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FINANCE: what it is, what it does




First Premise

Etymologically the word “FINANCE” derives from the Latin sacellus, a purse for coins.

Sakellarios (Greek: σακελλάριος) is an official entrusted with administrative and financial duties (cf. sakellē or sakellion, “purse, treasury”). The title was used in the Byzantine Empire with varying functions, and remains in use in the Eastern Orthodox Church.

In the Byzantine times the sakellion of the emperor also kept records of imperial monasteries and their property. Therefore the sakellarios was also an administrative title, which was given from the 7th century to the general comptroller of the state finances, i.e. the finance minister of the Byzantine Empire. Etymologically the word derives from the Latin sacellus, a purse for coins. Note that the Modern Greek word sakoula, bag, has the same origin. The Byzantine Empire was the legal heir of the Roman Empire and its founder, Constantine the Great, was a Roman. Thus, the official in charge of the emperor’s pouch, i.e., the treasury, was the sacellarius.

As monasteries also have treasuries, the title is also found in the Greek Orthodox Church hierarchy. In later years the title was replaced by that of the Grand Treasurer (Megas Thysaurophylax); however it remained unaltered in the Ecumenical Patriarchate of Constantinople’s structure. In the Synod of Ferrara-Florence (1438-9), that was supposed to unify the Greek Orthodox and the Catholic churches, the Ecumenical Patriarch had included in his entourage the Megas Sakellarios (among other officials and bishops).


Second Premise


In Western Culture Finance is the study of how investors allocate their assets over time under conditions of certainty and uncertainty. A key point in finance, which affects decisions, is the time value of money, which states that a unit of currency today is worth more than the same unit of currency tomorrow. Finance aims to price assets based on their risk level, and expected rate of return. Finance can be broken into three different sub categories: public finance, corporate finance and personal finance. Finance managed money.

Finance manages money nowadays in the form of “Fiat money”, i.e. no more coins containing a real worth of gold or other appreciable metals, but just banknotes and overall telematics transfers in which the issuer states the value or local currency values the transaction.

The European Central Bank (ECB) is the sixth of the seven institutions of the European Union (EU) as listed in the Treaty on European Union (TEU). It is the central bank for the euro and administers the monetary policy of the 17 EU member states which constitute the Eurozone, one of the largest currency areas in the world. It is thus one of the world’s most important central banks.

The capital stock of the bank is owned by the central banks of all 27 EU member states. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt, Germany. The current President of the ECB is Mario Draghi, former governor of the Bank of Italy.

Da Wikipedia, l’enciclopedia libera.
La Banca d’Italia, giornalisticamente nota anche come Bankitalia, è la banca centrale della Repubblica Italiana. Dal 1998 è parte integrante del sistema europeo delle banche centrali (SEBC).


Logo della Banca d’Italia

La Banca d’Italia è un istituto di diritto pubblico come stabilito dalla legge bancaria del 1936 e dallo stesso statuto all’articolo 1, 1 comma[1], e come ribadito anche da una sentenza della Corte Suprema di Cassazione[2].

Le quote di partecipazione al suo capitale sono per il 94,33% di proprietà di banche e assicurazioni private, per il 5,67% di enti pubblici (INPS e INAIL)[3].



Third Premise


Islamic economics refers to the body of Islamic studies literature that “identifies and promotes an economic order that conforms to Islamic scripture and traditions,” and in the economic world an interest-free Islamic banking system, grounded in Sharia’s condemnation of interest (riba). The literature has been developed “since the late 1940s, and especially since the mid-1960s.”[1] The banking system developed during the 1970s.[2] The central features of Islamic economic literature have been summarized as the following: “behavioral norms” derived from the Quran and Sunna, zakat tax as the basis of Islamic fiscal policy, and prohibition of interest.[1]

In Shia Islam, scholars including Mahmoud Taleghani and Mohammad Baqir al-Sadr developed an “Islamic economics” emphasizing the uplifting of the deprived masses, a major role for the state in matters such as circulation and equitable distribution of wealth, and a reward to participants in the marketplace for being exposed to risk and/or liability.

Islamist movements and authors generally describe an Islamic economic system as neither socialist nor capitalist, but as a “third way” with none of the drawbacks of the other two systems

Forth Premise


Following G. Auriti’s theory, money issued by any organism has no worth. The first drawer gives it worth producing real products with it and exchanging coins and banknotes with other people.



For our reasoning we will use any argument of mathematical logic.



  • If money belongs to the community of a State, than the ownership cannot be granted to private banks like, for instance, the Banca d’Italia, which is also member with full power of the European Central Bank.


  • If money as “fiat money” has no real worth but receives worth by the first borrower, therefore any eventual interest rate shall be paid to the first borrower, not to the issuer.

No Seigniorage is due for”fiat money”, which costs nothing to the issuer.


  • If a State, only owner of his money, is forced to buy money from banks, then this reasoning generates a contradiction.


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