by Prof. Dr. Wolfgang Berger, Diese E-Mail-Adresse ist vor Spambots geschützt! Zur Anzeige muss JavaScript eingeschaltet sein!, www.business-reframing.de, Germany

Whenever money is subject to interest, it multiplies exponentially: At an interest rate of 7%, €100,000 today will be €196,720 in 10 years’ time, €2,945,700 in 50 years’ time, and €86,771,630 in 100 years’ time. These €86,771,630 consist of €100,000 worth of work, €700,000 in interest and €85,971,6300 of compound interest.

Compound interest can only be generated because other people (who today take on a debt of €100,000) are paying for it. The exponential multiplication of money is only possible because of its mirror image – an exponential increase in indebtedness. For that reason all world religions, indeed all the world’s major civilisations, had originally outlawed interest.

Today, private individuals and businesses can barely continue to offer additional security for further credit. This is why we are seeing a dramatic increase in public debt and actual enslavement of the third world by its lenders and creditors. The interest based money we are used to is an instrument of power and does not serve humankind.

“Flowing money” – the money of the future – works differently: it is charged with a monthly tax of e.g. 0.5%. There are tried-and-tested techniques for the implementation of this approach. To avoid the payment of the time-dependent tax, the money needs to be spent or saved at zero interest. Under such conditions, money is no longer any more advantageous than other goods that depreciate over time. The new “flowing money” is thus no more than a means of exchange that no longer multiplies without the input of labour.

On average, about 40% of every price charged on world markets is due to calculated interest. “Flowing money” almost halves prices and doubles everyone’s purchasing power. Once this has happened, citizens and businesses become an engine of progress.

However, the greatest design fault of today’s destructive money is that it forces businesses into short-term decision making. The short-term orientation results from the “Net Present Value Method“, on which business strategy and investment decisions are based and from which the value of a business, known as “Shareholder Value“ is derived.

Net Present Value is calculated by means of discounting future payment streams. For example: €1,000,000 in 100 years corresponds to a present value of €12. Thus interest based money precludes investments that will only be lucrative in the long-term. Permanent damage such as the destruction of the environment and the suffering that will be endured by future generations are not included in today’s reckoning.

“Flowing money” neutralizes this interest rate effect, so that the net present values of measures that will only pay off in the long term become very high. This multiplies the volume of profitable sustainable investments. A multiplication of quality investment volumes will end unemployment, develop infrastructures, and create a heavenly high standard of living.

Throughout history, whenever a country introduced “flowing money”, it experienced an economic and cultural heyday, and its population enjoyed widespread prosperity – for example 8,000 years ago in Mesopotamia and 800 years ago in all of Central Europe. Today, a country with an able and well-educated population provides the best foundation for the introduction of flowing money system. The know-how and expertise to help a country to implement this is available. Its speedy success will bring about a domino effect. However, as with all momentous historical change, the pioneers will never lose their initial advantage.