It’s hardly surprising that environmental destruction and manipulation of the money supply and the economy would be interrelated. Yet, monetary policy critics seldom if ever mention the environmental drawbacks of fiat currency and environmentalists seldom if ever criticize central banks. Perhaps, this is due to their lack of knowledge and awareness in these differing areas.
The sustainability of our environment has absolutely everything to do with the monetary system. Fiat monetary policy is a very destructive policy, when it comes to the health of our environment.
If the monetary system is coercive, if we don’t have a free choice as to the type and quantity of money in circulation, if instead it is predetermined by those who hold the reins of power, then can it be proven that the monetary system leads to destruction of the environment?
Our current system premits central banks to produce new currency with no backing. This new currency is then distributed to large corporate investment banks, who then decide where to invest their newfound funds.
This select corporate group can purchase whatever it is they choose with this produced money without the counterbalancing need to produce value in order to obtain the money in the first place.
Fiat money enables whoever has initial access, to purchase products that are a combination of labor and resources extracted from our environment; products that they would be required to exchange real value for in a monetary system based on equitable and free exchange.
Obviously, most people given free choice would not accept money that had little value for something they owned that had real value. The fiat economy allows resources and labor to be purchased by unbacked currency, a situation that would be unlikely to occur under a more natural monetary system.
The introduction of thin air money distorts the real value of labor and resources. If we are not able to account for the true value of natural resource, how can we ever determine whether we are proceeding at a sustainable rate, not to mention whether we are receiving and giving equitable value for expended labor?
Without a freely chosen monetary system to gauge our use of the environment, we have no barometer to guide us in a sustainable direction. Fiat monetary policy allows the destructive utilization of natural resources without imposing the corresponding real cost that would be reflected in a freely chosen system. If value cannot be accurately gauged by the currency, the amount of resource and labor consumed cannot reflect that which is truly needed in contrast to that which an inflated monetary base demands.
Latest posts by Gene (see all)
- Equating Republicans to Anarchists is Insulting to Anarchists. - October 20, 2013
- IP Laws and the Invasion of Personal Freedom. - March 3, 2013
- Fiat Money Production and Environmental Degradation. - February 17, 2013
- Corporate Legality: Extending the Purpose of Law - November 25, 2012
- Profits Rise While Unemployment Remains High. - October 17, 2012
- Monetary and Price Inflation: Understanding the Difference. - October 7, 2012
- Mortgage Backed Securities Back in Favor? - September 28, 2012
- Bush Tax Cuts: Coming Around the Bend! - September 1, 2012
- Towards A Better Understanding of the Nature of Profit. - August 4, 2012
- Are You a State Socialist? - July 21, 2012
- How Cartelization of the Health Care Industry Socializes Insurance. - July 14, 2012
- The Health Care Mandate Is A Tax. - July 1, 2012
- A Document Is Not Always A Contract. - June 12, 2012
- Same Sex Marriage, Missing the Real Issue. - May 11, 2012
- Is Corporate Greed the Problem? - October 30, 2011
- Corporate Personhood and the Occupy Wall Street Movement. - October 15, 2011
- The Feasibility of a “Night Watchman State”. - September 18, 2011
- Should We Tax “The Heck Out Of The Rich”? - July 22, 2011
- Should The Fed Burn A Pile Of Treasury Securities? - July 9, 2011
- Are You Morally Obliged to Pay Your Mortgage? - June 29, 2011
- The Deficit Debate That Isn’t! - April 16, 2011
- Quantitative Easing ll, Deflation and Inflation. - November 17, 2010
- The Fed Asks Selected Traders, How Much Money Do You Want and When? - October 31, 2010
- 50 State Attorney Generals to Investigate Foreclosure Paperwork Crisis. - October 16, 2010
- Title Companies May be Next to Enter Foreclosure Fray - October 6, 2010
- Bank of America halts foreclosures in 23 States. - October 2, 2010
- GMAC Mortgage in Hot Water with the Courts. - September 25, 2010
- MERS, the Hidden Link of the Housing Crisis. - September 12, 2010
- Quarterly Bank Revenue Numbers Come in Bipolar. - September 1, 2010
- Local Health Officials Close Down Little Girl’s Lemonade Stand! - August 9, 2010
- Forbe's Top Ten Industries - July 9, 2010
- Deep Water Drilling and Nonexistant Royalties. - May 18, 2010
- The United States Forest Service and the Spotted Owl! - October 13, 2009
- Secured and Unsecured Debt. The Differences Are Not So Obvious. - September 24, 2009
- Tragedy of the Collective - September 13, 2009
- Oregon Experiences Double Digit Health Insurance Rate Increases. - September 9, 2009
- Missed Tax Reform Opportunity for Liberals and Conservatives. - September 5, 2009
- Psuedo Competition Within the Health Care Industry. - August 16, 2009
- Clunkers and the Environment - August 11, 2009
- American Health Care and the Intrusion of Insurance. - August 6, 2009
- Do Systems Development Fees Really Work? - July 30, 2009
- Flat Tax? We already have one! - June 5, 2009
- Health Care Cartel Announces Price Cut - May 15, 2009
- The Last Great Recession - March 28, 2009
- Infrastructure and State Socialism - January 27, 2009
- Banking: Deposits and Investment - January 18, 2009
- Banking Part Two: Demand Deposits - January 14, 2009
- Banking Basics. - January 9, 2009
- The Bush Doctrine. - December 22, 2008
- MV=PT A Classic Equation and Monetary Policy - December 7, 2008