Creating a Sustainable Economic System
For the last 60 years western countries have been following the following mantra: the economy needs to grow. After WWII economic growth has been chosen as the number one goal, and GDP (Gross Domestic Product, the total sum of all income in a country) has been used to measure see how well a country is doing. The logic behind this choice was as follows: if people have more income then … [Read more...]
We have seen that it is the banks who create new money. Banks create new money when a new loan is made. And it is the banks who decide who gets a loan and what for, and who doesn't. So ultimately it is the banks who decide where the money goes. And the banks interests are not necessarily in line with that of society. Banks only want one thing: to make a profit. And lots of it. Let's look into … [Read more...]
This may seem a strange question, but the answer may surprise you. Most people think that money is created by the Bank of England. After all isn’t that what it says on a ten pound note? And indeed coins and banknotes (commonly referred to as “cash”) are put into circulation by the Bank of England. But today only 3% of the money in circulation is … [Read more...]
If we want to understand the problems with current financial system it is a good place to start looking into what money really is. In principle anything could be used as money: nautilus shells, feathers, coins, pieces of paper… It is widely regarded that anything that is used as money should have three characteristics: Characteristics of Money Store … [Read more...]
We have to look at the Economy in in wider context: 1. Energy 2. The Environment 3. The Economy Only when these three elements are in balance with each other can we have a sustainable system. So what is the situation at the moment? 1. Energy Peak oil > energy is becoming more scarce and more expensive. Energy can't grow. 2. The Environment We are … [Read more...]
We are trapped in a consumer society. How do companies get people to buy all the stuff they produce? They use three mechanisms: 1. Advertising. "Just buy this product and you will be happy". Or something like that. 2. Planned Obsolescence - things are made to break. Remember the days when a TV lasted for 20 years? Not anymore because they want you to buy a new one after 3 years (if you … [Read more...]
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