Planck Foundation | Monetary Sciences

Planck Foundation advocates regarding monetary sciences:

a gradual transformation of the banking system in OECD countries (from global to national as a response to peakcapital)

a gradual phasing out of the fractional reserves based banking system in the OECD countries (1/1 leverage system)

globalization of capital has proven to be more riskfull as expected (distance and safety have an inverse correlation)

global banking corporations will become more national compartmentalized (national regulation, funding and branding)

global banking corporations will abandon their unilabel/unibranding strategies (to prevent contamination at large)

global banking corporations will have other listing/funding and market/retail names (to prevent contamination at large)

global banking corporations will decline in number and size (operational windfalls are gone / head winds emerge)

financial regulation will emerge to more simple yet significant tightened basic rational demands (less is more model)

commercial influence on financial regulation will decline in most nations (the other nations will fall into chaos)

the combo of privatizing profits and socializing debts will decline (political no longer acceptable without martial law)

the socializing debts wave is on it's peak and will decline (political not longer possible in most nations)

debt socialization will move back into it's former borders (special purpose vehicles around the central banks)

but debt socialization by SPVs by central banks will become in dire straits too (more difficult in an information era)

ratings by rating agencies have proven to be not valid at all (rating agencies delivered false security labelling)

the risk factor of distance will be priced soon (a market driven method that will contract the reach of capital)

the kWh will replace the dollar in all denominations for international trade/loans/settlements (as it's a stable value)

no new global reserve currency is needed when the kWh denomination will be implemented (dehubbed/multipolar world)

as power in kWh will be used for international settlements international power infra will become important

EBS: energy backed securities should replace gold and reserve currencies (as energy is transportable)

EBD: energy backed derivatives are much more safe than real estate CDOs (as they build out of controllable blocks)

as the economies of the west decline the perspectives of both their governments and their banks turns gray

taking all perspectives and future liabilities into account almost all governments of the west are technical broke

taking all perspectives and future losses into account almost all banks of the west are technical broke

as some governments are more broke than others, in the same way some banks are more broke than others

a growth focused banking model will collapse without growth, not by ideology, but just by plain economics

a growth focused governmental model will collapse without growth, not by ideology, but just by plain economics

the west could prevent this decline attached collapse by using a set of wealth preserving strategies

there are more effective wealth preserving strategies than soft (grants based) and/or hard (war based) imperialism

the financial power (and by that direct also the geopolitical power) will swift from the west/north to the east/side

high cost banks will lose their business to new low cost financial providers (like facebook, google and telcos)

banks need a new income/business model as current revenues/marketshares are declining (by writedowns/competition)

most reported bank profits are inflated and full of thin air (reports are made for bonuses and mainly ignore most risks)

a model that delivers banks time to contract in size/costs without collapsing (banks as energy focused QE distributors)

a model that reforms the financial sector behaviour and that way it's image (without friends no customers for banks)

an instant transformation of the monetary system (money creation back to governments: fixing all budget/tax issues)

voluminous full energy focused quantitative easing (delivering banks a compromise on the money creation withdrawal)

legalization of comparative currencies within a nation (governments delivers growth/decline of currency trust/demand)

smaller governments with severely contracted financial demands (leaving more purchase power into the real economy)

an analysis of war as the ultimate negative economic influence (no prosperity production, just a waste of resources)

an analysis of war as 'the solution of last resort' (failed governments without any other perspective for their nations)

a swift from taxation of labour/profits towards taxation of consumption (transition from debt to assets based economies)

a total stop on quantitative easing (QE) use for debts of the past (as that doesn't build the future as compensation)

a new energy focused/narrowed QE model (that builds instead of weakening the future like traditional QE does)

hedges declining currency values with increasing energy values (by Energy as ROI and other Energy Economics models)

traditional QE only delivers currency weakening and savings/pensions weakening (effects traditional QE are negative)

traditional QE just causes 'carry trade' and not trickles down (100% capital export, 0% local/national economic revival)

the thesis that a) the energy situation, b) the capital situation and c) the global market place are all changed

the thesis that a different situation calls for another/different approach (to prevent a feeding dead horses model)

traditional stimulus -not energy focused- delivers no stimulus at all (it's feeding the future to the declining past)

a single global reserve currency delivers an imperial tax on the global economy (the USA has a limitfree creditcard)

all western nations will default on / restructuring their debt (not a question if, but a question of when and speed)

if some nations defaults on their debt many pension funds and banks will default too (governmental bail-outs are over)

the thesis that when one european nation defaults all european nations instant enters dire straits governmental funding

european nations will need instant closed budgets if one european nation defaults (delivering shaking consequences)

huge budget cut downs will deliver huge volumes of civil unrest (leadership will become inspirational or dictatorial)

unless financials will hedge declining currency values with increasing energy values the financial system will break

money creation than will go back to the governments otherwise governments will loose their democratic specifications

money creation back to governments always needs currency freedom as market driven sanction of bad spending policies

gold leasing multiplies the turbulence of the financial system and central banks therefore should not practice it

gold leasing pollutes the balance sheets of financials (as each part of the chain lists it as 100% tier one)

when sea mining get traction gold will become available in abundance (driving gold out of the monetary realm)

the ocean has 0.000005 parts per million gold (ships will have some kind of physics based Au2Cl6 attraction devices)

full backing of currencies by kWh based fuelless energy harvesting finances (energy standard instead of gold standard)

gold is an economic dead asset, energy investments are economic active assets (delivering both future payment power)

pension funds should go for 50% into energy investments as those delivers a hedge on declining financial assets

by financial assets collapse, pension funds will be able to deliver only 10 till 25% performance on their liabilities

when pension funds starts to cut payments the collection of new capital will stop (pension funds need trust to operate)

the use of kWh as a global/local currency (as it's a clear value that can't be manipulated by any external power)

re-installation of the in 1999 abandoned Glass-Steagall Act (which has protected the financial sector since 1933)

use of the Sherman Antitrust Act to solve the 'too big to fail' issue (no nation can afford any big fails anymore)

taking into receivership of any failing financial (no more privatizing profits and socializing losses anymore)

outlawing off balancing of assets with jail time as penalty (delivering more honest balance sheets publishing)

outlawing unregulated dark pools in the financial markets (the financial system can't bear the risks of dark pools)

legislation that makes all not contract revenues attached bonuses illegal (forcing a longer horizon to the financials)

legislation that makes corporate/government cross-overs illegal (as they threaten governmental policy integrity)

an ethic reveille within financials where conscience/responsibility will become important again (competing with greed)

sunspot quantity inversely effects food prices and drives by this also inflation plus GDP (due to civil unrest level)

in un-edited footage of the thirties the great depression is called the draught (nature influences monetary systems)

renewable energy harvesting investments are capital driven with a by nature guaranteed return (no fuel, just interest)

China using its surpluses to supply the world PV on credit (otherwise energy prices will kill customer purchase power)

central banks should concentrate future loans on the Energy as ROI model (secure hedge to falling currency values)

use of quantitative easing fully focused on energy investments (percolating up, currency/asset value, future strength)

maintaining cash beside plastic money is crucial for national security (the EMP of one CME can wipe out money infra)

maintaining cash money is crucial for national health costs (cash has a huge role in building the human immune system)

the Beijing Consensus (investment focused) will gain market share on the Washington Consensus (austerity focused)

the Washington Consensus will change (less austerity more growth) by the market competition of the Beijing Consensus

investments in infrastructure and renewable/fuelless energy are the main specifications of the Beijing Consensus

the Beijing Consensus has geopolitical effects: served nations will be asked to stop their involvement in geopolitical wars

geothermal and deserttech will deliver new energy surplus nations and thereby shake up the global monetary field

governmental funding will come into dire straits and could be saved by a flat tax model without any exception

taxing consumption is much more wiser than taxing labour/income/profits (as those three are the things all nations need)

geothermal exploration (like all other resources mining) could give governments additional income by licensing

governments should partial take back money creation (a unknown model which could deliver tax free economies)

partial governmental based money creation should be used for future investments not for waging wars or entitlements

sovereign debt defaults will destroy the balance sheets of banks and pensionfunds (ruining the retirement generation)

the western credit crunch will bring capital (what's left of it) back home (distance contraction equals risk reduction)

governments who think that they can neglect the production base of their nation will hit the wall (credit has a limit)

outsourcing production overseas has neo colonial roots (will boomerang back as the overseas people are smart too)

globalization has a build-in brake: financial globalization (for capital risk and distance are proven equally proportional)

globalization is based on the assumption that any kind of unrest is something of the past (which is a wrong assumption)

in western economies the size of financials is overstretched (result: increasing debts / declining assets for the people)

in many economies the concept government is overstretched (risk: collapse of all essential governmental functions)

governments who think they can bailout banks or even bailout other nations overestimate their own financial possibilities

governments who think they can afford a huge number of civil servants will hit the wall (credit has a limit)

governments who think they can afford a huge military sector with ditto actions will hit the wall (credit has a limit)

mistake lending and mistake borrowing are private transactions which never should be transferred into public debt

bank regulation deficits = governmental deficits = savings/pension deficits = democracy deficits = riots/instabilities

privatizing profits while socializing losses undermines governments/states their legitimacy and equals ordering revolution

governments soon will lose their access to the capital markets (than any budget overdrawing will no longer be possible)

governments soon will not be able to roll-over loans by new credits (which will bring them instant in dire straits)

governments soon will have to chose between stay spending or servicing their debts (only roll-over made both possible)

governments are not able to cut spending as massive and as instant as a sudden stop on any debt roll-over demands

governments will partial default on their debts (they will not be able to cut spending for full debt servicing)

governments will (re)nationalize central banks and create hyper inflation by doing that (creating Zimbabwe anywhere)

inflated national currencies will face strong local competition of foreign currencies (as result of exchange controls)

government issued money will only work if their is currency freedom (preventing governments to wage wars for free)

Energy focused/narrowed QE will remain the last possible (but effective) option to stimulate economic revival/redirection

the war on terror is overstretched (the chance of dying by a bee string is higher than of dying by a terror attack)

the war on drugs is overstretched (tactics of supporting competing gangs as solution enlarges the problem even more)

the war on terror and drugs damage the delicate relation civilians/governments (erodes paying tax willingness severely)

bailouts of financials damage the delicate relation civilians/governments (erodes paying tax willingness severely)

freedom of thinking/communication is crucial for feeding science/innovation (drives economies towards more efficiency)

globalization in finance will contract severely (as risks and distance have proven to be equally proportional in finance)

the debt restructuring of governments will vanish all savings and all pensions (hitting the elder people severely)

education = human capital = a hedge/insurance against further financial values decline (delivers further higher incomes)

a tax model that not taxes labour, but taxes consumption (the only way the old world can handle emerging markets)

basic state funded health care enables maximum availability of labour forces (and by that can be public budget neutral)

a flat tax model for person/company without any exceptions for anyone will face a lot more sympathy by the taxpayers

as capital systems will more in more local direction, currencies will follow too (the rise of kWh based currencies)

money is an easy exchange tool, not a stable asset (the financial industry is based on the wrong/opposite perception)

Planck Foundation produces analyses and models based on these issues and also is lobbying intensively for these issues.

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