New Money for a New World

by Bernard Lietaer

  Trust, pride, contentment, quality of life, and the values of a people are not easily measured from a strictly conventional perspective. These phenomena, which permeate qualitatively different dimensions, do not lend themselves well to quantifiable statistics, linear logic, or sound bites. As a result, the possible implications inherent in Balinese archetypal integration are often overlooked. As we have seen, there is a clear connection between the honoring of the Divine feminine, dual-currency systems, and a more egalitarian society.

  The Balinese reaction to recent tragedies offers some comparative sense of how a different perspective and archetypal integration impact upon a culture.

  BALI’S “9/11”

  Bali became world news after the terrorist bomb attack in the town of Kuta on the night of October 12, 2002, in which more than 180 people were killed. Bali’s “9/11” occurred exactly one year, one month, and one day after the attack on the World Trade Center in New York. Though the terrorist attack itself was widely covered in the global media, the Balinese reaction to this horror was not given much notice.

  Two reports follow. The first is by the police in the days immediately after the bombing:

  Lt. Col. I Made Murda of the Bali police told us that, although hundreds of shops had their windows blown out by the blast, not one single looting has been reported. Down in Legian there are all these shops without windows and doors, all their wares there for the taking, but nobody has.

  There were also fears that there could be an instant reaction against the Muslim population of Bali, but no such thing has happened. What has happened is that there have been peace vigils and prayer meetings all over the island, and Christians, Muslims, locals and foreigners working hand in hand in the relief effort.480

  The second report is from the Parum Samigita, the Think Tank for the Banjars located at the ground zero area where the blast occurred (Kuta, Legian and Seminyak). Their spokesperson, Asana Viebeke, delivered the following speech in English on Friday, October 25, 2002:

  Now We Move Forward!

  We Balinese have an essential concept of balance. It’s the Tri Hita Karan, the concept of triple harmonious balance. The balance between god and humanity; humanity with itself; and humanity with the environment. This places us all in a universe of common understanding.

  Who did this? This is not such an important question for us to discuss. Why this happened—maybe that is more worthy of thought. What can we do to create beauty from this tragedy and come to an understanding where nobody feels the need to make such a statement again? That is important. That is the basis from which we can embrace everyone as a brother, everyone as a sister.

  It is a period of uncertainty, a period of change. It is also an opportunity for us to move together into a better future—a future where we embrace all of humanity, in the knowledge that we all look and smell the same when we are burnt.

  The past is not significant. It is the future that is important. This is the time to bring our values, our empathy, to society and the world at large. To care. To love…

  Why seek retribution from people who are acting as they see fit? These people are misguided from our point of view. Obviously, from theirs, they feel justified and angry enough to make such a brutal statement.

  We would like to send a message to the world: embrace this misunderstanding between our brothers and let’s seek a peaceful answer to the problems that bring us to such tragedy. We embrace all the beliefs, hopes and dreams of all the people in the world with love.

  Do not bring malice to our world. What has happened has happened. Stop talking about the theories of who did this, and why. It does not serve the spirit of our people. Words of hate will not rebuild our shops and houses. They will not heal damaged skin. They will not bring back our dead. Help us to create beauty out of this tragedy.

  Everybody in the world is of one principal brotherhood. Tat Tvam Asi—‘You are me, and I am you.’ These are the concepts by which we, as Balinese, live our lives.

  If we hate our brothers and sisters we are lost in Kali Yuga (the Dark Age). If we can love all of our brothers and sisters, we have already begun to move into Kertha Yuga. We have already won ‘The War Against Terrorism.’

  Thank you for all your compassion and love.

  Asana L. Viebeke

  Kuta Desa Adat481

  In October 2005, another wave of terrorist attacks took place in Bali. The response was the same as with the first bombing. Balinese culture, its dynamic balance of yin and yang, its archetypal integration, its commitment to peaceful resolutions, and recognition of the sacred in everything in their world, leaves this culture better prepared than most to deal with such events.482

  There are, however, signs of change taking place. The nature of this shift and the likely reasons behind it merit our attention.

  RECENT CHANGES

  On almost any given morning or late afternoon, the main roads of Bali today fill with traffic. Increasing numbers of Balinese are working in manufacturing plants, import-export firms, hotels, new fast-food chains, malls, and shops that cater to tourists. Street vendors, taxi cab drivers, and massage therapists solicit passersby taking in the sights of Ubud, Kuta, and Sanur.

  Balinese culture certainly endures. Religious icons and offerings are quite evident still, as are traditional processions and festivals of one kind or another. But many of the familiar icons of globalization are now commonplace as well and clash more than blend with time-honored customs. The assertion made two decades ago that, “Tourism is for Bali, not Bali for tourism,” begs review. A more complex reality is emerging.

  Informal interviews with several dozen Balinese revealed that some ill-defined shift is occurring. Television, tourism, and globalization are often cited as likely agents of added economic pressures and cultural change. But, most Balinese are unaware of the impact that the supression of the dual-currency system has had on their culture. Fortunately, a few Balinese nevertheless do very much appreciate the impact and importance of a robust dual-currency system. This includes Prince Tjokorda Raka Kerthyasa, head of the Bali Heritage Foundation, who is today working to reinstate the Uang Kepeng.483

  A particular set of cultural values and traits arose simultaneously in Dynastic Egypt, the Central Middle Ages, and Bali, and included integration of Great Mother archetype and a dual-currency system. Moreover, a similar set of challenges that included changes to the monetary paradigm and repression of yin values coincided with the fall of Dynastic Egypt and the Central Middle Ages and is currently bringing pressures on the Balinese.

  In concluding, we wish it understood that our review of past ages and Bali is not intended as a recommendation of any one particular way of life, constellation of values, beliefs, or means of worship. Furthermore, the specific measures and directions taken by each of these mostly homogeneous, agrarian-based societies are not necessarily applicable to today’s multicultural, complex, global economy.

  The relevance of these civilizations to ours today is the greater range of options and possibilities that become available by means of integration of a fuller spectrum of archetypal values and by availing ourselves of the greater potential of money. Given the many distinct advantages we enjoy today in comparison to virtually any other known period of history, including that of a greater understanding than ever before of money, it is reasonable to expect that we can achieve the best of what these former ages were able to achieve, and far more still.

  CLOSING THOUGHTS

  The intricate and colorful fabric of Balinese culture bears homage to the often-neglected yin-aspects of society. These are the invariably under-financed yet vitally critical areas of the arts, community-building, and family life. As a direct consequence of a deficit of economic options, these major contributors to a society’s wellbeing are often found to be struggling and moribund among vast swaths of populations around the world.

  Bali has had a long history of a dual-currency monetary system, which has afforded this rich Hindu culture a capacity to wit
hstand the onslaught of foreign invasion right up to the 1970s, when one of their yin currencies, the Uang Kepeng, was made illegal. Over the past four decades a slow erosion of core Balinese culture and values has taken place. Phenomena such as mass media, massive tourism, and globalization are often cited as the cause of this decline. The attrition of the balanced yin- yang monetary structure, however, contributes to this process.

  This monetary equilibrium can be readdressed and, in the case of Bali, is currently under reconstruction, armed with a clear understanding of the functional dynamics of money and its deep psychological and archetypical underpinnings.

  CHAPTER TWENTY NINE - Invitation To A New World

  Insanity: doing the same thing over and over again

  and expecting different results.

  ~ALBERT EINSTEIN

  In 1901, Georg Simmel observed in his book Philosophy of Money that, “The debate about the future of money is not about inflation or defla tion, fixed or flexible exchange rates, gold or paper standards; it is about the kind of society in which money is to operate.” In these final pages, we offer some parting thoughts on monetary innovations and the kind of society we believe to be possible.

  We will close with an invitation to you, the reader, to join us online, where our exploration of money and societal transformation continues.

  WHAT IS TRULY POSSIBLE

  Our age is blessed with an epic opportunity. There now exists the real possibility of not only addressing many of our most vital concerns, but ushering in an unparalleled age that can significantly enhance conditions for all of humanity and the living systems of our precious planet. To this end, we reaffirm some of the claims made in this book.

  We can provide meaningful work for all. We can deal far more effectively and proactively with the costly booms and busts of the business cycle. We can ensure the conditions necessary for free enterprise and economic development to flourish, while simultaneously protecting the collective long-term interests of society and the environment. We can bring about a world in which social concerns such as the upbringing and education of our children and quality care for our elders are firmly addressed, and where the diversity and sanctity of all life and the life-affirming aspects of what it is to be fully human are supported and secured. We can achieve all this, and more.

  These prospects are not only possible but achievable within the span of a single generation. Furthermore, this transformation can be realized without conflict or hardship, and without the need to raise taxes, redistribute wealth, or seek assistance from the federal government. The technologies, skills, and means required for such a shift are known and are already being utilized in successful pilot programs around the world, and are ready for widespread deployment.

  We reaffirm that these and other claims made throughout this work are not conjecture, but are instead supported by an ever-growing body of scholarship and by real-world experience, past and present. Curitiba, Time Dollars, LETS, social currencies such as the Fureai Kippu and Saber, commercial currencies such as the WIR, C3, and the Terra TRC; hard-earned lessons from the Great Depression; millennia of history, the notable accomplishments of the Central Middle Ages, and so much more…all offer testimony to what is possible, what is truly achievable through a greater understanding and utilization of money.

  Humanity has the knowledge and the means to bring about the greatest transformation in all of known history. What we do not have is the luxury of unlimited time.

  A TIME TO ACT

  Many of the arguments offered in this work were, as previously noted, first presented more than a decade ago in The Future of Money. Looking back, 1999 was perhaps an inconvenient year to make a case for the urgent review and amendment of our centuries-old monopoly of national currencies. It will be recalled that, despite concerns over Y2K, a general mood of optimism characterized the dawn of a new millenium. The U.S. economy then boasted 4.5 percent unemployment and an inflation rate of 2.1 percent; gasoline pump prices averaged $1.17 per gallon, Internet companies enjoyed unprecedented returns, as the Dow-Jones soared to 11,750. Some economists of note, so buoyed by conditions and future prospects, entertained the possibility that even the age-old business cycle had finally been tamed.

  Optimism at the turn of the millenium spilled over to other areas, including confidence in our ability to deal with looming issues such as unfunded liabilities and the environment. The baby-boomer generation was, after all, then still more than a decade away from retirement. And though there was already a clear consensus among the majority of the world’s leading scientists regarding greenhouse gases and climate change, debate continued, and the twenty years estimated as necessary to birth a post-carbon economy seemed a long time off given the context of our short-term culture.

  In essence, there were many apparent indicators in 1999 to counter the call for monetary reform.

  But the 999th year of the second millennium and the first decade of this third millennium came and went. And not one of the megatrends cited in this book or its predecessor were addressed. Each of our vital issues and the state of the world has instead only gotten worse.

  Baby boomers, who will live longer than previous generations, are now beginning to retire. Yet, the funds required to match their longevity and ensure their golden years are lacking. These and other social issues have been made more problematic still by the global recession and overburdened public coffers. Though the recession is at least officially considered at end, its root causes have not been addressed. The supposed recovery of 2010 has come and gone as well, and 2011 saw continued economic instability, austerity measures, and ongoing hardships for the small and medium-sized enterprises that comprise the bulk of all private jobs. Official unemployment figures in the United States and elsewhere remain stubbornly fixed at more than double the levels of a decade ago, with unofficial figures much higher still. The concentration of wealth continues to increas as more and more middle-class citizens face uncertain economic futures. The private sector remains locked in a singular pursuit of short-term objectives, while traditional pre-recession neoliberal economic policies and unprecedented neo-Keynesian stimulus packages have each demonstrated their inadequacies. And privatization, the supposed “solution” to allow governments to meet their more-immediate fiscal concerns, will deprive our economies of the resilience needed to ensure future stability and development. More ominous still, the first decade of the new millennium is now officially established as the warmest on record. With precious little of note having been achieved in this regard to date, and with ten of the twenty years estimated to bring about a post-carbon economy now behind us, we must seriously consider the options left us, and fast.

  BACK TO MONEY

  We reiterate that our ineffectiveness in the face of contemporary global challenges is not an expression of the intractability of climate change, job losses, or other pressing concerns. The persistence of such issues is instead related to our continued inability to identify and address the systemic root causes of these concerns and, more specifically, to grasp their link to our industrial-age monetary paradigm.

  No matter how sincere the desire or how determined our efforts, we simply cannot and must not expect our difficulties to disappear until and unless we understand the functional dynamics of the current monetary system and enact monetary amendments. To continue to think and act otherwise while expecting revitalization to somehow magically take hold, is truly insane.

  Money, Currency, and Great Change

  In contemplating what kind of world is possible, we are reminded of the etymological roots of the words “money” and “currency.” The term money, as noted, derives from Juno Moneta and is linked to a constellation of perennial values vital to humanity and society. The term currency is linked to the “condition of flowing.” (from Latin, currens, prp. of currere “to run).” As civilizations such as medieval Western Europe and Dynastic Egypt reveal, some currencies are needed to function like a healthy circulatory system; to flow and nurture each and
every member of society to the betterment of all. The restricted use of any one type of money, no matter how well designed, impedes the full expression of who we are and what is truly possible.

  We are in the midst of Great Change. It can either take the form of a breakdown on an unprecedented scale, or a significant breakthrough for civilization. A positive shift will, however, not just happen on its own accord. The kind of transformation that enhances life and allows us to overcome many present-day concerns will require review and amendment of those very same systems that, notwithstanding their contributions to the many remarkable accomplishments of our time, also fueled the myriad crises that are now converging upon us. This is particularly true of the key information replicator of the Industrial Age—our centuries-old monopoly of national currencies.

  The time for the democratization of money is now. With so much to gain and so little to lose, why delay any longer?