Summary of problems with current money system

1. It leads to highly unstable economic system as interest rate mechanism is blunt tool leading to boom and bust cycle
2. Interest means that system requires continual economic growth to avoid collapse. This is incompatible with sustainability
3. Money as a scarce resources pre-desposes the system to competition rather than cooperation as with limited amount of money in circulation people and firms have to compete for it to survive
4. Money is created outside of where it’s needed, meaning people have to either earn or borrow it in order to use it. This undermines local self-reliance
5. The money is supplied to the system by profit-seeking entities rather than as and when it’s needed. This creates shortages which prevent people meeting their needs, eg in Africa
6. The money does not represent anything real, therefore a system based on its use is not an effective way of allocating scarce resources, nor does it naturally lead to incentives to conserve scarce resources