A New Money, Banking and Financial System for a New Economy

A life serving New Economy requires a banking and financial system devoted to investing in the creation, rather than the expropriation, of real wealth.

About the Discussion (This NET Discussion took place on January 25, 2011)

In 2008, Wall Street plunged the U.S. economy into the worst crisis since the Great Depression. Wall Street received a generous public bailout and quickly recovered – while Main Street continues to languish.
 
Politicians and pundits rarely inquire into the reasons for this disparity. Doing so would expose the reality that the U.S. is ruled by a plutocracy, not a democracy, and would focus citizen anger on the structure of the institutional system that gives Wall Street bankers their power.
 
The 2008 financial crash was a direct and inevitable consequence of a social engineering experiment conducted by Wall Street interests that allowed Wall Street financial institutions to consolidate their control of the creation and allocation of money beyond the reach of public accountability.
 
For several decades, the priority of the money system shifted from funding real investment for building community wealth to funding financial games designed solely to enrich Wall Street without the burden of producing anything of real value.
 
The proper function of money is to facilitate the sustainable and equitable utilization of resources to fulfill the needs of people, communities, and nature. This calls for a community-based and democratically accountable system of money, banking, and finance that functions to create and allocate money as a well-regulated public utility.
 
This NET discussion presents an agenda for ending Wall Street’s disastrous experiment and creating community-based, publicly accountable money and banking system responsive to the needs and opportunities of the U.S. in the 21st century.
 
John Cavanagh, co-chair of the New Economy Working Group, moderates the discussion, while David Korten, co-chair of the New Economy Working Group, introduces the major themes for the discussion and gives an overview of the NEWGroup's paper (How to Liberate America from Wall Street Rule ). Stacy Mitchell, co-director of the ILSR (Institute for Local Self-Reliance) and director of Community-Scaled Economy Initiative, explains how we can strengthen and rebuild systems of local community banks and credit unions. Founder and president of the Public Banking InstituteEllen Brown, discusses initiatives to create state banks and how to monetize the Federal debt. Jared Gardner, founder of the Move Your Money Campaign, shares his experience of the state bank initiatives in Oregon. To conclude, The Nation's Bill Greider provides recommendations for restructuring the Fed Reserve to increase transparency and accountability. 

Suggested Background Readings 

YouTube Playlist of the Opening Presentations (The full conversation is in the minutes below.)

 

Minutes

These minutes (PDF) contain not only the presentations shown in the main video above, but also question and answer sessions that took place throughout the session.

Additional Resources

For questions and comments, see the forum for this NET Session

                                                             Part of the NET Discussion series