Abstract: Financing the Future

Abstract

Financing the Future - Our Future Wealth of Nations

A mechanism that can change the world

Financing the future requires additional liquidity of approximately 5 Trill USD every year over the next 15-20 years globally, beyond the traditional mechanism of money redistributing along the given value chain. Crowding-in private sector financing, conventional public sector funding (taxes and fees) and philanthropic commitment will be not enough in scale and speed to accomplish this. The financial system has become, over the last 40 years more unstable (425 events), causing costs and damages of over 10% of the Gross Domestic Product per event and increasing public debt load globally. These limitations of the financial system thwart any endeavors in the technological and political field to make the word a better place, because the world community is too busy repairing, stabilizing, and refunding the system just to maintain a steady status quo or returning to business as usual.

There are three options: A modified monetary mandate of the Central Banks (CBDCs), private cryptocurrencies (f.ex.: Ripple, Skycoin, Etherium) or complementary community currencies (f.ex.: LETS, Barter, Regiomoney) would stabilize international financial markets, increase monetary regulatory efforts, reduce negative externalities, stabilize consumer pricing, increase social pareto-optimum, generate millions of additional jobs and stabilize democracy. This can be started within 6 months, has the potential to end i.e. poverty in less than a year and would have measurable and profound impact on our life, our society and our planet in less than 2 years.

Such a mechanism is the missing link beyond governance, technology, demography and behavioral changes. We need more, much more financialization, but in a more democratic and humanized fashion to increase wealth for the additional 2/3 of the global population and to protect the planet at the same time.