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SCI LIBRARY




























Globalism:

World of Plenty, The Fiction Story

Michael Smith



[Made available with permission from the author. First published by GER, March, 1979. Revised March, 1980. The author can be contacted via email at: miekol@bigpond.com or miykal@hotmail.com]


Preface


There is something beyond our understanding and comprehension that pervades our world. It has been given different labels and many faiths have been created around it, but whatever we believe it to be, providing we care about one another, we can cause a Peace on Earth, and bring about an end to Poverty and War.

Contents


1. For the love of mankind.
2. You arrive in the future.
3. The basis of globalism.
4. The development of Globalism.
5. How Globalism was implemented.
6. The GER Prospectus.
7. The Global Exchange Reserve Company.
8. Money.
9. Site Rate and Rent Revenue and Natural Resources Revenue.
10. Natural Income.


1


For the Love of Mankind


We are living in the most exciting time in mankind's history. We have the power to either destroy our world or turn it into a paradise. The wealth, the technology, and creativity required to transform our world into a paradise, already exists, it simply has to be organised and managed in a better manner. This small book is a plan of how we can achieve a paradise on Earth.

The theme throughout the book is based on an idea that can be realised in your mind and is expressed by the tenet:

'Let mankind share equally and fairly the Earth's natural wealth and let everyone benefit exclusively from their own labour'


However if you believe as I do, in a maker, the tenet can be expressed as:

'Let mankind share equally and fairly God's bounty and let everyone benefit exclusively from their own labour'


This simply means that anything you produce, or if you simply provide your labour for the production of a good or service, you are entitled to keep all the income you receive, and no government is entitled to take from you any part of your income in the form of direct or indirect taxation. The finance to provide for government and community services and facilities, will come from all that nature provides, or in other words, everything that is not man made.

Basically our world is divided economically, politically and socially, into two systems, Capitalism and Communism. Both systems have good and bad points. The purpose of this book is not to examine either Capitalism or Communism but to describe an alternative system called Globalism. Globalism brings together and improves on the good of Capitalism and Communism. Globalism will ultimately unite the world economically, and is an alternative ideology to Capitalism and Communism for the economic management of mankind's society.

'Globalism is a system that caters for all human emotional development and does not restrict individual freedom, where that freedom does not interfere with the freedom of others'


The motif of Communism is 'From each according to his ability, to each according to his need,' which is an ideal that is totally impracticable because the quality for its practical application does not exist naturally and inseparably in human nature, and to impose the ideology of Communism on people by way of fear is wrong. In fact the closest we have come to the ideology of Communism is within the Capitalist society in monasteries and convents. When we refer to Communist countries we are really referring to Socialism which is only a step towards Communism. The motif of Socialism is 'From each according to his ability, to each according to his work.' This is also a motif that suits Capitalism with a slight modification. The Capitalist ideal motif might be, 'From each according to ones ability, to each according to ones work and ones investments.' Socialism and Capitalism part company at the point where wealth is accumulated. The Socialists maintain all wealth belongs to the community, and the Capitalists maintain that it is the right of the individual to accumulate wealth. They are in fact both right, since:

'Any wealth generated by the community should be collected by the community, and any wealth generated by an individual should be that individuals to keep, exclusive of any taxes or other claims on that income.'


The concept of Capitalism is private ownership, of the means of production, distribution and exchange, including the private ownership of all the Earth's natural resources. This tends to foster the greedy and selfish side of our nature causing the weak, the defenseless and the meek to suffer. While on the other hand the concept of Socialism is state ownership of the means of production, distribution and exchange, and ownership of all natural resources. This tends to inhibit the full potential of our humanness and deprives one of the motivation to achieve financial success.

The two basic systems we call Communism and Capitalism, are the attempts we have made, in an effort to manage, in a fair and just manner our World community. While the practical application of these two systems have fallen short of our expectations they are nevertheless a credit to our constant and restless struggle to find a better way. The alternative, Globalism, is a better way.

'Globalism is a system that caters for both the needs of the individual and the needs of the community.'

'Globalism is the public ownership of all the Earth's natural resources and community monopolies and the private ownership of the means of production, distribution and exchange'


In the over-populated poor countries of the world there is far more labour available than can be mobilised by the present Capitalist and Communist economic systems. Even in the rich countries there is unemployment and due to the high cost of labour, business enterprise is slowly replacing the need for labour, by embracing automation and computerisation. So both the poor and the rich countries are facing the same problem. That problem is not unemployment but non-employment.

Within the framework of the present economic systems there is no solution to the problems that face us. The solution to most of the economic ills of both Communist and Capitalist societies lies in (1) replacing taxation with Site Rent Revenue and Natural Resources Revenue, (2) changing the base of the monetary system and (3) adopting a 100% reserve ratio for the banking system.

Globalism's new monetary system will cause the stupendous potential of human enterprise and labour to be released. It is the solution to the present international and national money crisis. The new monetary system when implemented, will provide the world with stable value money.

Hopefully after reading this book you will understand the significance of Site Value as a base for a new monetary system and for a new world political economic order. If this book achieves nothing else other than to communicate this one idea, it will have served its purpose, because by implementing this one idea alone, the real and genuine value of money can be caused to remain stable and bring an end to inflation.

2


You Arrive in the Future


This book is about a society that could and hopefully will be established on Earth, and the best way for you to understand and feel what it would be like, is for you to visit it. This is not as impossible as you may think. You can visit it with your imagination. It is a world that is somewhere in the future. A world where people believe that mankind should share equally and fairly all the Earth's natural resources and everyone should benefit exclusively from their own labour, without having to pay taxes of any kind.

When you arrive in the future you will not be very much older than you are now because at a point in time you fall into a coma as the result of an illness, and medical science cannot cure you, but your doctors are able to slow down your body functions so that your rate of ageing is reduced to almost a standstill. As the years pass you by, you seem to grow slightly younger. This is due to the fact that because you are unconscious, you experience absolutely no tension, anxiety nor worry to age you.

With the advances of medical science a procedure to revive you is discovered. Realising what a traumatic experience it will be for you waking up many years in the future, arrangements have been made for you to be helped to readjust by someone who will understand your needs and feelings.

You have a private room in a hospital on the 4th floor overlooking a large park. You are lying in bed and there is nothing noticeable about you to indicate that you have undergone a minor operation to revive you.

Although it is a bright and early spring morning, only a little amount of light has been let into the room so that when you awake from the effects of the general anesthetic, the sudden bright light will not disturb you.

You start to gain consciousness. The operation has been a success. Your eyes are closed, and the first sensation that registers on your newly awakened mind is the feeling of the warm bed about you. As you stretch your limbs, you become aware of soft music. You open your eyes and stare at the ceiling. You are waking up after being asleep for many years, but you are completely unaware of this fact. You lie there staring at the ceiling, and listening to the music for several minutes. As your mind starts to unlock and awareness comes flooding in, you try to sit up, but fall back onto the pillow. Your heart is pounding fast. You start to wonder where on Earth you are, and its then you realise you are not alone in the room. To your right you can see out of the corner of your eye a man sitting quietly by your bedside, you turn your head towards him. He touches your hand gently and reassuringly, and says quite simply, "Hi, how are you feeling?"

Questions start to flood your mind and you become confused. You don't reply.

"I'm Michael," he says, and after a momentary pause continues, "You've been asleep for a long time.'

You wonder about the meaning of his words. "How long?" you ask.

He does not answer, instead he asks, "Do you remember being ill?"

You think for a moment and reply, "No, where am I?"

"You are in hospital, and you have been here for a very long time." He is preparing you for the shock you will feel when he tells you just how long it has been.

"How long is, a very long time?" you persist.

He tells you, and you become confused and your mind spins. You think it cannot be true. Michael continues to quietly and gently explain what happened to you. He goes on to explain that he will be helping you to understand the society that you will now be living in, and will be helping you to adjust to your new life.

He tells you the first thing for you to do is to regain your strength, for although you were given daily physiotherapy treatment during your coma, you are still very weak. Michael explains that during the next few days as you regain your strength you are going to learn about a totally new society, and that the changes he will be making you aware of, are not so much technological changes but will be about changes to the very structure of mankind's society.

"I have to leave now," says Michael, "But I will be back again tomorrow and in the meanwhile I want you to view these video discs, they will give you some idea about our new society."

Michael shows you how to operate the video disc equipment and then leaves.

For the rest of the day, you are glued to the video screen. You find it difficult to understand and comprehend the changes that have occurred.

The most significant thing that has been achieved is that poverty has been eradicated, world wide, and everyone now has the right to receive an income called Natural Income. It is going to take you some time to grasp the full significance of Natural Income and its implications on society.

It becomes very clear to you that the key to the near perfect society you find yourself confronted with, is the method in which wealth is produced and distributed. Because everyone acknowledges and accepts the idea of natural wealth that is caused by the existence of natural resources, the disabled and handicapped have the right to receive a Natural Income and do not have to depend entirely on charity or social welfare for their existence; mothers and housewives receive a Natural Income; criminals are not kept in penal institutions at the expense of the state, their Natural Income is used to pay for their keep. Workers do not have to work under undesirable conditions; employers are not forced to pay rates of wages beyond the worth of the job to the enterprise.

In so many situations where machines had replaced humans, the process has been reversed, because society has realised that people need people contact. The original introduction of computerised automation in many areas had tended to dehumanise the human race, in the name of improved efficiency and productivity.

The few technological changes you notice are impressive. It has finally been realised that electricity is the by far the best distribution medium of energy, and the supply of electricity is unlimited. Electricity is provided by the power released by nuclear fusion reactors, that are absolutely safe and clean. The fuel, deuterium and tritium, for the reactors being harvested from the oceans.

Many deserts have been reclaimed and are used to grow a variety of grains using the centre pivot irrigation system. The whole Earth has become a beautiful garden and food is grown in abundance.

After viewing the video tapes all afternoon and evening, you finally fall asleep, mentally exhausted.

3


The Basis of Globalism


The next morning Michael arrives bright and early.

"Hi, how are you feeling?" he asks.

"Great." you reply.

Michael smiles and says, "I think you are going to fit into our society really well. I'm sure you have many questions."

"That," you exclaim, "is a big understatement."

Michael laughs, "Well," he says, "What's your first question?"

"The first and most obvious question is, where does all the money come from to do all the things you have done and are doing?"

"Rather than answer that question directly, let me briefly explain the structure of our economy, or in other words how we produce and distribute wealth. Once you understand that, you will find it will answer many of your other questions. Our society is based on the philosophy of Globalism. The very name of our ideology explains itself, Globalism is a system for the management of society on a Global basis. Globalism evolved by combining the good and practical ideas from the system of Capitalism and ideology of Communism. We believe that the foundation of a good and just society is one that is organised on the assumption that anything not made by mankind should be shared equally and fairly by everyone, and anything produced by mankind, then the producer has the right to keep all the income gained, and the community has no claim on any part of that income. The very essence of Globalism is expressed by our tenet:

'Let mankind share equally and fairly, the Earth's natural wealth, and let everyone benefit exclusively from their own labour.'


This tenet realised the good ideas of both Capitalism and Communism, and discarded the bad. It was also the catalyst for the inevitable and peaceful economic union of Capitalism and Communism.

The system of Capitalism causes the development of the selfish side of human nature to be encouraged, while on the other hand the intention of Communism is to encourage the development of the unselfish side of human nature. But human nature being what it is makes the Capitalist system undesirable and the Communist ideology an impossible goal. To force or persuade the majority of people by way of fear to adopt either of these systems is totally unrealistic, because of the very fact we are individual human beings, each and everyone is a unique creation of mind and body. We are not the masses.

'We each have a need and a right to satisfy our individual desires through freedom of thought and action providing it does not interfere with the freedom of others nor deprive others of their fair and equal share of Earth's natural wealth.'


So in harmony with our tenet everyone receives what we call a Natural Income and no one pays income tax."

"If no one pays income tax how are you able to pay everyone a Natural Income and provide community services and facilities?"

"Please don't rush me. It's important you learn about our philosophy first. The idea, that what is provided by nature should be shared equally and fairly by the community, is not new, and this fact is by far the most important key to our Globalist philosophy.

The reason Globalism is so successful is that it uses the intangible value of land or more precisely sites, as the criterion for the value of money and for regulating the money supply, and so I want you to clearly understand the difference between the meaning of land and site.

There are many things on Earth that no-one can take credit for. They are, the land, the oceans and seas, the rain, the sunshine, rivers, meadows and mountains. All of these things man did not, does not, and cannot make and are called land in economists terms. Whereas a site is an area of the Earth's surface at a fixed location with a clearly defined boundary.

We believe since no man made the land nor any other natural resource, no man has the right to own exclusively any part of the land or other natural resource, but he can occupy a site. The land and all other natural resources belong to everyone on Earth. Certainly everyone has the right to the exclusive use of land and resources providing the user compensates the community for that exclusive use, but no individual, nor group or nation, has the right to exclusive ownership of any of the Earth's land or other natural resource."

"That's all very well, but without taxes where does the income come from to provide all the community services and facilities, like roads, water, power, drainage, schools, hospitals, security forces, government and law enforcement?"

"I have already said, anyone requiring exclusive use of land or other natural resource, compensates the community for the use of these resources. In economists terms, this compensation is called the economic rent.

For the exclusive use of a block of land or more precisely a site, the rent is paid to the representatives of the community, that is, to the government. In the case of the use of a mineral resource the mineral is extracted by private enterprise, but under community control, and sold to the highest bidder, and the profits from the sale go to the community."

"You mean to say all forms of government revenue like income tax and all other taxes, have been abolished and replaced with a rent on land, and revenue from the sale of minerals and fossil deposits?"

"Yes, in fact all government revenue comes from what we call Site Rent Revenue, and Natural Resources Revenue, and is of such a magnitude we are able to provide everyone with the opportunity to receive a small income we call Natural Income should they need it."

"Let me get this straight, you are telling me that everyone, man woman and child has the opportunity to receive an income without working?"

"Yes that's right."

"But surely if everyone receives a Natural Income, no-one need work, and if no-one works no wealth can be generated by the community to provide everyone with a Natural Income?"

"In theory that would be right, but the income is not large and you are forgetting one very important thing."

"What's that?"

"Human nature, it was this that caused both the Communist and Capitalist societies to ultimately fail as independent systems. Generally we accept the term human nature to describe the natural side of a human being including the negative emotions of envy, jealousy, anger, and greed, and reserve the term inhuman to describe the animal qualities displayed by some human beings. It is this wonderful quality we call human nature, that causes Globalism to work, since there are always people who aim at, and enjoy achieving some of the better things in life that can only be had by earning a bigger income.

Socialism forcibly suppressed these human qualities in its effort to achieve the Communist ideology and Capitalism exploited these qualities to the detriment of the meek. but Globalism harnesses these human qualities for the betterment of mankind."

"I think I understand. Glabolism is like the practise and discipline of the martial arts. The principle being to use your opponents effort to your advantage."

"That's right, except the example you have used, only explains how, Globalism accommodates the undesirable human quality of greed to benefit the community. There are many desirable qualities in human nature that causes community wealth to be produced as a by-product of an individuals pursuit of personal wealth. There is nothing wrong in accumulating great wealth and in fact we encourage it because as the rich get richer Natural Income increases, so we all benefit. It's very true that having lots of money will not necessarily make you happy, but its nice to be able to afford the things in life you think you want.

When Globalism was first proclaimed many wealthy people did not understand it and feared that if the community accepted it as society's economic system, their wealth would be eroded. But their fears were quickly dispelled, for when they understood the philosophy of Globalism they realised not only would they retain their wealth, they would have the opportunity to achieve super-wealth since there would be no income tax nor any other restriction to prevent them from accumulating immense wealth. Once Globalism gained the support of the rich, it was not long before a world peace was achieved and poverty eradicated. This was only the start, for since that time undreamed of wealth for the whole world has been produced."

"What you have described so far sounds as though you have created a Utopia."

"Not quite. Utopia is an imaginary place of perfect moral and social conditions. With our human qualities and emotions Utopia will remain a visionary plan for a perfect system of living, Globalism is a practical plan."

4


The development of Globalism


"You've explained what the basic philosophy of Globalism is, and I think your tenet embraces the essence of it but what caused its development?"

"There were many factors. The world as you are aware, was a divided world. On the one hand there was the Capitalist system and on the other the Communist ideology. Both were reaching a point of self-destruction. The capitalists' money system was crumbling, and the Socialists' totalitarian governments in their desperate pursuit of the Communist ideology, had restricted individual freedom to the extent that the better qualities in human nature was being cruelly suppressed.

The end for the Capitalist system came when the International Monetary Fund sold its gold in its attempt to sever gold as a formal base for international currency reserves. What everyone failed to realise at the time was that without a fundamental base for the concept of money, the structure of the free world economy would collapse. In removing gold as a base, a weak base admittedly, but a base nonetheless, they set into motion the mechanism for the total collapse of the free world's economic structure.

Governments of nations throughout the world failed to contain inflation and as confidence in the stability of money failed, the money system moved from crisis to crisis. Economists realised what was needed was a new and absolutely sound fundamental base for the concept of money. They had created an international credit system called Special Drawing Rights and originally agreed that it be linked with gold, but later the International Monetary Fund sold all its gold, and without a base, money is meaningless. You see, the value of money only has meaning in relation to something else.

We all have different concepts of the value of money. A labourer might place value on money in terms of his hours of physical effort to earn money. On the other hand an entrepreneur with large capital assets values money as a tool to be used to gain more money, and we all have different ideas of the purchasing value of money depending on how much we have and on our tastes and desires. There are as many values of money as there are people on the Earth and the actual value of money is the average of everyone's idea of the value of money, when compared with something else, that we all understand, for example gold."

"But you said the International Monetary Fund discontinued using gold."

"That's right, and in failing to replace gold with some other standard commodity they caused the management of money to become totally uncontrollable. To control anything you must be able to measure it, and to measure anything you must have a practical standard of measurement. Gold was an official standard of measurement for the value of money until the International Monetary Fund sold its gold."

"But surely in selling its gold in an effort to sever gold as an official base for international transactions, the International Monetary Fund caused gold to become an unofficial money in its own right."

"You are quite right. In fact gold steadily increased in value. As people came to realise how unstable their own national currency was, due to government medaling, they turned to gold and naturally as the demand for gold increased so did its price. The oil producers were some of the first to realise what was happening. Their income from their crude oil sales was so huge they found it increasingly difficult to invest their surplus wealth and realising all national currencies were diseased with inflation they used their enormous surplus wealth to buy gold and land.

Globalists realised that by default gold would once again become the basic medium for the exchange of wealth, and as such is undesirable, because it can be manipulated in terms of supply and demand, causing its value to fluctuate. We knew the answer was to get rid of gold as a money base and to divorce the money system from the control of governments. To do this needed a new standard to measure the value of money and control its supply and one that everyone could understand. The standard was provided through the practical application of the Globalist tenet, namely the value of sites.

All activities that a community engages in whether it is industry, retailing, wholesaling, farming, transport, entertainment, sport or whatever, increases community wealth and is directly reflected by the increased value of land, that is sites. By using the value of sites as a base for both, the standard of value of money and its supply, it provides the community with an indestructible base. Its a base that cannot be hidden nor moved. It cannot be increased in quantity, and yet its quality can be improved in terms of value, and it can also be used for other purposes, but still remains a money base.

Bullion gold on the other hand could not be used for other purposes, and was hidden at great expense to the community in vaults after being dug out of the ground at great expense and refined. Our Globalist community proudly displays its wealth by developing city, urban, and rural sites, and in doing so it increases the value of sites, which in turn constantly supplies more money, increasing the total volume of money.

If you consider the whole Earth's surface both land and sea as being one large site, but divided up into many smaller sites then it can be considered finite. This is the main advantage over gold, since it can be neither increased in quantity nor decreased. Whereas the volume of refined gold is constantly being increased due to mining activities. Also the quality of a site is readily discernable by anyone, but only specialists can determine the quality of refined gold.

You will find as you start to understand how we are able to use the value of sites for the base of our money system you will appreciate all its advantages."

"I already appreciate that its prime advantage over gold is it is a fixed quantity, since the sum of all sites must equal the total surface of the Earth, both land and sea, at all times. How wonderfully simple."

"Its simplicity is the key reason why our Globalist system of site value was so quickly adopted to replace the defunct gold exchange standard as a base for money. By simply keeping a register of the site value, of all the world's sites we are able to maintain an indestructible foundation for our money system and it provides us with a stable measure to control the value of money and its supply.

During the introduction of site value as a base to money, a spin off was that it encouraged everyone to work towards peace because in times of war sites and real estate cannot be moved. So it is to everyone's advantage to protect their vested interest by avoiding armed conflict."

5


How Globalism was Implemented


"Its strange, but what we seem to keep talking about is money. Surely money is not the key to peace?"

"No its not. The key to peace is to find a better and fairer way of producing and distributing wealth."

"I think I understand. What you mean is that the structure of your Globalist society is not political nor religious, but is economic and moral."

"That's right."

"How did Globalism evolve from the world of Communism and Capitalism?"

"One of our catch phases is, 'Globalism is peaceful evolution, not bloody revolution.'

We believe that the greatest human achievements of mankind are those gained by non-initiation of violence or aggression. There has been no time in recorded history where societies established by aggression or suppression has sustained the test of time. Only truths authenticated by science and beliefs based on caring for our fellow man, have sustained the test of time.

Globalism was superimposed on the existing societies of Capitalism and Communism. There was a fade out of Capitalism and Communism and a fade in of Globalism over a one hundred year period."

"One hundred years! That's along time."

"Yes it is, but it was very necessary. The idea of having the introduction of Globalism extend over a period of one hundred years was three fold. Firstly it gave the society, time to change gradually. Secondly it gave all the existing commitments of Communism and Capitalism time to phase out, and for site values to change slowly so as not to disrupt the new money system based on site values. And thirdly but probably the most important it provided everyone, the whole world over, with a clear and positive long term goal. For the Communists the Globalist plan for world peace replaced their goal of world domination, and for the Capitalists the Globalist plan provided them with a common purpose that had been absent in their society with the decline of religious influence. Neither the Capitalist nor the Communist systems could provide a plan of such depth and magnitude nor equal its promises. The Globalist plan filled an emptiness in the lives of many people and gave them a magnificent and common purpose."

"It all seems much too simple."

"But that's the whole point, Globalist philosophy is that living should be kept uncomplicated so that everyone can enjoy it, and live peacefully."

"Where did the new money system fit in?"

"The change to the new money system based on site values happened very quickly because it is an independent facet of the Globalist philosophy. A company was formed called "GER."

"GER?"

"Global Exchange Reserve. GER united the efforts of all people who were striving for world peace. Before GER, the course of the world's history had been changed through religious beliefs, and at other times through the political ambitions of people using armed force to achieve their objectives. With the establishment of GER it was the business communities turn to change the course of history.

Global Exchange Reserve is a non profit making business and provides the world with a stable account currency monetary system. GER currency exists in bank account form only and its value, supply and volume is directly proportional to the aggregate of site values. Its unit value is a GER dollar. There is no GER currency in cash form. Each country issues cash in its own currency, and its currency is in competition with GER currency. Citizens and businesses have the choice of which currency they want to use to settle a transaction for the supply of a good or service. Both are legal tender, however if there is a dispute about the currency to be used to complete a transaction, then its the sellers right to nominate the currency to be used. By both GER currency and domestic currency being legal tender keeps national governments honest regarding the value of their currency. It's not in their interest to allow their currency to inflate or deflate against the GER dollar. All governments maintain their own currency at par value with GER account currency."

"When GER was first formed didn't the Capitalists oppose its efforts to establish a global currency?"

"On the contrary, the Capitalists were quick to recognise the advantages of a monetary system based on site values, and it took a lot of effort on the part of GER to maintain the integrity of GER currency, because naturally each government wanted its own site money system. But this was the very reason GER was formed, to persuade governments not to meddle with the value of money. With the establishment of Global Exchange Reserve it meant that everyone that invested in GER had a direct influence as a shareholder on the stability and value of their own money.

The Communist countries had to fall in line with the new money system, since their system of society could not accommodate site values, although they were in a far better position than the Capitalists to implement Site Rent Revenue because the state already owned all sites, and could easily and quickly switch to the Globalist economic system.

To trade with the Capitalist countries the Communists had to either build up a reserve of GER dollars by selling products to the Capitalist countries, or enter into bilateral trade agreements using GER dollars as a unit of account."

"So the site money system was introduced independent of the hundred year plan?"

"That's right. The value of GER currency and its volume is directly proportional to the aggregate value of sites. The idea of the hundred year plan was purely to maintain the integrity of GER currency. Once the government of a country, on behalf of the people, adopted the plan, it introduced a land value tax called a 'site rate' and increased the percentage of the rate of revenue of the site value progressively at the rate of one percent per year and at the same time slowly reduced all other forms of taxation, until all community revenue came from collecting the economic rent of land and resources."

"But I understood you to say earlier that all revenue was from site rents not site rates?"

"Site Rent Revenue is synonymous with Site Rate Revenue since at the conclusion of the hundred year plan, both Site Rent value and Site Rate value was equal to one hundred percent of Site Valuation, throughout the world."

"How did the change to revenue from resources occur?"

"At the time the hundred year plan was adopted by a government all existing contracts were allowed to be fulfilled, after which time, the community aquired ownership of the resource. We call it Globalising. National Globalist governments remained autonomous and still do, but are all committed to the Globalist ideology of a united and peaceful world based on the Globalist tenet. The integration of Globalist countries is based on freedom of movement of people and money, and free trade. Once people, no matter where they are born, are given equal freedom and equal opportunity, they are reluctant to move from their place of birth. However they do like to travel and experience the culture of other countries.

Since Globalism is a middle of the road ideology it was only a matter of time before all nations adopted the hundred year plan. It provided both the Communists and Capitalists with a compromise. While neither could accept each others system of society they both found Globalism an attractive and reasonable alternative for the management of mankind's economic affairs.

The conclusion of the plan saw all the people of the world living in harmony with each other and the fulfillment of everyone's desire of a peace on Earth and an end to poverty and war."

6


The GER Prospectus


I've got a few things to attend to so you can read it while I'm away."

Michael hands you the prospectus and points out its an original, and asks you to take care of it. You notice the printing is faded and the pages have yellowed with age, but the title is still bold.


Global Exchange Reserve


Prospectus

Michael leaves the room and you settle down to read the prospectus. You begin reading.

Global Exchange Reserve (GER) is a unique concept for the supply of money, the control of its volume, and for keeping its value stable.

GER's main objective is to provide the world with a stable value currency by using in place of the defunct gold exchange standard, the value of land as a currency base. GER is the beginning of the realisation of a dream that many people have of a peace on Earth and an end to poverty and war.

One of the major problems facing all nations of the world is inflation. To understand the root cause of inflation we have to understand what money really is. Money fulfils three main functions in our daily lives. It provides us with a medium of exchange a store of wealth and a unit of account. For the majority of people money means cash, both coins and notes. But this is only one form of money. In its broadest sense the meaning of the word money is anything we are willing to accept as payment in exchange for goods and services.

Money can be divided into three main types.

1. Commodity Money

2. Token Money

3. Account Money

Commodity money is money that has a utility value or in other words the money itself is useful for other purposes such as money made from precious metals like silver and gold. Token money, the coins and notes we use every day, has little or no other use, because the material it is made of has no great value of itself. Account money is a very abstract form of money since it is simply a number in a bank account stating a quantity of things called dollars and cents etc.

What are dollars and cents? They are certainly not the coins and notes we use every day, because as shown above, these only represent dollars and cents. Dollars and cents are in fact an intangible concept of mans' mind to help us bring about some order in our daily lives. Many countries have different names for this concept, for example in the US its dollar; in Japan its Yen; in Germany its Mark; in France its Franc; in England its Pound, in Italy its Lire; in Sweden its Kroner, and so on, but its all the same thing.

So how can we cause this thing called Dollar, Yen, Mark etc., to have a stable value? In the past, attempts have been made to arbitrarily give it a set value. One of the most successful was when it was given a value in terms of gold and we call this period the full gold standard. For nearly a whole century from 1816 to 1914, anyone in England could present a bank note at the Bank of England and demand gold sovereigns or half sovereigns in exchange. Gold coins, sovereigns and half sovereigns, were standard money and in everyday circulation. Gold bullion could be freely bought and sold, and imported and exported. Persons taking gold bullion to the Bank of England could have it coined free, and the Bank of England was required to buy any gold offered it at the price of three pound seventeen shillings nine pence stirling per troy ounce, ie. gold eleven twelths or 22 carat fine, and sell it at three pound seventeen shillings and ten pence halfpenny. At this price the 123.27447 grains of standard gold in a sovereign were worth exactly one pound.

The full gold standard was discontinued in 1914 at the start of the First World War and since that time we have moved progressively into managed economies and deeper and deeper into inflation. So what has gone wrong? If you listen to economists you will realise there seems to be no end to the reasons why we have incessant inflation. The answer is simply the existing economic systems do not and cannot work.

Economics is the study of the production and distribution of wealth of which the dollar, yen, mark, pound, franc, etc are the units for measuring wealth. Within the existing economic systems these units are being manipulated by government economists . They are on the whole doing the best they can with the tools they have, but there is a better way.

The better way is a very simple idea but it can be difficult to understand. The idea is that we let all the people of the world, presently about six billion, control the unit value of money. This is not as impossible, as it may seem. To do it we must compare the unit value of money with a resource that everyone uses and is therefore familiar with, and it must be a resource that cannot be manipulated. There is only one practical resource that suits our need, and that's land. Everyone, even a child, knows what land is. We eat, sleep, work, travel and play on land. It is a resource that is a constant and known quantity.

The Global Exchange Reserve company utilises land and property values to supply a stable value currency. GER purchases land and property using domestic currency, then issues its own currency, i.e. Global Exchange Reserve dollars. Each GER dollar is like a mini title to a portion of the value of all GER real estate and retains a stable value.

The advantage of holding GER currency in place of domestic currency is that your GER dollars remain at a stable value and do not lose value like domestic currency.

All GER currency is kept in account form, and is moved from account to account via cheques or electronic funds transfer.

Summarising, by using Global Exchange Reserve dollars you will:

1. Protect the value of your most liquid asset, namely money.

2. Help the world obtain a truly international currency free of national interests.

3. Actively support a world wide movement for world peace.

7


The Global Exchange Reserve Company


The whole concept of Global Exchange Reserve was born out of a belief that for the first time in the history of mankind a world peace is within our grasp.

After reading the prospectus several times you impatiently await Michael's return.

Michael knocks and enters your room. "Hi, have you read the prospectus?"

"Yes, several times. I imagine at the time it was published most people had difficulty understanding it."

"Yes you are so right." Michael replies as he settles himself down in the chair next to your bed.

"Initially the growth of Global Exchange Reserve was slow, but once the idea was understood by a few it gained momentum very quickly, and when critical mass was reached in terms of the acceptance of the GER currency, it grew exponentially.

In the beginning it was realised that it was going to need more than a prospectus to explain the concept of GER and the full implications of Globalism, so a fiction book was written set in the future explaining the basic ideology of Globalism and how GER was to be the instrument for the implementation of Globalism. The book caught the imagination of many people from all walks of life. Here was an idea that promised a realistic and a desirable alternative to the Capitalist system and the ideology of Communism. It was an alternative, that would not only provide the world with a stable currency but also the means to achieving a world peace. The idea is so simple and yet the understanding of it is so difficult for most people."

"I can understand their difficulty, but the way you've explained it, it seems logical that everyone should share the benefits and wealth of all the land and natural resources of Earth."

"This is because you have an insight to the total picture of Globalist ideology. Don't forget, the prospectus , which is entirely orientated towards the business aspect of a stable currency, was presented to a general public that had no understanding of Globalism. There were a few people who understood what GER was trying to achieve, and they were the first to invest in the Global Exchange Reserve company. The first GER accounts were opened by these few people more as a gesture of goodwill rather than for serious business activity because they realised, that not until great numbers of people understood and supported the goal of Globalism would GER dollars be accepted by everyone.

It was only by opening many GER accounts by people who believed in Globalism that others were going to be convinced that GER was the right direction for the solution of the world's monetary crisis. Anyway they had nothing to lose by purchasing GER dollars because every GER dollar was guaranteed its worth in real estate owned by the Global Exchange Reserve company. Real estate is the collateral for every GER dollar issued by GER."

"If I buy a GER dollar, exactly what is it I am buying?"

"As it says in the prospectus, you would be buying a mini title to a portion of the value of all the real estate owned by Global Exchange Reserve."

"What happens in the case where the value of a property falls?"

"This of course is possible, but the majority of properties increase in value and more than compensate for those that fall in value. Also the buying policy of GER insures that only real estate that will increase in value is purchased."

"How can GER guarantee that?"

"Simply by only buying real estate where population is sure to increase. Since its a simple fact of any market that if you increase the demand you increase the price providing the supply is not increased."

"But while deserts exist the supply of land is unlimited, so how does its price increase?"

"The amount of land in city centres cannot be increased, and the bigger the population of a city the higher the value the land in the center becomes, and likewise the land surrounding it. As the land in the centre becomes the object of greater and greater demand so its value increases, and in turn it sends ripples of increasing values right out to the land on the edge of urban settlement. This is why sites left vacant in the centre of a city should be looked upon as an act of gross human negligence. By withholding land from use in the center of a city and in the suburbs it forces the price of land up and also causes people to go further out in search of available land. The owners of vacant sites not in use or used only as street level car parks are not in anyway contributing to the increasing wealth of the community, in fact they are restraining it, and yet they gain all the benefits when they finally sell the land at a price many times greater than what it originally cost them."

"I have never thought of it that way. I realise now even vacant sites being used as car parks restrict the production of wealth, because multistory building could be erected and return an income to the community in the form of rates and rent many times greater than what a few parking fees return."

"Thats right."

"Why did GER buy both land and property? I thought the idea of Globalism was that only sites was to be monetarised."

"Good question, and it is only sites that is monetarised by GER now, but in the beginning it was natural that many people were dubious about the idea of having land as the collateral to guarantee the worth of currency, because as many people correctly pointed out if GER owned the land but not the buildings on it, the land in a sense would be worthless because it could not be easily sold. Ultimately it did not matter who owned the land or the buildings, once all the sites throughout the world had been monetarised by a single internationally recognised and accredited autonomous body, that is, Global Exchange Reserve. But in the beginning it was necessary for GER to have control of the buildings occupying its sites to assure people, that if necessary a site could be sold including the improvements. As people's confidence grew in the system GER relinquished its control over buildings occupying its sites and concentrated on monetarising site values throughout the world.

GER is now a none profit making company. It is an autonomous body and its charter is to provide the world with a stable value currency in perpetuity. Its function is to maintain the money supply and volume of money, and to manage all GER account activity. That is, it simply keeps a record of all movements of GER currency between the GER accounts. It pays no interest on accounts, neither does it give credit or make loans. GER is now strictly and simply a steward of the world's money system, but in the beginning it had to be a profit making venture to attract investment."

8


Money


"Would you explain more clearly what money really is?"

"Few people understand what money really is, and as I've mentioned before, I am not merely referring to cash and account money. I am talking about the monetary aspect of all wealth, both goods and services, and intangibles like site values. We endeavour to give all high school children an understanding of the concept of money, by helping them to see beyond coins and notes.

We start by showing students the relationship between labour and the production of wealth. All people in the act of spending money, and in particular, housewives, are working. That is they are playing their part in the production of wealth. They help to make the whole community more wealthy. I mention housewives particularly, because although they are not paid a wage for this work they are fulfilling the exact same function that a buyer fulfills in a large company. In our society the natural income paid to a housewife is a housewives remuneration for playing her part in the production of wealth.

Money in a literal sense can neither work nor be idle. It is a tool to be used and as it explains in the GER prospectus it is has three uses:

1. It's a medium of exchange.

2. It's a store of wealth.

3. It's a unit of account.

It is people motivated by their needs, wants and desires, who work. Money is a convenient and practical idea that helps us achieve whatever it is we think we need, want or desire."

"How does money come into being in the first place?"

The fact that currency has to be created, is the crux of the money supply problem.

Imagine that all currency is in the form of bank notes and that there is no bank account currency. Now imagine a community of only ten people. As the number of people in the community increases, it will become obvious that more currency is needed, and so the government prints more bank notes and spends them. But the problem is how much should the increase be. If the government prints too many extra bank notes without an equivalent increase in community wealth then the effect will be to cause the banknotes already in circulation to lose value.

On the other hand if it does not print enough then the opposite will occur and the banknotes in circulation will increase in value because of the demand for money. In the past there was little regard by governments for the control of this increase, and they simply accommodated it via deficit budgeting, but usually created a deficit many times greater than what could be accommodated by the increase in community wealth."

"But what should the actual increase be, and how is it measured in the Globalist society?"

"Very easily, by simply using the increase in site values. Any increase in community wealth is reflected in site values. As the community's wealth increases so do site values, and is the natural way for regulating the supply of GER currency and controlling its total volume."

"How does the unit value of currency tie in with site values?"

"Once people understand the abstract nature of money, they are quick to realise that there is no constant and absolute unit value of money. The closest we can get is by causing everyone in the world to have a fair and equal opportunity to influence the unit value of money, and we do this by using the worlds most common and finite resource, namely sites. It's summed up quite neatly by 'The Law of Stable Value Currency' which states that:

'Given a free market for the supply and demand of labour, goods and services, the unit value of a currency will remain stable providing the supply of a currency is directly proportional to the aggregate value of sites owned by the supplier of the currency'


Natural Income makes it possible for us to have a totally free market for the supply and demand of labour. The three basic ideas of Globalism, Site Rate and Rent Revenue, Natural Income and a 100% reserve ratio system for banking, enabled stable value currency, to be achieved."

"Because the total volume of GER currency is directly proportional to the aggregate value of sites, we have an abundant supply of currency, and therefore interest rates are as low as one percent, and since inflation is non-existent, a one percent return on a secure investment is satisfactory. Where there is risk on investment, then naturally the rate of interest is higher."

9


Site Rate and Rent Revenue and Natural Resources Revenue


"Lets now look a little more closely at how Globalism's system of revenue works."

"OK but don't spend too much time explaining the principle, because I understand and appreciate that your community revenue is based on the belief that the community should benefit from wealth created by the community."

"Precisely! Simple isn't it?"

"Yes, but is its practical application as simple?"

"It couldn't be more simple. If the site is community owned then the occupier pays an annual rent equal to the value of the site, and if the site is owned by the occupier then the occupier pays and annual rate equal to one hundred percent of site value."

That sounds impossible. How can anyone afford to pay a rate of one hundred percent?"

"Remember there is no income tax to be paid, and you are probably thinking in terms of the old site values before Globalism. If those values still existed then most people would not be able to pay a rate of one hundred percent even with income tax abolished. Our site values are much lower because during the hundred year plan as Site Rate and Rent Revenue was progressively applied at a rate of increase of one percent per year, naturally site values decreased."

"By causing revenue to come from land, aren't you simply placing all community revenue on the shoulders of land owners?"

"Not at all, because everyone indirectly contributes to the payment of site rent and rate revenue, and don't forget a lot of revenue comes from the sale of natural resources such as oil, coal iron ore, etc. No matter what you buy, whether its food, shelter, clothing, goods or services, a small portion of the price you pay will be your contribution to a rent or rate paid to the community by either a farmer, builder, manufacturer or retailer, etc."

"How are site values determined?"

"Even before Globalism, local authorities in many countries collected revenue based on the value of property, which meant that they had to have professional valuers. We have simply continued this practise. You must remember that while site valuations can never be perfect, the advantages of Site Rate and Rent Revenue far outweigh any disadvantage. Many people would argue it's not possible to fairly and accurately place a value on a site. Particularly those that believe it's not in their interest to abolish income tax and replace it with Site Rate and Rent Revenue. I agree its not possible to place an absolute value on a site but anyone can determine a reasonable minimum and maximum figure with only the slightest knowledge of site values in a community. For example if you looked at any vacant city block you could determine a reasonable maximum and minimum value, providing you were aware of other site values in the same area. Naturally there are some people who complain and challenge the valuer's assessment in the hope of getting it reduced. But it is rare that any valuer's judgment is over ruled and in the odd case where this has occurred the new valuation has been up not down because during the time interval between the original valuation and the revaluation site values have increased."

"How are you able to qualify that site valuations in any locality truly reflect their real value?"

"Its inevitable that site occupancy or site ownership is going to change hands in all localities at some time or other. At the time a site, including the improvements, becomes available for rent or purchase it is put up for auction or tender. For both site occupancy or ownership the bidding is done in the same manner. Each bid or tender consists of two values, the first is the total value i.e., site plus improvements, and the second the site rent or purchase value. The seller receives the total value, as the sale price, and is able to claim a refund of any unused rate or rent that has been previously paid for the site. The buyer then pays to the community an annual rate or rent in advance."

"With site rates progressively increasing towards one hundred percent of the site value, and therefore causing site values to fall, didn't this reduce the GER money supply?"

"No, the money supply and volume in fact grew. You are correct in assuming that city and urban sites fell in value but the increase in rural and wilderness site values more than compensated for the falls. When you consider the expanse of the world's deserts and mountain wilderness that attracted no value before Globalism, little imagination is needed to realise that millions of people moved into these areas with the introduction of Site Rate and Rent Revenue, because initially sites in these areas attracted no rents at all. Globalism released the latent potential of human enterprise and industry that Communism and Capitalism had kept locked up. A new age of adventure was born and with the aid of centre pivot irrigation and atomic fusion power the deserts and wilderness has been turned into the legendary Garden of Eden.

Site Rate and Rent Revenue is the honest peoples public revenue system, because everyone knows with a little knowledge what the fair and just value of a site is.

One of the most significant benefits of Site Rate and Rent Revenue is that it favours neither the capitalist nor worker, and both can apply their maximum effort without fear of being penalised. In return both benefit from this effort as members of a community, where the property values of the community is constantly increasing due to the efforts of both capitalist and worker.

This is in contrast to the old system of revenue via income tax, which is a form of punishment for working harder. Income tax is a deterrent to work harder because the harder you work the greater your punishment by having to pay even greater income tax, and what's more, even though your personal income tax increases as your income increases your benefits do not. With Site Rate and Rent Revenue the harder you work the more you earn, and with your increased prosperity you can enjoy a higher standard of living, in return for paying a higher rate or rent.

Site Rate and Rent Revenue negated the system of double taxing corporate profits, whereby a corporation's profits was heavily taxed and the dividends paid was taxed yet again as part of the personal income of shareholders in some countries.

One of the most insidious aspects of income tax is that it breeds and cultivates dishonesty in many normally honest people by causing them to seek ways to evade or avoid paying tax, and once the seed of deceit is planted in a persons nature it spreads like a cancer into other aspects of their affairs.

Taxation is also an invasion of privacy. Providing you are not in debt or seeking a loan, what right has anyone to know about your financial affairs? None whatsoever, income tax is a one way street, all take and no give. Going into business for yourself is a risk and a gamble. You should be entitled to all the rewards if you are successful since if you fail you have to suffer all the misfortune. Under the income tax system of revenue you are not given compensation for failure and yet any success you achieve is taxed to the hilt. In fact the more successful you are, the more you are penalised for being successful, because your rate of taxation is increased. Its like I said, taxation is all take and no give. But with the Globalist system of Site Rate and Rent Revenue no one is penalised for working harder and everyone benefits from increased community wealth."

10


Society and Natural Income


"Globalism divided people of all nations, not by their religious or political beliefs, but by their commitment to the well-being of their friends and neighbours, and the well-being of the whole of mankind, by giving everyone a choice of either accepting or rejecting the idea that land and all mineral resources and fossil deposits belong to all mankind, both present and future.

This division was not unexpected because it was in fact a division between selfish people and the unselfish. With the Globalist tenet as their guiding principle individual people of every nation established their own autonomous Globalist group and set about the task of spreading the word about the ideology of Globalism.

The Earth witnessed the uniting of all the world's peoples as the dream of Globalism was turned into reality with the Globalist adage always in mind:

'Globalism is peaceful evolution not bloody revolution.'


Its as though an unseen hand scattered the seeds of peace and harmony throughout the world. All countries, no matter what form of government was in power, had an equal opportunity to introduce Site Rate and Rent Revenue without a bloody revolution, and to distribute Natural Income."

"With everyone guaranteed a Natural Income didn't the average person become lazy?"

"No, because people who depend on their Natural Income alone to provide themselves with the bare necessities of life such as food, shelter and clothing, are working, that is they are playing their part in producing community wealth because the food, shelter and clothing that they buy or rent must be produced by someone. Given a Natural Income, even to obtain for oneself the basics for living requires effort.

Natural Income is the catalyst for the production of immense community wealth. It provides everyone with security throughout their life from womb to tomb. Natural Income irradicates any feeling of dependency on the state or others if financial misfortune happens in a persons life. Natural Income provides the handicapped and disabled with a self-respect. Natural Income abolishes the idea of a retirement age. It changed so many of the concepts people had been conditioned to accept in the Capitalist and Communist societies. Natural Income has completely changed peoples attitudes towards employment. People work the hours that suit them by finding employment with an employer whose needs compliment theirs.

Natural Income helps to protect both the rights of the employee and employer, the rights of the latter having been disregarded for so long."

"What do you mean?"

"Prior to Globalism some people had stood over the rights of employers with impunity. An employer has a right to specify how employees will occupy themselves during their hours of employment. On the other hand the employer cannot impose unrealistic demands and conditions with impunity on the employees, and this is made possible because employees need not supply their labour since Natural Income provides guaranteed financial security for everyone."

"So Natural Income protects the rights of both employee and employer."

"That's right and it also makes it possible for people who are above material possessions to devote all their time and energy to whatever it is that interests them. It enables people to pursue unselfish goals and to work full time for charitable organisations without any need for remuneration. Natural Income enables a greater number of people to become self employed, and it has caused quality to return to both the production of goods and services. The craftsman can now compete with cheap mass production because he neither has to pay income tax nor rely solely on the profit from the sale of his product or service for income.

With Natural Income a company that prefers a more leisurely pace of production can compete with a pressure company because some people are willing to work for a lower wage at a slower pace in preference to a higher wage and faster pace.

With Natural Income there is now unlimited opportunities for the supply of labour in maintenance, personal services and other labour intensive industries, because when you consider that maintenance of all goods, and supply of services is labour intensive you can appreciate that there is no lack of employment opportunity.

In the same manner that labour moved from primary industry into secondary industry when farming became fully mechanise, labour moved from secondary industry, as it became automated and computerise, into the tertiary and leisure and pleasure industries.

Natural Income encourages people to spend because Natural Income is an assured income and is always present, and in spending it, it in turn causes more wealth to be created. Natural Income causes community wealth to be circulated and increased without the necessity of sustained population growth.

Natural Income is the ultimate product of Globalism and is a base income not a basic income.

The majority of citizens receive it to supplement their earned income or income from investments. Every citizen has the right to claim a Natural Income and depending upon their level of income they are paid a full Natural Income or a pro rata amount. No citizen depends solely on a Natural Income for their livelihood, because we have full employment and everyone during their working life also save for their retirement.

With the introduction of Natural Income comes the realisation that Globalism is a system that not only provides a sound economic base but also a social and political base, and accommodates both logic and reason, and embraces intuitive human feelings. Globalism harmonises the social, political and economic endeavours of mankind. Globalism provides a common base for world unity."

"It seems to me Globalism is a perfect system."

"No system can be perfect, since all things are in a constant state of change, but I would agree it is as near to perfection that we can ever hope to achieve."

You now have some understanding about Globalism and in the years ahead I hope you become one of its ardent supporters."