In September 2008, the banking crisis was getting out of hand. Things were falling apart. It seemed as if the financial system could collapse at any moment and that civilisation, as we know it, would end. Today, the 2008 financial crisis is a distant memory, but at the time, not only did the financial press worry. Panic was setting in. It was like 1929. I had long feared an apocalyptic financial collapse and believed that usury, or charging interest on money and debts, would be the underlying cause. On the surface, the cause may appear irresponsible lending, but interest is a reward for the risk of default. Without interest charges on debts, there would be no irresponsible lending.
The events prompted me to watch the animated picture ‘Money as Debt’ on YouTube and reflect once again on Silvio Gesell’s ideas about charging a holding fee on money and using it to eliminate interest charges. I penned down my thoughts about interest-free money with a holding fee, and tried to make an ordered, coherent whole of them. The idea had never seemed workable. Why should you lend out money interest-free if you can receive interest elsewhere? It is why economists didn’t look into it more seriously and why interest-free money remained a fringe idea, mainly attracting eccentrics like me.
Then, in the first days of October, I made a startling discovery. Banning interest promotes financial stability by preventing usurious lending, irresponsible lending, and unproductive financial schemes. That would improve the economy. Think of it like so. When credit card debt and payday lending at high interest rates disappear, people will have more disposable income, and you will have no usurers living off the work of others. That would be more efficient. It also reduces the need for government and central bank interventions to manage the interest-bearing debt. Usury requires government deficits and the creation of money by central banks.
That is because most of our money is debt. If you go to a bank and take out a loan, the bank creates money out of thin air, but you must pay back the loan with interest. You repay the loan with money borrowed by someone else. And the money you need to pay the interest doesn’t exist. Someone else must borrow that as well. On a larger scale, due to interest charges, we need to add extra debt to pay off existing debts with interest. To prevent the usury scheme from collapsing, governments run deficits and central banks print money, which leads to inflation. The inflation rate is often higher than the interest rate you get on a bank account. The profits are for the bankers, who receive huge bonuses.
Now comes the explosive discovery. The economy would do better without usury. If the economy performs better, the yield on investments would be higher, so an investor would receive better returns with negative interest rates. The difference comes from inflation. Without interest charges, there is no need for government deficits and money printing. The economy can thrive without more debt, so there would be no inflation. During the Great Depression, the Austrian town of Wörgl issued a currency with a holding fee. Those holding the money had to pay a 1% monthly fee to keep the money valid, so they would spend it rather than save it. And so, the money kept circulating, and Wörgl’s economy boomed while Austria suffered from the depression.
And so I figured that if the money is interest-free, the currency’s value rises more than the interest you would receive on an interest-bearing currency. Think of it like so. You can have 2% interest with 5% inflation or -2% interest with 0% inflation. The latter would be a better deal. The question then becomes, why lend out money with interest when interest-free money offers better returns? If the idea is that good, and the ‘Miracle of Wörgl’ suggests so, investors would bring their money to the interest-free economy, and the usury economy would collapse. If this became more widely known, the idea would spread and terminate the usury financial system forever.
Until then, I had always believed that interest-free money was sound in theory, but impossible in reality, because rather than good intentions, efficiency drives changes in this world, which is also the reason why we are doomed. The only constant in history is the strong killing the weak. But this money could be the terminator of usury, and a better future for humankind suddenly seemed possible. An incredible power seemed to lurk behind it. And making this knowledge public, I speculated, could unleash an unspeakable force. The Austrian central bank banned the Wörgl money, so we don’t know how it would have ended if it had continued. Perhaps, we would have lived in an entirely different world. A similar type of money lasted for over a thousand years in ancient Egypt. Had I discovered the secret that explains these successes?
That gave me serious doubts. How could the experts have missed it? I was an amateur. And amateurs who think they know better than the experts have become a plague recently. ‘Think for yourself and do your own research,’ has become the motto of a growing squad of nutters that the Dutch would call Wappies. ‘If it snows, that proves climate change is a hoax.’ You know the type. Everyone can gather random posts and articles from the Internet and create their own version of the truth out of thin air. I was anxious about getting it wrong, which made me doubt the greatness of the discovery. It might be a good idea, but it can’t be that good. And that is correct, a decade of research later confirmed, but it is possible nonetheless. And the proof also came as we have seen negative interest rates in the next decade.
Then, on a website promoting Gesell’s ideas, I found the following quotes,
‘The creation of money that cannot be hoarded will lead to a different and more real kind of property.’
– Albert Einstein
‘Gesell’s name will be a leading name in history once it has been disentangled.’
– H.G. Wells
‘The application of Gesell’s principle of circulation of money will lead the nation out of the depression within two to three weeks. I am a humble student of this German-Argentine businessman.’
– Irving Fisher
‘The future will learn more from the spirit of Gesell than from that of Marx.’
– John Maynard Keynes
‘Gesell’s work will initiate a new epoch in the history of mankind.’
– Prof. Dr. B. Uhlemayr
‘Gesell’s discoveries and proposals are of the greatest importance for centuries to come.’
– Dr. Theophil Christen
These brilliant minds agreed that something epic lay beneath the surface and that it could change the future forever. John Maynard Keynes and Irving Fisher were among the greatest economists of their time. If Keynes believed Gesell would make us forget Marx, I might have found out why. And so, the Miracle of Wörgl and the grain money in ancient Egypt may not have been freak accidents but a sign of something more. Ending usury, the scourge that had haunted humankind for thousands of years, seemed within reach. While considering the implications, the following song played on the radio,
Summer has come and passed
The innocent can never last
Wake me up when September ends
Like my father’s come to pass
Twenty years have gone so fast
Wake me up when September ends– Green Day, Wake me up when September ends
September had just ended. Silvio Gesell first proposed money with a holding fee in his book ‘Natural Economic Order,’ which he first published in German in 1916 as ‘Natürliche Wirtschaftsordnung.’ I figured that its abbreviation could be NWO, which stands for New World Order, not knowing that the German ‘Wirtschaftsordnung’ was, unlike in English and Dutch, one word. So, was my discovery meant to happen? Was it part of something bigger? These thoughts arose, ironically, because I didn’t see ‘Wirtschaftsordnung’ as a single word. It made me feel small and insignificant. Paranoia was creeping in.
What is less known, but definitely worth noting, is that the German Nazis also aimed to abolish interest and contemplated Gesell’s ideas. Gesell himself was not a Nazi, but a liberal and an internationalist. Adolf Hitler was more impressed by the ideas of Gottfried Feder, who had the same kind of moustache Hitler had. Feder had written ‘The Manifesto for the Abolition of Interest-Slavery’ around the same time Gesell wrote ‘The Natural Economic Order’ and proposed nationalising all banks and abolishing interest. Gesell argued for charging a holding fee on currency and not interfering with markets and banks.
I named the discovery Natural Money as a reference to the Natural Economic Order. Strange things began to happen. When I woke up at night, the clock always showed times like 2:22, 4:44 or 5:55, with no exception. That was creepy. Something seemed seriously off with reality. Then, my wife told me she was seeing those time prompts as well. Until then, I hadn’t told her that I was seeing them. Once you enter the Twilight Zone, it begins to affect you. Meaningful coincidences started to occur, making me open to suggestions. What happened around me and in the world seemed to interact with my thoughts. Even the covers and titles of the books in the bookshop at the train station in Leeuwarden radiated a sense of spookiness, with references to my situation. They call it synchronicity.
The animated picture Money as Debt started with a list of assassinated US Presidents who supposedly opposed the banking system, suggesting evil bankers were behind these assassinations, making me fear death under suspicious circumstances if Natural Money would get serious attention. Still, if a repetition of the miracle of Wörgl were to occur, the news would spread fast, and if it were that good, it would be impossible to stop. Killing me wouldn’t help. The Secret Service would be too late. Of course, I had worried far too much. I posted the idea on several message boards. Most people didn’t get it. I mailed the findings to 200 Dutch economic researchers. None of them was interested.
Natural Money had a more favourable reception on the message board of Opednews.com. It generated some discussion as some visitors saw the potential. Still, it didn’t lead to a further propagation of the idea. I also went to Strohalm’s office in Utrecht. They had been working on interest-free currencies for decades. The people of Strohalm received me politely, but they had other priorities. They had a promising project in Uruguay. Doubt crept in again. I didn’t know enough about monetary economics and the financial system to see whether it was an idea worth pursuing. And even if I was right, no one would listen, so I planned to give up and resume my life.
It was disappointing, but not as bad as being evicted from the dormitory by A* nineteen years earlier. To remind myself of that and make me feel better, I played the Sleepwalking album by Gerry Rafferty, the album I had come to associate with the events at the dormitory because of the lyrics of the first song, ‘Sleepwalking.’ And then I wondered whether A* had something to do with the discovery of Natural Money. Over the years, several incidents had occurred, suggesting that She was still interfering with my life. It didn’t take long before clues came up. There is a thin line between paranoia and psychosis. The lyrics of the fourth song of the album ‘On The Way’ were noteworthy,
Drifting along with the wind, telling yourself you can’t win
It’s over, and now we begin, oh yeah, we are on the way
…
Only one woman, one man, just doing the best that we can
There’s so much we don’t understand,
Oh yeah, but we’re on the way
Light shining down from the east,
bringing a love that won’t cease– Gerry Raffery, On The Way
In my bed, I was imagining again. By giving up, I had just told myself I couldn’t win. Was this just the beginning? The beginning of what? What did I not understand? What was this love that won’t cease? Was my destiny connected with that of A*? I had loved Her in secret all that time, but never thought, or even hoped, that we could be together. The distinction between my make-believe world and reality, which had been there since I was a child, began to blur. The lyric wasn’t specific, so the suggestion came from me linking the album to the events in the dormitory. And I might still have ignored it if it weren’t for the fifth song,
People come and people go, friends, they disappear
There’s only one thing that I wanna know, tell me where do we go from here
Everybody’s on the make, everybody’s trying to get ahead
In a world like this, you just exist to feed the walking dead.
…
Lookin’ out on a world gone crazy, waitin’ for the fun to begin
The race is on, yeah, they’re gettin’ ready, Jesus, what a state we’re in
Meanwhile, down in my backyard, I’m sitting doing solitary
Now that I’ve milked the sacred cow, I just worry ’bout the military.
…
Get ready
Get ready– Gerry Raffery, Sleepwalking
It is a strange lyric, and it made me think. Is the world about to go crazy, and is something about to start? We exist to feed the walking dead, which could be the defunct banking system, I reasoned. The phrase probably refers to what Karl Marx once wrote, ‘Capital is dead labour, that, vampire-like, only lives by sucking living labour, and lives the more, the more labour it sucks.’ I didn’t know that, so I made up my own interpretation. The sacred cow made me think of Joseph explaining the Pharaoh’s dreams, which is also not so obvious. Now, the story originates from a holy book, and one of the Pharaoh’s dreams involved cows, so that was the connection. Joseph introduced the granaries in Egypt, the story goes. Grain stored in these granaries became the basis of the Egyptian grain money, which, like Natural Money, had a holding fee to cover the storage costs.
These are some incredible leaps of thought that you wouldn’t make if you aren’t psychotic, so by then, I had crossed that line. Sleepwalking was the only album Gerry Rafferty had recorded outside the United Kingdom, and it was in the Netherlands, where I was living at the time. That was not a coincidence, I supposed, and I was right about that at least as it turned out. I had grown open to suggestions. Natural Money could change the world, some of the most brilliant minds had agreed on, and it was something epic, and it had to do with A*. And so, I was well on my way towards the shadow world where I was about to meet A* again after nineteen years. That evening, I felt A * trying to do a mind melt with me, like the Vulcans do in Star Trek, once again. This time, I didn’t resist. And there She was, on the other side. It seemed like a telepathic connection. By then, it was 11 November 2008.
Latest revision: 25 September 2025
Featured image: 1919 Cover of The Natural Economic Order. Wikimedia Commons.
The Plan For The Future 