Marco!Vangelis.! - Binzagr Institute for Sustainable ... · PDF fileMarco!Vangelis.!...
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knowledge > empowering > change Marco Vangelis. Essen%al Knowledge for Transi%on
Transcript of Marco!Vangelis.! - Binzagr Institute for Sustainable ... · PDF fileMarco!Vangelis.!...
knowledge > empowering > change
Marco Vangelis. Essen%al Knowledge for Transi%on
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Key Points
� The design of the money and banking system is directly implicated in all of the largest problems we face:
� Increasing levels of debt (public and private) � Economic instability � Concentra.on of wealth � Loss of democracy and government corrup.on � Environmental and climate disrup.on
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Key Points � Basic design of the money and banking system is accessible to all
� A widespread understanding of the money and banking system is necessary for a func.oning democracy
� The money and banking system is a private-‐public partnership (risk/rewards)
� Banks’ profit mo.ve leads to misuse of their awesome privilege
� Redesigning the money and banking system makes it possible to solve some of our largest societal problems
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New Possibili.es: � Rebuild our infrastructure � Improve the educa.on system � Improve health care and preven.on � Climate adapta.on � Environmental restora.on � Rebuild the local food system infrastructure � Repopulate rural areas and transi.on to organic agriculture
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Why is Money Difficult to Understand?
Overcoming Four Pa4erns of Thought:
� There is no free lunch � Money is a posi.ve number � Money is a creature of the na.on state � Money is uniform
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Money is Hierarchical Money is Hybrid (public/private) Central Bank
A L
Gold Currency
Private Banks
A L
Currency Deposits
Private Sector
A L
Deposits IOUs
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Aggregate Balance Sheet Commercial Banks in US 8/12/15 (in $ billions)
Assets Liabili.es
Cash and Federal funds $3,100
Other assets $2,400
Equity Capital $1,700
Treasury Bonds, MBSs, CDOs and other securi.es $3,000
Other borrowed funds $1,800
Demand Deposits $9,100
Source: Federal Reserve H.8
Consumer loans $1,200
Real Estate Loans $3,800
Commercial loans $1,900
Other Liabili.es $1,100
Time Deposits $1,700
$15,400
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Federal Reserve Balance Sheet 8/19/2015 (in $ billions)
Source: Federal Reserve H.4.1
Other assets $300 Equity Capital $50
Treasury Securi.es $2,450 Federal Fund Deposits $2,550
Mortgage Backed Securi.es $1,750
Other Liabili.es $500
Federal Reserve Notes Outstanding $1,400
Assets Liabili.es
$ 4,500
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System Design Flaws and Solu.ons
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What’s Wrong with the System? � All money is created as debt
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How much money is created? � About $40 billions (metal coins)
� About $4,000 billions � ($2.5T reserves, $1.5T paper currency)
� About $11,000 billions Banks
Federal Reserve
US Treasury
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What’s Wrong with the System? � All money is created as debt � No money is created to repay the interest on the debt
� The private banking sector effec.vely has a monopoly on money crea.on
� Profit mo.ve leads to inappropriate money crea.on and alloca.on
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Where did the banks directed the money they created? (UK 97-‐07)
Source: Posi.ve Money Ins.tute, UK
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What’s Wrong with the System? � All money is created as debt � No money is created to repay the interest on the debt
� The private banking sector effec.vely has a monopoly on money crea.on
� Profit mo.ve leads to inappropriate money crea.on and alloca.on
� The debt-‐based money system is in the process of collapsing
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Now …..Towards a solu.on
Public Private Public Private
US Treasury
Federal Reserve
Banking Sector
US Treasury
Federal Reserve
Banking Sector
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Now …..Towards a solu.on Debt-‐free
Debt-‐based
US Treasury
Banking Sector
Federal Reserve
Debt-‐free
Debt-‐based
US Treasury
Federal Reserve
Banking Sector
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Banking Sector -‐ Now
JP Morgan Chase
Bank of America City Group Wells Fargo
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Banking Sector …Towards a Solu.on
JPM BoA Ci. Wells Fargo Public Bank
(new RFC)
Public Bank
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What if money crea.on and credit alloca.on was directed to the common
good?
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Alloca.on of money and credit � Funding basic social needs (sufficient to cover legacy interests)
� Funding the natural commons � Funding infrastructure projects � Support SME lending
� Funding produc.ve economic ac.vi.es not financial specula.on or RE bubbles!
US Treasury
Federal Reserve
Banks
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Poten.al: � Rebuild our infrastructure � Improve the educa.on system � Improve health care and preven.on � Climate adapta.on � Environmental restora.on � Rebuild the local food system infrastructure � Repopulate rural areas and transi.on to organic agriculture
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If governments do not shape money, they are shaped by it.
Prof. Jem Bendell
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Marco VangelisG
Essen.al Knowledge for Transi.on
Website: ek4t.com
Contact: [email protected] FB: www.facebook.com/Essen.alKnowledge4Transi.on
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Massive expansion in the B/S of the Fed (2008-‐2015)
$750 B
$2450 B
$1750 B
$300 B
2007 2015
$1100 B
$2400 B
Mortgage-‐backed securi.es
Total US Student Debt
Total Value US Farmland
Other
Treasury Bonds
T-‐Bills
Other
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