It’s a true story known as ” Miracle of Wörgl” serving as a great example of what can happen if people think “out of the box”. Very inspiring for the global economic changes coming soon…
In fact it wasn’t a miracle at all, but only common sense and basic financial mathematics in action. But it is still amazing and perhaps the story of Wörgl and its amazing mayor can help you to convince friends and loved ones about the inherent fraudulence of the scam called “our money system”.
The year was 1932; the world was gripped by the greatest economic depression that it had ever known. One man in a small town decided to try something new to help the people of his community. In doing so the town made economic history. The mayor of Wörgl Michael Unterguggenberger started on the 31st of July 1932 with the issuing of “Certified Compensation Bills”, a form of currency commonly known as Stamp Scrip, or Freigeld. This was an application of the monetary theories of the economist Silvio Gesell .
The experiment resulted in a growth in employment and meant that local government projects such as new houses, a reservoir , a ski jump and a bridge could all be completed, seeming to defy the depression in the rest of the country. Inflation and deflation are also reputed to have been non-existent for the duration of the experiment.
One eyewitness report was written by Claude Bourdet, master engineer from the Zürich Polytechnic:
“I visited Wörgl in August 1933, exactly one year after the launch of the experiment. One has to acknowledge that the result borders on the miraculous. The roads, notorious for their dreadful state, match now the Italian Autostrade. The Mayor’s office complex has been beautifully restored as a charming chalet with blossoming gladioli. A new concrete bridge carries the proud plaque: “Built with Free Money in the year 1933.” Everywhere one sees new streetlights, as well as one street named after Silvio Gesell.
The workers at the many building sites are all zealous supporters of the Free Money system. I was in the stores: the Bills are being accepted everywhere alongside with the official money. Prices have not gone up. Some people maintained that the system being experimented in Wörgl prevents the formation of equity, acting as a hidden new way of exploiting the taxpayer. There seems to be a little error in that view.
Never before one saw taxpayers not protesting at the top of their voices when parting with their money. In Wörgl no one was protesting. On the contrary, taxes are paid in advance; people are enthusiastic about the experiment and complain bitterly at the National Bank’s opposing the issuing of new notes. It is impossible to dub it only a “new form of tax” for the general improvement of Wörgl. One cannot but agree with the Mayor that the new money performs its function far better than the old one.
I leave it to the experts to establish if there is inflation despite the 100% cover. Incidentally price increases, the first sign of inflation, do not occur. As far as saving is concerned one can say that the new money favors saving properly so-called rather than hoarding money. As money lost value by keeping it at home, one could avoid the depreciation by depositing in the savings bank.
Wörgl has become a kind of pilgrim shrine for macro-economists from a variety of countries. One can recognize them right away by their learned expressions when discussing the beautifully maintained streets of Wörgl while sitting at restaurant tables. Wörgl’s population, proud of their fame, welcomes them warmly.”
Despite attracting great interest at the time, including from French Premier Edouard Daladier and the economist Irving Fisher, the “experiment” was terminated by the Austrian National Bank on the 1st September 1933 on the basis of the “Certified Compensation Bills” being a threat to the Bank’s monopoly on printing money. The case was brought in front of the Austrian Supreme Court, which upheld the Central Banks monopoly over issuing currency. It then became a criminal offence to issue “emergency currency”. Wörgl quickly returned to 30% unemployment.