Many people see the prime evil of our money system, that money is created from debt. I disagree. IMO debt based money in itself is not the problem. The problem is interest
taking, thereby increasing the original loan, forcing the borrower to
increase profits, maximise profits at the cost of environment and social
justice and another aspect of the problem are the standards by which loans are approved of.
In the alternative community there is a lot of opposition against money created from debt. To me this is irrational and misguided. We fall into our own scarcity trap, our own envy trap, as if it was sort of immoral, that we, ordinary people, have to work hard for money and others just create it out of thin air.
Money created from debt is like an expression of trust in the vitality and creativity of people. There are so many great people, who have really fantastic ideas, some of which need funding in order to put them into action. If a society would limit it's money lending to money that has previously been worked for and saved up then it will throttle the creativity. Money would be scarce. That is not desirable.
Projects should be vetted carefully and if they seem viable to good standards - environmentally and socially - then trust can be given, funds can be created in order to facilitate future development. That is the good side of money created as debt. It says basically: Your idea is good, your attitude is good, I trust you that you will make it work and we as a society advance you the money so that you can get started now and will in the future be able to validate our good faith. It is like playing the ball forward.
In the current system projects are not vetted against good standards. Banks are only interested in securities. They don't look at the social and environmental costs or the general viability of the business ideas. If a person has lots of real estate for example, the bank will lend money without further questions. This means money is mostly lent to rich people, who devise projects that are capable of creating maximum profits.
If this maximising of profits is taken out of the equation, meaning there is no interest taken on the loan and if the business ideas are vetted against environmental and social standards then small creative business ideas will be in an advantage and money created on trust can be utterly beneficial. It could and would facilitate the creation of abundance for the 99%.
Great link to understanding economics: The Sarkar Game
And a link to exploring future economic models: http://www.metafuture.org/
In the alternative community there is a lot of opposition against money created from debt. To me this is irrational and misguided. We fall into our own scarcity trap, our own envy trap, as if it was sort of immoral, that we, ordinary people, have to work hard for money and others just create it out of thin air.
Money created from debt is like an expression of trust in the vitality and creativity of people. There are so many great people, who have really fantastic ideas, some of which need funding in order to put them into action. If a society would limit it's money lending to money that has previously been worked for and saved up then it will throttle the creativity. Money would be scarce. That is not desirable.
Projects should be vetted carefully and if they seem viable to good standards - environmentally and socially - then trust can be given, funds can be created in order to facilitate future development. That is the good side of money created as debt. It says basically: Your idea is good, your attitude is good, I trust you that you will make it work and we as a society advance you the money so that you can get started now and will in the future be able to validate our good faith. It is like playing the ball forward.
In the current system projects are not vetted against good standards. Banks are only interested in securities. They don't look at the social and environmental costs or the general viability of the business ideas. If a person has lots of real estate for example, the bank will lend money without further questions. This means money is mostly lent to rich people, who devise projects that are capable of creating maximum profits.
If this maximising of profits is taken out of the equation, meaning there is no interest taken on the loan and if the business ideas are vetted against environmental and social standards then small creative business ideas will be in an advantage and money created on trust can be utterly beneficial. It could and would facilitate the creation of abundance for the 99%.
Great link to understanding economics: The Sarkar Game
And a link to exploring future economic models: http://www.metafuture.org/
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