{"id":5198,"date":"2015-02-03T06:35:47","date_gmt":"2015-02-03T11:35:47","guid":{"rendered":"http:\/\/olduvai.ca\/?p=5198"},"modified":"2015-02-03T06:35:47","modified_gmt":"2015-02-03T11:35:47","slug":"the-mainstream-money-mess-three-aspects-and-what-they-mean-for-new-money-forms","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=5198","title":{"rendered":"The Mainstream Money Mess \u2013 three aspects\u2026 and what they mean for new money-forms"},"content":{"rendered":"

The Mainstream Money Mess \u2013 three aspects\u2026 and what they mean for new money-forms<\/a><\/h3>\n

Background<\/strong><\/p>\n

This article looks at three of the most poisonous aspects of Mainstream Money from the perspective of a currency designer exploring new money-forms:<\/p>\n

i) the interest on debt \u2013 97% of money issued is created as interest bearing debt with horrendous consequences
\nii) capital misallocation \u2013 most of that credit is allocated away from the real economy, and with no strategic guidance on priorities
\niii) the monetisation of everything \u2013 the implicit narrative that anything that cannot be expressed in quantitative (monetary) terms has no worth<\/p>\n

Many books and articles have been written about these three factors, and they are thankfully receiving increasing amounts of mainstream media coverage. This article attempts to briefly summarise the state of play in each area, from a particular perspective \u2013 that of the currency designer envisioning new currencies that might avoid the excoriating societal, economic and ecological impacts of such built-in dysfunction on future generations.<\/p>\n

The Problem with Interest<\/strong><\/p>\n

Interest can be seen as capital-rent. Funds flow from a lender with more money than they curently need to a borrower with less money than they need. By definition the interest flow is from the poorer to the richer. So rather than the \u2018trickle-down\u2019 effect once postulated, we have a \u2018trickle-up\u2019 effect. In previous ages the power imbalance in the borrower-lender relationship has been partially addressed via debt forgiveness (jubilees) and through bankruptcy law. The current neoliberal-designed narrative emphasises the primacy of the debt \u2013 the \u2018free will\u2019 of the borrower and the unfairness of any write-downs to the lender. Thereby all lenders have licence to be predatory.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The Mainstream Money Mess \u2013 three aspects\u2026 and what they mean for new money-forms Background This article looks at three of the most poisonous aspects of Mainstream Money from the perspective of a currency designer exploring new money-forms: i) the interest on debt \u2013 97% of money issued is created as interest bearing debt with […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[3146,195,2994,3147,536],"class_list":["post-5198","post","type-post","status-publish","format-standard","hentry","category-economics","tag-capital-misallocation","tag-debt","tag-interest","tag-monetisation","tag-money"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5198"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5198\/revisions"}],"predecessor-version":[{"id":5199,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5198\/revisions\/5199"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}