Expansionist Monetary Systems (EMS)

The Heart of the Cultural Paradigm Driving Growth and Consumerism

"If you do not have a critique of capitalist modernity, you are contextually irrelevant. But if all you have is a critique, you are spiritually and creatively impoverished." Alnoor Ladha & Lynn Murphy — Post-Capitalist Philanthropy

Unveiling the Origins of our Debt-Based Monetary System

[This critique of our current monetary system is a necessary introduction to

The Valueflow Strategy⁠

, which describes how we create valueflow from cities into rural bioregions.]

In the annals of history, the 15th century goldsmiths emerge as the progenitors of a monetary system that has shaped our modern world. It is within the realm of their practices that we find the roots of our current predicament, as well as the impetus for change. These goldsmith bankers, who were originally responsible only for safeguarding valuable metals, initiated the concept of fractional reserve banking. They recognized that by issuing receipts against their reserves of gold, which effectively circulated as money, they could expand their influence and engage in lending activities.

The Illusion of Fractional Reserve Banking

Under the early fractional reserve method, a goldsmith banker maintained a large proportion of the receipts they issued in reserve, ensuring the ability to redeem any presented notes. This approach, though seemingly parallel to our modern fractional reserve banking, held a fundamental difference: the goldsmith banker possessed a tangible reserve supply of gold. This reserve acted as a safeguard during times of emergency, preventing catastrophic collapse and maintaining public confidence. Their system, based on a physical commodity, possessed an intrinsic stability.

The Fragility of Modern Debt-Based Monetary Systems

In stark contrast, our modern debt-based monetary system relies on an illusionary concept of reserves. The reserves of today's bankers are not grounded in tangible assets, but rather exist as mere bookkeeping entries. A bank's fractional reserve is a mirage, a precarious dance on the edge of a precipice. If even a single dollar is withdrawn from this illusionary reserve, the delicate formula upon which it stands is violated, potentially unraveling the entire structure. Bankers, in their pursuit of maximizing profits, continually dance as close to this precipice as possible, toying with the brink of insolvency. Occasionally this precarious dance results in bank failures, which are always bailed out at the expense of the tax payer.

The Essence of Escaping the Polycrisis

Now, more than ever, as we confront the multifaceted challenges of our modern polycrisis, the need to transition away from our debt-based monetary system becomes abundantly clear. Bioregional sovereignty offers a pathway forward, where communities reclaim autonomy and resilience within their unique ecological contexts. However, such a transformative journey necessitates transitioning away from a monetary system that perpetuates instability, inequity, and constant growth on a finite planet. If we ignore addressing the expansionist monetary system, we cannot accomplish true Bioregional Sovereignty.

Unraveling the Web of Interconnected Crises

Our polycrisis encompassing environmental degradation, social inequity, and systemic injustice is embedded in an economic system that fuels a cultural paradigm that prioritizes growth and consumerism. The web of crises we face is tightly intertwined, each thread exacerbating the others. The debt-based monetary system, with its insatiable appetite for growth because of its inherent interest charges, exacerbates this interconnectedness, eroding the very foundation upon which it stands. It fosters an unsustainable paradigm where perpetual growth becomes a prerequisite for survival, disregarding the finite boundaries of our biosphere.

Transitioning Away From Fiat

Transitioning toward bioregional sovereignty necessitates a departure from the current expansionist monetary system. We must strive for alternative systems that embody principles of regeneration, collaboration, equity, and resilience. A bioregional monetary system based on regenerative principles aligns with the carrying capacity of local ecosystems, valuing and rewarding regenerative practices and the well-being of both human and non-human communities.

Paving the Way for a New Monetary Paradigm

Building a new monetary paradigm requires collective effort, visionary thinking, and bold action. It demands an exploration of alternative currencies, such as community-based or nature-backed currencies, which reinforce the local economy and incentivize regenerative practices. Furthermore, embracing cooperative banking models that prioritize community needs over profit margins can foster economic self-reliance and resilience.

In this era of profound transformation, we stand at a crossroads. The shift towards bioregional sovereignty requires us to confront the inherent flaws of our debt-based monetary system. By reimagining our relationship with money, recognizing its potential as a tool for empowering communities and restoring ecological balance, we can forge a path towards a more just and regenerative future. Let us embark on this transformative journey, where the sovereignty of bioregions becomes the cornerstone of our collective resilience.

The journey starts with creating healthy value flow from the expansionist monetary system into the bioregional monetary system. We start the process with Land Trusts, which are a way to tokenize land. If you are familiar with tokens, go right ahead.

⁠

INTRO TO LAND TRUSTS

⁠

DEEP DIVE INTO MONETARY SYSTEMS

⁠

A Thought Experiment

If you are new to the world of tokens, or are generally skeptical about the world of cryptocurrency, we have you covered.

⁠

THE TOKEN THOUGHT EXPERIMENT

⁠

Unveiling the Origins of our Debt-Based Monetary System

The Illusion of Fractional Reserve Banking

The Fragility of Modern Debt-Based Monetary Systems

The Essence of Escaping the Polycrisis

Unraveling the Web of Interconnected Crises

Transitioning Away From Fiat

Paving the Way for a New Monetary Paradigm

A Thought Experiment

Want to print your doc?
This is not the way.

Try clicking the ⋯ next to your doc name or using a keyboard shortcut (

CtrlP

) instead.