Evolving Finance, Money and Markets
By Hazel Henderson
Today’s global casino is now experiencing yet another step change, as central banks shift their focus from austerity and debt to stimulus to cope with pandemics and climate crises and fending off Facebook‘s competitive “Libra” and other cryptos. As the rules change in finance and money, they are also changing in markets, as they adapt to ecological limits, consumer pressures, and shareholders’ changing values. Key public intellectuals have emerged who are facing down all the old verities in textbook economics and over-averaged macroeconomic statistics and models, including GDP, still driving societies into unsustainable paths…. Some of today’s most courageous intellectuals are also watchdogs, as for example, financial expert Karen Petrou in “Engines of Inequality: The Fed and the Future of Wealth in America” …Let’s first look at Karen Petrou’s case against the Federal Reserve in the USA, taking us through the politics of money-creation and credit allocation, which we covered in our TV Special “The Money Fix“. She shows how well-intentioned regulations and Fed policies after the meltdown of 2008 exacerbated inequality. Petrou’s keen expertise critically assesses the Fed’s long underperformance and many failures to exercise its mandate. She faults its blind acceptance of obsolete, over-aggregated economic statistics and provides new clarity on these models. Petrou takes us through the history and purpose of the Fed since its founding in 1913. She shows how its dominance by private interests and banks, its policy mistakes exacerbated the agonies of so many citizens during the Great Depression and how the Fed de-railed many of the initiatives of FDR’s New Deal. Fast forward, Petrou offers a look at the future of cryptocurrencies, the power grabs by social media monopolies, including Facebook’s Libra global crypto, which challenges all central banks and sovereign fiat money. This book is a tour de force and required reading by policy-makers, academics, and concerned citizens in the USA and beyond….