Source: http://www.agenziaradicale.com/index.php?option=com_content&task=view&id=11704&Itemid=50
Monday, January 3, 2011
MAURIZIO MOTTOLA
Globalization is taking place on debt, that reduces economic subjugation citizens, businesses, and now the poorest countries, countries with significant gross domestic product (GDP) and also makes the land policies of nation states for economic non-territorial. The current international economic crisis starts to irreversibility, as the situation is based on a virtualized and dematerialized money now and in the States have now lost their monetary sovereignty.
To clarify the concept of monetary sovereignty must go back to when the states have surrendered their mayor to issue money and they are entrusted to the banking system (ie to private bankers). This goes back to the seventeenth century when the ruling elites in European countries agreed with the bankers of those countries in which creditors were based private banks, which transfer the mayor (previously the prerogative of the King) to make money, creating in favor of such banks with monopoly of issuing and lending money, which would also continues today, and indeed it is more consolidated in the hands of the system of central banks.
Also in 1933, the Federal Reserve (FED), the U.S. central bank, which is private in both form and in substance, rounded up all the gold available in the system (the penalty for Failure to hand his gold was imprisonment up to ten years!) and thus became virtually the only institution to own gold, and so the rules on printing banknotes were in its sole discretion: disappeared the words "convertible into gold" and appeared the words "legal tender", the bill was no longer the gold that would justify the value and instead had become a value in itself!
The date of May 1, 1933 represents the beginning of the passage of money as a medium of exchange (whose value is guaranteed by the convertibility into gold) a product that has a value in itself . The process is completed on 15 August 1971, at Camp David, when U.S. President Richard Nixon announced his decision to suspend the convertibility of the dollar into gold, because the U.S. Treasury was no longer able to withstand the demands of convertibility. At this point, the money becomes definitely a value in itself, virtualized and dematerialized by the end of convertibility into gold.
cancer may explode sregolatamente of speculation as no longer antagonized by antibodies of the gold, that still means the concreteness of an exchange of money and material objects of gold. The system does not is economy but finance ; that consolidates a process of abstraction, so the bill, based on nothing (or rather on more and more perverse conventions), it loses contact with the concrete the materiality of the economy (productivity, work organization, etc.) and takes on a life of its own, an autonomy that makes it subject to all the games possible and imaginable and causing it to lose its original connotation: to be half the conventional exchange.
That money has proven to be totally dematerialized by the fact that the current gold reserves of countries in the world do not exceed 200,000 tons, while the consideration of all banknotes in gold and cash equivalents that roam the world at current prices amounts to a consideration of 75,000,000 tonnes of gold !
So, if gold is no longer anchored to the concrete to the money (which is still a convention), depending on what the notes are printed today? For example, the Italian government decides they need money and can not directly create the notes printed pieces of paper called "public debt" to say a value of 10 billion euro.
The Bank of Italy buys in fact (through intermediaries that she alone can authorize to participate in auctions) the debt issued by the State (ie government securities), which is also printing a lot of cards call notes for a given value of € 10 billion of government securities. Redistributed in the accounts participating in the auction of the paper money of € 10 billion now being added to the overall monetary base.
What has happened is actually a real exchange between one country (the Italian) and a privately owned bank (the Bank is Italy!): The public debt securities were exchanged for new money issued by the Bank of Italy, affiliated with the European Central Bank (ECB).
This transaction today is done electronically, without paper. In fact, it is estimated that only 10% of the monetary base in Italy is in the form of physical cash, while the remaining 90% exists only in electronic archives. Treasury securities are debt instruments by their nature, such as bills of exchange, then the Bank of Italy is lending money to the state, using only as a guarantee the government's commitment to repay that money, which was created out of nothing through ' indebtedness of the government that promises to return it.
This debt, which falls on the State, namely the people, is called public debt and the creditor and the original operator then it is the Bank of Italy, an essentially private bank with a capital of 156,000 € only, which meets the European Central Bank, European Union foreign body, placed on top of it, exempt from any control and guarantee political, democratic and even criminal, and his records are secret and essentially is a sovereign power of the above the Parliament, the European Parliament.
confirmed it in the data: 43% public debt is held by the Bank of Italy or from Italian Monetary and Financial Instructions, and the remainder is allocated between Italian and foreign private investors and foreign financial institutions. So the money is created through borrowing, which could affect further interest, to pay which creates more debt in a destructive spiral that can lead to the collapse of citizens and nations. Now since the cost of production of banknotes (or electronic impulses) is nearly zero (actually 0.30 cents for the material costs of production of each bill!), The gain of those who produce money (in the Bank of Italy 'example) is almost equal to the nominal value of the money produced and put into circulation!
So the Bank of Italy issued for every one hundred nominal earns almost € 100 (minus a few tens of cents of the cost of production of each note). This gain (defined seigniorage), however, is paid by the purchase money, or substantially by the State (ie citizens) or by other banks, and a net profit of the Bank of Italy carries out risk-free, effortless and because it is owned by private companies, this gain ( seigniorage) goes to private companies.
There Therefore, interest on the part of the latter to extinction debt, if the additional debt due to interest, is the source of that easy money, which by the way is hardly taxed by the accounting standards of convenience created by the banking system . A simple modification of these accounting rules, a tax of around 7% of seigniorage (as a huge profit on behalf of the delegation to issue money!) Would allow civil society to reach an economic equilibrium that allows all citizens to turn a degree of peace and tranquility, as would enough resources to finance public and also the economic recovery and investment (despite the perverse financial speculation), avoiding cuts in social spending.
Clearly, all this waiting, restoring them back to the Italian government to issue him the mayor notes, return, therefore, monetary sovereignty, which expresses the role of power more authentic and effective. So people, dispossessed of their sovereignty so far as the issue of notes is from the banking system, could recover fully their rights and their prerogatives, hitherto exercised by non-expression of popular will, but mostly by private entities ( which currently are identified in the Federal Reserves in the European Central Bank, the Bank of England, the Bank of Japan and Bank of China) and restores the parliamentary institutions (expressions of popular sovereignty) full decision-making policy on the economy.
Moreover, the same Giulio Tremonti, interviewed live on national TG1 on the evening of Friday, March 6, 2009, had among other things to say "(...) the main cause of the formation of public debt that governments have surrendered their monetary sovereignty (...)".
Maybe you know what Thomas Jefferson had written John Madison in 1816: "If the American people ever allow private banks to manage the issuance of their currency, then, alternating inflation and deflation, the banks and financial companies also strip the people of all property until their children are wake up homeless on the continent their fathers conquered. I believe that banking institutions are more dangerous for our freedom in exercising the power to issue weapons ... should be removed to the banks and restored to the state to which it properly belongs. ".
been nearly two centuries and States not yet have its own sovereignty Monetary !
E for each individual share of the Italian citizen (virtual and statistics) of public debt has exceeded the threshold of € 30,000, and above all because of some perverse mechanisms by seigniorage and lack monetary sovereignty !
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