUPPLY
CREDIT (Commercial Banks) DEBT INTERESTS
MONETARY BASE (Central Banks)
=
90%
10%
£
$
!
MONEY
SUPPLY = DEBT
(+ interests)

44. 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.

45. £
$
!
MONEY
SUPPLY = DEBT
(+ interests)

48. Deficit 2010: -26%
Debt/GDP: 142%
Debt/Revenues: 363%
Rating: CCC-

51. Deficit 2010: -59%
Debt/GDP: 93%
DEBT/Revenues: 608%

52. Deficit 2010: -59%
Debt/GDP: 93%
DEBT/Revenues: 608%
Rating: AAA+

53. Source: www.treasury.gov

54. Source: www.treasury.gov

55. 2010

56. 14500mld$
2010

57. 14500mld$
14000mld$
2010

58. 14500mld$
14000mld$
2010
3450mld$
Investments
Current expenses
Interests payment

59. 14500mld$
14000mld$
2010
3450mld$
1290mld$
2160mld$
Investments DEFICIT
Current expenses Incomes
Interests payment

60. 2010

61. 2010
14500mld$ 14000mld$
3450mld$

62. 60000mld$
2010
14500mld$ 14000mld$
3450mld$

63. MONEY SUPPLY = DEBT ECONOMY
$ GDP

64. MONEY SUPPLY = DEBT ECONOMY
$ GDP

65. MONEY SUPPLY = DEBT ECONOMY
$ GDP

66. STRUCTURAL
LIMIT
(1)
MONEY SUPPLY = DEBT ECONOMY
$ GDP

67. Investiments
Current expenses
Interests payment

68. Investiments
Current expenses
Interests payment

69. STRUCTURAL
LIMIT (2)
Investiments
Current expenses
Interests payment

70. STRUCTURAL
LIMIT (2)
T
The Triffin Dilemma
Investiments
Current expenses
Interests payment 1960

71. What is Money?
1. The Alchemy of Money:
origins of the western monetary system
2. Money and Environment:
why the nature of money is the cause of the problem
3. A New Money for a New World:
how changing our money could be the solution

72. What is Money?
1. The Alchemy of Money:
origins of the western monetary system
2. Money and Environment:
why the nature of money is the cause of the problem
3. A New Money for a New World:
how changing our money could be the solution

75. Let us compare the conditions of Guernsey and its need a century ago, with the condition and need of
England today. When we hear arguments against slum clearance, against building new schools or
hospitals or providing better roads, or even against providing everybody with a su!cient income to keep
themselves decently, on the grounds that we have not the money, if we remember the Guernsey Market
House experiment, we realise how specious such arguments are.

76. Let us compare the conditions of Guernsey and its need a century ago, with the condition and need of
England today. When we hear arguments against slum clearance, against building new schools or
hospitals or providing better roads, or even against providing everybody with a su!cient income to keep
themselves decently, on the grounds that we have not the money, if we remember the Guernsey Market
House 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)

77. MONEY SUPPLY Economic Growth
£

78. MONEY SUPPLY Economic Growth
£

79. =
£ MONEY DEBT
$ SUPPLY (+ interests)
!

80. =
£ MONEY DEBT
$ SUPPLY (+ interests)
!

81. =
£ MONEY DEBT
$ SUPPLY (+ interests)
!
MONETARY REFORM:
1. Money creation by the Government (all of it and with no debt)

82. MONETARY REFORM:
1. Money creation by the Government (all of it and with no debt)

83. MONETARY REFORM:
1. Money creation by the Government (all of it and with no debt)

84. 1963 1865 1833
MONETARY REFORM:
1. Money creation by the Government (all of it and with no debt)

85. “I KILLED
THE BANK!”
(1845)
1963 1865 1833
MONETARY REFORM:
1. Money creation by the Government (all of it and with no debt)

86. Economic Growth
GDP
MONETARY REFORM:
1. Money creation by the Government (all of it and with no debt)

87. Economic Growth SOCIAL Growth
GDP
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

88. Economic Growth SOCIAL Growth
GDP
1968
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

89. 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

90. 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

91. MONEY SUPPLY
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
3. Money creation disclosed and connected to Sustainability

92. SCARSITY
POVERTY
CONFLICTS
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
3. Disclosed money creation, and connected to Sustainability

93. PROSPERITY
WELLBEING
SUSTAINABILITY
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
3. Disclosed money creation, and connected to Sustainability