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Annotated captions of Ben McLeish - The Future of Economics - A Perspective from The Zeitgeist Movement in English

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tzmofficial 00:01
00:04

This lecture is going to actually form part of six lectures

tzmofficial 00:05
00:08

focusing on the root causes of our society's problems.

tzmofficial 00:08
00:11

[Are you going to do all six now?] - No, no, sadly not, no.

krusedianna 00:11
00:14

There will be 6 one-hour lectures. They'll be available online.

tzmofficial 00:14
00:17

They're really to give people a sense of idea

tzmofficial 00:18
00:21

of how our movement came about because the fundamental root causes

tzmofficial 00:21
00:24

that have informed our world views are not to be summed up

krusedianna 00:24
00:27

in a nice kind of ten-minute elevator speech.

krusedianna 00:27
00:31

This is the first one, and as this is already telling you

tzmofficial 00:31
00:34

this one focuses on the monetary system specifically.

tzmofficial 00:35
00:37

It should be noted that a complete understanding of the tenets

tzmofficial 00:37
00:40

social goals and understandings of the movement I represent

tzmofficial 00:41
00:44

can't be achieved through this lecture alone, but I think it will be

tzmofficial 00:44
00:49

a very useful starting point and I hope that by the end of today

tzmofficial 00:49
00:53

if anything, you will have a look at some of the societal constructs

tzmofficial 00:53
00:56

that affect us every day with fresh eyes.

krusedianna 00:58
01:03

Before I begin, a word on the two organizations that I speak on behalf of.

krusedianna 01:03
01:05

I'm primarily a member of The Zeitgeist Movement

krusedianna 01:05
01:08

a global, decentralised grassroots organisation

tzmofficial 01:08
01:10

founded at the very end of 2008.

tzmofficial 01:10
01:13

The term "zeitgeist" means the dominant intellectual

tzmofficial 01:13
01:16

moral and cultural climate of an era.

krusedianna 01:16
01:20

The closest transliteration is the German "spirit of the age".

tzmofficial 01:20
01:23

The term "movement" simply denotes motion or change.

tzmofficial 01:23
01:26

As such, The Zeitgeist Movement calls for a change

tzmofficial 01:26
01:31

in the dominant intellectual, cultural and moral climate of the time.

tzmofficial 01:32
01:35

The Zeitgeist Movement is an activist and communications arm

tzmofficial 01:35
01:39

of another much older organisation called The Venus Project

tzmofficial 01:39
01:43

which under the direction of Jacque Fresco and his associate Roxanne Meadows

tzmofficial 01:43
01:46

has focused on the technological redesign of an entirely new social system

tzmofficial 01:47
01:49

known as a Resource-Based Economy.

tzmofficial 01:49
01:52

At its core, the application of the current state of science

krusedianna 01:52
01:55

and technology for social concern sits

krusedianna 01:55
01:58

using the scientific method and practicality

tzmofficial 01:58
02:00

to maximise the quality of life for all people.

tzmofficial 02:01
02:04

This is to be achieved through tangible solutions to our problems we face

tzmofficial 02:04
02:08

instead of hollow rhetoric and opinion.

tzmofficial 02:08
02:11

Our reasoning behind our conclusions are not based on political opinion

tzmofficial 02:12
02:15

nor are they idle speculation nor are they stop-gap measures

tzmofficial 02:15
02:18

to treat the symptoms of a society as a psychiatrist will treat

tzmofficial 02:18
02:22

a psychological aftermath of a patient's experiences.

tzmofficial 02:22
02:24

We would rather minimize, and if possible

tzmofficial 02:25
02:27

wholly preclude the situations that got the patient

tzmofficial 02:27
02:30

in front of the psychiatrist in the first place.

tzmofficial 02:30
02:33

Our main focus therefore is to pinpoint the root causes

tzmofficial 02:33
02:36

of these ill-effects and to propose straightforward concrete solutions

tzmofficial 02:37
02:39

based on the inferential logic and the scientific method

tzmofficial 02:39
02:43

and applied for global concern holistically.

tzmofficial 02:44
02:47

I wanted to address in the introduction some common barriers we have

tzmofficial 02:47
02:51

when it comes to the analysis of economics in our current society.

tzmofficial 02:51
02:54

In today's world, many of us question the institutions

tzmofficial 02:54
02:56

we're brought up in and by which we're influenced.

krusedianna 02:56
02:59

In fact, it has become a slightly more promoted disposition

tzmofficial 02:59
03:03

that questioning authority is healthy than in prior human history.

tzmofficial 03:03
03:05

After all, questioning religion no longer is

tzmofficial 03:06
03:08

tantamount to being burnt at the stake.

tzmofficial 03:08
03:10

And the development and adoption of the scientific method

tzmofficial 03:11
03:13

has allowed humanity to update and revise its knowledge

tzmofficial 03:13
03:15

of the physical world by systematically adopting

krusedianna 03:15
03:19

a viewpoint of skepticism while hypotheses are tested

krusedianna 03:19
03:24

and until they are proven true or false and adopted or not.

tzmofficial 03:24
03:26

Indeed, any and all social protest

tzmofficial 03:26
03:29

is essentially a questioning and a conscious rejection

tzmofficial 03:29
03:32

of some pre-existing or presented framework.

tzmofficial 03:33
03:37

Yet, of all the institutions common across the globe

tzmofficial 03:37
03:40

be they political, social, religious or national in origin

tzmofficial 03:40
03:42

none has remained so thoroughly unquestioned

tzmofficial 03:43
03:45

and even beyond the most basic analysis or understanding

tzmofficial 03:45
03:49

by most people than the monetary system itself.

tzmofficial 03:49
03:52

Even as the system of monetary finance is displacing

tzmofficial 03:52
03:54

more than six million American homeowners

tzmofficial 03:54
03:57

and half the world's six billion people are now

krusedianna 03:57
04:02

classed as suffering through poverty, one billion starving

krusedianna 04:02
04:06

a figure is up, by the way, by 80 million since the early 1990s

tzmofficial 04:06
04:10

the system remains unscrutinized despite its global presence.

krusedianna 04:10
04:12

Here are some reasons why:

krusedianna 04:12
04:16

Economics is often viewed as a rather dull and abstract subject.

krusedianna 04:16
04:19

In fact, I'm amazed you're even all here today.

tzmofficial 04:19
04:21

Financial news tends to be presented

krusedianna 04:22
04:24

and dominated by complex-looking graphs

tzmofficial 04:24
04:28

which don't allow for any real understanding of the subject being discussed

tzmofficial 04:28
04:32

silently promoting the idea that this is an area best left to the experts

tzmofficial 04:32
04:34

to well-paid economists and bankers.

krusedianna 04:34
04:38

Abstract terms like derivatives, mortgage-backed securities and

tzmofficial 04:38
04:40

strangely named institutions like Fannie Mae

tzmofficial 04:40
04:44

and Freddie Mac are not only hard concepts for me

tzmofficial 04:44
04:46

I don't encounter these abstractions in real life.

krusedianna 04:46
04:49

No one has ever sold me a mortgage-backed security.

tzmofficial 04:49
04:51

I've never been contacted by Fannie or Freddie

krusedianna 04:51
04:55

and I'm sure it's taken quite a few days for some people other than myself

tzmofficial 04:55
04:58

to even catch onto the fact that these aren't even real people.

tzmofficial 04:58
05:02

They're institutions. Economics isn't like football.

tzmofficial 05:02
05:04

It's not like the physical process of shopping.

tzmofficial 05:04
05:09

And even worse, it sounds like it might be about maths.

tzmofficial 05:10
05:13

We shy away from this mess of abstract terms

tzmofficial 05:13
05:16

and we fear that we might not understand them

krusedianna 05:16
05:20

and suspect that we would dislike them if we did.

tzmofficial 05:20
05:23

Others simply don't see a need to question the monetary system.

tzmofficial 05:23
05:26

After all, isn't simply the method by which goods are transferred

tzmofficial 05:26
05:28

and so, anything that simply represents that method is

tzmofficial 05:29
05:32

natural, necessary and will function as dictated by the needs

tzmofficial 05:32
05:37

of a populace to earn, buy and survive in a social construct.

tzmofficial 05:37
05:39

We do all rely on resources in some form or other

tzmofficial 05:39
05:42

and since we don't have absolutely everything

tzmofficial 05:42
05:45

a unified, preferably, global exchange mechanism

tzmofficial 05:45
05:48

seems the necessary steps in easing

tzmofficial 05:48
05:50

any process of acquisition and hence, survival.

tzmofficial 05:50
05:55

How can it be questioned any more than we question the need for air?

tzmofficial 05:56
05:58

For others still, the monetary system which applies to their community

tzmofficial 05:59
06:02

and day to day routine seems to be embedded so heavily in the framework

tzmofficial 06:02
06:06

of their lives that it appears not to even be a system at all.

krusedianna 06:06
06:09

It is part of the landscape, invisible to their day-to-day lives

krusedianna 06:09
06:12

exactly because it is a function of their day-to-day lives.

tzmofficial 06:12
06:15

Like the ancient music of the spheres which was theorized

krusedianna 06:15
06:18

by ancient philosophers when describing the nature of planets in orbit

krusedianna 06:19
06:21

it is this ever-present thing from birth

tzmofficial 06:21
06:24

and therefore invisible and undetectable.

krusedianna 06:24
06:27

It's not so much that it's hard to single out for people.

krusedianna 06:28
06:30

It's the very idea of singling it out [that] seems impossible

krusedianna 06:31
06:32

for it doesn't even occur as a possibility.

krusedianna 06:33
06:36

It doesn't even appear as a separate entity.

tzmofficial 06:36
06:39

Maybe it's also because economics relies on a numerical bias

tzmofficial 06:40
06:42

on mathematics, equations and graphs.

tzmofficial 06:42
06:46

It seems therefore likely to be based on logic, measurability

tzmofficial 06:46
06:48

and as true and immutable as those of physics

tzmofficial 06:48
06:51

biochemistry or other sciences.

tzmofficial 06:51
06:53

And while elements of physics are questioned, revised and updated

krusedianna 06:54
06:58

upon their receipt of proof, physics itself remains entirely intact.

tzmofficial 06:58
07:00

In fact, once revisions and corrections are made

tzmofficial 07:00
07:05

physics has itself become a more established entity than it was before.

tzmofficial 07:06
07:09

Yet, as we'll find later on, not only are the supposed laws of economics

tzmofficial 07:09
07:12

not only based on no real-life referents whatsoever

tzmofficial 07:13
07:15

when the analysis of the processes of money creation

tzmofficial 07:15
07:18

its tangible negative effects upon society and the behaviours

tzmofficial 07:18
07:22

it instills upon and encourages in members of society

tzmofficial 07:22
07:24

one sees that there is almost nothing in the system

tzmofficial 07:24
07:26

of modern economics as it now stands

krusedianna 07:26
07:30

that is of any real value to our process and well-being.

tzmofficial 07:31
07:35

And yet the most powerful force that has rendered the system of economics

krusedianna 07:35
07:38

as it stands now beyond analysis, is this closed-door brotherhood

krusedianna 07:38
07:41

of the initiated "Guardians of the Status Quo"

tzmofficial 07:41
07:44

who form the population of modern economics

tzmofficial 07:44
07:46

authorities, credentialed economists

tzmofficial 07:47
07:50

trained by the already established institutional logic

krusedianna 07:50
07:53

CEO's and other lofty and well-paid positions.

tzmofficial 07:53
07:56

These are the men and women who should be dealing with economics

krusedianna 07:56
07:59

not average Joes like myself, right?

krusedianna 07:59
08:02

Let me remind you that throughout the glorious period

tzmofficial 08:03
08:07

of history known as the Dark Ages precisely this mechanism of initiation

tzmofficial 08:07
08:09

and separation was employed by the Church

tzmofficial 08:09
08:12

to avoid its institutional power being questioned

tzmofficial 08:12
08:16

and to keep education, anything it deemed a threat to its establishment

tzmofficial 08:16
08:19

or even reading out of the reach of the remaining inhabitants

tzmofficial 08:19
08:22

of that socio-cultural landscape.

tzmofficial 08:23
08:25

This sentiment is particularly well-expressed by John McMurtry

krusedianna 08:25
08:29

author of the "Cancer Stage of Capitalism" who writes

tzmofficial 08:30
08:32

"We might say that economics is to the corporate market

tzmofficial 08:32
08:34

what theology was to the medieval church.

tzmofficial 08:35
08:37

Just as ancient Latin operated in the medieval church

tzmofficial 08:37
08:40

to deify dogmas into ritualized sequences

tzmofficial 08:40
08:43

untouchable by the vulgar passage of time,

tzmofficial 08:44
08:47

so econometrics functions in today's economics.

tzmofficial 08:47
08:49

It conceals the value judgments it assumes

tzmofficial 08:49
08:52

in an atemporal algebraic apparatus

tzmofficial 08:52
08:55

that is severed from natural language, living referents,

tzmofficial 08:56
08:58

and the accountability to its effects."

tzmofficial 08:58
09:01

It's a remarkable book.

tzmofficial 09:01
09:03

This, however, is changing.

krusedianna 09:03
09:08

And it's changing quite rapidly, much quicker than I actually thought it would

krusedianna 09:08
09:11

given all of the above reasons why we don't tend to lock in

tzmofficial 09:12
09:15

and engage in questioning of the system.

tzmofficial 09:15
09:18

In researching this monetary system I have many a time carried with me

krusedianna 09:18
09:22

large and boring-looking books detailing the history of finance

tzmofficial 09:22
09:25

and the way it operates today

tzmofficial 09:25
09:29

which does mean wading through thousands of pages of literature.

tzmofficial 09:29
09:32

One evening in a bar, no less than 3 unrelated strangers

tzmofficial 09:32
09:34

asked me what my book was about.

tzmofficial 09:34
09:36

I've been approached on The Underground, that standard haven

krusedianna 09:37
09:40

of uncomfortable silence by strangers asking me

krusedianna 09:40
09:43

not only what is the book about, but even asking me upon hearing

krusedianna 09:43
09:46

my relatively brief 3-minute elevator talk summary of it

tzmofficial 09:46
09:49

what the answer might be to our problems raised.

tzmofficial 09:50
09:52

And more and more people are beginning to agree

tzmofficial 09:52
09:55

not only on the problem that they see

tzmofficial 09:55
09:57

when they are presented with the simple facts

tzmofficial 09:57
10:00

but also upon the solutions as well. People aren't stupid.

tzmofficial 10:00
10:04

They know something's up. And they think it might just be something other

tzmofficial 10:04
10:08

than having voted for the wrong politician in the last election.

krusedianna 10:10
10:12

All I wish to do today is to have that

tzmofficial 10:12
10:13

same London Underground conversation with you.

krusedianna 10:14
10:16

It's time to question the system that in recent years

tzmofficial 10:16
10:20

has become notable by its failure and its damage.

tzmofficial 10:20
10:23

First off, the assumption that monetary economics is too complex

krusedianna 10:23
10:26

for normal people like us to understand is completely erroneous

tzmofficial 10:26
10:29

nor is it a natural part of society anymore, although

krusedianna 10:29
10:33

as we'll see, it once was, and served fairly interesting functions.

tzmofficial 10:33
10:35

And once you understand the methods by which modern finance

tzmofficial 10:36
10:38

is operated worldwide, you will understand the dire need

tzmofficial 10:38
10:40

to question every aspect of this vast

tzmofficial 10:40
10:44

all encompassing system and its validity.

tzmofficial 10:44
10:46

So, in order to provide an understanding of economics

tzmofficial 10:46
10:48

as it presently affects us, it is necessary

tzmofficial 10:48
10:52

to give a brief history of the history of money.

tzmofficial 10:53
10:57

Contrary to popular belief, it is very new in the human race's history.

tzmofficial 10:57
11:00

Ostensibly, the rationale for money at all

tzmofficial 11:00
11:03

existed in ancient times to manage scarcity.

tzmofficial 11:03
11:06

In order to ensure that enough labour was contributed to a social system

tzmofficial 11:06
11:09

and that it was proportional to the natural resources

tzmofficial 11:09
11:13

that people then extracted out of that system that they were in.

krusedianna 11:13
11:16

Coined money appeared around 1500 BC, possibly earlier

tzmofficial 11:16
11:20

and many credit the Lydians with introducing gold and silver coined money.

tzmofficial 11:20
11:22

This coined money system is termed commodity money

tzmofficial 11:22
11:25

being formed or created out of a good or material

tzmofficial 11:25
11:28

that is perceived as valuable or has some tangible use.

tzmofficial 11:28
11:30

And while there are two materials we would commonly associate

krusedianna 11:30
11:35

with this, being gold and silver, in fact many materials or objects

tzmofficial 11:35
11:37

have been used as a base commodity value

krusedianna 11:37
11:40

such as copper, another familiar one, still used today:

tzmofficial 11:40
11:45

salt, pepper corns, which pretty much takes care of restaurants, doesn't it?

krusedianna 11:45
11:49

[Others are]: large stones, decorated belts, shells

krusedianna 11:49
11:52

(The Far East used shells quite a lot.)

krusedianna 11:52
11:55

alcohol, cigarettes, which makes me a millionaire

krusedianna 11:55
11:58

chocolate, and candy generally, and barley

tzmofficial 11:58
12:01

and my favorite one, weed.

tzmofficial 12:01
12:04

This one is particularly interesting. One can only surmise as to

tzmofficial 12:04
12:07

how much more peaceful and yet massively unproductive

krusedianna 12:07
12:09

and pizza-consuming the world would be

krusedianna 12:09
12:12

if there were a commodity currency of the globe made weed.

tzmofficial 12:12
12:15

Yet one might also suspect that a downside

tzmofficial 12:15
12:19

to the cannabis-based monetary system would be hyper-deflation.

tzmofficial 12:20
12:22

The next step of monetary evolution was to representative

tzmofficial 12:22
12:25

or receipt money, a sort of meta-money if you will.

tzmofficial 12:25
12:28

This representative money derived from promissory notes or receipts

tzmofficial 12:28
12:31

issued by goldsmiths, individuals who deposited their gold

tzmofficial 12:31
12:35

which had become the dominant commodity money

tzmofficial 12:35
12:38

for safekeeping in the goldsmith's safe when it became too much to carry

tzmofficial 12:38
12:41

or to ensure security of their stash.

tzmofficial 12:42
12:45

As trade between the populace picked up or whenever someone came into

krusedianna 12:45
12:48

a lot of wealth, carrying around large sacks of gold

tzmofficial 12:48
12:51

or any other precious metal became cumbersome and heavy.

tzmofficial 12:51
12:54

Depositing it in the goldsmith's safe is much safer.

tzmofficial 12:55
12:57

I wonder which one of those words came first.

krusedianna 12:57
12:59

Not only that, the goldsmith issued promissory notes

tzmofficial 12:59
13:03

to enable someone to easily pick up their gold when needed.

krusedianna 13:03
13:05

These promissory notes from the goldsmith's

krusedianna 13:05
13:08

were essentially receipts for the amount that had been deposited

krusedianna 13:08
13:12

and thus, were essentially still backed 100% by the known value

tzmofficial 13:12
13:15

an equal value to the face value of that receipt.

tzmofficial 13:15
13:17

This receipt here is actually English, comes from 1774

tzmofficial 13:18
13:21

although I must point out, it does also specify interest

tzmofficial 13:21
13:23

so that doesn't quite fit into the order I'm doing things

tzmofficial 13:23
13:26

but it is a fairly good example.

tzmofficial 13:26
13:30

People began directly trading these receipts in the market place

tzmofficial 13:30
13:33

instead of going to their goldsmith, removing the gold from the vault

tzmofficial 13:33
13:36

and then using that to buy goods.

krusedianna 13:36
13:41

Essentially, it's a swap of IOU's all backed by the goldsmith's stash

tzmofficial 13:41
13:43

for any good or service that's required.

tzmofficial 13:43
13:45

Around this time, the promissory notes were adorned

krusedianna 13:45
13:48

with the phrase you'll be aware of if you've ever looked at the money

tzmofficial 13:48
13:50

that we actually use today that "promise to pay

tzmofficial 13:50
13:53

the bearer on demand the sum of."

tzmofficial 13:53
13:56

Essentially the bearer of the note was able to lay claim to the gold in vault

krusedianna 13:56
13:59

due to the ownership of the promissory note in his or her possession

krusedianna 13:59
14:03

so they were naturally transferable very much like the original:

krusedianna 14:03
14:07

shells and belts and snickers bars and the other stuff that we used.

tzmofficial 14:08
14:10

The immediate effect of this was that very few people actually removed

tzmofficial 14:11
14:14

their gold from the vaults. This is absolutely key in the history of finance.

tzmofficial 14:14
14:18

Trade was abstracted to the level of paper representations.

tzmofficial 14:18
14:21

The goldsmith, already earning a proportion of the gold stored

tzmofficial 14:21
14:24

via vault rental costs to store the gold in the first place

tzmofficial 14:24
14:26

realized he now possessed a large amount of gold

tzmofficial 14:26
14:30

on a near permanent basis which was just sitting there.

tzmofficial 14:30
14:34

On average, just 10% of the gold was ever removed or redeemed

tzmofficial 14:34
14:36

by the people bearing any notes at any time

tzmofficial 14:36
14:39

meaning that the goldsmith could safely lend up to 90%

tzmofficial 14:39
14:42

of the excessive gold without running short

tzmofficial 14:43
14:46

should any of the rightful owners return and demand their actual gold.

tzmofficial 14:46
14:49

The goldsmith began lending out at interest

tzmofficial 14:49
14:52

doubling up his earnings essentially profiting off the wealth of others

tzmofficial 14:52
14:56

who were already paying rental fees for the alleged safekeeping of this gold

tzmofficial 14:56
14:59

despite the fact that the gold in the safe already represented by

tzmofficial 14:59
15:04

and tied to receipt money was not available for circulation.

tzmofficial 15:04
15:07

G. Edward Griffin, who wrote the seminal "Creature from Jekyll Island"

tzmofficial 15:07
15:11

explains this paradoxical scenario through a game of poker:

tzmofficial 15:12
15:15

"Let's pretend that we all converge on Charlie's house for a poker game

tzmofficial 15:16
15:20

and at upon arrival, each of us hands Charlie a $20 bill.

krusedianna 15:20
15:23

Charlie, acting as a banker, issues each of us 20 poker chips

tzmofficial 15:23
15:25

and stuffs the money in an envelope.

tzmofficial 15:26
15:28

The agreement is that I may leave the game at any time

tzmofficial 15:28
15:31

and exchange each of the chips I possess for $1.

tzmofficial 15:31
15:36

Now comes Larry, Charlie's brother, but Larry isn't here to play poker.

tzmofficial 15:36
15:38

Larry is in a tight spot and needs to borrow some money.

tzmofficial 15:38
15:42

Since 8 of us are playing poker there's a total of $160 in Charlie's envelope

tzmofficial 15:42
15:45

and that turns out to be just exactly what Larry needs.

tzmofficial 15:46
15:48

You can well imagine what would happen if Charlie decided

tzmofficial 15:48
15:52

to lend out his idle money. It is not available for lending.

tzmofficial 15:52
15:57

Neither Charlie nor any of us other players has a right to loan that money out

tzmofficial 15:57
16:00

because it is still being held in escrow so to speak

tzmofficial 16:00
16:04

pending completion of the contract between Charlie and his guests.

tzmofficial 16:04
16:07

Those dollars really shouldn't have even been considered money at this point

tzmofficial 16:08
16:11

because the value that they represent has been assigned to the poker chips.

tzmofficial 16:11
16:14

If any of us has enough compassion for Larry's plight to want

tzmofficial 16:15
16:18

to loan him the money it must come from other money in our possession

tzmofficial 16:19
16:22

or we turn in our chips and repossess the money

krusedianna 16:22
16:25

in the envelope in order to give Larry that.

tzmofficial 16:25
16:28

We could not spend or loan that money in the envelope

tzmofficial 16:28
16:31

and still consider the chips to be worth anything."

tzmofficial 16:31
16:33

That is the absolute key point to this story.

tzmofficial 16:34
16:37

Griffin succinctly sums up the issue: "Chips or any other representation

tzmofficial 16:37
16:41

are valuable only as abstractions of another value held in escrow

tzmofficial 16:41
16:45

until exchanged. The use or re-use of that valued object

tzmofficial 16:45
16:49

undermines the value relationship as one does

tzmofficial 16:49
16:51

for example, a one sided see-saw.

tzmofficial 16:52
16:55

The tendency towards undermining this value representation

tzmofficial 16:55
16:58

by lending out more than was in reserve

tzmofficial 16:58
17:00

led to an unpleasant occurrence for the goldsmith.

tzmofficial 17:00
17:04

For when the goldsmith became fabulously and ostentatiously wealthy

tzmofficial 17:04
17:06

because he was now beginning to earn off the interest

tzmofficial 17:07
17:09

on someone else's money, those who had placed their gold in reserve

tzmofficial 17:10
17:12

were lead to believe that perhaps he'd been lending out

tzmofficial 17:12
17:15

and spending their gold instead of storing it.

tzmofficial 17:16
17:18

Panicking, large numbers of account holders got together

tzmofficial 17:18
17:20

and demanded their gold all at once.

tzmofficial 17:21
17:23

Obviously, there was not enough to go around.

tzmofficial 17:23
17:26

One of two things could happen. The goldsmith could go out of business

tzmofficial 17:26
17:29

and I would imagine have his cranium forcibly removed.

tzmofficial 17:29
17:32

Or, he could cut them into the deal to prevent going broke

krusedianna 17:32
17:36

and retain their business and, of course, their gold.

tzmofficial 17:36
17:39

This was a major shift in the practices of what came to be modern banking.

tzmofficial 17:40
17:43

Essentially, it was the shift from vault rental

tzmofficial 17:43
17:47

to what we understand to be interest today as this monthly incremental

tzmofficial 17:47
17:50

earning mechanism became applied to both the vault owner

tzmofficial 17:50
17:53

as well as the depositor or the account holder.

tzmofficial 17:53
17:56

Where did the extra gold come from to pay that?

krusedianna 17:56
18:00

Of course, it came from the people borrowing from the goldsmith.

tzmofficial 18:00
18:03

This then, would become the basis for modern banking.

krusedianna 18:03
18:05

Lending out more than was on hand and this has lead to

tzmofficial 18:05
18:09

a third type of money. So, we've gone from commodity money

tzmofficial 18:09
18:12

through to receipt money and now we're at fractional money.

tzmofficial 18:12
18:15

Essentially, a note backed by only a fraction of its value in reserves.

tzmofficial 18:16
18:18

And the process by which it has lent to the general public is called

krusedianna 18:18
18:21

'fractional reserve banking'. Here's how it works

tzmofficial 18:21
18:24

from the creation of bank reserves within the commercial bank

tzmofficial 18:24
18:27

through to the creation of loans to the general public.

krusedianna 18:28
18:30

Here's what we're going to walk through

tzmofficial 18:31
18:33

and before I actually start I should probably quote Alan Greenspan

tzmofficial 18:33
18:35

the former chairman of the Federal Reserve, who once said

tzmofficial 18:35
18:39

"I guess I should warn you if I turn out to be particularly clear

tzmofficial 18:39
18:42

you've probably misunderstood what I have said."

krusedianna 18:42
18:45

And he's right. Money, contrary to what I thought

tzmofficial 18:45
18:47

is not produced by the government.

krusedianna 18:47
18:50

Here's how it works in the UK. The Central Bank of the United Kingdom

krusedianna 18:50
18:52

is the Bank of England, a privately owned company

krusedianna 18:52
18:55

with exclusive rights to the money supply for the entire UK.

tzmofficial 18:55
18:58

Of course, you can write to the Bank of England and ask them

krusedianna 18:58
19:00

if they are privately owned. Of course, they'll tell they are not.

tzmofficial 19:00
19:04

But even cursory knowledge of history would completely inform you otherwise.

tzmofficial 19:04
19:06

It was chartered in 1694

tzmofficial 19:06
19:09

owned by a group of individuals who were never revealed.

tzmofficial 19:09
19:11

It was then nationalized in 1946

tzmofficial 19:11
19:14

in that the government bought all the stocks in it.

tzmofficial 19:14
19:16

Yet, the government didn't have the money to buy it so

tzmofficial 19:16
19:20

brilliantly, the Bank of England was bought through the use of stocks

krusedianna 19:20
19:23

that bore the burden of interest. In other words, the government

krusedianna 19:23
19:27

borrowed the money to buy the bank from the bank.

tzmofficial 19:27
19:31

And it only gets weirder. Here's how money is actually created.

krusedianna 19:31
19:35

Here we have... we'll map the creation of £10 billion.

tzmofficial 19:35
19:39

So, the Bank of England creates 10...sorry, 10 million.

tzmofficial 19:39
19:42

The Bank of England creates 10 million out of thin air

krusedianna 19:42
19:45

and credits its own account. Using this money

tzmofficial 19:45
19:47

it then buys government bonds or corporate bonds

tzmofficial 19:47
19:51

from commercial banks or any lending institution.

tzmofficial 19:51
19:54

The sale results in the money being deposited in the reserve accounts

krusedianna 19:54
19:57

of financial institutions across the UK and "Hey, Presto!"

krusedianna 19:57
20:01

Money has been created and distributed to lending institutions.

krusedianna 20:01
20:03

Let's say that one of these commercial banks

krusedianna 20:03
20:07

has received 10 million in deposits from the Bank of England.

krusedianna 20:07
20:10

On the basis of this, they lend a couple 10 grand to buy a house

krusedianna 20:11
20:14

[which is] wishful thinking perhaps, but nonetheless.

krusedianna 20:14
20:17

Now it would make sense to assume that the 10 grand lent to the couple

krusedianna 20:17
20:20

came out of the bank's reserves which already invented money

tzmofficial 20:20
20:24

leaving 9 million, 9 hundred and 90 thousand pounds.

krusedianna 20:24
20:27

Yet, this is not the case. For

tzmofficial 20:27
20:29

as Modern Money Mechanics puts it

tzmofficial 20:29
20:31

"Of course, the banks do not lend their depositors' money.

tzmofficial 20:32
20:35

If they did, no new money would be created."

tzmofficial 20:35
20:38

What is Modern Money Mechanics? Is it some communist propaganda?

krusedianna 20:38
20:41

Is it some fringe publication based on Internet research?

tzmofficial 20:42
20:45

No, it was published by the Federal Reserve Bank of Chicago.

krusedianna 20:46
20:49

Instead, the loan is invented on the spot from nowhere

krusedianna 20:49
20:53

based on the wonders of the fractional reserve laws which demand

tzmofficial 20:53
20:56

that, just like the goldsmith somewhere in the region of 10%

krusedianna 20:57
20:59

of that amount needs to be backed by the bank's reserves

krusedianna 20:59
21:02

which in this case, of course it is, because 10 grand is easily covered

krusedianna 21:02
21:05

by that 10 million in reserves.

krusedianna 21:05
21:09

So the couple who have borrowed the 10 grand now deposit it in a rival bank.

krusedianna 21:09
21:12

That bank, however, can't behave exactly as the first bank

krusedianna 21:12
21:14

which simply lent out 100 grand

krusedianna 21:15
21:18

based on 10 grand as the 10% deposit rate.

krusedianna 21:18
21:22

What Bank 2 has to do is divide the 10 grand by the reserve requirement itself.

krusedianna 21:22
21:24

So 1,000 becomes the bank's reserve

krusedianna 21:25
21:28

and 9,000 is then lent out as new loans.

krusedianna 21:28
21:31

Does this money come out of the existing 10 grand?

tzmofficial 21:31
21:34

No, once again it's actually created out of thin air.

krusedianna 21:34
21:37

That 9,000 can then be borrowed and deposited at yet another bank

krusedianna 21:37
21:40

which can now lend out 8,100 and so on.

tzmofficial 21:40
21:43

Every bank in the world does this. Every transaction

krusedianna 21:43
21:47

produces more money to the tune of 90% of its own numerical value

krusedianna 21:47
21:50

meaning that from 10-grand loans you could actually produce

krusedianna 21:50
21:53

100 grand in completely new money.

krusedianna 21:54
21:56

And if you're already way ahead of me you might be wondering

tzmofficial 21:56
21:58

where the money comes from to pay for the interest

tzmofficial 21:58
22:00

for all loans come at interest.

tzmofficial 22:00
22:04

Every loan in the process of money creation is at interest

tzmofficial 22:04
22:06

and the commercial banks will eventually have to pay

krusedianna 22:06
22:09

the Central Bank back at interest as well.

tzmofficial 22:09
22:11

Given that you have to pay back more than you borrowed

tzmofficial 22:11
22:13

someone will end up with the short straw

tzmofficial 22:14
22:17

and will default on payments, mortgages and so on.

krusedianna 22:17
22:21

This is where the tent cities are coming from in the US and even in the UK now.

tzmofficial 22:21
22:24

So who creates the money to repay the interest? Yes, it's the banks

tzmofficial 22:24
22:28

in the form of new loans. Shout, when you see the one that you have.

tzmofficial 22:28
22:30

Even if you are repaying a loan to the bank

tzmofficial 22:30
22:33

with the money you are earning from a job, where did that money come from?

tzmofficial 22:34
22:36

It was also lent, at interest, to your employer

krusedianna 22:36
22:39

so your employer could pay you, or let's say you are selling

krusedianna 22:39
22:43

something you own that someone you have sold to

krusedianna 22:43
22:46

has borrowed at interest

tzmofficial 22:46
22:49

to pay you for the good or services you provide as well.

krusedianna 22:49
22:53

Every pound, dollar, euro, is owed by somebody to somebody else

krusedianna 22:53
22:56

and the whole lot is owed ultimately to the banks

krusedianna 22:56
23:00

and they are always owed more than [what] was previously created.

tzmofficial 23:00
23:02

Ladies and gentlemen, this is a pyramid scheme.

tzmofficial 23:02
23:05

Quite simply, it is a massive global ponzi scheme.

tzmofficial 23:05
23:09

It is a game of musical chairs where many people have to lose

tzmofficial 23:09
23:12

in order for the flawed logic of the system to be maintained.

tzmofficial 23:12
23:15

Wealth is transferred upwards from those with less to those with more

tzmofficial 23:16
23:18

by magnifying the level of debt at every new level of the pyramid.

krusedianna 23:19
23:21

And it's actually reinforced on another level

tzmofficial 23:21
23:23

by the application of interest between accounts.

krusedianna 23:23
23:26

Here's how, and you'll be familiar with this one. It's not new.

tzmofficial 23:26
23:28

An account with a million pounds in it will accrue interest.

krusedianna 23:28
23:32

At 5% interest, it will produce 50 grand in one year

tzmofficial 23:32
23:34

not from contributions to society

krusedianna 23:34
23:37

that you earn or that earn you credits

krusedianna 23:37
23:40

but from simply having money to begin with.

tzmofficial 23:40
23:42

Similarly, a poor person's debt to a bank

tzmofficial 23:42
23:47

via an overdraft facility or the need to survive on loans, accrues interest.

tzmofficial 23:47
23:50

This interest theoretically is what is used to pay the interest

tzmofficial 23:50
23:53

to the account of the person possessing a million.

tzmofficial 23:53
23:56

In other words, the transference of wealth from the poor to the rich

tzmofficial 23:56
23:59

is driven by the inherent inequality of the system

tzmofficial 23:59
24:02

which is produced, in the first place

krusedianna 24:02
24:04

with only the very rich, the owners of the system, the commercial

tzmofficial 24:04
24:07

and ultimately central banks like the Bank of England

krusedianna 24:07
24:09

and the Federal Reserve of the United States

krusedianna 24:09
24:14

which is another private institution. These are the only true winners.

tzmofficial 24:14
24:17

"The modern banking system manufactures money out of nothing.

krusedianna 24:17
24:21

The process is perhaps the most astounding slight of hand

krusedianna 24:21
24:24

that has ever been invented." Those aren't my words.

tzmofficial 24:24
24:28

They're the words of Lord Stamp, Bank of England Director in 1937.

krusedianna 24:28
24:31

This is thoroughly recognized by the people who run this system.

krusedianna 24:31
24:34

It is not some secret. It is admitted openly.

krusedianna 24:34
24:38

Ask a banking friend. They'll tell you. So what is wrong with this system

tzmofficial 24:38
24:42

other than that it is legalized fraud by a private closed-loop banking cartel

krusedianna 24:42
24:46

based on "cloud-cuckoo-land" logic, apart from that?

krusedianna 24:46
24:48

Far more serious than a monetary system which generates

tzmofficial 24:49
24:52

encourages and necessitates debt servitude, poverty and ultimately war

tzmofficial 24:52
24:56

to say nothing of the fact that wars are funded on both sides

krusedianna 24:56
25:00

by exactly the same people which are essentially the banking cartel

krusedianna 25:01
25:04

far worse than this are the side-effects of a monetary system

krusedianna 25:04
25:07

when it comes to the fundamentally most important aspect of global societies

tzmofficial 25:07
25:11

and that is the access to and management of the world's natural resources

tzmofficial 25:11
25:14

without which no society would ever flourish

krusedianna 25:14
25:16

or even begin to develop.

krusedianna 25:16
25:18

Part 3

krusedianna 25:18
25:22

This section looks at how the use of a profit based system of exchange

tzmofficial 25:23
25:27

actually affects society in other ways than just purely debt.

krusedianna 25:28
25:30

We've already denoted how money of any kind

tzmofficial 25:30
25:32

has historically been employed by a society

tzmofficial 25:33
25:35

to manage scarcity of resources.

tzmofficial 25:35
25:38

This is, in fact, the only functionally relevant attribute

tzmofficial 25:38
25:42

of a monetary system at all, for it was originally conceived to

tzmofficial 25:42
25:45

ensure fair and sustainable balance between what was put in

tzmofficial 25:45
25:49

and what comes out of a society and what one can get out of it

krusedianna 25:49
25:53

to benefit oneself amid the sparse conditions that we first had

tzmofficial 25:53
25:57

when we were hunter-gatherers in the early part of our Neolithic revolution.

krusedianna 25:57
26:01

For having a lot of money itself, doesn't actually enhance your life.

tzmofficial 26:01
26:05

It doesn't feed you, food does. Money does not make your car run.

tzmofficial 26:05
26:08

You may garner a little heat from it if you set it alight

tzmofficial 26:09
26:11

but the only thing benefiting you there is the energy from a fire

krusedianna 26:12
26:14

you would get the same from kindling your newspaper.

tzmofficial 26:14
26:17

Personally, I'd recommend an unread copy of The Daily Mail

tzmofficial 26:17
26:22

as an excellent fuel-base for a nice big bonfire. But that is just me.

krusedianna 26:23
26:26

Money does nothing. It is the access to resources

tzmofficial 26:26
26:30

be they food, water, housing, technological conveniences

tzmofficial 26:30
26:33

transport or any other life-enhancing object

tzmofficial 26:33
26:35

or service that makes for a better life.

krusedianna 26:35
26:38

Millionaires aren't healthier, safer or more well-fed

tzmofficial 26:38
26:41

because of their money. It is their access to abundance

krusedianna 26:41
26:43

that makes their life so plush to begin with.

tzmofficial 26:44
26:48

Despite this truth, profit remains the primary focus and goal

tzmofficial 26:48
26:51

of a monetary system ahead of social concern and human well-being.

krusedianna 26:51
26:55

And you can never have enough profit. Ask any CEO

krusedianna 26:55
26:58

for to gain a greater advantage over another in this system

tzmofficial 26:58
27:02

is to achieve a measure of security to be rewarded by more money

tzmofficial 27:02
27:06

and in turn better access to what resources are available.

tzmofficial 27:06
27:08

And since none of us can live without resources

tzmofficial 27:08
27:11

our very survival amid competition-riddled marketplaces

tzmofficial 27:11
27:14

now global in scale, is down to our ability

tzmofficial 27:14
27:18

to compete as unfairly as possible.

tzmofficial 27:18
27:22

"If you're not growing, you're dying." So goes the old adage without a hint

tzmofficial 27:22
27:24

of irony that precisely the opposite is true

tzmofficial 27:25
27:29

if you're speaking about the survival of anything within a finite environment.

tzmofficial 27:29
27:31

The way the we have now structured our planet

tzmofficial 27:32
27:36

is on the basis of finite energy resources and inefficient use of space.

tzmofficial 27:36
27:41

I come back to John McMurtry whose analysis of our present global paradigm

tzmofficial 27:41
27:44

compares the situation very much to cancer.

krusedianna 27:44
27:47

It grows for the sake of growth ignoring limitations and thus

tzmofficial 27:47
27:50

its own future sustainability.

tzmofficial 27:50
27:53

Not only is it mathematically impossible

tzmofficial 27:53
27:58

it is ecologically destructive to chase profit and growth.

tzmofficial 27:58
28:02

Follow this chain of events. We harvest food from an impoverished country

tzmofficial 28:02
28:04

because it is cheaper to do so often to the detriment

tzmofficial 28:04
28:07

of that society in the form of poorly paid jobs

tzmofficial 28:07
28:10

and significant loss of the resources to foreign economies.

tzmofficial 28:11
28:13

It is then transported to a facility which employs

tzmofficial 28:13
28:15

slave labor because it is cheaper.

tzmofficial 28:15
28:19

Then derivative products are then very often transported yet again

tzmofficial 28:19
28:22

produced and processed in yet another factory

tzmofficial 28:22
28:25

then transported across the country to a distribution center

krusedianna 28:26
28:30

and then ultimately to the world. The reason for this?

tzmofficial 28:30
28:32

People in countries

krusedianna 28:32
28:34

where those fruits or items aren't naturally occurring

tzmofficial 28:35
28:38

are more likely to pay for them in greater numbers.

tzmofficial 28:38
28:40

And also because this inefficient process

tzmofficial 28:41
28:44

is cheaper than fluid, efficient, streamlined production

krusedianna 28:44
28:47

a profit-motive orientated system demands inefficiencies

tzmofficial 28:47
28:50

for those very inefficiencies are the cost savings to be made

tzmofficial 28:50
28:54

at the expense of the environment and the well-being of humanity.

tzmofficial 28:54
28:57

You can rail against polluting companies and carbon footprints

krusedianna 28:57
29:00

all you want for destroying the planet. The bottom line is

tzmofficial 29:00
29:04

the system any institution operates in requires this behavior.

tzmofficial 29:04
29:07

It is utterly expected when you really look at the logic

tzmofficial 29:07
29:12

of the market system. As of 1999, 99% of materials used

krusedianna 29:12
29:17

in the production cycle in the USA end up as waste within 6 weeks.

krusedianna 29:17
29:21

Every ton of garbage requires 5 tons of materials to produce it

krusedianna 29:21
29:24

and those 5 tons took 25 tons of materials harvested

krusedianna 29:25
29:29

and mined from nature to produce it. It is a hugely wasteful system.

krusedianna 29:29
29:31

Almost nothing that we produce or process

tzmofficial 29:31
29:35

actually ends up being used at all.

tzmofficial 29:35
29:39

I'm trying to convey to you just how inefficient this is.

tzmofficial 29:40
29:42

Inefficiency is a good thing, a necessary thing

tzmofficial 29:42
29:45

if you are operating in a monetary system.

tzmofficial 29:45
29:47

On a related note, where do you think this comes from?

tzmofficial 29:48
29:51

Other than inefficient systems applications in industrial processes

tzmofficial 29:51
29:55

the vast consumer waste produced on a global scale

tzmofficial 29:55
29:57

is a huge danger to our survival.

tzmofficial 29:57
30:01

Not only does it pollute our world with plastic

krusedianna 30:01
30:05

chemicals and unsightliness, it is a visual demonstration

tzmofficial 30:05
30:08

that the resources we are burning through

tzmofficial 30:08
30:12

for the sake of profit are as vast as they are.

krusedianna 30:12
30:14

The necessity of infinite growth-based consumption

krusedianna 30:14
30:18

and profit-driven production of goods means three inescapable ramifications

krusedianna 30:18
30:22

to the societies which operate under a monetary system:

tzmofficial 30:22
30:25

We must keep spending more on products usually on a yearly basis

tzmofficial 30:26
30:28

to satisfy cyclical profit cycles for companies

tzmofficial 30:29
30:32

that in turn, pay wages for labor.

tzmofficial 30:32
30:34

Those products must be made in the cheapest way possible

tzmofficial 30:35
30:37

from the cheapest possible materials in relation

tzmofficial 30:37
30:39

to their marketed cost to the consumer.

tzmofficial 30:39
30:42

And of course, products produced within a monetary system

tzmofficial 30:42
30:45

must wear out, break down, require servicing

tzmofficial 30:45
30:48

or become technologically or operationally obsolete

tzmofficial 30:48
30:51

within the time frame the company can economically endure

tzmofficial 30:51
30:54

before repeat business is required from the consumers.

tzmofficial 30:54
30:58

In 2004, it was estimated that 15 million mobiles are replaced annually

tzmofficial 30:59
31:01

with owners updating them on average every 18 months.

tzmofficial 31:02
31:04

"Updating" is a nice word there. That means throwing one

tzmofficial 31:04
31:06

in the garbage and buying another one.

tzmofficial 31:06
31:08

In the time immediately following Christmas it was estimated

tzmofficial 31:08
31:12

that 750,000 phones were dumped by consumers.

tzmofficial 31:12
31:16

Can you imagine what that figure might be today, 6 years later?

krusedianna 31:16
31:18

This type of market behaviour is called "planned obsolescence"

tzmofficial 31:18
31:21

and it's been the primary mover of this infinite-growth paradigm

tzmofficial 31:21
31:23

since the end of the Second World War.

krusedianna 31:23
31:27

Companies like Apple need you to spend more, over and over again

tzmofficial 31:27
31:30

on similar or derivative products every year.

krusedianna 31:30
31:35

Hence we have multiple iPhones, iPods, iPads, iBoards, and iMats.

krusedianna 31:36
31:39

This, in turn, means that all goods produced in a monetary system

tzmofficial 31:39
31:41

can only last as long as that company can endure it

tzmofficial 31:41
31:44

before a further or repeat sale needs to be made.

tzmofficial 31:44
31:48

The effect of this is waste, inefficiency, incompatibility

tzmofficial 31:48
31:51

and a general disrespect and lackadaisical attitude

tzmofficial 31:51
31:55

to what we've come to perceive as "throwaway consumerism."

tzmofficial 31:55
31:58

This value program orientates members of society

tzmofficial 31:58
32:00

to disregard the importance of resources.

tzmofficial 32:00
32:03

We train ourselves not to see the vast implications

tzmofficial 32:03
32:06

while somehow entertaining the notion that we are more "free"

tzmofficial 32:06
32:09

by consuming more and more.

tzmofficial 32:09
32:11

It translates into a form of aspirational buying

tzmofficial 32:11
32:15

or "keeping up with the Joneses" as fashion and style

tzmofficial 32:15
32:19

creep into the perceived values of the products in question.

krusedianna 32:19
32:22

Adverts like the one with a tagline that said

tzmofficial 32:23
32:25

"Are you ashamed of your old mobile phone?"

tzmofficial 32:25
32:28

You remember that one? As though shame has any relevance

tzmofficial 32:28
32:31

to the benefits of mobile communications technology.

tzmofficial 32:31
32:34

It struck me as vastly incredible when people think about it that way.

krusedianna 32:34
32:38

In fact on a related note, I had the misfortune of being

krusedianna 32:38
32:42

in the Apple Store on Regent Street at the 27th, I think it was

krusedianna 32:42
32:44

when they were giving out the new iPads. I was just there to buy

krusedianna 32:45
32:47

yet another lead that I need because things aren't compatible.

tzmofficial 32:47
32:50

And they were clapping, clapping and cheering

krusedianna 32:50
32:52

each new iPad customers as they walked in the door.

tzmofficial 32:52
32:55

It was just screaming like they were at a football match.

tzmofficial 32:55
32:58

It's absolutely remarkable that we put so much value into it.

krusedianna 32:58
33:00

I often think to myself "Wouldn't it be wonderful if we felt

tzmofficial 33:00
33:03

that thrilled about advances in technology?"

tzmofficial 33:03
33:05

People in the streets would be clapping and yelling "Yeah, did you hear?

tzmofficial 33:05
33:09

We've got 20% better water efficiency!"

tzmofficial 33:09
33:12

And while we are at this point it is literally impossible to offer

tzmofficial 33:12
33:14

"the best product at the lowest possible price".

tzmofficial 33:14
33:17

It's another advertising slogan that ignores the actual mechanisms

tzmofficial 33:18
33:20

that govern production and sale of any product

tzmofficial 33:20
33:22

in a competitive marketplace.

tzmofficial 33:22
33:26

Were SonyEricsson to offer a truly robust, solid upgrade-flexible phone

tzmofficial 33:26
33:30

that was long-lasting, feature-accommodating, environmentally safe

tzmofficial 33:30
33:32

and recyclable as possible and with a lifespan

tzmofficial 33:32
33:35

of as many years as technology allows at that point,

tzmofficial 33:35
33:39

it would be a necessary consequence of competition

tzmofficial 33:39
33:42

and market-share hunting that another company will come along

tzmofficial 33:42
33:45

and make a slightly inferior phone at a slightly lower price

krusedianna 33:45
33:47

in hopes to catch that market share.

tzmofficial 33:47
33:49

This spiral then continues and branches out

tzmofficial 33:49
33:51

into multiple similarly produced items

tzmofficial 33:51
33:55

with decreasing lifespans and sub-optimal technologies

tzmofficial 33:55
33:57

for the sake of market-share to begin with.

tzmofficial 33:57
34:00

This competition that we are trained to prize so highly

tzmofficial 34:00
34:02

also produces another kind of waste.

krusedianna 34:02
34:06

Thousands of different versions of the same thing will spring up

tzmofficial 34:06
34:08

duplicating the amount of resources we burn and use up

krusedianna 34:08
34:11

on every imaginable product that can be sold.

tzmofficial 34:11
34:14

It is by definition the most unsustainable method of production

tzmofficial 34:14
34:17

that there is. Even worse we produce tons of products

krusedianna 34:17
34:21

that aren't even necessary simply so earnings can be made

tzmofficial 34:21
34:23

because we now rely on money to begin with.

krusedianna 34:23
34:26

Go into a Pound Shop, or even Tesco's and count the amount of items

tzmofficial 34:26
34:31

that are absolutely necessary to the operational function of your life.

tzmofficial 34:31
34:34

It's less than 10% of the items if you ignore food.

krusedianna 34:34
34:38

We're given food anyway [and] vast, vast aisles of bleach.

krusedianna 34:38
34:40

It's like, "Well, if you need bleach, just have bleach".

krusedianna 34:40
34:44

You don't need to have all this duplication.

krusedianna 34:44
34:47

And while we're on buying and selling, the next ramification

krusedianna 34:47
34:50

of a monetary system, of course, includes the future of employment.

krusedianna 34:51
34:53

Technological Unemployment, which is unemployment caused by

tzmofficial 34:53
34:57

the use of machines as vehicles of labor

tzmofficial 34:57
35:01

has continually and systemically forced relevant numbers of people

krusedianna 35:01
35:04

out of every new emerging sector for the past 100 years.

tzmofficial 35:04
35:09

In the words of Nobel Laureate Economist Wassily Leontief

tzmofficial 35:09
35:13

"The role of humans as the most important factor of production

tzmofficial 35:13
35:17

is bound to diminish in the same way that the role of horses

tzmofficial 35:17
35:19

in agricultural production was first diminished

tzmofficial 35:19
35:23

and then eliminated by the introduction of tractors."

tzmofficial 35:24
35:27

Our current economic employment market

krusedianna 35:27
35:29

is basically broken down into three sectors:

krusedianna 35:29
35:32

agricultural, mining and fishing, things like that;

krusedianna 35:32
35:34

manufacturing which is tangible goods;

krusedianna 35:35
35:37

and service which is intangible goods.

tzmofficial 35:37
35:39

As a near universal social progression

tzmofficial 35:39
35:43

all societies tend to follow the developmental path

tzmofficial 35:43
35:46

which takes them from a reliance on agriculture and extraction

tzmofficial 35:46
35:48

towards the development of manufacturing

krusedianna 35:48
35:51

such as automobiles, textiles, ship-building, steel

krusedianna 35:51
35:55

and finally towards the more service-based structure.

krusedianna 35:55
35:59

Naturally, the only reason some countries are farther behind

krusedianna 35:59
36:02

the process than others has to do with the affordability of the technology

tzmofficial 36:02
36:06

required to move to the next level irrespective of its social system

tzmofficial 36:06
36:10

or political disposition. It's simply a scientific progression.

krusedianna 36:10
36:13

Let's now consider this phenomenon using the United States as a proxy.

tzmofficial 36:13
36:18

In 1860, 60% of Americans worked in the agricultural sector.

tzmofficial 36:18
36:20

However today due to the advancement of machinery and automation

tzmofficial 36:21
36:24

less than 1% do. Fortunately, those technological developments

tzmofficial 36:24
36:27

also gave rise to an emerging industrial revolution

krusedianna 36:27
36:31

and by 1950, 33% of Americans were employed

krusedianna 36:31
36:34

in the factory-based manufacturing sector.

tzmofficial 36:34
36:37

As of now, due to continual advancements in machine automation

tzmofficial 36:37
36:39

it is less than 8%.

krusedianna 36:40
36:43

Considering that only about 9% of Americans work in the agricultural

tzmofficial 36:43
36:46

and manufacturing sectors now where did everyone else go?

krusedianna 36:46
36:49

If you went to Z-Day or if you've had a look at a fascinating book

krusedianna 36:49
36:52

by Jeremy Rifkin called "The End of Work"

krusedianna 36:52
36:54

which is where a lot of these numbers come from

krusedianna 36:54
36:57

they went to the service sector.

krusedianna 36:57
36:59

The only thing that has served the US labor market

krusedianna 36:59
37:02

and in fact all labor markets is exactly the same over here.

krusedianna 37:02
37:04

After the technological renovation of the agricultural

tzmofficial 37:04
37:08

and manufacturing sectors is the flight to the service industry.

krusedianna 37:08
37:11

From 1950-2002 in the service sector

tzmofficial 37:11
37:15

the employment went from 59% to 82%.

krusedianna 37:15
37:18

The service sector is the dominant employer of much of the world

krusedianna 37:18
37:22

today with all other industrial countries.

tzmofficial 37:24
37:27

Of course, this begs the question "Is this sector susceptible

tzmofficial 37:27
37:30

to the wrath of technological unemployment as well?"

tzmofficial 37:30
37:33

Well, of course, it's not insusceptible.

tzmofficial 37:33
37:36

With the advent of increasing versatile computer technologies,

tzmofficial 37:36
37:39

which I'm sure you're all better versed in than I am,

tzmofficial 37:39
37:41

we are seeing job displacement once again this time

tzmofficial 37:41
37:44

in all service industries. The replacement of tellers

krusedianna 37:44
37:47

and cashiers with kiosks, the use of automated voice systems

krusedianna 37:48
37:51

for phone calls, even the Internet has redefined retail

tzmofficial 37:51
37:54

not to mention full kiosk systems in physical market places

krusedianna 37:54
37:57

advance food prep by machines, even research by automation

tzmofficial 37:57
38:01

is being done from statistical modeling to lab experiments.

tzmofficial 38:01
38:03

As economist Steven Roach has warned "The service sector

krusedianna 38:04
38:09

has lost its role as America's unbridled engine of job creation."

tzmofficial 38:09
38:11

As a unique example in Germany

tzmofficial 38:11
38:13

the first fully automated restaurant is in operation.

tzmofficial 38:14
38:16

In fact it's old news now. I think this came about...

tzmofficial 38:16
38:19

I think it was the end of 2008? Certainly by 2009

tzmofficial 38:19
38:22

it had been going very well. It uses kiosks for order and payment

tzmofficial 38:23
38:25

and the food is then served by fully mechanized systems.

tzmofficial 38:26
38:31

There are zero wait staff. There is no reason this, and more

tzmofficial 38:31
38:34

could not be done with every single eating establishment in the world.

tzmofficial 38:34
38:38

In fact, if one were to think creatively about the application

tzmofficial 38:38
38:42

of technology as it currently exists to the entire service sector

tzmofficial 38:43
38:46

you could probably wipe out most of the jobs overnight.

tzmofficial 38:47
38:50

The only reason it hasn't been done is because the focus of society

tzmofficial 38:50
38:52

is backwards when it comes to social progress.

krusedianna 38:52
38:54

To illustrate this more, lets stop thinking

tzmofficial 38:54
38:56

about technology in terms of unemployment for a moment

tzmofficial 38:57
38:59

and consider it from the angle of productivity.

krusedianna 38:59
39:03

The most incredible relationship of all

tzmofficial 39:03
39:05

is that the more technological unemployment increases

tzmofficial 39:06
39:08

the more productive things become.

tzmofficial 39:08
39:12

In the G-7 industrialized countries

tzmofficial 39:12
39:15

employment in manufacturing has been dropping

tzmofficial 39:15
39:18

but manufacturing output has been rising. Here's the chart.

krusedianna 39:18
39:22

You can see. It's practically an inverse correlation.

tzmofficial 39:23
39:25

Here's a wonderful quote from Bruce Bartlett.

krusedianna 39:26
39:29

He said "The truth is that US manufacturing is doing quite well

tzmofficial 39:29
39:32

in every aspect except in the number of people it employs.

krusedianna 39:33
39:35

Furthermore, [few] economists would judge the health or sickness

krusedianna 39:35
39:37

of any industry based solely on employment.

krusedianna 39:37
39:40

.

krusedianna 39:40
39:43

By that standard agriculture has been the sickest industry of all

tzmofficial 39:43
39:46

for decades because employment has declined

tzmofficial 39:46
39:50

although farm productivity rose dramatically in the past century.

tzmofficial 39:50
39:53

Industrial health is better measured by output

tzmofficial 39:53
39:56

productivity, profitability and wages."

krusedianna 39:56
40:00

Unfortunately, this person is forgetting one universal thing:

krusedianna 40:00
40:04

If human laborers are displaced, they cannot obtain purchasing power.

krusedianna 40:04
40:07

If they cannot obtain purchasing power, they cannot fuel the economy

krusedianna 40:07
40:09

by consumption, so on that level it doesn't matter

krusedianna 40:10
40:13

how productive we are. No one will be able to buy anything.

krusedianna 40:13
40:18

This phenomenon is not new. It's called "The Contradiction of Capitalism".

krusedianna 40:19
40:21

I hesitate to use this phrase because

krusedianna 40:21
40:24

I'm talking about the monetary system generally, not just "capitalism".

tzmofficial 40:25
40:28

Of course, that can mean anything you want it to, and it often does.

tzmofficial 40:28
40:33

For not only is the obsolescence of human labor the obsolescence

krusedianna 40:33
40:37

of the human consumer, the high level of output

tzmofficial 40:37
40:40

generated by technological efficiency makes the corporate motivation

tzmofficial 40:40
40:43

to pursue such advances very strong

krusedianna 40:43
40:46

even though it is economically self-defeating over time.

krusedianna 40:46
40:49

In other words, regardless of the level of productivity

tzmofficial 40:49
40:53

if people don't have jobs they can't buy anything.

tzmofficial 40:53
40:56

This very fact alone that productivity is inverse to employment

tzmofficial 40:56
41:01

in all sectors should be enough to warrant a deliberate shift

tzmofficial 41:01
41:03

from the focus of human labor to a system

tzmofficial 41:03
41:06

where technology is given the highest priority.

tzmofficial 41:06
41:08

The system is literally denying peak production

tzmofficial 41:08
41:11

in a world where those 1 billion we mentioned are starving.

tzmofficial 41:11
41:16

I think that's probably the most despotic thing I can think of.

tzmofficial 41:16
41:19

Another damaging culmination of a society operating under a monetary system

tzmofficial 41:20
41:23

is the propensity for generating "established institutions".

tzmofficial 41:23
41:26

By this I mean the self-reinforcing need for any company

tzmofficial 41:27
41:28

or institution with power or vested interest

tzmofficial 41:29
41:32

to preserve that same power and investment to the exclusion

tzmofficial 41:32
41:35

of any and all new or differing information.

krusedianna 41:35
41:40

It is, on a smaller scale, the same self-defending mind-lock

tzmofficial 41:41
41:43

most of the world's population has

tzmofficial 41:43
41:46

towards alternatives to a monetary system.

krusedianna 41:47
41:49

Consider this: If you founded a drug company

tzmofficial 41:49
41:53

to produce cancer treatments, employed staff, attracted shareholders

tzmofficial 41:54
41:56

who invest in your company and expect a return on that investment

tzmofficial 41:56
41:59

you must do everything to maintain the viability of your enterprise.

krusedianna 42:00
42:03

You are, in fact, a vested interest in cancer.

tzmofficial 42:03
42:06

Were a cheap, easily administered non-toxic cure

tzmofficial 42:06
42:09

for a wide variety of cancers to come along

krusedianna 42:09
42:11

you are forced into the position of "fighting tooth and claw"

tzmofficial 42:11
42:15

to suppress, outsell and block this alternative medicine.

tzmofficial 42:15
42:18

The need for cyclical returns, growing profit and the need

tzmofficial 42:19
42:22

to maintain a competitive edge means increased prices

tzmofficial 42:22
42:24

and the maintaining of the status quo.

tzmofficial 42:24
42:27

It doesn't matter if it's bad for people or not.

krusedianna 42:27
42:31

The radical change in the status quo means ditching practices

krusedianna 42:31
42:35

developed drugs and research has been heavily funded on

tzmofficial 42:35
42:38

and which employs large numbers of people.

tzmofficial 42:38
42:40

And even if the jump was made to a singular

tzmofficial 42:40
42:42

cheap and easily applied treatment

krusedianna 42:42
42:45

prices would remain artificially high to maintain the profits

krusedianna 42:45
42:48

and the bottom line you'd already inherited from the old system.

tzmofficial 42:48
42:50

Immediately this puts the treatment out of the reach

tzmofficial 42:50
42:52

of the poorer sections of society, exactly those

tzmofficial 42:52
42:54

in the more unequal countries

tzmofficial 42:54
42:57

who absolutely require it.

tzmofficial 42:58
43:01

Those in more unequal countries have higher rates of illness as well.

tzmofficial 43:01
43:05

In a sustainable society formulated around the logic of a monetary system

tzmofficial 43:05
43:08

there would be nothing to hold back

tzmofficial 43:08
43:11

developmental implementation of anything

tzmofficial 43:12
43:14

once it's been tested thoroughly.

tzmofficial 43:14
43:17

There could be no "Established Institutions". New methods

tzmofficial 43:17
43:20

would immediately be implemented into society and no monetary institution

krusedianna 43:20
43:24

would thwart the change due to their self-preserving nature.

tzmofficial 43:25
43:28

Prior evidence of this kind of sick self-preservation to the detriment

tzmofficial 43:28
43:31

of the population easily fades from collective public memory.

tzmofficial 43:31
43:34

However, here are some examples of the outright lies

tzmofficial 43:34
43:37

that various institutions have perpetrated to preserve

tzmofficial 43:37
43:40

their own operational safety regardless of social concern.

tzmofficial 43:40
43:42

Has anyone seen these?

krusedianna 43:43
43:46

Lucky Strike [is] almost the best example of this, actually.

krusedianna 43:46
43:50

If you look, there's a guy on YouTube who keeps posting 1950's adverts.

tzmofficial 43:50
43:53

It's surprising how many of them are Lucky Strike. Filled with facts

tzmofficial 43:54
43:57

evidence and dead-faced grinning physicians with rosy cheeks

tzmofficial 43:57
44:01

Lucky Strike clearly saw the benefits of employing pseudoscience

tzmofficial 44:01
44:03

to convince countless people of the alleged safety

tzmofficial 44:04
44:07

and superiority of their cigarettes. Rather than withdraw this poison

tzmofficial 44:08
44:10

from the marketplace the act of reinforcement

tzmofficial 44:10
44:12

of sales through advertising is obvious.

tzmofficial 44:12
44:14

And rather than any government banning outright

tzmofficial 44:14
44:17

the sale of deadly toxins being sold to their own voters

tzmofficial 44:18
44:20

the tax garnered from their sales, which grows year upon year

tzmofficial 44:20
44:23

proves to be the dominant social mechanism in the process

tzmofficial 44:24
44:27

that selects this cultural attribute for self-preservation.

tzmofficial 44:28
44:30

Or how about this? - Mike, welcome to the show.

tzmofficial 44:30
44:33

We appreciate you being on tonight. - Thanks for the invitation, Joe.

tzmofficial 44:33
44:35

- Ok, let's talk about the rat of the week.

tzmofficial 44:35
44:39

Why is Bayer Corporation the rat of the week?

tzmofficial 44:39
44:41

- Internal documents show that after this company

tzmofficial 44:41
44:45

positively, absolutely knew that they had a medication

tzmofficial 44:45
44:47

that was infected with the AIDS virus

tzmofficial 44:47
44:49

they took the product off the market in the US

krusedianna 44:49
44:52

and then they dumped it in France, Europe, Asia and Latin America.

tzmofficial 44:53
44:57

The medicine's called Factor VIII. It's an injection medicine.

tzmofficial 44:57
44:59

It was used for hemophiliacs, mostly children.

tzmofficial 44:59
45:02

Children who had been born with an incurable disease. - Hold on Mike.

tzmofficial 45:03
45:05

So you're telling me, that Bayer knew

krusedianna 45:05
45:08

that this drug was infected with the AIDS virus.

krusedianna 45:08
45:10

They yanked it from the market in America

tzmofficial 45:10
45:13

and then they dumped it in markets overseas?

tzmofficial 45:13
45:16

- They had to figure out a way, Joe, to make a profit on a product

tzmofficial 45:16
45:20

that they could not sell in America. So they made a huge profit.

tzmofficial 45:20
45:23

They dropped the product in Japan, Spain and France.

tzmofficial 45:23
45:26

By the way, Joe, government officials in France

krusedianna 45:26
45:29

that allowed that to happen actually had to go to prison for it.

krusedianna 45:29
45:33

In America, not one corporate executive for this company

tzmofficial 45:33
45:36

has been indicted or even criminally investigated by our Justice Department.

tzmofficial 45:36
45:40

- Why not? You're telling me that these people that dumped

tzmofficial 45:40
45:43

this AIDS tainted blood in foreign countries

tzmofficial 45:43
45:45

who killed children

tzmofficial 45:45
45:48

have not been taken to task in the United States?

tzmofficial 45:49
45:52

- It's worse than that. The US Government allowed it to happen.

tzmofficial 45:52
45:55

The FDA allowed this to happen.

tzmofficial 45:55
45:57

And now the government is completely looking the other way.

tzmofficial 45:58
46:02

Thousands of innocent hemophiliacs have died from the AIDS virus

tzmofficial 46:03
46:05

and not only they're dying, their family members are dying

tzmofficial 46:05
46:08

because they're becoming infected with the disease.

tzmofficial 46:08
46:11

This company knew absolutely that they had a problem

tzmofficial 46:11
46:13

with a product that they knew was infected with AIDS.

tzmofficial 46:14
46:16

They dumped it because they wanted to turn

tzmofficial 46:16
46:18

this disaster into a profit.

krusedianna 46:18
46:21

- Mike, I want to read to you what Bayer

tzmofficial 46:21
46:23

told The New York Times about this scandal.

krusedianna 46:23
46:28

They said "Bayer behaved responsively, ethically and humanely.

tzmofficial 46:28
46:30

Decisions made nearly two decades ago were based

tzmofficial 46:31
46:33

on the best scientific information of the time

tzmofficial 46:34
46:36

and were consistent with the regulations in place."

tzmofficial 46:37
46:39

That sounds like a lot of legal mumbo-jumbo.

tzmofficial 46:39
46:42

Yet, you say you have internal documents that show that they knew

tzmofficial 46:43
46:46

that this drug they were dumping was tainted with the AIDS drug?

tzmofficial 46:46
46:50

Or the AIDS virus? - The documents show that there was no question

krusedianna 46:50
46:53

that this company absolutely understood the risk.

tzmofficial 46:53
46:56

They knew that it was contaminated. It wasn't a possibility.

tzmofficial 46:56
46:59

They knew it was contaminated. Americans were dying

tzmofficial 46:59
47:02

from the product before it was pulled off the market.

tzmofficial 47:02
47:04

The only reason it was pulled off the market is because

tzmofficial 47:04
47:07

lawyers found the documents and showed it to the government.

krusedianna 47:07
47:09

And finally the government said "You can't sell it here."

tzmofficial 47:09
47:13

But then the government allowed them to dump it in Spain, France and Japan.

tzmofficial 47:13
47:15

- That's amazing. That's just amazing.

krusedianna 47:16
47:19

I want to read to you what The New York Times said.

krusedianna 47:19
47:22

This is an investigation that they also did

krusedianna 47:22
47:25

and they said the Federal Government was part of the problem.

tzmofficial 47:25
47:28

While the Food and Drug Administration told the company

tzmofficial 47:28
47:33

not to ship the drugs overseas, the man responsible for the drug supply, quote:

tzmofficial 47:33
47:37

"Asked that the issue be quietly solved without alerting the Congress

tzmofficial 47:37
47:41

the medical community and the public." This is a cover-up!

tzmofficial 47:41
47:44

And our Congress is not doing anything!

tzmofficial 47:44
47:47

What should Americans do?

krusedianna 47:47
47:50

Have you ever wondered what today's "Lucky Strike" products are?

tzmofficial 47:50
47:55

What is your asbestos? What is your HIV-infected commercial medicine?

krusedianna 47:55
48:00

What is our generation's DDT? What is the thalidomide of now

tzmofficial 48:00
48:03

pushed as safe and sound, rushed through production without proper testing

tzmofficial 48:03
48:06

or understanding the effects due to the profit system?

tzmofficial 48:06
48:11

Commercial drugs have patent lifespans of 7 years, including trials

tzmofficial 48:11
48:15

and it takes only a cursory glance at modern medicine

tzmofficial 48:15
48:19

to see stories like Vioxx and realize

krusedianna 48:20
48:23

which is more important out of human concern and the profit motive.

krusedianna 48:24
48:27

What is being sold to you now that is self-evidently harmful

tzmofficial 48:27
48:29

ineffective and deliberately expensive?

tzmofficial 48:30
48:33

What today, tonight, will you consume that is developed to solve

krusedianna 48:33
48:36

a non-existent problem such as "restless leg syndrome"

krusedianna 48:37
48:39

or produced and tested in the cheapest way

krusedianna 48:39
48:43

that can be like Dell computers. I'm sorry, I've got a Dell, as well.

tzmofficial 48:46
48:48

Or marketed to you as absolutely necessary

tzmofficial 48:48
48:52

like SSRI anti-depressants or carcinogenic food colorings

tzmofficial 48:52
48:55

which are only there to make the food more attractive

krusedianna 48:55
48:57

so you will buy it.

tzmofficial 48:57
49:00

But why do we forget these histories of socially offensive behavior

tzmofficial 49:00
49:02

and outright danger, these negative retro-actions

tzmofficial 49:02
49:05

in our societal construct? Are we stupid? No, it's not that.

krusedianna 49:05
49:09

Many people regard the corporations as responsible in abstraction

krusedianna 49:09
49:12

almost as separate individualized entities. Corporate fines

krusedianna 49:12
49:15

or the public offering up of CEO's for punishment

tzmofficial 49:15
49:19

in a semi-ritualistic manner makes people feel a misguided sense

krusedianna 49:19
49:22

that "justice has been done," and that we can all now move on

tzmofficial 49:22
49:24

now that the offending "bad apples" have been removed

tzmofficial 49:24
49:27

that an aberrant problem has been rooted out of the system.

tzmofficial 49:27
49:30

Yet the root of the issue is not an isolated behavior

tzmofficial 49:30
49:32

by some rogue corporations or individual

tzmofficial 49:32
49:34

for the damaging behaviors are themselves a generation

tzmofficial 49:34
49:37

of the monetary system to begin with.

tzmofficial 49:37
49:41

A much stronger reason for the attrition of our memories

tzmofficial 49:41
49:43

and awareness of these kinds of failures

tzmofficial 49:43
49:47

is down to the media companies which automatically filter out

tzmofficial 49:47
49:50

negative stories because of corporate ownership

krusedianna 49:50
49:52

the need to attract advertising from the very companies

krusedianna 49:52
49:56

they might be exposing, or editorial censorship driven

tzmofficial 49:56
49:58

and informed by worldviews already indoctrinated into the logic

tzmofficial 49:59
50:01

of the market system as it currently is structured.

tzmofficial 50:01
50:05

You will not read about the vast corporate crimes in history class

tzmofficial 50:05
50:08

just as you will not be taught the fractional reserve banking system

tzmofficial 50:08
50:11

in economics. Ultimately it is of little value

tzmofficial 50:11
50:15

to the self-sustaining nature of the system or is a direct threat

krusedianna 50:15
50:19

to its dogma, as John McMurtry might have put it, and is just ignored.

krusedianna 50:20
50:22

And it's usually at this point that many believe

tzmofficial 50:22
50:25

that greater government intervention or regulation

tzmofficial 50:25
50:28

or even lack of government regulation or intervention

tzmofficial 50:28
50:32

or some mysterious and detail-lacking "reform"

tzmofficial 50:32
50:34

would solve this issue.

tzmofficial 50:34
50:37

That a true "free market" would somehow work out for the better.

tzmofficial 50:37
50:40

The one we're seeing now is not the true "free market".

krusedianna 50:40
50:42

Quite apart from the fact that the ecological

tzmofficial 50:42
50:44

and socially offensive detriments we have already outlined

tzmofficial 50:44
50:47

would continue untouched or completely unchecked

krusedianna 50:47
50:51

one must realize that there is no such thing as "the free market".

krusedianna 50:51
50:54

Governments are simply extensions of the corporations

tzmofficial 50:54
50:57

and the competition/advantage-driven marketplace.

tzmofficial 50:57
50:59

This is why we see so many politicians

tzmofficial 50:59
51:02

going on to be heads of vast private businesses

tzmofficial 51:03
51:05

or Directors of the World Bank or the IMF

tzmofficial 51:05
51:08

or worse, lobbying and non-governmental agencies

krusedianna 51:08
51:12

whose singular qualification is access and power and connections.

tzmofficial 51:12
51:15

Monopoly and cartel are the logical ends and goals

tzmofficial 51:15
51:19

of any corporate entity in a competition-based monetary system.

krusedianna 51:19
51:22

For example, let's say I open an electronics store.

krusedianna 51:22
51:26

(I could probably do it outside given the problems we had here today.)

tzmofficial 51:26
51:28

And at that time, there are 3 other stores in my area

tzmofficial 51:29
51:33

and I have to compete with them. As time moves forward

tzmofficial 51:33
51:36

I would streamline my competitive strategies

tzmofficial 51:36
51:39

and reduce overhead in such a way that my store becomes the dominant

tzmofficial 51:39
51:42

most affordable contributor of a certain set of items

tzmofficial 51:42
51:47

and everyone in town flocks to my store over the others for such items.

tzmofficial 51:47
51:50

Due to this, 2 of the other 3 stores go out of business and leave town.

krusedianna 51:50
51:54

At this point it is just my store and the little other competitor in my region.

tzmofficial 51:54
51:57

Since my profits have been so good I decide to attempt to acquire

krusedianna 51:58
52:00

or buy the competing store in town.

tzmofficial 52:00
52:03

They agree, so I purchase that store, put my logo on it

krusedianna 52:03
52:06

and BOOM! We have a regional monopoly.

krusedianna 52:06
52:09

Likewise, let's assume I didn't purchase the other store

tzmofficial 52:09
52:13

but rather became "friends" and then partners with them

tzmofficial 52:13
52:16

and thus figured out ways to allow for both of us to flourish

krusedianna 52:16
52:20

in a non-competitive way. Then you have a cartel.

tzmofficial 52:20
52:23

In other words, business is based, in part, on a gaming strategy

tzmofficial 52:23
52:25

to win market share and hence profit.

tzmofficial 52:25
52:27

Therefore, it is a natural gravitation to seek dominance

tzmofficial 52:27
52:31

in your sector or industry and the highest level is monopoly and cartel.

tzmofficial 52:31
52:34

It is a natural progression of the free-market system

tzmofficial 52:34
52:36

to become as dominant and powerful as possible.

tzmofficial 52:36
52:39

There is no corporation in the world who would not want to have

tzmofficial 52:39
52:41

a complete monopoly.

krusedianna 52:41
52:44

A lot of people believe motivation

tzmofficial 52:45
52:47

is spurred on by the promise of monetary reward

tzmofficial 52:47
52:49

and that without money nothing would ever be done.

krusedianna 52:49
52:53

It is a remarkable truth that modern life is based in large part

tzmofficial 52:53
52:56

on the sum of achievements of very few people many of whom

tzmofficial 52:56
52:59

had heavily altruistic ideas and who died poor.

tzmofficial 53:00
53:02

Those who license, buy or steal their ideas

tzmofficial 53:02
53:04

to make products and services for profit, however

krusedianna 53:04
53:08

are feeding off those other people's ideas for quite different reasons.

tzmofficial 53:08
53:12

Nikola Tesla who was the inventor of wireless technology

tzmofficial 53:12
53:14

and one of the inventors of radio. I say "one of"

tzmofficial 53:14
53:17

because there is actually a large debate as to who exactly produced it first.

tzmofficial 53:17
53:20

Broadly speaking, Marconi, Tesla and a few other people

krusedianna 53:20
53:22

developed the technology at the time.

tzmofficial 53:22
53:24

We have Tesla to thank for the alternating current

tzmofficial 53:25
53:27

which powers the world.

krusedianna 53:27
53:29

It's incredible he's forgotten.

krusedianna 53:29
53:32

He is the reason this room is even usable today.

tzmofficial 53:32
53:35

And Tesla was not doing it for the money. In fact, later in his life

krusedianna 53:35
53:40

Tesla built the Wardenclyffe Tower which was going to become

tzmofficial 53:40
53:43

one large hub of electricity that would be transferred wirelessly

tzmofficial 53:44
53:46

around the globe. It was actually part of a system.

tzmofficial 53:47
53:50

J.P. Morgan, our good friend, the richest and most powerful man

tzmofficial 53:50
53:54

at that time, was a financier of the 'Tesla Broadcasting System'.

tzmofficial 53:54
53:56

The tower was designed as a world communications center

tzmofficial 53:56
54:00

and Tesla added to the project

tzmofficial 54:03
54:06

in that the tower would also be used for transmitting

tzmofficial 54:06
54:09

electrical energy without wires to the entire globe.

tzmofficial 54:09
54:11

Tesla wanted to saturate the globe with electricity

tzmofficial 54:12
54:14

as a dynamo so that everyone on the surface of the globe

tzmofficial 54:14
54:18

could obtain electrical light just by sticking wires

tzmofficial 54:18
54:21

into the ground and an electrical bulb would light up.

krusedianna 54:21
54:25

Has anyone seen "The Prestige"? That's not science-fiction.

tzmofficial 54:25
54:28

Tesla managed to do that. The reason we don't see it now

tzmofficial 54:28
54:32

J.P. Morgan heard about the Tesla project

krusedianna 54:32
54:36

and he asked "How can we get money"? (These were his exact words.)

tzmofficial 54:36
54:38

"How can we get money from the electricity which Tesla

tzmofficial 54:38
54:40

is supplying to every part of the world?"

krusedianna 54:40
54:44

After that, Morgan cut the funds and the Tower was never finished.

krusedianna 54:44
54:48

Tesla died of heart failure in 1943

krusedianna 54:48
54:51

alone in his room in the New Yorker Hotel. [He was] broke.

tzmofficial 54:51
54:54

Not only was Tesla not motivated by money

krusedianna 54:54
54:57

he was actually hamstrung by it, and so are we

tzmofficial 54:57
55:01

years later, still seeing sights like this.

tzmofficial 55:01
55:04

So the next time you're wrestling with your cables behind your computer

tzmofficial 55:04
55:07

or hear stories of power lines destroying houses

tzmofficial 55:07
55:10

or large rolling blackouts because the power lines broke down

tzmofficial 55:10
55:12

remember by which mechanism we were denied

tzmofficial 55:12
55:15

globally available, wireless energy. All created by a man

tzmofficial 55:15
55:20

who simply wanted to make a better world and who paid the price for it.

tzmofficial 55:21
55:24

Is Tesla one in a billion? Evidently not.

tzmofficial 55:24
55:28

British inventor Emily Cummins invented a solar-powered fridge

tzmofficial 55:28
55:32

for use in hot and arid countries in a potting shed.

krusedianna 55:32
55:34

It doesn't require electricity. It's self-powering.

tzmofficial 55:35
55:38

These students invented self-powering biosensors

tzmofficial 55:38
55:40

that detect dangerous toxins.

krusedianna 55:41
55:43

Bear that one in mind for later on. That's quite important.

tzmofficial 55:43
55:46

Some students in North Carolina invented a textile

tzmofficial 55:46
55:48

that blocks radiation, making it possible for astronauts

tzmofficial 55:48
55:51

to survive the dangerous levels of radiation in space.

krusedianna 55:51
55:55

It wasn't NASA that fixed that, some students in North Carolina.

krusedianna 55:55
55:59

And an ignorant machine (this is my favourite one)

tzmofficial 56:00
56:04

given raw data deduced Newtonian laws all by itself.

krusedianna 56:05
56:08

We aren't all that far away from Deep Thought, the giant supercomputer

krusedianna 56:08
56:11

in "The Hitchhiker's Guide to the Galaxy" who is so powerful that

krusedianna 56:11
56:14

when first switched on and started with "I think, therefore I am"

krusedianna 56:14
56:16

he'd deduced the existence of income tax

tzmofficial 56:17
56:19

and rice pudding before they could turn it off again.

tzmofficial 56:19
56:22

All we need is unhampered scalability for the same thing.

tzmofficial 56:22
56:25

We've already created exactly what Adams was talking about.

tzmofficial 56:26
56:29

Or have a look at the correlation of successful patents filed

tzmofficial 56:29
56:32

as opposed to income inequality in our own lifetime.

tzmofficial 56:32
56:35

In countries where there is a smaller gap between the richest and poorest

tzmofficial 56:35
56:38

the number of patents is much higher than those

tzmofficial 56:38
56:42

in which massive stratification like the UK or the US exists.

tzmofficial 56:42
56:45

Were we truly equal, truly able to access resources

tzmofficial 56:45
56:49

on a level playing field, our innovation would skyrocket tomorrow

tzmofficial 56:49
56:52

based on the trends we are seeing even now.

tzmofficial 56:52
56:54

That line hasn't been drawn by me, by the way.

tzmofficial 56:54
56:56

That's a mathematical inference.

tzmofficial 56:56
56:58

It's not designed by Wilkinson or Pickett either.

tzmofficial 56:59
57:02

That's a by-product of the statistics themselves.

tzmofficial 57:03
57:07

Imagine how many more Teslas there would be were we not hampered

tzmofficial 57:07
57:10

by merely the best education that we can just about afford

krusedianna 57:10
57:12

and an education system that isn't purely geared

tzmofficial 57:12
57:16

to conditioning us for the 9-to-5 wage slavery of a job

tzmofficial 57:17
57:20

that, on average, produces nothing of societal significance

tzmofficial 57:20
57:22

and the exposure to low-grade media

tzmofficial 57:22
57:24

designed to make us buy rather than think.

krusedianna 57:25
57:29

I have absolutely no reservations in this: The human race is brilliant.

krusedianna 57:29
57:32

We are massively inventive, naturally curious, and have

tzmofficial 57:32
57:35

in spite of the hamstringing effects of the profit system

tzmofficial 57:35
57:39

designed and invented incredible systems of abundance.

krusedianna 57:39
57:42

It's time to put these systems into effect replacing the poisonous

tzmofficial 57:42
57:45

irrelevant and detrimental systems of profit, self-interest

tzmofficial 57:46
57:49

and duplicative competition, ecological mismanagement

tzmofficial 57:49
57:51

and the lack of general awareness of our needs

tzmofficial 57:52
57:54

and goals for survival on this planet.

tzmofficial 57:54
57:56

This is what The Venus Project proposes.

tzmofficial 57:57
57:59

We have, and have had for a long time

tzmofficial 57:59
58:01

the necessary technological wherewithal

krusedianna 58:01
58:06

to build systems of abundance, generation right now

krusedianna 58:06
58:09

not in some misty future. We could do it today.

tzmofficial 58:10
58:12

Why is there a water-shortage anywhere on this planet

tzmofficial 58:12
58:14

when it is covered mostly in water?

tzmofficial 58:15
58:17

We can produce desalination plants that work off the sun's energy.

tzmofficial 58:18
58:21

Don't think it can be done? Where do you think clouds come from?

krusedianna 58:21
58:23

We haven't done it systematically because there's no money

tzmofficial 58:23
58:26

in solving a problem and producing abundance so massive

krusedianna 58:26
58:30

that it doesn't require money. Think of Tesla.

krusedianna 58:30
58:33

Like Tesla's vision of free energy for all, the only reason it doesn't exist today

tzmofficial 58:34
58:37

is because scarcity equals profit by our present logic.

tzmofficial 58:37
58:41

So what do we do to get from here to there?

tzmofficial 58:41
58:44

What is proposed, and how do we do it?

krusedianna 58:44
58:46

Here are the fundamental concepts and strategies towards solving

krusedianna 58:46
58:50

these issues direly pressing in our world.

tzmofficial 58:50
58:52

It is called a Resource-Based Economy. First off

krusedianna 58:53
58:56

we move from a growth economy to a steady-state economy.

tzmofficial 58:56
59:00

We do not have the resources or the environmental freedom to keep using

tzmofficial 59:00
59:03

consuming, wasting and poisoning our resource pool.

tzmofficial 59:03
59:06

Not only do we have to move away from this paradigm

tzmofficial 59:06
59:08

we must outright flee it.

tzmofficial 59:08
59:11

We call for an absolute end to the monetary system.

krusedianna 59:11
59:14

This scarcity and waste we see around us is being generated

tzmofficial 59:14
59:17

created by us, not some intrinsic process of nature

tzmofficial 59:17
59:21

or some human nature, the assertions of which are religious in nature and are absurd

tzmofficial 59:21
59:23

when you think about our evident adaptability.

tzmofficial 59:23
59:25

The use of money is no longer relevant to us

tzmofficial 59:26
59:30

as we have thoroughly discussed and it's extremely detrimental.

tzmofficial 59:30
59:34

Second, we must move from a primitive

tzmofficial 59:34
59:38

competition-based invention system to a collaborative system.

tzmofficial 59:38
59:42

Not only are all goods produced in our current system inherently inferior

tzmofficial 59:42
59:45

due to the need to maintain a competitive cost basis in the marketplace

krusedianna 59:45
59:49

but the competitive system also generates large amounts of corruption

krusedianna 59:49
59:53

and yes, the incentive to compete does produce improved goods and services

krusedianna 59:53
59:57

to a certain degree, but that positive is completely overshadowed

tzmofficial 59:57
59:59

by the planned obsolescence, pointless duplication

tzmofficial 59:59
1:00:03

and general environmental detachment created by the necessity

tzmofficial 1:00:03
1:00:06

to stay ahead of someone else.

tzmofficial 1:00:06
1:00:10

Imagine for a moment if the top engineers of the major car companies

tzmofficial 1:00:11
1:00:15

rather than competing, got together and decided to collaborate

tzmofficial 1:00:15
1:00:18

on making the best car possible to a given point in time.

tzmofficial 1:00:18
1:00:21

Imagine if we established an incentive system that pulls people together

tzmofficial 1:00:21
1:00:26

to create the best rather than compete and produce inherent inferior...

krusedianna 1:00:26
1:00:28

(Sorry, I'm miles behind now, there we go.)

krusedianna 1:00:28
1:00:30

...inferiority, think about that.

tzmofficial 1:00:30
1:00:33

An open source world, with all lines coming together

krusedianna 1:00:34
1:00:37

to produce and improve goods so everyone can benefit.

krusedianna 1:00:37
1:00:39

The progress would be unbelievable. Not to mention

tzmofficial 1:00:40
1:00:42

it would save tremendous amounts of resources

krusedianna 1:00:42
1:00:44

for there is no longer a need for the duplication inherent

krusedianna 1:00:44
1:00:47

in the corporate, competing mechanism.

krusedianna 1:00:48
1:00:51

Third, we move from our piecemeal dispersed industrial methods

tzmofficial 1:00:51
1:00:55

to a centrally planned system of streamlined functionality.

krusedianna 1:00:56
1:00:58

Is it me or is it absolutely insane

tzmofficial 1:00:58
1:01:01

that we import strawberries from Brazil, bananas from Ecuador

krusedianna 1:01:01
1:01:05

water from Fiji, when all of these things can be produced locally.

krusedianna 1:01:05
1:01:09

As Jacque Fresco...does describe

tzmofficial 1:01:09
1:01:11

in regard to his city systems, everything

tzmofficial 1:01:11
1:01:14

is as self-contained as possible in a Resource-Based Economy.

krusedianna 1:01:14
1:01:19

As another example consider the general route of production

krusedianna 1:01:19
1:01:22

from mining materials, creating preliminary components

krusedianna 1:01:22
1:01:24

to assembling components, to distribution. You'll find

krusedianna 1:01:24
1:01:26

that these factories are all over the place:

krusedianna 1:01:26
1:01:29

different states, countries, parts of the world.

krusedianna 1:01:29
1:01:32

These components get transported around.

tzmofficial 1:01:33
1:01:35

We can do that all from one place.

tzmofficial 1:01:35
1:01:39

The Earth is a system and must be treated as such.

tzmofficial 1:01:39
1:01:41

There are resources all over the planet Earth

tzmofficial 1:01:41
1:01:45

and we must therefore create a system that can monitor

tzmofficial 1:01:45
1:01:50

these global resources in a holistic way.

krusedianna 1:01:50
1:01:53

The first step would be a full survey of the Earth's natural resources.

tzmofficial 1:01:53
1:01:55

If you don't know what you have, you can't make

tzmofficial 1:01:55
1:01:57

an intelligent decision about management.

tzmofficial 1:01:57
1:01:59

We must first understand the full range and capacity

tzmofficial 1:02:00
1:02:02

of the earthly components in order to derive

tzmofficial 1:02:02
1:02:04

inference as to our capabilities.

tzmofficial 1:02:04
1:02:06

There are many natural resources to be considered on planet Earth

tzmofficial 1:02:06
1:02:09

but for the sake of quickly showing the train of thought

krusedianna 1:02:09
1:02:11

let's just consider energy.

krusedianna 1:02:11
1:02:16

Since energy is the fuel of society, it makes perfect sense to begin with [energy].

krusedianna 1:02:16
1:02:18

So we scan and analyze the Earth

tzmofficial 1:02:18
1:02:21

listing all of the relevant energy locations and potentials.

tzmofficial 1:02:21
1:02:26

The potential, of course, to clarify is always based, in part

tzmofficial 1:02:26
1:02:29

on the current state of technology for harnessing.

tzmofficial 1:02:29
1:02:31

I say "current technology for harnessing"

krusedianna 1:02:31
1:02:34

because in some areas the potentials is based extensively

tzmofficial 1:02:34
1:02:37

on our ability to actually utilize it. For example

tzmofficial 1:02:37
1:02:42

solar energy has a dramatic potential but it is still greatly underutilized

tzmofficial 1:02:42
1:02:44

as the technology has been very inefficient so far.

tzmofficial 1:02:44
1:02:48

But with the advent of nanotechnology, we can see

tzmofficial 1:02:48
1:02:52

a possible exponential increase in this potential.

tzmofficial 1:02:53
1:02:56

So it is contingent upon the quality of our methods.

krusedianna 1:02:56
1:03:00

I don't have time to spend too much on this interesting topic

krusedianna 1:03:00
1:03:04

but if you research the trends of nanotech applied to solar radiation harnessing

tzmofficial 1:03:04
1:03:06

it becomes clear that solar energy alone

tzmofficial 1:03:06
1:03:09

could power the entire world, thousands of times over.

krusedianna 1:03:09
1:03:13

Moving on, we then have this raw data. We need to rate each resource

tzmofficial 1:03:13
1:03:15

based on its renewability, pollution output and everything

krusedianna 1:03:15
1:03:19

that factors into it, weighing to the degree of sustainability.

tzmofficial 1:03:19
1:03:22

Those sources which have the most negative retroactions

tzmofficial 1:03:22
1:03:24

are given the least priority in utilization.

krusedianna 1:03:25
1:03:27

For example, since fossils fuels are non-renewable

tzmofficial 1:03:27
1:03:29

and can pollute the environment and given the tremendous power

tzmofficial 1:03:29
1:03:32

of geothermal, wave, wind and solar combined

tzmofficial 1:03:33
1:03:37

I might find that there is no reason to burn fossil fuels at all.

krusedianna 1:03:39
1:03:43

Once realized, we move to the third step: Distribution and Monitoring.

tzmofficial 1:03:43
1:03:47

Energy distribution and infrastructure projects would logically be formulated

tzmofficial 1:03:47
1:03:50

based on technological possibility and proximity to sources.

tzmofficial 1:03:50
1:03:54

In other words, if we have wind energy being utilized in Asia

tzmofficial 1:03:54
1:03:57

we are likely not going to delivery that energy to Latin America.

krusedianna 1:03:58
1:04:00

So distribution parameters would be self-evident based on

krusedianna 1:04:00
1:04:04

the current state of technology and proximity practicality.

tzmofficial 1:04:05
1:04:09

Likewise, active resource monitoring done through earth sensors

krusedianna 1:04:09
1:04:11

(and that brings us back to that self-powered sensor system)

krusedianna 1:04:11
1:04:14

would run itself. It wouldn't need energy in the first place.

tzmofficial 1:04:14
1:04:18

And earth sensors and computers would allow a constant awareness

krusedianna 1:04:18
1:04:21

of the rate of use, the rate of depletion, the rate of renewal

krusedianna 1:04:21
1:04:23

and any other parameter relevant to know

tzmofficial 1:04:23
1:04:26

in order to maintain a balanced load.

tzmofficial 1:04:26
1:04:29

If the scarcity of any raw resource is going to occur

tzmofficial 1:04:29
1:04:31

we could forecast that well in advance

tzmofficial 1:04:31
1:04:34

which is what we're not doing, for example, with oil now.

tzmofficial 1:04:35
1:04:39

In fact, Hewlett Packard is developing

tzmofficial 1:04:39
1:04:41

a wireless sensing system to acquire

tzmofficial 1:04:42
1:04:44

extremely high-resolution seismic data on land.

tzmofficial 1:04:44
1:04:47

This is exactly the direction that we need to move in

tzmofficial 1:04:47
1:04:50

and the next level is simply maximizing the scalability of this technology

tzmofficial 1:04:50
1:04:52

in regard to creating a monitoring system

tzmofficial 1:04:52
1:04:55

for the entire planet including parameters

tzmofficial 1:04:55
1:04:58

from extraction to production to distribution.

tzmofficial 1:04:58
1:05:02

We must monitor and understand the rates of depletion and generation

tzmofficial 1:05:02
1:05:04

of all Earth's resources and, in turn, our actions

tzmofficial 1:05:04
1:05:08

will always be cognizant of their environmental impact.

krusedianna 1:05:08
1:05:12

So what do we have so far? We have the locations of the energy resources.

tzmofficial 1:05:12
1:05:16

We have the output potentials and the distribution qualifiers

krusedianna 1:05:16
1:05:20

based on statistical usage, technological harnessing and proximity.

tzmofficial 1:05:20
1:05:22

And finally, we have a system of active resource monitoring which reports

tzmofficial 1:05:22
1:05:27

the state of the energy supply rates of usage and any other relevant trends.

tzmofficial 1:05:27
1:05:30

In other words, we have created a system.

tzmofficial 1:05:30
1:05:33

A systems approach to the energy management on this planet.

tzmofficial 1:05:33
1:05:36

The system is comprised of real-time data and statistics.

krusedianna 1:05:37
1:05:42

The process of unfolding is biased, not on a person or group's opinion

krusedianna 1:05:42
1:05:44

not on the whims of a corporation or government

tzmofficial 1:05:45
1:05:47

but on the natural law and research. In other words

tzmofficial 1:05:47
1:05:50

once we establish the interest that survival

krusedianna 1:05:50
1:05:53

and hence sustainability is our goal, which I hope everyone here

tzmofficial 1:05:53
1:05:57

would think is quite important, each parameter to consider in regard of

krusedianna 1:05:57
1:05:59

resource management becomes self-evident.

krusedianna 1:05:59
1:06:02

It's called "arriving at decisions" as opposed to making them

tzmofficial 1:06:02
1:06:06

which is a subjective act based on incomplete information

krusedianna 1:06:06
1:06:09

and often cultural bias. (I can't imagine what

krusedianna 1:06:09
1:06:11

our Prime Minister is going to decide.

krusedianna 1:06:11
1:06:14

I don't know what he would use as his reference point.)

krusedianna 1:06:14
1:06:18

Using this energy model as a procedural example

tzmofficial 1:06:18
1:06:20

this systems approach can be applied to every other

tzmofficial 1:06:20
1:06:24

earthly resource and quantifier. We survey, find potential

tzmofficial 1:06:24
1:06:27

qualify for negative retroactions and apply modern technology

tzmofficial 1:06:27
1:06:29

to harness, distribute and monitor

tzmofficial 1:06:29
1:06:32

in the most logically advanced, holistic way possible.

tzmofficial 1:06:32
1:06:34

A computer database and management program

tzmofficial 1:06:34
1:06:36

would be the logical means to navigate these issues

tzmofficial 1:06:36
1:06:39

where all the attributes we have discussed are fed in

tzmofficial 1:06:39
1:06:42

with strategic computation applied.

tzmofficial 1:06:42
1:06:45

And since the goal is maximum efficiency

tzmofficial 1:06:45
1:06:48

the automation of adjustments becomes very simple.

krusedianna 1:06:48
1:06:51

For example, let's say we have two geothermal power plants

tzmofficial 1:06:51
1:06:55

in the same region, each outputting in tandem the required amount of energy.

tzmofficial 1:06:55
1:06:59

One day there is a problem and the output of one plant drops by 30%.

krusedianna 1:06:59
1:07:03

This would be seen by the monitoring system and the other plant's output

tzmofficial 1:07:03
1:07:05

would be automatically increased by 30%.

tzmofficial 1:07:05
1:07:08

It is reactive, just like the nervous system in your body.

krusedianna 1:07:08
1:07:12

No reasons to vote on it or debate it in Congress or in the Parliament.

tzmofficial 1:07:12
1:07:15

It's automatic because it's self-evident.

tzmofficial 1:07:15
1:07:20

We want to eliminate subjectivity currently dominant in today's society

tzmofficial 1:07:21
1:07:25

and replace politics with a system of physical reference.

tzmofficial 1:07:25
1:07:28

The possibilities of our technologies are absolutely profound.

tzmofficial 1:07:28
1:07:32

Even as unintuitive as it may seem, complex surgery

tzmofficial 1:07:32
1:07:35

is on pace with full automation and based on the pattern

tzmofficial 1:07:35
1:07:38

will likely become much more reliable than the human hand.

tzmofficial 1:07:38
1:07:43

In fact, people in the future will be appalled at the way we allowed

krusedianna 1:07:43
1:07:47

someone as irrational, technically inexact and with as varied a result

tzmofficial 1:07:47
1:07:50

as a human being to operate directly on the most valuable, subtle

tzmofficial 1:07:50
1:07:53

and advanced machine we have, the human being.

krusedianna 1:07:54
1:07:55

The bottom line is that it is socially irresponsible

tzmofficial 1:07:56
1:07:58

not to recognize this pattern and maximize the potential.

tzmofficial 1:07:59
1:08:01

We do not have the luxury of Luddite romanticism

tzmofficial 1:08:01
1:08:04

when it comes to the goals of material abundance and sustainability.

krusedianna 1:08:04
1:08:08

We must follow the trends as they come about.

krusedianna 1:08:08
1:08:12

The final issue to talk about before we leave is ownership.

tzmofficial 1:08:13
1:08:17

Ownership actually hampers access. We have less because we own more.

krusedianna 1:08:17
1:08:20

The best example is cars, all right? If you require a car

krusedianna 1:08:20
1:08:23

for whatever reason, the car is made available for you.

tzmofficial 1:08:23
1:08:25

When you get to your destination, the satellite system

krusedianna 1:08:25
1:08:28

in the car should (we already have development)

krusedianna 1:08:28
1:08:31

should be able to send that car off to the next person who needs it

krusedianna 1:08:31
1:08:33

as opposed to sitting in some parking lot

tzmofficial 1:08:33
1:08:36

wasting time and space for likely 80% of its time.

tzmofficial 1:08:37
1:08:39

This is what we do now. It's because we have

tzmofficial 1:08:40
1:08:42

built our systems around this kind of ownership

krusedianna 1:08:42
1:08:45

that we actually have. Individual access is a lot less.

krusedianna 1:08:45
1:08:47

We must realize how many resources will be saved

tzmofficial 1:08:48
1:08:51

enabling access, abundance for all when we stop this destructive idea

tzmofficial 1:08:52
1:08:54

of everyone owning one of everything.

krusedianna 1:08:54
1:08:56

Remember, property is this out-growth of scarcity.

tzmofficial 1:08:56
1:09:00

The only reason we own things is because there might not be enough to go around.

tzmofficial 1:09:00
1:09:02

In fact, if you think about it, property is a huge burden.

tzmofficial 1:09:03
1:09:05

No longer will a person need to live in one place.

tzmofficial 1:09:05
1:09:07

One could travel the world constantly

tzmofficial 1:09:08
1:09:09

getting what one needs as one moves along.

krusedianna 1:09:10
1:09:12

Anything needed is obtained without restriction.

krusedianna 1:09:12
1:09:17

We hoard things in our current system because (we have houses full of junk)

krusedianna 1:09:17
1:09:19

we're afraid to get rid of it because we know

tzmofficial 1:09:19
1:09:21

that they have some kind of monetary value.

tzmofficial 1:09:21
1:09:23

And again, there is no reason for this kind of

tzmofficial 1:09:24
1:09:26

abuse, for there is nothing to gain.

tzmofficial 1:09:26
1:09:28

You can't steal things in a society

tzmofficial 1:09:28
1:09:30

where there is open access to everything.

krusedianna 1:09:30
1:09:34

Perhaps you think that surpassing the monetary system is too radical.

krusedianna 1:09:34
1:09:37

That it's pie in the sky. It's too futuristic.

krusedianna 1:09:37
1:09:40

You know what I think is radical? Designing and presiding

tzmofficial 1:09:40
1:09:42

over a system based on infinite growth

tzmofficial 1:09:42
1:09:45

and which relies upon inefficiency and duplicated effort

krusedianna 1:09:45
1:09:48

and inferior throw-away products in a finite world.

krusedianna 1:09:49
1:09:52

We have to sell more, buy more, accrue more debt and produce more and more

tzmofficial 1:09:52
1:09:54

tons of waste in order for this system to function.

tzmofficial 1:09:54
1:09:57

Not only that, the successful function of the current system

tzmofficial 1:09:57
1:10:02

inherently means the few getting richer while the many get poor.

tzmofficial 1:10:02
1:10:06

Who will buy your products when there is so little work

tzmofficial 1:10:06
1:10:08

that the majority of humanity is unemployed?

tzmofficial 1:10:08
1:10:11

Who will use your services when most of us are starving?

tzmofficial 1:10:12
1:10:14

Yet we cannot keep producing more and more in a world

tzmofficial 1:10:15
1:10:17

with ever-shrinking resources and limited societal development

tzmofficial 1:10:18
1:10:20

development hamstrung by the need for every institution

tzmofficial 1:10:20
1:10:22

to preserve its status quo to begin with.

tzmofficial 1:10:22
1:10:24

That's the most radical thing I have ever heard of.

tzmofficial 1:10:24
1:10:28

It is demonstrably unsustainable. It is inhuman.

tzmofficial 1:10:28
1:10:31

In fact, it is anti-human.

tzmofficial 1:10:31
1:10:34

And while we hear this word "unsustainable" a lot

krusedianna 1:10:34
1:10:36

it's over-used again and again by the media. Let me remind you again

tzmofficial 1:10:36
1:10:40

what it means exactly. It means in our global society

tzmofficial 1:10:40
1:10:43

based on deliberate inefficiency, waste, pollution

krusedianna 1:10:43
1:10:46

and massive social stratification, the things we do right now

tzmofficial 1:10:47
1:10:49

will reach a point where it will not support

tzmofficial 1:10:49
1:10:51

human life the way we need it to.

tzmofficial 1:10:51
1:10:53

We must re-orientate our structures to support

tzmofficial 1:10:53
1:10:57

the population we have already, and which we are about to have.

tzmofficial 1:10:57
1:11:02

We are only successful in society if we take a hard look at the only thing

tzmofficial 1:11:02
1:11:04

which has ever been important and that is the survival

tzmofficial 1:11:04
1:11:07

of the entire species as a whole and to align our operations

tzmofficial 1:11:07
1:11:10

within the necessary laws and balances that our nature requires.

tzmofficial 1:11:10
1:11:15

That's the true meaning of evolution. I refuse to live in a society like this.

tzmofficial 1:11:15
1:11:20

I refuse to sit on top of the 10% of this world

tzmofficial 1:11:20
1:11:24

standing by while billions of mirror images of myself suffer and die

tzmofficial 1:11:24
1:11:27

for no good reason other than profit and artificial boundaries.

tzmofficial 1:11:28
1:11:31

No longer will I like to quietly tolerate the suffering

tzmofficial 1:11:31
1:11:34

of almost all of the only race I am a member of

tzmofficial 1:11:34
1:11:38

on the only planet in the known universe that I can presently inhabit.

tzmofficial 1:11:38
1:11:41

I do not accept that this is as good as it gets.

tzmofficial 1:11:41
1:11:43

This is as bad as it gets.

krusedianna 1:11:43
1:11:46

We need to roundly reject this paralyzing, limiting, divisional

tzmofficial 1:11:46
1:11:49

fraudulent mess we laughingly refer to as economics.

krusedianna 1:11:50
1:11:52

It is irrelevant and in direct opposition

krusedianna 1:11:53
1:11:56

to our survival, and it is stunting to our staggering

tzmofficial 1:11:56
1:11:59

and subtle, fantastic unlimited potential.

krusedianna 1:11:59
1:12:02

I'm sorry. It'll have to go.

tzmofficial 1:12:02
1:12:05

You know, if you consider yourself forward-thinking

krusedianna 1:12:05
1:12:07

you'll have learned to be able to look back

tzmofficial 1:12:07
1:12:09

at the present from the future.

tzmofficial 1:12:10
1:12:12

The future population of this earth can look back one day

tzmofficial 1:12:12
1:12:15

at our present tense and see one of two things.

tzmofficial 1:12:15
1:12:18

They could see that we recklessly destroyed ourselves

tzmofficial 1:12:18
1:12:20

and each other, or they can see that we made it.

tzmofficial 1:12:20
1:12:22

In the future they are already looking at our living group.

tzmofficial 1:12:23
1:12:25

And I want them to see that we did make it.

tzmofficial 1:12:25
1:12:28

We have to make it. Thank you.

tzmofficial 1:12:28
1:12:30

The Zeitgeist Movement

tzmofficial 1:12:30
1:12:32

The Future of Economics

tzmofficial 1:12:32
1:12:34

Ben McLeish

tzmofficial 1:12:34
1:12:37

London, June 5th, 2010