The time has come to start talking openly. To define precisely the reasons for the current financial crisis. To shake off the fear of consequences arising from the diagnosis.

The time has come to question the assumptions and certainties because the direction the present science is following leads nowhere.

The current economic crisis, just like the history of the past crises, proves that the financial policy created by FED leads only to a rapid emergence of financial disparity of people, societies and nations.

It leads to neo-colonialism of nations and economic enslavement of people.

As a result of playing with money, creating debt money, speculating in currencies and securities, creating new means of payment derived from real money, the global financial circles have taken over power, the real power.

With the means of payment in the hands of a small group of global population, a global mafia system has been created, and one much more dangerous than the well-known, generally condemned gangster organizations.

The ways of exacting a tribute are very sophisticated, legalised and permanent because the financial mafia, which acts globally and has almost unlimited resources at their disposal, has subdued not only politicians and the media but unfortunately also academic science. It has put societies under hypnosis and made us regard the system we live in as the best possible option, even though we see clearly its imperfections.

The source of wealth of these few are, among other things, interest on loans taken by countries, companies and individuals, proceeds from rights to intellectual property, all the possible types of speculations and, finally, profit from monopolist corporations.

To all the scientists who understand the current situation, but also to many politicians, it has become clear that the tragic situation of global finance stems from acceptance of the paradigm of the commodity nature of money. This paradigm makes money a very specific subject of trade: it does not get old or wear off but has the ability to “procreate”.

While being a reflection of goods it multiplies independently of the original.

Luckily, the science started noticing the dichotomy between theory and economic practice. The science is waking up. It is starting to understand that the paradigms which functioned well in the times of shortage are not applicable any more. The world has changed. Technological progress has introduced us to the era of abundance of goods and liberated us from hard work. The foundations of the economy have changed. Old laws are no longer valid. The achievements of the economic science to date are now of only historic value. The new situation requires building a system based on radical, even revolutionary, changes as well as questioning and re-evaluating the foundations of economic science.

It is not possible to repair the economic and financial system which we live in because it is based on the assumptions which are now out of date. In the era of shortage even the term “curse of abundance” was coined. Currently, we live under continuous course of abundance because the supply of both food and essential goods is practically unlimited.

By rejecting the paradigm on the commodity nature of money we also reject the entire structure based on this fact.

Money is not a commodity. It is abstract, it is a symbol, a tool, information on the right to collect from the market the surplus generated by others, in exchange for the surplus generated by oneself (or robots).

In what way money, in isolation from material reality while being a reflection of such reality, can multiply the right to have it?

Money cannot be a source of enrichment. The era of rentiers must be forgotten. The role of money as an exchange intermediary and as a value parameter needs to be restored. Money should be devoid of its cumulative function. This is because saving money, collecting treasure based not on things, such as e.g. gold, but on a tool, which is the essence of money, drains the market out of this exchange intermediary. It is necessary to make an enormous conceptual leap to start rebuilding the financial system of the world.

Changes to the definition of the role played by money will result in disappearance of the possibility to trade in currencies, debt money and other means of payment and their derivatives. Therefore, trading in money and in its derivatives will vanish, and so will speculation.

However, is elimination of financial markets possible at all in the current political and economic conditions? Do I call for revolution and bloodshed?

No, no, no. There is another way, through common education. A way where science has an essential role to play. Science must give the decision-makers and politicians tools for creating a new structure emerging right alongside the existing one. This structure will be based on new paradigms. The first step has already been taken. Academic science has questioned the validity and inevitability of the economic principles formulated to date. Accepting that the previous achievements of economic sciences are useless in the new situation, in our Era of Abundance, in the times of departure from the ethos of work (after all, machines replace us), is the first step towards building a new structure, a new system.

Revolution is not necessary. Common education will protect the society against manipulation and ridicule – the favourite form of persuasion used by corrupt and subordinated media.

In this process the role of science is invaluable. Science must first humbly call off all the theories which justify the current slavish system and it must change its aim – the aim of economic sciences will no longer be economic growth. The aim of the economy will be a greater sense of well-being of people, societies, nations and humanity. Designs, models, simulations, calculations of scientists will create tools needed by politicians to implement the law and the new social order.

We will build this new order right alongside the existing one. It is not necessary to destroy previous structures. People, societies and nations will make choices between old and new solutions.

In order to build the NEW, some preliminary conditions will need to be met. I will discuss them using Poland as an example.

  1. Regain financial sovereignty of the country.

The financial policy of NBP should first of all represent the national interest. This means depriving banks of the possibility to create money and restoring the role of NBP as the only issuer and distributor of national money. New issues should result from the budgeting needs of the country and not, as it has been the case until now, the pressure of the City in London or the need to create currency reserves.

NBP must depart from the externally dictated policy of PLANNED SHORTAGE OF MONEY and forget about INFLATION PERCEIVED AS A SCARECROW.

The aim of NBP should be ensuring full monetization of the market, i.e. acknowledging the paradigm of the economic parity of money. In my view, considering that money is secondary to goods, this principle should state that full-value commodity (goods) should have coverage in money.

A market offer should have coverage in real money, not debt money.

How does the newly issued money enter the market? When does NBP decide on a new issue? Without answering these questions it is not possible to understand the mechanism governing our money market.

The end of the 1990s and the beginning of the current century saw a considerable increase in the value of PLN coins and banknotes. They were issued in order to provide money to the newly established banks with foreign capital. The pattern was as follows: the new bank paid to NBP its share capital amounting to 5 million euros and in exchange it received the equivalent of this amount in PLN of the new issue. At the same time there was an inflow of dollars and euro to Poland; this was payment for the national wealth being sold out. Such money was also added to the budget by way of new issue. The Warsaw Stock Exchange was established and the resources for portfolio investments were also received. All this was aimed at one thing: building a currency reserve. At that time, Poland’s balance of payments was positive. In 2006, the situation started to deteriorate rapidly. The currency reserves started to be used mainly to transfer the profit of foreign companies abroad and thus the reserves started to shrink. In order to maintain solvency, loans started to be taken out. A rapid outflow of money began.

The issue of new money carried out by NBP did not add any resources directly to the budget but instead it resulted in a sudden growth of the amount of debt money. Indebtedness of the country, companies and individuals was rising.

The conclusion seems to be obvious: money issue is not caused by the needs of the country and of the nation but it is a result of the needs of international financial circles and the adopted rule on free movement of capital.

  1. Create a legal basis for introduction of interest-free and non-convertible local currencies.

NBP may give up its prerogative to issue money and grant the right to create local money to local communities, self-governments.

Local money, by stimulating the exchange of goods and services produced/rendered locally, will limit import, speed up rotation of money, and trigger social and cultural initiatives.

Covering the activity financed with such resources with tax reliefs or tax credits will further reinforce the position of local manufacturers and service providers.

In extreme cases this activity can be placed in the grey economic zone. We should redefine, however, the role and economic usefulness of exchange of goods falling under this term and perhaps rename it a “white zone”.

This solution is not entirely new because in Poland there is already one entire branch of economy exempt from income tax and VAT – namely agriculture. A similar status could be enjoyed in the future also by the “white zone”.

  1. Introduce unconditional guaranteed income.

In the era of abundance, with almost unlimited supply of essential goods and automated production which causes job losses, money representing the right to collect goods or services from the market ceases to be the attribute of an employee.

The new paradigm which acknowledges the right of every person to a dividend should state that money is the attribute of a consumer.

Every person is a consumer; therefore every person should receive free resources which would be sufficient to cover his or her basic needs.

The battle of trade unions for new workplaces should express the demand for the right to income because in fact demanding work is demanding the right to lead a decent life.

A global tendency can be demonstrated using the USA as an example.

Merely 1% of Americans who are in paid employment works in agriculture and 10% find work in production. The notion of cheap labour is losing its significance.

  1. Renegotiate international agreements, in particular the agreements regarding free movement of capital.

In practice the agreements on free movement of capital mean movement of cash capital. Implementation of such agreements means constant impoverishment of weaker economies until their national wealth is almost completely taken over. In short, it is a tool of colonization, economic conquest of sovereign countries.

  1. Introduce currency exchange based on bilateral agreements, i.e. without using global currencies as “intermediaries”.

Lack of objective money meter is conducive to arbitrary valuation of individual currencies. As a result, speculation in currencies and extremely inequivalent exchange of goods between countries is flourishing.

Recalculating currencies of two trading countries without using global currencies as “intermediaries”, but only on the basis of factors which the parties concerned deem objective, will allow for faster implementation of fair trading principles.

  1. Announce loan abolition, i.e. elimination of debt by full monetization of the market. Adopt the paradigm that “goods must have coverage in money”.

General abolition of loans means liberating entities from future encumbrances. It should apply to both the internal public debt and the debts of enterprises, in particular debts of people. The current level of indebtedness of the Poles approaching 900 billion zloty means that goods worth this amount did not have coverage in the form of real money. Loan abolition does not mean that additional money will enter the market. It only means that future liabilities will be eliminated.

Introduction of loan abolition is conditional upon elimination of banking leverage, i.e. a ban on introducing to the market money taken “out of thin air”, money created by the banks. In banks the amounts paid by NBP as loan repayment will become assets which will reflect banking deposits that now are not covered by real money.

As I have already mentioned, indebtedness of citizens and entrepreneurs in Poland currently exceeds 900 billion zloty. What does it mean? And what would happen in the real economy if this debt was repaid?

Well, this debt means that goods worth 900 billion zloty were on the market and did not have coverage in the form of real money. This is simply a long term purchasing (demand) gap. Let me translate it into more understandable language: income of people and companies was lower by 900 billion zloty than GDP in the same period. But for loans, such goods would never be purchased. I have intentionally omitted the issue of trade credits which cause payment gridlocks and bankruptcies since the level of such debt is unknown.

Even complete writing off of all the debts, which is of course not necessary, does not pose any risk of inflation because only a small amount of additional resources will appear on the market as a result of keeping in the citizens’ pockets the next instalments of their loan repayment.

After introduction of such changes debt money will no longer be needed by the economy and we will observe:

SELF-LIMITATION OF MONEY MARKETS,

which will be the first step towards self-elimination of financial markets.

This presentation is a collection of desiderata which the social sciences need to confront and my intention is to present them only as a suggestion and an attempt to stir up a wide-ranging discussion.

We are at the beginning of our journey, there are no ready-made patterns or experiences, we start everything from scratch. We have to be brave, brave as people who may get lost but who know how to back off and go back if it turns out that the selected road leads to nowhere.

Please forgive me then that I do not quote authorities. We are all pioneers. Authorities will emerge from among the “navigators of tomorrow”. “Navigators of tomorrow”: a new direction of science.

In this short presentation I have only touched upon the issue of the financial crisis and the banking crisis, while omitting the issues related to the currency, stock market and inflation crises as well as insolvency of countries. The money market crisis is commonly known as the most drastic form of economic enslavement.

Each of us, and the scientists in particular, face a great moral dilemma. They need to choose whether to be a responsible head of the family and agree to collaborate, or whether to support the truth and risk ostracism and poverty.

There is the third path, which older generations are keener to follow. The path chosen by Konrad Wallenrod.

A few more words to journalists.

The media have a horrible weapon at their disposal and they use it with mastery. This weapon is mockery.

Dear journalists, listen to your interlocutors carefully. Do not shrug. Think how many times in your life you have changed your mind under the influence of facts or arguments.