If you find the global monetary system hard to understand then you are probably not alone because our current system is founded on complete smoke and mirrors and fallacy. It is officially designated as ‘fiat’ and its continuance is entirely reliant on the word ‘confidence’.

Let’s take it back to basics; wealth is nothing more than a measure of knowledge. Think of planet Earth as a corporation for which we, humanity, have obtained a management contract. We have inherited this planet from the previous automatic genetic management system and it comes to us with a complete suite of assets. These include all of the base elements that go to make up its geological and biological structure, generally speaking these elements are in fixed amounts and I am sure somebody could provide us with a pretty good audit of them. Additionally we have a free constant supply of energy delivered by the Sun and a very well-stocked savings account of surplus energy that has been laid down over the millennia as hydrocarbon fuels.

 

The previous genetic automatic management has successfully manipulated these elements over the past 4 billion years and delivered to us Earth Inc. to manage. We passed the evolutionary survival of the fittest natural selection process, sometime towards the end of the last ice age and we’ve since enjoyed 10,000 years of a gradual soft hand over; it’s only really in the past 50 years that we have had full control of the earth systems and have been learning to manage the business. In the process we have of course dipped deeply and now continue totally irresponsibly to dig deeper into our planetary hydrocarbon reserves.

Our challenge has been learning to run the business in such a way that we can feed our expanding family. And here we come back to knowledge and wealth. The first creations of wealth came through the knowledge of discovering where sustainable food supplies existed such that we could feed ourselves and our family without taking all of our waking hours and thereby creating free time for some of us to do other things. Those first other things included farming the soil which had the impact of allowing us to feed more people and free more time, and in their free time we were able to build better structures to give us greater shelter and allow us to expand our families and so on. In our free time we undertook to do things for other people in return for promises to do something in return, and a note was made of this in the form of shells, stones with scratches on them, ingots of metal or coins.

Now until such time as we are able to go out into space and collect additional material we remain on this planet with our finite amount of elements and constant energy supply. However our ability to accumulate knowledge is limitless. Knowledge all comes down to our improving ability to rearrange those elements, free time in order to gain further knowledge, and it’s exponential!

bru child doing homework"...real wealth is expanding exponentially with our knowledge."

Previously we had tied our definition of wealth to the elements gold, silver and diamonds et cetera. This is complete nonsense; real wealth is expanding exponentially with our knowledge. Unfortunately the failings in unlocking our wealth come through our management failures and most of this is created by the current flawed financial system. I should add here that system is being maintained and defended by those that currently benefit the most from it and is only because so much knowledge wealth has been created that fiscal easing of the current monetary system continues to work. This is because Earth Inc is itself massively undervalued or at least it is if you discount the current asset stripping mismanagement that is currently going on. BAU could soon return it to its value of a billion years ago, if runaway warming takes hold.

Now the time has come for more mature and responsible behaviour; for us to face up to the fact that we do have the knowledge and the capacity to carry out the necessary global environmental restoration project. To recognise that we can feed 7.3 billion people, that we have sufficient available materials to feed and house those people and that we have the communication systems to continue our exponential advancement of knowledge and thereby wealth creation.
So what happens when we make this essential leap and face up to how very wealthy we all are?

Firstly a huge amount of free time comes available because we do not need to do many things we do which are simply there to turn the hamster wheel of the current financial system. Rather than dip into the planet’s reserve account of hydrocarbons to make unnecessary plastic objects or cheap clothing, we could pay people in Third World while they are educated and they could then learn to carry out essential services such as growing and maintaining biomass; after all maintaining the biomass is maintaining the life-support system for everyone. In the process newly educated people will have more free time for arts and sciences and those people will become patrons of music art and science. The newly freed up workforce will allow the implementation of irrigation and desert restoration projects, together with ocean restoration and so make hunger and famine things of the past. Economic migration ceases and planetary knowledge-wealth continues its exponential growth.

It’s a management problem and not a money problem, and is currently quantified by, in effect, a series of promissory notes. But hang on, that’s what ‘fiat’ money is anyway isn’t it?

So maybe it’s not all broken, what’s needed is a complete reset of the system and a realisation that our base collateral is our collective knowledge. The problem, is our total failure to appropriately value the assets we started out with, both biological and geological and the wealth we have created through our intellect. But, we now need to use that intellect to recognise that we have to repay our hydrocarbon reserve accounts. Before the bailiffs of the apocalypse are called in.

Bru Pearce
13 July 2015