Introduction
Monetary conference calls COP28’s attention to the connection between the current dysfunctional monetary system and environmental degradation, including climate change
Chicago, November, 2023 — Last month, from September 29 until October 1, the American Monetary Institute (AMI) held its 19th annual conference on monetary theory and reform.
The conference brought together some of the world’s leading experts on monetary history and theory with some of the world’s most serious advocates of real and achievable economic and monetary reforms.
Attendees of the conference and, since then, other interested parties and individuals were and still are invited to sign a statement addressing the strong correlation between the current, debt-based monetary system and environmental degradation.
We call for the debt-based system to be changed into a sovereign monetary system; to develop similar institutions at an international level; and for the UN to set up a commission of monetary inquiry.
The concise statement being released to the participants of the UN Climate Conference’s COP28 is as follows:
The Statement
We acknowledge there exists a strong correlation between the current, debt-based monetary system and environmental degradation, including climate change. It acts through multiple paths of transmission, which have to be taken into account to find just and sustainable solutions.
The current monetary system is a debt-based system, because most of the money used for economic transactions, both in the real economy and the Finance, Insurance and Real Estate (FIRE) sector, is generated through the creation of debt when banks extend loans. This system is also a major cause of destructive economic boom and bust cycles, and creates socioeconomic inequality and political polarisation between and within creditor and a debtor classes.
Furthermore, we strongly believe that sovereign monetary reform (SMR) will allow substantial public investments, which are required to steer global civilization from our brown, carbon-based age to a green, equitable, post- fossil fuel age with a balanced carbon cycle.
In the case of the USA, SMR would entail the three following inter-connected changes to its current design:
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- Requires Congress to be the sole creator of all U.S. money debt-free, as authorized in the U.S. Constitution;
- Ends the privilege of commercial banks to create money; and
- Makes all remaining operations of the Federal Reserve System accountable to the public.
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At an international level parallel institutions and regulations should be developed including: 1) a supranational reserve currency; 2) an international clearing system; 3) a monetary authority of currency issuance; and 4) an advisory Intergovernmental Panel on Economic and Social Issues (IPESI) to assess progress and detect problems.
Given the promising nature of SMR, we, the undersigned, therefore call for a UN Monetary Commission to investigate the strengths and weaknesses of the current monetary system, and to evaluate alternate proposals, especially SMR, to improve it.
Please Sign
The statement with ample background references and names of signers can be found on-line here.
If you like to add your name please fill out this form.
Add, if you like, town, state & country, institutional affiliation and any titles.
For questions email Steven Walsh or Govert Schuller.
AMI is a publicly supported charity to present the results of research leading to monetary reforms that bring forth a greater level of economic justice. The institute was founded in 1996 by Stephen Zarlenga, author of The Lost Science of Money.
Contact: Steven Walsh, Executive Director, (773) 636-8255, stevenjjwalsh@gmail.com
