Creditary economics
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Creditary economics is a broad and inclusive term for all theories of economics and political economy that drastically de-emphasize or deny altogether a role for debt and assumptions of fixed yield for such financial capital instruments. These theories usually emphasize a role for local currency, especially in keeping a service economy functioning normally even during national or global depression.
In neoclassical economics, nation-states are presumed to control and administer natural capital and human capital, and to grant credit according to a money supply system that reflects anticipated yield of these in financial capital under globalization.
Creditary economics challenges these assumptions, especially that global market values reflect local value of life or global value of Earth.
Although the name emerged relatively recently and is associated to a degree with Henry C.K. Liu and others who refer to the G8 as "gang8", many predecessor theories and movements actually share these assumptions, while disagreeing on a great many elements of political economy:
- Islamic economics which permits only joint venture investments
- Ecological economics and its successor human development theory
- Feminist economics and the more general Green economics which put a high premium both on nature's services to humanity and mother's services to children, neither of which has status in debt economics
- Global Resource Bank advocates who see the Earth as a commons
An important point of consensus among these is that debt reflects power relations that are incompatible with creativity, conservation of either energy or materials, and the integrity of natural capital, social capital and individual capital.
The term post-autistic economics is sometimes used by advocates of deeper monetary reform. This implies that debt economics is a form of autism.
Defenders of debt relations often argue that such measures as bankruptcy, debt relief, debt forgiveness, bailouts and deflation of major currencies serve to relieve the problems associated with most debt relations - and that these can continue to be managed on a case-by-case basis. Detractors tend to respond that these are "band-aid measures" and that the continuing race to the bottom in environment, labour and social welfare services is due in the main to debt relations.
Furthermore, begging to bankers in foreign nations for "forgiveness" is seen by most nationalists as humiliating, particularly if odious debt incurred by some former dictator is involved. Many see this processing of granting credit and forgiving debt as a form of imperialism and racism, which keeps local economies in service to global militarism.
Marilyn Waring for instance contrasted the value placed on the service done to society by mothers hauling water, gathering firewood, and raising children, to that placed on military "work", which in many countries is engaged in guarding capital assets used to generate financial capital to pay off foreign debt. In effect, women's work was considered worthless as it did not directly generate hard currency or seem to provide any means of protection to capital assets that did. This is contrary to the long-term interests of the child, mother, or whole society, she argued. She accused the still-standard UN measures of national income of guaranteeing uneconomic growth. Some people joke that she may be the only individual on Earth who has actually read the UN standards, which run to an entire wall of documentation.