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SOLIDAR
A CURRENCY FOR PEACE

Most of the money on Earth consists of empty figures, mainly issued as loans by business banks. When a loan is paid back the bank takes the interest, again and again. That makes an ever growing world debt that hits the poor at first - and later all. So, we need a fair and peaceful economic system. I think I found one. The system I propose is called Solidar. You can see it as an economic lifeboat, maybe parallel to the old currencies during a transition time.


THE STRUCTURE OF THE SYSTEM

The currency I propose is called Solidar. It is electronic, local, speculation-proof, and complementary. A new Solidar is nothing but an electronic figure, issued free of charge every night as potential money on so-called Base Accounts. That is for daily base income to the users and their commons. One-way locks on the Base Accounts hinder deposits after use.

The solidar is activated when it is used as payment on so-called Trade Accounts for transactions on a free market. There all sums are gradually reduced at the same rate as the inflow on the base income on the Base Accounts. From there it is equally distributed each night to the users and their commons. It means that a solidar user receives some base income every morning, enough for a decent life.

The Solidar Commons have Trade Accounts according to local votes and Base Accounts for paying salaries and equipment for common use in the region.
Disappearing solidars on the Trade Accounts are currently re-issued as new base income, equally distributed next morning on the Base Accounts of the users and their commons. Together it makes a continuous circulation of ever-new money on a free market of goods and services.
SOLIDAR FLOW IN A SOCIETY


1) The rate of reduction on the Trade Accounts is regulated by a tap in case of ecological/demographical change or to prevent nature disasters.
2) Exchange to foreign currency by import and for travelling.
3) Exchange from foreign currency by export and for visitors.
The Trade Accounts are used on a free market, and the Base Accounts are for passive saving. From there you can buy, but you could never deposit there. The solidar disappears on the market and recover next morning, equally distributed to the users on their Base Accounts where no depositions could be done after use.

The sum of moving solidars on the market will be the same in each round. That makes a constant circulation. Normally it regulates itself, as the time-limited solidar always enters the market as payment for real value.
In case of a sudden change the amount of base income and/or the rate of money reduction on the Trade Accounts could be actively regulated. At the departure of a user his/her accounts would be nullified along with a proportional part of the commons. That is for the balance of the system.
EXCHANGING SOLIDARS
Speculation-proof exchange is done by the Currency Reserve where solidars are exchanged to and from solidar regions with different rate of exchange.

Private import would be paid from the Base Account where no deposits could be done. Export income enters Trade Accounts where the sums are gradually reduced. Export-and import companies would get a “Currency Account” where export income is saved for later import. Electronic locks hinder all other transactions on the Currency Accounts.

The Solidar Commons are for society use and protection. It could even pay for international aid some day, such as soil and water sanitation and fuel cells for solar energy. Orders for international aid would go to companies and commons in a region. If the system succeeds it could spread, at least where electricity is available. The debt-free solidar would fill dreams. Our dreams are powerful. Imagine the financial market of today, built of dreams!

TIMING IS NEEDED
There are many interacting ways to attain peace and prosperity. One of the ways, a basic one, is to change our monetary system by a win-win reform that prevents interest without risk for booms and depression. The Solidar System could open the doors.

Today we live in a pyramid of debt, evoking fear, greed, egoism and even hate. A global catastrophe is threatening, so we need to prepare for a peaceful world change in a win-win way. All life is threatened, so we need monetary reforms worldwide. We cannot lay the burden on the next generation. It could be too late. A peaceful money-system like the Solidar can be the win-win-solution we need in times of repeated financial crises.

ALL ARE NEEDED
All are needed in a system with Base Accounts and Trade Accounts. Those who live on base 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. Everyone would contribute to the society in their own way.
A solidar project could start in a region of appropriate size. If it shows to be attractive it would spread. It could even reduce risks of war because of the time-limited solidar that can be exchanged without risk for speculation.
The solidar gives a maximum of result at a minimum of sacrifices, because of the forced-on cost-efficiency in the following "economic economy".

FREE TO WORK

The more pleasure of work, the more you work. The base income makes you free to choose your work, with or without salary, using your creativity and talents. Working for money lets your base income accumulate on your Basic Account for future use. In the meantime you fill needs and wants of others.
Dreams are strong. Our speculative money-market now occupies about 95 % of the money on Earth. All this money is built on dreams. The same dreams could make us slow down our consumption to an ecological level by free choice, letting your base income stay untouched without interest when you work for salary. Private base income would replace the private part of the taxes of today, such as social allowance, child allowance, pensions, insurances and the administration of it.

FREE MARKET OF WORK

Saving base income untouched on the Base Accounts could reverse the streams of poor people now hoping for work in big cities. Where there is money there is job.

The base income makes you free to refuse destructive work. If you do a job that others refuse you could claim for a high salary, maybe sponsored by the commons if the work is needed for society. You could even clean infection clinics or disarm land mines abroad and get salary for it, because the solidar is convertible; it could be exchanged. New freedom of work makes new free markets of real goods and services, and people will get the chance to use their abilities and gifts in their work. The day, maybe in a crisis time when we see how wrong the coupling between money and work is, we could turn it all around. We could understand one day, that money is there to be able to work, and not the other way around. That day the slavery would be gone.

The debt money we use has a built-in compulsion of economic growth. Swedish statistics showed that about 40 % of the consumer prices consist of baked-in interest paid by consumers lacking the compensating income by capital. About 3 % of the population showed to be winners. The rest would lose the game.

There is a common illusion that money is value per se. We have to realise that money is just a tool. Most people in the world are lacking the basic necessities because of the dubious interest-on-interest in the system we use. The money of today is a false symbol, abstracted from the real values it should represent.


SOLIDAR BUSINESS

The money-reduction on the solidar Trade Accounts makes you prefer gradual payments. 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. Flats could be leased until it is paid, and non-profit coops would be run without loans. There are no loans in the system, because the ever-new solidar disappears on the market.

Export-and-import companies get a so-called “Currency Account” where export income is saved for later import. Electronic locks would hinder other transactions on these accounts.

Exchange for import is mediated by the commons, as the companies have no Base Accounts. For import the payment is exchanged from the Base Accounts via the Currency Reserve. That is a way to hinder speculation. It means that there is no debt in the system.

The time-limited solidar would make a flexible real market served by many fine-meshed networks of ever moving money-rills, automatically adjusted to availability and demand.

The daily distribution of base income makes small scale production, shorter transports and saved resources. Black work would turn to white, economic crimes would disappear, and demand will be the only incentive for production. It means there are no obsolete investments to protect anymore.

Solidar companies would pay their costs at the same rate as the money-reduction on the Trade Accounts. In case of a surplus the costs are paid by gradual returns to the Trade Accounts of the supporting part-owners, because the companies have no Base Accounts.
New needs would be filled by new production, as there would be no obsolete investments to protect anymore. Companies and persons could support other needed production or donate their surplus for good purposes. When a product does not sell anymore it is closed without bankruptcy, because there are no loans or debts in the system.

GETTING RICH

A big salary is a long term salary of ever-new solidars. If you earn much, your stream of income will last longer, even after your work is finished - even until you die. At the time of departure the two accounts are nullified. Instead of inheritance the heirs would get a lifetime base income in solidars.

Getting rich is possible, but not at the cost of others, as the system is neither a zero-sum game nor a pyramid. The solidars make an ever-new stream that you cannot take hold of. See it as a wind to breath. The wind is ever new, and so is a solidar stream on a really free market.
Saving solidars untouched means saving nature and new options for the future. But there is a risk. The greedy one could build up a fortune on his Base Account while working for salary until he dies.
If he was wiser he would use his time better, maybe spending time with family and friends and helping where it is needed. The lack of life quality of the greedy one could be a warning for his descendants. They would probably catch the day much better then he did.
When you get old you can help and give instead of letting your saved basic income disappear when you die. Some would probably buy shares in hope-inducing production. Others might contribute to sanitation projects and peace, and all would surely give gifts to their loved ones before they die. The one who dies with empty accounts could die in peace.

HOW TO BEGIN
The system could be introduced as a pilot project in a poor region, maybe where taxation does not cover the needs anymore or maybe because of lacking pensions for an aging population, or entrepreneurs lacking risk capital.
When the solidar system is prepared it could even remain resting until it is activated, maybe as regional civil preparedness or to compensate future pensions that does not cover the needs of the population anymore.

Electricity is needed for introducing the solidar in the third world, for example by technological aid to build solar plants in deserts. That would be possible in a system that does not create debt. When there are no debts there is no risk for the countries to be indebted. The release of debt could change the world.

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




FREQUENTLY ASKED QUESTIONS
Q 1: Who makes the dirty work when you can live on base income?
A: We could claim for a high salary and let our base income accumulate on your Base Account. If the unattractive work is needed for society protection and other good reasons it could be partly paid by the Solidar Public Sector according to local votes. It would not cause inflation, because a solidar does not last. You can get many parallel solidar streams. As the Solidar makes a free market, even for work, it is ruled by supply and demand all the way.
Q 2: Wouldn't people get lazy when they can live on base income?
A: Some people would surely be lazy and bored, and some would take a time out to recover. Industriousness is not a value of itself, especially now when we need to reduce our over-consumption in the industrialized parts of the world. Instead of increasing our GNP we can reduce it. That could be a way to save the climate. In developed countries we need decreasing turnover to save life on Earth. It could be realized voluntarily because of the possibility to save base income untouched, maybe for a dream to be realized later.
Q 3: What is money?
A: It depends on the monetary system we use. Issued as neutral, interest-free means of exchange it will be a tool for multiple exchanges of goods and services – provided that enough people agree about using it. Money is a mental construction, an agreement that works if we share it with others. It is a collective contract working for better or worse – often worse, since the money of today is bought by money to the cost of life on earth and world peace.
Q 4: Couldn't the Solidar be backed by a stable value – gold for example?
A: The solidar is always backed, as it enters the market as payment for real goods and services. It is currently replaced by a new solidar, also issued as payment for real value. That makes ever new streams of time-limited money, instantly symbolizing sold goods and services on a free market. A solidar is like a mirror, instantly reflecting real value sold on a free market. That is why the solidar makes stable prices without backing in gold. The prize of gold is not always the same. It varies according to a world market backed by nothing.
Q 5: The system looks like Utopia. Could it be introduced today?
A: Building Utopia takes time, and time is now in the global crisis that threatens humanity and all living creatures. Economic/ecological lifeboats are not ready, but there is a hope as long as we can use the remedies, such as the solidar system.
Q 6: Isn't it too much money for children when they get their Base Account from birth?
A: Base Income could be available for the custodians until the maturity of the youngsters. That would replace the tax based child allowance of today. The Solidar Public Sector would pay for school and kindergarten, even health care and care for children and old people, for example.
Q 7: What about people in dry and infertile regions?
A: People could improve their living conditions even in dry and infertile areas as they could cooperate in international projects for water supply and solar power plants for electricity in infertile areas, even for export.
International aid would be much more efficient when the money does not demand interest and interest-on interest anymore. Interest-free and convertible money like the Solidar would free people from debt and poverty anywhere. Education and medical treatment, for example, could be financed by using the Solidar System. Much creativity could then be released. There is an idea to introduce the system in fertile regions at first when it is based on soil fertility and human creativity. From there you could support other regions as well, such as providing electricity and medical aid.
Q 8: How is high-tech financed in an economy based on leasing instead of loans?
A: The system also allows big and expensive production where many contribute, for example by building sun-cell plants in deserts. It could be realized, as the speculation proof Solidar is convertible and interest-free. At first it has to be tried as a bottom-up reform. Big Solidar projects have to begin in a small scale according to democratic votes, maybe as a pilot project for trying the system in a fertile environment. From there you could support other regions too, maybe by sun-cells in deserts and clean water. Imagine Sahara covered by sun-cells! It could be financed by debt-free money. It is a dream, but as a trial it has to be taken seriously.
Q 9: Wouldn't people buy a lot of things when they get a daily Base Income?
A: In the beginning we would surely buy what we long for, but that is a minor problem compared with the giant sums pumped into weapons and drug industry all over the world. The ever running Solidar would be a powerful obstacle for trading drugs and weapons
Q 10: How could you build a house when you use this time-limited Solidar?
A: You could save on your Base Account when you work for salary. And so you pay costs for the house by gradual instalments during the construction. You could also form a group to buy houses for each other. Apartments and houses could be leased until they are paid. All expensive things would be gradually paid at the same rate as the money-reduction on the Trade Accounts.
Q 11: How could I start a company by using the Solidar?
A: You could start with saved base income if you want an enterprise of your own, and you could buy the needed equipment by leasing. If you buy a part of a company you will pay your shares gradually and get gradual returns when there is a surplus on the Trade Accounts of the company you support. All sums on the market are gradually reduced and replaced by new time-limited money that moves until it disappears and is replaced by a new one. Such money cannot be hoarded or used as means of power.
Q 12: How could I use Solidars when I work in a foreign company?
A: As the Solidar is convertible you could use it for payments in Solidars, even abroad, and you could use the old currency when the old currency is demanded. That would be possible as there is a speculation-proof way of exchanging Solidars. The solidar could be exchanged within the limits of the currency balance in the region. When you use the old money you pay taxes as usual. The Solidar could serve regional real markets, parallel to the old money as long as it exists. In a financial crisis the Solidar could serve as a monetary Civil Preparedness. The Solidar could work parallel with the old currencies that does not harm anywhere.
Q 13: Couldn't the Solidar be issued by the state?
A: Experiments on using interest-free money have provoked the bank system before. We live with a global bank system, mightier than many nations. So if a state is threatened by the banks there would be a risk for repression. But still there is hope, because no bank would hinder our common survival by using ever-new money that cannot be hoarded. As the climate concerns all, even the most money-mighty bank would advocate a money system that protects all.
Q 14: Wouldn't people speculate in land instead of money?
A: As long as credit money is used it could be used for speculation in land. The social reformer Silvio Gesell once suggested municipalities to buy private land and let the former owners lease it, letting the tenancies be inherited. Such a land reform would not change the life of the former land owners, except that they could not sell the land. This proposal could be introduced in a Solidar Region, provided that the users vote for it.
Q 17: Wouldn't we get trapped into a collective march when we all get the same Base Income and the same rate of money reduction? It sounds boring.
A: On the contrary! A new freedom to choose ones work would occur because of the security of the continuous Base Income to all. You can become rich in the system but not at the cost of others, as the system doesn't require losers. Some people regard the system as leftist because of the economic security it gives. Others view it as right wing because of the personal freedom and the free market in the system. The fact is that the Solidar is neither left nor right. We have to get free from the old conceptions.
Q 18: How could work give social status when there is no competition?
A Other things would surely give status in a system that doesn't create scarcity. Instead of boasting of things and titles we could chose education and meaningful work. We could chose interesting work that fits our gifts and talents. Such a change would probably make us more broad minded and apt to appreciate values such as generosity and care.
Q 19: If you get a big sum on your Trade Account, couldn't you transfer parts of it, little by little to the Trade Accounts of friends? And couldn't they help you to save your Solidars by sending it back to your Trade Account?
A: It wouldn't make sense, since the rate of money reduction is always the same all over the region.
Q 20: It is a thrill to gamble on the Market, but where is the thrill here?
A: The new possibilities are thrilling too, even sensible because there is a positive thrill in taking initiatives like starting an enterprise or explore new fields of investigations, or to use your creativity and get a pleasure of work in many ways.
Q 20: What about inheritance?
A: You can not inherit Solidars because they are gone when you die. Your savings will die with you. That is for the balance of the system. Instead of inheriting money the descendants would inherit real value. When we get old we would surely use your saved money before we die, instead of letting them disappear for no use. When we get older we would surely send streams of Solidars to relatives and friends or support needed projects. Those who die with empty accounts would die in peace.
Q 21: What happens in a Solidar Region if the global information system collapses?
A: It could be a crash, even for the banks. But as knowledge cannot collapse, we could build up the Solidar System again - without interest! The common chock at the crash might favour the Solidar, because it provides basic security for all - also in the future.
Q: What would happen if we have no money until a new monetary system is constructed?

A: If we are mentally prepared at the time – maybe by using paper notes of short duration for all in a time of transitions – we might wake up and regard economy as household of real value for everyone. A collective change of mind could result in cultivating, caring, sharing, and preserving a new and solidar culture. That is still a dream, but it is worth trying.

oo0oo

There is a Swedish an association for implementing the Solidar, and another one for introducing it as a pilot project. Still we need a program for the system and financial support. It could be a game for education too. A good friend called Mose has described it. Thank you Mose!

ooOoo

For more info please call + 46 8 722 36 14
E-mail: asabrandberg@gmail.com
Home page: www.solidar.lir.be

The Solidar is described in Swedish and some other languages on Internet.
There is also an anthology called RAGNARÖK ELLER VÄRLDENS CHANS, SEK 150:- exclusive mail costs.

There is also a little pocket is called PENGAR PÅ PLANETENS VILLKOR. SEK 50:- exclusive mail costs.

For more info, please call + 08 722 36 14 or mail to Humanistiska Förlaget, Aggarpsvägen 71, SE-26694 Munka Ljungby humanist.forl@sverige.net


Åsa Brandberg,
psykolog, född 1940.

A NATURE CONGRUENT CURRENCY FOR PEACE

There is much to do these days. Soil and water have to be restored, and so have the biosphere and the atmosphere. Today we see how nature calls for action, so let us go to the root! We need a nature congruent money system to meet the situation. I believe I found one.

HOW IT ALL BEGAN

On a beautiful autumn day in 1994 an aspen tree was lit by the sun, beckoning with its golden coins in a breath of air. Absorbed by the beauty I pictured innumerable streams of energy dancing around me on its way out in space, partly saved and distributed by waters, mountains, forests, and the small worms working in the soil under my feet.

Inspired by the energy interplay I searched for a corresponding stream of money, reflecting the energy I saw. I asked how to find a system of money that currently reflects 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 into 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 money system but potentially a nature congruent economy for ecological, social and cultural development – even peace – because poverty is abolished by a fair money system.

A GLOBAL TRAP OF DEBT

The electronic money we use consists of empty numbers issued as loans by business banks. When a loan is paid back it is deleted. What is left is the interest that the banks charge on loans, again and again. The procedure is principally endless and escalating because of the interest-on-interest that follows. It means that we all are involved in an exponentially growing world debt that hits the poor and the eco-systems, eventually all life on Earth.

THE IDEA

We all welcome the sun that spreads its energy every morning to all on Earth. It might be a key. The solar energy has a flow pattern that we could imitate.

The currency I propose is called Solidar. It is electronic, regional, speculation-proof, convertible and complementary. A new Solidar is nothing but an electronic number, issued free of charge every night as potential money on so-called Base Accounts for daily Base Income of the users and their commons. One-way locks on the Base Accounts prevent deposits. It means that a Solidar can never go back after use. It is deemed to serve as means of exchange on a market until it is gone and replaced by a new Solidar, also once used as payment.

The Solidar is activated the first time it is used as payment on so called Trade Accounts for transactions. There all sums are gradually reduced at the same rate as the daily inflow of the Base Income that is equally distributed each night on the Base Accounts of the users. It means that a Solidar user always receives daily new Base Income on his or her Base Account.

The Public Sector has Trade Accounts for society needs and protection and Base Accounts for paying salaries and equipments for common use.

SOLIDAR FLOW IN A SOCIETY

1. The rate of money reduction on the Trade Accounts is the same all over the solidar society and returns next morning, equally distributed to the users.

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

3. Exchange from foreign currency by export and for visitors

Companies have Trade Accounts only. The Public Sector has Base Accounts for money supply and Trade Accounts according to democratic votes. Persons have one Base Account for receiving and saving Base Income, and one Trade Account for transactions. When a person dies his two accounts are nullified.

HOW THE SYSTEM WORKS

The Base Account is for receiving base income each night. You cannot deposit there. That is hindered by a one-way lock on this account. So, you save your money untouched and live on your salary for work that enters the Trade Account for transactions when you buy. When your Trade Account is empty you pay from your Base Account. That is to avoid loss.

The administration of the two accounts would be automatic and transparent. In case of a nature disaster or another sudden big change the amount of solidars could be regulated. The speed of money reduction on the Trade Accounts would be the same all over the solidar society. It means that a big payment takes longer time to reach the seller.

Ever-new streams of time-limited Solidars would follow the variations of sold products.

The ever new solidar stream always reflects the flow of goods and services sold on a market where it moves at the same rate all over. The higher price the longer is the duration of a solidar stream. The duration of a solidar stream differs according to the prices according to availability and supply.

The state of market regulates itself, as the time-limited Solidar only enters the market as payment for real value. The time-limited solidar cannot be hoarded.

In case of a nature disaster or another sudden change the amount of Base Income and/or the rate of money reduction on the Trade Accounts could be actively regulated, maybe by ecologists. 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.

EXCHANGING THE SOLIDAR

Speculation-proof exchange is done by the Currency Reserve. There the Solidar is exchanged to and from Solidar Regions with different rate of exchange. Even foreign currencies could be exchanged in a speculation proof way, see the flow pattern below.

Private import is paid from the Base Accounts where no deposits could be done. Export income enters Trade Accounts where the sums are gradually reduced. Export-and-import companies get a “Currency Account” where export income is saved without interest for later import. Electronic locks on these accounts hinder other transactions there.

The Solidar Public Sector is for society use and protection. It could pay for international aid one day, such as soil and water sanitation and fuel cells for solar energy. Orders for international aid could go to companies and the solidar Public Sector. If the system succeeds it would spread where electricity is available. A debt-free currency would fill dreams, and dreams are powerful! Imagine the financial market of today. It is built of dreams.

TIMING IS NEEDED

There are many interacting ways to attain stability, even globally. One way to is to replace our interest system by a win-win reform that prevents interest. Now we live in a pyramid of debt that evokes fear, greed, egoism and even hate and war. A global financial and ecologic catastrophe is threatening, but there are remedies. Time-limited money cannot make booms and depressions. We need to replace the dept-money by new, interest-free money.

EVERY ONE CONTRIBUTES

All contribute to money-peace in some way. Those who live on Base 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 users contribute to society in their own way, even those who are sick or lazy. Industriousness is not a goal per se, especially when we in the west reduce our over consumption for the sake of fair trade and healthy nature.

A Solidar project could start in a region of suitable size where people want to be pioneers. If the system shows to be attractive it will spread. The time-limited Solidars are exchanged without risk for speculation. It gives a maximum of result at a minimum of effort.

FREE TO WORK

The more pleasure of work, the more you work. The Base Income makes you free to choose a work without salary and use your creativity and talents for good purposes. When you work for salary you let your Base Income accumulate on your Base Account for future use. Most people however, would surely vary and combine the two lifestyles during the phases of life

Today the speculative World Market occupies about 95 % of the money in the world. Still we can slow down our consumption to an ecological level by free choice while letting the Base Income accumulate untouched without interest when we work for salary. Black work turns to white when private Base Income replaces the private part of the taxes of today, such as social allowance, child allowance, pensions, and insurances. The time-limited Solidar could be regarded as a tax, free from the interest-on- interest costs and the administration of it all.

FREE MARKET OF WORK

Saving Base Income untouched on the Base Accounts would reverse the streams of poor people, hoping for work in big cities. Where there is money there is job. That is why we have got a disastrous urbanization and countryside devastation. The ever growing urbanization is most disastrous in developing countries. It could be repaired though, because the security of Base Income could make people free to stay where they live and refuse destructive work.

If you have a job that others refuse you could claim for a high salary, maybe sponsored by the Solidar Public Sector if the work is needed for the society. Maybe you would clean infection clinics or disarm land mines abroad and get a high salary for it, as the Solidar could be exchanged to other currencies. Freedom to work makes a free market of real goods and services, and people would be free to use their gifts and abilities in their work.

One day we will see how destructive the connection between money and work really is. And so we could turn it around in a peaceful way. Then we would understand that money is there for us to be able to work – not the other way around. That day the slavery will be abolished.

Our debt money has a built-in compulsion of economic growth. Statistics from the Swedish Statistical Bureau shows that about 40 % of the consumer prices consist of baked-in interest costs, paid by the consumers who lack a compensating income by capital. Only about 3 % of the households showed to be winners in the game. The rest are economic losers.

There is a misconception that money per se is value. It is just a mental construction, but a powerful one. The money we use represents expectations, power, dreams and illusions. Still most people in the world are lacking base necessities because of the interest-on-interest in the system we use. The money we use does not represent real value, and so we have to change it.

SOLIDAR BUSINESS

The time-limited solidar makes a flexible real market served by many fine-meshed networks of ever moving money-rills, automatically, all at the same rate, and instantly adjusted to availability and demand.

The automatical money-reduction on the Trade Accounts make payments flow gradually at the same rate. Expensive things, such as equipment for production, would be paid by instalments or leasing. Houses could be paid during the construction, and apartments would be leased until they are paid. Non-profit co-operatives could be started without loans. A new world would open when the interest is gone, because there would be no loans in the system, and no minus posts, as there are no debts in the system.

Solidar Companies pay their costs at the same rate as the money-reduction on the Trade Accounts in the region. In case of surplus after the costs are paid they send gradual returns to the Trade Accounts of the part-owners, because a Solidar Company only has Trade Accounts. That makes a market where only supply and demand set the prices.

Needs would be filled by new production without obsolete old investments to protect. A number of companies and persons could support needed productions by sending solidar streams for it – and they would get returns when there is a surplus that cannot be saved, because Solidar Companies only have Trade Accounts. They receive payments gradually and get gradual return in case of a surplus. When a product does not sell anymore it is closed without bankruptcy, because there are no loans or debts in the system.

Export-and-import companies get a “Currency Account” where export income is saved for import. Electronic locks hinder other transactions on these accounts.

Export income enters the Trade Accounts where all sums are gradually reduced, and so it is currently used for gradual payments in solidars exchanged in the Currency Reserve.

By import the payment is also exchanged on the Currency Reserve in a speculation proof way. See the flow picture.

The daily distribution of Base Income makes a small scale production, shorter transports, saved resources, small-scale farming, and a populated countryside were people could be together without being stressed or cut out. Stress destroys both health and creativity.

HOW TO GET RICH

A big salary is a long term salary of ever-new Solidars. If you earn more, your stream of income will last longer, even after your work is finished, even until you die. At the time of departure your accounts are nullified. Nobody could inherit the Solidar, but every one in the system would have a compensating, lifetime Base Income.

Getting rich is possible but not at the cost of others, as the system is neither a zero-sum game nor a pyramid game, but an ever-new stream of passing Solidars that you cannot take hold of. It is like a wind to breath. A wind is ever new, and so is a Solidar stream on a market.

Saving Solidars untouched means saving nature and new options for the future. There is a risk though. A person could build a fortune on his Base Account while working for salary until he dies. If he was wiser he would use his time better, perhaps spending more time with his family and engage in charity work or whatever he likes.

When you get old you could help and give instead of letting saved Base income disappear when you die. Some would probably buy shares in hope-inducing production, and some may contribute to sanitation projects and peace work, and all would surely give gifts to their loved ones before they die. The one who dies with empty accounts could die in peace.

HOW TO BEGIN

The Solidar could be introduced as a pilot project in a poor region, maybe where taxation does not cover the needs anymore or maybe because of an aging population or entrepreneurs lacking risk capital.

CIVIL PREPAREDNESS

When the proposed system is prepared it could remain resting until it is activated, maybe as a regional civil preparedness or to compensate for future pensions that does not cover the needs of the population anymore.

Electricity is needed to introduce the system in the third world. That problem must be solved, maybe by technological aid to construct solar plants in deserts. That is be possible in a system that does not create debt. As there are no debts in the system there would not be any risk for countries to be indebted anymore. The release of debt could change the world.

THOUGHTS ABOUT A FUTURE

In times of crisis an increasing number of people would surely ask for a World Government with a strong leader. History tells, however, that power corrupts.

Even noble and caring people become speed-blind and develop greed because of the power of money. Power-addicts lose their conscience, because it works like a drug. Combined with chemical drugs it would be the worst disaster we can imagine.

Another nightmare is that nations with collapsed economies would build independent economies by trading with one another. Because of the threat they could evoke in a resting financial game there could be military consequences. So, it is time for win-win solutions. The Solidar System is one of several initiatives working for a deep-going change. Many are motivated. Parents want a good life for their children, even money-addicted parents. There are many lifeboats to build in a transition time that is already here.

A TRUE STORY

It happened on Gotland, a Swedish island in the Baltic Sea. The inhabitants used to exchange goods and services without money by negotiating about prices, measured in hours of help with the harvest. As the harvest time is the same for all the farmers they need another means of exchange.

One of the farmers told me that a fuel station was broken some years ago. In spite of a warning sign the customers deposited money in the fuel pump and took the receipt, but they got no gasoline. They complained of course and were told to come back later and get their gas by showing the receipt. Consequentially, receipts for gasoline were circulating as payment a long time after the gas pump was fixed.

I happened to say that they had used home made money. The farmer protested indignantly, but soon she calmed down and said: “Yes, we did use the receipts, but we never made fake money.” I asked about the difference. - It is the fuel, she said, because it was already paid. But she did doubt about the security behind the bank money. We concluded that money is money as long as we think it is money. It is a shared idea, a secret agreement - or what? Anyway, we concluded that money is practical – and also a question of life and death.

Note that the Swedish Finance Inspection scrutinized the Solidar System and reported that they have no objections against it, as it does not allow transactions on behalf of others.

ANOTHER TRUE STORY

One day my grandchildren and I went to a cash machine to get out some money. Alvin, the six years old grand-brother shouted WOW! You can get money from a wall!

Well, I said, I can only take out the money I already have. Not a lot.

Aha, said Alvin. Who makes the money?

Banks, I said.

How kind they are!

Not really, I said. You have to pay for the money.

Alvin was silent for a while, and then he said: “Do you mean that the banks make new money, so we can pay for the old ones?

That is right, I said.

Alvin thought again and said: “But the new money doesn´t cost, does it?

I was dumb, dared not answer… But at that moment his little sister interrupted. Thank heaven for that. I do not like to frighten small children.

Later I doubted that Alvin was as extraordinary intelligent as it appeared. Could it be so, that every normally gifted child can reveal our monetary system? I think so. Children are not indoctrinated. But what about us, the adults?

ooOoo

FREQUENTLY ASKED QUESTIONS

Q 1: Who would do the dirty and heavy work when you can live on basic income?

A: There can be a motivation to do such work. Provided that others refuse it you could claim for a high salary and let your basic income accumulate on your Base Account. If the unattractive work is needed for society protection it could be partly paid by the Solidar Public Sector. That would make two parallel streams of salary to the workers. As the Solidar makes a free market, even for work, it is ruled by supply and demand all the way.

Q 2: Wouldn't people get lazy when they can live on basic income?

A: Some people would surely be lazy and bored, and some would take a time out to recover. Industriousness is not a value in itself, especially when we need to reduce our over-consumption in the industrialized parts of the world. Instead of increasing our GNP we have to reduce it. It could be an important way to save the climate. In developed countries we need a decreasing turnover to save the life on Earth. That could be realized voluntarily because of the possibility to save basic income untouched, maybe for a dream to be realized later.

Q 3: What is money?

A: It depends on the monetary system we use. Issued as neutral means of exchange it would be a tool for multiple exchanges of goods and services – provided that enough people agree about using it. Money is a mental construction, an agreement that works if you share it with others. It is a collective contract working for better or worse – often worse, since money of today is bought by money to the cost of life on earth and world peace.

Q 4: Couldn't the Solidar be backed by a stable value – gold for example?

A: The Solidar is always backed, as it enters the market as payment for real goods and services. A Solidar is currently replaced by a new Solidar that also was issued as payment for a real value. That makes ever new streams of time-limited money, instantly symbolizing sold goods and services on a free market. A Solidar is like a mirror, instantly reflecting real value sold on a free market. That is why the Solidar makes stable prices than gold. The prize of gold is not always the same. It varies according to the world market that is backed by nothing.

Q 5: The system looks like Utopia. Can it be introduced today?

A: Building Utopia takes time, and the time is now when a global financial crisis threatens the system we use. It cannot last, so we need to build economic lifeboats as soon as possible.

Q 6: Isn't it too much money for children when they get their Base Account from birth?

A: Base Income could be available for the custodians until the maturity of the youngsters. That would replace the tax based child allowance of today. The Solidar Public Sector could pay for school and kindergarten, even for health care for children and old people. Such things could be paid by the Solidar Public Sector.

Q 7: What about people in dry and infertile regions? Would they be poor forever?

A: Even in dry and infertile areas could people improve their living conditions. They could cooperate in international projects for water supply and solar power plants for electricity in infertile areas, even for export. International aid would be much more efficient when the money does not demand interest and interest-on interest anymore. Interest-free and convertible money like the Solidar would free people from debt and poverty anywhere. Even education and medical treatment could be financed by using the Solidar, and much creativity could be released. There is an idea to introduce the system in fertile regions at first, as the Solidar is based on soil fertility and human creativity. From that platform you could support other regions as well, maybe by providing electricity and medical aid at first.

Q 8: How is high-tech financed in an economy based on leasing instead of loans?

A: The system also allows big and expensive production where many contribute, for example by building sun-cell plants in deserts. There might be decisions on a higher level to use the Solidar for big projects. It could be realized, as the speculation proof Solidar is convertible and interest-free. At first it has to be tried as a bottom-up reform. Big solidar projects have to begin in a small scale according to democratic votes, maybe as pilot projects for trying the system in a fertile environment. From there you could support other regions, maybe even by sun-cells in deserts. Imagine Sahara covered by sun-cells! It could be financed by debt-free money. This is still a dream, but as a trial it has to be taken seriously.

Q 9: Wouldn't people buy a lot of things when they get a daily Base Income?

A: In the beginning we would buy what we long for, but that is a minor problem compared with the giant sums pumped into weapons and drug industry all over the world. The ever running Solidar would be a powerful obstacle for trading drugs and weapons. No quick-fix could be done with the streams of ever new time-limited money.

Q 10: How could you build a house when you use this time-limited Solidar?

A: You could save on your Base Account when you work for salary. And so you pay costs for the house by gradual instalments during the construction. You could also form a group to buy houses for each other. Apartments and houses could be leased until they are paid. All expensive things would be gradually paid at the same rate as the money-reduction on the Trade Accounts.

Q 11: How could I start a company by using the Solidar?

A: You could start with saved base income if you want an enterprise of your own, and you could buy the needed equipment by leasing. If you buy a part of a company you will pay your shares gradually and get gradual returns when there is a surplus on the Trade Accounts of the company you support. As all sums on the market are gradually reduced and replaced by new time-limited money moving until it disappears and is replaced by a new one. Such money cannot be hoarded and used as means of power.

Q 12: How could I use Solidars when I work in a foreign company?

A: As the Solidar is convertible you could use it for payments in Solidars, and you could use the old currency when the old currency is demanded. It is possible because of the speculation-proof way of exchanging Solidars. The solidar could be exchanged within the limits of the currency balance in the region. When you use the old money you pay the taxes as usual. The solidar could serve a regional real market parallel to the old money as long as the old interest money exists. In a financial crisis the solidar could serve as a monetary Civil Preparedness.

Q 13: Couldn't the Solidar be issued by the State?

A: Experiments using interest-free money have provoked the bank system before. We live with a global bank system, mightier than many nations. So if a state is threatened by the banks there would be a risk for repression. But still we can hope, because no bank would hinder our common survival. As the climate concerns all, even the most money-mighty bank would advocate a nature-congruent money system that saves all of us.

Q 14: Wouldn't people speculate in land instead of money?

As long as credit money is used it could also be used for speculation in land. The social reformer Silvio Gesell suggested municipalities to buy private land and let the former owners lease it, letting the tenancies be inherited. Such a land reform would not change the life of the former land owners, except that they could not sell the land. This proposal could be introduced in a Solidar region provided that the users vote for it.

Q 15: Wouldn't we get trapped into a collective march when we get the same Base Income and the same rate of money reduction? It sounds boring.

A: On the contrary! A new freedom to choose your work would occur because of the security of the continuous Base Income to all. You can become rich in the system but not at the cost of others, as the system doesn't require losers. Some people regard the Solidar System as leftist because of the economic security it gives. Others view it as right wing because of the personal freedom and the free market in the system. The fact is that the Solidar is neither left nor right. We have to get free from old conceptions that do not fit the world situation in our time.

Q 16: How could work give social status when there is no competition?

A: Other things would surely give status in a system that doesn't create scarcity. Instead of boasting of things and titles you could chose education and meaningful work. You would chose interesting work that fits your gifts and talents. This change would probably make people more broad minded and more apt to appreciate values such as generosity and care.

Q 17: If you get a big sum on your Trade Account, couldn't you transfer parts of it, little by little to the Trade Accounts of friends? And couldn't they help you to save your Solidars by sending it back to your Trade Account?

A: It wouldn't make sense, since the rate of money reduction is the same for all.

Q 18: It is a thrill to gamble on the Market, but where is the thrill here?

A: The new possibilities are thrilling too, even sensible. There is a positive thrill in taking initiatives like starting an enterprise or explore new fields of investigations, or to use your creativity and get a pleasure of work in many ways.

Q 19: What about inheritance?

A: You can not inherit Solidars because they are gone when you die. Your savings will die with you. That is for the balance of the system. Instead of inheriting money the descendants would inherit real values. When you get old you would surely use your saved money before you die, instead of letting them disappear for no use. When you get old you would surely send streams of Solidars to relatives and friends or support needed projects. Those who die with empty accounts would surely die in peace.

Q 20: What happens in a Solidar Region if the global information system collapses?

A: It would surely be a giant crash, also for the banks. But as knowledge cannot collapse, we could build up the Solidar System again without interest. The common chock at the crash would favour the Solidar System, because it provides basic security for all - also in the future.

Q 21: What would happen if we have no money until a new monetary system is constructed?

A: If we are mentally prepared at the time – maybe by using paper notes of short duration – we might wake up and regard economy as a household of real value for all. The collective change of mind that comes from the new situation can result in a cultivating, caring, sharing, and preserving culture.

There is a Swedish Association for implementing the system, and another one for introducing it as a pilot project. But still we need an electronic program for the system. We also need financial support for the purpose.

For more info, call + 46 8 722 36 14 or e-mail: nypeng@hotmail.com

ooOoo

A friend gave me some leads that could be useful for programming the system:

Oberational systems:

Simulation tool Such tool can be used to project or plan what could be a solidar economy.

Operational toolset Think about what daily tool can be required for a daily operation of the solidar system, and develop prototype of them.

Educational softwares: Games are good for education. I see two main types of game that could possibly help:

Manage games, a little like Simcity. You can refer to the very good work of http://creo.ca that develops flash games for educational purposes, using simulation games to raise awareness especially among youngsters.

Role playing simulation where management games sees situation from above, at macro level, role players reverses it, proposes a view from individual situation, at macro level. A good example can be http://games2download.com/free-strategy-games/kudos-download.htm

(It is a boring sims-like game, but it gives the idea. Some people really like playing that kind of game. It is like a virtual tomagotchi, but here you can specify the context you want).

You also can be interested in community tools, social systems. But such software already exists, and for them you need more like a system administrator and/or a community engineer than a programmer.

ooOoo

About me: I was born 1940 in a big family. In my own family we were nine, including 4 foster-teenagers who later rendered me a job as foster home adviser. After studying Psychology, Social Sciences and Waldorf Education I worked with autistic teenagers for some years. At that time I became a widow with 3 children in school age. During these years I studied the phenomenon of money in connection with the idea of “Threefold Social Order”. After five years work with fair trade of biodynamic products I started a fair-trade silk import. Now I am retired, so I write, enjoy my grandchildren and help paperless refugees. Being retired is great, almost like being a Solidar User.

Åsa Brandberg

Tel. international: + 46 8 722 36 14

Tel. within Sweden: 08-722 36 14

E-mail: nypeng@hotmail.com

www.solidar.lir.be

A NATURE CONGRUENT MONEY FOR PEACE

There is much to do these days. Soil and water have to be restored, and so have the biosphere and the atmosphere. Today we see how nature calls for action, so let us go to the root! We need a nature congruent money system to meet the situation. I believe I found one.

HOW IT ALL BEGAN

On a beautiful autumn day in 1994 an aspen tree was lit by the sun, beckoning with its golden coins in a breath of air. Absorbed by the beauty I pictured innumerable streams of energy dancing around me on its way out in space, partly saved and distributed by waters, mountains, forests, and the small worms working in the soil under my feet.

Inspired by the energy interplay I searched for a corresponding stream of money, reflecting the energy I saw. I asked how to find a system of money that currently reflects 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 into 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 money system but potentially a nature congruent economy for ecological, social and cultural development – even peace – because poverty is abolished by a fair money system.

A GLOBAL TRAP OF DEBT

The electronic money we use consists of empty numbers issued as loans by business banks. When a loan is paid back it is deleted. What is left is the interest that the banks charge on loans, again and again. The procedure is principally endless and escalating because of the interest-on-interest that follows. It means that we all are involved in an exponentially growing world debt that hits the poor and the eco-systems, eventually all life on Earth.

THE STRUCTURE OF THE SOLIDAR SYSTEM

All of us welcome the sun, spreading its energy every morning to all of us. The life energy of the sun has a flow pattern that we hopefully can imitate.

The proposed currency is called Solidar. It is electronic, regional, speculation-proof, and complementary. A new Solidar is nothing but an electronic number, issued free of charge every night as potential money on so-called Base Accounts for daily Base Income of the users and their commons. One-way locks on the Base Accounts prevent deposits. It means that a Solidar can never go back after use. It is deemed to serve as means of exchange on a market until it is gone and replaced by a new Solidar, also once used as payment.

The Solidar is activated the first time it is used as payment on so called Trade Accounts for transactions. There all sums are gradually reduced at the same rate as the daily inflow of the Base Income that is equally distributed each night on the Base Accounts of the users. It means that a Solidar user always receives daily new Base Income on his or her Base Account.

The Public Sector has Trade Accounts for society needs and protection and Base Accounts for paying salaries and equipments for common use in the region.

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 Public Sector has one Base Account !!!!and one Trade Accounts to pay for common needs according to democratic votes. Persons have one Base Account for receiving and saving Base Income, and one Trade Account for transactions. When a person dies his two accounts are nullified.

HOW THE SYSTEM WORKS

When you buy your payment enters the Trade Account of the seller. You will pay automatically from your Base Account when your Trade Account is empty. That is to avoid unnecessary loss. The administration of the accounts will be automatic and transparent, but in case of a nature disaster or another sudden change the amounts of solidars could be changed actively by regulating the speed of money reduction on the Trade Accounts.

Ever-new streams of time-limited Solidars will follow the variations of sold products. Solidar streams always reflect the flow of goods and services sold on a market where the sums are moving at the same rate all over. The higher price the longer is the duration of a solidar stream. The duration of a solidar differs according to the prices according to availability and supply. The solidar state of market regulates itself, as the time-limited Solidar enters the market only as payment for real value. In case of a nature disaster or another sudden change the amount of Base Income and/or the rate of money reduction on the Trade Accounts could be actively regulated, maybe by ecologists. 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.

EXCHANGING THE SOLIDAR

Speculation-proof exchange is done by the Currency Reserve. There the Solidar is exchanged to and from Solidar Regions with different rate of exchange. Even foreign currencies could be exchanged in a speculation proof way, see the flow pattern below.

Private import is paid from the Base Accounts where no deposits could be done. Export income enters Trade Accounts where the sums are gradually reduced. Export-and-import companies get a “Currency Account” where export income is saved without interest for later import. Electronic locks on these accounts hinder other transactions there.

The Solidar Public Sector is for society use and protection. It could pay for international aid one day, such as soil and water sanitation and fuel cells for solar energy. Orders for international aid could go to companies and the solidar Public Sector. If the system succeeds it would spread where electricity is available. A debt-free currency would fill dreams, and dreams are powerful! Imagine the financial market of today. It is built of dreams.

A WAY TO SUSTAINABILITY

There are many interacting ways to attain stability, even globally. One way to is to replace our interest system by a win-win reform that prevents interest. Now we live in a pyramid of debt that evokes fear, greed, egoism and even hate and war. A global financial and ecologic catastrophe is threatening, but there are remedies. Time-limited money cannot make booms and depressions. We need to replace the dept-money by new, interest-free money.

EVERY ONE CONTRIBUTES

All contribute to money-peace in some way. Those who live on Base 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 users contribute to society in their own way, even those who are sick or lazy. Industriousness is not a goal per se, especially when we in the west reduce our over consumption for the sake of fair trade and healthy nature.

A Solidar project could start in a region of suitable size where people want to be pioneers. If the system shows to be attractive it will spread. The time-limited Solidars are exchanged without risk for speculation. It gives a maximum of result at a minimum of effort.

FREE TO WORK

The more pleasure of work, the more you work. The Base Income makes you free to choose a work without salary and use your creativity and talents for good purposes. When you work for salary you let your Base Income accumulate on your Base Account for future use. Most people however, would surely vary and combine the two lifestyles during the phases of life

Today the speculative World Market occupies about 95 % of the money in the world. Still we can slow down our consumption to an ecological level by free choice while letting the Base Income accumulate untouched without interest when we work for salary. Black work turns to white when private Base Income replaces the private part of the taxes of today, such as social allowance, child allowance, pensions, and insurances. The time-limited Solidar could be regarded as a tax, free from the interest-on- interest costs and the administration of it all.

FREE MARKET OF WORK

Saving Base Income untouched on the Base Accounts would reverse the streams of poor people, hoping for work in big cities. Where there is money there is job. That is why we have got a disastrous urbanization and countryside devastation. The ever growing urbanization is most disastrous in developing countries. It could be repaired though, because the security of Base Income could make people free to stay where they live and refuse destructive work.

If you have a job that others refuse you could claim for a high salary, maybe sponsored by the Solidar Public Sector if the work is needed for the society. Maybe you would clean infection clinics or disarm land mines abroad and get a high salary for it, as the Solidar could be exchanged to other currencies. Freedom to work makes a free market of real goods and services, and people would be free to use their gifts and abilities in their work.

One day we will see how destructive the connection between money and work really is. And so we could turn it around in a peaceful way. Then we would understand that money is there