the international monetary system
To understand whether it is necessary to replace the current international monetary system with another, let us analyse how they work.
On one side, An international monetary system is the set of rules, mechanisms and actors that aim to organise and control the exchange of capital between countries. But on the other hand, it is a system with “black holes”.
Black holes in the international monetary system :
Indeed, international banking and financial supervision finds its limits in a number of “black holes”. As a result, international organisations and regulators do not have access. These black holes can be divided into two categories: geographical and political black holes.
These are, on the one hand, sovereign states where corruption is rife and, on the other hand, off-shore places where tax evasion and money laundering are rife. Or there are no local market or banking supervisors, which is often the case in tax havens. Or they exist, but do not cooperate or are unable to stop massive fraud. This is the case, for example, in states where corruption is rife.
Finally, it is also necessary to understand the principle of the international monetary system.
The principle of monetary systems :
All monetary systems that we can imagine have the same basic principle. They separate people from access to goods and services through money. This seems normal to us. However, the current abuses are the logical and direct consequences of this basic principle. It will act in whatever way we can put it around (1).
This principle creates a powerful engine, as it isdouble lever. On the one hand, it states that if you have no money, you have no access to anything, and you have nothing. Our basic needs such as food, water and shelter are no longer accessible. From this basic principle also arises the opposite side: the more money you have, the more opportunities you have. So we have two forces working together to steer us individually in a single direction: making money.
The dangers of the monetary system :
From this engine, which stems from the original principle of money, two fundamentally harmful characteristics emerge:
- it is a priority enginebecause it is the essential basis for any access. Therefore, for many people, many circumstances, and many reasons, it will be favoured over fundamentals (ecology, well-being, agreement, quality, health, safety, etc.).
- it is an individual engine. It resonates directly with our individuality, as everyone will have to find their own monetary source This engine, which is extremely powerful, is outside the scope of a solidarity and egalitarian incentive. Finally, the money available works by communicating vessels, or like a cake that is divided up. This places us in a competitive position from the very beginning.
The consequences of the monetary system :
From there, all the drifts of our current society are perfectly logical. A monetary system will above all encourage people to make money, by all means, good or bad (mafia networks, pimping, poaching, deforestation, etc.). And also to lower the quality of what we do in order to increase margins. This amounts to sawing off the branch on which we are sitting (programmed obsolescence, not patenting treatments that cure). Also to deplete our resources to sell (growth). In addition, begging or crime will constrain those who have none. Some will have “good leads”. This will lead to disparities, the possibility of domination or corruption.
If we want to change the monetary system and not decide to cooperate freely, we will have to add a system that allows (how?) to control, monitor, prevent effectively what the very basis of our system encourages to do. A monetary system is a dangerous social basis for individualism, suspicion, mistrust, inequality, tension, confrontation, corruption, criminality and all the excesses we know. And there will always be an ecological basis of depletion, impoverishment, pollution and destruction.
Everything may seem permitted in a non-market society. But if every individual is free, so is the community in which they live. No one can dominate, no service or good would be granted without the agreement of the one providing it. It makes sense to put yourself on a similar level if you don’t want to alienate the community and benefit from the indispensable skills of others. All mafia networks no longer have a reason to exist (how can the concept of pimping be considered, for example?), corruption becomes impossible. Infinite growth and the depletion of resources are no longer necessary.
No monetary system can guarantee human error. On the contrary, it encourages and allows almost all of them. Today, it is as easy to understand this from a theoretical point of view as it is to see it from a practical point of view.