The governing Economic System is based on a corrupt and fraudulent foundation that is driving our civilization to its own annihilation. Those with knowledge and understanding are well aware of impending ecological and environmental disaster and helplessness of the governing powers to control it. The productive capacity far exceeds available purchasing power and waste generation far exceeds the waste handling capacity of our environment. Foundational causes are the use of undefined and consistently falling quantity of wealth as the yardstick of measurement of wealth/value/currency, its use as a unit of account and the use of double-entrybookkeeping to create money to lend on interest.
Common sense dictates that for measurement to be correct and reliable unit of measurement must be a precisely defined quantity of what it measures and a unit of account must also satisfy this condition. This is also mandated by science and technology, reason and logic.
Error in wealth measurement leads to prevalence of unjust and inefficient prices leading to injustice in every exchange; market fails to efficiently employ the resources and efficiently distribute the return to various factors of production. The use of freely floating fiat money as a unit of account leads to wrong calculation of dues, profits and losses, etc. These led to massive fraud and corruption, injustice and exploitation.
Massive increase in money supply by double-entrybookkeeping system combined with nominal accounting results in burden of interest being transferred to depletion of saving of the commoners, leading to massive poverty and deprivation. Thusunable to perform basic functions,the system of economy fails to maintain essential economic balances such as between productive capacity and purchasing power and with powerful countries trying to derive maximum benefit from available purchasing power, poor and developing countries suffer worst. These lead to massive inefficiency and waste and it is also the basic cause of ecological and environmental destruction.
Correct measurement and just accounting are foundational stones of justice, welfare and peace. Much of what man does is to address one’s economic issues and just measurement of wealth and right accounting of wealth are thus the most important problems to be addressed.
Currency being a measure of value must be defined quantity of wealth and the unit of account must also satisfy this condition. In the case of prevailing freely floating fiat money accounting in real terms satisfies this condition. No significant improvement or resolution of problems is possible unless the issue is honestly resolved.