Monthly Archives: April 2014

Eurocat: Interest-free money to finance Catalan small businesses

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This event took place on 04th April 2014 at PIMEC, Barcelona with the aim to present Euro-cat, a new complementary currency which will start working in June all over Catalonia (Spain).

The first speaker who appears after welcome greetings was Ernest Maragall, Vice president of the Fundació Catalunya Europa, who gave the presentation titled “Money and bank: cause or effect of the crisis?”. He started by mentioning that the productivity growth in the US in the last 20 years doesn’t correspond to the median family income, showing that employees in Spain are less paid than European average in terms of the compensation and in the US the percentage of top 10%’s income has increase from 35% to 50% between 1982 to 2007.  He argued that the concentration of the wealth created the bubble and therefore the crisis, criticising the cowardness, spider web effect and the lack of regulation.  He also presented that Germany improved its commercial balance while Spain worsened it after euro was introduced and finished by underlying the importance of regulations and institutions.

The second speaker was Marcel Coderch i Collell, former vice president of the CMT and an Eurocat promoter, who told about “What is money? Where does it come from?”. He started by quoting the phrase of Mayer Amschel Rothschild, founder of the Rotschild family: “Let me issue and control a nation’s money and I care not who writes the laws” and that of Henry Ford: “It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning,” implying the currenet system’s unfairness. His presentation was based on the two books: “Where does money come from?” and “Modern Money Theory,” said that the Bank of England has just published two reports, i.e.: “Money in the modern economy: an introduction” and “Money creation in the modern economy” in which it admitted that most money is created as debt, accentuating also the fact that the commercial banks decide which projects will be financed and criticising the current trend to insist on slashing government debts.

Then followed Jordi Griera Roig, co-founder of the Instituto de la Moneda Social (Social Currency Institute) and president of the Fundación INEVAL, which showed the words of Joan Casals (1925-1998), co-founder of PIMEC and former president of Ecoval, as he foresaw that the fiscal separation between the North and South of Europe would churn out unbearable tensions into the Euro due to the diference in productivity, just as what has happened.  He also told that neither the European Central Bank nor the Bank of England has the goal to make monetary policies serve to reduce unemployment while the Federal Reserve in the US does have it as main goal and therefore US has decreased the unemployment while Europe has increased it.

After the pause came Bernard Lietaer, global expert on social and complementary currencies based in Brussels (Belgium), who gave his lecture titled “Economic Crisis and Regional Initiatives”. He started by summarising the contents of his book “The Future of Money” and addressed the current four challenges of “Aging wave“, “IT revolution“, “Climate change and destruction of biodiversity” and “monetary unstability.” He highlighted the importance to balance between the efficiency and resilience (diversity) in the ecosystem, applying this idea also to the monetary system, proving that the financial system is structurally unstable with the excessive number of crises which have taken place in the last few decades in the world.  He presented the case of WIRBank (the Switzerland) which works to balance small businesses (trades in WIR increase when the Swiss Franc economy stagnates and vice versa) and finished by comparing the patriarchal societies of competitive economy with the single currency with matrifocal socieities of cooperative economy with parallel currencies.

And finally, the new Catalan currency Euro-Cat was presented by Susana Martín Belmonte, author of the book “Nada está perdido(Nothing is lost)” and an Euro-cat promoter, and Fèlix Simon Paraiso, president of the Plataforma Vegueria Penedès and an Euro-cat promoter. Each business which enters the system will have a credit line and the balance increases and decreases as it sells and buys.  Individuals are also welcome to join the system and will change euro into Euro-cat to spend it at local businesses.  The fundamental difference between loans in euro and credit lines in Euro-cat is that the former ones need to be repaid in euro while the credit line can be settled by offering equivalent goods and/or services.  Although Euro-cat will work all over Catalonia, eight territorial networks will be set up to strengthen regional economic activities.  Founding members are accepted up to 04th May and then a work will be done to reach the consensus on the definition among these participants about different aspects before the official launching, plannedfor June.

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