The Future of Money: Beyond Greed and Scarcity
Encyclopedia
The Future of Money is a book written by Bernard Lietaer
, published by Random House
in 2001, and currently out of print. It was written as an overview of how money and the financial system works, the effects of modern money paradigms, especially relating to debt
and interest
, and how it can work to everyone's benefit to solve a wide range of problems, especially with the use of complementary currencies . The book is meant to be written for the layperson, while bringing light to subjects that only relatively few are aware of at all levels of society.
Lietaer gives examples of different currencies that have been used in the past or are being used, and the positive and negative effects they carry. He writes that while the modern money paradigm has both positive and negative consequences, eg that it induced industrialisation
, these currencies can exist in complement at the local, regional and international levels, as well as there being currencies for various sectors
, such as healthcare. Lietaer writes that in order to optimally solve problems and create a healthy society, the world needs a variety of currencies in our "toolbox", and that otherwise we are "painting with a screwdriver".
is fundamentally changing money and the financial system, and what it means for us. He ends part one with five scenarios of what can happen when the five core problems mentioned in the first chapter bear down, and especially after a monetary crash.
, Wara
, and Ithaca Hour, and community enabling currencies, such as LETS, and also gives examples of corporate currencies, such as Frequent Flyer Miles.
In addressing practical issues, one important solution given is the idea of a complementary clearing house to trade currencies, giving them additional value. He gives a proposal for a global demurrage currency he dubs the terra, which would be backed by a basket of goods generated on commodity exchanges and including a demurrage fee associated with the costs of storing the commodities. In his outline of sustainable abundance, Lietaer gives a scenario where people have the freedom to gain a livelihood from their work
, defined as what people desire to do, as opposed to the job
, which was created during, and an artifact of the industrial revolution
, and wealth is sustainable, distributed, and in abundance.
Bernard Lietaer
Bernard Lietaer is an economist, author and professor. He studies monetary systems and promotes the idea that communities can benefit from creating their own local or complementary currency, which circulate parallel with national currencies.Bernard Lietaer, the author of "The Future of Money:...
, published by Random House
Random House
Random House, Inc. is the largest general-interest trade book publisher in the world. It has been owned since 1998 by the German private media corporation Bertelsmann and has become the umbrella brand for Bertelsmann book publishing. Random House also has a movie production arm, Random House Films,...
in 2001, and currently out of print. It was written as an overview of how money and the financial system works, the effects of modern money paradigms, especially relating to debt
Debt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
and interest
Interest
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds....
, and how it can work to everyone's benefit to solve a wide range of problems, especially with the use of complementary currencies . The book is meant to be written for the layperson, while bringing light to subjects that only relatively few are aware of at all levels of society.
Lietaer gives examples of different currencies that have been used in the past or are being used, and the positive and negative effects they carry. He writes that while the modern money paradigm has both positive and negative consequences, eg that it induced industrialisation
Industrialisation
Industrialization is the process of social and economic change that transforms a human group from an agrarian society into an industrial one...
, these currencies can exist in complement at the local, regional and international levels, as well as there being currencies for various sectors
Sectoral currency
A sectoral currency is a form of complementary currency that is restricted to a specific sector. Examples of sectoral currency are the Saber, which is restricted to the educational sector and thus can only be used to buy education and the Hureai kippu, which is restricted to the health care...
, such as healthcare. Lietaer writes that in order to optimally solve problems and create a healthy society, the world needs a variety of currencies in our "toolbox", and that otherwise we are "painting with a screwdriver".
Outline of Parts
Following the introduction and first chapter, where Lietaer outlines five core problems people are facing worldwide, the book is divided into two parts.Part 1: What is Money
Following a chapter-by-chapter outline, Lietaer points to a Primer on How Money Works, which is as an appendix. He then goes on to explain the origins of our money system, and the underlying problems and benefits of it. Lietaer explains how the cybersphereCybersphere
Cybersphere is a "ball and paddle" game similar to Arkanoid. The game and its sequel have recently been released as freeware by the designer.It was designed by Clay Hellman and published by Psycon Software....
is fundamentally changing money and the financial system, and what it means for us. He ends part one with five scenarios of what can happen when the five core problems mentioned in the first chapter bear down, and especially after a monetary crash.
Part 2: Choosing Your Future of Money
Lietaer devotes the latter part of the book to outlining the variety of currencies that have existed in the past and exist today, with an outline of how they can be optimized towards sustainable abundance, the most preferable outcome of the five scenarious listed in the first part. Complementary currencies are divided into work enabling currencies, such as the Worgl Stamp ScripWörgl
Wörgl is a town in Tyrol, Austria, in the Kufstein district. It is 20 km from the state border with Bavaria.-Transport:Wörgl is an important railway junction between the line from Innsbruck to Munich, and the inner-Austrian line to Salzburg...
, Wara
WARA
WARA may refer to:* Weighted average return on assets, the collective rates of return on the various types of tangible and intangible assets of a company* WARA , a radio station licensed to New Washington, Indiana, United States...
, and Ithaca Hour, and community enabling currencies, such as LETS, and also gives examples of corporate currencies, such as Frequent Flyer Miles.
In addressing practical issues, one important solution given is the idea of a complementary clearing house to trade currencies, giving them additional value. He gives a proposal for a global demurrage currency he dubs the terra, which would be backed by a basket of goods generated on commodity exchanges and including a demurrage fee associated with the costs of storing the commodities. In his outline of sustainable abundance, Lietaer gives a scenario where people have the freedom to gain a livelihood from their work
Employment
Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...
, defined as what people desire to do, as opposed to the job
Job (role)
A job is a regular activity performed in exchange for payment. A person usually begins a job by becoming an employee, volunteering, or starting a business. The duration of a job may range from an hour to a lifetime . If a person is trained for a certain type of job, they may have a profession...
, which was created during, and an artifact of the industrial revolution
Industrial Revolution
The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the social, economic and cultural conditions of the times...
, and wealth is sustainable, distributed, and in abundance.