German economist to deactivate the delayed-action bomb of debt securities
- how an international value added tax on Fiat-money may save the world's finance system.
PhD Dirk Solte works for the independent German think tank FAW/n in Ulm, recommended for its profound knowledge in international economy and ecology. The father of two daughters just finished an exceptional study titled "The world's finance system at its limits. Inside the holy gral of globalisation" (will soon be published in German only). He is heading the working group "Finance and taxes" within the Bundesverband für Wirtschaftsförderungund Außenwirtschaft in Germany and is promoting the initiative Global Marshall Plan (www.globalmarshallplan.org) He visited the team of www.whatiseconomy.com in Grossgmain on september 26th 2007 and gave us the following interview.
What Dirk Solte says:
The relevant players with their arbitrary access to the finance markets and their opportunities, to exclude others not only pay no taxes, but transfer real assets in their portfolio by an unregulated creation of fiat-money from nothing!
Citizens and middle classes finance all alone the system preconditions to provide wealth, affluence and social compensation.
Currently we see a fight of nations for taxable economic outputs. This will lead to a “brasilianisation” of the world
Only a sustainable taxation and finance system with e.g. transnational dues ontransactions of Security Settlement or a value added tax on fiat money can prevent “brasilianisation” or a complete breakdown.
Facts about the world's financial system: (by Dirk Solte, FAW/n Ulm)
World savings 2006: $ 3 trillion World debts new 2006: $ 20 trillion World governmental liabilities in 2005: $ 44 trillion USA: $ 21,26 trillion Europe Euro12 $ 8,72 trillion Germany $ 2,1 trillion
Forecast for 2020: (without reduction of governmental expenses)
World governmental debts $ 92,45 trillion USA $ 47,95 trillion Europe Euro12 $ 18,76 trillion Germany $ 4,60 trillion
Mission Statement
The creation from nothing, the creatio ex nihilo has always served as a model for economic activity. To achieve everything and to invest nothing seems to be the highest form of effectiveness. So what is economy then? That's a question neither economic sciences nor the public are posing. To discuss this question, I launched this website. You are invited to download research papers from contemporary economists here:
We are totally involved in economy and therefore can't even think anything happening beyond our aim to succeed.
During the time I've spend in advertising and within the Software Industry I faced most of the experiences which influence our view on economy. The joy to win, the tears of loss. The fear to fail, the power to succeed. There's an ongoing contradiction between ethics and economy. When I started to think about the advantages, free software offers us, I learned that Freeware in general is the first base of economy. The commons, public goods, private gifts - that's what we need to succeed and to create value.
The Global Freeware Index will be a contribution to switch from a negative controlling mentality in Global Economy to a promising Gift Economy. How that? The National Freeware Product (NFP), which is composed by 18 kinds of Freeware, shows us the hidden assets of economies. Activating these assets will lead not only developing countries to handle their economy in a spirit of affluence, reciprocity and fairness.
At the end of the day the image of the human as only driven by self-interest, the so called self-interest hypothesis, will be replaced by a gift economy offering place to all of us.
