On the need for an independent monetary system in Novorossiya

2024 Author: Seth Attwood | [email protected]. Last modified: 2023-12-16 15:55

On November 5, at a regular meeting of the Kiev government, Arseniy Yatsenyuk announced that all budgetary funding for Novorossiya was being stopped. By this time, de facto, practically no budgetary revenues had been received in the newly formed republics since mid-summer, and this was the beginning of the so-called "pension tourism" - it was announced that "we will not abandon our own people, but pensions and benefits will be paid to the controlled Kiev government territories.

A little later, this opportunity was also closed for residents of Novorossiya. Through a ban on returning to a militia-controlled area.

And on November 17, Poroshenko signed a decree that actually introduced a socio-economic blockade of the regions of Donetsk and Luhansk regions.

Meanwhile, the largest enterprises in Donbass still pay taxes to the Ukrainian budget, and the degree of fulfillment of tax obligations to the treasury of Kiev, even from the territories of the DPR and LPR, averaged 80% in September.

The established tax authorities of the DPR collect taxes only from medium and small businesses, but this is 5-10% of the total turnover, and the largest enterprises, such as the factories of Rinat Akhmetov, which make up the lion's share of the DPR's turnover, for the Kiev government are still hens carrying gold eggs. That is why salaries are paid there, electricity and gas are supplied for production, and the export of finished products is also organized.

It turns out that the residents of Donbass themselves finance the anti-terrorist operation and the war on their territory.

The economic blockade by the Kiev authorities, the most difficult humanitarian situation, the death of militias, the problems of the formation of statehood, external influence and the struggle for power within the DPR and LPR - all this happening in Novorossiya echoes with pain in the hearts of millions of Russian people.

Plus, ruined cities, starving and homeless people. Everyone understands that it will be very difficult to restore the infrastructure after the war, and a prosperous, prosperous Donbass seems like a distant dream. However, it is within the power of each of us to bring this dream closer to reality. And the mechanism that will allow this to be done lies in the economic sphere - in a breakthrough decision to create Novorossia's own monetary system. After all, such a precedent has already been in our recent history, after the First World War.

During the Great Depression, in the 1930s post-war years, when hundreds of thousands of unemployed people in the United States stormed the White House, when kilometers-long queues lined up for stew, the first attempt was made to get rid of the enslaving interest stranglehold that is the basis of the modern monetary system. In 1932-1933, in the Austrian city of Wörgl, they issued their own money, which could not be saved and lent at interest. Money has become what it should be - a common commodity. This money had to work constantly. If a person had money left after a month, he either handed it over to the bank, or paid for the fact that it was withdrawn from the circulatory system of the economy. The bank had to invest these funds, but the depositor did not receive profit, except for the public good, which in Wörgl was added and added. Money was constantly in circulation, and everything was enough for everyone, people even began to pay taxes in advance, and their salaries were given ahead of schedule, because the employer had to pay for every extra hour of possession of money. And all this - not counting the full employment of the population, repair of roads, water pipes, a built pool and a ski jump. The forest surrounding the city was even tidied up.

The Swiss journalist Burde wrote: “I visited Wörgl in August 1933, exactly one year after the experiment began. Despite everything, we must admit that his success borders on a miracle. The streets, which were previously in a terrible state, can now be compared only with the Autobahns. The building of the City Council has been overhauled and is a beautiful mansion with blooming geraniums. On the new concrete bridge there is a commemorative plaque with a proud text: “Built with free money in 1933”. All working residents are staunch supporters of free money. Free money is accepted in all stores on a par with real money."

A similar experiment was also carried out in the Bavarian village of Schwanenkirchen, where they began to use their currency to revive a coal mine, which was systematically depreciating, and to maintain the solvency of cash, holders were required to pay a fee. Thus, the possibility of using this currency for savings was limited, and, thereby, an active exchange of goods was stimulated.

When more than 300 communities in Austria became interested in this model, the National Bank of Austria saw this as a threat to its monopoly and banned the printing of free local money, despite the fact that even across the ocean in the United States there was a massive movement for "free money". Which, however, was not given a go.

Nowadays, a similar experiment was carried out in one of the villages of Russia. Here is an amazing story about the Bashkir village of Shaimuratovo, in which they introduced their own "money" into circulation.

Of course, now, unlike the 30s, when experiments with free money were carried out, the system of bank slavery has become even more rigid, it presupposes the monopoly of the central and commercial banks. However, even in modern conditions, this problem can be solved.

Recently, there was information in the news that the DPR leadership was considering several options for its currency, and at that time there were three options: stay with the hryvnia, switch to rubles, and create your own currency. Since then, there have been practically no publications and speeches on this topic - it is obvious that even the discussion of this issue of paramount importance is nipped in the bud.

Novorossia should not enter the ruble zone, since the sanctions and speculations with the ruble that we see now in Russia will only intensify, and accusations against Russia of invading Ukraine will grow even more, which will lead to a new wave of anti-Russian hysteria around the world.

The link to the hryvnia zone is also impossible, since Novorossiya is excluded from the banking system of Ukraine, it cannot affect either the issue or the lending of the hryvnia.

Thus, it is in the direction of its own currency that serious work is being done. In October this year, a working group was created to implement its own financial system for Novorossiya.

This is an important strategic decision - a real historical opportunity to start changing the entire Russian world. The main feature of the new financial system will be the creation of banknotes backed by a real equivalent. The very principle of distribution of funds will be changed, parasitic elements will be deleted. This is our common cause, which concerns everyone, because if the new system works in Novorossiya, it will be the beginning of a smooth change in Russia itself.

After all, it is no secret to anyone that the Russian monetary system depends on a parasitic dollar system, in fact, the ruble as a currency is a derivative of the dollar. And only Novorossiya is that unique experimental platform from which a change in the global economic system will begin, replacing its parasitic essence with a healthy and prosperous basis.

Sergey Danilov

see also

Monetary system of Novorossiya. Issue 1

Monetary system of Novorossiya. Issue 2

Monetary system of Novorossiya. Issue 3

Monetary system of Novorossiya. Edition 4

Monetary system of Novorossiya. Edition 5

Monetary system of Novorossiya. Edition 6