I’m sorry, but if I hear one more “expert” on the box describe the financial crisis as “psychological” I’m going to barf. I also heard a French commentator today blame “the redemption factor” – which sounds biblical, but apparently refers to the price being put on that huge red chunk of the pyramid (see story above) which seems to represent eight hundred times global GDP.
Norrie C at The Guardian explains that what’s unwinding is “the mathematically flawed system of debt-based, fiat, Fractional Reserve Banking which is predicated on indefinite exponential growth. That is growth in debt, population, industrial activity, consumption of energy, consumption of raw materials, production of waste, production of pollution, destruction of the biosphere”.
Continuous, relentless exponential growth of the above list is simply not possible indefinitely – and the end of indefinitely is what seems to be happening now.
The fiscal model is fatally flawed, Norrie explains, because “you need a relentless, geometric increase in debt for there to be enough money in the money supply to pay back all the capital and interest when only the capital was ever created. The debt-based Fractional Reserve Banking system is killing itself, our savings and our planet”.
This is a disgrace, and somebody should do something about it.
But personally I’ve made a killing out of the crisis this week. On Monday, in Brighton, Andre Viljoen gave me my first Lewes Pound:
This new complementary currency is designed to encourage demand for local goods and services and thereby to help build resilience to the rising costs of energy, transport and food.
It’s intended to be used alongside pounds Sterling – but I couldn’t help noticing that LPs are selling at a healthy premium on eBay: pound@ebay.png
In other words, my global holdings in complementary currencies (one Lewes Pound) have gone up fourteen times in a single week.
I’ve only got one Lewes Pound, and I’m hanging on to it. Or will someone out there will make me a good offer? What shall we say: a kilo of gold for it?