World Financial Crisis – How we got here and what must be done to save civilization

October 2008

Part One –  How the current economic crisis came about.

In the opinion of the vast majority of world economic experts and leaders the global economy is sliding into a crisis that could exceed even the 1929 crash and ensuing great depression of the 1930s. For the average citizen this is already to painfully obvious. If the world is to avoid catastrophic global economic meltdown and all the social-political chaos that means, then it is necessary do things in a totally different way than what created this havoc.

The Debt System

The past and current economic system is based on charging interest for lending money. That is what banks and financial institutions do. But first of all what is money and where does it come from. Money is said to be a medium of exchange. What does that mean? It means that there is a universal social agreement that currency represents the value of natural resources and the products of human labor. This universal social agreement is enforced by cultural, economic, political, legal, and military institutions. In other words money is in age old institutionalized cultural habit.

In its proper use money serves a useful function. It speeds up the exchange of goods and services by allowing people to trade goods and services in a faster more fluid way than one to one barter allows.

Who creates currency? Money is issued by some cultural institution usually a national government or a central bank. That institution and the people who control it therefore control the money supply. To whom is that money issuing institution accountable? This is the most fundamental question of social justice. If the money issuing and lending institutions are accountable to the general human population that is to the people in an enforceable way, then social harmony and functional civilization is possible. If money issuing and money lending is controlled by a small self serving minority, regardless of what it calls itself, then that controlling minority becomes parasitical on the body politic and a culturally pathological condition sets in. When parasites get out of control they kill the host and themselves. In socioeconomic terms this means the debasement of culture and the destruction of civilization through poverty, environmental degradation, slavery, and war.
Continue reading “World Financial Crisis – How we got here and what must be done to save civilization”