Jesus and Minas Coptic icon dating from 6th or 7th century

From Jesus to Christianity

An enigma

Understanding Jesus of Nazareth and Christianity requires understanding the time and place in which Jesus lived and Christianity emerged. But that may not be enough. Christianity is more enigmatic than Judaism and Islam. Jesus may have believed he was the Son of God and that he had eternal life. Muhammad and the Jewish prophets did not view themselves in this way. This universe could be a virtual reality created by an advanced humanoid civilisation. Therefore, we might exist for entertainment an it may not be an accident that the religions of the God of Abraham came to dominate the planet.

Jesus seemed to have believed that he had a special relationship with God that no other prophet ever had. He may have thought that he had eternal life and a bond with God from the beginning of Creation until the End Of Times. Jesus may have had his reasons for these remarkable beliefs for 2,000 years later he turned out to be the founder of a religion with 2.2 billion followers. Also 1.8 billion Muslims believe he will return. It is an enigma that remains to be explained, unless you assume that Jesus was delusional and that the spread of Christianity and Islam were just historical accidents.

Apart from an historical account, a plausible explanation for Jesus’ beliefs may be needed to understand Jesus as well as the spread of Christianity and Islam. The earliest extant sources of Christianity were written decades after the alleged death of Jesus. Early Christians depended on oral traditions and writings that do no longer exist. Oral recounting is notoriously inaccurate and there is evidence of redactions in the New Testament. And so scholars agree on very little about Jesus of Nazareth, except that he really existed and preached for a few years around 25 AD.

In search of the Jesus of history

The German scholar Hermann Samuel Reimarus realised there is a difference between what Jesus did and preached and what his followers came to believe about him. Around 1760 AD Reimarus was the first to investigate the historical Jesus. He claimed that Jesus could only be understood in the context of first-century Judaism and that Jesus was a typical Jewish apocalyptic prophet of his time.1 For instance, in Matthew Jesus claimed that he didn’t come to abolish the Jewish laws or the prophets:

Do not think that I have come to abolish the Law or the Prophets; I have not come to abolish them but to fulfil them. For truly I tell you, until heaven and earth disappear, not the smallest letter, not the least stroke of a pen, will by any means disappear from the Law until everything is accomplished.2

This statement from Jesus clearly differs from the teachings of Christianity. There are several other discrepancies. This raised questions for scholars to work on in the centuries that followed. They were in search of the historical Jesus and tried to deal with questions like who was Jesus and how can his teachings and the beliefs of early Christians be explained in the context of first-century Judaism?

Reimarus was influenced by the Deists who believed there is a Creator and that there should be a rational explanation for religion. The Creator has defined the laws of nature and therefore has no need for the supernatural. The Deists also claimed that the universal religion of the future should emerge from rational explanation rather than revelation. Revelation is without evidence and can never be credible to everyone.

Jesus and the early Christians were influenced by Jewish traditions like the Pharisees and the Sadducees but also by Greek culture and philosophy. Other religions already had concepts like virgin birth and sons of god. Scholars nowadays surmise that Christianity took over those concepts but it remains an mystery why Jesus seemed to have believed that he was God’s immortal son and why he was called the Bridegroom.

It also remains a mystery why Jesus was so respectful of women. Jewish culture in the first century was decidedly patriarchal. Some Jewish writers of Jesus’ time, such as Philo, taught that women should never leave the home except to go to the synagogue.3 Jesus spoke to women in public.4 He was also compassionate for women and respected their dignity, even when they were sinful.5 In doing so Jesus ignored traditional Jewish law. Plausible explanations for his conduct have yet to be found.

The missing link

The missing link in the research of the scholars is God. Science doesn’t assume anything about God and for good reason. But if this universe is created by an advanced humanoid civilisation for entertainment then leaving God out of the picture would be a serious flaw while researching the origin of religions. Perhaps God is a real person from this advanced civilisation who can use avatars to appear like an ordinary human to us.

Including God in the explanation can solve a few mysteries. Mary Magdalene may have been an avatar of God. She may have made Jesus believe that she was the reincarnation of Eve and he was the reincarnation of Adam. She may have told Jesus that Eve was not made out of Adam’s rib but that Adam was born as the first son of Eve. Jesus was son of God because Adam was and because he was Adam’s reincarnation. In this way Eve is Mother of all the living and Christians are born of God.

Who was Mary Magdalene?

Mary Magdalene has become a bit of a cult figure as there is a lot of mystery surrounding her. She may have been the most important person in Jesus’ life.

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This is an explanation that doesn’t require revelation. The technology to make virtual realities and the romantic desires of women in combination with the available evidence in the scriptures can make it appear plausible. There is evidence suggesting that Jesus was married to Mary Magdalene, even though it is never explicitly stated that he was.

The identity of God

The Gospels state that Jesus had a personal and intimate relationship with God. Scholars agree that the Gospels have been edited.

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The prophet Muhammad married his boss Khadijah. He remained her loyal servant, and perhaps in more than one way. Like Jesus, Muhammad may have been married to God.

Khadijah, mother of the believers

Khadijah bint Khuwaylid was a wealthy merchant and Muhammad’s employer. Muhammad was twenty-five and Khadijah was forty when she proposed to him. Their marriage was both happy and monogamous.

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According to the Jewish scriptures God ordered Abraham to grant the wishes of his wife Sarah. Hence, Sarah may have been an avatar of God. Even though historical evidence for their existence is lacking, several Jewish prophets may have been married to God.

Sarah, mother of the Jews

The will of God coincided with the wishes of Sarah several times. God summoned Hagar to return to her mistress Sarah and God told Abraham to send Hagar away when Sarah wanted this.

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The role of Paul

Paul of Tarsus turned Christianity from an obscure Jewish sect into a religion with a universal appeal. He modified Christianity so that it was not only meant for the Jews, but for everyone. To that aim he made several compromises, for instance that gentiles didn’t have to follow all the rules of the Jewish religion. This allowed Christianity to spread more easily but it made Paul a controversial figure with Jewish Christians. Over time the gentile Christians began to outnumber the Jews so that Paul’s views won out.

Paul and his followers may have tried to resolve the conflicts between existing fractions of Christians with a unifying theology. On the one hand they brought Christianity more in line with the Jewish theology by making God male and invisible. This might have prompted him to make Jesus the Bridegroom of the Church instead of the Bridegroom of God. By referring to the Jewish concept of God being married to Israel, and replacing Israel by the Church, Jesus may have become deified in this new theology. Jesus being married to God may also explain why Christians believe that God is love.

God is love

There is an explanation why Christians believe that God is love. Only, there may be something very troubling about this love.

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Paul may have turned Jesus into a god who sacrificed himself for his bride who in a sense was also his mother as he was believed to be the reincarnation of Adam and Mary Magdalene was believed to be the reincarnation of the Mother Goddess Eve.

Mother Goddess Eve

According to the Bible Eve was called ‘mother of all the living’ by Adam before they had any children. It is also odd that Eve was made out of the rib of Adam. Eve may have ben a Mother Goddess and Adam may have been Her son.

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Paul came from Tarsus where the mother goddess Cybele was worshipped. Her husband was also her son, a shepherd named Attis. Attis castrated himself as a sacrifice to her. Attis’ self-mutilation, death and resurrection represent the fruits of the earth which die in winter only to rise again in the spring. The parallels between Attis and Jesus, the Good Shepherd, may have inspired Paul to apply an Attis-like imagery to Jesus.

At the time the gospels were written most first-hand witnesses were gone and different stories were circulating. It may therefore have been possible for the Church Fathers to destroy or modify texts that didn’t fit in the new narrative. The Gospels do not suggest that the Bride Of Christ was the Church. It may not have been Paul who brought his up. Ephesians, the letter in which this idea is introduced, appears to have been written a decade after Paul’s death by one of his followers. The modifications in the gospels were probably done in several stages over several decades.

Gospel of John

The Gospel of John differs from the other gospels. For instance, it contains the phrase ‘born of God’, suggesting that God could be a Mother. Is is also the gospel in which Jesus calls his mother ‘woman’. That makes sense if the word ‘mother’ was reserved for God. This gospel also contains a few references to a Beloved Disciple. And the gospel suggests that there had been rumours that the Beloved Disciple was immortal.

Born of God

The phrase ‘born of God’ can be found in the Gospels and the letters of the Church Fathers. It is now believed to have a spiritual meaning but the origin may have been quite different. The God of Christianity could be a woman.

Read More

The Gospel of John is believed to have been written around 100 AD but it contains some historical accuracies not found in the other gospels that contradict this late date. Therefore this gospel might have been based on an earlier source written by a first-hand witness.1 Scholars believe the Gospel of John has been redacted three times.

Perhaps the role of Mary Magdalene has been changed from God into the Beloved Disciple in the first redaction. In a subsequent redaction the evidence of Mary Magdalene being the Beloved Disciple may have been removed. And a third redaction may have been needed to tie up some loose ends. The Gospel of John may have been part of an early distinct tradition in Christianity in which God was a Mother.

Featured image: Jesus and Minas Coptic icon dating from 6th or 7th century. Clio20 (Anonymous). Wikimedia Commons.

1. Jesus Christ: The Jesus of History, the Christ of Faith. J.R. Porter (1999). Duncan Baird Publishers
2. Matthew 5:17-18 [link]
3. Jesus’ Extraordinary Treatment of Women. Franciscan Media. [link]
4. Luke 7:11-17 [link]
5. Luke 7:36-50 [link], John 8:3-11 [link]

The only known photograph of Chief Seattle

Towards a spirit of connectedness

A world without hope?

What will the future look like? What direction should we take? There is so much wrong with our current way of living that it is hard to get proper handle on it. So what is wrong with us? Perhaps the answer can be found in a speech the native American Chief Seattle allegedly gave in 1854 when the United States government wanted to buy the land of his tribe. These are the first words of that speech.

How can you buy or sell the sky, the warmth of the land? The idea is strange to us. If we do not own the freshness of the air and the sparkle of the water, how can you buy them?

Every part of the Earth is sacred to my people. Every shining pine needle, every sandy shore, every mist in the dark woods, every clear and humming insect is holy in the memory and experience of my people.

Only Chief Seattle never spoke those words. It is fake history. This speech has been made up by a screenwriter in 1971. Still it strikes at the heart of the matter. Nothing is sacred any more. The pursuit of money destroys our values and our planet. For instance, it is argued that if we don’t allow the airport to expand, money and jobs will be lost. That kind of thinking is killing us in the end. The speech contains some more interesting words.

This we know – the Earth does not belong to man – man belongs to the Earth. This we know. All things are connected like the blood which unites one family. All things are connected.

Whatever befalls the Earth – befalls the sons of the Earth. Man did not weave the web of life – he is merely a strand in it. Whatever he does to the web, he does to himself.

We know this deep in our hearts but it is hard to deal with it. The people from the Strohalm Foundation have worked for decades to define an outline for the society of the future. They were not hindered by established interests nor did a lack of perspective deter them from continuing their search. They tried to learn from history and were part of a small group of people that kept on caring and never gave up. Here is another interesting take-away from the speech.

Even the white man, whose God walks and talks with him as friend to friend, cannot be exempt from the common destiny. We may be brothers after all. We shall see. One thing we know, which the white man may one day discover – Our God is the same God. You may think now that you own Him as you wish to own our land, but you cannot.

In 1991 the Strohalm Foundation issued a booklet named To a Philosophy of Connectedness. It lays out a vision for a future society that is both sustainable and humane. It gives possible steering mechanisms that can help to achieve a durable and more humane society. It is a vision that long seemed unattainable, not because it is impossible to do, but because vested interests stood in the way.

That destiny is a mystery to us, for we do not understand when the buffalo are slaughtered, the wild horses tamed, the secret corners of the forest heavy with scent of many men, and the view of the ripe hills blotted by talking wires. Where is the thicket? Gone. Where is the eagle? Gone. The end of living and the beginning of survival.

In 1994 I became familiar with the Strohalm Foundation. For a long time I believed them to be naive as I considered myself to be realistic. Most people I knew did not really like environmentalists. I kept on supporting their work because there seemed to be no alternative. You cannot allow realism to stand in the way of what needs to be done. And therefore this vision exists because of the hard work of environmentalists like Friends of the Earth and the Strohalm Foundation.

A new perspective

We need a new starting point, a new foundation for our culture, our beliefs and thinking about our place in the universe. There is no other choice. Small steps can’t save us. We need to fundamentally change ourselves and the ideas we currently have. The planet we live on is given to us by God and not ours to destroy. Sadly, the fate of our planet does not compel us enough to do the right thing so God comes in handy here.

As long as we do not completely change our approach to the major problems of our time, our societies will not become more humane and respectful of our planet. As long as production and consumption increase, new problems emerge faster than old problems can be solved with laws, technology, targets and other solutions.1

We are not confronted with an array of regrettable separate incidents, but with a culture that is on the loose. It is a throw-away culture in which not only materials and energy are wasted. Human relationships and values end up on the waste dump too.1

You probably know that in your heart but find it difficult to admit. Admitting this can give you a feeling of hopelessness. And so you may be inclined to ignore this, to focus on smaller and more concrete problems, or to withdraw yourself1 by fleeing into cynicism, new age spiritualism or conspiracy theories.

Most of us believe that massive structural changes are impossible and that we can’t influence the course of history in a meaningful way. And so we choose to manage existing developments with smaller measures. That may not help us in the end.

There is another way of looking at the situation. It is the rational way. Acknowledging a problem is already solving it half. Our feeling that nothing will ever help can be a self-fulfilling prophecy. Still most of us want a solution and help to make it happen. As soon as there is a perspective for change, many of us will let go of their cynicism and help to make it happen.1 And then change can happen very fast.

Twenty years could be all we have left. And twenty years may be all we need.

Natural World Order

You go to your job and perhaps you achieve something there. Your activities do not only have the intended consequences but many others as well. If you succeed and get a promotion, a colleague might get jealous. If you go to your job by car, the exhaust gases can make other people sick.1 The unintended consequences of your actions hardly play a role in your decisions but they change our reality in unexpected ways.

The world is so complex that the models we use can’t get a hold on what is going on. It appears that we can’t change the future in a meaningful way. At best we can anticipate what is going to happen. The failure of communism demonstrated that centralised planning does not create a happy society. That left us with capitalism and markets. They brought us prosperity while our living conditions are being destroyed.

Nature can us show a way out. Organisms start relationships with each other. These relationships can become permanent if one organism makes something another organism needs and the other way around so that both benefit. For instance, plants and animals have such a relationship. Plants produce oxygen that animals need while animals produce carbon dioxide that plants need.1

Plants and animals are part of a self-sustaining cycle. They are connected. They are parts of a whole. If plants die then animals including humans die too. There are many of such relationships in nature. Such a natural order emerges spontaneously but it takes a long time. It starts with individual organisms starting relationships. These relationships can grow to a global scale as long as the external conditions allow for it.1

External conditions are like a dictate. If there were no fossil fuels then we can’t burn them. If there was no technology to build cars, we can’t drive them. External conditions are usually taken for granted but when they suddenly change then we must adapt and that can be brutal. For instance, the spread of the corona virus brought long-distance travel to a standstill. And climate change can become far worse than that.

Make no mistake. Running into the limits of our planet will be more brutal than anything that ever happened before in the course of human history. That leaves us with no other choice than setting global limits on human activities before the planet does it for us. But the sudden stop of air travel also teaches us that we don’t really need it. And there are many more things we do not need.

People, businesses and governments must deal with these limits. Once they are in place, communities, governments and businesses all over the world can reorganise themselves via communities, so that the Natural World Order will arise more or less spontaneously. Humans can make this happen fast because they can quickly change the ways they cooperate by changing their cultures. That doesn’t require planning every detail but it does require altering the steering mechanisms of our societies and economies.

One of the most important things we must change is the way we look at wealth and conspicuous consumption. Wealthy people are seen as great examples and their consumption is seen as good for the economy. If conspicuous consumption is frowned upon, there is less fun in being extremely rich, and a lot of crime becomes pointless. For example, what’s the point of risking your life by being drug dealer if you can’t drive around in your expensive cars any more? This way looking at wealth and consumption is essential to make the Natural World Order come to pass.

Steering mechanisms

Money is now the most important steering mechanism in society. Realising goals of any kind usually requires the cooperation of others and therefore money. That is understandable. Everyone needs money but it may be better that we are motivated more by our job or our contribution to society and less by money. Economic decisions are affected by interest as well. Interest is a steering mechanism. High interest rates promote short-term decisions while low interest rates promote long-term decisions. So how does that work?

If the interest rate is 5% then € 1,00 next year is worth € 0,95 now. That makes you prefer to get € 1,00 now rather than next year, even when you need the money next year simply because you can receive interest and will have € 1,05 next year. Interest reduces the value of future income and therefore the future itself. Interest makes people and businesses prefer the present to the future and short-term gains at the expense future generations.

This is why a sustainable economy requires low or even negative interest rates. Ending growth also requires negative interest rates otherwise the interest on debts can’t be paid. Interest is any return on capital so interest doesn’t depend on money but on capital. As the wealthy own most capital, interest is a flow from everyone else to the wealthiest. A humane society may therefore need to end positive interest rates. Central banks do not determine interest rates in the end. The supply and demand for money and capital do. But ending interest may soon be possible.

In a free market competition is a major steering mechanism. Competition promotes efficiency and progress but it also causes many problems. Competition affects economic decisions.1 It can force corporations to produce as cheaply as possible or to produce stuff that no-one really needs only because it can be sold at a profit. Many corporations see little room to treat their employees well or to take care for the environment.

If you desire that latest model, the best service, the lowest price, and want more money to buy even more stuff, then you are part of the problem like nearly everyone else, and that includes me. It may be strange to realise that you have enough, or even have more than enough, and that you can do with less stuff, older models, poorer service and higher prices, so that local businesses may be able to survive.

Another important steering mechanism is the distribution of cost. Short-term gains are for corporations while societies deal with the long-term cost like pollution and unemployment. Education and health care are public costs that corporations often do not pay for. Taxing systems do not take into account the limits of the planet. They need to be changed in order to attribute the true cost to the products and services people buy.

Shifting taxes from labour to raw materials and energy can help. This measure can induce people to use items longer and promote repair and recycling. Corporations must be responsible for the entire life-cycle of the products they produce. Non-essential products that are harmful can be banned completely. The advertisement industry can be regulated to stop people from buying items they do no need.

Laws are a steering mechanism too. What is legal isn’t always fair. Unethical behaviour is often not punished by the law. A greater role for ethics in law is needed, most notably in matters of business. Savvy people and corporations use loopholes to their advantage or bribe politicians into changing the law into their favour. Exploiting people, misusing public funds, and harming the planet should be sufficient ground for persecution and conviction, even if the specific activity is not declared illegal.

Most people take the existing steering mechanisms for granted. A few people like the anti-globalists and religious extremists think of an alternative. Only most people would not like a reign of terror. And so we limit ourselves to taking small measures in order to reduce the fall-out. It is hard to believe that the steering mechanisms themselves can be changed. Perhaps technology will save us, we hope. That may not be the case.

The throw-away culture

Science, technology, society and culture are closely interconnected. It is fair to say that we live in a technological society and a throw-away culture. If we have a problem then we look at scientists and engineers to solve it. Even our emotional problems we address with therapy sessions and pills. This is also true for environmental problems.

A good example is perhaps a report of the Dutch research agency TNO in the 1980s about replacing milk bottles by milk cartons. Milk bottles were used many times while cartons are thrown away. The discussion that followed was about the number of times a bottle was reused, which determines whether or not the bottle is better for the environment. That depended, amongst others, on the number of times a bottles was reused.

These discussions can be useful. What was not discussed however, was the throw-away culture. Milk bottles were part of a culture of reuse that was disappearing. The cartons are part of the new throw-away culture. Discussions are about quantity, objectivity and efficiency, but not about fundamental questions about the way we live.

The things we use deserve more respect. Valuable resources and energy have been used to make them. We should not depart from them until they are worn out completely. If they are broken we should fix them until they can’t be fixed any more. And why should we buy frivolous items or make long distance trips for recreational reasons?

The fourth way

The damage done to our planet is escalating. There is a lot of excess. Nowadays there are more obese people than hungry ones. So poverty can be ended. The end of our way of living is here. Communism and state planning have failed. Capitalism and free markets have failed too, perhaps even more miserably, but most people have yet to find out. Many countries have combined state planning with market economies and called it a third way. That didn’t help. But what can you expect from a compromise between two failures?

It is not surprising that people distrust stories that have a claim to the truth like religions, ideologies and science. But it is the absence of great stories we can believe in that makes our societies directionless. Individuals and their desires are now at the centre stage. So is there anything left that binds us together? Sure there is. A soon as a crisis emerges people join and help each other. The future is certainly not without hope.

There is an alternative, a fourth way. It can be called the Natural World Order. It is setting limits on a planetary level and letting people deal with them via communities, governments and markets. It is not clear from the outset what will happen if we do this. This can’t be planned from the top. Developments can take different turns. For instance, if energy is to become expensive, international trade would diminish and local products would be favoured. If most people know what needs to be done then they are willing to contribute but it does require using force against people who do not comply.

This is not the time to put more lipstick on the dying pig that the failing current order is. This is not the time to make it appear as if the current order can provide for us in the future. The limits of our planet should be respected. Administrating these limits would require a relatively small global government, but only if people, communities, businesses and governments all over the world, help to make the Natural World Order become reality. The Natural World Order needs massive support. It can only work when the vast majority of people believe in it and want to make it work whatever it takes. And that begins with everyone who has enough admitting that enough is enough.

We want more stuff because the advertisement industry tells us that we need this or that product or that this or that product will make us happier while in reality we don’t need it and it also doesn’t make us happier. Our current economic system needs growth. We must buy more stuff to keep the economy from collapsing. That is why real change is scary and can easily freak you out. The reason for this predicament is interest on money and debts. We need growth to pay for the interest otherwise the interest on debts can’t be paid and the financial system breaks down. The first priority is therefore ending interest payments on money and debts. Luckily financial markets allow it for the first time in human history.

Negative interest rates can be a steering mechanism on the global level that channels money from those who have enough to those in need and are willing to make good use of it, for instance by starting a business in developing countries. It doesn’t mean that poverty suddenly vanishes once interest rates go negative, but it does mean that the economy and the financial system can be made more favourable to the poor, most notably to those who are willing to enterprise in places where there is not enough.

Negative interest rates may signal the end of scarcity and the beginning of abundance. Eve and Adam didn’t know of scarcity in the Garden of Eden. They had everything they needed. There is enough for everyone’s needs but not for everyone’s greed. And so we may enter the Final Gardens of Paradise that await for us at the End of History. This may be God’s plan for the future. Time will tell. This is the vision. Making it happen is not going to be easy. I hope you agree that we should try. So let me be your guide.

Featured image: the only known photograph of Chief Seattle taken in 1864

1. Naar een filosofie van verbondenheid. Guus Peterse, Henk van Arkel, Hans Radder, Seattle, Pieter Schroever and Margrit Kennedy (1990). Aktie Strohalm.

Leadership jobs

Steve Jobs told employees a short story when they were promoted to vice president at Apple. Jobs would tell the VP that if the garbage in his office was not being emptied, Jobs would naturally demand an explanation from the janitor. “Well, the lock on the door was changed,” the janitor could reasonably respond. “And I couldn’t get a key.”

The janitor’s response is reasonable. It’s an understandable excuse. The janitor can’t do his job without a key. As a janitor, he’s allowed to have excuses.

“When you’re the janitor, reasons matter,” Jobs told his newly-minted VPs. “Somewhere between the janitor and the CEO, reasons stop mattering.”

“In other words,” Jobs continued, “when the employee becomes a vice president, he or she must vacate all excuses for failure. A vice president is responsible for any mistakes that happen, and it doesn’t matter what you say.”

It is a story from John Rossman’s upcoming book titled Think Like Amazon. Steve Jobs had a simple theory about what separates great leaders from all the rest. If it is your job to lead, and a lot depends on you, there is no excuse for failure.

Read more:

Jeep Grand Cherokee

The law of diminishing marginal utility

Imagine that you are very fond of pizza and also very hungry. If I offer you a pizza, you will be very grateful. If after you have finished eating your pizza I offer you a second pizza, you will not decline the offer but you will be a bit less grateful. If I offer you a third you might still eat it in order not to offend me. The fourth pizza you would decline. Perhaps you would come up with some lame excuse like nausea to explain your peculiar behaviour. Before the fifth pizza is offered, you may already have left my home in a hurry.

Welcome to the law of diminishing marginal utility. It is an important law in economics. It states that the more you have of something the less useful an extra unit is to you.

This law can be expressed in terms of money. If you are at a pizza restaurant, you might be willing to pay € 12 for the first pizza. After eating it you are not so hungry anymore and you might not be willing to pay € 12 for a second pizza. But if the restaurant owner offers you a discount of € 6 on the second pizza, you might accept the offer. A third pizza you may only eat if it is on the house. A fourth pizza you won’t eat unless the restaurant owner offers you € 6 to eat it. Eating a fifth pizza might cost the restaurant owner € 12.

What might strike you is that the fourth and fifth pizza have a negative value to you. You are not willing to eat them unless you are paid for it.

The law comes with another consequence. If you have enough now, you may think about the future and save money for unexpected expenses and retirement. As we get wealthier, getting more stuff becomes less important to most of us while certainty about the future becomes more important. At some point we do not want more stuff and the law of diminishing marginal utility becomes an obstacle to economic growth.

If you are happy with what you have and care about the future, you may save too much for the economy to grow and capitalists won’t make enough money because they must at least make the interest rate. The law of diminishing marginal utility is therefore a grave threat to capitalism. And so is interest. This is where the advertisement industry comes in. The trick of advertising is to make us unhappy with what we have and to make us desire more. Buying this or that will make us happier, advertisements promise us.

Fashionable items with a limited life-span are part of the solution too. It is not always possible to make us desire more stuff, but it is still possible to make us desire new stuff. The dress you bought last year is out of fashion now. In order not to look stupid you have to buy a new one. And then there is technological development. Next year there will be a newer model, and by the way, the software on the old model won’t be supported any more. And of course, luxury items do their bit. Why go for a Volkswagen Polo if you can afford if you can afford a car with a low marginal sports utility value like the Jeep Grand Cherokee?

Yes, the Jeep Grand Cherokee is an ugly monster, but it is bigger than the Volkswagen Polo and if you can afford to drive it, why not? There is a reason why not.

We humans use far more resources than our planet can offer. That’s why capitalism is a grave threat to humanity. Capitalism nowadays is like making us eat the fifth pizza and pay extra for it even though that creates a health hazard while many people are hungry. And there may be no food tomorrow because we have eaten too much today. The Jeep Grand Cherokee is like the fifth pizza. We work hard to buy stuff we do not need. This is how humanity is committing suicide. This can’t go on. There is one obstacle. Businesses must make at least the interest rate, and interest rates below zero are still unthinkable.

In other words, we must learn to care about the future and interest rates may need to go below zero. We must learn to be happy with what we have and settle for less when possible. This may be a grave threat to capitalism for what will happen if we stop spending on excesses? Economists fear that the economy will collapse and that we will be without jobs when business profits decline and interest on debts can’t be paid. That doesn’t have to happen when interest rates are negative. In that case debts don’t have to be repaid and businesses with little or no profits can survive.

That may seem strange but it is already happening. The law of diminishing marginal utility is kicking in, and it is kicking in big time.

This law affects capital too. If there is only one pizza factory that can supply every pizza addict with one pizza per day, it would almost certainly make a profit. A second factory might make a profit but it might not. And what is more, if the second factory comes into operation, the supply of pizza increases, and according to the law of supply and demand, the price of pizza would drop. That would also cut into the profits of the first factory.

A third factory would almost certainly be loss-making and it would make the other factories loss-making too. At some point there is little use for more capital. That causes the demand for capital to drop and interest rates to go negative. Traditional economics would consider this unhealthy or temporary.

That doesn’t need to be and it can be desirable. Three pizza factories fiercely competing and without profits might be better for consumers than one that is profitable if we assume that pizza is a necessity. Everyone must eat something. There could be an ample supply of investment capital at negative interest rates so profits may not be needed for pizza factories to stay in business.

A problem is that excess investment capital can go to businesses that suicide humanity by using scarce resources to produce stuff we do not need. Negative interest rates can help to make the economy sustainable but only if the excesses do not happen. This would require governments to ban or tax excesses or to regulate their production so that these products don’t have a harmful impact. That would make them a lot more expensive.

But the fun driving a Jeep Grand Cherokee, apart from being it big, is that you can afford it, so the fun will even be greater when it is three times as expensive.

When people start saving more and businesses hardly make profits then where does the money go? It can be used to make the economy sustainable. It can go to people in need who still have use for money. The money can help to reduce poverty and it can be used to address pressing needs in society. And we could have far more leisure time. What’s the point of working so hard for things we do not need? We may only have to work for twenty hours per week and still have a good life. It seems possible that humanity will survive capitalism and that capitalism will be transformed into an economic model that can endure for the foreseeable future.

Featured image: Jeep Grand Cherokee. Jeep (2019). [copyright info]


Self determination

To most people currency means government issued money used within a nation or a group of nations. US dollars, Chinese yuan, Korean won and Brazilian real are all currencies. Currency is important for political and economic self-determination. A national currency allows nations to pursue their own economic policies, although the options are constrained by global economic forces.

Local or regional currencies can supplement national currencies, most notably when communities or regions want to achieve a higher degree economic independence. Supranational currencies like the euro reduce can economic independence. To maintain some political and economic independence in an increasingly integrated world, currency is key. For that reason currency is more of a political subject than an economic one.

Reserve currency

Reserve currencies facilitate international trade. In the past decades the US dollar was the most used reserve currency. This arrangement allowed the United States to enjoy a higher standard of living and have a large military paid for by foreign nations. That is because the United States can print US dollars and other countries accept them as payment.

This arrangement gave foreign nations a competitive advantage. By buying US dollars for their currency reserves, competitors of the United States were able to suppress the exchange rate of their own currency and sell their products cheaper. This harmed US exports and it allowed other countries like China and Japan to build up their industries.

The reserve status of the US Dollar made the FED responsible for the international financial system. The FED had to rescue foreign banks during the financial crisis of 2008 so that US taxpayers ended up backing foreign banks. The FED probably had no other choice because if the FED hadn’t acted, the global financial system might have collapsed.

International Currency Unit

For that reason it may be better to have an international reserve currency that is not a national currency. The future International Currency Unit (ICU) can be a weighted average of national currencies. It may require an international central bank to guarantee stability in the international financial system. As long as central banks make decisions that have significant consequences, an international central bank will be a troublesome construct.

Only when central banks do not set interest rates and do not print currency, it might be feasible to introduce an International Central Bank (ICB). For that the ICU as well as the underlying national currencies may need to be a Natural Money currencies. Natural Money currencies require little or no central bank oversight as financial instability is the result of usury. Furthermore, with Natural Money central banks do not set interest rates.

50 euro
50 euro

The euro

The euro is an interesting experiment because it is a currency shared by a group of nation. The nations of the euro zone are sovereign but have given up their national currencies. Initially it was thought that the European Union would become a federation like the United States with a strong centralised government bureaucracy. But history took a different turn, and the European nations remained sovereign while the size of the centralised European institutions remained small compared to the United States.

The euro produced political and economic tensions. Previously, when every nation had its own currency, the differences in competitiveness between countries could be dealt with via exchange rates of their national currencies. If a country could not compete and exports were outstripping imports, the exchange rate of its currency could be lowered so that exports would become cheaper while imports would become more expensive. In this way the country could remain competitive in international markets.

Apart from the economic issues, there are also political concerns. People in Northern Europe feel that they pay for the debts of Southern Europe while people in Southern Europe feel that they are faced with austerity dictated by Northern European countries. The available options appear making the eurozone a federation like the United States or reverting back to national currencies. The benefit of a larger currency like the euro more efficient financial markets and lower interest rates.

If their government budgets are sustainable then Southern European countries can benefit from these low interest rates. Returning to national currencies doesn’t have to be the end of the euro either. National currencies can be introduced alongside the euro. Existing balances in euro will then remain in euro. The euro can be a weighted average of the national currencies making up the euro zone. This would make the euro look like the proposed ICU. It could be a step towards introducing an ICU and the ICB.

Private currencies and cryptocurrencies

Private currencies are not issued by a government or central bank. Proponents of private currencies like cryptocurrencies promise that they can provide an alternative payment system independent from governments and banks as well as an alternative way to issue stock. They believe that private currencies like cryptocurrencies can supplement or even replace existing currencies issued by governments and central banks.

Currency is important for political self-determination. For that reason governments have usurped the prerogative to issue currencies. Private currencies can undermine the power of governments, hence nations. Cryptocurrencies can facilitate crime, scams and tax evasion, so they their use is likely to become regulated or even banned in the future. Governments may also start to issue cryptocurrencies themselves.

Until now cryptocurrencies have not been stable. Payments in these currencies are cumbersome and only attractive when there is no regular payment system. Financial markets in these currencies are non-existing. A currency most allow for debts denominated in this currency. It must be easy to lend or borrow money in financial markets. And if the interest rate in the market is negative, then the currency must facilitate this, otherwise the economy may be disrupted.

Local currencies

During the Great Depression in the 1930s the Austrian town of Wörgl issued a local currency with a holding fee, which worked like a negative interest rate. The ‘miracle of Wörgl’ suggests that negative interest rates could have prevented or ended the Great Depression. The miracle also revealed something else. It was not possible to use the local currency outside Wörgl and because of the holding fee people spent it so the economy of Wörgl improved while the Great Depression intensified elsewhere.

The local currency allowed Wörgl to achieve a degree of economic independence. In the midst of a worsening depression the local economy improved so that unemployment dropped. It demonstrates that currency can be important for local, regional and national self-determination. If international markets fail to help a municipality, region or nation, it may be able to help itself with the use of a currency.

The Wörgl money was an complementary currency that circulated alongside the Austrian currency. It has been tried to copy the idea but only a few times it has been a great success. If the economy is doing well then a complementary currency often makes little sense. And complementary currencies often depend on a the commitment of the local people to the well-being of their municipality or region to the point that they prefer local or regional products simply for the reason that this promotes the local or regional economy.

Disconnecting from international markets can allow a municipality, region or nation to build its own economy but local products may provide less value for money than products from international markets. When the disadvantages of free trade outstrip the benefits then that is justifiable. Many successful national development stories include shielding national markets from international competition in order to build up a national industry. Once a country becomes developed and wealthy, the justification for trade barriers disappears, as they deny people the benefits of better or cheaper products from abroad.

Featured image: 50 pula bank note. Bank of Botswana.