Elisabet Sahtouris, Ph.D. 23 Jan 2012 contact:firstname.lastname@example.org
Solving the Crisis in Capitalism
Elisabet Sahtouris, Ph.D
In the FT’s series on the
Crisis in Capitalism
http://www.ft.com/intl/indepth/capitalism-in-crisiswhat I read, even when purporting to hit the deep issues, takes on isolated aspects or surfacefeatures of the problem rather than truly getting at root causes. For example, in the article byMohamed El-Erian, head of Pimco, who claims to avoid this and get to the real issues for "aclear overall conclusion" we read that we must:
“... work harder at reducing the chances of a catastrophic failure reaching the few areas
that amplify the good and bad aspects of the system. Finance is clearly one of these. In thelast decade, five countries in particular (Iceland, Ireland, Switzerland and most importantlygiven their systemic role, the UK and US) lost sight of the fact that finance is not astandalone industry but, instead, depends on its ability to serve the real economy. Thisfailure was compounded by the view held by some that finance could even constitute thenext phase in the natural evolution of capitalism (from agriculture to industry, services and,
In saying that "
finance is not a standalone industry but depends on its ability to serve the
he neither says that money should never have become a tradable, profitablecommodity in its own right nor that all industry should serve the real economy, both of which
actually hit the real root issues. Finance should be no more, no less, than a vital service tothe real economy and its practitioners are surely entitled to legitimate fees for service, but theyshould n
ot be allowed to trade money itself for profit, and certainly not to trade people’s andnations’ debts for profit!
As all global currencies are issued as debt, that is clearly a rootproblem.Instead, El-Erian blames the financial crisis on "
patchy prudential regulation, bad incentivesand horrid compensation practices
" and then, incredibly, says:
“Society as a whole produced and consumed too much finance
, especially through adisruptive technology that was insufficiently understood and tested. The result was themother of all capitalistic overdoses, the implications of which are enormous and will be felt
for years to come.”
I have watched too many films reviewing the history of finance, seen too many warning quotesby founding fathers of the USA as well as later presidents, and too many gloating quotes by
bankers themselves about their ability to exploit for big gains, to blame "society as a whole…for
consuming too much finance." Does he mean that just because easy credit is extended, we arenot meant to ue it? Judaism, Christianity and Islam, thousands of years ago condemned money-lending at interest, and even before them, no natural living economy, even though its organisms
evolved a currency still operating in all your own body’s cells, ever issued
it as debt and traded itfor profit.
In living systems currency is there simply and effectively ‘greasing the wheels’ of
economy under careful regulation.A truly deep root cause of the Crisis in Capitalism from my vantage point as an evolution