The «future» of legal tender currencies

 

Monday, 13 March 2006 – It has seemed a mad idea, an unrealistic initiative. Indeed Dhana could be the only solution to face a foretold monetary catastrophe.

The new Iranian oil Stock Exchange (IOB, Iranian Oil Bourse) in Teheran should start on the 20th of March 2006. The price of oil will be quoted in Euros. The NYMEX (New York Mercantile Exchange) of New York and the IPE (International Petroleum Exchange) of London, where the price of oil is denominated in US Dollars, will have a new competing.

Oil quotation in Euros is the fundamental cause of the invasion of Iraq[1]. For the same reason the most important central banks, Chinese one included, which has more than 700 billion Dollars, are replacing reserves in Dollars with Euros.

At the Teheran Exchange where the oil will also be payable in Euros it won’t be necessary anymore to exchange national currencies only with Dollars. Naturally who holds Euros will be able to pay for the oil without having to get Dollars. The quotation in Euros at the Exchange in Teheran is a threat for the Dollar because its value, compared to other currencies, has essentially been kept steady for the last fifty years[2] by the necessity to purchase Dollars in order to pay oil.

During the first stage there will be an unavoidable devaluation and loss of purchase power of the Dollar in relation to other currencies. Because of the loss in purchase power, more Dollars will be printed and the money circulation risen. This is why the Federal Reserve has decided to suspend the publication of the outstanding monetary mass of Dollars beginning from the 23rd of March 2006.

The increase in Dollar mass will cause a further devaluation and loss of purchase power of the Dollar and, as reaction, new strong issues of Dollars. The Dollar devaluations-issues cycle will continue until the balance between the real value of imported goods and the real value of the goods and services exported by the United States won’t be reached.

During the second stage, also the Euro, being guaranteed for two thirds by Dollars, will suffer a purchase power loss equal to at least two-thirds the one of the Dollar. The same thing will happen with all the other legal tender currencies[3] devoid of real value.

It’s impossible to disinvest Dollars and Euros before the end of March 2006 and anyway it would be useless: by increasing the offer one would only cause it’s early devaluation. To stem the loss in purchase power of legal tender currencies one should exchange them with a currency with real value that allows preserving its purchase power.

A part from precious metals[4], the only world currency with real value is Dhana[5], the currency of the Republic of the Earth, guaranteed by capitals of enterprises for a nominal[6] value par to a gram of Platinum per each Dhana. This way, the value of the capitals that guarantee Dhana follows constantly the tendency of the price of Platinum, Keeping the currencies purchase power unchanged.

But, because Dhana can only be assigned in equal parts among the inhabitants of the planet aged at least 16 (100 Dhana each) and because it’s not possible to issue more than 100 Dhana per each assignee[7], it’s therefore impossible to change all legal currency in Dhana. Only to things are allowed: to ask the assignation of 100 Dhana and to ask for Dhana as payment both for sold goods and work performed[8].

The aim of Dhana is the equal redistribution of wealth. The acceleration of the diffusion of Dhana can bound the effects of the foreseeable monetary and financial disaster. Which will be above all suffered by the weakest. To ask payments in Dhana causes an increase in money circulation speed and, consequently, an increase of its purchase power[9].

In Italy Dhana has been opposed and, as a pretext, considered a financial product. It’s not true. Dhana is a payment means, a free currency, not a financial product. International law allows issuing different currencies from the legal tender ones as long as they are guaranteed. And anyone can ask it as payment. Dhana is a free currency, a currency with real value. It will never be legal tender. It doesn’t need it. The acceptance of Dhana as payment will be free and voluntary. And it will be the currency of the peoples, the currency of work.

Thanks for the attention.

 

P.O. Box 66 – IT- RE 380 - 42049 – Tel. +39 0522 470500 – Fax +39 0522 470524

www.asmad.org – www.unigov.org – asmad@asmad.org – asmad@unigov.org


[1] In 2000, Iraq had decided to substitute 10 billion Dollar reserves with Euros and to sell oil against Euros. During the Vienna meeting in the middle of March 2003, the other OPEC countries were about to decide the same: this is why Baghdad had to be conquered before that date. In fact, just after the taking of Baghdad, one of the first acts by governor Bremer was to re-denominate the price of the Iraqi oil in Dollars.

[3] Central banks issue currency with no real value (fiat money) that gains value just because of law (legal or tender or forced circulation) and they inject it on the market by purchasing goods and stock (usually public debts). Legal tender currency is a fake bill of exchange with no date used to finance states. It is also called debit money, because really it only represents nothing else than debits that will never be able to be collected, because public debts are constantly increasing. If the currency issued by central banks had a real value there wouldn’t be any need for legal tender.

[4] The value of available precious metals (gold, platinum, etc.) is almost lower than three per thousand the nominal value of the outstanding monetary mass.

[6] The real value is higher than the nominal one.

[7] For a total value of about 500 billion Dhana plus, a maximum extra amount par to 5% for humanitarian initiatives.

[8] Work is the fundamental value measure of goods. This is why one Dhana is worth one hour of normal work.

[9] It has been worked out that, thanks to the maximum issuing limit, the purchase power of Dhana could increase up to eighty times the current value.