"Properly understood, money acts simply as a ‘claim’ on the output of the energy economy and driving up the aggregate of monetary claims only increases the scope for their elimination in a process of value destruction," warns Tim Clarke. He goes on to argue that Ireland is in a particularly vulnerable financial position, which is likely to lead to severe problems in the near future.
"Christine Lagarde will have immense power to lead the transformation of the world’s economic system to one that supports the 99% and keeps the world below the 1.5 degree climate threshold. Will she use that power for good?" asks Mike Sandler.
Feasta Currency Group members believe that community (or public) banking could form a central component of a healthy future Irish economy. There is an urgent need to expand this sector in Ireland in order to help protect the Irish economy from debt-related financial risk, stimulate community development and help bring about the transition to a growth-neutral financial sector.
This gathering brought together people from many countries and different walks of life to consider how we can best stabilise our increasingly rocky and ecologically toxic global financial system. Report by Caroline Whyte.
Graham Barnes argues that the misallocation of credit by banks exacerbates instability and inequality, and results in the neglect of projects that aren't profitable. He proposes two possible solutions.
Banks create money out of nothing when they extend loans and then charge borrowers interest on this newly created capital. The result is an ongoing multi-billion pound/ dollar subsidy breaking the basic rules of capitalism. What is perhaps even more surprising is that there appears to be no explicit description of the 'bargain' underlying this important arrangement. By Graham Barnes.