by Charles Hugh Smith
Of Two Minds
The solutions will come not from those profiting from inequality and scarcity but from relocalizing “money” and production to create degrowth community economies.
We think we understand “money”–we don’t. We think the current versions of “money” are the final versions–they aren’t.
Understanding “money” requires some heavy-lifting, but it’s important, so let’s dig in.
The most accurate description of “money” (in quotes because it’s not what we think it is) is Art Berman’s shorthand:
Energy is the economy.
Money is a call on energy, the capacity to do work.
Debt is a lien on future energy.
We think that creating more “money” can solve all problems. It can’t. Creating more “money” only adds another crisis to the fundamental crisis, a scarcity of affordsable energy and resources.