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Dazzled by the Money

December 19, 2011

Look at a working economy, say that of Germany.  For one moment, ignore the flow of money or currency and look instead at the flow of resources and what is actually happening.  People work, things get made, food gets grown and things get consumed.  This is what’s important: what actually happens in terms of the flow of resources (including human effort) is what matters.  Consider now a City banker: he makes nothing, grows nothing and yet consumes a lot (or at least accrues the ability to consume a lot).  How so?

The answer is money.  This token or resources has revolutionised the ability of civilisation to manage its resources, but there is a price to be paid for watching the money and not what it represents, and the world is on the verge of paying that price.  If the flow of resources is controlled by the flow of money, and bankers control the flow of money, then without an actual useful tangible product, the bankers gain the ability to extract resources from the economy, while giving nothing back.  Human greed causes this to happen disproportionately, bankers gaining much more of a slice of the pie than the amount of tangible production work they do would realistically suggest they should have.

To move forward we need to focus back on what is really happening, not where the money is flowing.  Money as a system needs to be rebuilt and economies need to be built so that money is a tool that does not control the whole system, but is rather controlled and utilised by it.


From → Economics

  1. There’s a lot of thought on this topic of late. You present a common sense perspective. I invite you to check out my blog this coming Wednesday January 11 as I have a guest who will be providing her outlook on Dynamic Flow of Money. I’d love to have you present your thoughts about what she has to say.

    Tossing It Out

  2. A very interesting read, thanks for that. If you ever write a follow-up, i’ll be sure to read it!

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