How to survive the Global Financial and Ecological Crises

How to survive the global financial and ecological crises?
Tips for Political Parties
Raf Manji, Sustento Institute

My Background - Financial Markets
Studied Economics and Finance
Entered Investment Banking in 1989
Started in Capital Markets
Moved to Global Trading in 1991
Spot Currency Trader to 1995
Proprietary Trader to 2000
Epiphany

My Background - Ecological Markets
Designed Patented Trucost Environmental System in 2000
Invested in Environmental Companies
Fuel Cells, Wind Power, Algae, Carbon
Published paper “Climate Control” in 2008

The Problem- Global
Burden of Interest Bearing Debt
Affecting Sovereigns
Financialised Economy
Credit Crunch
Resource depletion
Climate Change

The Problem - NZ
Public and Private Debt
Reliance on Foreign Capital
Foreign Owned Banking System
Assets owned by Overseas Investors
Resource Dependent Economy
Resource Strains - Water

The Money Issue
Money created as Interest Bearing Debt
Created by Private Banking System
Creates a constant scarcity of money
New debt required to keep system going
Why?

Short History
Roman Empire
Tally Sticks
1688 William III and the Dutch bankers
1694 Bank of England and the War debt
US 1750-1913 The People vs The Banks
1913 Federal Reserve as Private Bank

The Founding Father
“ In the colonies we issue our own money. It is called colonial scrip...we control its purchasing power and we have no interest to pay to no one” Benjamin Franklin, 1764

The Banker
“ To repeal the act creating bank notes, or to restore to circulation the government issue of money, will be to provide the people with money and will therefore seriously affect our individual profits as bankers and lenders” James Buel, Secretary, American Bankers Association, 1877

The President
“ Whoever controls the volume of money in any country is absolute master of all industry and commerce...and when you realise that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate” President James Garfield, 1881

The Economist
“ The issue of currency is a function of the government, a sovereign right which ought not to be delegated to corporations” Professor Davis Rich Dewey, 1902

Sovereignty
Loss of control
Options: Borrow More or Sell Assets
Slowly losing ownership
Wage slaves as dividends leak
Time to reclaim sovereignty

Monetary Dialysis
Replace “Bad” Money with “Good”
No new Government Borrowing
Create new Public Interest Free Money
Save $3-4 billion annually
Manage the Money Supply
Restricting bank credit as % of overall supply

Ecosystem Markets
Time to price Ecosystem Services
Present the Trucost of resources
Ringfence taxes for specific remedy
Resource taxes
Environmental Contingency Bonds
Realign economy towards an environmentaly sustainable path

Living within our Limits
Limits to resource use and money creation
Develop Quotas: money and resources
Party is over
Time to plan ahead
Trade based on real economy, not debt

Tips for Politicians
State must reclaim sovereign right to create new money.
Money supply must be actively managed to prevent asset bubbles and inflation.
Taxes on ecosystem goods and services must be introduced.
Tax revenue should be allocated directly to source points or contingency fund.

Message to Politicians
Look at Iceland, Greece, Ireland
Take action now
Take control now
Lead the way
Make the changes now, that will lay the platform for a sustainable economy.
Or let others decide your fate

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How to survive the Global Financial and Ecological Crises

by Sustento Institute on Oct 16, 2011

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How to survive the Global Financial and Ecological Crises — Presentation Transcript