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Study Stack
AFJM Coffee House

TOPICThe Next Money Crash—and a Reconstruction Blueprint

With Uli Kortsch


Content: Link to recording / Introduction / About the Speaker / The Study Stack / Forthcoming AFJM Coffee Houses / Appendix


Recording of the March 22 Coffee House is here.


Introduction

We were exited to host monetary author and activist Uli Kortsch. He just published the anthology The Next Money Crash. This book lays out an action plan for monetary reform with some room for improvisation. Kicking the proverbial can down the road feels easy, but can lead to devastating consequences. The point of a system redesign is to acknowledge we have a broken monetary system, that has drifted far away from serving "We the People". Mr. Kortsch discussed the needed actions described in the book on money and banking. (order from author; Look inside at Amazon)

Review of book on Amazon:

Uli Kortsch and his colleagues have made a valuable contribution to the current conversation about increasing inequality in our country. They demonstrate convincingly that our current monetary system, which relies on the decisions of private banks to create money through creating debt, is increasingly complex, fragile, at the mercy of these private decisions, and ultimately unsustainable. Well-intentioned regulatory efforts to mitigate the increasingly adverse impacts on ordinary Americans only make the system more complex and fragile. Kortsch and his colleagues advocate a return to the monetary system envisioned by many of our founders, in which money supply is managed by the sovereign in the interests of the common good. The society they envision and the solutions they advocate will be difficult to achieve but are essential to contemplate and consider attempting.

 

About the Speaker

Uli Kortsch is the Founder of both Global Partners Investments as well as the newly formed Monetary Institute. Currently most of his time is spent on the Institute whose mission is to drive monetary and fiscal strategies to better serve and. protect humanity. In 2013 he was asked to organize a conference on this topic at the Federal Reserve Bank in Philadelphia, the proceeds of which were published as a book. More recently he was asked to organize an in-depth conference, in Switzerland toward the objective of changing the country's constitution to a modified Chicago-Plan style. A follow-up conference was held in Athens, Greece, with the Governor of the Bank of Greece as host. Together with other leading economists, he wrote The Coming Money Crash developing this Plan with greater detail, concentrating on changing national monetary structures toward greater general welfare and increasing equality.

As President of Global Partners Investments and other ventures Mr. Kortsch has worked in over 50 countries, written a bill for Congress, and conferred with numerous national presidents, ministers of finance, and ministers of commerce. He has served on many corporate boards with both for-profit and not-for-profit organizations.


 

The Study Stack

A. Sources by the speaker and mentioned by him

Kortsch, Uli (Ed.). 2021. The Next Money Crash—and a Reconstruction Blueprint. Bloomington, IN: iUniverse. (order from author; Look inside at Amazon)

Kortsch, Uli (Ed.). 2014. The Next Money Crash--and How to Avoid It. Proceedings from a Conference at the Federal Reserve Bank of Philadelphia Building. Bloomington, IN: iUniverse. (Amazon)

Money Creation in the Modern Economy. Conference co-organized by Uli Kortsch held in Zurich, Switzerland on February 5, 2018. In 2018, a referendum was held to change the national constitution mandating a change in the monetary/banking system into a Chicago-Plan-Stil (Vollgeld). The purpose of the conference is to examine this topic from all viewpoints and create a discussion among global experts as to the impact of this change in today’s economic environment.

Real Money Economics. Web site of Uli Kortsch dedicated to 1) Inform, connect, and give a voice to the public; 2) Raise awareness of the connections between our current monetary and banking system and the biggest social, economic, and environmental challenges of today; 3) Promote real and viable improvements to our economic and financial system; and 4) Fight for a sustainable system that works for rather than against society.

Global Partners Investments, Ltd (GPI). Uli Kortsch, president. GPI is a Pennsylvania based private strategic advisory and intermediary firm that specializes in Commercial, Public-Private, Sovereign and Philanthropic project advancement.

Dawnay, Emma & Degiacomi, Maurizio. 2018. "Lessons Learnt from the Swiss Referendum on Sovereign Money". Presentation at The Future of Money – 10 Years after Lehmann and Nakamoto Conference at the Frankfurt School of Finance & Management, 30 Jan 2018. See slide 30 for claim that in a poll "80% think that only the SNB [Swiss National Bank] should have the permission to create money".

Wiki entry: Social Credit System. This is a national blacklist being developed by the government of the People’s Republic of China under General Secretary of the Communist Party of China Xi Jinping's administration.

Investopedia entry: How the SWIFT System Works 

Gabriel Crossley and Katya Golubkova . 2021. "China, Russia vulnerable to dollar risks as sanctions from West multiply". Yahoo!Finance, 23 March 2021.

McMillan, Jonathan. 2015. The End of Banking: Money, Credit, and the Digital Revolution. Zurich, Switzerland: Zero/One Economics. (Amazon)

Baltensperger, Ernst & Peter Kugler. 2017. Swiss Monetary History since the Early 19th Century. Cambridge: Cambridge University Press. (Amazon; Google) See pages 38-40 for 1891 monetary reform.

Wiki entry: Inflation Targetting

NBER. 1998. "Inflation Targeting Has Been A Successful Monetary Policy Strategy". National Bureau of Economic Research (NBER), Issue No. 4, April 1998.

 

Countries mentioned where just money reform might happen:

  • Uli Kortsch: Preferably 'clean' countries with a population less than 10 million: New Zealand, Guatemala.
  • Dan Sullivan: Poor, tolerably stable, not dominated internally by banking: New Zealand, Iceland, Greece, Rwanda, Peru.
  • Appendix A: Countries with its own stable national currency: Brazil, Chile, Colombia, Mexico, Peru, Malaysia, South Africa
  • Political Geography Now. 2020. "Which Countries Use the Euro in 2020? (Map of the Eurozone)".


 

B. Sources mentioned by participants (also in the chat & found by editor)

Zarlenga, Stephen. 2014 (2006). Presenting the American Monetary Act / The 32-Page Brochure”. Valatie, NY: American Monetary Institute. Extensive introduction to, and final version of, the NEED Act.

United States of America (2012): H.R.2990 National Emergency Employment Defense Act of 2011 (NEED Act). 112th US Congress (2011-2012).

Huber, Joseph. 2021. The future of money between CBDC and stablecoins. The Diem example. Sovereign Money: Website for Monetary systems Analysis and Reform, March 2021.

Tavlas, George S. 2020. "On the Controversy Over the Origins of the Chicago Plan for 100 Percent Reserves: Sorry Frederick Soddy, It Was Knight and (Most Probably) Simons!.Hoover Institution, Economics Working Paper 20102. (Hoover Institute; Bank of Greece)

Ortlieb, Pierre. 2019. "Central Banks and the Folk Tales of Money". Economic Questions, 3 Feb 2019.

Hooper, John. 2013. "Switzerland votes against cap on executive pay". The Guardian, 24 Nov 2013. Referendum on limiting bosses' pay to 12 times that of lowest-paid staff (Swiss minimum wage is $25/h, so bosses minimal maximum wage would be still ca. $600,000/y).

Ruml, Beardsley. 1946. "Taxes for Revenue are Obsolete". American Affairs, January 1946.

Zarlenga, Stephen. 2001. “Henry George’s Concept of Money: And Its Implications For 21st Century Reform“. Valatie, NY: American Monetary Institute. 

Richard Vague. 2020. "Richard Vague on credit expansion and land speculation". Zoom conference by Council of Georgist Organizations, 18 May 2020.

Richard Vague. 2019. A Brief History of Doom: Two Hundred Years of Financial Crises. Philadelphia. University of Pennsylvania Press. (Amazon)

Lakey, George. 2020. "The Fiery Forge of Polarization". Friends Journal, 1 Sept 2020.

Fisher, Rober & Ury, William. 2011. Getting to Yes: Negotiating Agreement Without Giving In. London & New York: Penguin Books. (Amazon)

Ury, William. 1991. Getting Past No: Negotiating with Difficult People. New York: Bentam. (Amazon)

Werner, Richard A. 2014. “How do banks create money, and why can other firms not do the same? An explanation for the coexistence of lending and deposit-taking”. International Review of Financial Analysis, 36 (2014): 71–77. 

Serafimova, Katherina. 2021. "Beyond Crises: Co-Creating with the Nature of Money". In Kortsch, Uli (Ed.). 2021. The Next Money Crash—and a Reconstruction Blueprint. Bloomington, IN: iUniverse. Pp. 331-339.

Grubb, Farley. 2016. Is paper money just paper money? Experimentation and variation in the paper monies issued by the American colonies from 1690 to 1775. National Bureau of Economic Research (NBER), Working Paper 17997, Cambridge, MA.

Barathan, Vipin. 2020. "Central Bank Digital Currency: The First Nationwide CBDC In The World Has Been Launched By The Bahamas". Forbes, 21 Oct 2020.


Forthcoming AFJM Coffee Houses


AFJM Coffee House, Monday, April 26

At 8 pm ET / 7 pm CT via Zoom
With Dr. Mark Cassell

Dr. Cassell is a professor of Political Science at Kent State University. He is the author of Banking on the State: The Political Economy of Public Savings Banks (Amazon). He will talk about the very functional, decentralized system of German savings banks and the takeaways from Germany’s experience for efforts in the United States.

 

AFJM Coffee House, Monday, May 24
At 8 pm ET / 7 pm CT via Zoom
With Joe Bongiovanni & Ben Rininger

On Central Bank Digital Cash. A summary, the pros & cons, and a deep dive. Stay tuned for details.
 

Appendix A:

Typology of currencies in Spanish-speaking and Portuguese-speaking countries

  • Eurozone (Spain / Portugal): need to coordinate strategies with other Euro-zone countries (Austria, Finland, Germany, the Netherlands etc.)
  • US, Puerto Rico: coordination with AFJM
  • (Almost) dollarised countries or countries whose money is backed with dollar / euro (Ecuador, El Salvador, Panama, Cape Verde, Equatorial Guinea, Guinea Bissau, São Tomé and Príncipe, Timor Leste): Sand Dollar (https://www.sanddollar.bs/ ) in the Bahamas is very interesting. Other similar countries / economy: CFA Franc countries (Africa), Middle-East. Hong Kong, Cambodia etc.)
  • Countries with its own stable national currency (Brazil, Chile, Colombia, Mexico, Peru etc.): Other similar countries / economies: Malaysia, South Africa
  • Countries with its own unstable national currency (Argentina, Cuba, Venezuela): People distrust national currency and only trust US dollar. A proposal should be like Petro in Venezuela, but it should count with international warrant so people do trust this money.
 

Caveat: The views and opinions expressed in AFJM Coffee Houses are those of the presenters and participants and do not necessarily reflect the official policy or position of the Alliance of Just Money.

 
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