How to survive the Global Financial and Ecological Crises

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A presentation on how to survive the current crises of finance and ecosystem. They are both highly correlated with finance providing the basis for ecosystem exploitation. I propose that we move to re-alaign the financial system to provide stable money and appropriately priced ecosystem goods and services. I argue these are both necessary for a sustainable economy.

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How to survive the Global Financial and Ecological Crises

  1. 1. How to survive the global financial and ecological crises? <ul><li>Tips for Political Parties </li></ul><ul><li>Raf Manji, Sustento Institute </li></ul>
  2. 2. My Background - Financial Markets <ul><li>Studied Economics and Finance </li></ul><ul><li>Entered Investment Banking in 1989 </li></ul><ul><li>Started in Capital Markets </li></ul><ul><li>Moved to Global Trading in 1991 </li></ul><ul><li>Spot Currency Trader to 1995 </li></ul><ul><li>Proprietary Trader to 2000 </li></ul><ul><li>Epiphany </li></ul>
  3. 3. My Background - Ecological Markets <ul><li>Designed Patented Trucost Environmental System in 2000 </li></ul><ul><li>Invested in Environmental Companies </li></ul><ul><li>Fuel Cells, Wind Power, Algae, Carbon </li></ul><ul><li>Published paper “Climate Control” in 2008 </li></ul>
  4. 4. The Problem- Global <ul><li>Burden of Interest Bearing Debt </li></ul><ul><li>Affecting Sovereigns </li></ul><ul><li>Financialised Economy </li></ul><ul><li>Credit Crunch </li></ul><ul><li>Resource depletion </li></ul><ul><li>Climate Change </li></ul>
  5. 5. The Problem - NZ <ul><li>Public and Private Debt </li></ul><ul><li>Reliance on Foreign Capital </li></ul><ul><li>Foreign Owned Banking System </li></ul><ul><li>Assets owned by Overseas Investors </li></ul><ul><li>Resource Dependent Economy </li></ul><ul><li>Resource Strains - Water </li></ul>
  6. 6. The Money Issue <ul><li>Money created as Interest Bearing Debt </li></ul><ul><li>Created by Private Banking System </li></ul><ul><li>Creates a constant scarcity of money </li></ul><ul><li>New debt required to keep system going </li></ul><ul><li>Why? </li></ul>
  7. 7. Short History <ul><li>Roman Empire </li></ul><ul><li>Tally Sticks </li></ul><ul><li>1688 William III and the Dutch bankers </li></ul><ul><li>1694 Bank of England and the War debt </li></ul><ul><li>US 1750-1913 The People vs The Banks </li></ul><ul><li>1913 Federal Reserve as Private Bank </li></ul>
  8. 8. The Founding Father <ul><li>“ 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 </li></ul>
  9. 9. The Banker <ul><li>“ 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 </li></ul>
  10. 10. The President <ul><li>“ 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 </li></ul>
  11. 11. The Economist <ul><li>“ 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 </li></ul>
  12. 12. Sovereignty <ul><li>Loss of control </li></ul><ul><li>Options: Borrow More or Sell Assets </li></ul><ul><li>Slowly losing ownership </li></ul><ul><li>Wage slaves as dividends leak </li></ul><ul><li>Time to reclaim sovereignty </li></ul>
  13. 13. Monetary Dialysis <ul><li>Replace “Bad” Money with “Good” </li></ul><ul><li>No new Government Borrowing </li></ul><ul><li>Create new Public Interest Free Money </li></ul><ul><li>Save $3-4 billion annually </li></ul><ul><li>Manage the Money Supply </li></ul><ul><li>Restricting bank credit as % of overall supply </li></ul>
  14. 14. Ecosystem Markets <ul><li>Time to price Ecosystem Services </li></ul><ul><li>Present the Trucost of resources </li></ul><ul><li>Ringfence taxes for specific remedy </li></ul><ul><li>Resource taxes </li></ul><ul><li>Environmental Contingency Bonds </li></ul><ul><li>Realign economy towards an environmentaly sustainable path </li></ul>
  15. 15. Living within our Limits <ul><li>Limits to resource use and money creation </li></ul><ul><li>Develop Quotas: money and resources </li></ul><ul><li>Party is over </li></ul><ul><li>Time to plan ahead </li></ul><ul><li>Trade based on real economy, not debt </li></ul>
  16. 16. Tips for Politicians <ul><li>State must reclaim sovereign right to create new money. </li></ul><ul><li>Money supply must be actively managed to prevent asset bubbles and inflation. </li></ul><ul><li>Taxes on ecosystem goods and services must be introduced. </li></ul><ul><li>Tax revenue should be allocated directly to source points or contingency fund. </li></ul>
  17. 17. Message to Politicians <ul><li>Look at Iceland, Greece, Ireland </li></ul><ul><li>Take action now </li></ul><ul><li>Take control now </li></ul><ul><li>Lead the way </li></ul><ul><li>Make the changes now, that will lay the platform for a sustainable economy. </li></ul><ul><li>Or let others decide your fate </li></ul>

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