Given what we know, in order for the world to avert catastrophe, we must shift to a financial system that doesn’t depend on constant growth to function. We need a new, stable, and resilient system. One that can both efficiently manage the world’s growing resource scarcity, while thriving amongst a steadily declining population.
In all, we need something radical enough to save us, but familiar enough to be accepted by a world population that may become increasingly sceptical and fearful of change.
From this writer’s perspective, there are two core options/directions a future financial system may evolve towards in order to meet the challenges of tomorrow. In order of least to most disruptive and familiar, these options include: a financial system influenced by Demurrage (using a kind of Scrip currency) and a Resource Based Economy.
Unfortunately, detailing how each may work will each take an article unto themselves. That’s why two further articles will be published in future Arbitrage issues that will comprise a series exploring the different alternatives our flawed financial system may evolve into and how each may change the world and how we will live in it.
Such a change may seem impossible now. To imagine a world where a whole other financial system takes over, one entirely different from what has claimed dominance for so many generations, certainly seems inconceivable. But as every historian can tell you, what seems impossible today may just become the commonplace reality of tomorrow.
100 years ago, who knew that man would be able to fly and then land on the moon? In our generation, who knew that computers and the Internet would revolutionize nearly every dimension of human existence?
And so too with our financial system.
Nothing is meant to last forever. In the end, a revolution happens roughly every quarter century in some form or another— and we’re about due for the next one. So when it happens, don’t be surprised if it changes everything.
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