If We Don’t Change the Way Money Is Created and Distributed, We Change Nothing
The only real solution in my view is to create and distribute money at the base of the pyramid rather than to those in the top of the pyramid.
Many well-intended people want to reform the status quo for all sorts of worthy reasons: to reduce wealth inequality, restore democracy, create good-paying jobs, and so on.
All these goals are laudable, but if we don’t change the way money is created and distributed, nothing really changes: wealth inequality will keep rising, governance will remain a bidding process of the wealthy, wages will continue stagnating, etc.
If the money creation/distribution system isn’t transformed, “reform” is nothing more than ineffectual policy tweaks that offer do-gooders the illusion of progress.
Mike Swanson of Wall Street Window and I discuss the The Future of Currencies and CHS’s New Book A Radically Beneficial World (33:21)
Few are willing to admit that the way we create and distribute money at the top of the wealth pyramid necessarily generates increasing wealth inequalitybecause once we admit this, we realize 1) the money system itself is the source of inequality and 2) we have to change the money system if we want to stave off the inevitable rise of wealth inequality to the point that it generates social disorder.
In the current system, money is created by central and private banks at the top of the wealth/power pyramid, and distributed within the top of the wealth pyramid. The only possible output of this system is rising wealth inequality and debt-serfdom for three reasons:
1. Those with first access to nearly free money can outbid savers and serfs who must borrow at much higher rates of interest to snap up income-producing assets. In effect, borrowing unlimited sums at near-zero rates guarantees that those with this privilege have a built-in advantage in buying income-producing assets.
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