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Nov
29

Australia's climate and energy strategy

Post By gaia1 in Fee and Dividend

AUSTRALIA’S CLIMATE AND ENERGY STRATEGY AND THE TFD

Tuesday, November 29, 2011

There are several outstanding elements to Australia’s climate and energy strategy:

1.      There is a ministry that institutionally integrates climate and energy policies;

2.      Australia takes the lead without waiting for others in setting a price on carbon and without being autarkic because it carefully considers its policies in the global context by linking it, particularly during the flexible period;

3.      It strikes a balance on carbon pricing during the fixed period of 2012-2015 where the price is set on $23 a ton of CO2 after which the price is subject to change to world markets during the flexible period of carbon pricing;

4.      It uses an upstream carbon taxing administration by taxing 500 companies instead of using a downstream method of carbon taxing millions of residents;

5.      It educates its citizenry by an exemplary website and publications, using modern mass media and involving youth and others

6.      Its tax and dividend system will ensure acceptance by the public who can save upon their carbon dividends by increasing personal energy efficiencies;

7.      Its carbon reduction method is fair and fast: polluters pay starting in July 2012;

8.      Its sets clear emission targets: 5% by 2020 and up to 15 to 25 % depending upon the scale of  global climate action.

The Tierra Fee & Dividend (TFD global governance uses the Fee & Dividend carbon reduction method which is slightly different from the tax and dividend method and shares its being fair and fast.

In addition to the use of similar carbon reduction methods both systems integrate climate and energy, but in different ways. The TFD brings in the issue of a dysfunctional international monetary system which is being used to combat the climate crisis and advance sustainable development. By transforming that system by basing it on a carbon standard, a society’s currency and economy is strengthened to the extent it decarbonizes and engages in a renewable energy infrastructure.

Given that Australia has taken leadership in devising an innovative climate and energy strategy, could it become the first country that would take leadership at the 2012 Rio Conference to have the TFD global governance system considered as an integrated alternative for global economic, social and environmental development? In various ways the International Institute for Monetary Transformation is reaching out to various governmental and non-governmental organizations in Australia to make that a reality.

 

Nov
29

Response to Reuters talking about euro-demise

Post By gaia1 in European Union

RESPONSE TO REUTERS TALKING ABOUT EURO-DEMISE.

Tuesday, November 29, 2011

In addition for Reuters piecing together a “picture of patchy preparedness for the possible demise of the 12-year-old euro currency” (http://www.reuters.com/article/2011/11/29/us-euro-zone-contingency-idUSTRE7AS0H020111129?feedType=nl&feedName=ustopnewsearly)  Reuters could also put together a picture of alternatives not only to the euro problems, but to problems in the international monetary system. Thus, a picture could emerge where the banking system would not engage in money creation, where the international financing system is a credit- rather than debt-based system and, finally, where the international monetary system which as glue binds the global systems together adopts a monetary standard, not a pure or flexible gold standard, but a carbon standard. Adopting a carbon standard would also resolve humanity’s major challenge of the 21st century, i.e. the climate crisis. Curious how this would work? See www.timun.net and the forthcoming Cosimo book THE TIERRA SOULTION: Using a transformed international monetary system to combat climate change and advance low carbon and climate resilient development.

 

Nov
09

Christine Lagarde's lost decade

Post By gaia1 in IMF/WorldBank

CHRISTINE LAGARDE’S “LOST DECADE”

Wednesday, November 09, 2011

Googling the above terms this morning some 100 papers, magazines and blogs dealt with her speech at China-India annual financial forum. It would be most interesting and educational to study the reaction to this speech and learn to what depth the communication of this important speech has been dealt with. My first impression is little depth, at least in the first day of its presentation, having looked at the coverage of Businessweek and the India Times.

This “lost decade” speech is important because she, as executive director of the IMF, has a global view and secondly because she attended the G20 Summit in Cannes last week. It took place after two presidents in the Euro zone were removed from their positions and when Italy’s bond payments passed the 7% limit, bringing this huge Italian economy into the fold of countries that will have to be bailed out.

Lagarde’s message was clear: cooperate or otherwise the global economy will go from bad to worse and the decade may be lost in the same way Japan’s decade of the 1990s was lost by being unable to come up with proper domestic and international policies.

What is Lagarde presenting as a solution in the short and long term? She pleads with Russia and China to contribute to the Euro Bailout Fund so that the Eurozone does not fall apart. Her view for long term solutions or solution is more exhortatory of being cooperative and bold without indicating what that boldness could consist of. We have to “keep our eyes on the big prize—a strong, sustainable and balanced recovery”. Should it be more of the same? Should it be recovery or transformation? Where is the equity dimension of the recovery? How are the demands of the global protest movement penetrating the IMF, the ears of the Euro Area Leaders, the G20 Summiteers? Why not tackle the international monetary system first: everybody knows that the world is based upon money—at least in the industrialized and industrializing nations where barter is almost completely absent? Why not integrating the dangerously precarious global economic situation and the climate crisis challenge into a monetary system that tells nations that in the long term those nations that decarbonize their societies the most are the ones that will have the strongest economies and currencies? Why should Lagarde not start talking of taking monetary justice as the guiding principle for global governance rather than only pointing to China’s increased political and economic power as a favorable (?) change in global governance?

 

Nov
09

.."link the standard to what matters"...

Post By gaia1 in IIMT

…“LINK THE STANDARD TO WHAT MATTERS”…..

Wednesday, November 09, 2011

These are the works of John Maynard Keynes in his 1924 book Gold in 1923 in his discussion of a currency reform. That reform has two objectives: “to remedy the credit cycle and to mitigate unemployment and all the evils of uncertainty.” In order to do this  he advises to link the monetary standard “to what matters, namely, the value of staple articles of consumption, instead of to an object of oriental splendor, it is true, and one to which Egyptian and Chaldean bank directors attributed magical properties, but not otherwise useful in itself and precarious in its future prospects”.” In his own inimitable way Keynes clearly indicated that gold is not what matters.

This blog has spent considerable thought over the years on gold as a standard. Searching the site with the term gold delivers 4 blogs over the years. I have appended below the most recent comparison between the gold and carbon standard; it is the version that will appear my forthcoming book. The earlier comparison chart was from the June 14, 2010 blog.

COMPARING THE GOLD AND THE CARBON STANDARDS

====================================================

Features                       Gold standard             Carbon standard

Usage                          for about 100 years     proposed

Proponents                  declining                     increasing

Basis of standard        gold                           de-carbonization

Origin                          leading nations            international community

Coverage                     mostly Western           universal

Availability                 gold supply limited     CO2e too much

Price volatility             high                             none

Rigidity                       rather high                   less so

Effectiveness              moderate                     promising

Enforcement               national authorities      Global Central Bank

Financial system        debt-based                    credit-based

Banking system           privilege of money creation    no such privilege

Future                          no future                     good prospects

C IIMT 2011

 

 

Nov
01

Monetary Education and Prosperity

Post By gaia1 in European Union

Yesterday Greek Prime Minister decided that the Greek people will vote on the financial bailout that was hammered out over several weeks and months. This referendum on the bailout assumes that the Greek people are versed in the ins and outs of the bailout, for themselves, the Greek nation, the euro zone countries, the European Union, and the world monetary, financial, economic and commercial systems. Instead of educating the Greek population about those ins and outs, the Greek government with its weak majority in parliament devolved its responsibility to the people who will vote no, because they will not include the wider regional and global consequences of their vote.

However, the lack of proper monetary education is not only reserved to Greece. Several organizations such as FAME (Foundation for the Advancement of Monetary Education http://www.fame.org/index.htm  and the Lehrman Institute and others in the USA are hard at work to convince people that fiat money is a fraud and that the international monetary system is to be based upon a commodity money such as gold and silver. Though they are rightly point to the severe shortcomings of the international monetary system, their proposed solution of returning to the gold standard without considering other alternatives can also not be considered real education where people are led forth to considering pros and cons of various approaches.

There is a great dearth of such balanced monetary education, not little due to the fact  that monetary economists constitute only 1% of the economics profession. Economics education on graduate, undergraduate and high school levels does not deal in any depth with the issues of money creation and control, balance of payments, currency manipulation and speculation, reserves currencies and the workings of the global reserve system, etc.,etc. In such poor educational context the power of corporate-sponsored think tanks becomes enhanced.

The volatility in the monetary, financial, economic and commercial systems is detrimental in all those systems and works against raising prosperity for all that is socially and ecologically beneficial. Given that the international monetary system as glue and lubricant of those international systems is the linchpin for producing that prosperity, it is most important that far greater emphasis is to be placed on monetary education which shows the ins and outs of the various alternatives of the present system. That system has to be fundamentally changed or overhauled. The Tierra system is proposed as one of those alternatives.