Bail out the planet with central bank money creation – The Green Marshall Plan

‘For background, see: [ http://mollymep.org.uk/wp-content/uploads/Green-Money_ReclaimingQE_V.And… Victor Anderson] Green/EFA, EU Parliament report on Green QE, June 2015. Also see: [http://www.financeforthefuture.com/GreenQuEasing.pdf]

In 2008, literally *TRILLIONS* of dollars in various currencies were created by central banks to bail out “banksters”, failed corporations, even lawbreakers who were never punished (except in Iceland). If those who cause ecological destruction and loss of natural capital value for us all can be bailed out with large scale new money creation, then certainly central banks can help “bail out” the species, climate & biosphere they have done so much to compromise. The Marshall Plan rebuilt Europe after WWII with the equivalent of hundreds of billions of dollars worth of infrastructure spending, including newly created money. Today, we need a *Green* Marshall Plan for our planet.

Whereas: A) The right to create money belongs to the citizens, but has been “contracted out” to irresponsible entities that have participated in creating a vast ecological debt.

B) Money creation that helped caused the ecological debt must be used to help repay that debt. If not, then we have a moral hazard of money creation leaving a negative ecological footprint without thought to retribution for all species. If the money creation rights are more flexible and can be exploited to reverse ecological damage and restrict expansion of emissions, then we have a moral duty to use them for that immediately because we are at the tipping point of a runaway greenhouse effect.

C) According to academics including professor Mark Z. Jacobson, the technologies exist to cost competitively replace fossil fuels now, in 2016 [https://www.ted.com/speakers/mark_z_jacobson (TED talk)] Thus the moral obligation implement these proposed solutions immediately on a large scale. Green infrastructure paid by new money prevents resistance from those otherwise forced to pay for it.

D) With green infrastructure projects come new jobs, a larger tax base, savings from efficiency that will be put to use expanding the economy instead of expanding extraction of fossil fuels. In combination, these will grow the economy, increase the well being of citizens.

E) As a cause of inflation, efficiency-focused or “green” money creation is debatable. No claim that money creation in and of itself guarantees inflation is credible. Countries engaged in large scale quantitative easing (QE) have not experienced problem inflation. Nor have countries like South Korea that focused its 2008-9 stimulus on energy efficiency measures.

F) Better energy efficiency, reduced fuel use and reduced pollution abatement must reduce long term costs. That “reduces” inflation, as inflation is measured against a basket of actually used goods. If we require less fuel, and get more for less, then actual value received for money is increased. G) Created money creating genuine progress across whole societies reduces expenditures otherwise required for the same amount of genuine progress. Resulting cost reduction is a solid counter to a generic inflation argument against genuine progress money creation.

H) Ratified Green Party of Canada policy exists that Greens advocate the BoC return to a prominent role in creating money. That means, among other measures, creating *additional* money. I) The *risk-reward ratio” of reducing carbon vs inflation risk is in favour of reducing carbon. The ecological or natural capital of the biosphere, or indeed any ecosystem within it, is the root of all wealth.

J) Green MPs in England have asked the Bank of England to consider green QE. Mark Carney, the Bank’s governor has stated a scenario where that may happen. Greens in at least Canada, the UK, Australia, New Zealand, the USA, France, Germany, Italy, other EU nations are urging similar measures. G7 and G20 and BRICS countries are also updating their policies to respond to V-20 and COP21 concerns. Canadian Greens should be among this chorus.

Therefore: Green MPs and the GPC will advocate for BoC money creation to offer interest free (or sovereign interest level) loans and grants for green infrastructure and efficiency projects that also increase resilience. Such projects may include the creation of for profit crown corporations that build own and operate infrastructure and efficiency projects. Green MP’s and the GPC will advocate The Bank of International Settlements support all central banks under it’s structure engage in sovereign coordinated Green Marshall Plans. A royal commission will be established to determine the feasibility of creating such crown corporations in given fields of expertise and offer a plan for a virtually carbon free Canada. The royal commission would create specific objectives and operating procedures the green crown corporations. Grants to crown corporations will take preference over any grants to private interests. One example of a green project, which could be owned by a crown corporation: fast electric vehicle charging stations based on stored renewable energy as an incentive to shift to EVs.

 

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