Climate Change and Money Creation: What’s the Connection?
90%
of money is created by banks out of thin air
90%
of which is used for speculation
90%
of the population does not know these facts...
Is Our Money System Fueling Climate Change?
We all know the drill: climate change is real, it’s happening, and it’s a massive threat to life as we know it. We’re told to drive less, recycle, and save energy—personal actions that are helpful but only scratch the surface. Here’s the real kicker: the very way our money is created is tied to the constant growth, consumption, and resource extraction that fuel climate change. Yep, money creation could be making it worse!
Debt-Based Money and the Growth Addiction
In our current system, most of our money is created as debt. Every time banks issue loans, they create new money that enters the economy. This sounds fine—until you realize that all this debt comes with interest, which means we constantly need to grow to keep up with repayments. And what fuels growth? Consumption. The more we consume, the bigger our carbon footprint gets. It’s a vicious cycle.
Why Does This Happen?
- Debt Demands Growth: When money is created as debt, we need continuous economic growth to keep paying back interest. That growth often comes at the expense of natural resources.
- Overconsumption: With debt-driven money, we’re encouraged to buy, build, and produce more, which increases emissions and depletes the planet’s resources.
- Short-Term Thinking: Businesses focus on quick returns to meet debt obligations, often prioritizing profits over long-term sustainability.
The Environmental Price of Debt-Driven Money
The constant need for growth puts enormous pressure on the planet. Forests are cleared, fossil fuels are burned, and waste piles up—all because the economy has to keep expanding to meet debt payments. This is one reason why climate activists say we need to rethink our economy if we’re serious about fighting climate change.
The Climate Costs:
- Carbon Emissions Soar: Growth-focused industries burn through resources and pump CO₂ into the atmosphere. Debt-driven growth means higher emissions, plain and simple.
- Natural Resource Depletion: Whether it’s forests, water, or minerals, the constant need for growth depletes finite resources, threatening ecosystems.
- Unsustainable Development: Debt-based financing drives unsustainable practices, as industries prioritize immediate profits to cover their debt instead of sustainable practices.
Sovereign Money: A Green Alternative?
Imagine if we had a money system that didn’t rely on endless debt and growth. Sovereign Money is a system where money is created by a public authority without the need for debt. This could change the game for climate action by breaking the cycle of debt-driven consumption.
How Sovereign Money Could Help the Climate:
- No More Growth Pressure: With debt-free money, we’re no longer trapped in a system that demands constant growth, which allows for more sustainable economic practices.
- Funding for Green Initiatives: Sovereign Money could be directed toward renewable energy, conservation, and sustainable infrastructure without adding to public debt.
- A Stable, Sustainable Economy: Instead of chasing endless growth, Sovereign Money could support a balanced economy that respects ecological limits.
Want to Break the Cycle of Debt and Consumption?
It’s time to tackle climate change at its root by rethinking how we create money. Let’s shift from a system that drives us toward constant consumption to one that supports sustainability.
- Learn the Details: Dive into Sovereign Money to see how a debt-free economy could change our approach to the climate crisis.
- Join the Movement: Connect with others who believe in an economy that works with the planet, not against it.
- Share the Knowledge: Spread the word! Climate action starts with understanding the economic forces at play.
In our view, this is the ultimate driver of the problem.
The question is, what will collapse first, society, the earth or the financial system?
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FAQs
How does money creation impact climate change? When money is created as debt, it pushes the economy to grow constantly to repay interest. This often leads to overconsumption, which drives up emissions and depletes resources.
Would Sovereign Money really help the climate? Yes! By removing the pressure for debt-driven growth, Sovereign Money could support a more balanced, sustainable economy focused on long-term health rather than quick profits.
Isn’t climate action about personal choices? Personal choices matter, but tackling climate change requires systemic change. Shifting to a debt-free money system could help us address the root causes of environmental destruction.
Image: jerichow
