We all owe our money

Article published on May 14, 2003
community published
Article published on May 14, 2003

This article has not been vetted by an editor at Paris HQ

The second part of the interview with Giacinto Auriti, the jurist from the Abruzzi who created the theory of the induced value of money. Indifferent to conventional scientific wisdom, he reveals how the Bank of England has been cheating the Italians for 308 years.

Giacinto Auriti describes himself as a farmer who is a university professor in his spare time. He has developed a new monetary theory in order to fuse right and left, to rewrite the history of the last few centuries and solve the problems of globalisation. It would seem like a joke were it not completely true. In Guardiagrele, a town of 18,000 inhabitants situated in the Majella National Park, the new currency has been tried out and there has already been talk of a manifesto for a new international credit system founded on monetary justice.

Cafebabel.com joined professor Auriti who explained his theory to us in a tavern typical to the region while also managing to fit in a few games of cards and a very fine cup of coffee. Here is the first part of the interview.

AURITI: what is new about this theory is that we have managed to define currency as a true object of ownership and if need be of credit and debit.

We maintain that the monetary system is to the market what the blood system is to the body: just as the red blood cells transport oxygen even to the smallest capillaries, currency carries purchasing power which is the oxygen of the market.

Until now purchasing power had never been defined. What is particularly new about our way of thinking is the fact that we have defined monetary oxygen. In order to define this we have had to apply the principle of the circularity of sciences. Why? Because when the solution to a problem cannot be found in one scientific category, you can resort to another category. And so we have used physical induction to explain legal induction which is described by monetary theory.

Cafebabel.com: What is physical induction?

AURITI: Physical induction is a dynamo! A dynamo transforms mechanical energy into electrical energy. Within the dynamo the generator consists of a positive pole and a negative pole. The movement of the two poles creates a magnetic field which produces electrical energy. The same thing happens with money. If it is true that when the dynamo stops the bulb goes out, the same is true in the case of currency which must circulate in order to acquire value. This is legal induction.

Just as in physics there is a positive pole and a negative pole, in legal convention there is the Self and the non-Self, the Self and the other of legal convention. Everyone accepts money against markets because they expect to give money against markets. This expectation of the behaviour of others as a condition of ones own behaviour is the cause of induced value.

Cafebabel.com: So what, in your opinion, is currency?

AURITI: Currency is not only a convention, because convention has to do with the law. On the contrary, currency is a phenomenon to do with sociological justice. Here is an example of the difference between law and sociological justice. Sales contract is a legal affair, whereas the buyer and seller linked by the contract are governed by legal sociology. The contract established between buyer and seller is living law. It is in this second phase that induced value is born. Here is why it is a phenomenon of legal sociology. This is a new scientific discovery without precedent. We have succeeded in defining value. Value is a relationship between phases of time. Value is the relationship between the moment of anticipation and the anticipated moment. The knife has a value because I anticipate cutting. The pen has a value because I expect to write. Money has value because I expect to buy. Therefore, value is not in space, but in time! Value is not the market, but the expectation. Of course, this premise gives rise to a big problem: the objective definition of time.

Cafebabel.com: The objective definition of time

AURITI: Because Kant said that time is the Self that is put forward as reality as capacities of expectation, memory and observation future, past and present are thinking activities of man. It is generally thought on these bases that, because time is the Self which is put forward as reality, there is no objective dimension of time. But we have objectified time. How can time be objectified? In order to objectify time we have applied what is known in the theory of interpretation as the clarification of the point of observation. For example: when Galileo Galilei said that it is not the Sun that revolves around the Earth, but the Earth that revolves around the Sun, he said something really stupid! Why? Because he had forgotten to clarify the point of observation. If you are placed on the Earth it is the Sun which revolves around the Earth. If you are placed on the Sun it is the Earth which revolves around the Sun. Therefore, it is fundamentally important to clarify the point of observation. We have now understood that the objectification of time is founded on the clarification of the point of observation.

The point of observation is the Self present in its vital continuity since we have shown value is a relationship between phases of time in the same way that time does not exist without life, wealth does not exist in a world of the dead.

When the point of observation has been clarified you understand the meaning of the clarification of monetary value. You need to step into the shoes of the bearer of that currency. The bearer of currency who has money in his pocket has objectified time in his pocket, because the possession of currency gives him the opportunity to buy. The possession of a knife provides the expectation of being able to cut. The possession of a pen provides the expectation of being able to write. The possession of money provides the expectation of being able to buy. The objectification of money bestows purchasing power onto the bearer of that symbol. This fact is a fact of sociological justice. Money is living law. We are the legal school of money, which we have founded at the University of Teramo.

Cafebabel.com: What is this school?

AURITI: At Teramo we have founded the School for the Improvement of Legal and Monetary Values, which was without precedent until now because it is the only school founded on the theory of induced value.

To be continued on cafebabel.com