Silvio Gesell Free Money & The Natural Economic Order

Сильвио Гесел был предпринимателем а потом и нетрадиционным экономистом. Во время инфляций и дефляций он искал понимания настоящей природы денег. Разработал систему "Свободных денег", - местной валюты и их циркуяции.

The Natural Economic Order
http://en.wikipedia.org/wiki/The_Natural_Economic_Order

The Current Economic Condition

We live in an economic system that is very inefficient. The consequences of these inefficiencies are clearly visible in the form of the credit crisis. Many companies will go bankrupt because of lack of demand, even though they make useful products. Many people will become unemployed, so demand falls back even further. Governments and central banks are intervening, which disturbs the functioning of markets. This enables inefficient companies to remain in business when they benefit from government intervention and the intervention in the financial system by central banks.

It is possible to achieve a much greater prosperity, with maximum capital growth without inflation, large debts, economic crises, unproductive government intervention and the unproductive part of the financial sector. Natural selection will ultimately determine the most efficient economic system, despite the political power structures that still exist at this moment. The investigation of alternatives and dissemination of knowledge will accelerate this process, but the ultimate outcome will not change. The most efficient economic system is probably a variant of the economy of the natural order, which was first described by Silvio Gesell.

The charging of interest is uneconomic. This is because people may be hoarding money for a rainy day. When more people do this simultaneously, money is removed from circulation, weakening the economy. When this happens, even more people will start hoarding money, because they expect times getting worse. This is the beginning of an economic crisis. Many people will lose their income, and if they do not have money, they must borrow money against interest for unavoidable expenses such as food. As a result, the situation becomes even worse.

Abolition of interest is more economic. Abolition of interest will therefore lead to greater prosperity.

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[zanyk81]

current system exists outside of natural free market and outside of any ability of self-correction. current system captured by the sick, irresponsible, greedy individuals who commit economic crimes and bribe politicians and also could drag mankind into the apocalyptic nuclear war. So any way out of such system is better then what’s going on today.

[cris750]

An equilibrium must be enacted and maintained between the state entity,the corporate entity and the people. The stagnation of the circulation of money is the reason why there are depressions and recession. The competition between corporations(free-market) is a natural phenomena and the only way to solve this is to introduce an equilibrium tax system. Both K. Marx and Silvio Gesell had wrong solutions. Marx: The destruction of the Coprorate entity!Gesell: The introduction of New Money!

[cris750]

The creation of new money or FREE MONEY is not the solution in the long term. The reason is because unemployment and inflation would affect the "new money" years later becuase naturally the businesses within the "new money" circulation would once again hoard or accumulate or save their "new money". Otherwords, the "new money" is a temporary fix and would be tarnished years later and the cycle of economic recession and depression is repeated! The only way to get out of the cycle is to tax the 1%.