As a continuation of my last post and the conversation about how and why I became concerned about the global economy in the first place. I decided I would post an insightful and very interesting conversation created by the CBC, which I very much enjoyed.
This is Part 1 of 2 where CBC tackles the question of "what is money?", and they explore concepts like: the history of currency, barter economy, money as a store of value, and the 2008 banking crisis and whether we learned anything from that crisis.
If you question the existing economic system's sustainability, and if you are interested in crypto currency, you will find this interesting.
Question:
"What will it take for people to demand change?"
Answer:
“…We should have had a major collapse in 2008 because that would have created such a wave of indignation, and that would have created political capital, and so a new generation of politicians could have risen up and said ‘Ok we are going to do this really differently’. The thing is that, had we allowed the financial sector to implode, democracy may have imploded with it. No politician wanted to take this risk… the trouble is… nobody realizes just how dangerous this system is.”
“…It’s so tempting for people to believe that this time it’s different, that no it’s not a bubble, in the old days there was growth and so there was an increase in the money supply, right now it’s the other way around, we continue to increase the money supply hoping this will produce growth, but it only produces actual growth if that goes into productive investments so meaning we produce more with the same input, and it doesn’t seem to work that way, it’s mostly either sitting in the markets doing nothing, propping up bubbles, or going into consumption, and consumption is not growth.”
- The Illusion of Money - Part 1, Ideas, CBC
- http://www.cbc.ca/player/play/2684315553/
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Stay tuned.
