How The Monetary System Works

This blog is mainly about focussing positively on a resource based economy, how it works, and how it can be implemented. Still, there seems to be a dire need to address the workings of our present monetary system, since some people doesn’t seem to grasp how detrimental this system is to our society, our health and the wellbeing of the planet in general. I think most people reading this blog ‘gets it’. This article is overemphasized towards those who don’t.

All of the elements below are self evident and clearly present in today’s world.

Our wonderful monetary system

Banks, loans, bills, taxes, bankruptcies, corruption, products that stop working right after the guarantee runs out. Competition, profit, buying, selling, trading, shopping, fashion, TV, advertising, cars brake down. Pollution, tar sands, oil spills, wars, nuclear disasters, asthma, deformed newly borns. Grades, neurosis, pharmaceuticals, doctors paid by them, prozac, more corruption, politicians, drug abuse, drug trade, financial crisis, unemployment, ingenious inventions that never see the light of day because they are bought up and shut down or outcompeted by the big corporations so they never reach The Market. Financial crisis, scarcity, inequality, injustice, greed, prostitution, pollution, clerks, meaningless jobs, police, military, terrorism, sell, sell, sell, sell, the media, homelessness, problems and crisis making the richer richer and the middle class into poor and the poorer even poorer. Overfishing, waste, consumption, bureaucracy, red tape, accounting, fraud, depression, suicide, crime.

Don’t you just love it?

You bet I do.

And the irony of it all; 99% of the ‘99%’ doesn’t even see it.

See what?

The problem. The cause of it all.

For some time I thought that ‘there will always be wars between people’. Sometime, somewhere on the planet, there will always be a war going on. I thought that this was a part of ‘human nature’, and after all, a war served as a contrast to ‘what we didn’t want’.

Now I understand that this is complete and utter bullshit.

Human Nature is not greedy. Humans become what society and their surroundings make them. If their surroundings are 100% greed, they become greedy. When they grow up in a world where the credo is ‘You Have To Make Money!’, ‘You Have To Succeed!!’ and ‘The More Money You Have, The More Successful You Are!!!’ then it is no wonder they become greedy, rip of others in a brown collar, blue collar or white collar way, become bankers, stock brokers and robbers, or simply….take a job.

Humans, when given the chance, are helpful, caring and sharing beings. This is who we really are. And this has been proven again and again.

So, if it is not ‘human nature’ that causes all of the shit we have in the world today, then what is it?

The answer is, it is the system itself. And when I say ‘the system’, I mean both the monetary system and the system of values that comes with it.

So, what came first? The monetary system or the value system? It’s a good question, but not really necessary to answer. It doesn’t really matter. The point is that it is here, and one is reinforcing and strengthening the other.

The profit based monetary system is leading to greedy values, while greedy values again lead to the monetary system. It has been a vicious spiral that has been going on for thousand of years with a culmination in present day.

Profit Motive

The profit motive is the controlling factor in the monetary system.

Today we are all slaves to the profit motive whether we like it or not. All adults has to make a profit, to ‘earn a living’. This goes for companies and corporations too. Without profit, they go bankrupt, people loose their jobs and everything collapses.

The Profit Motive rules the world. It doesn’t matter how good intentions you have. If you can’t reach the market and make a profit, it doesn’t have any value in today’s world.

No matter how much you want to help people in need, you have to buy your own way in this world. If you want to create new sustainable and efficient technologies, you still have to make a profit. No matter how great artist, painter, dancer or singer you are, you have to earn your money. The company have to earn money. The organization have to earn money. The corporation have to earn money. The government have to earn money.

We all have to make a profit.


Thus, we have to trade with each other. No matter how much you want to simply give your services and products away, you have to get some money back. No matter how much you want to share your skills, you have to ‘make a living’.

You have to trade whatever you have with others and get money back for it to pay your bills, buy your food and all the stuff you need to simply live. So, in this system, we have to trade.

We can of course give something away, but that’s not the point. The point is that we have to trade in this world, or else we die. If we give away all that we have, we won’t have any money to buy what we need ourselves.

We could of course try to live of the land, scavenge dumpsters or rely on kind friends to feed us, maybe in return for our services. And some do this. Still, the majority have to work and use money. If everyone abandoned money, well then we would of course not have the monetary system anymore, but rather a resource based gift economy which is what this whole blog is about.

Property and Ownership

Now, here’s the kicker. In nature there’s no real ‘property’ or ‘ownership’. It doesn’t exist. What exists is usership, possession and access. But in our monetary system, we have ‘property’ and ‘ownership’. What this means is that you can get a paper that say’s that ‘you own something’, making that thing ‘your property’.

These concepts are the basic building blocks of the monetary socio-economic capitalistic system. The concept of ownership and property is what has made it possible for a few in this world to own a lot. It is what makes this whole system go around. Still, ownership is only a concept. Not a real thing.

The more you own, on paper that is (because in reality no one can own anything), the richer and more ‘wealthy’ you are. The funny thing is that if you own 5 villas, 7 cars, 3 boats and 2 farms, you can only use a very small amount of time on each thing. Most of the time, ‘your’ things will be idle. Unused.

Still, you own it. You have bought it with your own money. Or…maybe not. Maybe you bought it with OPM. Other People’s Money. Loaned money.

Money and Banking

Money is the ‘blood’ that nurtures this whole system, and makes the monetary system possible. With money we can charge each other and pay each other. We can fine each other and tax each other. We can invest and become rich, or loose and go bankrupt.

But where does all the money come from? The money comes from the banks, and it is made out of fresh air (as a Bank Of England employee called it). Yes, today money is created by The Federal Reserve and the central banks around the world when needed. And the money is given it’s value in decree, meaning that it is the government that decides the monetary value of each ‘coin’, even though 99% of all the money today is electronic. The ‘gold standard’ that once existed has been abandoned a long time ago. Now, money has no relationship to anything real.

The central banks in turn lends the money out to other banks, who then lends it out to customers. And here’s how this process happens, through fractional reserve banking: 

Bank A gets 100 million dollars from a central bank. It can then lend out up to 90% of this (this percentage varies from country to country, some can lend out up to 100% of these money) to a customer. This loan is then deposited to an account in another bank, or in the same bank (this doesn’t really matter, since most of the banks work together in a cartel anyway).

As soon as this money is deposited, the bank can then lend out 90% of these money to another customer, and on and on. So, from 100 million (which was created from fresh air), the banks can multiply this to around 1 billion dollars through repeated lending. You might ask, ‘but what if the customer want to withdraw his money, and the bank has just lent it out’??? Well, of course, that’s the problem. Here’s where the banks are gambling.

Most of the time the customers does not want or need to withdraw a lot of money. If a customer want to withdraw a reasonable amount, that is no problem. The bank then takes that money from the pool of money it has. The problem comes if many customers want to withdraw a lot of money at the same time. This doesn’t happen often, but when it does, it might threaten the life of that particular bank.


Anyway. This is how our money are created from ‘fresh air’. And of course, the loans has to be paid back, with interest. Now, this interest isn’t created in the system, which leads to a larger and larger deficit in the system, which shows up as bankruptcies around the world. And this is what we see today with even whole countries practically bankrupt. There’s simply not enough money to go around. The system is bound to collapse.

What is funny, is that the banks, in addition to interest, demand ‘security’ from the lender, while the bank obviously doesn’t have any security for the money themselves, other than the ‘fresh air’ they were made of in the first place.

If you doubt any of these claims, just Google ‘fractional reserve banking’ do your own research, and you will get it confirmed.

Now, many people are very upset about the banking system and the financial crises. Still, almost as many doesn’t see how the whole monetary system is at fault, not only some bankers or the banking system.


Now, to further elaborate on how our monetary system upholds itself, let’s see how the ingenuity of it makes some people on the planet live lives in leisure, while others have to work by the sweat of their brow, if they are ‘lucky’ enough to have a job, that is.

When the ‘common man’ takes up his much needed loan to buy his much needed home, what happens? Well, the interest he pays on the money he has loaned goes to the bank, who in turn pays another customer his interest on money he has deposited.

So, if you have 10 million dollars, and put them in a bank on 3% interest, you get 300.000 dollars each year from the bank, for doing nothing. But who pays these money? Well, that is of course the man and all the others who took up a loan at 5% interest. And the ones who are taking up loans and paying interest is of course a much larger group than the ones who have money in the bank and gets interest.

This way, the rich can live lives in leisure, while the rest have to work, paying back their loans. Pretty smart system, if you ask me. For the rich, that is.

So, capitalism is really a pyramid scheme. On the very top is a secret group of some very very few people, who effectively controls the money supply in the world, and through a conglomerate of companies, banks and corporations owns and controls most of the planet and it’s governments.

This pyramid is controlled by money and ownership and everyone tries to climb to the top, which is one of the smarts mechanisms of the system. Everyone wants better lives, and better lives is found in more money, more money is found in better jobs, more investments, more ownership and so on, so everybody steps on everybody else to get there, and on the way they pay and reinforce the system through loans and taxes. And this happens 100% voluntarily by the people in the system. They are voluntary slaves, serving the system with their jobs and investments.

On the bottom of this pyramid, we find the population at large. The ones who actually holds this pyramid up by obediently going to work, paying their loans and taxes and buying their products as good consumers.

The ones who are outside of this pyramid are the many jobless and poor who doesn’t have loans or jobs and doesn’t pay taxes, and the very few who have effectively abandoned money and property and tries to live different lifestyles. But these are disparagingly few.

Cyclical Consumption

In addition to the money and banking system, the monetary system needs us to constantly buy new stuff for it to survive. If we stop buying, the system will collapse. This is called cyclical consumption. We have to buy, buy, buy, buy and consume, consume, consume.

Notice how we are called ‘consumers’ without anyone even getting slightly insulted. That is how deep the system have indoctrinated us into believing that ‘this is the way it has to be’. Read with a robotic voice: ‘Yes, I am a consumer. I buy things. I consume. I am important because without me the whole system collapses’.

So, are you a consumer? Or are you a human being?

Planned and Perceived Obsolescence

As a result of the need for cyclical consumption, products can not be made to last as long as they could have. Thus, products are designed to break. The first nylon stockings, for instance, never broke, which made the corporations redesign the stocking to be weaker and have a shorter lifespan, so that they could sell more and make a profit.

This kind of planned obsolescence is designed into most products we buy today. The products can not be made too sturdy and long lasting, and have to be made in such a way that they become obsolete in themselves. Instead of being updated, they have to be replaced.

In addition to the planned obsolescence, we have perceived obsolescence. This is when a product is still working fine, but the customer still wants a new one, because of sentimental reasons, like fashion or perceived higher quality or style in ‘the new’ product. And these feelings and wants are of course produced by advertising and marketing in the media. And the reason for all of this is? To make a profit and uphold the monetary system.


Competition is another factor built into the monetary system.

Instead of companies collaborating to make the best, longest lasting, most efficient, smartest designed products of the highest quality, they have to compete for market share, patent their ‘intellectual property’ and keep it away from competitors. So, they are burdened with both competition to ‘stay alive’, cyclical consumption and planned obsolescence.

It is a fine balance they have to keep. They have to present a whole host of seemingly different products in different price ranges to give the so-called consumers (us) a so-called ‘choice’. All in the name of profit.

But, of course, it has to be like this, or else our whole system will collapse!

We must consume and buy stuff. We can’t have long lasting products. We must be brainwashed to buy new stuff all the time. The companies has to make a profit, or else we will be all out of jobs!!! 

Yes, of course, this is how it has to be. In the monetary system.

But, what would happen if we used much less? If we took up fewer loans? If the companies made long lasting products? If 50% of all food wasn’t thrown away? It is obvious. With lesser consumption, which is many people’s goal, the system will collapse. Then, what do we do? No jobs for anyone. No money. What shall we do???

Corruption and crime

Corruption is the result of money. Not dishonest people, not greed, not poverty. No, money, property and the need for profit are the causes of corruption.

When you have a system where the people constantly have to trade with each other, compete for jobs and resources, buy and sell to each other and earn money, corruption automatically arises.

Because in a system with money, scarcity is a needed factor. If something is too abundant it will have no value. Money itself will have no value if it is too abundant. Thus, constant competition is needed and people need to pay each other and try to get as much out of each other as possible. To me, this itself is corruption.

Anything that is not given freely, but demanded money for, is basically corruption. The monetary system itself is built upon fraudulent money designed to enslave the population on the planet, and thus the use of this currencies is itself corruption, except we don’t know it.

The monetary system also leads to crime. Since scarcity is needed and built into the system, this will automatically create big differences between haves and have nots, which leads to crime; poor people wanting to have the standard of living of the rich.

The Benefits of The Monetary System

Hm….can’t think of any. At least not any that serves all of us, and not just a few.

If I should think of one ‘benefit’, it would have to be the possibility to use money as a measurement of gratitude.

In any case, I think this one little benefit can easily be replaced in a resource based economy with true gifts instead. Gifts you have made yourself. Like a song, a dinner, a cake. I am not talking about bartering here, only gifts.

We Know

We know that the oceans are overfished. ‘They should fish less!’ We know that the rainforest is cut down to make room for soy bean plantations. ‘We should save the rainforest!!’ We know that there is a huge drug trade in the world. ‘We should stop them!!!’ We know that there is trafficking, with both children, men and women. ‘They should stop that!!!!’ We know that there are millions of hungry and homeless in the world. ‘We should give them food and shelter!!!!!’ We know that there are more than enough alternative energy sources to fuel the whole world. ‘We should use them!!!!!!’ We know billions is spent on war. ‘They should spend it on health, schools and the old!!!!!!!’

Now, why are they going to war? Why aren’t alternative energy used instead of oil? Why aren’t all the hungry and homeless fed and sheltered? Why are people suffering in trafficking? Why is there a huge drug trade in the world? Why is the rainforest cut down? Why are the oceans overfished? Why? Why?? Why???

And the answer is:   Profit.   Money.   Greed.   Property.

Do    you    get    it?

The System

It is the whole monetary system and the mindset behind it that is at cause. It isn’t the ‘bad guys’ or ‘freak coincidence’. No. It is our system.

We can’t stop these things happening within this system. Why? Because THE WORLD NEEDS TO MAKE  A PROFIT!!!

Every person, every business, every corporation and every government NEEEDS TO MAKE A PROFIT. That’s why.

Everyone needs to make a profit from what they do, and they do everything they can to make a profit. Be it going to war, overfishing, cutting down rainforest, smuggle drugs, traffic children, give irresponsible loans, trade money, trade gold, trade fish, trade, trade trade, trade and kick the ones who can not pay out or their homes. The profit incentive leads to greed which again leads to more want for profit.

We can’t avoid planned obsolescence and cyclical consumption, we can’t make products that last, we can’t feed and shelter all the hungry and homeless, we can’t stop wars, we can’t stop using oil, because these things are non profitable, and if we try to stop it, the whole system will collapse, because there would be no jobs, and no one to buy the products, big corporations would not earn money, go bankrupt and more people will be out of jobs, and so on. 

It is not ‘bad people’ who do these things. It is normal people like you and me. But, like you and me, they are infected with this thought of money, property and profit. Now, can you see the problem?

Now, can you see the solution?

Just imagine for a second, if we simply removed money, profit, trade and property.

Then we replaced it with natural sharing, giving, usership and accessibility.


Can you see the consequences? Can you reeeaaaally see it?

What would happen if we all shared? Simply shared. Shared our skills and knowledge. Shared our resources.

No competition. No profit. No money.

Instead: Collaboration. Joy. Excitement. Enthusiasm. On a global scale.

For everyone.

We could simply go out there and do what we need to do. Feed the ones who need it. And not only feed them, but build a whole new world for all of us. A world we can all live happily in together. Build up the soil. Make it thick and black and full of juicy nutrients for succulent vegetables to grow in.

Build up our knowledge about everything. And just do it! No need for patents anymore. No need for secrecy. No need for war. No need for money. No need for investors. No need to overfish the oceans. No need for trafficking. No need to drill for more oil. No need to worry about jobs and unemployment. No need to cut down the rainforest or kill the gorillas. No need to. No need to.

If we only let go of money. Property. Ownership. Profit. And greed.

What we are left with are the resources. What we can actually use. What we can actually eat, build houses with, make clothes with. All our common material and mental resources.

Resource Based Economy

What we are talking about is a resource based economy, which you can read all about on this website and on the sites of The Venus Project and The Zeitgeist Movement.

In a resource based economy, we focus on the actual needed resources to produce anything. And we abandon trade, barter, money and ownership. Instead we have giving, sharing, accessibility and usership.

On a personal level, you can call it a gift economy, because whatever you do for anyone, you have to give away for free. But of course, when everyone thinks and acts like this, you will get a tenfold of gifts back as well.

Still, you giving something is also a resource, whether you sing a song for someone, share your knowledge on a subject, program a new application, make a movie or grow delicious food.

When we all live in a giving society, we will also get much more than we give. Why? Because that’s the power of a network of giving. When our mindset shifts from thinking only of ourselves, to thinking of others just as much, everyone will get more.

You giving of your skills and knowledge can be called sharing mental resources. All the other resources would be the material resources, like food, land, houses, transport, tools, energy, etc.

Do you know what the average usage time on a power drill is in today’s world? 20 minutes. In average, every power drill produced is used only 20 minutes in it’s entire lifespan. And the same goes for many other things in our world today. Cars are only used a fraction of their time. So are private boats. Skates. Skis. Etc, etc. Not to speak of all the waste we get from producing all this stuff.

In a resource based economy, we could actually focus on producing long lasting products, and then share them, instead of hoarding them. And we could focus on producing it without waste and pollution.

And instead of ownership, we would have usership. This means that whatever you use and need, you can use as long as you need it. And when you’re done with it, it goes back into the pool of resources. Be it a power drill, a car, a house or a piece of land.

All the resources on the planet would simply be shared and used where they were needed in the most environmentally friendly way. In fact, we wouldn’t have to weigh the balance between environment, jobs and profit. We could actually focus on the environment and ’employ’ as many as needed for the task of those who wanted to contribute to that, and then some.

No need to ‘get funding’, ‘find investors’, etc. etc. As long as we provide food and shelter for everyone who want’s to participate, we are good to go.

And again, we would of course utilize and develop as much technology as needed without the ‘technological unemployment’ ghost threatening. If we were to build a new dam, we wouldn’t need thousands of workers. No, we would construct machines to do, not only the heavy lifting, but the majority of the work itself.

Not that we would have to construct any new dam at all. There are plenty of alternative energy resources today that we can do very well without any new dams on the planet.

And within the resource based economy we could actually take the technologies that work the best and utilize them for everyone, without any competition or greedy corporations trying to ruin it for us, or the market not buying it. Now, we would simply work together, globally, to invent and develop the best new solutions. Solutions that save the environment, rather than ruin it. Solutions that help people, rather than hinder them.

Then, why would anyone contribute to any of this? Because it would be in everyones interest. It would be 100% meaningful and purposeful. It would be interesting and challenging. It would be liberating and joyful. It would be work that actually meant something.

Without the need to set different price tags on everything, we could set one; Priceless.

Many people might think of this as a kind of utopia. Getting all the worlds people in on this sounds daunting. Still, I think it is already in us. Giving and sharing is normal and natural in all of the world’s cultures.

We buy friends dinner without thinking about it. We share knowledge without cost, both on- and offline. People constantly help each other all around the world. Be it doctors, nurses, aid workers, computer specialists, or someone simply helping old ladies across the street.

On Cuba you are considered a taxi driver if you have a car. And that goes for tourists too. You have to stop for hitch hikers and share your car.

On Fiji, they basically doesn’t have any private property. Usership and sharing is the norm. If you are there and comment positively on the TV of your Fiji family, they will feel compelled to give it to you.

I think our basic instinct is to share. Our human nature is not a greedy one, but a sharing one. It has only been buried under layers upon layers of money and property for millennia.

Thinking about a global resource based economy in today’s crazy money world might be a long shot.

Still, I think it is the best shot we have.

31 thoughts on “How The Monetary System Works

  1. not so fast. money on loan etc. has been around since the dawn of civilization aka stored resources that can be raided by criminal gangs known as bandits pirates and armies. if you remove resource storage you revert to pre agricultural hand to mouth struggle to survive and life is nasty brutish and short for all. humans want a pleasant easy long life. imaginr all the people sharing all the world as it is today tequires a system of governance even self goverment or you have resource wars between workers and empires. with the mercantile syatem you wind up with extintion. with no systen you revert to primitive existence. for sgaring the use of resources and tools you must yransfer real power from the owning class to the using class. the banker elites have already programmed humanity to think this will be as bad as bank financed soviet socialism or national socialism. slavery is freedom and the lesser of evils to the slaves of the owners. this matrix of deception is the real issue.

  2. Why must the system require any money what so ever? Just build craigslist into facebook but remove money from the equation. People list what they have and don’t need, and people list what they need or are looking for.

  3. Too bad its been so long since anyone issued any new comments in years and even more depressing the number of FB followers. I have yet to see an article so profound in articulating the views and opinions in such a clear, concise manner yet have so little recognition. There are many views out there attempting to “fix” the system we live in by selling ideas but no one ever has a clear, effective idea on how to transition into an RBE.

    Resource Based Economies exist today in smaller regions, sharing communities if you will, however they lack the abundance and technological advantages described in The Venus Project to entice any sort of future growth. Unfortunately in order to achieve these ideas it must exist on a global scale and I honestly believe if we approach solving our issues only in this perspective we are doomed to failure. The powers that control our lives will NEVER let that happen and only a massive global disaster, economic, natural or otherwise, devastating enough to wipe out almost everything would possibly allow an RBE to flourish, but without the current infrastructure we have today it would take decades if not centuries to rebuild; and only if we find the strength to evolve.

    In light of this, I propose to develop this “sharing” system, in a technical, decisive and open-sourced format. I’ve itemized points to consider in its creation and ideas, critics, or changes you feel could help in its evolution would certainly help.

    1. A regional membership/subscription economic model(again this is a transition into an RBE therefore requires a monetary incentive in the beginning) requiring regular monetary transactions to continue receiving membership services within your local sharing community.
    2. Investments, corporate, donated or otherwise, are collected in a capital registered fund where everyone is a member of the financial board and votes for all purchases within the registered community are voted and spent based on mathematical formulae similar to a cost vs demand ratio. Promotion towards sustainability is achieved through providing subsidy to people and businesses alike chosen by the community and must operate within set sustainability guidelines. Those who purposefully do not may legally have to pay a large penalty as voted by the community and are therefore extremely efficient, ecological, humane and above all, honest. This would be a true democracy where every member has a right to justify every purchase and actionable decision within the community, not a select government. Leadership is only required for specialized practices though any position that inflicts control over another member is not required and not tolerated.
    3. The perception of OWNERSHIP is replaced with USERSHIP. This entitles every member to share their possessions or services with each other member as a registered item, dwelling, knowledge or service as deemed only by that sharing member(in other words, if I like my TV and watch it everyday that TV is considered an item I use, and therefore I would not register that item in the community to be shared until I no longer need it or replace with a new one. There could be a central warehouse, storage depot or similar funded by the community which can neatly house items for each member to use and return as needed.
    4. An abundance would eventually be created when a surplus of shared goods and services are created, purchased or subscribed by hundreds to thousands of local members. Key necessity items such as food, shelter, clothing and companionship are focused as the primary commodity which members volunteer to ensure this abundance is maintained and utilized for everyone, while luxury items are distributed on a loan or time share, depending on the luxury.The amount of time would depend on another supply/demand ratio.
    5. Necessary skilled members normally charging for their services including dentists, chiropractics, trades and the like would eventually be made available in the community either through the utilization of the registered capital fund, members volunteering these accredited services or through a members own private funds during the transition. Eventually through readily available quality education, many of these services could be rendered by many individual members themselves, hired in bulk, or might become unnecessary with advancements in technology, health and education. Much like a luxury item, these services made available by the community for the community would be issued on supply/demand ratio, otherwise special requests are made by members to the community for financial, voluntary support on shared social media sites of all communities. Smaller support groups could meet regularly for more personal attention to each members needs.
    6. As membership numbers grow, abundance is created and the reliance on the system dwindles within that local community, those members begin to see major decreases in the cost of their regular subscription to the point where it may disappear completely. Once people realize they do not need 3-4000 square foot homes made of wasteful, non-efficient homes, require their own car, latest fashions, lavish vacations and other consumer related non-sense that only addict us to continue to remain and get further in financial debt, will they realize their true happiness has been inhibited all along. Beauty and happiness exists within a loving, accepting, giving community who do not expect any form of trade or exchange in return for services or gifts. Money then becomes unnecessary and members live within their local environments of sustainability, sharing their prospects of true happiness with everyone they come in contact with.
    7. As more communities develop and move away from our current system, businesses are subsidized by local communities and provide demanded goods and services at fractions less than retail cost to its members, attracting more followers as well. These businesses flourish by acquiring more business direct to members and are required to function within the communities goals of sustainability. Thus the dawn of an RBE truly begins when these business forget about profit once overthrown by the will of others to remove the need to purchase these goods and offer them at no cost to everyone.
    9. Technology: While old and new businesses continue to flourish within each local community, the internet paves the way for global communication between all communities. This allows for products to be developed without planned obsolescence but with lifetime resilience, modular construction allowing for potential upgrades and modifications and without the barriers of money to stop creative innovation. Online university tuitions are purchased on a site license basis and shared for everyone willing to learn. Automation becomes the forefront for our evolution to a 4 hour work week as hundreds of thousands of members currently unemployed yet are able to become free members of their local community, volunteer their commitment to help others, contribute in any way they can even if only because it is what everyone else is doing.
    10. Finally after decades of transition a final push from the current financial system is made before its collapse and each remaining citizen are welcomed and helped to sustain the every human being on the planet, while protecting the very environment that sustains us. Global powers are united completely transitioning local communities to a hive network of superior advancement. With the existence of religion, scarcity and uneducated racism in effect, many regions may continue to reject any idea of communal involvement and may continue to fight for access to resources, however through higher forms of perspectives within each community, perseverance and education, these factions become smaller and smaller until eventually absorbed into a proper way of life.

    To summarize, I believe there is a beginning that can start today, without a test city, non-profit organization or activist group. We have the technology right now, in our homes, to change our lives. By creating a social network of local communities, sacrificing and investing ourselves for the good of our future, we can begin to build a sustainable existence for generations before it is too late. Waiting around for our governments to find solutions such as a New World Order, or organizations like The Venus Project to finally develop a test city to prove an RBE can work, or for a movement like Zeitgeist or any other environmental activists to do more than just spread verbatim like a religious cult will only delay an possibility of evolving ourselves technologically or spiritually. Throughout history, trade and currency has brought us into the information age just in time to finally outgrow its purpose. The longer we continue to jeopardize our existence in this monetary system, the faster it will destroy us.

    The question is, are we already too late? Are there enough people in your community willing to step up and begin a transition into a new world? Current attempts to begin a movement into this area proves the majority of people are infected so badly by corruption, greed, lack of education, brainwashing and addiction of all kind that it may be impossible for many to ever consider concepts such as usership over ownership. For everyone else, the hardest concept to achieve in a resource based economy model is incentive.

    Lets start by creating traditional incentives through a monetary subscription service to cheaper goods and services, vip treatments, shared resources. With enough dedication, perseverance, and sacrifice by original community founders, members would follow, communities would grow, abundance would be achieved, technology and automation would prevail and eventually so would an RBE. Anyone who has read this post to the end should be at least captivated enough to challenge themselves with developing each item required to make this happen. Consider the following if you decide to take this challenge:

    What would be the supply/demand formulae for capital purchases?
    Is this a corporate entity/registered business and pay taxes, non-profit or non of the above?
    Who would create the website and would there be many? How would they be linked?
    How would we logistically be able to conveniently share goods and services?
    Can there be multiple local communities? Who would start/lead them?
    Is there a set of rules everyone needs to follow or is this just based on common sense/etiquette?
    How much money would need to be contributed to start and what would the subscription service be?
    Where does the money sit? In a trust? Bank? Coffee Jar? Who does the books?
    In terms of incentive for ongoing tasks with a limited number of members, is it all voluntary?
    The concepts of social media sites and e-commerce would require a major investment but from where?
    Could there be legal issues to deal with when it comes to theft of shared property, criminal offences?
    Can anyone with different intentions profit from the generosity of others? How is this prevented?
    How many people would be needed in a community to create sustainability and free subscriptions?
    I’m unemployed, how do I help?
    I have skills to offer but don’t know how.
    Who do I see for technical support or general questions?
    What would this local community society be called? How would each be named or identified?
    Identity theft is a major concern for many people so how would it be protected especially with money?
    Are there government, city regulations to consider?
    People can get into legal trouble with sharing intellectual property, how is this considered?
    If sharing services such as internet, who covers the bill? The community or an individual? Is this allowed?
    There could be a great deal of coordination involved in this, who takes control?
    Without a government, how is anything decided? Can something be voted out?
    What if this doesn’t work ,do I get my money back? What if people think this is a scam?
    This could be considered a movement, religion or cult in its own right, how is this avoided?
    When entrusting your money towards a service that does not guarantee a return, who would invest?
    A donation from a person or business usually requires a return on investment, is there one here?
    How is a code of sustainability and environmental protection achieved?
    Is there concern if this gets too big that government and corporations will step in?I
    I have limited time to invest as I’m very busy but want to help, what should I do?
    I have a mountain of consumer debt, a mortgage, kids, bad job, why would I do this?
    What kinds of shared resources would exist in a community and how would it be shared exactly?
    I don’t have money this month to pay my subscription, will I be cancelled? Alternatives?
    My family and friends do not support this, what should I do to help without getting ridiculed?
    I have a bunch of things I don’t use that I think others could, what do I do with it?
    Do you need certifications, associations or credits to perform certain tasks or offer specialized services?
    What happens if I work all day helping others and others do nothing? Where is the value in my time?
    If a doctor makes $300/hour and I make $15/hour in the current system, how is this reflected here?
    Do I quit my job and do this full time?
    How will this affect our children and their education?
    Where is the incentive?!!?!?
    In terms of abundance, where would it come from and how would it be maintained?
    Nothing like this exists elsewhere? Programs like Kickstarter allow you to back a new invention.
    I do not trust anyone with my money unless they are a registered bank or a service I know
    If I change my mind can I recover any money I donated or subscribed to? Money back guarantee?
    A subscription will dwindle with the more members acquired, would it be true for the reverse?
    How long would this realistically take to reach abundance, then an RBE?
    I think our current system works but needs tweaking.
    Why use money at all when endorsing the fundamentals of sustainability and an RBE?
    If money is the root cause of all our problems, why use it at all in a new system?
    Can we truly avoid a financial collapse? The markets seem healthy enough today.
    Humanity is untrustworthy mainly because we are a product of our environment, who do you trust?
    Issues of security, health and education may be compromised without proper infrastructure.
    Technology does nothing but cause more problems and headaches for everyone.
    Me and many people i know have psychological issues or mental instability, does this work here?
    How do you share a house, a car, a boat, debt?
    When a member joins, what proof is required regarding their actual identity. Is there screening done?
    What are the rules or is this a free for all?
    If I quit can I come back?
    What happens to someone voted off the community that wants back in?
    If a member is criminally charged within or outside the community are they dismissed?
    Is there a minimum and maximum membership requirement to start a community?
    Can you be a member of more than one community? How are members identified?
    What automations could be implemented right away and then later to help coordinate each faction?
    Could a community receive recognition and/or support from activist groups such as Zeitgeist or TVP?
    What constitutes, if any, non-representational acts against the community and how is it justified?
    As an open-sourced development, what measures are taken to implement a change in this new system?
    I want step by step instructions on how to become a member. What does this look like?
    I’m going to wait until an RBE is in effect but still want to keep an eye on this development
    I just want to spread the word but cannot afford the time or the money to join, how do I do that?
    What kind of education resources would be made available? Who is responsible for infringements?
    It seems like I would be living in two worlds so to speak. This may be too difficult for people.
    I’ve heard an RBE is a great idea but not obtainable so what makes this so different?
    I still don’t understand how money will be used in a sharing community and why.

    I expect to deliver many answers to these questions in later posts along with a lengthy guide to describing the architecture behind the fundamentals of transitioning to an RBE through local online communites and hope to spark more discussion on this topic.

    1. hello. found your thoughts very interesting. we talked about the resource based economy and your comments on our blog talk program friday the 25th. you can download the program at Bridges to Humanity, Bridges Programming. would like very much to communicate with you about the hrem, human renewable energy measure. think this might help the transition to RBS. do you Skype? best, susan caumont and jeff beller

      1. Hello Susan and Jeff,

        Thank you for considering my views on your show. I took some time tonight to listen as well as research HREM and I would enjoy discussing them via Skype or any other means just let me know when. In the meantime I’d like to share some thoughts about your interesting conversational points.

        I’m currently developing a thesis with technical schematics on an RBE transition which would include all forms of the earths resources, not just energy, as a factor in determining the value of goods and services shared amongst every participating member. As for why I believe we need to have money in the beginning stages, even though you may get to know that it is the root of all of our problems, we live in a monetary society which most people are familiar with and respect usually over more important their lives. This is a language barrier that even Jacque Fresco uses in many of his teachings to “bridge the gap” between nations. It is the lifeblood of our current society while our current state of technology and education thrive only because of our bartering systems. You cannot simply pull the plug too quickly with activist movements or you will risk losing everything we’ve worked so hard to achieve.

        Instead, consider using money that would otherwise be wasted for a retirement that will never happen, a very short and expensive getaway, take-out over bagged lunch at work everyday, investments in stocks or bonds that will continue to disappoint or even a ridiculously high priced educational facility aimed strictly at making themselves rich, to invest in a membership community focused primarily on helping sharing and producing enough goods and services for everyone, regardless or age, race, status, finances, gender, social background or who you know, or don’t know.

        Incentive is the hardest part in determining if an RBE could exist, which is why ideas such as HREM and similar monetary based value systems are considered. This is primarily due to the fact we are products of our environment with programmed perceptions into believing we must have a way of “measuring” our time and energy as a fair and ethical way of determining ones value. We have multiple economies that exist today and others that have vanished all because we placed a value on human life. If you haven’t already, please watch Paradise or Oblivion as there is a section half way through where Mr. Fresco explains his theory on incentive in a resource based economy which I believe sufficiently emphasizes that we do not need monetary exchange to motivate us or give us incentive to go to work everyday. We do not need to waste precious time and resources by making sure everyone is doing their fair share as we do today, especially when half of the worlds population can barely afford to eat let alone contribute to paying immortalized taxations or other injustices against humankind. If you were to give people free access to education, nutritious food, social guidance and help them find a purpose in their life, you would never find a more grateful and contributing human being on the planet. For those who refuse or cannot be helped and continue to waste their lives and be a drain on society, the numbers would be vastly different to the unemployed, welfare dependants of today and would have a better chance at realizing the benefits of what it truly means to be happy.

        I do believe HREM is a better economic model as it instils the very essence of sustainability, but unfortunately it is still a economic model based on scarcity that would eventually become unnecessary once an abundance of energy is developed. Accumulation of wealth will continue to promote a price tag on energy even though there is abundance, as history will repeat itself as it has time and again in every monetary based society. Planned obsolescence, implied scarcity, power, greed and corruption will still exist and therefore human suffering will never end.

  4. Interesting article, agree on your view! Current system is based on infinite resources, once exhausted we are gone. Look at the amount of wastage we produce every single minute.

  5. I phoned up the peugeo dealer to get an electric van, they make an eboxter for 65000 pound, how can they justifie that. It would take me 10 years to earn the money back. The little man always gettn shit on. Somethin needs to b done, just hope its not to late for us all

  6. the zeitgeist movement provides solutions for a planet where cooperation not competition form the basis for an empathetic civilization. Look up Ron Cookes book utopia yes we can which has a view that is based on the original pre revolutianary british socialist party of 1903 before it all got warped by deluded individuals and is so similar to a RBE.

  7. Thank you so so so much. Words cannot describe how much I agree with your opinion on today’s economy.
    The existence and simplicity of this article came at exactly the right time for me. Now the challenge is shifting peoples mindsets. I naturally walk into stores now, say bigger clothing stores, take in the disgusting mass amount of items, and think to myself: damn, we have produced enough to have everyone look good all the fucking time! I think we need to chill the fuck out before we continue producing and re-analyze how much we actually have/how much we actually don’t have left… One little hint of my thoughts which are 100% aligned with the Genius who created this article.

  8. I have been reading a lot of articles like this of late and I agree that the current system doesn’t work and the key reason is a lack of ongoing sustainability. Whether for resources or the monetary system itself.

    The problems as I see it are:

    1) How to get from there to somewhere better? (Like RBE perhaps). The obvious way is a massive crash. Since there isn’t anything close to critical mass on implimenting a massive change and with the media in bed with corporations you can expect that things will continue on their downward spiral till it’s too late. Thats not a plan though, and just because there is a crash, theres no guarantee that people will suddenly be more receptive to this. Effectively you are jumping from A to C and assuming the crash will take care of B for you but I don’t think it will. People’s mind sets just see two collective types of political system, Left and Right. They’ll assume that this is the other and attack it (as you can see on this forum). The step for B needs to include education but it’s a little weak to assume that harsh conditions will just get you there, you need a plan. After all the Central banks can print money so they can keep things going a while and fiddle with other rules to keep hyperinflation at bay for a while then start a war to divert peoples attention…
    Remember too that after a crash, resources aren’t sitting around easily to just kick off an advanced technological society (aka the venus project or something)

    Which brings us to

    2) People born into an RBE society may well love it, but at the beginning people won’t be the kind of people that are ready for this, they love their ownership and will feel threatened by being told to live differently. In the reverse of the current social problem where kids today lacking in their grandparents experiences of war and hard times tend not to follow their advice, the new system requires people to opt-in.

    3) How do you handle the bad times? It’s great to look at a wonderful new world where everything is peachy but that is the mistake made by the Euro. It handled good times fine but when economies started to slide it locked countries into a nightmare. RBE is not the Euro I know, but hard times will always come, from the screwed up weather perhaps? or just something unseen caused by some other imperfection. My point is, while “Scarcity” is created by capitalism for profit reasons, it doesn’t mean “no capitalism = no scarcity”. If things get bad, competition for resources may return and if it turns out that certain people have more access due to their expertice or whatever then you start down the slipery slope to a divided society. If the people still remember the days of todays society you can expect black markets and other currencies. Prisons have no money or ownership in theory and all is provided but people trade with cigarettes etc when they want things that have become scarce.

    I think what would help a cause like this is for it to be tried on a ‘small’ scale, something isolated like Iceland perhaps (sorry to arbitrarily volenteer people 🙂 ) as whatever happens I’m sure the situation will need to be tweaked as experience shows flaws in the system as this certainly isn’t ready for a global rollout right away.

    I’m not writing this to be negative but just to hopefully direct creative energies to what I see is gaps.

    1. Thank you Paul. It might seem we are far from any kind of transitioning. But still, if you start to pick up on things happening around the world, a lot more is happening than you know. Even I was surprised when I found out the UN (yes, the United Nations!) on their RIO +20 site ‘The Future We Want’ invite people to share their visions and solutions for a positive future, and one of the solutions are actually Resource Based Economy! On the UN site! Check it out:

      1. I think you’ll find that the UN wants fixes to the current system’s problem rather than a new system. Most of the established organisations can barely agree on whether peak oil exists or not so they aren’t going to make a realistic changes in time.
        The current mainstream economic model thinks resources are infinite and just a function of demand, and that debt is fine as it means there has been investment. Austrian economics is still considered fringe even though their debt inclusive models easily predicted the sub prime crisis.
        Ben Bernanke isn’t an idiot but that doesn’t mean he’s doing things for the common good and the people who put him there are the same ones that influence politics everywhere with money. Look at whats happening to Canada.
        No, I have little faith that well established groups will be ready to offer a solution on time.
        I agree that we are close to a transition, the global economies are close to collapes! As a recent escapee of the finance industy I’ve seen it from the inside. buy some popcorn and read zerohedge for a few weeks and you’ll see how close we are to the end.
        I just don’t see how people learn from the collapse to follow a good path for our race instead of being sucked into something much worse. “desperate times call for desparate measures” some will say and peoples rights and freedoms could vanish entirely.

        (I am not American, nor do I live in the US (currently JP) , but I have worked in multinational companies most of my life and I worry for my children… owning gold won’t be enough I’m afraid)

  9. I cant believe some of the comments people leave, trying to disprove this theroy.. there isnt a better way, yet they will still go on living supporting all the bullshit. I wish the rest of the world would open their eyes. soo FUCK you people that dont want free shit lmao no but in reality people need to see that we all are livng in a society thats just pure bullshit. relgion, politics, and war. all of it pretty much ties into one pure shithole. RBE is our way out.

  10. I think this article is a bit oversimplified. There is no malice required for the current monetary system to do damage. Not that there isn’t plenty of malice, thoughtlessness, incompetence, and corruption.

    I think you may mean that requirement of a means of exchange makes malice, thoughtlessness, incompetence, and corruption a great deal more likely.

    Fundamentally, the monetary system does not produce enough of what we want and that is reason enough to find another way.

  11. Can you say Communism? That word is derived from community, sharing everything, not owning anything. Worked out well for Russia huh?

    1. Ok Vann, you’re right, it won’t work.



      Thank you Vann (hey! that means ‘water’ in Norwegian, did you know that!? Cool, huh? 🙂 for enlightening us all and leading us back to the RIGHT PATH. THANK YOU! THANK YOU! Without your brilliant arguments and exquisite reasoning we would have wasted a lot of time. I can’t thank you enough. Now I can continue driving my gas guzzling car, wear Nike and buy extremely cheap sand blown jeans (that I know workers in Bangladesh gets lung cancer from producing) with good conscience! Thank you!


      1. I wonder if Vann ever figured out that Russia was never Communist, that they declared themselves to be Socialist, even though the monetary system they used was actually State Capitalism.

        I wonder if he ever realized that Russia never really had a system of ‘sharing everything’, but instead simply tried switching between systems where 1) royal families passed down their property from first-born male to first-born male, 2) the government took property from the royal families and redistributed it to the government, 3) the government chose specific ‘friends’ to redistribute property to, and 4) attempted to let an already screwed up market determine who should own that property.

        I wonder if he ever figured out that an RBE isn’t Communism, Socialism, Capitalism, or any other money-based economic system in which the only people allowed to have resources are those who are wealthy enough to afford them, but is actually a system that no longer uses money at all and is built on people’s need for resources.

        Funny thing … before people invented money, resources were shared within tribes and clans according to who needed those resources and it worked out just fine. The only major issue was in sharing with other tribes, but if we were to finally recognize the entire human species as a big inclusive tribe, or better yet, all life as a big inclusive tribe, there wouldn’t be any other tribe to fight with. It’s time to stop thinking of ‘us vs. them’ and start realizing it’s just ‘us’.

  12. Interesting article, you may enjoy this one on the abstraction.
    Money is nothing more than a term which represents an abstract form of exchange of labour for purchasing power. This article will not investigate interest, loans, debt or the creation of money.
    For in reality money could be gold, silver, match sticks or pine nuts. Here we will concentrate on the direct result of defining a value to labour to use in exchange for purchasing power.

    1. Thank you. A very good addition to the above article. I recommend everyone reading this one too, and watch the videos.

  13. “…while the bank obviously doesn’t have any security for the money themselves, other than the ‘fresh air’ they were made of in the first place.”

    Wrong. Their assets are the loans they have made to other people. Fractional reserve banking allows people to spend based on the amount of assets in existence, not the amount of physical dollars in existence.

    1. ‘The assets are the loans they have made to other people’…?

      And what are the loans based on in the first place then, if I might ask? You have to start somewhere, you know, with something, unless you are a trickster. What you’re basically saying is that the bank have fooled some people into taking some loans based on nothing, and now, since they have got some people in their net, they use those people as ‘assets’ in giving out more loans to other schmucks.

      I can’t see how this can make anything any better.

  14. Well, it’s that time of year again. The majority of people in the west define themselves as Christian, and because of this we still celebrate Christmas. I’m not Christian, but the only issue I have with the holiday is when people try to shove the religious aspect down my throat. But the giving of gifts? Some may expect a complaint from me, but in all likelihood, what I give them will be topped by a bow.

    Oddly enough, it’s this holiday of consumption that does give people a glimpse into the mindset of an RBE based society–sweet irony. Most presents tend to be bought, and are therefore a product of our current monetary systems, though some gifts are made by the gift giver, and are more RBE in nature than otherwise.

    The most beautiful part of this season is what happens on Christmas morning. Gifts which were bought were not bought for the sake of ownership or possession. All gifts that are given are given with similar intent…instead of owning what we purchased or made, we instead give the present to someone else, not trading, but truly giving.

    And isn’t an RBE more than just a little like having the best part of this season all day, everyday, instead of just one morning every year? For those who may still be against the idea of a resource based economy, I have to ask, do you hate Christmas morning as much as you loathe an RBE?

    Isn’t it interesting that so many people are so willing to give one morning a year, but baulk at the suggestion that we give with the same intent 100% of the time?

    (Good to see the site is back up!)

    1. Yes, in my eyes we ‘have RBE’ already. Trading is also a form of giving, except we demand something (usually money) in return directly from the one we give to. And of course we are forced to trade today and make a profit, so… In RBE, we would know that giving back directly to the giver is not necessary, since one have chances to give all the time, as well as get. Sure, give back to the giver if wanted, just don’t feel obliged.

      1. I can’t say that we are quite there yet.

        I see the world as containing pockets of RBE, each of which is only there for a relatively short period of time. Overall, we are still very much based on a monetary system.

        On a side note, I came across an interesting book you may like. It’s ‘A Discourse Upon the Origin and the Foundation Of The Inequality Among Mankind’ by Jean-Jacques Rousseau. It’s public domain, so there’s likely to be a copy a Project Gutenberg. In any case, his description of early humans and human instincts made me think of your description of an RBE.

    1. Don’t you think it is? Thalidomide was a drug used by pregnant women in the 50s. The drug caused a lot of deformities in the newborn babies, who’s mothers used the drug. Any drug released on the marked is released because of the need for profit. Humans had existed for thousands of years well without that drug. So, yes, the deformities in these newly borns were caused by the monetary system. Other deformities can be caused by other drugs and pollution, which again are the products of the monetary systems never ending need for profit, thus disregarding environmental effects.

      That suicide is a product of the monetary system should be pretty self evident. There are lot’s of business men killing them selves because of loss and bankruptcy. The monetary system also produces values like skinniness in women and other distorted human images making people loose self esteem to the point of suicide. There are several other ways the monetary system contributes to suicide. These are only a couple examples.

  15. this is an ideal thinking and i see this system is 100% practicable. also, resources can be saved to future generations. this system of resource based economy is the best suited to today’s world.

    i really welcome this type of system without hesitation. This is the way forward to prosperity.

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