Valentin katasonov interest loan justiciable reckless the money civilization and the present day crisis

and figures, you can obviously see a “forest” which is an attempt to give a windowed spiritual and moral estimate of the condition of the modern global crisis, and even more of the whole

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ions or thoughts of the publisher The author has represented and warranted full ownership and/or legal right to publish all the materials in this book.

Interest: Loan, Justiciable, Reckless

“The Money Civilization” and the Present-Day Crisis

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Foreword xiii

Introduction 1

Part 1 Crises and the Usury Virus Chapter 1 Crises: the Conventional Explanations 13

Cited Literature to Chapter 1 17

Chapter 2 Karl Marx about Crises 20

Political Economy by Marx: Capitalism Definition 20

Dialectic of Riches and Power 21

Capitalism Is an Antichristian Civilization 22

Marx’s Doctrine: Half-Truth or Half-Lie 23

Chapter 3 Monetary System of Capitalism 25

Money and Capital 25

What Do You Need to Turn Money into Capital? 26

No Servant Can Serve Two Masters 28

Chapter 4 Usury “Virus” 32

Usury: Origin of “Virus” 32

Jacques Attali’s Revelation 35

Warning of Aristotle and Holy Fathers 37

Part 2 Beginning of the “Money Civilization” and End of the Economics Chapter 5 “Money Revolution”: Partial Legalization of the Usurious Interest 47

Permanent “Money Revolution” as a Means of Struggle of the Usurers for World Domination 47

Roman Catholic Church: Forming of the Usury Double Approach 49

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Chapter 6 “Money Revolution”: Complete Legalization of the

Usurious Interest 54

Usury in Medieval Europe 54

The Reformation and the Usury Further Attack 58

History of Europe as a Chain of “Money Revolutions” and “Money Counterrevolutions” 61

Chapter 7 “Economy Death” and Something about “Economic Philology” 67

Economy and Chrematistic 67

Capitalism by Marx 69

“Professional Economists”—Creators of the New Language 71

Ivor Benson about the “Economic Science” and “Professional Economists” 73

“Economic Science” and “Professional Economists” Serving the Usurers 76

Part 3 “Debt Economy” as a Mode of Existence of the “Money Civilization” Chapter 8 Credit Money and “Debt Economy”: England and America 87

Credit Money Is an Invention of the Usurers 87

Great Britain Is a Pattern of “Debt Economy” 90

America Is the World’s Debtor 92

American “Economy” Is a Colossus with Feet of Clay 107

Citied Literature to Chapter 8 110

Chapter 9 “Debt Economy” in the Global Dimension 112

“Debt Economy” in Countries of Western Europe and Japan 112

Credit Attack of the Usurers to the “Third World” Countries 113

“Debt Pit” for Argentina 117

Bluff of the Chilean “Miracle” 120

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Part 4 Credit Money, or Why Society Is Always Short of Money Chapter 10 Credit Money and Crises 131

J B Say’s Law, or Simple Commodity Production 131

Capitalist Production: Where Does the Profit Come From? 133

Credit Money—Profit—Crisis 136

Credit Money: Risks of the Usurers and Society 139

Crises Is the “Golden” Time of Usurers 141

Chapter 11 Credit Money—Virus of Breaking Down 146

Money as a Medium and a Purpose 146

“Lust for Money” and Unnatural Needs 147

“Lust for Money”: “Bellum Omnium Contra Omnes” 150

“Lust for Money” and Squandering of the “Market Economy” 151

About False Mirrors of the Statistics and “Public Consequence” of the Usurers 153

Credit Money and Inflation 155

“Itch for Money” and Property Polarization of Society 159

Credit Money—a Virus of Physical and Spiritual Destruction of Man 162

Part 5 “Partial Redundancy” or Judicial Fraud Chapter 12 “Money Revolution”: Legalization of the “Partial Redundancy” 167

Partial Redundancy = Coinage Offence 167

“Asymmetry” of Credit and Deposit Operations of Banks 170

How Usurers Struggled for Legalization of the Partial Redundancy 171

Politicians as Lobbyists of the Partial Redundancy 175

Voluntary Depositing for the Purpose of Financial Pyramid Building 178

One-Way Street 182

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Chapter 13 As the Usurers Struggle with Bank Crises 187

Lender of Last Resort 187

“Legal Reserve Requirements” or Fig-Leaf of Counterfeiters 189

Chain Reaction in the “Monetary and Credit Reactor” 191

Counterfeiters in Battle for Their Rights 192

A Straw for a Drowning Man 193

Who Pays for Bank Crises? 195

Dollars from Helicopters 197

Banking “Socialism” 202

Chapter 14 Full-Reserve Method: Utopia or Reality? 209

No Utopia, but Historical Evidence 209

Attempts to Introduce Proper Order 211

Projects Called: “The Wolves Are Sated and the Sheep Intact” 215

Part 6 Key Milestones of “Money Revolution” Chapter 15 “Money Revolution”: Creation of Securities and Stock Exchange 221

The Third Level of the Financial System 221

Stock Exchanges and First Joint-Stock Companies 222

Stock Exchange and “Panlibhonco” 226

Investment Banks and Manipulations in Stock Exchanges 227

Technologies of Stock Jobbers 229

Inside or “a One-Way Street” Case 233

Gambling House Rather Than Economy 237

Chapter 16 “Money Revolution”: Creation of Central Banks 242

Why Do Usurers Need the Central Bank? 242

Bank of England 244

Bank of France 249

United States of America: Long Way to the Central Bank 253

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“Fright We Have Not Seen Before” 269

Modern Crisis: “Passions” Round the Central Banks 273

Bank of Russia or FRS Branch? 280

Chapter 17 “Money Revolution”: Introduction and Cancellation of the Gold Standard 291

The Rothschilds and Gold Standard 291

The End of the Gold Standard and Beginning of the New World Financial Order 297

Monetarism as Ideological Substantiation of New Financial Order 299

Current Crisis and “Renaissance” of Gold 302

Gold Is the Main Secret of the World Usurers 304

Chapter 18 Money Demand Making—the Usurers’ Priority Mission 312

Twofold Mission of the Usurers 312

Hypothecary and Consumer Credits as a Great Way of the Usurer Problem Solving 313

Technologies of Creation of Demand for “Services” of Usurers on the Part of the Government 317

Part 7 Liberalization as the Highest Stage of the “Money Civilization” Development Chapter 19 Universal Liberalization as a Way of Forming a Demand for Money 323

“Economical Liberalization” Has already Been in the World History 323

Guidelines for Modern Liberalization 326

Price Liberalization or Uncontrolled Freedom of Monopolies 327

Liberalization of the Capital International Movement or “Everything for Sale!” 331

Intangible Assets Constructing 336

National Financial Capitalism 338

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Chapter 20 Liberalization: Innovations in the Share

and Credit Markets 342

New Technologies and Usurer Projects in the Financial Markets by the Close of the Twentieth Century 342

Companies as a Sale-Purchase and Gamble Object 351

Who Helps the Usurers to Play the Share Market? 356

Economic Science Is in the Speculators’ Service 361

Investments in Quotes 363

Financial Markets Rocking and Forming of Demand for the FRS “Production” 364

Chapter 21 Derivatives Instruments, or the Finance Babel Tower 370

Derivatives Instruments, or Final Virtualization of Finance 370

Magic Wand Called CDS 373

Virtual World as an Instrument of the Real World Control 374 The Fourth Level of the Financial Pyramid 379

Is It Possible to Build the Infinite Financial Pyramid? 382

Virtual World Constructing 385

Derivatives Are the Last Page of the “Money Civilization” History 388

Part 8 Money Civilization: Life in “Shadow” Chapter 22 “Shadow Economy” as a Way of Existence of the World Usurers 393

“Shadow Economy”: Concept and Scope 393

“Tax Havens” and “Financial Confidentiality Jurisdiction” 397

Offshores Are the Threat to Sovereign Economy 401

Charitable Funds as “Inner” Offshores 403

The United States and Great Britain Are the Major Patrons of the Offshore Business 407

Secrecy as a Way of the “Market Economy” Existence 410

How the West “Struggles” against the “Shadow Economy” 413

“Shadow Economy” and Special Service 417

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“Shadow Economy” 423

Eurocurrency Market Is the World’s Financial System Offshore 423

Money Authorities: Complete “Shadow” 427

Crime and Secret Service Connections of Banks: History of the BCCI Bank 430

Vatican’s Bank: the Institution of “Untouchable” 434

Part 9 Money, Credit, Usury: Theory and Life Chapter 24 How Is the Today Money Supported? 443

What Is “Cover of Money”? 443

Money Commodity Collateral 444

Flat Money 446

Money Forced Collateral 451

Occupation Money 455

Money after September 11, 2001 461

Chapter 25 What They Write about Credits and Usury Here and There 470

Mainstream and “Economical Opposition” in the Western World 470

What Our “Economics” Textbooks Say about Money and Usurers 474

Chapter 26 Karl Marx, Rothschilds, and Mechanisms of the People Debt Depredation 482

About the Balance of Industrial, Commercial, and Bank Capital 482

Henry Ford, Henry George, Silvio Gesell about Money and Economy 487

The Methods of Working-Class Depredation 490

Capitalist Crisis: Overproduction or Underconsumption? 492

M Bakunin about Marx and the Rothschilds 494

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Chapter 27 “Food Chains” and “Pyramids” of the “Money

Civilization” 499

The Laws of Biology and the Laws of the Capitalist Jungle 499 World Financial Pyramid 502

Exchange Rate as a Tool of International Plunder 508

Unequal Exchange as a Law of “Market Economy” 511

Outlaws and Outsiders of the World Financial Pyramid 518

“Democratic” Russia in the World Financial Pyramid 519

Chapter 28 Corporatism as a Modern Form of the “Money Civilization” 525

Monopoly Dictatorship 525

External Expansion of Capital, or Imperialism 528

Alliance of the State and Monopolies 528

State Monopoly Capitalism, or “Legalized Embezzlement” 532 Government Programmes or “Panamas”? 534

Privatization of the State as the Aim of Usurers 539

Chapter 29 Central Banks in the Global Context 549

International Network and Hierarchy of Central Banks 549

The “Gray Cardinal” of the Usurers’ World 553

On the Way to the World Central Bank 559

Chapter 30 “Money Civilization”: The Threat to Human Existence 562

Capitalism = Inefficiency + Aggressiveness 562

Russia as an Object of Usurious Aggression 567

Usurers as the Organisers of the Second World War 568

Military Escort for Export of Goods and Capital 573

War as a Great Business Project 576

America’s Debts Are a Threat to Humanity 580

World Government and World Slaveholding Order 584

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Chapter 31 The “World Usurers”: Who Are They? 597

“Ordinary” Billionaires and the “World Usurers” 597

Again about the “Charity” of Money Usurers 600

The History of the World Usurers’ Banking Houses 603

“Family” Nature of the Business 607

Dynastic Marriages and Other “Secrets” of Usurers 609

The International Nature of the Business 611

The Rothschilds: Family Power and Family Business Centralization 612

World Usurers: the Dialectics of Unity and Struggle 615

Chapter 32 “Spiritual” Mission of Usurers 622

Early Marx about the “Religion of Money” 622

Victories of the “Money Revolution” and Spiritual Enslavement of Christianity 624

The Secret of Usurers’ Power: “Bread and Circuses!” 627

Chapter 33 How to Overcome the “Interest Virus” 632

Interest Abolishment: “Soft” and “Hard” Options 632

Nationalization of the Monetary System 637

National Monetary System and Loan Interest 645

About Errors and Achievements of the Soviet Era 652

Urgent Tasks of the Day 658

Conclusion About Genius and Madness of the World Usurers 663

The patient is more dead than alive 672

The root of evil: greed and lack of morality 676

What comes next? 680

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I HAVE TO admit that it gives me great pleasure to present to the readers a book written, according to its author, as affected by my

article “Justiciable Interest” in the journal The Sixth Sense (please,

find the article enclosed in the Appendix to the book—editor’s note) In the article regret was expressed at the burning financial and economic questions which occupy the growing part of modern life but gain insufficient understanding and estimation from the position of Christianity

Today, new books and articles cover the recent economical and financial crisis (by the way, according to the book’s author, the cri-sis has not been completed Now we can see just a “respite,” which

is followed by its next phase) Alas! These books and articles centrate the reader’s attention on technical aspects only, at its best

con-on political and its moral aspects All this is necessary but ously not enough The spiritual origin of all financial and economic issues of our time remains out of sight of the researchers

obvi-And, at last, we face the first of a kind of fundamental work on economics and money where the author (a scientist, teacher, and practitioner at the same time) makes an attempt to look behind the screen of exterior developments of the global financial endless dis-order to penetrate into the secret of its origin; you know, if a tree is sick, it is necessary to treat its roots but not the leaves and branches

At first sight, it seems that the book is mainly addressed to the specialists: it abounds in highly specialized financial terms, eco-nomic statistics, references to the known (and not very well known, sometimes even unknown) economists But it’s at first sight only

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and figures, you can obviously see a “forest” which is an attempt

to give a windowed spiritual and moral estimate of the condition

of the modern global crisis, and even more of the whole modern civilization where soul and blood are money The reader should

be prepared to go beyond the one-dimensional perception of the world intrinsic for a modern sight based on the ideas of “economic determinism.” He is offered to see the modern crisis and modern civilization (coded in terms “capitalism,” “market system,” “mod-ern democracy,” etc.) from other perspectives and measurements: social, political, anthropological, psychological, mental, ethical, and spiritual

It is obviously that the most important, deepest, most mental measurement among them is the spiritual one Let’s clear this up: not a simple religious, and even not general Christian mea-surement, namely an Orthodox one The author’s idea is to show

funda-to the most mistrustful and demanding reader that any events, any transformations and motions in the sphere of economics and fi-nance are the objective results of appropriate alterations in the spir-itual state of the man and society Generally speaking, the formula

is as follows: when the man is getting nearer to God, the economics gets better, more stable, satisfying his material needs more fully When the man is moving away from God, the economics begins

to ail, go down, and the man can lose his daily bread (today, it is exactly so in the world and Russia) Such a metaphysical approach allows even a professional economist to look with different eyes at any “small details,” referring to the world of money, finance, and business

For fairness’s sake, it is necessary to notice that such attempts of the metaphysical understanding of the “earthly” spheres and sub-jects of the human life, i.e., household, finances, wealth, etc., were also made in the past The count is possible from Aristotle, and you can continue this line of thinkers by such names as Thomas Aquinas, Max Weber, Werner Sombart, Oswald Spengler, and oth-ers However, that was metaphysics of Catholicism, Protestantism,

or even Agnosticism

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I T Pososhkov (The Book on Scarcity and Wealth), S Bulgakov (Philosophy of Economy), I Seipel (Economic and Ethical Views of the

Church Fathers), V F Ern (The Christian Ideal of the Economics), N A

Berdyaev (On the Economy), and others This is, without

exaggera-tion, the most valuable world outlook heritage to make easier our understanding of the modern economical and financial life from the position of the East European tradition At the same time, it is obvious that the scientific, methodical platform developed in these works is not enough for understanding the modern, incredibly complicated civilization reality

First, we should allow that a contemporary, unfortunately and frequently, is not ready, intelligently and spiritually, to start learning such complicated works Today’s man, educated by the

Internet, TV, and The Expert magazine, needs another, simpler and

more habitual language (which is frequently the professional nomic newspeak)

eco-Second, the latest fundamental Orthodox works on economic issues were published almost a century ago The history of the twentieth century and the beginning of the twenty-first century has given the rich empirical material which always yields to no “deci-phering” from the position of views and conceptions of the Russian Orthodox thinkers in the past For example, they do not cover, for some reasons, some serious metaphysical understanding of the so-cialistic economic experience And it is necessary, particularly for

a better understanding of what “capitalism,” the “market system,” and “modern democracy,” are; i.e., that public environment where

we have been “flourishing” already for 20 years, at least

I believe that this work is the first “building block” in the ness of the metaphysical Orthodox; i.e., maximum approximated

busi-to the Christian roots, understanding of the modern economic and financial life and bringing the results of such understanding to the reading public at large

The central concepts of the book are the “financial crisis,”

“money civilization,” and “money revolution.”

The writer convincingly demonstrates that the so-called

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itual crisis And the spiritual crisis from the Orthodox position is treated by him as a retreat of man from God In public life, such

a retreat appears in the crisis of the Christian civilization, its placement with the post-Christian (and nowadays, an antichristian one) civilization with the pagan idol Mammon in the center instead

dis-of Christ

The author describes the historical process of shaking and demolition of the Christian civilization using, to our thinking, a very accurate and concise concept of the “money revolution.” A key question of any revolution is the question of power “Money revolution” is a process of Mammon admirers moving to the posi-tion of power The author selects the basic characteristics of this

“revolution.”

First, it is spread in time over many centuries (and even niums) Today, it is still not finished Therefore, the “money revolu-tion” is called a “permanent one” in the book Holy Fathers called the conquest by “money revolutionaries” of new occasions and posi-tions in the economics, politics, culture, and education on a national scale and on a family basis, in the soul of a single man as the “apos-tasy” process, i.e., retreat from God The writer persuasively showed

millen-on the actual fact material how this “apostasy” process took, and is taking place in the sphere of economic life He marked out the main, key phases of the “money revolution”: partial (informal) legaliza-tion of the usurious interest; full legalization of the usury; creation

of banks with obligations partial reserving, and transition of the rers to wringing new money out of “thin air”; “invention” and intro-duction into daily life of security and the stock exchange; building central banks—“general headquarters” of the usurers and establish-ing, based on them, the complete control of the state treasury and money circulation; “gold enslavement” of mankind by means of the gold standard introduction into the internal and international money turnover; the gold standard cancelling and “greenback emission” at full capacity; general (global) economic liberalization

usu-The last of the phases is our time, the end of the twentieth and the beginning of the twenty-first centuries It is characterized by

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novations, a spurt of chaos and instability not only in the financial but in all other spheres of public life This very time period covers offshore companies flourishing, the occurrence and spread of the

“epidemic” of financial derivative instruments, the creation of new financial institutions such as hedge funds, the abrupt rise of de-benture (financial) pyramids, widespread privatizing of state assets (not only in Russia but also many other countries), the appearance

of the virtual capital in the shape of so-called intellectual property, the transformation of companies into the main object of the market gamble and the merger processes, etc

First, at this phase of the “money revolution,” the world nomics completely loses the ability to create a new material wealth (cost) and turns into the condition of excessive self-criticism, slips into a coma (the “professional economists” call it by sophisticated words: “financial crisis”)

eco-Second, we speak not only and not so much about the conquest

of power by “revolutionaries” in a single country (state) Their final purpose is the power in the scale of all mankind and world domi-nation Just due to the prism of such understanding of the “money revolution,” it is possible to assess such processes as globalization (including financial ones), political, economic, and currency-and-financial integration, projects of the global currency and global cen-tral bank creation, etc

Third, the “revolutionaries” tend not only and not so much to the power over other people’s property, i.e to formal enrichment Only “ordinary revolutionaries” (“outsiders”) imagine wealth as the final goal For the “initiated revolutionaries,” wealth is only the means for power over the souls of people They need spiritual power, and wealth and political authority are only stages to move

to this prime target

This is the strategy of the “money revolutionaries.” The physical picture of “money revolution” allows a man with even elements of the spiritual vision to understand who stands behind the “ordinary revolutionaries,” and who is the “chief revolution-ary.” Since the beginning of time, the world “chief revolutionary”

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meta-occupy His place, and, in the last analysis, appeared to be thrown by Him His accomplices also appeared to be overthrown However, under his persistent attacks, the “chief revolutionary,” who was called by Christ as the “liar” and “manslayer,” does his best to bring the maximum number of living people into the abyss

over-of spiritual death The “ideals” over-of “money revolution” (wealth, money, endless consumption, “emancipation” from duty to work, etc.) are the same “forbidden fruit” which, in due time, brought the whole mankind to the universal catastrophe—the tragedy which happened to our first parents in paradise However, the “forbid-den fruit” is not wealth and money It is a blind and greedy hope for them as the means of replacing God Therefore, not only those who have billions in bank accounts and private residences on Cote d’Azur enjoy the “forbidden fruit,” but also those who are lost in dreams about these billions and these private residences

Once again, I want to point out a relevant thought regarding this work: the present financial and economic crisis is impossible to

be placed within the chronological framework of 2 or 3 years, and even to hope that we have overcome it The crisis is going on And

it began long ago, when the usurers partly managed to legalize the loan interest (first phase of the “money revolution”) Efforts of the

“professional economists” to show that for the last 2-3 centuries, the economical history of capitalism was the economy’s progressive and dynamic advance, which was sometimes interrupted by the crises of overproduction, and served only as a trick for simpletons and the call to fill society with a hope that the “patient is healthy.” With the appearance of the “virus” of usurious interest in society, its organism became deathly sick However, at the same time, the

“patient” was growing up, putting on weight and getting stronger

in outward appearance Separate attacks and indispositions were considered as “accidental.” It was a long enough latent phase of the disease And the doctors (i.e., “professional economists”) skillfully diminished all the patient’s doubts

But today’s “professional economists” are in full sion, as metastases has appeared on the “patient’s” body, and he

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confu-ease, and they do not know how to treat the “patient,” as they lost all their professional skills long ago (if they have ever had any) The only means available are larger doses of morphine injections (i.e., billions and billions of dollars into the economy’s half-dead body) This author’s treatment of the actual situation in the current fi-nancial and economic collapse is new and original At the same time, it is true, with hard facts, and impartial But we know that it

is impossible to heal up the man if there is no correct and able diagnosis, even if such a diagnosis looks brutal I believe that this work is an attempt to diagnose, to reach the problem at heart And it provides a chance to defeat the illness—just a chance—not warranty

honor-To realize this chance, the correct treatment regimen is sary The illness is serious and neglected A team of doctors is nec-essary for its treatment The regimen development is a collective business In other words, to overcome the crisis, we need the pro-gram developed by economists, sociologists, politologists, philoso-phers, anthropologists, theologians, and other specialists who have their feet on the ground regarding the Orthodoxy and who firmly understand that without the God’s favor (“neither can you, unless you abide in me”), any invention is no more than the next “project.”

neces-In the last chapter of the book, the writer plans outlines of such

“healing regimens.” His major thesis: the overcoming of illness sis) within the framework of the existing “money civilization” is impossible Let’s hope these appeals will be heard in society and power, and the program development will be continued

(cri-In summary, I would like to wish the author not to be satisfied with what has already been achieved, and to develop the closing chapter theses into the all-up program of the economical revival of Russia

A I Notin President, Cultural and Educational Society PEREPRAVA

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Tamara Katasonova and Yuri Katasonov

15:1 Yahweh, who shall dwell in your sanctuary?

Who shall live on your holy hill?

15:5 He who doesn’t lend out his money for usury,

nor take a bribe against the innocent

He who does these things shall never be shaken

26 And every one that heareth these sayings of mine, and doeth them not, shall be likened unto a foolish man, which built his house upon the sand:

27 And the rain descended, and the floods came, and the winds blew, and beat upon that house; and it fell: and great was the fall

of it

(The Gospel According to St Matthew, 7:24–27)

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AT THE BEGINNING of 2008, in the journal The Sixth Sense, the cle of A Notin Justiciable Iinterest 11 was published, where the author wrote about the usury (interest collection loan operations) as about the criminal activity equal to the activity “within the jurisdiction.”

arti-The persons engaged in the interest operations, the usurers, should

appear before the Human Court and Ordeal The Holy Scriptures speak many times about the ban on the collection of interest because

it is considered as one of the God’s “small” commandments

Its violation causes the violation of the basic commandments: deception, stealing, murder, etc First, the life of separate people, and then the life of the whole society becomes intolerable: there are wars, crises, revolutions, people killing each other, and degenerat-ing physically and spiritually The jinn out of the bottle generates such consequences like interests which finally strike those who let the jinn out, the usurers Now we do not speak about the Justice

of Heaven waiting for the usurers after their mortal life ends Our fathers of old understood that the ban on interest collection is not such a “small” commandment, if the usury was punished as se-verely as a murder, with the death penalty

God teaches all people who have still a few vestiges of decency and reason about that usury is a sin, and not only under the Holy

1 Alexander Notin Justiciable Interest Orthodox view of the world financial system

The Sixth Sense, 2008, no 1 (the article text is given in the appendix—editor’s note)/

Александр Нотин Подсудный процент Православный взгляд на мировую нансовую систему Шестое чувство, 2008, №1 (текст статьи приведен в приложе- нии–прим ред.).

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фи-Scriptures It teaches sending some signals to the “lost sheep.” The

current economic crisis is one of such signals, and, per se, justice, since crisis means “justice” in the Greek language So, the loan interest may be called as the justiciable interest with confidence: it

necessarily causes a crisis, and not only in the economies but tics, social relations, and spiritual life It is the trial above, not an individual but the society where the place of God is occupied by money, and the usurer has become the “master of the life,” and is

poli-called now with a “presentable” word: the “banker.”

Today, there are quite many people suspecting that the reasons for a crises are in the loan interests And probing deeper, its reasons

are in the hearts of the people who could not resist the temptation of

greed for money The greed for money has many faces, but the

patri-archs and apostolic fathers of the Christian age said that it was one

of its most abominable forms The loan interest is like a virus ing the man’s flesh and soul and interpersonal relations; it causes fraud, violence, murders, and other felonies against man

eat-Moreover, it destroys the natural and man-made environment

of a man’s home, in the broad sense of the word The last one is

called the economy (economy is translated from Greek as “house

building,” “family rules”)

This is the Savior appealing to us in the Sermon on the Mount which He completed by the parable about the “reasonable” and

“reckless” house builders Our “house,” which we realize as the economy within the context of this book, falls down under pressure

of the world elements because we have tried building our house on the “sand” of disbelief in God, violating the eternal laws of the spir-itual life But, for some reason, the Savior calls us unlucky house builders as not “criminal,” “justiciable,” and even “sinful,” but just

reckless It means, He appeals in the Sermon on the Mount to our

reason The ordeal given us is His appeal to let us understand both the earthly (material) and spiritual reasons of our house falling If

we do not realize this truth, there will be its “great fall.” Our lessness is significantly conditioned by the fact that we have not comprehended the reasons why violation of the ban on interest col-lection causes our house’s demolition It is exactly so In this sense,

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reck-the loan interest is possible to call not only as a “justiciable interest” but also “reckless interest.”

Let’s try to understand why the loan interest is reckless tainly, the speech is about the recklessness of those who collect in-terest, and not the very interest itself) Partly, the explanation of this

(cer-“recklessness” is given in the previously mentioned paper of A I Notin But many theses of the writer require additional decryption and illustration with the help of samples from history and today’s examples This book represents an answer to the invitation of the paper’s author to start a subject about the spiritual, moral, anthro-pological, social, political, and in some cases, “technical” aspects

of today’s economic life In the whole range of the economic life sues, a question of money takes the key place as, according to what

is-is below, today, we live in the conditions of a “money civilization.”

The philosophers, sociologists, theologians, and representatives

of other humanitarian sciences occasionally pass by the “technical”

aspects of money and money circulation But, as they speak, “the

devil is in the details” and his earthly servants (we will speak about these servants in more detail later) carefully preserve his secrets connected to the details of the money circulation The devil’s (the prince of this world) greatest fear is the light, for the light deprives him of his power over people Let’s try to throw light on some such

“details,” this indispensable (but, certainly, not sufficient) tion of termination of the current reckless demolition of our house (economy) and transformation of the man into a reasonable “house builder.”

condi-I must forewarn my readers, that for understanding many real processes in the economy and money sphere, the reader should leave behind those habitual stereotypes of thinking and ideas which were formed and influenced by our official education and mass media These stereotypes of thinking and ideas are based on the narrow, purely “economical” and vulgar-materialistic approach to the comprehension of the money world In some cases, we need the cardinal modification of the world outlook, a turnover We are aware of this This book cannot provide such a revolution, but it can make the reader think of matters far beyond the traditional

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everyday problems connected to the money subject

To understand what money is, you need not only use your tellect but have courage You need an honest and courageous per-ception of the real life which essentially differs from those views from “rose-colored” glasses, which, unfortunately, fill many of our textbooks on the economy and money Some people are truly afraid

in-of the “black” pictures depicting the money world in the world in-of people Sometime they “open their eyes” to see the shocking pic-ture of the cynicism ruling in the world of money, and the downfall the world of people is approaching They get seized by fear at the sight of these “black” pictures, and they hurry to return to the com-fortable world of illusions

But everyone selects his own way of life We write for those who follow the principle: the bitter truth is always better than the honeyed lie You see, a lie disarms man, deprives him of his capaci-ties against evil

Let’s remember the words from the Gospel according to St John

sent by the Savior to the Pharisees and Scribes: “You are of your

father the devil, and the lusts of your father you will do He was

a murderer from the very beginning, and abode not in the truth, because there is no truth in him When he speaks a lie, he speaks of his own: for he is a liar, and the father of it” (John 8: 44)

The meaning of the words of St John the Evangelist is

abso-lutely clear: a lie always ends with manslaughter A lie which reigns in

the world of money and around the world of money has already resulted

in bloody wars; but also in the “peace” periods of the history, it kills and keeps killing millions of people

The truth always brings hope for saving There are good grounds for the saying: “forewarned is forearmed.”

By the way, in Matthew the Evangelist, the Savior speaks in the Sermon on the Mount: “Blessed are those who hunger and thirst the truth, for they shall satiate themselves” (Matthew 5:6) Certainly, it

is the speech about satisfaction from spiritual famine But hension of the truth allows us also to overcome the physical fam-ine which is unavoidable for many people in society built on the interests

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compre-This book is not only about today’s economical and financial crisis The crisis is just an acute condition of the chronic illness which society suffers from since the times when the Christian civi-lization began transformation into the “money civilization.” And the transformation was not a “natural evolution.” The “money civi-lization” is not at all a product of “the objective laws of society’s development” (as the accepted textbooks) but a result of a “money revolution.” This money revolution caused and has been causing the conflict of interests and human passions, the subjective begin-ning of the “money revolution,” notably We have got used to the fact that revolutions are overturns happening immediately, almost

in 1 night (we could remember the events in Russia during the night on October 24–25, 1917) However, the “money revolution” is not only a political event which boils down to seizure of power by some people from others The “money revolution” is, first of all, a spiritual event occurring in the changing of consciousness and the system of the society’s values The money sphere is only an indica-tor fixing and reflecting all deep changes of society’s spiritual struc-ture During the “money revolution,” society is moving away from the Christian values and norms of life They are substituted by the values and norms of those forces which tried to go against Christ, who was crucified 2,000 years ago

In this book, we are trying to track a chain of these spiritual, litical, and financial transformations happening within the “perma-nent money revolution.” The important landmarks of this revolution concern legalization of the usury; normalization of the practice of

po-“partial reserving” (a variant of the banal coinage offence), creation

of banks (commercial and central) as key institutions of the

“mon-ey civilization,” establishing the stock exchanges executing mized robbery of people not less effective than banks, introducing (and then abolishing) the so-called gold standard, the “invention”

legiti-of different “financial instruments” (many legiti-of which are like ted cards or false brilliants), the transition of supplying money with such an “effective” means as aircraft carriers and bombers, the cre-ation of offshore banks and gradual transformations of the whole financial system into the “black economy,” and many others

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spot-The study of the “money civilization” history is necessary to get the hang of the simple and necessary truth: overcoming of eco-nomical and financial crises within the framework of the “money civilization” is impossible Not even the most refined reforms of the world’s financial system and national financial systems will save mankind or society’s spiritual renovation and understanding of theomachism and man-hating nature of the “money civilization.”The “money civilization” can be hidden by different masks Some of them have already discredited themselves For example, the mask of capitalism Obsolete masks are substituted for new ones, more harmonious and decent For example, the “Western civiliza-tion,” “democracy,” or the “market economy.” In particular, our politicians, scientists, clerics, and other worshippers of “Western civilization,” “democracy,” “human rights,” “liberty, equality, and fraternity,” etc., that come to Russia from there, have taken a fancy for the word collocation “market economy.” However, the “revolu-tionaries’ ears” stick out of the mask “market economy”; the “revo-lutionaries” are those usurers who managed to legalize the loan interest some hundreds of years ago

Running ahead, we shall formulate a series of mutually

connect-ed key theses (further, we are going to give some proof in details and add some others), revealing the essence of the “market economy”:

- the transformation of society into the “money civilization” has caused the natural death of the economy (realized as the eco-nomic activity pursuing the purpose of satisfaction of the hu-man needs); there has been an invisible mutation of the present (creative) economy into so-called market economy;

- the “market economy” is aimed for the production of goods and services meeting the human needs and redistribution of the current wealth;

- even manufacturing occurs in the “market economy”; it is ried out not for human needs satisfaction but for the redistribu-tion of the current wealth;

car if someone in the “market economy” gains something, another one loses the same;

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- in the long run, wealth is diminishing in the whole society, as everything is only redistributed and consumed but nothing is produced; a significant part of the present so-called manufac-turing does not increase society’s wealthy and, on the contrary, undermines it even more (exhausting of resources caused by gophering, environmental pollution, etc.);

- the purpose of so-called economic activity in the conditions

of the “market economy” (irrespective of the activity) is profit making;

- the profit is made as a result of nonequivalent exchange;

- the nonequivalent exchange (profit making) can be provided in two ways: а) force; b) fraud;

- accordingly, any profit is illegal as its making is a violation of the major religious commandments and moral norms; Proudhon2;

- the effectiveness of force as a way of nonequivalent exchange

2 Pierre Joseph Proudhon (1809–1865), a French socialist, theorist of anarchism, author

of works on philosophy and political economy The best-known works: What Is the Property? (1840; Rus tr., SPb., 1907) and System of Economical Conflicts, or Philosophy of Poverty (1846) It deals with the so-called social liquidation of the state The plain es-

sence is substitution of the state by contractual relations among separate people, munities, and groups of the manufacturers cooperating among themselves on the basis

com-of equivalent exchange He criticized the capitalist credit as the instrument com-of tion of society by the usurers and bankers According to Proudhon, the banks rob not only working people (hired workers) but the bourgeoisie engaged into the manage- ment of production Proudhon called for modifications, first of all, in the sphere of exchange and movement where the nonequivalent exchange dominated

exploita-In 1849, he attempted to create the National Bank which must have acted on other principles than general commercial banks (interest-free credit) The National Bank ex- ists no longer Proudhon negatively considered the idea of communism, the idea of vio- lent revolution, and other ideas of Karl Marx who was personally known to him Karl Marx, in turn, criticized Proudhon as a petty bourgeois socialist and opportunist in his

work Poverty of Philosophy (K Marx, F Engels Coll Works, 2 rev., volume 4) Proudhon,

during the period of the Second French Empire (Louie Napoleon dictatorship in 1851), criticized the Bonaparte regime for its support of bourgeoisie, bankers, and speculative

capitalists In his last work, On Political Capacities of Working Class (1865), Proudhon

de-veloped the program of so-called mutualism—liberation of the proletariat with the help

of manufacturing, credit, and consumer associations (cooperative societies) grounded

on the principles of mutual aid He called to develop an exchange on a moneyless basis, and also to use interest-free credits Socialists—Utopians S Sismondi, Ch Fourier, K Saint-Simon, exerted a great influence on the Proudhon’s views of formation In particular, Proudhon borrowed the idea of the major role of banks and credit in reforming society on the principles of equity from the last one

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significantly depends on the spiritual and psychological tion of those this force is aimed at (more often, the threatened use of force); exactly because those who count on the force ob-tain the maximal demoralization of the society which makes it weak against any pressure (not only physical);

condi the effectiveness of fraud as a way of nonequivalent exchange directly depends on the brains of those who are subject to such fraud; by virtue of it, those who use this way of profit making are extremely interested in the total moronity of the society;

- by the reasons mentioned above, those who tend to make a profit will do their best not to let people know what the real

“money civilization” (or “market economy,” etc.) is;

- the usurers have the greatest capacity to make a profit; i.e., those who engage in the money business (we will speak in more de-tail about the reasons of such capacities and ways of redistribu-tion of the wealth by the usurers for their benefit);

- by virtue of such a capacity, the wealthy are concentrated in the hands of the usurers while the other members of the society are subject to the “relative and absolute impoverishment,”3 accord-ing to the Marxism-Leninism classic;

- by virtue of the above mentioned wealth concentration, the usurers also seize unlimited power over mankind;

- the “money civilization” development threatens the existence

of all mankind (including usurers themselves)

Unfortunately, the reader will find no thesis of the above on pages of modern textbooks on economy, finances, social science, political science, and other public disciplines It is understandable why if every student understands the true character of the “market economy”; further, it will be extremely complicated for usurers and other capitalists to ensure a nonequivalent exchange based on the strength and fraud

The very desire of the author to contribute into the business

of “money counterrevolution” revealing the true character of the

3 The Marxism classic elevated this process of social-property polarization of ety to the rank of the law of the “market economy”—“the universal law of capitalist accumulation.”

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soci-“money civilization” motivated him to write this book The

“mon-ey counterrevolution” is not an appeal to the immediate and lent seizure of the power from those who seized it before, i.e., for the usurers The speech is about the difficult and long work to dis-assemble the “money civilization” and return to the grounds of the Christian civilization It is the only way to prevent the threat to society’s existence and to prolong the earth’s history of mankind And the last one Today, many interesting and serious orthodox books appear on the shelves of book shops on different aspects of the spiritual and everyday life Except for one major aspect—the economy—and this issue excites the orthodox people no less than all remaining

vio-Today, Catholics, Muslim, Jews, Protestants, Buddhists, and different sectarians write about the economy We are not going

to estimate the views of different religions of modern society It is important that they do not stand apart from these issues and ac-tively form their relations to the current realities of the economic life, their understanding of the theoretical economical system, their programmes to overcome the crisis and move to the ideal economy system

Unfortunately, the orthodox people are left behind in forming their position in this relevant sphere of life (and this sphere is not only material but spiritual) Recall that the previously mentioned

paper of A Notin has a subheading, Orthodox Views of the Global

Financial System The value of such a direction of thinking for the

modern Orthodoxy is difficult to overestimate In view of it, the author also considers this book as a contribution to the understand-ing of the global financial system from the position of the Orthodox man

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Part 1

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C h a p t e r 1

Crises: the Conventional explanations

NOT MANY PEOPLE correctly decrypt signals sent from above and called “crises.” These economic crises for the last 2 centuries surpris-ingly and periodically have been tormenting mankind Some people consider them as a variety of natural disasters like droughts or tsuna-mis At the same time, people often refuse to see man-made reasons

of the crises—the reasons conditioned, first of all, by change of sciousness of man, and then, his actions and behavior

con-A doctrine of William Jevons, the English economist, cian, and philosopher (1836–1882), is considered as an example of

statisti-such a natural-and-physical approach to the explanation of periodic

crises According to his opinion, the factor of the cyclical ment is a process connected to the movement of spots on the sun (that, which, in turn, influences the conditions of agriculture, fur-ther, the scientist states, arranges a chain of cause-effect relations which explained the changes of all sides of society’s life)

develop-By the way, Alexander Chizhevsky (1897–1964), our tic scientist, is well-known in Russia as one of the representatives

domes-of this approach Moreover, he was not an economist but a physicist According to Chizhevsly, the solar activity has a definite amplitude of oscillations meeting about the 11-year amplitude of oscillations of the industry

bio-The subjective-psychological approach is not less popular

dur-ing the last 2 centuries The point is, the factor of all changes in the economy are the changes in the mood of a man (optimism,

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despondency, disappointment, panic, etc.)

For example, Arthur Pigou (1877–1959), the English economist, believed that the crisis was caused by the “mistakes of optimism” accumulation Pigou explained those ideas in 1929 in his work

Industrial Fluctuations

John Keynes (1883–1946), a noted English economist, also saw a repetition of the economy development in the changes of psychologi-cal moods of people and used such concepts, although having little

in common, with the exact science ideas as “inclination for savings,”

“inclination to investment,” etc Keynes’s “Psychologism” is reviewed

in relief in his major work General Theory of Seizure, Interest and Money The reasons of demographic order are often called the reasons of the

crisis of overproduction The logic of the reasoning of “demographic determinists” is: production of goods (service) grows until the demand saturation in the market of the given goods (service) The market ca-pacitance, according to them, is specified, first of all, by the population

of the country However, the given reasoning explains nothing First, because it can help to explain only the stoppage of further growth of production but not its fall and cycling progression Second, because

it is absolutely not clear why we need the permanent growth of the economy if all needs of society in the goods and services are satisfied Basically, the production should grow in the economy with saturated demand, but it should meet demographic growth but no more

Analysis of tendencies of the economic growth and graphic processes demonstrates that the paces of the increment of gross income for the twenthieth century as a whole over the world

demo-is approximately by an order higher than the rate of the population increase It proves only that the economic dynamics (at least in the modern economy) is not determined by the demography Such a rapid development of the economy in the twenthieth century dif-fers from a medieval society where the demography and economy had very similar trajectories

Probably it is possible and necessary to study the links between the economy dynamics and demographic tendencies, but that should mean that а) the economical dynamics and demographic tenden-cies can have even different directions (for example, the economical

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recession can occur in the conditions of the rapid growth of the ulation); b) in the link “economy–demography,” the business cycle is primary, and the demographic processes are secondary; the econo-

pop-my dynamics is derivative (but not on the contrary) Particularly, the economy recession causes unfavorable demographic processes; the economy expansion improves the demographic processes

By one word, explaining the economy cycle by changes in the demography, the “demographic determinists” confuse a cause and effect

A large group of economists consider crises as an inadvertent

“payment” for the engineering and economic progress of mankind The cyclicity is put in the development of the science, engineering,

productive strengths It is so-called a technocratic approach

The technocratic ideas about the crises nature prevail among modern economists For example, the theory of “wave develop-ment of the economy” of Nikolai Kondratiev (1892–1938), our lo-cal economist, is very popular So-called Kondratiev’s long waves are explained by a certain mysterious mechanism of development

of science and technology Periodically (once 50–60 years), there are discoveries causing the revolutionary changes in the engineer-ing and all productive strengths of society However, similar ideas were popular in the nineteenth century when the West faced the first crises of overproduction Here we can remember the theory of “the economy cyclical development” by Karl Marx (1818–1883) The older and middle generations remember this theory very well due to capi-talism political economy textbooks The length of Marx’s “cycles” is much shorter than the length of the Kondratiev’s “cycles.”

In the West, the works of Josef Schumpeter (1883–1950), the Austrian economist, are widely known among the works on the explanation of the economy cyclical development First of all, it is

the work published in 1939 Business Cycles 4

4 This work has not been translated into Russian Partly, the ideas of the work are explained

in other books of J Schumpeter which were issued in Russian: 1) Theory of Economical Development (study of the enterprise profit, capital, interest, and cycle of conjuncture, (M.: Progress, 1982); 2) Capitalism, Socialism and Democracy (M.: Economica, 1995); 3) History

of the Economical Analysis In 3 volumes (SPb.: Economical school, 2004); 4) Theory of Economical Development Capitalism, Socialism and Democracy (M.: Eksmo, 2007)

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All technocratic theories, despite differences in the language used, cycle length estimation, amount of the cycle phases, and some other parts are similar in principle Their authors turn the reasons of the economy cyclical development (and accordingly, the crises periodicity) to the “technological advances,” more exactly to the cyclicity of processes of displacement of the capital funds with a new engineering basis By different variations, the authors of simi-lar theories mark out the following phases of the cycle:

1) booming of the production based on new technologies and large-scale investments in the “locomotive” industries;

2) the market expansion and heightening the effective demand in all industries (the money resources from the “locomotive” in-dustries spread all over the economy);

3) the multiplicative increase in all industries at the expense of creasing aggregate effective demands;

in-4) the exhaustion of the multiplicative effect and the production decrease (crisis of overproduction, recession) with all the conse-quences (difficulty in sales of products,f business bankruptcy, redundancy, landslide of prices for the goods and assets, etc.)

The “technocrats” like Kondratiev have little concern for the anthropological, social, and political aspects of the economical activity, and their logical structure is like astrological or cabba-listic sketches Such authors, voluntarily or not, attribute some mystical properties of the “cyclical,” “wave,” “and spiral” devel-opment to the science, engineering, productive forces as though the speech is about sunrises and sunsets or season changes This mysticism resembles pantheism—a philosophy and religious conception of the existence of a certain impersonal God identi-fied with nature

The paradox is in the fact that before mankind transferring to the capitalist civilization, the economy really had a seasonal nature

of progressing since it was predominantly agrarian But in that economy there were no cyclical crises of overproduction (rather the crises of underproduction as a result of droughts and other natural

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disasters) In the capitalist civilization, man’s labor activity was concentrated in the industry; i.e., it got significantly rid of influenc-ing the seasonal factors However, since that very time, society has experienced the cyclical crises in the economy, and with surprising periodicity.

For the “professional” economists following different proaches to the explanation of crises (technocratic, subjec-tive, psychological, monetaristic, etc.), the moral and spiritual measuring of the economic life appear beyond their theories Accordingly, the “constructive” proposals of such “profession-als” are combined to correct the current (capitalist) model, not touching the spiritual and moral foundation of society For ex-ample, to boost or, on the contrary, to loosen, the state regula-tion of the economic activity Or to correct the money policy by means of an increase of money supply (or, on the contrary, to withdraw a part of money from its movement) Or to substitute paper money for gold (metal) And so on However, such “cos-metic” measures can just soften the crises at best A bit later, the economy illnesses return even more acute The symptoms are very different and are called by different names: inflation

ap-or disinflation, unemployment, overproduction ap-or tion, recession, depression, stagnation, stagflation, bankruptcy, bank panic, default, etc

undeproduc-The return of illnesses under their different names means that the diagnosis and the methods of treatment have been specified incorrectly

Cited Literature to Chapter 1

1 Kondratiev, N D Economic dynamics problems M.(Moscow):

Economics, 1989 Н.Д.Кондратьев Проблемы экономической динамики М.: Экономика, 1989

2 Jevons, W Political Economy SPb (Saint-Petersburg), 1905 В

Джевонс Политическая экономия СПб., 1905

3 Hansen, E Economic Cycles and National Income Translated

from English М., 1959 Э.Хансен Экономические циклы и национальный доход Пер с англ М., 1959

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4 Haperber, G Prosperity and Depression Translated from English

М., 1960 Г.Хапербер Процветание и депрессия Пер с англ М., 1960

5 Chizhevsky, A L The Terrestrial Echo of Solar Storms М., 1976

А.Л.Чижевский Земное эхо солнечных бурь М., 1976

6 Keynes, J M The General Theory of Employment, Interest and

Money M.: Gelios АРВ, 2002 Дж М Кейнс Общая теория

занятости, процента и денег М Гелиос АРВ, 2002

7 Schumpeter, J The Theory of Economic Development Capitalism,

Socialism and Democracy Translated from English The

fore-word by V S Avtonomov M.: Eksmo, 2007 Й Шумпетер

Теория экономического развития Капитализм, социализм

и демократия Пер с англ Предисловие В.С.Автономова М.: ЭКСМО, 2007

8 Grinin, L E., and A V Korotaev Global Crisis in Retrospective

Short History of Revivals and Crises from Lycurgus to Alan Greenspan

M.: Book House Librokom, 2010 Л.Е Гринин, А В Коротаев Глобальный кризис в ретроспективе Краткая история подъемов и кризисов от Ликурга до Алана Гринспена М.: Книжный дом «ЛИБРОКОМ», 2010

9 Anikin, A V The History of Financial Perturbations The Russian

crisis in the light of global experience 2nd augmented edition

M.: ZAO Olympus-Business, 2002 А В Аникин История финансовых потрясений Российский кризис в свете мирового опыта 2-е изд., дополненное и переработанное М.: ЗАО «Олимп-Бизнес», 2002

10 Mendelson, L A The Theory and History of Economic Crises and

Cycles vol 1–3 M.: Socekgiz; Mysl, 1959–1964 Л.А Мендельсон

Теория и история экономических кризисов и циклов Т 1–3 М.: Соцэкгиз; Мысль, 1959–1964

11 Varga, E S Economic Crises M.: Nauka, 1974 Е С Варга

Экономические кризисы М.: Наука, 1974

12 Tugan-Baranovsky, M I Periodic Industrial Crises SPb.: Popova

Partnership, 1914 М И Туган-Барановский Периодические промышленные кризисы СПб.: Товарищество Поповой, 1914

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