Systems

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let me get this straight:

  • all in for international cooperation

completely against:

  • shipping jobs where they are cheapest and no laws prevent dumping poison into the landscape
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  • every government can (instead of moving to over crowded cities for jobs)
    •  pay rural citizens to stay in the countryside and plant trees where
    • the local governments need to designate areas for tree planting
  • on the next climate conference the major CO2 contributors of past and present should be present
  • and they need to come up a number:
    • every year we pledge to designate and finance 1000 hectare (10.000.000 square meters) for (diverse) tree planting
      • and pledge to work those forests sustainably & responsibly
    • the mull berry tree shown above is said to handle droughts well (there are for sure other well suited trees as well)
      • while at the same time providing shade for other plants
      • while at the same time providing humans with very delicious fruits

a lot has been said & studied about the very expensive consequences of climate change (yes there is natural climate change, but human made climate change is on top)

need to talk & implement more solutions!

mulberry tree in the desert: https://www.pinterest.com/pin/properly-staked-mulberry-tree–123708321001774198/

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first of: “economics” is where “believe” and “science” meet.

Often it is not clear, what parts of economics is “real science” and what is “make believe”.

What is for sure: all “modern” monetary systems are FIAT systems,

this means, some entity (state or bank, usually “independent” bank of banks)

  • prints an undefined amount of money (cash)
    • as much as it deems to achieve it’s goals
      • goals could be:
        • 0% unemployment
        • 2% inflation
        • reversal of climate change
        • peace & prosperity for all or just for the top 0.1%
        • what have you
  • it loans/lends that cash to private banks
    • the private banks are (supposed) to lend to productive citizens, that actually give the money it’s value, by adding value to society
      • by designing, building, creating, (mass) production of clever, innovative products & services that help people
        • stay alive & healthy
          • clean water & food
          • healthcare
        • get to work or to visit someone
          • transport
        • communicate
          • phones, computers, wires that connect computers…

So ask yourself: What gives money it’s value?

As it has no intrinsic value (it is not gold and since the 70s the US-$ is (thanks to Nixon and the Vietnam war) not linked to gold anymore).

The German Mark after ww2 was one of the first FIAT systems, economists predicted it will never work.

But it worked, because Germans worked hard for that paper money, even if it can not be converted to Gold or Silver or “guaranteed amount of bushels of grain” or this or that product of scarcity (that in the terms of grain, actually provide some purpose).

So does printing more money cause inflation?

Sure it does.

Ask yourself: What does a bank produce?

Actually a bank produces only one thing: loans.

If it does not produce loans, it’s like a factory with no output (lost it’s purpose).

The question is: If the banks fail at their core task, can the state step in, and lend money to citizens that want to create those innovative products = jobs?

Also What is the best way to battle inflation?

Imho it would be:

  • a actually working banking system that actually produces loans into the hands of innovative (entrepreneurship) citizens that want to add value
    • if the state does not want to take over that role, it needs to force banks to do their job properly

second best fix:

  • increase the price for money
  • aka increase the price for borrowing money (if something costs nothing it’s not worth anything?) aka increase central bank interest rates on that central bank money (Russia currently has 15.90% Inflation and a central bank interest rate of 9.50% (https://tradingeconomics.com/matrix)

Thatcher did that it was not pretty.

Buying and selling stocks or real estate, is not investment, it’s speculation (not adding value to society in any sense).