How is money created? What is the connection between our money creation system and the oxymoronic obsession of 'sustainable economic growth' on a finite planet?
Adam Fenderson for Food Fight 3CR
RIP Richard Douthewaite 1942-2011
Mike Ruppert has said, "until we change the way money works, we change nothing." So what does that even mean? Our monetary system works on a very particular model, one with some very significant consequences.
'Recovering economist' Richard Douthwaite, author of Growth Illusion, Short Circuit and The Ecology of Money, explains exactly how the private banking, debt-based monetary system -- the basis of all national currency systems -- leads to the destructive and desperate need for economic growth. The money system has demands at suicidal odds with the planet's finite resources. The mechanics of the money system are remarkably simple, and yet so under-appreciated. That said, you may need to listen to this a couple of times, and maybe consider a little extra reading (Richard's The Ecology of Money is a good place to start -- available for free at the feasta.org website.)
Richard says, "this is why every government -- no matter what it's political complexion -- has to pay primary attention to maintaining short term economic 'sustainability' which in it's terms means economic growth as opposed to looking after the environment or looking after social sustainablility."
If the money system needs growth, is collapse unavoidable given the coming contraction of the world economy implied by peak oil and gas? Richard says yes and unless new models are adopted, monetary dysfunction could last decades.
In this context, alternatives might be adopted. Richard has developed alternative monetary models for a global soft landing, including the global EBCU concept.