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THE SOLIDAR – A CURRENCY FOR PEACE

On a clear autumn day in 1994 an aspen tree attracted my attention. It was lit by the sun like a lamp, beckoning with its golden coin leaves in a breath of air. Absorbed by the beauty I pictured the sun’s ever-new energy dancing around me on its way out in space as warmth, partly saved and distributed by waters, forests, mountains, and the small worms working in the soil under my feet.

Inspired by the energy interplay I began to search for a corresponding stream of money, reflecting the energy I saw. How could we find a means of exchange currently reflecting the energy we exchange on a market of goods and services?

I did not want personal values to destroy the logic, but I cannot deny that many conclusions made me happy and erased the rest of my right-left thinking. Consequences appeared, every day, every week, often thanks to inquisitive friends who forced me to go to details. Still I had to stick to the premises of nature, refusing politics to mix into the system.

During the time of development I realised that in my curiosity I had stumbled on, not just a monetary system, but potentially an entirely new economy for ecological, social and cultural renewal - even peace - as poverty could be abolished by a fair money system.

How the system operates

The proposed currency, called Solidar, is electronic, regional, convertible and complementary. A new solidar is nothing but an electronic number, issued free of charge every night as potential money on so-called Basic Accounts for basic income to persons and commons in a solidar region. One-way locks on the Basic Accounts hinder deposits there. That makes a lifetime basic income for a decent life to those who chose to join the system.

The solidar is “born” as money the first time it is used. At that moment it enters the market as payment on so-called Trade Accounts. There all sums are gradually reduced at the same rate as the inflow of new basic income, equally distributed each night to the users and their commons.

Ever-new streams of solidars would follow the variations of sold products. It means that the solidar streams reflects the flow of goods and services on a real market, served by ever-new time-limited money. That makes the solidar a symbol of real value at any time - like a wind to breath, running water to drink or the sunshine passing the Earth while giving life on its way out in space as warmth.

You could see the system as an ever moving network of passing money-rills, running like blood in the capillaries of a body. The concentration of the money passing the companies would be like blood vessels converging in the organs of the body of society.

The Solidar Commons only have Basic Accounts for society use. Companies have Trade Accounts only. Private persons have Trade Accounts for transactions and Basic Accounts for receiving and saving their daily basic income, enough for a decent life.

One-way-locks on the Basic Accounts hinder deposits and transfers between them. Transactions are done on the Trade Accounts where the sums are gradually reduced at the same rate all over the Solidar Region. It means that the transfer of bigger sums takes relatively longer time.

Used solidars could not be deposited. That is hindered by the one-way locks on the Basic Accounts and the money reduction on the Trade Account. So, if you want to save you work for salary.

Salaries enter the Trade Accounts where the sums are gradually reduced. It means that bigger sums will be transferred gradually to avoid loss, as all solidar sreams have the same rate all over the region. It means that a big transfer makes a long streams of money that takes longer time to reach the recipient.

The dissappearing solidars on the Trade Accounts would be currently re-issued as new solidars, equally distributed on the Basic Accounts of the users. The commons would get a part of the money for society use according to votes among the users.

The two different accounts in the system make a continuous circulation of ever-new money, currently distributed among the users in a Solidar Region.

The system has to be regional, because there are different human and nature resources in different parts of a country. It means that the solidar has a different relative value due to different real resources in different regions.

As soon a solidar is used it enters a Trade Account of a seller. From there it moves as payment on the market until it is gone and replaced by a new solidar, also once used from a Basic Account. That makes an ever new stream of time limited money reflecting real values sold on a free real market without loans or debts. There are no minus posts in the system.

When the total sum entering the market is the same in each round it makes a constant circulation. But in case of a nature disaster, a pandemic disease or another sudden change of real value the amount of basic income and/or the rate of demurrage (money reduction) on the Trade Accounts could be regulated. There is a technology for that.

At the departure of a user his or her accounts are nullified along with a proportional part of the commons. That is for the balance of the system.

The solidar could be introduced in an association, a coop or a private enterprise. It could even be introduced in different levels of society administration such as municipalities and states.

SOLIDAR FLOW IN A SOCIETY

1. The rate of reduction on the Trade Accounts could be regulated as with a tap in case of a sudden ecological and/or demographical change, for example by a natural disaster.

2. Exchange to foreign currency by import and for travelling.

3. Exchange from foreign currency by export and for visitors

Companies have Trade Accounts only. The commons only have Basic Accounts, and private persons have one of each from birth to death.

For private import you pay from your Basic Account where no deposits could be done. Companies only have Trade Accounts for transactions, so their import costs would be mediated by the Commons to prevent speculation.

You receive export income on your Trade Account where the sums are gradually reduced.

For import you pay from your Basic Account where no deposits could be done.

For private import of foreign currencies you buy it from your Basic Account via the Currency Reserve.

As companies only have Trade Accounts for transactions their exchange would be mediated by the Commons. That is a way to prevent speculation in money.

The gradual money reduction on the market is normally compensated by a corresponding inflow on basic income every night, equally distributed among the users and partly to the commons according to democratic decisions in the region.

Speculation-proof exchanges would be done via the administration of the Currency Reserve, from where the Solidars are exchanged to and from foreign national currencies and other currencies within the region - and also with solidars from other Solidar regions with different rates of exchange.

By import and for travelling the Solidar is exchanged from Basic Accounts, private and public, maybe via a group of ecologists for handling the Currency Reserve in the system. Their job would be to protect the balance of trade in the region on the premises of ecological and fair trade.

Foreign currency enters the Currency Reserve by export and tourism where it is used for import, travels and to pay foreign debt. Visitors would get a time-limited Basic Account for their travelling funds and a Trade Account to use it. Remaining Solidars could be exchanged back at their departure.

Income in foreign currency for export goes to the Trade Accounts of the exporting companies. As it cannot be saved it would be used for current expenses like salaries, company improvements and returns to the owners. Private persons could buy and sell over the borders of the region in the same way.

Even the Commons could import when it is needed, but it cannot export. That would be done via the Solidar Coops and enterprises on a market of goods and services, only.

The Commons are for common needs and protection, but it could even pay for international aid like soil- and water sanitation, fuel cells for solar energy in deserts, and other global needs. Orders for such projects would go to companies inside and outside the region.

If the system succeeds it could spread to any region where the reform is needed. Principally it could spread all over the world where electricity is available. The Solidar Commons also could fund costs for international cooperation. The speculation-proof way of exchanging solidars makes all of it it possible, even in a large scale.

The Swedish Finance Inspection has reported that they have no objections against the system, mainly because it does not allow transactions on behalf of others.

Consequences

A nature-congruent system is sustainable and promotes a healthy spirit of society. The relief of interest might be seen as a triviality by some people, but it would soon be clear that it is a way to many win-win solutions.

People who live on basic income would supply the market with money while resting or working idealistic, and those who work for salary would fill needs of others. Their savings would accumulate untouched on their Basic Accounts to fill a dream in the future. But most people would surely combine the use of the two accounts and vary their saving and consumption during the cycles of life.

All are needed in a system with a combination of Basic and Trade Accounts. Those who live on basic income could work idealistic or just recover. They would supply the market with money for those who work for salary and produce what is asked for. All are needed, and all could contribute to a peaceful society in their own way.

Demand would be the only incentive for production, because there would be no obsolete investments to protect anymore.

As the streaming, time-limited solidars cannot be accumulated, it makes an end of the misuse of people and nature.

Commons without taxes

Private basic income would replace the private part of the taxes of today, such as social allowance, child allowance and pension, including insurances and the administration of it all

The Commons will be a body evolved from a democratically strengthened form of our existing national and local governments to handle the provision of services such as railways, power stations, street lighting, garbage collection, and to organise other large scale works that is agreed about for the common good.

The Basic Accounts for the Commons make a simple and organic replacement for the taxation system of today. The money reduction on the Trade Accounts could be regarded as a negative interest compensated by the daily basic income for people and their commons. The compensating basic income would make a neutral, zero-interest economic system with a potential to spread.

The attractive passive saving on the Basic Accounts promotes a decent lifestyle by free choice. That is really needed when the climate and biosphere is threatened by over-consumption. In poor parts of the world there could be space for more basic income.

The Solidar Commons are funded by ever-new streams of new-issued, time-limited money. The interest costs, taxation and transfers would then be gone, and so would the interest costs of the companies. About 40% of the Swedish consumer prices consist of interest costs baked-in by the producers.

Interest is now charged by bank after bank around the world where interest is added to interest on loans with its security in another loan against interest - in round after round. This results in an explosive debt expansion of interest-on-interest in the global economy. It also makes immense social problems, as the system of today demands a race of economic growth, leaving the poor behind. Even the rich are affected by the race of growth now threatening the mankind.

The Solidar gives hope though. It could cure our money addiction and give space for a nature-congruent economy, where even most taxes are gone.

The more poverty, the more impending are the risks of war. Our debt money demands more debt money to fill the gap of a common dept that never can be filled.

The debt money of today makes an increasing world poverty that is threatening our dream of a world peace. The dream of peace will be true the day when the world poverty is abolished. This is not just a dream. It is a possibility.

A Solidar pilot project should start in a region of appropriate size. If the system shows to be attractive enough to spread it could reduce the risk of war, even globally.

In addition to saved human and natural resources the system makes a continuous capital allocation promoting decentralisation, release of polluting long transports and social disasters. The Solidar would give a maximum of result by a minimum of sacrifices, because there would be a giant cost-efficiency in the "economic economy" that follows.

Pleasure of work

The more pleasure of work, the more you work. Basic income makes you free to choose your work, with or without salary, using your creativity and talents. And if you work for money you would let your basic income accumulate on your Basic Account for a dream. In the meantime you fill needs and wants of others. More dreams can come true because the passive saving in the system.

Dreams are strong. Remember the speculative money-market now occupying about 98 % of the money on Earth. It is built on dreams. The same dreams could make us slow down our consumption to an ecological level by free choice, just by letting your basic income stay untouched without interest when you live on the salary for work. Private basic income would replace the private part of taxes of today, such as social allowance, child allowance and pension, including insurances and the administration of it all.

Passive saving would reverse the stream of poor people hoping for work in big cities. There is logic in that, because where there is money, there is job. But the money cost. A built-in mal-distribution caused by interest-on interest prevents people to settle where they want to live.

Free market of work

The basic income promotes a lifestyle based on new values. Free money makes you free to work. That is the opposite of a system producing victims. The really poor are sacrificed first. For the sake of peace we need to break the old coupling between work and money. We need money to be able to work, not the other way around.

The security of the basic income gives freedom to refuse destructive work. If you do what is needed you could claim for salary. You might even be sponsored by the commons if the work is needed for society protection such as cleaning infection clinics or disarming land mines. Freedom of work makes a free market of real goods and services, and people get a chance to use their gifts in the work. When we realize how wrong the old coupling between money and work is, then we could turn it all around. Maybe we understand one day, that money is there for us to be able to work. That day the era of slavery is gone.

The planet needs soil and water sanitation and renewable energy from sun, wind, and waves. The big projects could be financed by ever-new streams of time-limited solidars. That could slow the pathological consumption in the world. The biased, debt-creating system of today has a built-in compulsion of economic growth. Most of the interest costs, mainly baked into the consumer prices, are paid by those who have little or no compensating income by capital. The poor and the nature pay the bills. People starve to death every day, year after year, just because of the money we use.

Solidar Business

The built-in friction in the system makes small scale production, shorter transports and saved resources. Black work turn to white, and economic crimes would be history. If the Solidar is spread worldwide it could be the end of real poverty.

Time-limited, ever-new money makes a flexible real market served by fine-meshed networks of moving money-rills, automatically and momentary adjusted to availability and demand.

The money-reduction on the Trade Accounts of companies motivates gradual payments all over a Solidar Economy. Expensive things would be paid by instalments or leasing such as equipment for production of different kinds. Houses would be paid gradually during the construction, and flats would be leased until they are fully paid. A diversity of non-profit coops could be started without loans and debts.

To avoid loss the companies would pay their costs gradually, at least at the same rate as the money-reduction on the Trade Accounts. In case of a surplus returns would immediately be sent as gradual returns to their share-buying supporters. Bigger transactions are gradual all over a Solidar Society.

New demands are filled by new production adjusted to actual needs and wishes, as there would be no obsolete investments to protect. Companies and private persons could donate surplus on their Trade Accounts to help organisations, or they could support a needed production by buying shares.

When a product does not sell anymore the production would be closed without bankruptcy, because there are no loans or debts in the system.

How to get rich

A high salary means a long term salary. It could even last long after the work is finished - even until you die and your accounts are nullified. It means that you can get parallel streams of income at the same rate.

Getting rich is possible, but not at the cost of others, because the system is not a zero-sum game, and not a pyramid, just an ever new stream of passing Solidars that you cannot take hold of, just like a wind to breath. The wind is ever new, and so is the solidars on a market.

Saving the Solidar untouched means saving nature and options for the future. There is a risk though. The greedy one might build a fortune on his Basic Account until he dies. If he was wiser he would have used his time better, spending more time with family and friends or giving and helping when it still was possible. His stupidity and lack of life-quality could be a warning to his descendants, who probably would catch the day better than he did.

When you get old you could take the chance to help others instead of letting your saved basic income disappear when you die. Some might buy shares in hope-inducing production. Others might contribute to sanitation projects and peace work, and all would like to give gifts to those they love before he dies. The one who die with empty accounts dies in peace.

Introducing the system

The system could be introduced as a pilot project where the taxation does not cover the needs anymore, maybe because of an aging population. It could also be introduced for countryside entrepreneurs lacking risk capital in the system of today.

When the system is prepared it could remain resting until it is activated, maybe as a regional civil preparedness or to compensate for insufficient pensions.

Electricity is needed to introduce the system in the third world. Such problems must be solved, maybe by technological aid to build sun plants in deserts. That would be possible in a system that does not create debt. As there are no loans in the system there would be no risk for countries to be indebted anymore. The end of debt could change the world.

Context

The amount of the virtual money of today is varying around 95 % of the money on Earth. It enters the market as debt against interest, issued worldwide at an explosive rate to pay a likewise explosively growing global debt. More new money is a way to postpone the built-in collapse of our monetary system. It cannot survive without “economic” growth, and the life on Earth cannot survive an “economic” growth. Today we need economic lifeboats.

There is a risk that many would ask for a World Government. Even if the first world leaders should be wise, it does not guarantee that the followers are. History shows many examples of that. Even most caring people can get speed-blind and develop greed for power. Power-addicts lose their conscience. Some turn to beasts. Money-power works like a drug. Combined with chemical drugs it would probably be the end of life on the planet.

Another nightmare is that nations with collapsed economies would build simple independent economies by trading with one another. Because of the threat they could evoke in a still resting financial game there could be military consequences. Timing is needed for win-win solutions.

ooOoo

Two true stories

One day I took out money from a cash machine together with my six years old grandson Alvin and his little sister.

– Great, said Alvin. You can get money from a wall! –Well, I said, I can only take out the money I already have. Not a lot. – I see, said Alvin. – Who make the money? – Banks, I said. – How kind they are! said Alvin. – Well, I said. Money costs. – So the banks make new money for the cost? – Hmm, I said.

Alvin continued. – But the new money do not cost, do they?

He needed an answer. Fortunately his sister interrupted, and I was released.

Even adults are questioning the man-made pyramid of debt money. I wonder what would happen in an open discussion about money. It has begun, so we need to be careful. Timing is needed for the sake of money peace.

oo0oo

This is another true story about money. It is from Gotland, a poor island in the Baltic Sea. Since a long time the inhabitants used to exchange goods and services without bank money. They negotiate about the prices measured in hours of help. A farmer on the island told me the story.

A fuel station was broken. In spite of a warning signboard the customers put money in the machine and took the receipt - but they got no fuel. They complained of course and were told to come back later and get their fuel by showing the receipt. And so there were many receipts on fuel moving as payment a long time after the station was repaired.

I liked his story from real life, and I mentioned that they had used home made money. The farmer protested indignantly, but soon he calmed down and said: “Yes, we used the receipts, but we never made false money.” I asked about the difference. The difference is the fuel, he said, because it was already paid. But he doubted about the security behind the bank money. At last we concluded that money is money as long as we think it is money, just a shared idea - and a question of life or death.

ooOoo

My background:

I was born in 1940. Once I had a family of nine including 4 foster-teenagers who later rendered me a job as a foster home adviser. After studying psychology, social sciences and Waldorf education I worked with autistic teenagers. Suddenly I was a widow with 3 children in school age. Inspired by my own money problems in addition to ideas by Rudolf Steiner and others I was dealing with the phenomenon of money during the seventies and eighties. I also stumbled onto “three-folding” at the Rudolf Steiner Highschool and through five years work in a Norwegian organization, Helios, consisting of producers, sellers and consumers who regularly met and negotiated about prices, amounts, sorts and qualities. Later I started a fair-trade silk import and post order in Sweden. Today I work in some organizations for ecological and social renewal, and I try to help refugees.

I am retired now. It is almost as if I was a Solidar User.

Åsa Brandberg, Sweden, E-mail nypeng@hotmail.com Tel. +46 8 722 36 14

”You never change things by fighting the existing reality. Build a new model that makes the existing model obsolete.”
R. Buckminster Fuller