How can we turn around the world’s financial institutions so that their creation of money serves to construct a new ecological civilisation, rather than destroys our current civilization through the financing of an ecological and climate catastrophe? Guy Dauncey has a few suggestions.
Achieving ecologically-sustainable finance is a massive problem that needs multiple solutions. Before we turn our attention to some possible solutions, we need some context. Global GDP in 2018 was $87.5 trillion. Global debt, created by the world’s financial institutions, was $247 trillion, growing by $14 trillion a year. Between 2005 and 2016 the debtincreased by 73%, split between governments ($63 trillion), non-financial corporations ($68 trillion) and private households ($44 trillion).
Global finance is not a singular entity. There are some 230,000 financial institutions in the world, including 25,000 fully licensed banks, 80,000 mutual investment funds, 89,000 credit unions, 20,000 to 30,000 shadow banks, and many