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The Great Unraveling—Entering Stage Two

There has been very little recognition of the Debt/Growth Imperative that is built into our global system of money, banking, and finance. As I have been preaching for many years, the creation of money as interest-bearing debt requires that indebtedness, in either the private sector or the public sector, must be continually increased at an accelerating rate in order for the system to continue to function. When the private sector is fully “loaned up,” government must step in as “the borrower of last resort.” That was clearly manifested in the latest bubble-bust cycle with the massive bank bailouts and the assumption by governments of enormous amounts of their “toxic debt.” The aggregate debt burden is destined to ultimately become unbearable, and no amount of government or central bank intervention can save this flawed system (such is the nature of exponential growth). The fiscal crisis that is now confronting national governments around the world signals the imminent collapse. How that will play out is difficult to assess, but it behoove us to use our available resources to enhance the resilience of our communities and build new systems that can be relied on to provide the things we need in order to thrive and build a world that works for all. One prominent commentator who “gets it” is Chris Martenson. His recent observations (below) are worth considering.—t.h.g. The Breakdown Draws Near Tuesday, April 19, 2011, 12:22 pm, by Chris Martenson Things are certainly speeding up, and it is my conclusion that we are not more than a year away from the next major financial and economic disruption. Alas, predictions are tricky, especially about the future (credit: Yogi Berra), but here’s why I am convinced that the next big break is drawing near. In order for the financial system to operate, it needs continual debt expansion and servicing. Both are important. If either is missing, then catastrophe can strike at any time. And by ‘catastrophe’ I mean big institutions and countries transiting from a state of insolvency into outright bankruptcy. [emphasis added] In a recent article, I noted that the IMF had added up the financing needs of the advanced economies and come to the startling conclusion that the combination of maturing and new debt issuances came to more than a quarter of their combined economies over the next year. A quarter! I also noted that this was just the sovereign debt, and that state, personal, and corporate debt were additive to the overall amount of financing needed this next year. Adding another dab of color to the picture, the IMF has now added bank refinancing to the tableau, and it’s an unhealthy shade of red: Banks face $3.6 trillion “wall” of maturing debt: IMF Read the rest of Martenson’s post here. Read the original post on Beyond Money.
endofmoney Thomas Greco is the author of The End of Money and the Future of Civilization.


The Emergence of Self-Organizing Systems of Exchange

Joseph Jaworski is the author of Synchronicity: The Inner Path of Leadership. In a message today from the publisher announcing the second edition of the book, I noted the reference to Jaworski’s “Four Principles to Access the Source of Innovation.” Although I’ve not yet read the book, I did take a look at the blog […] Read More..

Coping, Caring, and Building Community

As the financial and economic ground continues to shift beneath our feet, it becomes ever more imperative that we reduce our dependence upon the institutions and structures that we have come to depend upon and take for granted. The financial tsunami of 2008 and the continuing aftershocks should be a wakeup call. The sock markets […] Read More..

Money and Oil: The agenda in Libya becomes more evident

I hadn’t noticed it before, but on March 22, Bloomberg reported that, Libyan Rebel Council Forms Oil Company to Replace Qaddafi’s.Well, we’ve grown to expect things like that. The more interesting development reported in the article was this:The Council also said it “designated the Central Bank of Benghazi as a monetary authority competent in monetary […] Read More..

Stop Chasing the Buck and Change Your Luck

Cashless trading based on credit clearing is moving into its next stage of development, the optimization and scale-up stage. Established groups and associations are beginning to recognize the importance and urgency of disengaging from conventional structures of money and banking, reclaiming “the credit commons,” and reorganizing the exchange of value under local community control. One […] Read More..

The Banker’s Con Job, MSNBC’s Dylan Ratigan Gets It, Sort Of.

With the thievery becoming so blatant, even the mainstream media can no longer ignore it. Some reporters are actually beginning to understand how the con job works. In this video Ratigan takes a shot at explaining it. Yes, bankers run the government, yes, the Federal Reserve is a private company operated by and for the […] Read More..