WEBVTT 00:00:01.829 --> 00:00:04.582 Event organized by Zeitgeist Movement 00:00:05.428 --> 00:00:07.995 Verona, November 19th, 2011 00:00:09.817 --> 00:00:13.340 Symposium "Sustainable Society" 00:00:14.626 --> 00:00:17.988 Then, the first speaker is Enrico Caldari 00:00:18.311 --> 00:00:22.288 marketing expert, new medias, independent researcher 00:00:22.288 --> 00:00:25.234 Since 2005 he has concerned with monetary systems 00:00:25.549 --> 00:00:28.542 and since 2010 he has also been popularizer, speaking to public 00:00:28.542 --> 00:00:32.043 with a series of lectures entitled "What is money?" 00:00:32.274 --> 00:00:35.589 and his facebook page "Kaldari Report". 00:00:35.974 --> 00:00:38.212 He graduated in Statistics in Bologna 00:00:38.428 --> 00:00:41.328 and in short, he does a lot of researches and interesting works. 00:00:41.328 --> 00:00:44.643 We're not to be here redundant, get him come on the stage 00:00:44.689 --> 00:00:48.828 and he will explain us what is the money. Thank you everyone. 00:00:48.952 --> 00:00:51.326 - Thank you very much, Federico. 00:00:51.972 --> 00:00:53.398 Thank you everyone. 00:00:55.998 --> 00:00:59.308 I say it's a particular emotion for me 00:00:59.308 --> 00:01:02.098 talking to all of you. 00:01:02.098 --> 00:01:05.410 but I'll say the truth: I think i'll enjoy myself a little 00:01:05.449 --> 00:01:07.356 and i will also entertain you a little. 00:01:07.610 --> 00:01:10.726 As Federico has already said, i have made so many things in my life 00:01:11.833 --> 00:01:14.949 As all of you, we say that, I had to engineer myself 00:01:14.949 --> 00:01:17.703 to gain some money to live. 00:01:18.069 --> 00:01:20.421 Indeed, i ask you a question. 00:01:20.762 --> 00:01:23.865 How many of you need money to live? 00:01:27.555 --> 00:01:28.917 Then I will change the question. 00:01:28.917 --> 00:01:31.674 How many of you do not need money to live? 00:01:34.028 --> 00:01:36.040 I don't see anyone! 00:01:36.472 --> 00:01:41.133 All right. In 2005, you can see the date written on a small scale there 00:01:41.187 --> 00:01:45.668 I have just started to deal myself not so much about money I was doing, 00:01:45.668 --> 00:01:49.878 about amount of money I was doing, but on quality of money 00:01:49.878 --> 00:01:52.071 i was using and that we all use. 00:01:52.071 --> 00:01:54.432 about the nature of money. 00:02:00.032 --> 00:02:05.232 So I started to explore the theme and some years later 00:02:05.232 --> 00:02:08.293 some people have asked me to talk about that. 00:02:09.123 --> 00:02:11.848 to talk about that around and therefore 00:02:11.848 --> 00:02:14.263 I have put together a series of topics 00:02:15.125 --> 00:02:20.455 that in the last 10-12 months i have brought around Italy 00:02:20.455 --> 00:02:22.608 and even England 00:02:22.608 --> 00:02:25.053 talking about a range of issues related to money. 00:02:25.053 --> 00:02:27.967 For example I talk about origins of the monetary system. 00:02:28.229 --> 00:02:32.691 on reason the nature of money is connected to current crisis 00:02:32.691 --> 00:02:34.937 that is a economic, social, environmental crisis 00:02:34.937 --> 00:02:37.583 and I would add spiritual crisis too. 00:02:37.991 --> 00:02:42.198 and then how to change the money could be a solution 00:02:42.198 --> 00:02:45.909 this is, in my opinion, the first solution. 00:02:47.632 --> 00:02:51.463 Since we suppose that 00:02:51.463 --> 00:02:55.428 all of us use money we know what it is 00:02:55.428 --> 00:02:58.389 I ask you a first simple question. 00:02:58.589 --> 00:03:03.358 Who creates the money? 00:03:05.405 --> 00:03:08.672 Then, i'm sure the guy in front of me 00:03:08.672 --> 00:03:12.405 has tried to print some money in his garage 00:03:12.866 --> 00:03:16.931 but surely the tobacconist on the corner has caught him immediately. 00:03:19.777 --> 00:03:25.991 Obviously the correct answer is: central banks. 00:03:25.991 --> 00:03:27.843 Who creates the money? 00:03:27.858 --> 00:03:29.774 [Central bank] 00:03:31.497 --> 00:03:33.512 Wrong! 00:03:35.672 --> 00:03:39.063 Now i think to understand that we need to deepen the theme for a moment. 00:03:40.294 --> 00:03:44.702 Then, what you can see here is an graphical exemplification 00:03:45.948 --> 00:03:49.948 of our amount of circulating money in our society 00:03:49.948 --> 00:03:52.755 what we all use and it is divided into two parts. 00:03:53.602 --> 00:04:00.163 look, there is a tiny green part and a larger dark green part . Ok? 00:04:01.102 --> 00:04:03.278 What are these two parts? 00:04:04.309 --> 00:04:11.875 Then, the tiny green part is money created by central banks 00:04:11.875 --> 00:04:15.275 instead the dark green part is credit. 00:04:15.668 --> 00:04:17.760 What is credit? 00:04:18.605 --> 00:04:24.697 credit created, we say, provided by commercial banks, by private banks. 00:04:24.697 --> 00:04:26.728 Then, I ask you a question. 00:04:26.728 --> 00:04:28.797 If me and the guy here 00:04:28.998 --> 00:04:31.198 who has had problems with tobacconist 00:04:31.460 --> 00:04:34.029 we have a business relationship. 00:04:34.260 --> 00:04:36.417 I have a credit on him, okay? 00:04:36.502 --> 00:04:39.217 What has he got on me? 00:04:44.417 --> 00:04:51.898 So if that 95% is credit, necessarily it corresponds to a debt. 00:04:52.329 --> 00:04:54.271 ok? But there is a "but" ... 00:04:54.748 --> 00:04:57.708 this debt will be repaid with interests. 00:04:59.031 --> 00:05:02.652 Then, this very easy mechanism to understand 00:05:03.822 --> 00:05:10.098 is the reason whole basis of circulating money has to grow 00:05:11.483 --> 00:05:16.234 because to repay the debt which it is composed 00:05:16.234 --> 00:05:20.671 as we should also repay all interests 00:05:22.548 --> 00:05:28.246 Now i don't want to bore you, but the basic concept is that 00:05:28.269 --> 00:05:35.917 today almost all the circulating money represents a debt 00:05:35.917 --> 00:05:38.860 that we have to repay with interests. 00:05:39.537 --> 00:05:44.283 This is, I quote a source of my assertion 00:05:44.283 --> 00:05:48.560 is the last book by Richard Werner and Josh Ryan-Collins. 00:05:48.560 --> 00:05:50.852 i also met him in London 00:05:50.852 --> 00:05:53.152 and the book is titled "Where does money come from" 00:05:53.152 --> 00:05:55.560 "Where does money come from", released in September of this year 00:05:55.560 --> 00:05:58.358 and it is one of the most complete pubblications 00:05:58.358 --> 00:06:02.189 released about this issue in the last years . 00:06:05.432 --> 00:06:08.446 Now, you will return to home tonight 00:06:08.479 --> 00:06:10.697 I take my fried here as example again 00:06:11.112 --> 00:06:17.445 he will return to home this evening, he will meet his father in law and he will say him "Dear... 00:06:18.106 --> 00:06:22.453 What is his name? There's no father in law, let's call him Mario. 00:06:22.453 --> 00:06:26.280 "Dear Mario, you know that today I have attended a conference 00:06:26.322 --> 00:06:30.045 in the centre of Verona, at the cinema, there was this guy is from Romagna. 00:06:30.098 --> 00:06:34.137 He has said us that most of the money 00:06:34.245 --> 00:06:37.675 is not created by central banks but by commercial banks 00:06:38.045 --> 00:06:41.198 as credit, as a loan and they get it out of nothing. 00:06:42.802 --> 00:06:45.105 What will Mario tell you? 00:06:45.269 --> 00:06:48.246 This is not true, is not possible. I have got bills in my pocket 00:06:48.446 --> 00:06:51.662 and there is written on central bank, it's not possible. 00:06:53.108 --> 00:06:57.120 Then, but the guy from Romagna has quoted us other sources 00:06:57.120 --> 00:07:01.243 for example he has quoted the chief editor of economics section 00:07:01.243 --> 00:07:04.013 of "Financial Time" , in 2011 he declared: 00:07:04.013 --> 00:07:08.775 "The essence of the contemporary monetary system is the creation of money, out of nothing 00:07:08.775 --> 00:07:13.336 by private banks' often unruly lending." 00:07:13.336 --> 00:07:16.095 The original adjective is "foolish" ... 00:07:18.568 --> 00:07:21.973 Mario will say " Irritating journalists, one who says one thing 00:07:21.973 --> 00:07:25.450 and one who says different things i don't trust, for heaven's sake 00:07:25.450 --> 00:07:28.257 i wonder who that boy is". 00:07:28.257 --> 00:07:32.181 So then I will quote another example. 00:07:32.181 --> 00:07:34.328 This is an official document instead 00:07:34.328 --> 00:07:37.351 is the quarterly bulletin of the Bank of England 00:07:37.620 --> 00:07:39.814 Third in 2007, there is written on: 00:07:39.814 --> 00:07:44.078 "The most important role to create circulating money is covered by the banking sector" 00:07:44.078 --> 00:07:49.371 "When banks make loans, they create additional deposits for those who get into debt." 00:07:49.686 --> 00:07:51.148 And Mario says 00:07:51.343 --> 00:07:53.535 But the world is based on dollars, not on pounds 00:07:53.551 --> 00:07:57.228 who cares if Bank of England said it. 00:07:57.405 --> 00:08:00.158 But, be careful, because if even we talk about dollars 00:08:00.505 --> 00:08:03.360 there's for example the document by Federal Reserve Bank of Chicago 00:08:03.583 --> 00:08:05.683 entitled "Modern Money Mechanics" of '61 00:08:05.683 --> 00:08:07.002 where is written: 00:08:07.002 --> 00:08:11.249 "The actual process of money creation takes place primarily in the private banks. " 00:08:12.457 --> 00:08:15.188 And Mario says: "But that's an old document, it's of '61" 00:08:15.426 --> 00:08:17.495 Then, let's carry on. 00:08:17.695 --> 00:08:20.088 However it was updated and republished in 1992 00:08:20.088 --> 00:08:22.303 so anyway ... 00:08:22.497 --> 00:08:26.143 "but we are in Europe, we use Euro. Who cares about dollars?" 00:08:29.426 --> 00:08:31.142 Then to conclude: 00:08:31.188 --> 00:08:38.740 "In the the 'Euro-system the currency is created primarily through the expansion of credit bank the commercial banks can create money themselves" 00:08:38.970 --> 00:08:44.440 That is a document by Bundesbank entitled "Geld und Geldpolitik" 00:08:44.440 --> 00:08:47.763 Does anyone know Geman? I don't, but i know what it means 00:08:47.840 --> 00:08:50.471 "Currency and money policy" 00:08:51.140 --> 00:08:55.152 Now, my friend's father in law here what will he say? 00:09:00.075 --> 00:09:01.498 "You're communist" 00:09:01.591 --> 00:09:05.122 Because then all arguments are finished 00:09:05.122 --> 00:09:07.398 or alternatively "you are fascist" 00:09:07.602 --> 00:09:10.032 "you are an anarcho-insurrectionist" 00:09:10.317 --> 00:09:13.881 "you are a conspiracy theorist" 00:09:13.881 --> 00:09:16.097 but what gives me more bother is.. 00:09:16.351 --> 00:09:18.674 when people say ... i have now overcome the others 00:09:18.872 --> 00:09:21.503 but when people say "you are pessimist" 00:09:23.711 --> 00:09:27.068 As those are just quotes from books and documents 00:09:27.068 --> 00:09:29.060 let's look at some real things. 00:09:29.174 --> 00:09:31.409 For example, this is the Wikipedia page 00:09:31.568 --> 00:09:34.183 describes the economy of Greece. 00:09:34.386 --> 00:09:37.248 You know that Greek is bottom of the class. 00:09:37.594 --> 00:09:39.728 It has created many problems in the world economy 00:09:39.728 --> 00:09:42.674 many fears and concerns, and i would say 00:09:42.674 --> 00:09:48.051 in 2010 the greek government deficit was 26% 00:09:48.097 --> 00:09:52.726 that is the greek government made 100 and spent 126 00:09:53.820 --> 00:09:57.900 Obviously the rating agency's rating was the worst possible 00:09:57.900 --> 00:10:00.239 bottom of the class: CCC- 00:10:03.131 --> 00:10:07.457 But let's look at first of the class, United States. 00:10:07.457 --> 00:10:10.211 I have a looked at the same information again of 2010 00:10:10.465 --> 00:10:15.426 and i have verified it, the budget deficit in 2010. 00:10:18.395 --> 00:10:21.480 Then i have discovered what no one had never told me 00:10:21.480 --> 00:10:24.654 reading newspapers, listening television, books ... 00:10:24.719 --> 00:10:28.227 in 2010 the U.S. deficit was 59% 00:10:28.250 --> 00:10:31.443 The U.S. made 100 and spent 159 00:10:31.504 --> 00:10:33.781 more than double of Greece. 00:10:33.823 --> 00:10:39.215 Guess what the rating of U.S. government bonds was in 2010. 00:10:41.938 --> 00:10:46.778 AAA+ is not a laugh but it is precisely the best possible rating. 00:10:47.808 --> 00:10:51.072 Then, we are starting to understand somethings 00:10:51.072 --> 00:10:54.288 to begin with it is not clear how rating is got by rating agencies 00:10:54.388 --> 00:10:58.118 and this is a separate problem, however, what we begin to understand 00:10:58.118 --> 00:11:01.072 is the problem of budget deficit of the states i would say 00:11:01.142 --> 00:11:05.568 maybe it' s a "structural" fact, because a deficit like that is not usually done in one year 00:11:05.670 --> 00:11:08.664 is not that what was unlucky one year, okay? 00:11:08.910 --> 00:11:13.797 In fact, if we look at history a little 00:11:13.797 --> 00:11:17.024 this is here the trend of the total debt of United States 00:11:17.024 --> 00:11:19.137 not only as a government, because someone might say that 00:11:19.137 --> 00:11:21.993 governament gets debts, but the companies don't get debts. 00:11:21.993 --> 00:11:24.594 It is not true, this is the total aggregate debt of United States 00:11:24.594 --> 00:11:27.914 from 1955 to 2010. 00:11:27.914 --> 00:11:31.931 Do you see that red line? It's the structural trend of debt 00:11:32.977 --> 00:11:38.108 It rises, okay? From 5000 billion dollars has exceeded 00:11:38.108 --> 00:11:42.288 55.000 maybe 60.000 billion dollars 00:11:42.288 --> 00:11:45.445 So clearly, a structural trend. 00:11:47.168 --> 00:11:53.689 Now, returning to the origin of my talk, we have said that 00:11:53.689 --> 00:11:58.124 whole circulating money represents a debt 00:11:58.786 --> 00:12:00.799 It must continue to grow 00:12:00.799 --> 00:12:04.161 because to repay this debt with interests 00:12:04.161 --> 00:12:06.464 we need more and more money. 00:12:06.833 --> 00:12:12.636 So the economy using money must continue to grow 00:12:12.636 --> 00:12:18.627 We know that economy to grow , needs more and more money. 00:12:18.627 --> 00:12:21.065 Why does the GDP grow? How does the GDP grow? 00:12:21.065 --> 00:12:23.596 Surely exchanging more money faster 00:12:23.596 --> 00:12:25.964 It's a way, but the quantity of money must increase. 00:12:25.964 --> 00:12:28.936 So clearly this kind of sistem faces 00:12:28.936 --> 00:12:32.698 a structural limit, that is, if we have seen 00:12:32.698 --> 00:12:35.601 the continuing growth of total debt 00:12:35.601 --> 00:12:38.085 the economy must grow continuously to repay the debt 00:12:38.085 --> 00:12:42.961 There is a problem i would call Planet Earth 00:12:44.407 --> 00:12:49.788 Planet Earth, where we live, is one and also limited. 00:12:49.788 --> 00:12:53.921 So think about doing a constant infinite growth like that 00:12:53.921 --> 00:12:58.681 on Planet Earth, perhaps it means to face with a structural limit. 00:12:58.681 --> 00:13:02.466 Which is the other limit? If we continue 00:13:02.466 --> 00:13:05.833 to increase the total debt with new deficit every year 00:13:05.833 --> 00:13:08.666 clearly the expenditure to pay the interests, what will it do? 00:13:10.174 --> 00:13:14.776 It will increase. Current expenditure, the salaries of politicians 00:13:14.776 --> 00:13:16.776 maybe we compress it a little 00:13:16.776 --> 00:13:21.258 but what is trend of investment spending? It falls. 00:13:22.027 --> 00:13:26.197 So which is the other structural limit of this system? 00:13:26.197 --> 00:13:28.797 Clearly it is if the debt continues to rise 00:13:28.797 --> 00:13:30.284 and we have to pay the interests 00:13:30.284 --> 00:13:32.571 sooner or later we'll pay only the interests. 00:13:33.847 --> 00:13:38.039 Now very fast question: what do you think is 00:13:38.039 --> 00:13:39.943 our economic system name? 00:13:40.743 --> 00:13:47.188 Monetarism, market economy, free market. 00:13:48.619 --> 00:13:51.323 Honestly I don't very interested your thought 00:13:51.323 --> 00:13:53.945 what i think is in my opinion 00:13:53.945 --> 00:13:57.033 the system name is "debt based economy" 00:13:57.864 --> 00:14:01.584 Now i ask you, What is the end of this kind of system ? 00:14:04.107 --> 00:14:08.782 I don't think about it just me, surely there is also someone else 00:14:08.782 --> 00:14:11.383 but surely it won't make a good demise. 00:14:11.383 --> 00:14:16.236 Now the question is: do we want to make his own demise? 00:14:16.236 --> 00:14:18.999 to be buried under that mountain of debts 00:14:18.999 --> 00:14:21.600 or we want to choose ourselves, maybe to bury it 00:14:21.600 --> 00:14:23.550 and to invent ourselves something new. 00:14:25.950 --> 00:14:30.098 Now to do that, let's look back on logo that i use on my blog 00:14:30.098 --> 00:14:32.606 is pronunced Kaldàri 00:14:37.083 --> 00:14:39.437 I left this little writing on it 00:14:39.437 --> 00:14:43.194 on the 1 penny coin "We trust". 00:14:43.194 --> 00:14:45.679 Whole our monetary economic system 00:14:45.679 --> 00:14:50.323 and then our lives are based on trust about money. 00:14:50.323 --> 00:14:56.313 Today that confidence is used a little surreptitiously 00:14:56.313 --> 00:15:02.188 but it can also be used in a more useful and sustenable way. 00:15:02.188 --> 00:15:06.089 That is Island of Guernsey between England and France 00:15:06.566 --> 00:15:12.080 At the beginning of 1800 Island of Guernsey had a serious problem. 00:15:13.203 --> 00:15:16.358 A total debt of 20.000 pounds. 00:15:17.343 --> 00:15:21.670 on which it had state public revenues 00:15:21.670 --> 00:15:25.269 we can say it was a small town, of 3000 annual pounds. 00:15:25.931 --> 00:15:30.679 that had interests on debt of 2.400 pound a year 00:15:30.679 --> 00:15:33.303 That means there was 600 pounds 00:15:33.303 --> 00:15:35.346 to make investments and pay salaries. 00:15:35.346 --> 00:15:38.829 They didn't pay salaries, they had a serious problem. 00:15:38.829 --> 00:15:41.662 moreover they had decadent public structures 00:15:41.662 --> 00:15:43.589 the sea eroded the coast 00:15:43.589 --> 00:15:46.107 so they had a serious problem. 00:15:46.107 --> 00:15:48.233 They had to invent a way to resolve it 00:15:48.233 --> 00:15:50.602 without asking to borrow more money 00:15:50.602 --> 00:15:53.527 becouse otherwise they wouldn't be able even to pay interests 00:15:53.527 --> 00:15:56.360 and without charging other taxes to the popolation 00:15:56.360 --> 00:15:59.449 that already was at the limit. 00:15:59.957 --> 00:16:04.069 What did the people from Island Guernsey do in 1816? 00:16:04.069 --> 00:16:07.069 A very simple thing, they took small pieces of paper 00:16:07.069 --> 00:16:10.524 they wrote on "One Pound" 00:16:10.524 --> 00:16:13.915 and "State of Island of Guernsey" 00:16:13.915 --> 00:16:17.401 and they spent them. 00:16:18.001 --> 00:16:20.764 Without borriowing or otherwise. 00:16:20.764 --> 00:16:24.058 They took small pieces of paper and they wrote on them "One Pound" 00:16:24.058 --> 00:16:26.667 and why did they take them? To pay the people 00:16:27.800 --> 00:16:30.888 who were unemployed to get them to go and to cut the trees 00:16:30.888 --> 00:16:34.720 reconstructing the structure of the market, the barriers to the port 00:16:34.720 --> 00:16:37.947 and the economy restarted, okay? 00:16:38.901 --> 00:16:43.659 This is defined The Guernsey Experiment 00:16:43.659 --> 00:16:48.837 it is mentioned in several documents in the following years 00:16:48.837 --> 00:16:51.415 also in 1900, so i quote for example 3 00:16:51.415 --> 00:16:54.039 and it is remembered as the story of Island of 00:16:54.039 --> 00:16:57.568 Guernsey that just created his own currency 00:16:57.568 --> 00:17:03.396 no cost to the taxpayers and establishing a prosperous community 00:17:03.396 --> 00:17:05.254 free community from debt. 00:17:05.254 --> 00:17:07.460 indeed thriving community, prosperous means another thing. 00:17:07.460 --> 00:17:09.782 Free community from debt. 00:17:09.782 --> 00:17:14.983 Then, the people in Island of Guernsey understood 00:17:14.983 --> 00:17:17.235 a very very simple thing 00:17:17.235 --> 00:17:22.884 the currency that all of us know 00:17:22.884 --> 00:17:28.636 as a way to exchange value and to save value. 00:17:28.636 --> 00:17:31.562 Actually it has another function very much more important 00:17:31.562 --> 00:17:34.674 that is the stimulus to the social development 00:17:34.674 --> 00:17:37.553 that we measure as economic growth. 00:17:39.045 --> 00:17:41.245 Now, because this thing here ... 00:17:41.245 --> 00:17:44.565 Here there are economists, sure. How many economists are there? 00:17:45.180 --> 00:17:48.118 One. Good, worse for you. 00:17:48.118 --> 00:17:51.438 Then, Which is the speech? 00:17:51.438 --> 00:17:54.341 That they did this operation 00:17:54.341 --> 00:17:56.407 they printed tens of thousands of pounds 00:17:56.407 --> 00:17:58.915 they threw them on the market, they bought the work 00:17:58.915 --> 00:18:01.794 and there was no inflation on the island. But how? 00:18:01.794 --> 00:18:04.674 If one prints currency, prints more currency out of nothing this creates inflation 00:18:04.674 --> 00:18:08.435 Why was there no inflation, for a very simple reason 00:18:08.435 --> 00:18:13.730 Because they invested to make useful things, productive activities 00:18:13.730 --> 00:18:18.675 but what happens if you print money and use it for example 00:18:18.675 --> 00:18:21.717 to mop up all the gold there is on the island? 00:18:21.717 --> 00:18:24.945 So as everyone seek it, and no one find it and they are willing to pay more 00:18:24.945 --> 00:18:27.035 and the next day they will sell it at a higher price. 00:18:27.035 --> 00:18:29.398 What is this name? 00:18:29.998 --> 00:18:34.720 Clearly they didn't use that money to do things like that 00:18:34.720 --> 00:18:36.949 not for speculative activities. 00:18:36.949 --> 00:18:40.293 Now i ask you a question, the quiz of the morning 00:18:40.293 --> 00:18:43.474 just to wake up who already has signs of slowing 00:18:43.474 --> 00:18:48.513 Can you imagine at 7 tonight. Then, question: 00:18:48.513 --> 00:18:54.155 What is percentage of loans provided by banks for productive activities today? 00:18:58.170 --> 00:19:00.760 Swich on it? 00:19:02.267 --> 00:19:04.465 8% 00:19:04.465 --> 00:19:07.228 Obviously this refers to the UK market 00:19:07.228 --> 00:19:10.665 The european figure is a little difficult to assess 00:19:10.665 --> 00:19:14.473 but it was mentioned by Ben Dyson at the conference in London 00:19:14.473 --> 00:19:16.423 where i was time ago, where 00:19:16.423 --> 00:19:18.560 he is Ben Dyson of Positive Money 00:19:18.560 --> 00:19:21.429 who i met him, really a smart boy. 00:19:22.383 --> 00:19:28.196 He also mentioned the governor of the Bank of England on 25th October 2010 he said: 00:19:28.196 --> 00:19:33.745 "Of the many ways in which to organize the banking system what we have today is the worst" 00:19:33.745 --> 00:19:37.623 I didn't say that. I'm pessimist/conspirator 00:19:39.854 --> 00:19:43.056 Now, the question is 00:19:44.102 --> 00:19:47.051 but how can we resolve this problem we have today 00:19:47.051 --> 00:19:52.647 that is, the debt which is literally overflowing and flooding us? 00:19:52.647 --> 00:19:57.267 Then, the first part of solution i descrive summarily 00:19:57.267 --> 00:20:01.749 in my lectures sure is to do like the island of Guernsey 00:20:01.749 --> 00:20:06.602 breaking the link between the money emission and debt 00:20:06.602 --> 00:20:12.587 You'll say "but it's a very simple thing, maybe too simple" 00:20:12.587 --> 00:20:16.284 So you say " let's make a monetary reform 00:20:16.284 --> 00:20:19.512 we report the money emission to the state 00:20:19.512 --> 00:20:22.171 or to a public body, we say. 00:20:22.171 --> 00:20:24.134 Sorry, but at the beginning you have said that ... 00:20:24.134 --> 00:20:26.106 Who creates the money? The Central Bank. 00:20:26.106 --> 00:20:27.633 What is the Central Bank? A public body. 00:20:27.633 --> 00:20:29.301 So i.. 00:20:31.286 --> 00:20:33.817 but in theory you should to think it's a public body 00:20:33.817 --> 00:20:35.543 I have learned so. 00:20:35.543 --> 00:20:37.229 Then i'm just saying : 00:20:37.229 --> 00:20:39.644 we do as all of us believe 00:20:39.644 --> 00:20:42.938 we report the money emission to the hand of a public body 00:20:43.108 --> 00:20:46.122 in order to break the link with debt. 00:20:46.122 --> 00:20:48.777 And you'll say ... 00:20:48.777 --> 00:20:53.111 you say all these things but someone else has thought about it, right? 00:20:53.111 --> 00:20:57.453 In fact in '80 years when the 500 Lire note was circulating yet 00:20:57.453 --> 00:21:01.912 you could see a substantial difference compared to 1000 Lire notes 00:21:01.912 --> 00:21:07.670 on 500 notes was written "Italian Republic State ticket legal tender" 00:21:07.670 --> 00:21:10.653 while on 1000 Lire notes was written "Bank of Italy" 00:21:11.422 --> 00:21:13.349 Where is the difference? 00:21:14.210 --> 00:21:18.119 Then, the 500 Lire notes with on written "Italian Republic" 00:21:18.119 --> 00:21:23.460 were printed by state and were expended, they did not represent any debt. 00:21:23.460 --> 00:21:26.223 while if you read "bank" ... 00:21:26.223 --> 00:21:27.882 What do banks do? 00:21:27.882 --> 00:21:29.822 Question to guy here below: 00:21:29.822 --> 00:21:37.938 what does the tabacconist on the corner do, what does he sell? 00:21:38.923 --> 00:21:42.361 What does tabacconist sell? What does a grocer sell? 00:21:42.361 --> 00:21:44.590 No, that one is a pusher. 00:21:44.590 --> 00:21:47.444 What does the tabacconist sell? The cigarettes. 00:21:47.690 --> 00:21:50.377 Then, what i ask you is: What does the bank sell? 00:21:51.823 --> 00:21:55.109 The credit, that is debt. Then if you read "bank" 00:21:55.109 --> 00:21:57.709 it means that someone has sold a debt to someone else. 00:21:57.709 --> 00:22:00.031 So this thing was done 00:22:00.031 --> 00:22:02.562 it's not invented by me, i will tell you more. 00:22:03.839 --> 00:22:08.390 In England the guy of Postive Money, Ben Dyson 00:22:08.390 --> 00:22:11.270 collected some documents, he wrote a good book 00:22:11.270 --> 00:22:14.242 and he managed to convince two british parliamentarians 00:22:14.242 --> 00:22:18.468 Labour Michael Meacherand and Conservative Steve Baker 00:22:18.468 --> 00:22:22.392 respectively to the left and right, because they are the left and right 00:22:22.392 --> 00:22:29.660 both to support the currency reform proposed by Positive Money. 00:22:29.660 --> 00:22:32.075 What does it propose as a first step? 00:22:32.075 --> 00:22:33.723 Exactly what we have said 00:22:33.723 --> 00:22:37.021 to bring again the money emission to the hand of the state, to public body 00:22:37.021 --> 00:22:40.347 not to Berlusconi or Bersani, clearly 00:22:40.347 --> 00:22:44.637 to a public body which is able to value the impact and to do that 00:22:44.637 --> 00:22:49.118 So this proposal is in the hands of two parliamentarians 00:22:49.118 --> 00:22:53.042 Last Wednesday Ben and Josh Dyson 00:22:53.042 --> 00:22:55.179 the writer of the book I have just mentioned 00:22:55.179 --> 00:22:58.290 they also met other parlamentarians behind close doors 00:22:58.290 --> 00:23:01.587 at the British Parliament, to propose it. 00:23:01.587 --> 00:23:05.790 So this is not something invented by me, I come from Romagna. 00:23:06.821 --> 00:23:12.036 Then obviously there are other points for a proposal of monetary reform 00:23:12.036 --> 00:23:15.566 i propose at the lectures such as point for reflection 00:23:15.566 --> 00:23:19.304 today there is no time, i have already breached the 2 minutes and 30 seconds 00:23:19.304 --> 00:23:25.968 and then tomorrow if there is time at the meeting that will continue tomorrow 00:23:29.537 --> 00:23:35.001 but now to conclude i quote a saying i really like 00:23:35.001 --> 00:23:36.649 "think global act local". 00:23:36.649 --> 00:23:38.762 We have talked about this issue of debt 00:23:38.762 --> 00:23:40.829 of monetary system at the global level 00:23:40.829 --> 00:23:43.197 But what can we do now? 00:23:43.197 --> 00:23:46.402 Then, i and my friend Lore Prod 00:23:46.402 --> 00:23:50.140 he is an artist and graphic designer from Romagna 00:23:50.140 --> 00:23:52.207 we do great drinking 00:23:52.207 --> 00:23:59.660 we have created a manifest. This manifest tries to do 00:23:59.660 --> 00:24:03.074 what i think it is necessary to do now. 00:24:03.074 --> 00:24:06.789 that is to focus the attention on issue and solution 00:24:06.789 --> 00:24:08.972 on a possible solution. 00:24:08.972 --> 00:24:10.876 What is the problem today? 00:24:10.876 --> 00:24:14.637 All currency is debt today, it is emitted by private banks 00:24:14.637 --> 00:24:17.679 is encumbered by interests and can only grow. 00:24:17.679 --> 00:24:21.023 What, money or debt? They're the same thing. 00:24:23.408 --> 00:24:26.247 What is right asking? Correct is asking 00:24:26.247 --> 00:24:31.007 to bring again the money emission that we all use to the public hand. 00:24:31.007 --> 00:24:33.027 The money is a tool not the purpose. 00:24:34.489 --> 00:24:37.277 Then you can see archetype combination 00:24:37.277 --> 00:24:40.597 dead and life, disorder-order, gray-color 00:24:40.597 --> 00:24:42.106 In short we have worked a little 00:24:42.106 --> 00:24:43.662 if someone here does communication sciences 00:24:43.662 --> 00:24:47.026 He can write an article. 00:24:47.026 --> 00:24:51.952 I'll also tell you, finally what is meaning of that hummingbird up there at the top corner. 00:24:53.706 --> 00:24:55.992 I tell you a little story about hummingbird 00:24:55.992 --> 00:24:59.707 Then, there is a bug large forest fire 00:24:59.707 --> 00:25:02.586 all animals are fleeing included the lion 00:25:02.586 --> 00:25:07.347 is running away from the forest and crosses a hummingbird 00:25:07.347 --> 00:25:10.992 that is flying in opposite direction with a drop of water in its beak. 00:25:10.992 --> 00:25:14.080 Lion looks at it and says: 00:25:14.080 --> 00:25:17.238 "Hummingbird, where are you going with that drop of water?" 00:25:17.238 --> 00:25:20.536 hummingbird looks at it again seriously and says: 00:25:20.536 --> 00:25:24.204 "I don't know you, but i do my part" 00:25:24.896 --> 00:25:27.405 Thank you and i have finished with this. 00:25:27.405 --> 00:25:34.724 applause 00:25:37.858 --> 99:59:59.999 www.societasostenibile.org