AURIGA'S PURPOSE
  • Increase awareness of world economic issues

  • Providing links to economic thought leaders

  • Provide resources for students and lecturers to promote new thinking

  • Facilitate connecting people with micro communities trialling new economic ways of life

CONTACT

Don Northcott

Email: newthinking@auriga.org.za

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© 2018 by Don Northcott

DEBT!

Some have said Debt has been humanity's greatest invention.  In reality it is degrading humanity.  

Income- Rich to Poor  ratio

          30   :    1  in 1960

          50   :    1  in 1980

          60   :    1  in 1992

          86   :    1  in 2000

        120   :    1  in 2005 

        150   :    1  Present

THE MECHANICS OF OUR CURRENT ECONOMIC SYSTEM

Bernard Lietaer is a scholar of monetary systems and promotes the idea that communities can benefit from creating their own local or complementary currency, which circulate parallel with national currencies.   https://en.wikipedia.org/wiki/Bernard_Lietaer

He describes our current economic system as follows:

 

Money is an agreement, within a community, to use something as a means of payment.

Four key features still characterize our "normal” money systems and remain basically unquestioned:

Money is typically geographically attached to a (1) nation-state. It is (2) ‘fiat” money, i.e. created out of nothing, by (3) bank debt, against payment of (4) interest.

The full implications of applying interest on the loans creating money are the least understood of the four characteristics.  Nevertheless, the effects of interest on society are pervasive and powerful. The way interest is built into the money system has three consequences:

  1. Interest indirectly encourages systematic competition amongst the participants in the system.

  2. Interest continually fuels the need for endless growth, even when actual standards of living     remain stagnant.

  3. Interest concentrates wealth by taxing the vast majority in favour of a small minority.

 

 

The system can only survive if there is endless growth.

 

The ‘josefpfennig’ illustrates the impossible mathematics of compounded interest.  Indefinite compounded interest in the real world is a mathematical impossibility.

For example one pfennig invested by Joseph at the birth of Christ at:- 4%compound interest would have grown, by the year 1779, to the value of one ball of gold of the weight of the earth.  By 1990 it would have grown further to the value of 8 190 balls of gold of the weight of the earth.

At 5% compound interest, by 1990, one pfennig, would buy an incredible 134 billion balls of gold of the weight of planet earth.

CURRENT ECONOMIC PROBLEMS

Our Economic System tends to be regarded as a non-changeable Science by leaders and the vast majority. This is an illusion that keeps the old "business as usual" paradigm relatively intact. The solution to this problem is to recognise that our present Economic System is man-made and can therefore be changed.

 
CURRENT ECONOMIC SYSTEM EXPLAINED

Money is an agreement, within a community, to use something as a means of payment.

Four key features still characterise our "normal” money systems and remain basically unquestioned.

CURRENT ECONOMIC FUTILE SOLUTIONS

A perceived major “positive step forward” in money creation by Central Banks has come about whereby NEW MONEY is being channelled into the financial system INTEREST FREE in a process called QUANTITATIVE EASING.

CURRENT ECONOMIC SYSTEM PROBLEMS

Our present ECONOMIC SYSTEM is completely dependent on MONEY which is created as interest bearing debt. The interest is never created so there is never sufficient money in the system to pay off all debt.

 
CURRENT ECONOMIC SYSTEM PROBLEMS

The ongoing transfer of wealth from 80% of the worlds’ population to the richest 20% is a characteristic of our present economic system in which money is created as debt on which compound interest is charged.  The consequences of this are dramatically illustrated by the two following graphs and accompanying statistics.

Income- Rich to Poor  ratio

         

          30   :    1  in 1960

         

          50   :    1  in 1980

          60   :    1  in 1992

          86   :    1  in 2000

        120   :    1  in 2005 

        150   :    1  Present

How the current system causes the wealth divide

 

The graph below illustrates the way in which interest is continuously transferred from 80% of the population in Germany to the richest 20%.

The most remarkable feature concerning the above graph is that the interest income of those in category 10 is  11. 3 times as much as those in the other fortunate group, category 9. Those in category 10 could be referred to as the FINANCIAL ELITE.

The members of category 9 are the influential leaders in society; politicians, major owners of shares on the Stock Exchange, land owners, owners of big business, media giants and educators who support the status quo. To a large extent, unknowingly, they become puppets of the financial elite.

 

On the vertical axis there is both a positive part, above the zero, which represents INTEREST RECEIVED and a negative part that represents INTEREST PAID. Note that categories 3 to 8 pay the most interest. This 60% of the total population are the middle class work-horses of society who have to keep running faster and faster to keep up with the Jones's, having very little time or inclination to question the legitimacy of the man-made system on which they depend for their livelihood.

The Political Problem

 

In their 2012 book “Who rules South Africa?”, Martin Plaut & Paul Holden revealed that in 2011 approximately three quarters of the South African Cabinet's 35 members had financial interests outside their main occupations as did 59% of the country's 400 members of parliament. This is evidence that the country's politicians are receivers of interest transferred to 20% of the population from the other 80%.

 
CURRENT ECONOMIC FUTILE SOLUTIONS

A perceived major “positive step forward” in money creation by Central Banks has come about whereby NEW MONEY is being channelled into the financial system INTEREST FREE in a process called QUANTITATIVE EASING.

 

This newly created money is having destructive effects in that it is CAUSING RUNAWAY INFLATION which is created when more money chases the same amount of goods and services.  The reason for this is that the new money is being pumped into the top performing companies

to the even greater benefit of the Financial Elite and increased suffering of  80% of the worlds population.

 

This is one of the major causes of the destructive behaviour of many sections of society who feel that they have nothing to loose as they vent their EVER GROWING ANGER. This anger can be harnessed and transmuted into POWER TO BRING FREEDOM TO THE WORLD BY SUPPORTING THE POSITIVE MONEY CAMPAIGN.   Understand more by watching these vidoes:

What is money?                                                                     Why is there so much debt?

 

 

Inequality: Why are the rich getting richer?                 House prices.  Why are they so high?

 

Could these 3 simple changes to banking                     How to waste £375 billion

fix the economy?

Click here for New Radical Solutions.

  • What is money
  • Why are rich getting richer
  • What is there so much debt
  • House prices why so high
  • Could these 3 changes to banking fix
  • Wasting billions
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