Presentation of EkaBank
Surplus and credit
The ability to produce stable and maintain a surplus of goods essential for survival has allowed the population to engage in other activities.
The division of labour has favoured the specialization from which the general increase in production capacity and the ability to produce surplus for other goods.1
As long as the surpluses remain under the control of who produces them, the difference between the material conditions of human beings depends on their productive capacity and by the socialization of labour the difference tends to a minimum.
However, if the surpluses are subtracted from those who produce them, they focus in favour of a minority and the difference in material conditions among the population tends to the maximum.
To accumulate more wealth, the minority that controls the surplus tends to increase them.
The only way that the minority can take to increase the surplus in their favour is divert as much as possible with producers taking advantage of the productive work.
Until the use of accumulated surplus provides new surplus, the minority that holds them tends to increase production.
When, due to the increase in production capacity and surplus subtracted to those who produce, the quantity of goods produced exceeds the purchasing power of producers, a growing part of the accumulated surplus is no longer used in production, but given the majority no surplus to sustain consumption.
However, consuming more than it receives for his work, at some point the majority is unable to repay the loans so that they become uncollectible.2
Then, loads are interrupted, consumption is reduced and consequently the production and the new surplus, while the surplus previously accumulated and not used in the production are exchanged between them to form the so-called bubbles, with which it is obtained a apparent surplus and no real value.3
At some point, a majority of the population, despite having acquired the ability to produce enough to live and grow, no longer able to meet even their basic needs and is forced to intervene to redistribute wealth from those who have more to those who have less or nothing.
The spontaneous effect of the majority action is the tendency of the implosion of the minority that controls most of the wealth.
Who with more perceived this trend and tries to stop it by subtracting the other holders of surplus wealth for maximum concentration and maximum centralization but doing so at the end is increasingly isolated from almost the entire population.5
When the pressure of the vast majority causes the implosion of the minority, with the sudden failure of the legal, political, scientific, metaphysical, artistic, philosophical and moral forms (the ideological superstructure) that have allowed the subtraction of the surplus and the concentration of wealth, some fragments of these forms (elections, virtual money, technology and other) are projected on the minority eliminating forever their objective conditions of existence.
With the implosion of the minority and the elimination of its material conditions, the entire society reorganizes itself and manages the new surplus in the cooperation.
The transition process is not automatic but must be activated before it implodes the whole system: when the vast majority of us will have understood alone as things really are, there will be no need to trigger any change, but the majority will no longer exist (also due to war) and will be lived in vain.
The change must be primed before the implosion process becomes (hysteresis) irreversible. And the trigger can only be done using a different means some of the same system that you want to transform.
One such means is the credit, the lifeblood of the economy developed. With appropriate methods, you can bring finance and credit to the real economy, to those who produce and consume goods and services used to live free from want.
The trust loan without interest to the real economy is one of the means by which stops the current process. This frees up the production from one of its factors: the annuity.
Consider the current real situation. The banking system is technically insolvent because it has issued money without real value for a huge amount, and because the total losses from bad debts is vastly superior to its total assets.5
Central banks create money from nothing: some, like the Federal Reserve of the United States, use it by buying debt that can never be repaid, while others, such as the European Central Bank, lend to commercial banks in exchange for guarantees on securities debt of states and banks that can never be paid but only constantly renewed.
Commercial banks create money through loans: they loan money does not exist and deposit it in accounts of the beneficiaries. The money transfer has become like a bill with no end that the banking system as a whole will never pay.6
The states are in debt for amounts that can never be repaid and have future commitments (such as pensions) that will cannot fulfil towards their people.
Companies are indebted for unproductive investments (including construction) and many families are indebted to buy goods and services that are often unnecessary.
At the same time, she trained an enormous concentration of wealth real and apparent in favour of a small minority of the population and the impoverishment of the majority.
Are the effects of financialization according to official data, the productive capital is equal to four times the annual world production, while the speculative capital (pseudo-capital) equal to two and a half times the production capital. Paradoxical.
And while the financial speculation on raw materials, essential commodities (food, drugs, etc.) and derivatives most complicated, the real economy is in crisis and without credit.
Thus, states have insurmountable debts and commitments, the banks losses could not be filled, the companies (except for the handful of multinationals that control seventy percent of the world) are under utilized and often abandoned, many forces are working or unemployed underemployed, five out of seven people are poor and one in seven does not have enough food.
This while in the U.S. and other Western countries one percent of the population has almost ninety percent of economic resources.
The situation is unbearable, especially for the poorest people. Improve it using the same methods that caused it is impossible, it is pure illusion. It certainly does not serve proclamations and promises that can never be maintained.7
But we must not resign. Humanity does not deserve this state and has the ability to improve itself. We need realism. Not to be confused with conformism. We cannot meet our needs by continuing to ask what others want to keep to themselves.
For decades, people in the countries that have adopted industrial production have lived by exploiting the resources and work of the countries with less developed economies. And they lived with the hypocrisy of those urges, make alms and moralizing, but does everything to make more and more wealth.
It is a story with ancient origins. The democratic Athens was built on slavery. And so Rome. And the United States of America until 1865. Even today, tens of millions of people, including many children, are living in conditions of slavery. Even in so-called civilized countries.
This millenary injustice is the fundamental cause of the current crisis. Because «one people can not be free if it oppresses another people.» And since the banking system is no longer able to perform its function for the real economy, this must be replaced.
From this observation comes EkaBank, a universal credit system on the trust and without interest that allows to buy what they need to live without waste and produce work that is required within the limits of sustainability of nature.
EkaBank is an honest initiative and without tricks for honest people who want to live without cheating and without being deceived.
Who made available to EkaBank the initial assets (200 billion euros) is in absolute good faith and has no profit. He just wants to come out soon from the chaos.
The EkaBank system is simple: participants (users) can pay and receive interest-free loans in the currency of choice.
EkaBank functions as a single world bank. Do not need reserves because the loans are completely independent of the deposits. It needs no clearing house.8
To avoid any kind of pollution or abuse from the outside, EkaBank not have any relationship with the current banking system, either incoming or outgoing, and must not receive any physical money (coins and banknotes) or external electronic money.
EkaBank presupposes good faith and good sense of the human person, the idea that everyone can be aware of being part of a single whole in which all have an obligation to do what they can and everyone has a right to survive and develop.
With EkaBank we can have full employment and the satisfaction of basic needs of every human being through forms of solidarity (the partial or total remission of the debt) for those who cannot work and produce.
Who, being unable to work and having no credit, is unable to state the terms of repayment, cannot ask a loan but can be helped by those who find themselves in a position to do so. No one should be excluded from the opportunity to live in dignity.
EkaBank is therefore the means, which allow mankind to make a real transition from the effects of the past to the construction of a new future.
The EkaBank accounts are open on the payments system KyberPay in the currency preferred by individual users and denominated in grams of platinum, so that if inflation is not lost purchasing power of money available to the account.
From all accounts you can transfer money in any currency at the exchange rate of the previous day when the transaction is executed.
It is not possible that the system can stop or suspend for lack of liquidity (EkaBank has not and can not have debt) or for any other reason.
Since the use of EkaBank with KyberPay requires access to the Internet, who is unable to do so can be directly register and manage the account by another user.
EkaBank is certainly not the ideal solution and the final (best would be to replace the legal tender - that has not and does not represent any real value exists - with a global currency of work, entirely guaranteed by the actual value and with a maximum issue, to be allocated equally to all inhabitants of the planet, but that's another story) and yet is the most practical and effective in this historical moment and with the current mindset can be adopted.
Primary purpose of EkaBank is to finance ideas, projects, capacity and will to achieve them.
Only in this mode we can meet the needs of every human being and combine the forces of production, that means the socialization of labour have been a sufficient level of development, with the socialization of the means of production, to produce to meet needs and not for profit, in limits of sustainability of the biosphere.
EkaBank is the transient, insufficient but necessary tool to implement Dante's famous exhortation: «Consider your origin: you were not made to live like brutes but to follow virtue and knowledge.»
Who is interested in using EkaBank must register him as a user of www.ekabank.org.
To each EkaBank user is assigned an EkaBank account on KyberPay system.
With the EkaBank account you can exchange money (and collect pay) with other users.
To pay by EkaBank must know the account number of the recipient.
If the beneficiary is not a user EkaBank, you must invite him to register.
Each user EkaBank can get a loan on trust, without interest.
The loan application must give amount, purpose and terms of repayment.
The loan is credited to the account EkaBank of the applicant.
1 Many goods are no longer produced to satisfy vital needs but "induced" needs, a mechanism in which the producer of a good "creates" also "need" and therefore demand. It is the "consumerism". This served to capitalism to flourish, expanding the product range of consumer products, leveraging on fashion and on the psychology of imitation on one side and the "status symbol" on the other. This mechanism has also found growing in the financial products and has developed since the eighties of the twentieth century, U.S. (even if the idea came from London), with the boom in mortgage so-called "sub prime" granted to those who were not able to repay them.
2 This is what occurred in the United States since the eighties of the twentieth century. People were persuaded to mortgage their homes (of which perhaps already had finished paying the mortgage) in the belief (induced) that prices of "brick" would go up indefinitely, and even if the loan instalments were particularly severe compared to income of borrowers, it basically did not care, or to nationals (sure that the value of their property would continue to increase more and more) or to the banks which in turn have begun to issue bonds using the property as collateral for who were granted loans. This has created in a few years the rise of false wealth, not supported or created by the production but only by speculative finance (it was said "creative"), from which the housing bubble. In addition, it has been cleared by that time all that system of checks and balances in the financial sector that was created after the great crisis of 1929: the banks were able to start investing the capital of investors in highly risky speculative operations. Moreover, the introduction of so-called "Financial leverage", the "Exchange Trade Funds' (ETF) investing (and investing) of replicate real market indices, betting on both the growth of these indices is their decline (investment called" short "), and finally with the introduction of the notorious "derivative" financial instruments increasingly complex and abstruse. All this has led to the accumulation of wealth was increasingly released from production reality, and that the nominal capital assets was much higher than the real capital produced worldwide. Hence the crisis of Lehman Brothers, and to this day.
3 The only ones to profit from this drugged situation are those whom disinvest before the bubble bursts, however, it is precisely these divestments in the bubble to burst, triggering the mechanism of "panic selling" when everyone start selling furiously, the benchmark drops drastically, in an almost vertical, and the majority of savers find themselves in a bloodbath, suddenly finding himself on the threshold of poverty. The first speculative bubble in history occurred in Holland in 1600: people started to buy tulip bulbs (induced financial need), and the price of even one particular bulb came to exceed that of a house. The bubble grew and grew until, at the Amsterdam market, a big investor was no longer willing to pay so much money to buy the commodity. The bubble burst, panic selling began, and many found themselves destitute.
4 This is what is happening now with the political and financial elites.
5 The nominal value of financial mass, in part determined by the same institutions (like the Bank of International Settlements in Basel)) and in part fully submerged but deductible from the daily volume of international transactions) is equivalent to over three million billion dollars, more then fifty times the annual world GDP (represented for seventy percent by services) and even higher than the value of all the goods and natural resources of the planet.
6 Practically, apart the avalanche of rules made to make it more complicated and incomprehensible, the operation of the monetary system is extremely simple. The central bank controls the monetary base (notes and digital money) by buying and selling government securities (Federal Reserve, Bank of England, Bank of Japan, etc.) or loaning money to other banks under warranty (pledge) of collateral (bonds of the government or of the same banks) considered eligible (with at least a certain rating). In both cases, when the central bank buys securities or loans with guarantee of collateral, creates money from nothing and when it sells securities and collects the loan cancels it. But since the states are constantly increasing their debts, the sale of securities and collection of loans takes place at the same time new purchases and new loans. Thus, the monetary base is increasing. The other banks create money by granting loans and forming deposits simultaneously: when the bank makes a loan it charges the beneficiary and deposits the money created (with borrowing) to the credit of an account of a beneficiary to her. Money on deposit can be transferred from an account holder to another of the same or another bank. If the transfer is between account holders of the same bank account is debited and another account is credited for the same amount. The money remains on the same bank. For transfers from one bank to another, there is a daily clearing system with which you cover the balance debt-claims between the different banks using the reserve accounts of each bank at the central bank (for national adjustments) or at a clearing house (for international adjustments). The central bank (for national adjustments) and the clearing house (for international adjustments) may grant loans to any bank eligible securities under warranty (can also be the sale of mortgage). According to U.S. law, an assignment of mortgage does not exceed 140% of the balance of the debt secured by the mortgage. According to English law, there are no limits. From this the so-called re-hypothecation, with which a bank yields several times the same mortgage without limit. Basically, if desired, each bank is able to cover the balance of their debts to other banks using the same loans granted (which represent receivables for the bank granting it). The mechanism we jammed when loans become uncollectible.
7 As happens far too long from now.
8 The «Clearing house» is a centralized structure at the confluence of the contracts of sale for securities or derivatives (not covered in the regular stock market) and where it is ensured the proper execution of such contracts. With the clearing house is a greater standardization of contracts and it is guaranteed the solvency, as each contract is transferred to the compensation, and guarantee that interposes itself between buyer and seller. In this case intermediaries adhere to which investors are turning to the sale of the securities or derivatives, banks, brokers and the SIM. Each member is obligated to deposit with the clearing house a sum of money as security, called "haircut", to be credited in a special account at the same clearing house.