- Published on Sunday, 27 September 2015 07:49
Are campaigners for the environment destined to forever focus on symptoms of the cancer-ridden political economy? Over-use of resources, ecological destruction and pollution are all symptoms of a diseased economy and you can't cure disease by treating symptoms.
The current political economy harbours a devastating tumour (or economa) at its heart - interest on money. Daily Pickings has often referred to interest or usury being a primary driver of inequality but it is also a primary driver of environmental destruction and yet seldom do environmental campaigns mention usury or interest.
Interest drives exponential growth which is unsustainable in terms of: resource depletion, environmental destruction and pollution. 3% per annum GDP growth means the economy doubles every 24 years - we don't have enough planets to sustain us into the future.
Interest based Discounted Cash Flow (DCF) calculations underpin all business and project plans because economic success is premised on a time value for money. The quicker corporations extract and consume resources, creating more waste, the more money they make. DCF discounts our future because corporations (and ultimately the Structural Elite) make money out of money rather than by creating wealth. Interest is a systemic means of extracting wealth from those who create it (the seven billion people on the planet) while driving money exponentially upwards to the top of the wealth pyramid.
You only have to observe corporate cash management to understand the role that time plays in the value of money. For example: large corporations delay payments to suppliers (many, well over 60 days), yet most demand money for goods and services immediately or allow their customers to pay within 30 days. Some provide credit cards or other credit arrangements to make more money from money. We, the customers, provide up to 60 days worth of "free money" (because corporations don't need the money until they pay their suppliers) for corporations to earn interest. No wealth is created in that 30 to 60 days but corporations profit. How crazy is that?
Banking dynasties guard their turf aggressively because interest, with which they've corrupted the political economy, is their lifeblood. Without it, they couldn't create money from nothing to control politics and economics, through corporations, governments, the UN, EU and other supranational bodies including think-tanks and NGOs, global media and academia. Using these levers of power they defend the corruption of usury; eg. Structural Elite controlled universities graduate and promote brainwashed, economist disciples who, like fish swimming in water, are unconscious of the system they inhabit. Bankers have even corrupted religion: most major religions no longer prohibit interest.
Interest incentivises us to consume more than we need. The developed and the developing world are addicted to interest but we're in denial. This addiction is killing us; we need to rid ourselves of the "pusher".
Interest is an economa eating away at our civilisation. To be serious about "saving the planet", we need to focus on the disease, not symptoms. We need to remove the three economic flaws from the system.