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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  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.