The present global economy is caught in a catch-22 of its own making.
After the fall of communism, capitalism was left as the only show in town, and what a show it is turning out to be.
By the beginning of the 21st century the world’s environment was in critical decline.
Oceans are turning acidic from atmospheric CO2 threatening marine life, melting glaciers are flooding cities where soon little water will flow at all, species are disappearing from the Earth at a faster rate than during the dinosaur extinction 65 million years ago.
Much is being said about the importance of democracy and how it brings growth and prosperity, but the truth is that to date it has indeed enriched a few at the cost of the rest of us.
Economic growth these days is usually associated with technological changes, it is not for the benefit of the average person as is commonly believed. It is solely to create enough currency to keep the faulty global economy treading water so it doesn’t collapse.
Politicians proudly report strong national economic growth statistics, perpetuating the illusion that this implies some kind of bonus for the average person, yet they systematically ignore ballooning national debt as though it is inconsequential.
The design of the global economy demands that by 2019 the economy will be twice the size it was in 2000.
At its present rate of growth, by 2059 the global economy will be ten times its 2000 size. But Earth cannot sustainable support a global economy the size it was in 2000. So in order to survive, the global economy is compelled to keep growing like a cancer, at an unsustainable rate that will kill its host.
This self-destructive design is a direct result of the flaw in the global money system which is guarded by Capitalistic profit to the dethronement of Values, causing vast inequalities which is the root cause of to days terrorism, and wars.
We we all know the scenario the more you grow the bigger the appetite till you either explode or there is nothing left to consume. Self destructive, not what they call sustainable growth.
The Capitalist economic plan we hear every day of growth, growth is running out fodder and nothing about the Internet, solar power, or 3D printing will change the fact that individuals have conflicting needs and desires and if it does not change courses soon, ( which it is incapable of doing so) it will leave all of us including the rich standing up to our necks in Shit. ( See previous post on capturing greed at the heart of Capitalism)
The best stuff bubbles up from below, when will markets and technology be allowed to amplify the ideas of people and give voice and choice.
Real change requires that we address both the bottom-up and the top-down, that we design our efforts with beneficiaries front and center, and that we use evidence of real impact in the lives of the poor as the indicator of whether we’re doing it right.
But what do we see these days only an erosion of the public safety net, the increasing prevalence of low-wage employment, and decreases in low-wage earnings have combined to place low-income families under constant pressure as they struggle to work, to care for their families, and to maintain their access to public benefits.
Let’s assume, like most corporations and politicians do, that the world’s resources are endless and that no environmental threats exist. Even if that were the case, the global economy is self-destructive for an entirely different reason.
During the 20th century, subtle changes to global money systems turned currency from a sustainable means of exchange into one of the most destructive agents on Earth.
However, most of us were so busy struggling to get some money that this mutation of currency was mostly overlooked. The world is now obliged to pay back to banks more money than the banks ever create in the first place, an obviously impossible task.
Solutions exist, but the blindness that created the problem also stops the solutions from being seen.
Over the next 10 to 20 years, environmental destruction will escalate exponentially as we race towards the meltdown of civilization as we know it. Capital accumulation is driving ever-greater wealth inequality?
Ironically, the harder we try to alleviate this financial shortage, the faster we create it.
What is the solution?
Fundamental changes need to be made to align the global money system with reality. Money supply must be restructured into a sustainable means of exchange that serves countries rather than destroys civilizations.
The deadly aspect of our modern money system stems from the way money is now created.
Just look at the below example.
Modern money is created via credit by the creation of debt.
If you borrow £100 from a bank, the £100 is not transferred to your account from existing currency held at the bank.
The £100 is created into existence by the loan.
You get £100 to spend, but you still owe the bank a £100 debt.
The money created is balanced out by the debt created.
As the loan is paid back to the bank, the repayments do not go into bank coffers but cancel out the original debt owed to the bank.
The repaid loan money is literally cancelled out of existence again.
So where do the banks get their profit from lending?
From the interest that is paid to the bank during the repayment of the loan.
The interest paid on loans is the fatal flaw in our modern currency systems.
Say during the term of the above loan, there is £200 generated in interest. This means that while the original hundred is created and then cancelled out, there is an extra £200 that must be found somewhere.
The only possible place this interest money can now be found is from circulating money generated by a different loan.
This, of course, means that even the capital of the second loan cannot be paid back, as there is now a shortfall of money in circulation.
The second loan amount – plus its interest – can only be repaid via money generated from yet further loans, and so on. (Quantitative Easing)
97% of the Money in the world is Debt, run by neoclassical economics which is divorced from reality. Giving us Socialism for the rich and Capitalism for the poor.
Perhaps we could take a leaf from Muslim Banks.
Salam Islamic or sharia Banks offer interest free loan because the Bank gives loan through the method of buying and selling goods with an agreed margin which can be paid in installments
The question is where do we go next? ‘After Capitalism’
The key to understanding development is to remain open to the true complexity of the global processes of innovation and diffusion and the myriad pathways through which politics, geography, economics, and culture can shape the flows of technologies around the world.
An increase in the capacity of an economy to produce goods and services, compared from one period of time to another perhaps is not the best model, as we have ending up being governed by corporations debasing the value of currency.
Automation is replacing (for lack of a better word) the working classes, The Internet and the resulting social media has caught all of our world organisations with their pant down. Antibiotics are being defeated, you have to live longer to qualify for a state pension, you are consistently pressurized to buy crap you don’t need, and our politicians don’t know where to turn next.
All of these developing problems will overthrow capitalism as the world’s dominant economic model.
The cost of one modern heavy bomber is this: A modern brick school in more than 30 cities. It is two electric power plants, each serving a town of 60,000 population. It is two fine, fully equipped hospitals. It is some fifty miles of concrete pavement. We pay for a single fighter with a half-million bushels of wheat. We pay for a single destroyer with new homes that could have housed more than 8,000 people.
Our digital wallet will have to have a conscious if we are all not to end up hoodwinked into a lethargy of Sport, Celebrities cooks, and reality TV.
The age of Consequences has started.
What is left unsaid has, with the Internet no place to hide.
Our inability to grasp the new world is coming to an end. Its goodbye to collective disillusionment and I don’t give a dam.
Its time to put a stop to Greed and distribute wealth fairly by Putting a 0.05% commission on all Sovereign Wealth Funds Acquisitions , on all High Frequency Stock Exchange Transaction and on all Currency transactions over $20,000. ( See previous Posts)