Natural Money: The most efficient monetary system

May 20, 2009 - February 11, 2010

Introduction

We live in an economic system that is very inefficient. The economy does not adequately address the need of people. In times of crisis many companies go bankrupt because there is no demand, even though they make useful products. Many people will become unemployed, so demand falls back even further. Governments and central banks intervene, which disturbs the functioning of markets. This enables inefficient companies to remain in business when they benefit from government intervention and the intervention in the financial system by central banks.

The fundamental cause of economic inefficiency is usury, which is the charging of interest on money. The following example demonstrates that interest on money is unsustainable and leads to crisis:

If someone brought a 1/10 oz gold coin to the bank in the year 1 AD, and the money remained there until the year 2000 AD, collecting a yearly interest of 4%, the amount of gold in the account would have been 3.6 * 10^31 kilograms of gold. This is 1.9 * 10^27 cubic metres of gold weighing 317 times the complete mass of the Earth.

An ever increasing amount of debt is needed to pay for the interest on the money. At some point this leads to crisis. Economic crises and the destruction of useful capital are the result of the type of money we use. The same applies to the perceived need for government intervention in the economy. Our money is an important factor in poverty, the unraveling of social structures, the destruction of nature and the mass migration of people.

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