Stiglitz: “It was Hoover’s politics allowed the great recession to get as big as it was.”
“A country faces an economic and political abyss: the government is on the brink of bankruptcy and pursues fierce austerity policies; public employees take huge pay cuts and taxes are drastically increased; the economy slumps and unemployment rates explode; people fight each other on the street while banks collapse and international capital flees the country. Greece in 2011? No, Germany in 1931.” (src The Guardian)
“What is particularly fatal is that an ever-growing number of young people have no possibility and no hope of finding employment and earning their livelihood. Despair and the political radicalization of the youthful section of the population are the consequences of this state of things…”
Will the managers, the CEOs, the Banksters, the Bushs, the Rockefellers, the Junkers, the Clintons, the Merkels, the Scheubles, the JPMorgans, the Barclays, the Deutsche Bank, the Wall-Street listen? Or will they shut their ears – and do “business as usual” knowingly they can not continue forever. “Ignorance is DEATH not bliss.”
From this Video:
Interview with Bernard Lietaer – Economist, author and professor
Title: Interview with Bernard Lietaer – Economist, author and professor
Recording date: 20th June 2013
The 2nd International Conference on Complementary Currency Systems is held from the 19th to the 23rd of June 2013 in The Hague, The Netherlands. The conference is hosted by ISS. It offers space to academics, local government officials and practitioners alike to organize panels, workshops, and other session formats that participants see fit to stimulate the exchange of ideas and experiences.
Community and complementary currency systems include initiatives like the LETS, time banks, the Argentine Redes de Trueque, the Ithaca Hours in the USA, the German Regiogeld, the Brasilian community banks with surrogate currencies, the SOL currency in France, the ‘Transition Towns’ in the UK, the RES in Belgium and the Wir in Switzerland, mobile-phone payment systems in Uganda and Kenya, and for digital remittances in El Salvador.
All patriarchal societies in history have always imposed a single currency with positives interest rates – top down – it is actually an extraction device and we still have that.
All societies that honor feminine values (Matrifocal societies like Egypt – or central middle ages) use several currencies – an ecosystem of currencies – some of these currencies which are identical to the patriarchal one’s are used for long-distance-trade.
more sophisticated: the have “demurage” – a negative interest rate – which is a penalty in keeping and storing money – so it becomes a pure medium of exchange – not at all a store of value – you would be crazy to store a value when there is a penalty in keeping.
2nd Level/Layer) about 100 years old:
All fields of human sciences including economics but also sociology, anthropology have all completely polarized between capitalism and communism – as two poles of interpretation of how to organize a modern or industrial society.
That polarization has created a tension on everything that is different between them – there are millions of books about what is different between capitalism and communism – there are zero books that study
what they (capitalism and communism) have in common – blind spot – that is:
the use of a singular currency, on the national level, created by bank-debt, with interest.
i would add: they both failed on preventing corruption
in communism / soviet system: the banks were owned by the government
in capitalism – the governments only own the banks when the banks fall apart
… the rest is the same.
3rd Level/Layer): The Academic BlindSpot
try to publish an article in the quarterly Journal of American Economics on questioning the money-system – no way you get it published in this “prestigious” journal – it is locked.
i have no problems with economics using mathematics – but what you have is the evidence and the proof – that the mathematics they use is wrong – the mathematical model is wrong since the 19th century – we haven’t gotten out of it – we are still talking about prices being formed by supply and demand and automatically getting to an equilibrium – in fact – the same product in the same city has very different prices depending on the supermarket and it should not be there – according to that model – so reality is proofing us – that this is a very abstract way of looking at reality that does not fit the way economics really is.
When you do an open system – then the model that we are proposing which is a complex flow network (like in any natural ecosystem) in which money circulates is the valid one – and we have the proof from thousands of examples of natural ecosystems that this is not stable – unless you put diversity and inter-connectivity within a particular range.
We need to rethink – which mathematics are used and which theoretical framework is being used – which just requires rethinking the entire economic field – which is of course very exciting – for those who want to create something.
There is a huge amount of work to be done – everything needs to be redone.
it has been attempted by Nicolas Georgescu-Roegen (Mathematician, Statistician and Economist) in the 1960s/1970s – but has never been integrated back into economics – has never been integrated into mainstream-economics.
I found it interesting that Samuelson who wrote the preface of Georgescu‘s book basically said: all economists should read this book.
Nicolas Georgescu-Roegen is the scholar of the scholars – and the economist of the economists – really hardcore – and no economist should be ignorant of the implications of entropy in the field – because it really questions everything.
Samuelson himself has never changed his book (to reflect that) – it ran through another 20 editions without changing it (in that direction in any way) – so there is an ideological blockage.
i see in the economic framework – besides the definition of an open system – as opposed to a closed system – which is the way it is usually taught – is what do we do what they call “extranalaties”.
In the economic field you have a theoretical framework that is perfectly rational and perfectly mathematical coherent – but it is not related to anything outside of it’s framework.
This is a structural problem – and if you deal with structural problems you need to have structural solutions – if you don’t you just gonna repeat the cycle.
What politicians, economists and (!) society (your father/mother) say:
“If you would work harder – we would not have economic problems” (governments would not be in debt and so on):
FALSE! if there are “STRUCTURAL PROBLEMS IN YOUR ECONOMIC MODEL.”
What i am proposing as a model is: You have the economy as a center – and you have around it the human-social system were economics is a subset of – there are lots of things we do that are not economic.
And the social-system itself is a subset of the biosphere – so the three fall into each other – and therefore there are no analogies in that approach – that is the model – which is called
It is a “poetic” philosophy, mathematics, and science of economics.
It is the quintessence of the thought that has been focused on the economic reality.
Henceforce all economists must take these conclusions into account lest their analyses and scholarship be found wanting.
“The entropy of the physical universe increases constantly because there is a continuous and irrevocable qualitative degradation of order into chaos.
The entropic nature of the economic process, which degrades natural resources and pollutes the environment, constitutes the present danger. The earth is entropically winding down naturally, and economic advance is accelerating the process. Man must learn to ration the meager resources he has so profligately squandered if he is to survive in the long run when the entropic degradation of the sun will be the crucial factor, “for suprising as it may seem, the entire stock of natural resources is not worth more than a few days of sunlight!” Georgescu-Rogen has written our generation’s classic in the field of economics.”Library Journal
What is Entropy? Same as Diffusion? Seems similar.
“All activities in nature will drive things towards entropy = disorder, so things naturally get disordered.”
“The only way to prevent things from getting disordered – is to apply some energy to them – your body for instance is very ordered and the only way it stays ordered is that you spend a ton of energy holding it together in an ordered fashion – the day that you die – you no longer are expending any energy that hols your body together and your body will fall apart.”
The following provide more detail about the BIS’s role and evolution:
Toniolo, G with the assistance of P Clement (2005): Central bank cooperation at the Bank for International Settlements, 1930-1973, Cambridge-New York: Cambridge University Press.
Borio, C, G Toniolo and P Clement (eds) (2008): Past and future of central bank cooperation, Cambridge-New York: Cambridge University Press.
Lefort, D (ed) (2009): “Bank for International Settlements (BIS), Basel, Switzerland”, in International Encyclopaedia of Laws, Alphen aan den Rijn: Kluwer Law International.
James, H (2012): Making the European Monetary Union: the role of the Committee of Central Bank Governors and the origins of the European Central Bank, Cambridge-London: The Belknap Press of Harvard University Press.
See also this is the biz, the booklet produced for the BIS’s 75th anniversary exhibition.
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