By Samuel Kazen, Positiva Pengar
Today, money creation is largely outsourced to private banks. According to professor Peter Dietsch, this has devastating consequences for the climate. State-backed public money is automatically poured into whatever private banks deem profitable, including fossil fuel industries and the over-exploiting of natural resources. This blocks the green transition. Can money creation be reformed to stop feeding our public money into fossil fuel industries? Don’t miss this opportunity to meet Professor Dietsch at Positiva Pengar’s webinar Tuesday September 19, from 7 pm -9 pm CEST (1-3 pm ET) and learn why outsourcing money creation to private banks leads us towards a climate disaster and what we can do to stop it.
A hidden obstacle for the green transition
Among decision makers, climate activists and journalists, it is widely unacknowledged that states all over the world provide an almost endless stream of public money for fossil fuel investments. This is a serious obstacle for a green transition. Here is how it works:The state has delegated money creation to private banks. This means that the banks are authorised to decide who should get access to newly created public money. Money is not a scarce resource, money can be created by banks in endless quantities. The only thing that effectively restricts how much money banks create is whether certain investments are deemed to be profitable or not.Fossil fuel production is still very profitable and will remain so for the foreseeable future. This means that there are no effective restrictions on how much money the banks can create for fossil fuel investments. As a result, the world’s 60 largest banks have created $5.5 trillion for fossil fuel production since the Paris Agreement!As long as we, the public, continue to accept a political order where money creation is unconditionally outsourced to private companies, we can never solve the climate crisis.
Private Banks Create Money- A Serious Climate Threat?
Professor Peter Dietsch, University of Victoria
Tuesday September 19 from 7 pm -9 pm CEST (1 pm -3 pm ET)