The Gold Standard

The world we have made as a result of the level of thinking we have done thus far, creates problems we cannot solve at the same level of thinking at which we created them.

Albert Einstein

You can apply this to anything you like, but it seems to me apposite to think about it in relation to the economic models we have come up with so far.

Historically we have moved from a gold-based system via a representational base-metal and paper money system via a deluge of bound-to-be broken promissory notes. The muddle we are now in seems to have arisen from a digitised money system where we shuffle decimal points and zeros between accounts. If every man jack of us, and his dog, tried to liquidate all those figures into cash at the same time, I suspect no-one would be able to save the current global economic system, least of all our governments.

Governments have the right to create money, but we have drifted into a system where financial institutions give us extra digits and zeros to buy what we want. This is, to all intents and purposes, allowing banks to create money they don’t have.

This is what happens when most of us are sleepwalking through our lives, accepting the education laid out by the government that will allow us to compete in global league tables, but not allow us to hold our own governments to account. Education that does not allow us to even form the questions that might challenge prevailing ideology such as is needed to force real change through a democratic process.

Back to Einstein I think.

National Geographic Gold Miner in Ghana: do we have gold or does gold have us?

For more on this visit BBC Radio 4’s Start the Week

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Posted on January 16, 2012, in Consumerism, News and tagged , , , , , . Bookmark the permalink. Leave a comment.

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