Daniele Pace (Rome – Italy, 27 July 1973) is an independent
researcher and writer who devoted his last years to the study of the
monetary system. Resident in the UK he has teamed up with some
cultural associations for the circulation of discoveries on currency
embracing what are the theories of Professor Auriti and furthering
the work of various researchers around the world as Ben Dyson of
Positive Money, Bill Still, Paul Grignon and others. In England he
has translated the work of Auriti “Il paese dell'utopia” with the
title "The Utopian Country" to present him to the
Anglo-Saxon public. In November 2012 he published his first book,
"The Utopian Money", where after describing the history of
money over the millennia, has divulged the knowledge on the current
banking system. In "The Utopia Money" the author has
deepened so the theories of Professor Auriti then analysed the
original idea of self-credit by Paul Grignon. Finally, applying
Auriti, he has created a totally self-issued currency to eliminate
the banking system and free the world from usury. In September 2013
he founded the School of Legal and Monetary Studies - Giacinto
Auriti, for the information and teaching of popular ownership of
money and its induced value. In the summer of 2013
he participated in various radio shows and later was a guest of the
Festival of Antropocrazy in Montegrotto, and other conferences on
money.
2014 was a busy year for many conferences across Italy, from Tuscany
to the Marches, from Abruzzo to Campania, with invitations also to TV
and radio stations, particularly Radio Gamma 5 and Canale Italia in
Padova. Since the summer of the same year also the popular comic book
"Dialogues with Auriti", with the main concepts of the
theory of induced value and popular ownership of money.
Since February 2015 began a weekly column titled "What is money"
on Salvo Mandarà channel to explain the whole history of money, and
in March he released his third book, "The Fruiterer Conspiracy"
where, criticizing the dogma that sees an increase in the money
supply contribute to inflation, he has analysed the Fisher equation
to develop a new approach to the problem, multidisciplinary, logical
and sociological with the theorem of the pre-existence of values in
the factors of the equation.
Also in March 2015 he has left the School of Legal and Monetary
Studies - Giacinto Auriti to devote himself to new projects more
productive, funding the Auritian Monetary Academy.
The Auritian inspiration
Daniele Pace is inspired in his research by Professor Giacinto Auriti
of University of Teramo, fully endorsing the legal concept of
currency that led to the formulation of the theory of the induced
value and the ownership of the bearer, but distinguishing some
statements secondary to the legal structure, concerning the economic
and banking technicalities. Indeed, he has formulated in "The
Fruiterer Conspiracy" a different approach to the matter of
inflation and in the description on the operation of the banking
system in relation to the issue of money where is placed very close
to the research of Ben Dyson for the English Positive Money.
He then led the British research within the School of Legal and
Monetary Studies for which he has been the inspiration before leaving
it in 2015 to the changed inner balance.
Daniele Pace has nevertheless had the merit of having revived the
Auritian thought in a time of great confusion because of the various
movements for economic proposals born from the global crisis,
pointing and improving some gaps left by the professor of Teramo, as
a presentation more detailed from a technical point of view on the
creation of public and private debt.
In particular Auriti always referred, in his dissertation, the
central bank in charge of the public debt, while Pace has proposed
the most advanced research and detailed without detracting instead to
the legal basis of the popular ownership of money and induced value,
which are so emerged stronger from this.
The credit and sources
According to his English experience, Pace has revived in Italy the
pursuit of Positive Money London updating what are the knowledge and
differentiating them from the thinking of monetary movements No Euro
altogether. This has shifted the focus on the supply of credit by
commercial banks and the resulting money creation out of nothing,
with sources from Great Britain and Switzerland reported in his book
"The Utopian Money" then became aware of the internet
public in Italy. In particular the reference to the articles of the
Financial Times[1] and The Guardian[2],
and web pages of the Swiss National Bank[3] and to
the bulletin of the Bank of England[4] in 2007.
Recalling that the credit today is the 97% of the money in existence
and that the role of central banks is very different from what it is
implied in the movements No Euro, Pace placed emphasis on the system
of money creation, which would remain unchanged even in the event of
a return to the national currencies in the Euro-zone.
The criticism to the sovranisti
The thoughts expressed above regarding the return to the lira and the
movements No Euro was expressed in his article "Diego Fusaro
and the Chinicization of sovranisti"[5]
which highlights not only the ineffectiveness of a simple exit from
the euro on the national debt, but especially the continuation with
the current system of exponential growth in economy, depauperising
for the nations, and accompanied by the erosion of wages and workers'
rights, since labour is the only factor in the production process
that can be affected by cost reduction.
But the fierce criticism to the anti Euro is not a defence of the
Euro, but the simple verification of the marginalization of an exit
from the single currency without a radical change in monetary
creation as debt and the financing of States through government bonds
which monetize that debt. Of course the solution for Pace is creating
state money and the redistribution without the loan at the origin of
the entire money supply. In this Pace he means by the word Sovranisti
the proponents of false monetary sovereignty that the exit from the
Euro is for him, indicating the real sovereignty in the production of
free government money.
The criticism on MMT
In another article, “MMT: the banker who would save us from the
banks”[6], Pace expressed much criticism of
the Modern Monetary Theory on many points. First he highlighted the
conflict of interest between the banker Mosler who financing the
economists of MMT and a monetary reform in which as a shareholder of
a bank he is directly involved. According to Pace in fact, the MMT is
for this polluted both in the explication of the system that in the
solution to the problem.
The writer, as highlighted in the article concerning the Sovranisti
and in numerous conferences, has repeatedly criticized the term
sovereign currency both in the meaning that in the alleged
difference with the Euro, on the basis of what is the operation of
the monetary system in the countries outside the single currency,
almost exactly the Euro-zone, taking concrete examples from his own
country of residence.
The criticism then moves on abuse of semantics in MMT, and the
technical aspects that, according to Pace, would favour the banking
system without affecting the power, bringing the state to identify
even more closely with the Auritian legal ghost.
The Utopian Money
The Utopian Money[7] (self-produced in 2012,
subtitle Abolish the banking system with the self-issued money) is
the first book of Daniele Pace in which collects all his studies on
the money to project in a solution, or to use his words, a futuristic
vision of money with self-monetary emission without the need for
a central authority and a banking system that would be abolished and
replaced with an entirely computerise new system in which all
economic and not it will self-produce the measure of their wealth.
The book, developed in nearly 500 pages, it is a travel through the
history of the currency as Pace believes it is essential for the
understanding of the current monetary system and its futuristic
vision, the knowledge of historical developments related to money.
The work in fact it develops into five books, each devoted to a
particular section: after an introduction on the mechanisms for the
construction of reality, the first book describes the whole history
of money, from his birth until after World War II; the second book is
instead centred on the current monetary system and all its nuances on
society; in the third book Pace begins the adventure towards the
self-issued money by introducing and expanding the legal monetary
thought of Professor Giacinto Auriti of University of Teramo, who
died in 2006; the fourth book is a description of the proposed
self-credit by Paul Grignon[8], the Digital
Coin[9], which Pace considers however incomplete
and impractical in the technical basis and in particular in the
theoretical and legal, but as inspiration for its proposal; the fifth
book, taking the proposal of Grignon, revolutionise it and applies to
it the Auritian legal concepts to reach a monetary system totally
self-issued to replace and abolish the current system of creation by
the banking sector, both the commercial than the central.
The fifth book is thus performed in two parts, the first theoretical
and the second technique. In the first theoretical part the Pace's
thought, resuming Auriti, expresses the overcoming of the concept on
surplus value thanks to the induced value and above all self-induced
emission of wages by workers that would avoid the conflict of social
class in economic production. Here are also shown the benefits of the
system self-issued in five macro-system: industies, labour,
production, state and economy, with major social and ecological
implications, described already long the work and also in the chapter
“Work and society: paradigm shift”,
where he indicate very reduced working hours, production ethical and
direct social participation.
The theoretical subjects are then developed in the technical part,
where such social participation is realized in the ability for
citizens to block monetary emissions that are harmful to the
community.
Pace structure a system that allows full control on monetary matters
while maintains the autonomy, independence and self-production, with
three different types of availability to spending and the possibility
to refuse of acceptance for ethical reasons individually through
their identification codes for each monetary unit. The system also
allows the issuance of mortgages and loans with the promise of
destruction instalment for accountability of the use of money. The
book, very structured but easy to understand, also provides
auto-emission of pensions, subsidies and compensation for the
self-employed, solving problems related to the health insurance of
the weaker social classes.
Overall, the book contains very innovative solutions set out in
simple language understandable but not without a thorough
understanding of offering the first three books.
Dialogues with Auriti
Dialogues with Auriti[10] (self-produced in 2014)
is the second work of Daniel Peace, in collaboration with the drawer
Sandra Internullo. It is a comic book that describes the theory of
Professor Auriti with a series of dialogues between imaginary people,
two ordinary persons, the one, Daniel, who knows about the creation
and the value of the currency, and the other, Mario, completely in
the dark about the subjects and troubled because of economic reasons.
In the dialogues, easy to understand, it will appear to Mario the
Professor Auriti, in a dream, to explain his theories and turn the
boy from depressed person in combative and proud popularizer of money
debt-free, issued for social welfare.
The comic aims to be directed to those not already aware in this
matter and represents a first information and a stimulus for the
deepening of the monetary issue.
The Fruiterer Conspiracy
The Fruiterer
Conspiracy[11] (self-produced in 2015,
subtitled: Money and inflation) is the third book of Daniele Pace in
which the writer and researcher addresses the matter on inflation and
especially the dogma of the Quantitative Theory of money, recovering,
expanding and completing the concepts already outlined in The Utopian
Money. The book deals with the issue of the increase of monetary
aggregates related to inflation with a fresh approach after briefly
traced the history of theory and debate this aroused among academics,
not all agree on its validity.
Daniele Pace theorizes in this book the theorem of the
pre-existence of values in the equation of Fisher, to be
included as a constant in the equation itself as decided in value in
a Field of behaviour by manufacturers and
retailers that is temporally prior to the equation. The author poses
as the basis for his theorem three absurd logic as a hypothesis in
which the Fisher equation would achieve the paradox of a money with
autonomous behaviour where the economic entities, whose in reality
and experience decide the prices, they would have no opportunity to
intervene or materialize the Conspiracy of the fruiterer, a strategic
alliance to carve up the monetary aggregates. An absurd logic indeed,
highlighted by Pace who then turns his interest in the behavioural
field where really is decided the value of price.
Many economists offer a different interpretation of the Fisher
equation talking about the relationship of identity between the
members that would be indicated by the famous economist. But for Pace
there is not only a relationship of identity to highlight
inconsistencies, but also a logical theorem that part of the three
absurd, key hypothesis, which would affirm the Fisher equation, to
get to the thesis and prove the pre-existence of values and
then their inclusion as constants in the equation.
Pace puts these three absurd in the Fisher equation as a hypothesis:
1. The central bank and the banking system would decide and would
communicate the prices of goods and services.
2. The prices would self-adjust or update without the knowledge of
producers / retailers.
3. There would be the "the Fruiterer Conspiracy", where
manufacturers and traders, experts in monetary matters, without the
knowledge of consumers, conspire to divide the monetary
aggregates.[12]
It is quite clear that neither of these absurd could be true, and
that therefore the Fisher equation does not stand up logically when
you try to use it to justify the price increase.
In fact, not only this cause for inflation this has never been
proven, but were also turned the debates among economists who saw
this theory as totally wrong.
The conclusion by Daniele Pace is the “not validity” of the
Fisher equation as a factor predictive and correctness for the states
to create money in abundance without fear of creating inflation. In
this way the researcher disrupts the dogma that do not want allow the
States to have their own monetary policy.
Innovative ideas and new vision
Daniele Pace, as can be inferred from his books, presents many
innovative ideas although rarely reported in the conferences in which
he is called because he believes his vision too original today, when
citizens are still not informed on the current monetary system. Of
anarchist ideology, Daniele Pace believes that a monetary revolution
in the Auritian sense can also bring along a positive cultural and
social revolution, once you understand the true nature and function
of money.
According to the writer, the elimination of debt and interest at the
origin of the money, with it also would eliminate the exponential
economic growth and lead to a strong reduction in working hours for
the same wage for citizens. The economy would be restored to its
proper size necessary for society, and not in surplus, identified as
the exclusive need of the elite to maintain power through blackmail
on disproportionate wage and employment in productive activities.
Notes
[1] The Fed is right to turn the tap - Financial Times
November 9, 2010
(http://www.ft.com/cms/s/0/93c4e11e-ec39-11df-9e11-00144feab49a.html#axzz3abmistvx)
[2] Money Has Been privatised by stealth - The Guardian
November 15, 2011
(http://www.theguardian.com/commentisfree/2011/nov/15/money-privatised-stealth)
[3] How banks increase the money supply - Swiss Central Bank
(http://www.snb.ch/e/welt/portrait/banks/4.html)
[4] Quarterly Bulletin Bank of England 2007
(http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/qb0703.pdf)
[5] Diego Fusaro and the Chinicization of Sovranisti - Daniele
Pace April 7, 2014
(http://danielepaceblog.blogspot.co.uk/2014/04/diego-fusaro-e-la-cinesizzazione-dei.html)
[6] MMT: the banker who would save us from the banks - Daniele
Pace 28 June 2013
(http://danielepaceblog.blogspot.co.uk/2014/02/di-daniele-pace-premessa-quando-alcuni.html)
[7] The Utopian Money - 2012
(http://danielepacebloguk.blogspot.co.uk/p/my-books.html)
[8] Paul Grignon (http://en.wikipedia.org/wiki/Money_as_Debt)
[9] Digital Coin (https://www.youtube.com/watch?v=XyWfUqEyIZc)
[10] Dialogues with Auritu - 2014
(http://danielepaceblog.blogspot.co.uk/2014/09/e-uscito-dialoghi-con-auriti-il-fumetto.html)
[11] The Fruiterer Conspiracy - 2015
(http://danielepacebloguk.blogspot.co.uk/p/my-books.html)
Bibliography
The Utopian Money - 2012
(http://danielepacebloguk.blogspot.co.uk/p/my-books.html)
Dialogues with Auritu - 2014
(http://danielepaceblog.blogspot.co.uk/2014/09/e-uscito-dialoghi-con-auriti-il-fumetto.html)
The Fruiterer Conspiracy - 2015
(http://danielepacebloguk.blogspot.co.uk/p/my-books.html)
External links
The blog of Daniel Pace (http://danielepaceblog.blogspot.co.uk/)
Presentation of the book The Fruiterer Conspiracy
(http://salvo5puntozero.tv/intervista-con-daniele-pace-presentazione-del-libro-il-complotto-del-fruttivendolo-30042015/)
Speech at Westminster University - Conference ABC Economiscs
(https://www.youtube.com/watch?v=A08w6c0BowA)
No-euro, compared theories: Pace, Borghi, Fusaro, Di Sabatino
(https://www.youtube.com/watch?v=8Ie1m7CDYc0)
Speech at the Antropocracy festival
(https://www.youtube.com/watch?v=IoOI8Ap9HGE)
Speech at Canale Italia (https://www.youtube.com/watch?v=IoOI8Ap9HGE)
Meeting with students (https://www.youtube.com/watch?v=0p1vmtPL8LM)
Conference Pace, Galloni, Rinaldi, Romano
(https://www.youtube.com/watch?v=8eqUQrx9IHI)
The youtube channel (https://www.youtube.com/user/poldosaura/videos)
The first episode of the "What the money - the birth of the
currency" (https://www.youtube.com/watch?v=L7exsOaX2No)
"What the money - Daniele Pace - Point" on
Salvo5puntozeroTV
(http://salvo5puntozero.tv/category/gli-spazi-autogestiti-su-salvo5puntozero/cose-il-denaro/)
What is money - excerpt interview RadioGamma5
(https://www.youtube.com/watch?v=aWWPCl_cEx0)
The Utopian Money - INTERVIEW
(https://www.youtube.com/watch?v=4EnKj5A59bE)
Speech at the conference of Montegranaro
(https://www.youtube.com/watch?v=ehyvhPJildI)
Intervention for The Thing
(https://www.youtube.com/watch?v=C-Tb1__Rgek)
Interview presentation for Dialogues with Auriti
(https://www.youtube.com/watch?v=tfHDcXdjcNg)
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