The Future of Money Creation

positivemoneyuk

It is not hard for anyone to see that our current money system is experiencing difficult times. Even though interest rates are historically low, this still does not ignite the economy the way that the leaders hope. We are still in a deep recession, where youth unemployment is very high, companies are struggling, and where it is increasingly hard for anyone to create a life for themselves. Then on top of this, the situation in the middle east and Africa, is to put it mildly, catastrophic. The consequence is that refugees flood into Europe serving to destabilize the economy even further.

When investigating why our economy has become so weak, why we have so many structural flaws in our system, and why there does not seem to be in an end in sight, I have time and time again seen that these are strongly tied with how money is created in society. For those that do not know, money is created as debt. Commercial banks put out money in the economy, at an interest, when companies, and private individuals take out loans. This in turn means that there is ALWAYS a deficit of REAL money in the system, because DEBT accumulates without additional, new, debt-free money being inserted into the economy. We do not need a rocket scientist to conclude that this is bad math and also, big problems.

One clear and relevant example of how excessive debt can effectively destroy an entire country is that of the Greece sovereign debt crisis. Coerced by the financial powers of Europe to pay back its debt, Greece has now breached some of the most basic Human Rights there are. Pensions have been slashed and public jobs as well as salaries have been cut – the result is a disaster of epic proportions. And when we look at the reason for this destruction of human potential it all comes back to one thing – DEBT.

We should really ask ourselves why we structure our economy this why, because can we not find a better way? Does it not make sense to instead build our economy on debt free money, where countries are empowered using debt free grants to strengthen instead of being sucked dry of all life with the excuse that they owe money to someone, or something?

Having a money system that is based on debt creates extreme limitation, and at the end of the day, it only serves those few that are  in control of money creation, which is commercial banks. We have become so used to thinking that we must become indebted to buy houses, to receive educations, and to achieve a comfortable life, though this is ONLY a political structure – not a ACTUAL REALITY. Fact is that we could structure our money system in such a way where our governments issue debt free money that could be used to build houses, improve infrastructure and the general well-being of the public. Debt is fictional – a mirage created through laws – but in reality we all have an equal right to live a dignified life.

Investigate DEBT and the SOLUTIONS presented to this problem – the organization POSITIVE MONEY is offering a very cool solution – to implement this we require political participation – as it is through politics that laws are written and society is built.

Down below is an example of videos made by positive money that explains how banking works.

Micro Credits – A Solution For Poverty?

After the Norwegian Nobel prize committee decided to give the United States president Barack Obama the peace price, a president that later came to continue to war in Iraq, and also fund insurgents in Syria, I seriously started to doubt the reasoning skills of the members of this Nobel price committee. And after having watched the documentary ‘The Micro Debt’ by Tom Heinemann, I have concluded that the Nobel prize committee (at least those handing out the peace prize) do not know anything about what it means to create actual peace in this world. Because when they decided to give Muhammad Yunus the peace price, for having founded the Grameen Bank, and invented the concept of micro loans, and for thereby apparently having found a solution to poverty, they were obviously not using basic mathematics to assess the outflows of such loan methods.

Professor Muhammad Yunus, Nobel Peace Prize winner visiting theThough, before we dive into the basic mathematics of Micro Debt and whether this can be a solution for poverty or not, let me share the story of Muhammad Yunus, his bank, and the stories that has begun to surface about his money lending practices. It begins in 1976 when Yunus (supposedly) found out that small loans could make a disproportionate difference in a poor person’s life. According to Wikipedia, the first loans Yunus gave, made it possible for the borrowers to profit. Yunus business expanded, and by July 2007, his bank had issued around US$6.38 billion to 7.4 million borrowers.

As mentioned above, Yunus was awarded the peace price in 2006 for his efforts to create economic and social development. However after the release of the documentary ‘The Micro Debt’ the Bangladeshi government decided to review Yunus bank, and Yunus himself was removed as Managing Director of his bank. This is not particularly strange considering the claims that are made in the documentary, and the compelling evidence that it presents, that the micro debt is not at all a solution for poverty, but rather a trap, making the large amount of borrowers worse off than before.

Though in this blog I am not going to focus on Yunus and whether the claims made against him are true or not. My focus will instead be the concept of micro credits and whether these loans makes any sense; is it really possible to remove poverty through debt? The Micro Credit concept is not unique to Bangladesh; it has also become popular in South Africa, where it has created the opposite of poverty reduction. The following quote gives a stark description of the situation that unfolded.

”The microcredit-induced problems that emerged in South Africa are two-fold. First, microcredit per se is actually an “anti-developmental” intervention. For one thing, it exists on paper to support the smallest income-generating activities, but in practice is increasingly all about supporting consumption spending. In South Africa, the microcredit movement has created an incredibly risky and expensive way to support the immediate consumption needs of the very poorest.

With few poor individuals possessing a secure income stream that might ensure full repayment of a microloan – unemployment is now higher than it was under apartheid – many of the poorest individuals have been forced to repay their microloan by selling off their household assets, borrowing from friends and family, as well as simply taking out new microloans to repay old ones. For far too many now “financially included” individuals in South Africa, using microcredit to support current spending has been a disastrous and irreversible pathway into chronic poverty.”

Milford Bateman, Microcredit has been a disaster for the poorest in South Africa, http://www.theguardian.com/global-development-professionals-network/2013/nov/19/microcredit-south-africa-loans-disaster (2015-09-25)

euro-427528_640Academics and other proponents of the Micro Credit as a way out of poverty makes the assumption that the money lent will be used by the borrower to further his business. This however, is just that, an assumption. Most poor people are just as middle class people, not entrepreneurs, and do not have a very entrepreneurial relationship with money. The loan will be used to buy goods for immediate consumption, and will only serve to put more pressure on the debtor. In worst-case scenario, this will lead the already poor person, to loose the little safety they do have, when they are forced to sell their house to meet interest and installment payments.

Further, those borrowers that are indeed entrepreneurs, and that do invest their money in a business, there is nothing that says that these businesses will be able to profit. Nine out of ten startups fail – and that number will probably be even higher when not only you, but also all of your neighbors, decide to go out on the streets and sell the same thing – which did happen in South Africa.

Then we have the big problem when it comes to Micro Credits, the interest rates. On some of the Micro Loans that interest rate will be at 100 % or more. There is no startup that yields a sufficient profit to cover such a high interest rate. Conveniently for the creditors, most of the debtors are not proficiently literate, and will thus not really understand what they are signing.

Yunus was applauded when he was able to offer loans to poor people that cannot offer any securities in case they would forfeit on their installments. However, to ensure repayment of the loans, Yunus bank have developed a system of “solidarity groups”. It is these small informal groups that together apply for loans and its members act as co-guarantors of repayment and support one another’s efforts at economic self-advancement. Hence Yunus use the psychology of group pressure to ensure that the poor people are sufficiently motivated to pay back their loans. And even though this might seem innocent, in reality it has lead to the most horrific of consequences. One woman that was unable to pay her loan was pressed by her co-guarantors to take up prostitution as a way to meet her installment payment. That woman later poured kerosene on herself, and lit herself on fire. That is the effectiveness of group pressure when survival is in the picture.

What are we then able to conclude from all of this? One thing is clear: We cannot trust academics to know what is right! Even though they have a degree in economics, and even though they have received the Nobel peace price, that does not mean they actually understand how reality operates. Academics have their nose buried in deep books and because of that they will many times miss what is right before their eyes. Hence, we have to educate ourselves, and take responsibility. We cannot rely on a small intellectual elite to know how to solve such things as poverty – this is a problem that involves, and touches all of us, and accordingly it is everyone’s responsibility.

Then, the second thing we can learn: Change cannot come through DEBT. The very reason why we are living in a world where money is increasingly more difficult to obtain is because of DEBT. We live in a debt based system, and this forces us to work more – and even still there will/must be a loser. With debt, someone always loses; someone must be that poor guy that has to pay back the interest.

Real change will come through changing the structural design of the economic system – because only through changing the rules of the game are we removing this incessant fear of survival that is currently holding the entire human race in its grip. That structural change must involve giving all human beings a dignified life, real security, real safety, and easy access to money. This cannot come from debt, as debt is the very instigator of fear, anxiety and stress.

Hence, if you are interested in solving poverty, I suggest that you investigate the Living Income Guaranteed. This is an economical system that will revolutionize the way we think about money – and that is precisely what we need. We need something new, a brand new way of looking at things – a fresh start – free from debt and the old pessimistic ideas that apparently, poverty is unable to be removed from the face of this earth.

For more reading:

http://www.marlenvargasdelrazo.com/the-micro-debt-the-nefarious-business-on-poverty/#

http://www.theguardian.com/global-development-professionals-network/2013/nov/19/microcredit-south-africa-loans-disaster

Watch the documentary ‘The Micro Debt’

https://www.youtube.com/watch?t=791&v=yoAGKFaqwjM

https://www.youtube.com/watch?v=M6KHa4omGG8

https://www.youtube.com/watch?v=FdmXLpjykNk

What is really going on with the Refugees – and what is the SOLUTION?

People protesting against refugees being seen as the problemEuropa is now facing a big influx of refugees, not only from impoverished African nations, but also more prominently, from the war torn nation of Syria. In mainstream media, the conflict in Syria is portrayed as a struggle between the ‘good’ rebel faction ‘Free Syrian Army’ and the ‘bad’ regime troops with their leader Bashar al-Assad.

The mainstream media story is that Bashar al-Assad for a long time abused his people, that became angry, revolted, and that these rebels have a legitimate claim to the government. What is not shared however is how USA, France and Britain is supplying the rebel groups in Syria with both arms, and training. The other side, the governmental forces receive political and military support from Iran and Russia. Thus – this conflict is really a heaven for war profiteers – and at the end of the day – that is what it is all about.

We can fool ourselves into believing that the Syrian is a civil war fueled by political and ideological motives – but the truth is that the Syrian war exists due to geopolitical power struggles and because the military industrial complex continuously requires more war on this earth to profit. When we talk about the Syrian civil war it is not possible to look at it from a normal country vs. country, bad vs. good mindset – because this war is a product of the structural inefficiency of our current monetary system.

What do I mean with structural inefficiency? The fact that companies are allowed to exist and profit on the designing and manufacturing of weapons is a grave structural misalignment bound to create wars – and whether these are civil wars or bilateral, or multilateral conflicts, it does not really make a difference. Fact is that when weapons are created, the open up the opportunity for people to use force to get things their way. If we ban weapons on a global level – would there be wars as we know them today – and – would there be refugees, as we know them today?

War is one of the primary reasons people are forced to leave their homes, their possessions, their friends, and the life that they created for themselves – and to wage a war you NEED to have weapons. Without weapons it would not be possible to dislocate people on a large scale, or use force to drive entire nations into a state of chaos. Weapons is the one tool that makes it possible for people to commit atrocities on a industrial scale – and both the first- and second world war are perfect examples of how mass murder will be the result of weapons combined with a unstable human mind.

Hence, the solution to the world’s refugee crisis is to ban weapons. The act of selling and distributing weapons is in-fact a crime against the human rights – the right to life – because the design and creation of a weapon implies the intention of taking a human life by force – and that is unacceptable. There is not excuse that can validate weapon production – national security is not a reason – because obviously the safest national security measure would be to ban all weapons world wide through conventions and international agreements. Further, economic welfare is not a reason – because war does NOT produce economic growth. War increase debts, which in turn creates the illusion that the economy is growing – but the real economy which exists of the flesh and blood human beings and their daily living – is completely compromised.

War is hell – and war needs weapons to exist – and if we want to really make a significant impact in this world that will change things for the better – banning weapons on a global scale would be the decision to make. And even though there will be tremendous fear in people of seizing there arms production – it must be done and someone must begin the disarmament. One country must take the first steps, and dare to stand in this world and bring through a new way of doing things. All revolutions must begin somewhere, and at sometime – and if we want to have a world free from violence and refugees – we must take that stand of not accepting and allowing weapons to be manufactured and sold.

Investigate the Living Income Guaranteed for a solution on how to restructure our financial system to stop survival and fear from being the primary driving force in the human life experience. And investigate Democracy Against War Now – and join a movement that is set on producing a world free from violence where we as human beings can truly enjoy life – and let go of the constant uncertainty and worry that our current world situation provides for.

Living On Stolen Money – Decision or Consequence?

VehicleCrime350A life of crime is two-part documentary (I’ve posted embeds of the videos in the bottom of the post), where a filmmaker follows some criminals during two periods in their lifetime. The first time he meets them they are in their late twenties and still quite strong and vigorous, and they are sustaining themselves through shoplifting. In part two he meets them when they are in their middle thirties and life has begun to take a toll on them.

What is so interesting about this documentary is that it reveals the mindset of the criminals, the WHY of their decision to become criminals. Several times throughout the documentary they exclaim that they are able to make much more money through stealing than through having a regular job. Working one day as a shoplifter makes them around 3000 dollars, while working one day at McDonald’s makes them about 80 dollars. Thus, what is clear is that these people are not driven by some form of bad moral, or psychopathic desire to cause harm to others. No – in-fact these shoplifters are economist’s showing to us what kind of consequences our current economic system create.

It’s obvious that thieves, shoplifters and burglars are not an incident or mishap, they are consequence, they are not an anomaly, they are a predictable outcome – the result of an equation. For those of us that have led a life of money, it’s hard to relate to and understand what goes through a person’s mind when he or she decides to become professional shoplifter, because most of us born in economically stable environments would perceive it as immoral, wrong and barbarian. However, for someone born at the very low end of the hierarchy theft and a criminal life is a way of escaping a permanent sentence to a life poverty, and hard work.

Economists would probably agree with me, because it’s simple mathematics, when there is no support for those at the bottom, no hope for a better life, no ability to rise and build a life for oneself, then crime is a way out = supply and demand = cause and effect = problem and consequence.

Thus, realize, when crime rise, it’s not something bad, it’s actually an indication that something is very, very wrong with society, and that there are some drastic changes required. Realize that when prisons are filled to the brim with people, then we have a sick society, and that sickness can be traced back to the unequal distribution of money and resources.

This is where we require embracing a paradigm shift, because in order to make our lives better, our society more safe, our life experiences more rewarding, we must learn to give – we must learn to give, as we’d like to receive. Most of us have extremely difficult to grasp this concept, and when confronted with it, we shiver and turn inside, immediately out of our mouths comes the statements that “it’s unfair!” – “they should work for their money!” – “we can’t change that!” – “there will always be crime!” – but see, this is not common sense, this is assumptions, ideas, projections, and in actuality useless opinions that have no significance in terms of how reality actually works.

The fact is that, when we make the decision to give all an equal opportunity to make something worthwhile of themselves in this world, we are doing ourselves a significant favor. We will in doing that release so much pressure, fear, and society will become a completely different place, where crime will be significantly less.

One of the solutions we’re able to implement is a minimum wage, and not just any minimum wage, but a big minimum wage with which one can buy luxurious items, start a family and make one’s life comfortable and enjoyable. Manual labor such as working for McDonald’s, or similar, shouldn’t be awarded with a salary that merely puts one on the breadline. Instead dedicating oneself to contributing to society should be awarded amply; it should be more profitable to live honestly than to make living as a criminal.

So, the key to designing a successful society is to ask us the question WHY? Because everything that happens in this world does so for a reason – our physical reality is filled with equations and these in turn produce various results, and through changing the variables, we’ll change the result.

Investigate the Living Income Guaranteed and allow yourself to step up and become a social engineer, question the movement of your daily life, what happens, why it happens, and how it could be changed in such a way that all are included. Because it’s clear that – there are SOLUTIONS – we must simply be brave enough to see and apply them.

Selling The Solution

”We Want Change! We Want Change! We Want Change!”

Do you recognize these words? They are commonplace in demonstrations, activist efforts, strikes, and various other methods that the civilian public throughout time have used in attempting to enforce political change in this system. Still today, these methods are used in order to build political opinion – though; in this blog I will reveal the ineffectiveness of this strategy – and show that the time of screaming that “We Want Change” is blasé – this is the time to reconsider our role as creators of political opinion – and the first point to look at is HOW we bring forth our message.

This particular point opened up as I was investigating the suggestions from an activist group of how to create political awareness in relation to the Basic Income proposal. The proposed ways to create that awareness was in line with the usual tactic of standing somewhere in the public, the town square for example, as a group of people, screaming that “We Want Change!” – in seeing this I realized how severely ineffective and misplaced this method is.

So, why is it then ineffective and misplaced?

Well, to scream “We Want Change” doesn’t actually show why change is necessary, and neither does it present a practical SOLUTION as to how this change can be implemented effectively. Instead it’s merely people screaming, and actually, the starting point and underlying message coming through when we just scream out our message is that “we are the victims” and “you must change!” – we won’t make the change because it’s apparently up to another to make that change, present the solution, and make it all happen. And what comes through as well is this point of blame – that it’s not “our fault” that this world is the way it is and as such we shouldn’t walk this change – YOU should – because it’s YOUR fault!

What is then the missing point?

creative_sellingThe missing point is really in the most unlikely of places, and particularly for activists it will be shocking, because the primary point that will allow for political forcefulness to come through is the art of SELLING – yes – SELLING – the skill often regarded with despise – because it’s apparently not a “honest” trade.

But why is then that the art of selling is so important?

Realize, that when we want to inflict change in this world, what we must understand is that change comes through within and as individual human beings, because each human being is a building block in what we call ‘the system”, thus for each human being that is able to see the point you’re making, and within that change his, or her way of living, that is a point where you’ve actually created political movement.

The question is thus, what makes people change, and what makes people hear what you say? This is where SELLING comes into play, because the art of selling, is the art of convincing, it’s the art of finding the specific trigger for the human being we communicate with, what they care about, and what they feel about, and through using those trigger points, we are able to affect that persons way of looking at and understanding things.

Thus, for example, with the Living Income proposal, the focus of the activist must here be to explain to the individual human being what would change in his or her world, if a Living Income would be implemented, the activist must SELL the proposal ACTIVELY – which is a what a activist should be doing – namely – activating people in realizing and understanding that there is so MUCH MORE to life than what our current system presents as life – that there is whole universe to explore which have been suppressed by fear, and a bureaucratic system of rules and control.

Real change, and real political movement will as such be born through the process of selling, which is actually the skill of effective communication, and knowing WHO you’re talking with, and what will trigger that particular person to see what you’re saying – and make them see how what you’re saying can benefit their life.

This is why the Living Income proposal is so unique, because it speaks not only the worker class, it also speaks to the bourgeois, the middle class, and the elite, because the Living Income will fire up the economy on all avenues, allowing for the business owners to make more money, the workers to get employed, and the elite to retain their lifestyle unless it’s overly exclusive – obviously – some people that throughout the years have become excessively rich will have to let go of some of their resources.

An example of how to sell the Living Income proposal in America, would be to connect it to the American Dream, in showing that through the Living Income, the American Dream; having your own house, two cars, and having only one of the spouses working yet still retain a sufficient income to sustain the household, would be able to become a reality – this is thus SELLING the Living Income Guaranteed and showing the benefits of change – not merely screaming that “We Want Change” – which won’t create the political movement required for effective and lasting change.

Thus, it’s time to re-evaluate how we have up to this moment in time attempted to enforce change, and realize that there is a lot to learn from the system, from marketing, and from business owners, and that we’ll only be able to create a movement if we effectively show how life could change for others in implementing a Living Income Guaranteed. Let’s become the Wave of Action required to create the necessary momentum in order for real change to take place.

Why We Have Not Been Able To Change

ImageOne thing that we have been able do through out the years is to find problems and issues – this is one of our strengths so to speak – and we have even been able to find and point out fundamental issues; for example, there has during a long time been an awareness as to how politicians are often bought by corporations to pass laws that will support their business ventures.

Yet, one question remains, why is nothing happening? Why is no change taking place?

This is a fascinating point to explore, because really, shouldn’t there be some form of change by now? I mean, we have for several hundreds of years looked at and been able to determine societies and this world’s most infectious problems – but still – any form of fundamental change has yet to occur.

Why is this then?

Well, when we look at how we approach problems, what becomes obvious is that we firstly, tend to focus only on the problem, go into blame and then we stop at that point – we do not even proceed to the solution – we stop at blame and when we have vented our anger – we are satisfied. Secondly, we tend to focus on problems in a one-dimensional and from an amazingly limited perspective. Take for example animal activists that ferociously attack and expose any form of animal abuse in this world – these activists tend to see the problem as: “These people doing this are greedy and just bad!” – and their solution to the problem is “Just to make them stop!” – and this is obviously a severely limited way of seeing the phenomena of animal abuse.

Because animal abuse is multi-dimensional, and often those that abuse animals are poor workers that in order to make a living, require to abuse animals, for example in order to attain fur. Others abuse animals because they simply do not have any effective understanding of the animal, an example is trophy hunters, parents that hunted themselves have often raised these trophy hunters, and accordingly the children will pick up on their parents and become just like them – so here what we are dealing with is a ineffective education. I mean, it’s not that people are “just bad” – there is always a story behind things, and when we understand this story are we able to implement a solution that will produce effective results.

So, our problem has not so much been to see problems – our problem have instead been to understand them and create solutions for them. We tend to go into ENERGY and EXPERIENCE when we see something that is not acceptable, yet what we miss is that when we go into energy and experience, we are not able to see and comprehend to full picture, and we are not able to objectively discern what course of action would amend the situation.

Thus, what we require to do as humanity is to become life scientists, and with this I mean that we stop reacting to the problems existing in this world, and that we instead look at what we are able, what solutions are available, and what specifically it is that creates the problems we are facing in our world.

Fascinatingly enough, what you will find when you allow yourself to become a life scientist, is that most, if not all problems in humanity and this world comes from MONEY or rather, the lack of money. There are political solutions to sort out the credit crunch currently gripping this world – Investigate Living Income Guarantee – and remember – no energy – no experience – just look at the facts.

Q and A: How is that we are going to implement LIG?

Q: How is that we are going to implement LIG? I mean, all our politicians seems to be more interested in their own careers than standing for a system that would bring forth real change, and getting into the field of politics, getting to a position of power and influence, seems to be impossible without having the financial backing of corporations – so how can we get LIG to be implemented on a physical and practical level?

A: “When we see our responsibiity towards the state of humanity and the Earth in its totality – it’s about getting it done, no matter what. This means that either we find those individuals in a position of influence with a grain of integrity and desire for change – and one will find, such individuals are out there – or we become them. We can no longer ‘wait’ for those who have the means and power to grow a conscience on our behalf. That is why the Equal Life Foundation supports the development of leadership skills so that individuals who see the need for change, can find ways to actively work towards it.

Also – to remember – one cannot underestimate the power of numbers and our ability to demand change from those who are supposed to represent our interests. Herein, we have to realize that we require to stand together so that the voice of the people can no longer be ignored. Hence, we ask of all those who see that Living Income Guaranteed is a desirable solution – to promote it in their social networks – as the initial education that will be required for such a change to be manifested.” Maite Zamora Moreno

For more info about the Living Income Guarantee – see:
http://livingincome.me/wiki/The_Living_Income_Guaranteed_Proposal

Image