Wednesday, 25 November 2015

Our hearts go out to the people of France

Our hearts go out to the People of France and to all the victims of violence in Africa and across the world. The recent murder of innocent civilians by ISIL is a tragedy and the world mourns. ISIL is clearly a rogue organisation that has stumbled into the opaque wilderness of human terror in search of dubious goals rendered meaningless by their ugly price.

Every human being is fundamentally a volatile mass of life experiences and ideas. For any human being to reach a place in the human soul or mindset where they accede to causing carnage of this kind upon their fellow men, women and children in this era in which so much has been achieved seems to defy how far humanity has come.  

Tuesday, 6 October 2015

Countering the inflation crisis in Zambia for the long term

Answer this very simple question. If Zambian consumers, suppliers and industries holding kwacha wanted to buy US$10 billion worth of goods and services from the United States today why should the fact that there are no US dollars in the Zambian economy act as a barrier to them doing this? Why? Why should a 50% rise in inflation be allowed by governments to erode the capacity of their markets to effectively demand and purchase those goods from US$10 billion to US$5 billion? This also represents a potential 50% decline in orders for US goods and services. Barriers to trade created by currency exchange barriers make absolutely no business sense whatsoever except for money traders; counter-productive speculators (who incidentally Jesus kicked out of the Temple). There must be an intrinsic and important reason why he did this. Maybe its about time modern governments did the same. The fact is money traders and speculators will always find some place or some way to trade, this is why places like casinos and Les Vegas were invented. Real world speculation and speculators who try to exploit the margins between exchange rates of national currencies such that they rob the economy of the productive value of its labour need to be countered by government, speculation shouldn't be at the expense of the true value of human labour; which is a serious human rights concern. Currency barriers that require “currency exchange” prior to international trade stifle growth in both wealthy and poor nations. They fuel real world speculation rather than accelerate global economic activity.  

The currency exchange barrier can be likened to the limitations created by archaic and impractical systems which were in place before such as the gold standard. When central banks agree to remove the currency exchange barrier as they dispensed with the gold standard money will be able to do much more work for economies than it is capable of doing at present. The United States alone is missing out on trillions of dollars worth of global sales of US goods and services as a result of this barrier. All that this barrier seems to do is generate billions of dollars for a few money traders at the expense of creating trillions of dollars worth of trade, which in turn translates to millions of lost jobs, and forgone incomes for the American people. The stance of the Federal Reserve Bank of America should be, if you want to purchase US goods for consumption outside the United States we don’t care where in the world you are, you can change whatever currency you have worked for in your country for our United States dollars unconditionally and knock yourself out buying American goods and services because by doing so you are accelerating growth in the United States, creating jobs, feeding families and boosting trade. In other words the United States government is saying the money a person or company earns through its labour and creativity will be recognised and honoured by the United States; we will not disrespect human labour by asking you to jump through any hoops created by exchange barriers. The idea that demand will be too high is unfounded since to earn a local currency like the Kwacha businesses and consumers have to work for it; this alone is the only true and justifiable barrier that all governments should respect and adhere to, to bolster a genuine belief in human rights. And if the United States feels it can’t handle this kind of demand for its goods and services, the truth is that the rest of the world will gladly step in to ease that pressure by accepting those United States dollars for their goods and services as well. This one progressive change in the US Fed’s policy would catapult not only the US, but the entire world out of depression into an economic boom.

 Master and Slave Currencies

Dr Martin Luther King would agree that asking
for equality is not a crime.

Give Us, Us Free.....
As long as institutions such as the US Federal Reserve do not make the effort to make their international currencies unconditionally exchangeable what happens is that the financial system  becomes backward and continues to exist in an era in which you have “Master” and “Slave” currencies. I have written on this problem in considerable detail here where I describe currencies like the Zambian kwacha as “Slave” currencies and internationally tradable currencies such as the US dollar as  “Master” currencies. Every country wants to have an Imperial or  Master currency, because lets be frank, if you had a choice between being a slave or a master in any situation the embarrassing choice would be obvious. Even the European Union seeks a Master currency through the Euro. But the reality is Master and Slave economies even in financial systems are generally backward and retard rather than support fast economic growth. Until such a time that governments agree through central banks to have unconditionally exchangeable currencies to counter the slave-master reality in finance, there is nothing any country can do to genuinely protect its people from the erosion of the value of their labour through exposure to changing currency rates. Note the word “exposure”. This in my view is a human rights issue. The current international currency system is like radiation. The source of radiation is the relationship between master and slave currencies. Exposure to this radiation causes sickness called inflation and deflation to which slave currencies as a result of not being unconditionally exchangeable suffer the most. Master currencies which can demand goods and services from any geographic location or country in the world with or without conversion are immune to this kind of inflation.  Slave currencies on the other hand work in this radiation without any protective clothing and are highly susceptible to illness, that is, depreciation, inflation or deflation. These present day institutions have used hard currencies to create a modern day Trans-Atlantic Slave trade where the labour of least developed nations like Zambia is controlled by the ability to erase the value of productivity through inflation created by the currency barrier. 

Independence and the struggle for economic freedom

The new financial Empire...

Many people will not understand what I am trying to explain here about the currency barrier and how currencies are used today to strip nations of their economic freedom. The reality of this problem is difficult to grasp. The best simplified explanation would be as follows: Zambia gained political independence on 24th October 1964. During the struggle for independence one of the infamous examples of prejudice handed down to us is that of indigenous Zambians not being allowed into shops owned by colonialists at the time. As an indigenous Zambian, to make a purchase you were not allowed inside the store, but would have to go to the shop window for the store owner to serve you. Today this kind of prejudice in Zambia and around the world is considered despicable and unacceptable. It is regarded as an abuse of human rights. No corner grocery or supermarket chain, be it Shoprite, Pick'nPay or Spar would apply this kind of discrimination in the present day, there would be an uproar from the public. And yet the currency barrier is in fact a more damaging and a far greater example of discrimination than this. However, the fact that no-one speaks against it or raises an iota of objection to it shows that people are oblivious to what the meaning of economic independence entails. Since as a Zambian today you cannot take Zambian Kwacha and purchase goods and services with it directly from the international market; this is exactly the same as not being allowed to enter a store through the front door during colonial days. (The very same prejudice people like Dr Kenneth Kaunda fought during the struggle for Zambia's independence.) You are told instead to go to the "shop window" to exchange your Kwacha there. When you get to the "shop-window" to buy your groceries the shop owner then tells you that you cannot directly exchange your Zambian Kwacha for US Dollars which is the only currency he accepts in his store. He points to a field and says: your Kwacha is worthless, first go and till that field, add fertilizer, then when the crop is ready come and exchange it here in my shop for dollars as an "export", then you can buy groceries from me. Your response might be to point to the field next door saying: but I have already tilled that field for one month from sunrise to sunset and my employer paid me this Zambian Kwacha as a slalry. To which the shop owner impatiently replies: when you bring me the crop from tilling the field I showed you, I will give you dollars for the crop, then you can exchange these dollars for your Kwacha salary you have already earned, are you happy now? You, the Zambian at the shop window scratch your head and reply: but Sir, if I exchange my Zambian Kwacha I sweated for already as my salary and you give me your US dollars in exchange, so that  I buy my family groceries from your shop window, since I am not allowed to buy through the front door, then it means I have tilled two fields for two months, from sunrise to sunset to buy one basket of groceries that is supposed to only cost one month's salary - I am working twice for one purchase! The shop owner frowns and says: look you are wasting my time, if you don't want to buy then go away and let me serve the next Zambian customer in the queue.     

The grocery owner in this sketch is the international market and the central banking system that supports hard currencies. The customer sent from the front door to the shop window represents countries around the world like Zambia with slave currencies. "first go and till the field" [is the barrier] it means you cannot buy directly from the international market with your domestic currency, you must go to the "shop window", that is, you must invest in and build up an export industry e.g. Copper in Zambia, Diamonds in Botswana, Cocoa in Ghana, Sugar in Brazil. The response "But I have already tilled the field" means that the value in the domestic currency of these countries already represent work, labour and productivity. "When you bring me the crop" means that the international market, governments and central banks producing and fronting hard currencies choose to only recognise exports and refuse to recognise the value of work, labour and productivity already existent in domestic currencies.  "Then it means I have tilled two fields." This basically means that in order for countries like Zambia to have the hard currency by which to buy from the international market in real terms the economy first worked for domestic currency, then worked for foreign exchange as the two are dependent on one another for the domestic economy to transact in the international economy. At the end of the day or month the domestic economy holds both currencies. This represents two loads or exertions. How? Firstly the domestic currency is exchanged for US Dollars. The Zambian seller loses the domestic currency to gain the US Dollars, this loss is the first load. Secondly the Zambian seller takes the US Dollars exchanges them for the desired imports. These US Dollars are lost to gain the import. At the end of the day the Zambian has gained the required imports, but in order to do so has lost not only the Kwacha which was exchanged, but also the US Dollars that were used to pay for the imports. The combined cost of the imports can be considered to be both the Kwacha and the US Dollars, i.e. the two fields illustrated in the sketch. I hope this explanation is more succinct. Imports cost twice what they're worth in labour terms to a country with a slave currency.

Governments of developed countries involved in Racketeering & Human Trafficking 

Human trafficking is the trade of humans, most commonly for the purpose of sexual slavery, forced labor or commercial sexual exploitation for the trafficker or others.This may encompass providing a spouse in the context of forced marriage or the extraction of organs or tissues, including for surrogacy and ova removal. Human trafficking can occur within a country or trans-nationally. Human trafficking is a crime against the person because of the violation of the victim's rights of movement through coercion and because of their commercial exploitation. Human trafficking is the trade in people, and does not necessarily involve the movement of the person from one place to another. -  Wikipedia 2015.

The United States Government and the European Union need to revisit the relationship between internationally tradable hard currencies and non-tradable domestic currencies in order to reform how these currencies function. The currency barrier if correctly understood can be defined as the trade of humans for the purpose of forced labour and commercial exploitation which occurs within countries that have domestic currencies that are not internationally tradable. The fact that people in these nations are forced to exchange local currency for the Dollar or Euro is nothing less than commercial exploitation. The fact that this exchange forces them to produce exportable products and use the same labour to pay twice for imports is clearly a form of commercial slavery or forced labour. In essence these esteemed governments are engaged in human trafficking on a daunting scale. This human trafficking hurts developing countries like Zambia by forcefully depreciating their currencies, causing inflation and foreign exchange shortages. These shortages of foreign exchange are a direct result of human trafficking and racketeering implemented by hard currencies selectively shutting out local currencies like the Kwacha from the international market using prejudice and biases to skew the financial system in favour of the United States and EU Member States. It amounts to nothing less than governments of the developed world stealing from the poor using methods associated with criminals and organised crime. The currency barrier is a clear example of the United States and EU governments engaged in racketeering. The use of the currency barrier and associated hard currencies to exploit developing countries is a very serious international crime with victims being poor nations such as Zambia around the world facing dire life threatening economic problems. Racketeering, often associated with organized crime, is the act of offering of a dishonest service (a "racket") to solve a problem that wouldn't otherwise exist without the enterprise offering the service. Racketeering as defined by the RICO act includes a list of 35 crimes. Passed in 1970, the Racketeer Influenced and Corrupt Organizations Act (RICO) is a federal law designed to combat organized crime in the United States. It allows prosecution and civil penalties for racketeering activity performed as part of an ongoing criminal enterprise. The use of hard currencies creates a fictitious problem that would otherwise not exist. This fictitious problem is the currency barrier that exploits countries without currencies able to purchase directly from the international market. Forcing countries, governments with currencies that are not tradable on the international market and the economies they manage to export goods and services under the threat that if they do not do so their currencies will depreciate, economies will flounder using an imaginary and contrived problem called the currency barrier which wouldn't otherwise exist is a textbook example of extortion used by organised crime.  Following the the Racketeering Influenced and Corrupt Organisations Act (RICO), according to United States Federal Law, the US Government, European Union and the US Federal Reserve are liable for prosecution and civil penalties. This means that the use of hard currencies to create the currency barrier places the United States Government in very serious and prosecutable violation of its own Federal Laws. Countries like Zambia and/or groups who are victims living in these countries disadvantaged by this racket could pursue a class action law suite to seek redress in the US itself through the United States Justice system. The manner in which the international financial system uses the currency barrier to prevent currencies like the Zambian Kwacha from purchasing goods directly from the international market or being unconditionally exchangeable for hard currencies such as the US Dollar and the European Euro is a racket that falls under the jurisdiction of the  US Federal Bureau of Investigation (FBI) to investigate. Being a form of state corruption, or organised crime it is a prosecutable offense that can be brought against the US Government, its Department of the Treasury and the US Federal Reserve Bank. It would therefore be incumbent on the FBI to protect the financial security and integrity of the United States by ensuring that its government agencies are prevented from using hard currencies and the currency barrier to break US laws. The basic means to do this is for the EU and US government agencies to work toward bringing justice, equality and equity to all currencies and to correct the current corrupt financial system that governs sovereign currencies.  The “ego” of being the sole proprietor of a hard currency can lead to misuse and misapplication of said hard currency that becomes inimical to the State which at some point in time must be addressed by institutions created to correct problems of this kind. 

The “ego” of being the sole proprietor of a hard currency can lead to misuse and misapplication of said hard currency that becomes inimical to the State which at some point in time must be addressed by institutions created to correct problems of this kind. Being an international racket would also require the involvement of the US Central Intelligence Agency (CIA). The CIA and FBI should be guided by the fact that there is a functional misalignment between the political economy and the real economy concerning the ownership, application and implementation of hard currencies through the currency barrier that needs correction to protect the US economy from this serious currency racket. The currency barrier as an inadvertent form of state sponsored racketeering applied through currencies in international trade significantly curtails global demand for American made goods and services robbing the United States economy annually of billions of dollars worth of exports or sales whilst at the same time causing artificial foreign exchange scarcity in developing countries.  The role of the FBI and CIA as US institutions is to bring sobriety to this problem, remove the currency barrier and recover these tremendous, wholly unnecessary annual  financial losses on behalf of the American People so that the United States economy can begin to benefit from international trade. The negative impact of the financial losses on the United States economy contributes significantly to slow growth, unemployment, recession, lay-offs, makes US firms and industries less competitive than their international rivals and this makes it mandatory for US agencies, by law, to intervene, secure and safeguard United States economic interests. 

Human trafficking and racketeering have financial and economic consequences on victims. For anyone who understands the impact of the abuses taking place on the citizens, industries and business of countries like Zambia who battle through inflation, lack of adequate US Dollars or Euro's to support the local currency, dehumanizing inflation and its affect on livelihoods this has all the vestiges of criminality.  Human trafficking is a form of forced labour and is regarded as modern day slavery. In many scenarios desperation created by ailing economies, poverty and inadequate economic growth aggravate human trafficking and can be attributed to the the currency barrier racket perpetrated by reputable institutions such as the EU and the US government. The currency barrier and lack of unconditional exchange between currencies created by modern day prejudices is a racket that directly involves developed countries in human trafficking.  The US Government and European Union need to take the time to explain to the Zambian people today, as they suffocate in an economy being killed off by inflation resulting from a lack of hard currency in circulation, why they should continue to suffer in this way. Explain to the families that can no longer afford school fees as a result of inflation why they cannot send their children to school, explain to the families who look at rising prices on shelves why they can no longer afford even simple staple foods anymore, help them explain to their children why the family must now starve. Help explain why simple medicines and treatments are now too costly and how they must now die a slow death from hunger and curable diseases. Take the time to explain to the migrants risking their lives to cross into Europe and the developed world why the poverty, conflict and hardship they are trying to escape in their home countries cannot be solved with their local currencies. Tell them and those who have lost their lives how you are different from those vilified such as Saddam Hussein, Hitler, Goebbels or Gaddafi, as Zambians and people similarly trapped in ever-present, never ending  poverty in countries around the world die a slow death from the currency barrier. Explain to them how you are different from those who kept the Jews in labour camps and gassed them to death? Or different from those who give a slow death from chemical weapons banned by the United Nations? Is your death by the Dollar or Euro more humane maybe? Explain how its is more humane to die this way at your hands so that they can learn how to accept this culling. You are their dear friends, their development partners, you are our brothers and sisters; we love you to a fault often without condition, even when you hurt us, we still love you. So take the time to explain to these people as their business shut down, as they lose jobs, as families go without and children are forced to beg on the street; take the time to explain and help them understand how the paper and ink on the Euro or Dollar bill and the basic pride of being the sole proprietor of a hard currency is more important to you than the suffering of your brothers and sisters across the oceans. As  the Zambian Kwacha battles for the survival of its people and all it would take to save these noble people is the US Federal Reserve saying to the Bank of Zambia; Friend, let us help your Kwacha survive this national crisis by backing it with our dollar; And yet where are you? Who are you? Do these people truly know you and what your noble country stands for any more? Do your own citizens, the American People even know what kind of government represents them?  The poor, impoverished, struggling people of Zambia and people around the world in a similar predicament - disadvantaged  by the currency barrier are listening. at least make an effort to explain why money, paper and ink is more important to you than human life so that they can better endure the burden.  

The Currency Barrier: A Criminal tool for oppression and instigating regime change

You've been hit by....
Developed countries exploiting
hard currencies at the expense of
developing countries are
Smooth criminals dancing
all the way to the bank
Artificially starved of US dollars or Euros and trapped in the cycle of abuse created by the currency barrier developed countries like Zambia will be forced to try to mend their economies by having to persistently turn to institutions such as the International Monetary Fund (IMF) to borrow as was observed when Zambia faced economic crisis in the 1990s. Coincidentally, the IMF was in Zambia recently dangling a billion dollars before government; a "solution" to an economic crisis created by the currency barrier, which is in turn a corrupt instrument of the developed countries who implement it. The institution offering the cure is an affiliate of the institution creating the disease - a modus operandi of "super smart" developed nations making dubious decisions. Why does it make more sense to "help" nations with huge loans that may inevitably cripple them in the future when it is much more sensible to genuinely aid them by making currencies equal? Instead of offering Zambia a billion dollars and increasing its indebtedness developed countries should stop bending over backwards to maintain racketeering and simply remove the currency barrier to unlock more than a billion dollars countries like Zambia already have trapped in their domestic currencies.  Consequently, the currency barrier becomes a racketeering tool for inducing regime change in politically weak, unwary governments and currency-destabilized developing countries. Citizens are not left to cast a genuine vote, but rather the currency barrier is used to create such great economic hardship that they are pushed by the racket to vote a sitting government out of power. Developed countries have no right to make such choices on behalf of sovereign nations. Citizens of developing countries should be free to choose which political party and leader they want to lead them through the ballot without using the currency barrier to temper choice for or against one candidate, political party or another. The present currency system is an enemy of true democracy and freedom of franchise which it undermines by using the economy to tamper with the sovereignty of nations and their citizens. This too is a serious crime. In a democracy citizens have the right to make good or bad choices and live with the consequences. As mentioned earlier when a reference to the RICO act was mentioned developed countries using the currency barrier for pecuniary advantage are in fact breaking the law; can and should be prosecuted for financial crimes not just against developing countries like Zambia, but (considering the immense human suffering they cause) against humanity itself. Organised crime uses this very same method to bring its victims in line using extortion. Since what is allowed to be applied on the international market is only the hard currency component and domestic currency must be exchanged for the hard currency prior to an international purchase, this means that though twice the work was done only half its value can demand imports. This limitation and exchange process is therefore not facilitating trade, but rather is simply no different from an exchange rate control which is contrary to free market policy. For this to be considered a free market or fair exchange both the hard currency earned (US dollars or Euros) and the Zambian Kwacha component should have been able to purchase an equal and specific quality and quantity of goods and services directly (without the need for exchange or by being unconditionally exchangeable) from the international market; however, the applied ideology of the international market's governments conveniently dropped or denied the value in the domestic currency when it demanded it be exchanged for hard currency the slave economy does not have, undermining principles of a free market system that they extol poorer countries to adhere to; basically a double standard. What fools or confuses people is that the domestic currency can still buy local goods and services, but this is absolutely not the point as the prejudice that prevails is that it cannot purchase directly from the international market and therefore in real terms has no value however by being able to demand goods and services locally governments and domestic populations are easily fooled into believing it has "real" value. What people do not realise is that in the greater economy or international economy the real value of that domestic currency has been reduced to zero thereby robbing it of the true worth and potential of its labour and productivity; as in, it cannot purchase directly internationally but can only do so indirectly through an exchange process that requires further work to to create exports that earn forex consequently forcing it to persistently export, i.e., carry twice the load or pay twice what imported goods are worth in real terms. Developed countries inadvertently use the currency exchange system to shyst and shake down less developed countries robbing them of income in broad daylight in a very polite and gentlemanly manner through a misapplication of free market policy they have trained them to blindly accept. It is a low blow to continue to shyst these sovereign nations the majority of which struggle with very real problems such as poverty, hunger, disease and joblessness..  

I hope this little sketch simplifies what I am trying to explain. If the first month the man worked and earned Kwacha for was enough to buy the groceries he wanted in the shop then what would the second month he would have been required to work been for? This additional unwarranted labour is a form servitude. The racial and other prejudices that necessitated the struggle for independence are obvious. they are easy for anyone to see and therefore swiftly actionable: an example of this kind of discrimination experienced by a man who eventually became Zambia's first President.
President Kaunda recalls an incident that took place when he was working as a teacher. At that time, Africans were not allowed to enter European-owned shops from the front door. They had to stand at a window at the side of the shop and ask for what they wanted. They had no chance to see or choose what they were buying. He recalls:
"I went inside and asked politely for a book. . . . Pointing to the door, [the proprietor] said viciously, 'Get out of here.' I said again, 'I am only asking for a book and I can get it nowhere else in town.' He said, 'You can stand there till Christmas and you'll never get a book from me.'"
SGI Quarterly
The discrimination created by the currency exchange barrier is not as easily actionable because the public simply don't see it. However, this simple sketch may help you understand why one country refusing to sell goods and services to another except through exchange using a hard currency is exploitative, a form of prejudice and a serious violation of human rights. The use of hard currencies such as the European Union's Euro and US Dollar to create servitude through the currency barrier is no different from the kind of prejudice Dr Kaunda describes in the above incident. The currency barrier on the other hand is more subtle requires you to open your eyes, but no less potent. It is inhumane, a violation of human rights and in reality equal to or far worse a form of prejudice than the political discrimination Zambians experienced during colonialism because it is invisible to the present day psyche. This is true yet its negative impact on the socio-economic life of Zambians today is far greater than the financial and psychological disadvantages created by the prejudices meted out against those who were similarly colonized around the world. This problem is why countries struggling to emerge from poverty and obscurity face an uphill battle. The struggle for economic liberation will require more from this generation, for the simple reason that you are unlikely to break chains that you cannot see and unlikely to struggle for economic liberation when you do not even know that you are captive. 

Zambians struggled for political independence, however this generation needs
to understand and rationalize what economic independence.means.

 The UNCHR needs to address this problem

Many nations have struggled for political freedom and gained it at independence. Having gained independence they soon realised that political emancipation loses its lustre and value without economic liberation. They consequently have struggled to build up their economies in order to feed, cloth, educate and nurture their people as well as build viable industries. They would  soon discover that without foreign exchange their domestic currencies and therefore their productivity and  economies would be worthless. Even today countries like Zambia are absolutely dependent on minerals like copper for their very existence and survival as without it the value of labour and productivity in the economy is reduced to nothing. The consequence of this is tremendous suffering of the Zambian people at every level with the poorest of the poor being the worst affected. That this suffering of humanity takes place before the eyes of governments and the accomplished men and women who guide them and claim to be champions of human rights, is a travesty. The servitude and slavery is self explanatory, what more evidence would any international body governing human rights require? This is a problem that must tabled before the United Nations Commission on Human Rights. The UNCHR needs to address this problem if it is to remain a beacon of hope for humanity. The currency barrier in use today is a very serious violation of human rights and the suffering it creates amongst nations is right before the eyes of governments who can do little or nothing about it because they lack the economic strength to speak back to those to whom their people remain in economic servitude. Poor nations like Zambia around the world struggling to feed and raise their people, struggling to build their economies do not deserve this kind of prejudice, ill-treatment, slavery and servitude. Under this system for governing currencies the struggle of poor nations to ever gain economic independence is but a dream. For those successful emerging economies, tigers and nations that do achieve great economic success, the servitude does not end; under this currency barrier system they can never hope to be considered as nothing more than the slave who is most gifted at picking cotton on the national plantation.         

Currency exchange barriers are only allowed to continue to exist today because governments are simply not made aware and familiar with the negative impact on human welfare this system has. They simply do not associate the currency barrier with poverty, suffering and slow growth spread across the globe. There are also powerful interests that have placed private gain above national gain and the importance of a fair system that benefits all people. Under the present currency barrier system to tell countries that to improve their weak, failing or floundering economies they should work harder, be more productive and export more is no different from telling slaves on a plantation that they are slaves because they don't apply themselves enough when the truth is they are slaves because of the financial ideology and socio-economic system they have been made subject to. There is absolutely no difference between this condition and the man made currency exchange system governments around the world blindly submit their people and economies to today.

The United States is considered the most industrialised and the commercial capital of the world and yet it allows the existing currency exchange system, a draconianly anti-capitalist method of administering finance to stifle trade. Central Bank’s making currencies unconditionally tradable is pro-commerce, pro-trade, pro-business, everything the United States stands for and that has made it the wealthiest nation on earth and yet strangely it allows this anti-capitalist barrier to exist at great loss to itself; it allows its businesses and citizens to suffer immensely simply to satisfy a few money traders who have so many other areas and methods by which they can trade without debilitating the true value and worth of human effort, labour and employment. In my view currency barriers are un-American; while unconditionally exchangeable currencies that foster the well-being of humanity through accelerated business and trade are pro-American.  

Test the theory

In real terms the only economy in existence is the international economy. For instance, for the World Bank to say Zambia's economy was worth US$27.07 billion in 2014 is in fact a distortion of the truth. This is due to the fact that the real value of the Zambian economy can only be determined by the economy's existing hard currency, export earnings or what proportion of US$27.07 billion the country can convert into US dollars or Euro's, the rest is potential rather than real value. What the currency barrier does is reduce the real value of a nation's GDP to its exports. For instance the World Bank's stats may say Zambia's GDP is US$27.07 billion, however, if in 2014 Zambia's export earnings were only US$9 billion, then the real value of the Zambian economy in the international market is just US$9 billion the rest is merely "potential" value trapped like the "informal sector" in domestic currency value.  This may readily explain why natural resource rich countries like Zambia remain trapped in poverty; the wealth exists, but it only exists in potential not real terms due to the fact that domestic currencies cannot purchase directly from the international market and exports harbour a hidden cost at the point of currency exchange that makes them twice as dear in labour and productivity terms than they are actually worth. When central banks agree to unconditionally guarantee the value of the domestic currency then instantly the value of that country's productivity is normalized as the domestic currency becomes equal to international hard currency and the cost of purchasing imports in comparison to the productivity required to earn them is halved from "two fields" to "one field". For Zambia this would instantly add US$18.07 billion of real value to the economy's worth that the international financial system was previously unable to see. The impact of this in terms of stability, FDI and growth would be very significant. At present it means discrimination created by the currency barrier is hiding or locking away US$18.07 billion worth of Zambia's real value, simply because of prejudice in the international financial system. In essence the barrier through which US government and EU currencies operate is inadvertently contributing to the tremendous suffering and poverty levels observed in countries like Zambia. This runs contrary to the positive core values and human rights these institutions are known to support. For a country already struggling to make progress like Zambia this is a tremendous blow that is presently invisible to policy makers. The travesty and tragedy of this is the human suffering this problem is causing, as it not only creates and sustains poverty, but keeps millions of Zambians in economic servitude the origin of which even they may not be aware. 

I would humbly suggest to the US government and the Federal Reserve Bank to test this theory. Select an African country the United States feels is deserving. Approach the government and its central bank and offer to make that deserving country's currency unconditionally exchangeable with the US dollar. Guarantee internationally and publicly that for the next 20 years any imports made by that country will be backed and covered by the US dollar through a currency guarantee offered by United States government by way of its Federal Reserve.  Holding that county's currency anywhere in the world will be as good as holding the US dollar. This is not aid, its not relief, it is an offer of equality and equity currently missing from the world's financial system that effectively abolishes slavery of that country in financial terms. An importer in that country will no longer have to worry about whether there are sufficient dollars in the economy to import machinery, equipment, raw materials, finished goods, consumables, basically anything its citizens and businesses demand. Then sit back and watch over the next decade what impact this policy will have on poverty in that country, on economic growth, on foreign direct investment (FDI) flows, trade, business, capital, productivity, governance, public sentiment about the future and especially what impact this decision will have on the rate of growth of imports from the United States to that country. If the impact of this experiment and study proves beneficial to the United States economy and the economy of that African country then a decision can be made to replicate it and extend it to more countries until it becomes a common and acceptable policy. My view is that this kind of equality and the good will it emits will generate more positive results than any kind of aid that can be offered to any nation.

The Zambian Kwacha

The Zambian Kwacha has hit an all time low as the currency depreciates from $1 to K6 up into $1 to K13. For now the reasons why the Kwacha is devaluating are not important. Whether the devaluing kwacha is being hit by low copper prices and other economic factors, or it is jittery investors pulling their dollars out of the economy due to uncertainty before the elections, or it is also being hit by the behaviour of buyers and sellers who are trying to hoard US dollars in order to protect their value or simply because inordinate amounts of kwacha are being printed to pay salaries, suppliers and to service local debt. As long as currencies remain in an oppressive system where they are not made unconditionally exchangeable central banks of “Slave” currencies like Zambia have to find ways of making a subsistence living so to speak.

What the Bank of Zambia can consider doing

Firstly let’s have a dose of realism. It is unrealistic not to expect price increases when a currency depreciates as it causes an inflationary spiral. Banning the dollar as a yardstick for measuring real value may be unrealistic. This is like government issuing a law that all rulers and measuring devices in the country be banned and henceforth people must guess or estimate distance. The hope is that people will underestimate distance, that is, think the kwacha is actually stronger against the dollar than it really is. The problem with this approach is that it can lead to dangerous structural problems in the financial economy and people are just not that gullible anymore. Gestapo-like threats such as this to intimidate sellers into pretending they can’t see the dollar gaining strength in the economy are not progressive; they do not cast the financial sector in good light.

The solution to the problem of inflation in Zambia is quite simple. If the current master currency exchange system is emitting radiation exposure to which hurts the economies of slave currencies like Zambia then these countries must wear protective clothing until such a time that central banks make currencies unconditionally exchangeable. Until this time any government with a slave currency must not allow its economy to have direct exposure to the master currency trading system. What is this protective clothing or barrier?

The source of exposure is the international market price of a master currency such as the US dollar. To protect themselves from this exposure countries with slave currencies should not allow their economies to be directly exposed to the international exchange rate. Instead they should create a domestic exchange rate that offers some relief from the effects of the master currency system. This exchange rate is not set by government, neither is it set by the quasi-government such as the central bank. It is by way of a statuary body or council set by a countrywide association of buyers and sellers, suppliers and consumers in the domestic economy with government through the central bank simply acting as a guarantor of last resort. It would be a requirement by PACRA that every registered business in Zambia be a member of this association and monthly contribute a determined amount that is used to run its secretariat. Informal business of all kinds throughout the country can also be encouraged to also join the association as members at an affordable monthly fee as they too are affected by and strongly influence price in the Zambian economy. It would probably be one of the most important independent financial bodies in Zambia for helping the central bank and government in general maintain the stability of the kwacha. The fact the domestic market exchange rate is set by buyers and sellers acting through this organisation to influence behaviour ensures that is set by the market and is therefore technically still a free market exchange rate and system. The difference is that rather than allowing the the slave whip or radiation from the master currency system to strike the slave currency, the slave currency through its own market exchange rate is able to resist simply by improving its trading position and using the gains from this improvement to shield itself from exposure to inflation and many other problems created by the master currency system when the relationship between currencies fails.

A domestic currency exchange rate determined by suppliers and consumers

What I would propose to the Bank of Zambia is to encourage behaviour change amongst buyers and sellers in the economy by gaming how the economy views foreign exchange. Foreign exchange is not just a value, it is system of measuring satisfaction. By focusing on satisfaction rather than the exchange rate the central bank (CB) can initiate behavioural change between banks, suppliers, buyers and sellers in how they view and value the Kwacha against other currencies. Firstly when the exchange rate rises in favour of the dollar as it has in Zambia the CB should encourage the market to view the prevailing exchange rate as a kind of opposing team against which they can take deliberate steps to win the “game”, I would refer to this as the reverse or inverse of speculation which hurts economies, lets call this approach counter-speculation.

Counter-speculation Introducing a “Domestic Market Exchange Rate”

Many businesses in Zambia are already implementing a Domestic Market Exchange Rate. How? They are not changing their prices directly in tandem with the US-dollar. When the exchange rate declines from US$1 – ZMK6.00 to US$1 – ZMK11.00 they instead price their products at US$1 – ZMK8.00. They are cushioning the impact of the exchange rate. What are they doing? In reality they are creating a “Domestic Market Exchange Rate”. By resisting price change they are in fact fighting back inflation and fighting for the Zambian economy. This behaviour or resistance to inflation which comes from the market itself is what government should encourage rather than the unreasonable demand that the dollar not be used as a measure or yard-stick of value, an approach that is impractical.

The CB should make an effort to officially recognise, encourage and reward the practice of not pricing precisely to the rate of inflation, but rather help  set up official structures to help businesses find ways of fighting inflation through price resistance. When inflation is experienced businesses selling goods and services should both agree that prices will go up, however, they agree to share the cost and impact of inflation. For instance if a currency loses value where the Kwacha falls from K6 to K10 to a dollar; it is agreed between banks, business and customers through BOZ that any increase that causes a change in price will be shared between them. Since the official Bank of Zambia international market exchange rate of the currency is US$1 to K10 for instance and the jump in depreciation from K6 to K10 is K4, businesses, banks and consumers agree to tackle this problem by splitting the burden of depreciation between them. That is businesses and consumers will take on a shared cost of K4 which divided by 2 is K2.  Instead of raising the exchange rate to the international exchange rate of $1 to K10, players within the economy (banks, business and consumers) agree to share the cost of the rise in inflation. To do this banks operate on the Domestic Market Exchange Rate they establish which reduces depreciation to $1 to K8. This creates an official trading rate for the Kwacha which is now $1 to K8 instead of $1 to K10. In other words, banks, business and consumers know that the international market rate for the Kwacha is $1 to K10, but because as a society or association they have agreed to SHARE the cost between buyer and seller or supplier and customer they deliberately rate the value at $1 to K8 creating a new national domestic market exchange rate. This internal position will immediately drop inflation in Zambia by 20%. Even if a business makes an international purchase of a product or raw materials at a rate of $1 to K10, all suppliers in Zambia by a countrywide official association supported by BOZ agree they will price their products at a rate of $1 to K8 and banks will agree to a buying rate for the dollar at $1 to K8 knowing the K2 is the accepted shared loss between suppliers and consumers. In other words the driving moral force of this stance supported by BOZ is that Zambian business and consumers will help each other prosper, they will share the burden and work together to push back inflation in order to restore normalcy. It is a rallying call that all patriotic business operating in Zambia and consumers can try to support.

In other words businesses and consumers are working together to fight back inflation. There are now officially two rates for the Kwacha. Both are set by the market. These rates are the inflationary international market rate of $1 to K10 driven by speculation or other undesirable forces and the official internal or domestic market exchange rate fighting back inflation of the Kwacha applied in all trade which is $1 to K8.

The international market exchange rate is now up against the domestic market exchange rate. Businesses, banks consumers and suppliers within the economy are working together competitively to push back the international market rate that is negatively affecting trade, earnings and the Zambian economy in general. It becomes a game of sorts where it is the players in the economy versus depreciation. The score is one goal to Zambian enterprise and zero to inflation with BOZ in the stands cheering them on.

There are innumerable methods such country-wide associations can use. For example, inflationary trends can be monitored. For instance, why is it that every year as the Zambian economy approaches the festive season the Kwacha begins to depreciate? Is it because people require foreign exchange during this period for bonuses, holidays, trips abroad, dividend payments abroad etc. If the cause is identified then what incentives can be provided for this forex to remain in the country rather than be exported. When the association recognises what specific economic behaviour business and consumers need to introduce to stem this inflation they seed it out to members countrywide.

There are also international businesses operating in Zambia. They're operations here have strict orders to price their goods and services according to the international exchange rate. This becomes the domestic policy. These local businesses will not defy direct orders from their parent companies. However, if a country-wide association of suppliers and consumers existed, it could send a delegation of experts and persuaders to the headquarters of these companies to speak to them at that level and explain the long term benefits of following the domestic exchange rate instead of the international exchange rate to them and gain the kind of buy in that allows the heads of local operations to participate by working with the rest of the business and consumers in the economy.

Managing a domestic market exchange Rate

A domestic market exchange rate is not set by the Bank of Zambia (BOZ). BOZ merely provides the officialdom and platform by which banks, suppliers, traders, manufacturers and consumers are able to by way of association officially meet together to set the domestic exchange rate by agreeing on how to share the cost and burden of inflation between them. This is the first line of defence against inflation and creates the first barrier to direct exposure to exchange rate volatility in Zambia or any economy for that matter. 

Technically a domestic exchange rate is set by the market since it is agreed to between buyers and sellers. It is not set by government or the Bank of Zambia. Therefore it is not a form of State control. In addition to this the rate is not artificial in the sense that both buyers and sellers are through association working together to pay directly for deflecting the heat from the volatile currency. They are not being forced to do this, they are doing this deliberately of their own free will. For instance a supplier of imported electrical appliances or steel knows that if he or she increases price by exactly the same percentage as the volatile Kwacha product sales will fall dramatically. Instead of increasing price in tandem with this volatility he or she absorbs some of the impact of inflation by using the domestic market exchange rate $1 to K8 instead of the international exchange rate $1 to K10 created by speculation. He takes on a burden of K2 while the consumer bears the burden of the other K2 which is added to the price of the product ($1 to K8) pulling back the inflation by 20%. This is the first defence that is agreed to by association of suppliers and consumers under the auspices of BOZ. Right now no such mechanism exists in Zambia as an official positive inspiration to business and consumers to work toward a resistance to depreciation.

Many suppliers already protect their consumers or clients in this way from sharp increases in inflation caused by not following the exchange rate exactly as it rises and falls, these are Zambia’s unsung heroes yet this resistance is currently not quantified by the central bank and it is not an official practice that is performed through association countrywide. If it is not recognised, not quantified and not official then in reality a business and consumer led drive against inflation is non existent and this positive behavioural trait is not shared with other suppliers and cannot be used as national or domestic market exchange rate to protect the economy from the intense rays or radiation from exposure to master currencies. If it is not shared then an opportunity is lost to encourage suppliers to do the same.

Other Tactics

By formally setting up a countrywide association consisting of business and consumers (the market) that works together to fight depreciation the first important step will have been taken in Zambia to protect its currency. Having fought back depreciation by 20% the association now operating officially with the encouragement of the CB looks at the remaining inflation and how to tackle it. Let’s say the preferred trading rate is $1 to K5. The domestic trading rate is now at $1 to K8. Independent business that do not sell specialised products are not tied to a single supplier and are therefore free to seek or source the best available price for the products they sell. The association can now do the research to help find diverse means and strategies for beating depreciation. For instance it can now ask all its members countrywide to submit lists of inputs and products they depend on forex to be able to import and to go back to their international suppliers to either negotiate lower prices or those who can opt to switch to suppliers of similar imported products at a cheaper price. The point is that, what often drives inflation is the currency barrier and demand for dollars by traders in order re-stock goods that are now more expensive to buy due to depreciation. Managing inflation is also about finding similar imported products that are for sale at a lower price or negotiating lower prices. The association can look at unspecialised or like imports and group businesses ordering exactly the same materials, equipment, inputs and products together then combine orders to move prices down using economies of scale. When products are bought in bulk rather than by individual suppliers price can often be negotiated downward. This tactic should shave some more points off inflation.


As a child I was quite fascinated with how engines work. I designed my first rotary internal combustion engine when I was fourteen years old, it was because I felt the crankshaft combustion cycle of piston engines is inherently inefficient and this was verified to be true. I would take my designs to class and work on them any chance I could. I would go to the school library to research as much as I could on the subject of internal combustion. When people would find me working on the technical drawings they would shake their heads. Some people were moved enough to visibly become upset with me when they asked what I was doing and I told them. They told me I was mad to think I could do something engineers at car manufacturing companies like BMW and Mercedes were doing and dismissed my illustrations as a crazy fantasy. For the most part I tried to ignore the criticism and negative attitude because I already knew that the majority of people, even those with impressive educations tend be cloistered by conventionalism and to have shallow IQs. Much later when a Professor of Engineering saw my designs, the methodology I had used and the illustrations he was impressed enough to call me to his office and ask me if I'd be interested in building a working prototype of the engine. I am still that person, my determination is not deterred.

Governments today, especially of poor countries,  need to be wary of the knowledge they take for granted in economics and finance. Know the game inside out. Don't get played, be a player. Do your own research, think out of the box, re-assess and re-analyse everything about finance you are given to understand according to its relevance to your situation. Simply because a distinguished university teaching a "slave"master's program says the slave collar around your neck is "bling" can mislead people into thinking shackles are jewelry. We should never forget that we are struggling for our very survival. Benevolence is an ideal but we do not yet exist in a benevolent world.  The reality is that there are a thousand and one ways an economy can resist inflation. However, until there is an official business and consumer led organisation created to do so, which can generate a domestic market exchange rate the CB will have to rely solely on open market operations such as flooding the market with hard currency. This may work, but it is costly in that it is very much like running on empty and driving around the city from station to station looking for gas. The economy will easily gobble up any and all foreign currency the central bank tries to offload on the market. However, by having business buy into a domestic market exchange rate, the resistance to inflation is created by increased efficiency, economies of scale and other economic approaches businesses and consumers may use to counter depreciation. To do this the CB is likely to need to facilitate the creation of an official, country-wide association business and consumers buy into, that allows them to cooperate in how they behave when faced with unwanted appreciation, inflation or deflation. After all, economics is not just about money, but about how business and consumers behave in an economy. Tapping into this behaviour through an official vehicle is probably the best way of ensuring there are sufficient tools to manage the kwacha in times of crisis for the long term.  
The role of finance in religion

Breaking chains: Zambia will succeed in the struggle for
economic emancipation. We are anointed to succeed.

I could go on and on trying to provide scholarly ways in which countries like Zambia can protect the erosion of the true value of their labour from inflation by setting up associations to protect the Kwacha and counter depreciation as I have just done. However, I can also give you a religious reason why central banks such as the US Federal Reserve should make agreements that allow currencies to be unconditionally exchangeable. The Bible makes a direct reference to financial slavery, which is a reference to the very currency exchange system in place today. It laments about this Master-Slave currency system in place today as follows:

16 And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads: 17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name. Revelations 13:16-17

Many people may read this piece of scripture, but may never actually understand it. This is the direct translation of Angelic language into human speech therefore quite frankly when you read it, it may sound like gibberish. I have explained quite consistently that in the Bible when you find a reference to the beast [Satan, Lucifer, the devil etc] it is a direct reference to prejudice with cruel intent or outcomes. The mark is a trait, on the hand it is a reference to labour, the work place, employment and on the forehead it is a reference to how people think, what they believe and what influences their decisions in this space. Buying and selling is a reference to money or currency by which goods and services are acquired. What it quite simply says is: no person on earth today is free because the financial or currency system makes everyone a slave and the bondage in which it places humanity is Satanic (of the beast) as it is deeply and inherently prejudiced. It is a system where people cannot equally convert or exchange their labour for goods and services due to the inequality created by the currency barrier (discrimination as an obstacle to buying and selling), labour and the work space in every sphere of human existence is driven and tainted by prejudice. Such widespread inequality in the application of human labour can be nothing less than a direct reference to the fact that one currency is not unconditionally exchangeable for another.  Money or currencies when used by the financial system without prejudice or against discrimination represent what is good and it has sacred value. However, when it is used in the opposite manner with prejudice and to support discrimination it becomes evil or unholy. The present day inequality between currencies creates an unfair system where finance is used to reduce and subject human labour to slavery as a result of being deeply flawed by prejudice. This dehumanisation of mankind's labour is set apart in that it is quantifiable using a prejudiced [i.e. Satanic] system for measuring value; hence it has a number. Number being an attribute of money or reference to currency which has numbers or digits used to measure and define value. By now you will probably understand that the infamous value 666 [the number of his name] used in this specific context or sentence structure is simply a reference to the misuse of finance, money and currency that is used or exchanged in a manner that is prejudiced such that it causes human suffering. This suffering can assume many forms but can be readily identified in the currency exchange barrier if the time is taken to understand how currencies not being unconditionally exchangeable keeps entire nations trapped in poverty and unseen servitude. 666 used in this specific context is a direct reference to the "servitude of exchange" as a misuse of money to create inequality that leads to human suffering. Contrary to belief it does not refer to one person [the number of a man], rather this "man" is a reference to any person, any man or woman who misuses currency/money in this prejudiced or unequal way who consequently becomes like the devil [a man]. Revelation 13:18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.  Number in this verse is a reference to currency or money that is used to create an unequal or prejudiced system [of the beast]. The Bible explains that if you take the time to observe what's going on you can work out or see this inequality and prejudice: Let him that hath understanding count the number of the beast i.e. [Let anyone who understands see or measure [count] how currency is used for prejudice]. Using money there is only one way to do this and this is to measure [count] one currency against another. For it is the number of a man i.e. [it is identified by how a person (any person - man or woman) uses currency]. And his number is Six hundred threescore and six i.e. [ and this person's (man or woman's) currency is exchanged over and over, almost endlessly - hence the Angel's repetition: 6-6-6 i.e. meaning (doing wrong : 6) over (6) and over (6) and over (6)]. Many people erroneously spend a lot of time trying to work out some numerical or mathematical system that will generate a name of this value as though it is a dense mystery. Three sixes is an expression that emphasises "to repeatedly do wrong" .i.e. over and over. The passage expresses that this pattern is how true evil is recognised. If anyone takes the time they can work out or recognise the pattern and identify the true nature of a person in that any person is defined by what they repeatedly do.  To end this evil stop the pattern of repeatedly doing what is wrong, and instead replace it with equality, what is just and let good become what is shared. Most people have misconceptions about what this Bible passage means or they misrepresent it as they cannot translate this passage of scripture correctly because they do not and cannot speak the language in which it was presented to John.    

How is it possible for every person on earth today small and great, rich and poor to exist in a system of servitude that it is thought ended with the slave trade - a mark in the hand and on the forehead? In other words how is it that in this modern day you can have entire sovereign nations bonded in slavery as is described in Revelation? It is quite simple to explain. When national currencies cannot directly demand goods and services from the international market, then to overcome this barrier they must first work to export goods and services in order to earn hard currency with which they can exchange local currency. This work done is no different from a slave picking cotton for free as it is purely for the purpose of gaining economic well-being by overcoming the currency exchange barrier; a fictitious man made barrier that need not exist. Without this barrier they would be free men and women exporting goods for their benefit, however, with this barrier in place nations, as it is with slaves, are made to produce these for free, for the benefit of another unbeknownst to themselves. How is it that they do this for free? A master currency can obtain the same goods and services slave currencies "pick cotton for", simply by purchasing them of the international market without doing any of the labour currencies facing barriers must perform. Many governments today have no knowledge of this servitude in which their people are caught up; lacking this insight or understanding they are like a child in the cotton picking fields of Virginia born into slavery; they are working the fields for foreign exchange, thinking this is how it has always been and always will be. What better slave is there to have, than a slave who believes he or she is a free person? When a human being works, his or her labour is a universal currency. It is sanctified. It is of God. Goods and services made and demanded represent human labour as does human ability; that labour cannot be eroded or rendered valueless simply because governments choose not to recognise it by using prejudice to set up currency exchange barriers that create a form of servitude that is completely hidden from the sight and minds of the masses as is the case today. It does not matter what currency represents the work people do, the work itself is the real value, hence that work in religious terms is sanctified. To say that this value does not exist by currencies not being unconditionally exchangeable, in religious terms, is unholy. It is a desecration of something sacred, the introduction of an unholy bias, no different from a serious abrogation of human rights which the Angel very eloquently explains to John in Revelation. The description is consequently quite accurate. This is the financial currency system with exchange barriers you live in today.

The United States Government & Congress have a key role in ending the human rights problem created by the currency exchange barrier

The founding father's of the United States understood this principal of equality and equity. This is why they placed the motto "In God We Trust" on the dollar bill; A Civil War declaration that the United States is no ordinary nation, it is a Nation of God moving away from slavery and injustice, under God's protection. The value of human labour is universal. Money should not discriminate. A dollars worth of hard work by anyone regardless of who they are in one State is a dollars worth of work in any State. A dollars worth of work in the United States is a dollars worth of work anywhere in the world and vice versa. This is the true value of the American currency and economy. As human beings this is the true emancipation from oppression, the true independence we strive for. Just as African nations fought for and gained independence, the United States did the same in the American Revolution. From Revolution to Civil War, the United States fore-bearers journeyed toward equality and justice. However, the present day exchange rate system no longer expresses or recognises this belief or these values. A dollars worth of work in Zambia firstly has no infallible value because Kwacha cannot demand goods and services on the international market, it faces the barrier of conversion. It is therefore rendered a slave currency. This barrier goes against the American values advocated by the founding fathers. It means a dollars worth of work by anyone in one place is no longer a dollars worth of work in any place that harkens back to the era when America was not free, but a colony and later the slave trade where an individual did not own his or her own labour. Even if they did it was not equal to any other persons labour because of the problem of prejudice. How do we know this? Depreciation caused by the currency barrier eroding the value of a currency erodes the value of labour re-introducing a fundamental problem the American Revolutionary War and the American Civil War were fought to achieve: independence, freedom, equality, justice and the end of slavery. The final frontier and challenge, that of ending poverty and the suffering of humanity in the world yet remains to complete the legacy of the founding father's. The United States Government, Congress and the American People have the power and ability to carry through this legacy and fulfill the great purpose of its existence. This will require strong and purposeful leadership that understands the problem. These values can only be achieved when central banks agree to make their currencies unconditionally exchangeable, that is, unrestricted by barriers to conversion or exchange of one currency into another and unfettered access to international markets. At this point the value, purpose and belief associated with the use of money becomes aligned with God; as it establishes the meaning of "In God We Trust" consequently making the United States a global leader in bringing tolerance, freedom. peace, prosperity, equality into the world, not just as a political ideal but a economic reality established through the just, correct and purposeful use of the US dollar. As long as currencies do not remain unconditionally exchangeable thus fostering equality and equity the power of the US dollar and its government to change the world for the better is curtailed since policy and the founding purpose of the US dollar are no longer aligned.

Friday, 25 September 2015

Solving the Power Crisis in Zambia, Permanently

The power deficit Zambia is currently experiencing may be a set-back, but it is also a tremendous opportunity for Zambia as a nation to do some soul searching, to discover a new vision and redefine itself. Zambia does not just have an electricity problem, it also faces a huge water supply paradox. It is a country that is gifted with tremendous water resources in the form of lakes and rivers, and yet the majority of homes in both low and high density areas have no water flowing through their pipes. When it does flow the water pressure provided by national water supply companies is pathetic. It often has to be first stored then boosted for any kind of sensible flow. Problems like this are a clear indication that national development planning is not adequately exploiting Zambia's absolute and comparative advantages. These are advantages in that they are able to yield significant results at low cost. Building on these advantages has long term economic benefits the country has to learn to exploit.

The power crisis in Zambia can be addressed

What I will suggest can be done to address power shortages in Zambia may sound unpopular, but it can have long term benefits for the economy. The government should consider introducing “Green Rates” in Zambia through the councils scattered throughout the country. A Green Rate is a tax levied by local city councils in tandem with Ground Rent, and Property Rates levied and collected monthly by the local council. It is levied on anyone running a business or owning property. The Green Rates demands that a business or dwelling place must generate 50% or more of the energy that it consumes using a renewable resource. If it does not do so then it is required to pay a Green Tax of 50% of its current energy bill that will go toward funding the supply of green or renewable energy. If a household, parastatal, public entity or business spends X amount per month on electricity and it has no renewable energy source (such as solar panels and solar batteries) to compliment its use of electrical power then it must pay a monthly levy of 50% or 50 ngwee of every K1 it spends on electricity to the Lusaka City Council. These funds are strictly used by councils around the country, like the Lusaka City Council,  to import renewable energy products into the country for distribution to disadvantaged areas and/or households  to increase awareness on the use of renewable energy.   In other words this policy shift means every business and every household in Zambia, by law, should not expect to rely 100% for its energy needs on Zesco or any other central power supply source for that matter now and at any time in the future, it must provide a minimum of up to 50% of its own power. What this means is that even if Zambia comes out of this power supply deficit the new policy will change the landscape of power supply in Zambia ensuring it never recurs. 

At 50% of the price of energy consumption Green Rates may sound very high, but they are a cost businesses, parastatals, public institutions and households can get out of by making an effort to acquire solar panels and other renewable technologies and have them installed to generate power. In other words they are high but they can be escaped if these entities exhibit a specific behaviour, in this case investment in solar energy.

Reformulating the vision behind the meaning of ZAMBIA in the SUN
 To achieve this all domestic government (public) and commercial buildings in Zambia will be encouraged by the Green Rates policy implemented by city councils across the country to invest in solar energy and products in order to internally generate a portion of their own energy. This internal generation is required by government to be not less than 50% of the total value of electricity or energy consumed.  This policy entails that anyone investing in an industry in Zambia to factor in the generation of at least 50% of its own energy on site through solar panels, batteries and inverters. Any property in Zambia whether domestic, public or commercial will be expected to have an energy plan and to install solar panels to compliment its electrical energy consumption. To do this schools, colleges, universities, shopping malls, hotels,  office buildings and other commercial buildings as well as government buildings throughout the country will be encouraged and expected  to install solar panels on their rooftops and place solar cladding on vertical surfaces such as walls and other bare surfaces of their buildings that receive sunlight such that they can generate 50% or more of their energy needs. Industries with ample land including agriculture, mining and so on will be expected to invest in solar arrays to compliment their industrial power consumption. Households on the other hand will be expected to install solar panels on their rooftops to generate at least 50% or more of their energy needs. Schools, colleges and universities would be expected to do the same. The city council will even be able to place this levy on the Energy Regulation Board’s own headquarters, which would be required to place solar panels on its walls, roof and bare surfaces to generate at least 50% of its own power. Every commercial and government building must place an electronic billboard publicly showing how much power it is currently generating through its internal solar installation. If a household or business is able to supplement 50% of its power through solar panel installations it is no longer required to pay the Green Rates to the council.From this point onward, if it increases its power generation capacity through solar panel installation it moves from just a consumer of power to a decentralized supplier of power which it sells to entities like Zesco in partnership with the city council. The city council now earns income from the supply of electricity from these decentralized sources rather than from the levy.

Buildings can be assessed for power generation capacity. For instance it may be found that cladding only a quarter of the ERB building in solar panels is enough to yield 50% of its energy consumption then a 100% cladding can still be encouraged as the excess energy can be supplied to the grid to generate income for the ERB and the city councils. If any entity is able to generate more than 50% of its energy through internal solar installations then in partnership with the council it should be able to supply this excess solar generated electricity to the grid and earn a profit from it 15% of which is paid to the local city council. This becomes a continuous revenue line for city councils. Entities would be encouraged to move toward capturing 100% of their potential solar generation capacity by the additional revenues they can earn from selling their excess solar energy.

The aim of this policy

There is a lot being said about old power stations being refurbished and increasing their generation capacity as well as new power stations coming online in Zambia to meet the power supply shortfall. This is certainly good news, however, government policy should lean toward centralized power stations such as these focusing on and specializing on the export of electricity to neighbouring countries and throughout Africa. Meanwhile domestic electricity supply should specialize on decentralized power generation using renewable energy technologies through the introduction of a Green Rates policy.

The policy should be that during the day - everything runs on daylight. This means investment in solar power in Zambia should become so advanced everything can run on solar power and it can power the entire economy. We know that a major weakness of solar power is that it is only available during the day. However, there are two basic solutions to this. The first is that batteries are incorporated into the power supply system. The second fail-safe is that since government policy is to achieve the objective of powering all daytime domestic, government, industrial and commercial activity using solar power during the daytime all power generated by hydroelectric resources should be available for export. In addition to this it should be available to support power requirements at night where batteries are impractical or fail.

The initial aim of this policy can be to create a rapid drive toward more than 2 million 350 watt solar panels functioning throughout the country generating in excess of 560MW of electricity and growing, paid for and enjoyed by both  the public and private sector. Targets can be set by government using the Green Rates policy for the expansion of solar panels in the country for instance to a rate of 400, 000 350 watt solar panels per year country wide. As internal supply grows through this policy the support it creates for the economy also enables entities like Zesco to export any spare capacity created by this policy thereby earning the country foreign exchange. It will also enable Zesco to begin to develop power supply export infrastructure such as power lines and sub-stations across the continent that position it as the single most efficient and largest capacity exporter of electricity in Africa. With this two pronged approach to power generation the export of electricity should be built up to become one of Zambia's biggest diversification strategies led by Zesco and other centralized power suppliers while the domestic focus on decentralized power generation using the Green Rates policy should become one of the largest domestic excursions into the internal generation of power through solar technologies led by city councils throughout the country.

Zambia today grapples with a 560MW deficit in power. 560MW of electricity sounds like a tremendous amount of electrical energy, but in the greater scheme of things it isn’t that much really. A Megawatt is equivalent to 1 thousand Kilowatts of electrical energy or 1 million Watts. Zambia therefore has a shortfall of 560 million watts. This equates to roughly 1.6 million 350 watt solar panels. Apply economies of scale to the problem by diverting the potential task of building new power supply stations or acquiring 2 million panels from one investor to every business, parastatal, government ministry and every household in Zambia through the right policy and it is not such a difficult objective or target to achieve. If funds to build grand hydro-electric projects are simply not available up front, and even if they were the possibility of prolonged drought reduces the reliability of hydro-electric power then the fall-back and buttress for energy supply can be decentralised to businesses, households, parastatals and other public entities with buildings and space to mount solar arrays, equip rooftops or clad buildings with solar panels. If everyone is encouraged to contribute to the generation of power through the Green Rates policy a way through the problem can be found. Banks could also step in to provide the funding for government buildings, households and commercial buildings to implement solar systems that generate power as it would make more sense to pay the bank for the equipment, thereby avoid the levy and eventually be free of it and in a better power supply situation. The approach I would recommend for Zambia going forward is a surge in investment in solar energy and a decentralisation of power generation systems and focusing large hydro electric projects on generating power for export rather than domestic consumption alone using a Green Rates policy implemented by local city councils throughout the country.

A small home only requires a 10Kva or 10Kilowatt power supply system and about 16Kilowatt system for a large home. There are solar panels today that have an output of 350watts but only occupy a surface area of 1mx0.6m or 0.6 square meters. The Green Rate policy would be in place as a long term strategy to encourage all domestic  households, government buildings and commercial entities to invest in solar power and internally generate as much 50% of their own power should be a source of self-sufficiency.

Investment in Solar Energy

In line with this policy the Energy Regulation Board (ERB) or local councils would be encouraged to buy into and invest in a leading manufacturer of solar technologies such as modules (panels), batteries, inverters and a host of other software and hardware with the view to creating a partnership that culminates in opening plants in Zambia that manufacture these applications. The ultimate objective is for all solar panels and accessories to be manufactured in Zambia for supply to the local market. This leads to job creation and an industry capable of creating employment at all levels of education.

Since the national policy would be focused on the maximization of solar energy as a national vision it would only make sense that Zambia begin to invest in the manufacture of solar technologies in order to supply the economy and the region with these products. This new industry would also be necessary to repair, refurbish and recondition spent solar panels to restore their power generation capacity at a fraction of the cost of replacing them with entirely new ones. As each of Zambia's growing stock of millions of solar panels ends its 20 year cycle it is repaired, refurbished, enhanced with the whatever new developments in technology there are and returned to duty ensuring that the national stock of solar modules remains an ongoing asset. This policy would foster job creation, save foreign exchange and encourage schools, colleges and universities in Zambia to conduct research in the enhancement and advancement of solar energy.

Mitigating against risk of power shortages

It makes strategic sense for Zambia to invest in solar power as an equal and complimentary source of power generation to hydro-electric power. This is because Zambia may face the threat of power loss from two conditions, that is, drought or lack of adequate sunlight created by cloudy days. When there is insufficient rainfall solar power will neutralise any threat to power supply, and when it is night-time or particularly cloudy due to heavy rainfall hydro-electric power will maintain required levels of power supply. The two systems compliment one another and therefore make perfect sense for government to pursue in tandem.  Furthermore, since solar power is decentralised, meaning it is provided from solar farms and any available surface in the country it enhances Zambia's national security in that hydroelectric power stations, which are centralised are easy targets. Taking out a few hydro-electric stations would entail that the entire country is without power. Solar panels distributed across the country ensure that any damage to solar panels will only affect a small service area whilst the rest of the country continues to generate its own decentralised electricity through local solar panels and systems.

The Dream or Vision of this Policy

Imagine 2 million 350 watt solar panels and counting generating electricity throughout Zambia. It would be great to see the Energy Regulation Board’s stylistic building clad almost completely in solar panels, with an electronic bill board showing digitally how much electricity the building is generating. This sight alone would speak volumes and set the tone for a vision of Zambia as a country that maximises the use of an abundant renewable energy source such as solar power. The once popular slogan “Zambia in the Sun” would not only mean Zambia is a great tourist destination, but in practical terms is also a country that believes in generating power through a resource it has abundantly namely, the sun.

Green Rates Policy: Bare concrete surfaces and rooftops of Government
buildings would be clad in tasteful solar paneling

It would be superb to see an iconic building like FINDECO house cover all of the square panels on its exterior walls and all of its upper concrete crown with power generating solar panels. It would be fantastic to see the Protea hotels at Arcades, the MTN, Zamtel and Airtel buildings, the Zanaco building and so on  almost completely clad in stylistic solar paneling.

Imagine iconic buildings across Zambia completely clad in tastefully arranged
solar panels that generate surplus power
It would be great to see Solar arrays rising up from behind the long fence that surrounds State House, soaking up the sun and expressing to everyone driving down Independence avenue and Los Angeles road that Zambia is a country investing in a vision to become a solar power nation beginning with what is the most important government building in the country. Imagine the Ministry of Finance, Secretariat, Ministry of Agriculture  and the many new and old government buildings clad in solar panels as a statement of this new  policy. Wouldn’t it be great to see solar panels on the rooftops of homes in any low or high density suburb one passes through in Zambia generating energy and contributing to the national grid with power shortages a thing of the past? This dream is achievable with the right strategy and policy.

Rooftop Panels and Solar Arrays: Zambia can introduce a policy to harness solar power that stretches into the future.