Advantage 32 – Rehabilitation of state finances and asset protection

Excerpt from the book »Gradido – Natural Economy of Life«

»Tax justice and sound state finances are not opposites.«

– Guido Westerwelle

German politician, FDP [Liberal Party]

The following sections are concerned with the transition from the old to the new system. We present solutions as to how the wealthy countries can restructure their state finances and be able to repay their debts. For the poor countries, there will be a debt cut. We will also show a possibility for safeguarding private assets in the case of a monetary crash so that they are available in the gradido currency after the changeover to the Natural Economy of Life.

In this way we take the wealthy states and citizens on board as long as they wish this. The less wealthy and the poor have only advantages from the changeover anyway. They just need to be informed, which is the purpose of this book.

If we humankind want to survive, we can only accomplish it together. All peoples and races, people of all religions and views, men and women, poor and rich must all unite to achieve the common goal. We are all in the same boat – the spaceship Earth. Nobody must be excluded and there must be no more enemy stereotypes. »Survival« is our common goal.

Why do I write that just at this point? Well, there are people who think it is completely unimportant if the states repay their debts and if existing private assets can be protected. This opinion is possibly based on the view that there are »good« and »bad« states and people. Only when we have rid ourselves of such hidden or openly articulated enemy stereotypes do we have the chance of surviving together and creating worldwide prosperity and peace and in harmony with nature. 

Advantage 33 – Repayment of state debt in just a few years

Excerpt from the book »Gradido – Natural Economy of Life«

»There should be an orderly state insolvency procedure,

in which the creditors are also involved.«

– Angela Merkel

German Chancellor, 4 May 2010

Since May 2010 at least there has been completely official talk about impending state bankruptcies in Europe. These are a result of the system and will come sooner or later in the old system. The bailout funds will not prevent this and they actually lead to even more state debt. There may also be a collapse of the euro or a complete financial crash.

You remember that the present money is created through borrowing and therefore debt and assets have to be roughly equal. Conversely, this means that the cancellation of debt also means the cancellation of assets, no matter if it be a haircut or repayment of the debt.

Our model for repaying the state debts starts with a step-by-step introduction of the gradido. Parallel to this, part of private assets are changed from euros to gradidos. The euros collected from the asset exchange are used to repay the state debts. The loss of money resulting from this is offset by introducing the gradido. The model can succeed in all countries where there are sufficient private assets. I would like to illustrate it with the example of Germany.

The state debts in Germany have now risen to some 2 trillion euros. The total assets in Germany amount to some 5 trillion euros. A gradual asset exchange can be arranged in conjunction with the plan for phasing in the gradido. In phase 1 one percent of all assets would be changed from euros into gradidos annually. In phase 2 two percent etc. up to a total of five percent annually in phase 5.

That means that 250 billions euros would be changed into gradidos every year in phase 5. 100 billion euros would be needed to pay the interest and 150 billion would remain for repayment of the debts. After ten years 1.5 billion euros would have been repaid. Strictly speaking, it is even more because the interest has decreased as well. The remaining 500 billion euros will have been fully repaid in another four years.

The advantage for the states is obvious: they repay their debts. And the advantage for the banks is that they get their money back. How does it benefit private individuals?

Advantage 34 – Protection of private assets

Excerpt from the book »Gradido – Natural Economy of Life«

»We tell people their savings deposits are safe.

And the government vouches for this as well.«

– Angela Merkel

German Chancellor, 5 October 2008

Anyone who goes around with their eyes open will have heard that our present monetary system will not long remain as it is. A financial crash is in store for us sooner or later. Some clever citizens are quickly buying some gold and others are hoarding food supplies for several months in their cellars. These may be sensible precautions for the moment when the crash happens.

But what about people who have invested their hard-earned money at a bank, in a building society, in life assurance, securities and so on? In the case of a financial crash their money will in all probability be gone. Perhaps they had saved it so as to be able spend a pleasant retirement. Perhaps they wanted to set up a business with their savings. Maybe they have saved for a new car or wanted to renovate their house. Hard luck! After the financial crash their savings are gone. Hopefully people are clever enough after the crash at least to introduce the Natural Economy of Life everywhere!

Then the second part of the asset exchange will take effect: people who declare their assets honestly and have changed the prescribed percentage into gradidos will get all their lost assets paid out after the changeover to the gradido. Their money is put into an annuity scheme to prevent it vanishing after a short time because of decay. Somebody who, for example, has lost 100,000 euros in the financial crash, will be paid out 5,000 gradidos a year for 20 years, thus saving their private assets. 

Advantage 35 – Capital flight is not worthwhile

Excerpt from the book »Gradido – Natural Economy of Life«

»Make yourself an honest man, and then you may be sure

that there is one less scoundrel in the world.«

– Thomas Carlyle

Scottish essayist and historian

Asset protection is, so to speak, the state’s thanks to its citizens who have declared their private assets honestly and contributed to clearing state debt. Their honesty is rewarded and they get their old assets paid out in gradidos.

But a person who has kept their assets secret or taken them abroad beforehand does not enjoy asset protection. In the case of a monetary crash capital flight will therefore not have been worthwhile. However, it does not need to be punished. In this case as well we prefer to work with positive motivation and reward honesty.