Money for a World that Works For All

A defining issue of our time is not merely who controls the creation of money; it is for whose benefit they create it. When money is created by private banks for the primary benefit of the few, it concentrates wealth and power at the top. When it is created by and for communities, it circulates to meet shared needs and strengthens the well-being of all.

Most people assume that private banks are limited to loaning investor deposits. That was the old system we have abandoned and to which we should now return. Currently, most of the world’s official money comes into existence when private banks issue loans. This is money they create from nothing and loan at interest—including to governments that could be issuing it themselves interest free.

We all know that printing fake money is a crime. We call it counterfeiting. It is illegal because it creates false claims on real wealth. Counterfeit money dilutes the value of genuine money, destabilizes economies, and lets the counterfeiter get something for nothing—at everyone else’s expense.

But what if some counterfeiting type activities aren’t legally defined as counterfeiting, yet have the same effect? That’s exactly what’s happening with many of the financial “products” created and traded by the big banks, hedge funds, and cryptocurrency platforms that dominate our financial system.

One of the most notorious examples is the derivative. Some derivatives serve a legitimate purpose: they act as a form of insurance, locking in the future price of something the seller actually owns. For instance, a farmer may want to secure a price for her corn harvest with a food company that needs predictable costs. They use a futures contract to agree on a fixed price for the corn delivery on a set date. That contract reduces uncertainty for both the farmer and the food company. In this case the derivative serves a real economic purpose.

But many derivatives are purely speculative—little more than high-stakes bets on future prices made by people with no stake in the underlying activity. A hedge fund that neither produces nor buys oil might bet on whether oil prices will rise or fall next month. If the bet pays off, the fund makes money; if it doesn’t, it loses.

By late 2024, the total notional value of outstanding derivative contracts exceeded $700 trillion—more than ten times the size of the entire global economy. Most of these contracts cancel each other out, but their sheer volume distorts markets, inflates asset prices, and concentrates wealth. When things go wrong, ordinary people pay the price.

The 2008 financial crash was triggered when a vast web of risky derivatives tied to mortgage loans collapsed. The fake “wealth” these contracts created evaporated, bringing down the global economy. Millions lost jobs, homes, and savings. Governments bailed out big banks with public money because they were deemed “too big to fail,” while working families were left to pick up the pieces.

Rather than shutting down this financial casino, our public policy has allowed it to grow. Today’s derivatives market remains a legalized way to bet on price movements—of corn, housing, carbon credits, or even weather data. These bets build no homes, create no jobs, and produce nothing of real value. They simply inflate the appearance of wealth on paper.

Cryptocurrencies such as Bitcoin, Ethereum, and Tether are another way private actors create money-like assets out of thin air. Some are “mined,” using enormous amounts of electricity; others are pre-issued and sold to investors. Unlike government-issued currencies, cryptocurrencies are not backed by any real asset or public guarantee. Their price is driven purely by speculation. People buy because they hope someone else will pay more later. The total market value of all cryptocurrencies currently fluctuates around $4 trillion, a number that can swing wildly, with most held by a tiny group of early investors.

Crypto is often described as “financial innovation.” Yet it functions much like counterfeiting. It creates digital tokens disconnected from real economic production, enriches those who control the system, and leaves latecomers holding the bag when prices crash.

Even though derivatives and cryptocurrencies don’t meet the legal definition of counterfeit money, they have the same harmful effects. They create fake wealth—enormous sums not tied to the production of real goods or services. They shift risk to the public. When markets collapse, governments rescue the system while ordinary people lose.

This legalized counterfeiting machine mainly drives wealth upward to serve the already wealthy. The richest 1 percent of the world’s population now own nearly half of all global wealth, while the bottom half own less than 1 percent.

According to Oxfam International, since 2020 the world’s richest 1 percent captured nearly two-thirds of all newly created wealth—much of it from rising asset prices inflated by financial speculation. Meanwhile, real wages for most people providing useful labor have stagnated or fallen.

Developing countries are especially vulnerable: sudden shifts in global capital can devastate their currencies and plunge them into debt crises, pushing millions into deeper poverty. Crypto adds new risks: in countries like El Salvador, where Bitcoin was declared legal tender, the experiment has worsened public debt and financial instability while benefiting outside speculators.

If we want a fair and stable economy, we must dismantle this system. Bets that serve no public purpose should be taxed or banned. Money creation must be brought under democratic control and exercised transparently in the public interest.

A powerful first step would be to transform the U.S. Federal Reserve from a private bankers’ club into a fully public institution accountable to the people it serves. Though often described as a government agency, the Fed is effectively governed by and for private banks. It channels public money into financial markets, where it inflates asset prices and enriches those who already hold wealth—while doing little to support productive Main Street enterprise.

We are long overdue on reconstituting the Federal Reserve as a transparent public trust, with a clear legal mandate to align money creation with the long-term well-being of people, community, and planet. Its governing board should represent public interests rather than Wall Street banks. Its policies should direct newly created money toward rebuilding essential infrastructure, investing in renewable energy, and supporting small enterprises and cooperatives that create real value in local communities.

Newly issued money is best directed toward creating jobs to meet essential needs for people, infrastructure, and environmental restoration. This reformed Federal Reserve would become an example for the world—a model of how a national currency system can serve the common good rather than private speculation. It would demonstrate that the management of money, like potable water, is a public utility, that must operate within the boundaries of ecological sustainability and shared prosperity.

So long as we leave money creation in the hands of self-serving private bankers, we will remain captive to an economy devoted to profiting from inequality, environmental destruction, and war. To build a world that works for all, we must reclaim the power to create money as a public, moral, and ecological responsibility—anchored in community, transparency, and service to life.

This isn’t just an economic problem. It is a moral one. The question is not only who creates money, but for what purpose—and in whose interest. Until we end legalized counterfeiting and reclaim money as a tool of shared well-being, wealth and power will continue to concentrate in ever fewer hands. These are vital steps in our transition to an Ecological Civilization.

A just and sustainable future depends on transforming money from a weapon of extraction to a living system of exchange that serves life. Only then can we realize the promise of a world that works for all people and the living Earth.

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Noteworthy…

“Why Monetary Reform Is Necessary To a Viable Human Future”  
On September 19, David delivered this presentation to the International American Monetary Institute Conference.

“Money can be a highly useful tool, when used appropriately. But our current human dependence on money gives enormous power to those who currently create it. Determine who gets it…. And who does not.”

To watch his presentation and the conversation that followed, find it here…

“The Future of Humanity”

We’re pleased to share special (no paywall) access to David’s latest presentation for Alternative Radio (AR) with our readers.

To listen, click here for the MP3…
and click here to read and/or download the PDF…

The presentation will also be re-broadcast on affiliate stations in the near future. Check your local public station for the schedule.

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