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Nov
23

Soverign Defaults and Hansen's plea for Fee and Dividend

Post By gaia1 in Fee and Dividend

Sovereign Defaults and Hansen’s plea for Fee & Dividend

Tuesday, November 23, 2010

In today’s New York Times sovereign defaults are being discussed without trepidation given the weaker nations in the Euro zone. At the same time Hansen in an op-ed piece of the South China Morning Post of November 3 strongly argues that fossil-fuels have to be charged for their emissions in order not to have the world’s climate to go beyond 400 ppm. That would result in a sea-level rise of 26 meters, not at the end of the century, but by 2016. If the ppm would reach above 550, the sea level rise would  to 75 meters, making the planet desolate and ice-free. It would become EEarth in McKibben’s view.

Hansen shows how the Fee & Dividend is a realistic approach to face this grim future. To face this grim future from happening, nations have to start overhauling their monetary system and basing them on credit rather than debt as is now the case. Furthermore, by basing this credit international monetary system on a carbon standard, humanity would be set to face this grim reality pro-actively. If geo-engineers are developing enormously complicated physical projects, why should social scientists, including economists, not engage pro-actively in social systems that are able to deal with both the climate and the monetary crises of defaults caused by debt-based financial and economic systems?