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Ep 29  |  Josh Farley

Josh Farley: “Money, Money, Money”

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TGS07 Josh Farley The Great Simplification

On this episode we meet with ecological economist and Professor in Community Development & Applied Economics and Public Administration, Josh Farley.

Money. What is it? Where does it come from? How is it created? How is it tethered to our biophysical balance sheet? What is on the horizon with our monetary system? How might we create and use money differently in the future during a source and sink contained system? Josh Farley explains it all – and explains how the links between money, energy, and the economy will become more central in our lives.

Click here to listen to Josh and Nate’s first conversation on cooperation/competition.

About Josh Farley

Josh Farley is an ecological economist and Professor in Community Development & Applied Economics and Public Administration at the University of Vermont. He is the President of the International Society for Ecological Economics.

In French, we have a motto that says that a simple drawing is often better than a long explanation. Jean-Marc Jancovici Carbone 4 President

That’s very understandable because with left atmosphere thinking, one of the problems is that you see everything as a series of problems that must have solutions. Iain McGilchrist Neuroscientist and Philosopher

We can’t have hundreds and hundreds of real relationships that are healthy because that requires time and effort and full attention and awareness of being in real relationship and conversation with the other human. Nate Hagens Director of ISEOF

This is the crux of the whole problem. Individual parts of nature are more valuable than the biocomplexity of nature. Thomas Crowther Founder Restor

Show Notes & Links to Learn More

00:30 – Josh Farley works, info, previous podcast

04:03Money Creation in the Modern Economy (Bank of England papers)

05:07Mainstream economic theory of money

05:20The myth of the barter economy

05:34Adam Smith explaining money as a means of barter

05:51 A reciprocity economy

07:05Money evolved to track reciprocal exchange – negating the need for relationships & trust

08:03Dunbar’s number

09:23The Bank of England report, Richard Werner

09:42 How the government creates money (Federal Reserve/Central Bank Notes)

10:28Fractional reserve banking vs how it actually works

12:33There is no interest created when loans are made

14:21 Exponential growth cannot be matched by a finite planet

14:55Loaning money to buy existing assets (stocks)

15:18Only IPOs are investments actually investing into capital for productive things

15:55 In the last 10 years, stock buybacks by existing companies exceeded new stocks 10:1

17:48Creating new money is a claim on future resources

21:18Land speculation

21:49Thorstein Veblen – Business vs industry

22:13Finance accounts for 8% of global GDP, quadrupled in the past few decades

22:23Paul Volcker comments on FIRE sector

24:12 How long has inflation been a standard yearly thing

24:46Interest rates have been a thing for thousands of years

25:02Many societies had jubilees

25:41 Deflation was a concern for about 20 years

26:04 Oil price skyrocket in the recession

28:04Conventional economics believes technology will always solve scarcity

30:45 Modern Monetary Theory

31:15We do not have unused ecological capacity

32:22 How ‘printing’ more money affects currency internationally

34:28We are doubling debt every 8-8.5 years and doubling economy every 20-25 years

35:00 How the Great Depression and the Great Recession happened

36:40 Debt deflation

37:21We have a cyclical boom/bust system

38:38 Leverage ratio of US Central Bank and European Central Bank

42:45Quantitative easing

43:35 Constitution on creating money

44:5285% of politicians in England do not understand that banks create money

45:19US debt is 360% of GDP

47:38 Household debt is 80% of GDP

47:48Wages for the poor are rising at record rates

49:06Many corporations are jacking up prices using market power and making record profit

50:19Brazil’s hyperinflation

53:19EROI

54:18 Good Inflation

58:53We feel physical and social pain in the same part of our brain

59:55NYT article: businesses investing in green tech can’t be competitive with crypto

1:00:58North Dakota State Bank, and other states thinking of creating public banks

1:02:20 – Brazil’s Atlantic Forest cover is at 20%, it needs to get up to 30%

1:02:45Creating new parallel currencies

1:04:42 Bernard Lietaer

1:05:13Jobs Guarantee

1:07:22Detethering from the gold standard

1:07:58Early theories that goldsmiths acted as early banks

1:08:37 Fiat currencies only last 30-40 years

1:09:30The Real is the strongest currency in Latin America

1:09:45Inflation Backed Bond

1:10:29Public Banking

1:15:59 Social Media commons

1:19:15 The most satisfying things you can do are solving problems as a group

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