Thursday, March 28, 2013

E-mail to the members of the German Bundestag

To the motto "Should not be said, we had not known"  we had sent an email to all members of the German Bundestag and the Federal President  already at 09 June 2005.  Answered then had members of the CDU, the Greens and the SPD, and the President.

Almost eight years later, in the global financial crisis we sent on 11 March 2013 again an e-mail to all members of the German Bundestag.

Answers (if any) can be read on our German blog.

The solution to the financial crisis: Gradido - Natural Economy of Life.

Dear Mr .............

In the Gradido Academy for Economic Bionics we have for years been studying the question of what we can learn from nature in order to achieve worldwide prosperity in peace and in harmony with nature. 3,300 people from all social classes worldwide are currently participating in the research project »Natural Economy of Life«. I would like to present the results up to now to you:

Our debt-money system is racing into the crash with mathematical precision. Bailouts help to gain time until the solution is there.

The solution is available now:

Gradido – Natural Economy of Life.
A way to worldwide prosperity and peace in harmony with nature.

- Patterned on nature
- Active Basic Income
- 100% full employment
- Ample national budget including health and social services
- Equalisation and Environment Fund for decontaminating the environment

The common good currency Gradido is created not by debt but by contributing to the common good. Environmental protection and restoration are the most lucrative industries of the future.

You can find more details about this in my book »Gradido – Natural Economy of Life«:

With Gradido you generate climate-friendly sustainable prosperity of historic proportions – now.

Please check out the Natural Economy of Life!
The countries which are the first to introduce it and the politicians which support it will go down in history.

Don’t hesitate to contact us – we will be glad to advise you.

Yours sincerely

Bernd Hückstädt

Gradido Akademie für Wirtschaftsbionik
Inh. Margret Baier
Pfarrweg 2
D 74653 Künzelsau
Tel. +49 (0)7940 546 0810
Fax: +49 (0)7940 547 500

Wednesday, March 6, 2013

Economic simulation: Gradido versus the old monetary system

In my blogpost »The destruction of the village«, I describe in a little story, how our current money system destroyes with compelling mathematical precision the formerly healthy structures and produces exactly the disastrous conditions which we witness today in small and large scale.

In the Gradido Academy we have developed an economic simulation game, which let the participants experience this on their own body. The simulation consists of four passes, two in the old debt money system and two in the Gradido model,  the Natural Economy of Life. We run this simulation game within our seminars and consultings. It can also be booked for conferences and similar events.

Simulated are ten businesses of daily living (including the Bank) and the State. In the first year houses are built and the economy is booming. In the second year the finished houses are finished, no need to build anything. We have recession.

Current money system 

Because in our monetary system by the law of balance the sum of assets must meet exactly the sum of debts, some of the participants have at the end of considerable assets and go to the winning side. The remaining participants (usually the majority) have to share the debt and go to the losing side. 

Since the loser can not pay back their loans, the banks get into trouble, partly go into bankruptcy and thus also on the losing side.

Now the state has to take care of the losers. Firstly through social programs and secondly through bank Bailouts. The State have no other choice than to go into debt. And so he goes on the losing side too.

The above chart shows the typical distribution after the second round, at the end of the debt-money version of our simulating game. From eleven players are eight on the losing side, the two large bars at the right stand for the banks and the state. The three players on the winning side can not become really happy too, because they attract all envy and hate from the losers and have to defend themselves if necessary by force of arms. Seen such, they also lose. A zero sum game produces only losers in the long run. 

Gradido – Natural economy of Life

How much different looks the image in the Gradido model! All are in the plus. And all have more than have enough to live. Nevertheless, there are still differences, stimulating competition. 

Gradido is a plus-sum game. Here there are only winners. The large bar at the right stands also for the state, who has considerable surpluses (without need to impose taxes). 

Experience it for yourself!

With this simulation game, you get in an entertaining way a deep insight into the problems of our current monetary system, which does not allow other conditions for mathematical reasons, and into the brilliant solution, that enables prosperity for all – in peace and in harmony with nature. 

There is probably no faster, more effective and more sustainable way to experience with all your senses the fatal mechanisms of our current monetary system and simultaneously the beneficial solution. Therefore, this simulation game is part of our seminars and consultings.

Even if you perform conferences, meetings or other events on Money & Economics, you can offer your guests this unique experience. 

Your request may be directed to

The destruction of the village – Creation of deposit money

Our monetary system has some absolutely glaring dysfunctions, which already from a purely mathematical viewpoint do not permit any different conditions from those we have in the world at present. I would like to explain what I mean by this in a story:

The nice little village

In a little village live three families:
  • The Farmer family
  • The Tailor family
  • The Mason family
Whatever there is to do, one of the three families does it perfectly or they do it together. The Farmers are in charge of producing food and also run a small country inn. The Tailors are responsible for everything to do with clothing and are famous for their traditional costumes. The Masons are talented craftsmen who are always on the spot when there is something to build or repair. Nothing is lacking in our little village; the villagers are happy and contented.

The bank comes to the village

One day a young family, the Bank family, moves to the village from the nearby town. Mr and Mrs Bank are thrilled by the idyllic villages and would like to make their contribution to its prosperity. They invite the whole village to the country inn. There they suggest that each of the local families open a current account. At first this is free of charge. If they have a debit balance it costs a small amount of interest but for this they can afford much more immediately. Besides that, the Bank family would make purchases in the village, thus bringing the interest they have taken in back into circulation. Each of the three respected families would receive an overdraft of  € 10,000 without special security, i.e. everyone is allowed to overdraw their account by € 10,000. No sooner said than done.

The economy flourishes

The first thing the Farmers do is to have their inn redecorated. The Tailors decide to hold their daughter’s wedding reception in the Farmers’ inn. For this big celebration all the villagers have new suits and dresses made by the Tailors. In this way visible prosperity comes to the little village. After a short time all the houses are freshly painted, the villagers also dress in their Sunday clothes on workdays and go out wining and dining. As everything is going so excellently, Mr Bank is only too pleased to increase the credit limit for all the families, which makes the economy flourish even more. He spent most of the income from the interest in the little village. He liked the Farmers, the Tailors and the Masons, and the Banks had found a place in their hearts.

A rude awakening

One day the bank was visited by inspectors. They found that the Farmers and Tailors had for a long time exceeded their credit limits. It seemed that they were running up greater and greater debts. On the other hand, the Masons had a credit balance of more than a million euros on their account. The two families with debts had exactly the same amount of debts as the Masons’ credit balance. The former were secretly ashamed of their debts and the latter of their wealth. And as they never talked about money, they all thought that the other families were in the same situation as themselves. After all, they all had nice houses, lovely clothes and held lavish parties.

But how did these high debts come about?
Well, nothing else is possible mathematically. When someone transfers money to another person, the former has a debit and the latter a credit. The total amount of all the accounts is zero. We call this the law of balance and it is a zero-sum game.

The collapse

The bank then requires the Tailors and Farmers to repay their loans immediately, which they naturally cannot do. Therefore their houses are forcibly converted for other uses: a supermarket moves into the former country inn and a clothing discounter into the Tailors’ house. But they are not successful for very long either and soon have to give up. The country houses which used to be so attractive have become empty ruins.

Although the Masons did earn a great deal of money initially, they could not really be happy about it as after all they had lost their best friends. The latter were now living in council houses which had been built by external companies. Discounters had also commissioned external construction companies since they were cheaper than the Masons. The nice village had been destroyed.

And the Bank family? Apart from the fact that they had also really liked the families, they had to write off their losses. The enforced conversion of the buildings had brought in far too little to cover the bad loans. So as not to go completely bankrupt. they are applying for one of the government bailouts but these are more for large banks…

All in all, all those involved have lost.

Small scale and large scale

This story is not a unique case. It is happening systematically on a large scale throughout the world. You don’t believe it? Then just change the names and make Greece, Spain and Germany out of Farmer, Tailor and Mason!
If this is happening everywhere on both a small and large scale, the system must be at fault, which it in fact is.

Our monetary system is a zero-sum game: according to the law of balance the sum of all accounts has to be zero, i.e. total amount of credit absolutely has to equal the total amount of debt. This makes the vast majority of people into losers of the system.

Friday, March 1, 2013

Survey to improve the usability

We want to improve the usability of the Gradido website.

If you have ideas, comments and suggestions for improvement, then this is the right time to let us know.

We collect the suggestions, summarize and try to integrate the best of them.

Together we can achieve something. We look forward to the help of all.

For your suggestions please use the following form.