1000 petals by axinia

the only truth I know is my own experience

How to live wealthy without saving or borrowing money June 29, 2011

Filed under: thoughts — axinia @ 9:04 pm

image of town Wörgl

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.


11 Responses to “How to live wealthy without saving or borrowing money”

  1. Cordieb Says:

    Lack is an illusion!

  2. volodimir108 Says:

    This exepriment shows a possible economical model where money exist but capital is not being the aim of it.

    In Wörgl it worked this way: Everyone was getting some moeny and by the end of month this monex should have been sepnt competely. If someone still had some moeny left, then he/she had to pay interest to the town government. basically it is just the opposite to the modern state of things.
    So people were not interested to save money, they spent comepletely and that made the economy flourish.

    I like this model because it is not making people greedy!

  3. axinia Says:

    I was very happy to learn about this model and that it really worked. Because I always felt that money as it is being used now is totally wrong, because it awakens the worst (greed, envy) in humans.
    Who knows, may be we will come to it finally?

    • I remember in 1991 when I was studding economy in my BSc in Mumbai our economy mam told us about this economy system labelling as macroeconomy where money grows when people will spend it . money shold be circulated then it grows when we keep it home without spendig money will not grow . so this philosophy encurrages people to spend more n more . it is specially true with all electronic goods, cars, and such luxrious items.on the other hand from our childhood we lerarn to save money .You will surprise these small savings still support lot to Indian economy and individual familly budgeting also. It keep us away from credit systeem and bankruppcy. she lebbeled this system as microeconomy >In India you will find middle man always belives on these small savings they never expend total money which is in your hand in fact in familly budgeting I learn about 20 % your earning you should save for future . I heard in christen philosopy they tell bout 10 % they shoud donet to churches . In India property of temples you will find crorers just lying as it it . it is yesterdays’ news in Padmnabh temple in tamilnadu very huge amont found our ( Richer than balaji still two rooms tobe counted!!) As per microeconmy if this money will come to circullation and in India their are many such temple . Shirdi, Sidhivinayak… in maharashtra. personal holding of various Guru’s are still different and in very huge amount hat I feel along with campain againest curruption Anna Hajare should launch nother campaign about such money but I know nobody will be as peoples emotions and belifs are attached with that.( there is one another philosopy lies in peoples mind that earn whatever way and then spent like any thing or earn “punya” by spending in suchtemples/ trusts or guru’s ….)
      vova and axinia I agree that hopefully people will not greedy ( It is possible with balanced person) but in genral people will become bnncurpt due to habit of spending on luxrious item rather than nescesssity ( American crisis!!!)if they dont know where to stop !!??? ( It is said in last situatuation indian economy donot collaps much due to these habits of small saving and less spending or spending according to our capacity!!!

  4. Vinayakah Says:

    Dear Axinia,

    Thank you very much for this post. This is the one of the topics that comes up quite a lot today, and I am happy that I start to read it more and more also from yogis. There have been done much more experiments of that kind, like “time dollars” and so on. If you are interested to find more, see for example the book from Bernard Lietaer – Future of Money, where he describes in a very clear and easy way the base of money, its history, system itself, complementary solutions and also the possible scenarios of future. Excelent book, from a guy that was Central banker, named the best trader on currency market in the world and so on….

    p.s. If you but start to dig deeper into the system itself, into history of UN, NGO, EU, FED, money itself……it can happen that you will find very unplesant truths. But it is a part of the total view, so if digging with honesty, it cant be overseen. Good luck;)

    • axinia Says:

      the topic is too vast for me…mostly it is my husband who is reading and giving me the digest of the best materials about it. My mind goes blank when it comes to money topics, always 🙂

      • vinayakah Says:

        Yes, same with many people….to keep attention on dead things is difficult 😉

        It can be said easily, these are just instruments of enslavement. The instruments of whom, used against whom…and why? Thats the point;)

  5. A very interesting topic, I think we should explore more on the theory itself and the kind of principles it is based on – I will try to, thanks for the inspiration, Axinia.

    Destination Infinity

  6. […] an experiemnt took place in Austria and has an exteme succes: read more about it in my recent post here.   So I have the basic idea of ​​Margrit Kennedy’s book “Money and interest rates […]

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