On Energy Accounting: Public and Personal

MonolithArcologies_RyanGrobins

By Enrique Lescure

Introduction

Unlike Karl Marx, we very much advise that we should need to at least make rudimentary socio-economic recipes for the future. During Marx’s time, there was little in terms of knowledge regarding the effects that industrialism had on environment, to not say the least that the world at the period of 1848-1888 still was “sustainable” (in the sense that we used less than the world could renew).

As you may be aware of, the Earth Organisation for Sustainability has designed a basic blueprint for a new global socio-economic system, which is called Energy Accounting or simply “the Design”. This Design is developed partially from Distributed Systems Theory and partially from the proposals of Technocracy Incorporated in the US during the 1930’s. We do also aspire to test our system on limited scales in a series of tests.

As you all probably know already, Energy Accounting is a design that relies on  assembling data on the Earth’s capability to renew its resources on a constant basis, use that data to establish a specific amount of energy credits, and then share out these energy credits to the people – or rather to each and every individual who contains their energy credits in a personal account. The individual then allocates their energy credits to things which they desire, and the things they desire are produced for them.

Simple, right?

No, the truth is that it is a highly complex process, but given the global impact we as a species are weighing on our poor planet, I believe that most people can agree that our proposals (taken separately) have merits. It is still a bit early for people in general to accept that these proposals make a lot of sense taken together as well, but we’re heading in that direction technologically, which I guess is good.

Anyway, there are some things regarding Energy Accounting which I believe that I have not emphasised enough, and that is subsequently why this post exists. This post will not be a complete exposé, but rather will focus on one issue, namely how energy units are distributed out and what the difference is between public and personal use of energy credits.

It is highly suggested that readers are reading through the other articles regarding the topic of Energy Accounting, before or after having read this, whether you need to fresh up your knowledge or if this is an entirely novel topic for you.

Why Energy Accounting is a form of market economics

theeducatorscloud-public.sharepoint.com

theeducatorscloud-public.sharepoint.com

When we move away the basic income and the circular economy bits of EA, what we are getting is a form of self-regulated market economy where the externalities are internalised.

Conventional market economics can only approach environmental problems either by the Laissez-Faire approach (meaning that we need to wait until air and water are so scarce that there can be market for them where some people will be left out because their demand curves are too low) or by legal regulations (taxes).

Energy Accounting solves the problem of externalities by constant data gathering of crucial information regarding the planet’s state. This data gathering would be carried out by de-facto thousands of stations and project groups, who each and every one will add data to the overall energy survey.

These resources are later on distributed to the entire population of the survey area, where each individual is given both a basic minimum income and additional energy units according to their labour (there is also a debate on where the minimum level should be based and whether we should go for full egalitarianism, but that is a subject for another topic). As everyone have received their share of energy units, they can allocate these units to determine how the production of the entire survey area would be distributed and what industries would be subsidised. This would create a market where demand to some extent is determining supply (within the capabilities of nature of course).

Therefore, basic Energy Accounting as defined by EOS is a form of market economy. It is not a capitalistic market economy, but it is a market economy.

However, while markets are good to determine individual needs (if all people have decent demand curves), they are not so optimal when determining public needs. For example, people may not demand railway systems, but railway systems can improve the transport of other things that people need. Large-scale energy production, infrastructure, basic education and hospitals, to just a mention a few things, would need to have a basic infrastructure.

Infrastructure on some level demands public expenditure (no matter if the revenue is raised through taxes, raised through voluntary donations or is income from government owned natural resources).

Given that Energy Accounting is not designed to work with taxes, how should public utilities be dealt with? And is there a single recipe for dealing with public utilities?

The Public space in a technate

Energy Accounting

One thing which we assume is that all energy units will be distributed out to the people. There is however a slight problem with that, and that is that a modern society is incredibly complex. What gift economists and other anarchists are ignoring is that modern production often demands a lot of steps to extract or produce materials, assemble them and then transport them to consumers (and then recycle or upcycle them). By smart green innovations and holistic systems, we can reduce this complexity (to the price of another form of complexity, namely superior data algorithms), but if we are aiming for the production of energy, food and resources enough to feed large human communities, there would still need to be infrastructure.

We can reduce our needs for it, but even if most things are produced locally by the communities themselves, some back-up systems in the case of a disaster would be needed.

Another issue is the issue of fairness. Is it fair that an individual with heritable diseases should spend more of their energy units on things like medicines, medical care, wheelchair, eye augmentations (or glasses)? Should children (or the parents) devote more of their energy units for education services?

Therefore, as evidenced in the image above, when the Energy Survey for the period is made, a share of the energy credits will go to the infrastructure, so the infrastructure can provide the users with both basic services and maintenance, and provide the holons with the resource networks they need to produce the stuff that people are requesting.

Thus, it wouldn’t be like that people would first receive their share and be obliged to pay a part of it back in the form of taxes. Rather, the distribution between public and personal will happen when the total capacity has been measured by the Energy Survey.

Those who have looked at the figure above can see a third area, a green one. The question that follows is: What is it?

As previously written, the total share of energy units correspond (ideally) to the survey area’s capability to regenerate its biomass (for clarifying, the survey area might be the Earth). If all of those units are distributed out, either to the users or infrastructure, there is nothing that says that everything won’t be used up. Of course, most users will not be using up all their energy units during one period. Yet, by relying on such unreliable and fluctuating methodologies of regaining nature, we will basically make nature subservient to consumption – which is one of the foundational problems in today’s world.

Therefore, it is essential that a fraction of the energy units are left idle (that we are using for example 97,5% of what is within nature’s limits to provide instead of 100%, the percentile in itself is not as important as that is below 100%). This would ensure a slow but steady adaption from nature’s side, and that ecological diversity will eventually start to grow again.

Public vs personal, how to determine?

Eco-homes in Rockwood

Eco-homes in Rockwood

There are two ways to determine how much of the total sum of energy units should be distributed to any of the three areas mentioned above.

The first methodology is the technocratic methodology, which would mean that experts would determine the minimum and maximum needs for the infrastructure to operate and then extrapolate the needs from that. The second methodology is the democratic methodology, which would mean that the public themselves would determine how much would go to themselves as individuals, and how much would go to the infrastructure (including public institutions).

I would say that both methodologies are valid, but only if they are used in tandem with one another and a third factor. This third factor is of course the normative and ethical foundations of the Constitution, which outlines how resources may not be used (for example not be used in a way that destroys the environment or in a way that violates human rights). The figure below illustrates this interdependence.

by Enrique Lescure

by Enrique Lescure

However, that it is decided that a specific share of the common resource base would be used for infrastructure will not mean that this percentage will always be used for infrastructure. It also does not mean that the specific share in every region will be the same.

In regions with smaller infrastructural requirements (due to population size or other factors) or where the culture and sentiments are favouring self-sufficiency contra massive public infrastructure, there would be less distribution of energy units to infrastructural or public needs. Conversely in some other regions, the infrastructure might receive over 50% of the energy units.

Food: Public or personal?

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One last issue before I wrap up this particular post. Food.

Why would it be a good idea to view at least some basic food as a public utility? The reason is that while a user generally can wait for a new garage module, a new bike or a new computer, all human beings require food. We can imagine that there would be holons that produce for example food on a daily basis, but for staple food (for example wheat or rice) there would be need for large-scale production in order to provide for a billion population of humans.

Therefore, it can be advisable to at least measure a part of the public energy credit usage as being directed towards food production. That would however not negate holons producing food autonomously.

Summary

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The main issue to remember is that we soon will be nearly 10 billion human beings on this world. We would need to utilize our common resource base very wisely, and we must take into account that it would probably not be feasible to have all humans self-sufficient (though a higher degree of self-sufficiency and survivalism is probably necessary if we want to have a strong civilization).

Therefore, there needs to be an opportunity for a public sector administering basic infrastructure existing alongside the voluntary holonic initiatives which would form the basis of the Technate’s economy. The size of this public sector should be determined by the needs of the infrastructure, but also by the desires of the public, and be checked by the Constitution.

It should also be stated that the Technate in itself is perceived (even the blueprint) as a transitionary model towards yet a better and more sustainable civilization. This would mean that when you read texts by us, you should not imagine that we aspire to create a perfect society or some form of socialist or anarchist utopia. Rather, we are trying to create an alternative that can balance human needs with the needs of the environment and of future generations.

That is the great challenge of our era.

Q/A regarding Energy Accounting

By Enrique Lescure

Intro

I recently had a person send me several questions regarding EA to my FB profile. I could not answer immediately, as I was compiling the accessment of the project report to the County Board. Four days later, I was done, so I finally made a reply. I have decided to share it publically. The questions are in italics.

Q/A

I’m not sure I understood energy accounting properly. Each citizen is given the same amount of energy per period of time and it expires. What does the energy provide? Do you use it for purchasing food?

Energy credits are not actual energy, but rather is a method to track the resource flows from extraction to recycling. The energy credits represent the part of the production capacity which you own. The cost of a product is determined by the exergy cost of the entire production line, meaning that the “price” that is accounted for is based on extraction, the industrial processes, transports, as well as environmental effects of emissions and local disturbances at the site of production.

What if you have an energy intensive experiment to do, how do you get approval for that?

Write a project plan, the local sector board will look it through, and then either grant you the right to do so, reject it or come with recommendations.

If you need/want a rare/scarce resource, can the credits be used to acquire it?

Rare and scarce resources are usually energy expensive in generation. You can order such items, but the price will be dependent on the cost.

If it expires, doesn’t that create the incentive to spend it?

Yes probably. That is why the total amount of EC’s must be less than the planet’s carrying capacity. We need however need to test out long-term simulations in local and regional environments to see how users would behave. If groups of people to not use their share of production, then there is a potential inefficiency and even possible waste of energy. It is actually good for the Earth if people choose to consume less. I don’t see so much of a problem. Some holons will probably wither, but the system will adapt.

Others are blocked from production who may be able to create high energy goods, but it is in excess of their share, while others energy goes unused. This creates a black-market for collaboration or worse.

This question would actually require an article to require, since you take up three subjects in it. I will try to summarise:

1) There will be an income floor and an income ceiling, meaning that everyone will get EC’s and own a share of the planet, though the size of that share can vary during the course of an individual’s life-time. It is true that you cannot save EC’s, but that is because they represent production capacity.

2) People are not primarily producing as individuals, but as members of project teams, or holons, which are the equivalent of coops, companies and departments today. Most holons are small project teams, while some are very large and can consist of possibly hundreds of holons if necessary.

3) If people locally want to have for example local currencies, farmer’s markets, barter and similar, it is up to them to form their own rules (for example, if a community wants to illegalise alcohol, they are allowed to do so). The technate is not a government, but a communication service system. People are free to determine their relationship with the technate, but the relationship must be one of mutual benefits – I.E if a community wants to join the technate, it must be ready to connects it services to the technate.

Finally, how was the 25-50% real income increase calculated?

Zero taxation. However, it will vary between individuals, and also it is partially revised. You see, a part of the total shares of EC’s need to be distributed to special key holons which are providing fundamental infrastructural services, like electricity grids, road networks, railway networks, heating and so on and so on.

Thank you for your questions! 🙂

Energy Accounting


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This is another one of the series of proposed articles for the updated EOS website. It delves into the subject of Energy Accounting, which can be pretty complex to explain. I have tried to be as concise and clear as possible, given that this subject is unfamiliar to the overwhelming majority of people.

Introduction

 

Now when we have established why we don’t appreciate the current monetary system, we would like to offer our alternative. Before we start this segment, we would however like to remind you that we do not aim to dogmatically enforce our views on the world.

 

EOS is aiming to utilise research, science and testing to allow alternative systems to emerge and evolve in harmony with the needs of the participants and of the environment. We feel that is necessary in order to provide a social environment that would treat it’s participants with respect and dignity. Nowhere do we claim that we know this would work, but we believe that it offers a potential way out of the gridlock which the human species have got stuck into.

 

We also want you to keep an open mind while reading this article, even if the conclusions can seem radical. We are building our conclusions on how the planet is working, as well as on our values, our views that all forms of life should be treated in such a dignified manner as possible, that we need to balance our needs with the needs of the biosphere, and that all human beings should have the rights to a minimum standard of living.

 

We mean to form a realistic model of how such a mutually beneficial relationship can be established between humanity and the Earth.

 

The Earth’s renewal capacity

 

For the last 65 million years, we all living beings who have had the privilege to enjoy the fresh water and fruits of the Earth have been living under what we could call “The Eocene Biosphere”. It is an ecosystem which is characterised by two features.

 

One: The dominant form of animal life on most of the continents of the Earth are mammals.

 

Two: The climate has been characterised by warm periods and ice ages following one another in a cyclical pattern, regulated by humidity and vegetation.

 

The biosphere is working in a circular system. In the natural world, there is no landfills. Instead, everyone’s waste is someone’s gain. The system is self-renewing and de-centralised, composed of multiple emergent agents that consist of plants, insects, birds, mammals, and the networks that emerge out of their interactions.

 

This system gradually establishes dynamic equilibriums, where an abundance of plants leads to an explosion of herbivores, which leads to a subsequent growth in the number of carnivores. Often, there are interlinked webs of thousands of different species, making up different ecosystems.

 

The biosphere is materially consisting of biomass, which consists of all accumulated organic matter on the planet. Under natural circumstances, given that the system is not enduring a geologically volatile period or a period of rapid climate change, the system is generally adding new biomass to itself, thus growing. This new biomass is generally generated in the world of plants, where sunlight, water and minerals together are an important part of the individual nutritional cycle of a plant.

 

However, for the last decades, this natural order has been upset by the linear growth-oriented economy of the current human civilization. In the year of 2013 for example, we had already consumed up the equivalent of all the biomass the Earth could generate during that year at the 22nd of August.

 

In general, this rate of global ecological cannibalism is creeping 14 days closer to January every passing year. By that point, we will have surpassed the planet’s ability to regenerate itself with one year.

 

Thus, EOS has concluded that it might be wise to base the new socio-economic system on the Earth’s renewal capacity. By directly tying our accounting system to the Earth’s renewal capacity, we hope to be able to receive direct information on how to better manage our common resources.

 

The Energy Survey

 

We imagine that the society in the future, in order to feed the billions of people on the planet, would still need to be a society with a technological infrastructure, and that technological progress will continue. The reason for this is both realistic and humanitarian. We cannot feed more than one billion people if we would return to an agrarian economy on a global scale, and we can only feed ten million if we moved back to a global hunter-gatherer production system.

 

However, a technological system has a few benefits when it comes to the rational evaluation of the available resources. It allows us to gather data and information, analyse it and have a more transparent an open evaluation than ever before.

 

Therefore, we believe that the best way to move forward is to be aware of what we can do, and what effects that would bring to the environments. We must measure and compile data from all ecosystems on a constant basis, as the situation of the Earth is so dire now that we need to survey the status of local eco-systems.

 

But more than that, and central to this article, we hope to establish a global network that can gather data about the renewal capacity of the Earth on a yearly basis. This process will be called The Energy Survey, and will determine exactly how much we as a species could collect from the planet without depleting the natural foundations for life on Earth.

 

Energy Accounting

 

The new form of currency which we want to test as an option are called “Energy Credits”, and they will represent fractions of the total renewal capacity on Earth translated into the emergy cost – in short what energy it will take to extract resources, produce items, transport them and then recycle them.

 

That will represent the cost factor of the new socio-economic system, which will mean that all prices will represent the actual environmental costs, at all segments of the product cycle.

 

Moreover, since the total amount of energy credits should represent the total amount of renewal capacity on the planet for a certain period of time, it would be impossible to utilise the system to overexploit the resource base of the planet.

 

The line is that the share should be divided as such, that one part will go to maintaining infrastructure, another one (which will be the largest) will be distributed directly to the citizenry, and a third part will be “reinvested” into the biosphere, which will mean a biomass net gain.

 

This system is called “Energy Accounting”.

 

Basic Income

 

It is too early yet to discuss exactly what proportions should be allocated to the three different areas of distribution, and it is most likely that if the system is implemented, the proportions will wary in accordance with the interests of all engaged parties.

 

What stands clear however, is that a large part of the energy credits distributed to citizens will be consisting of universal basic income for all citizens. It is a core tenet of the values of EOS, that no human being should be homeless, starving, freezing, thirsting, or deprived of healthcare and education.

 

Human beings have differing backgrounds, talents, interests, personalities and levels of intelligence. Under this current system, people are punished because they are badly adjusted to the needs of the labour market, often through no fault of their own. Even in developed nations, there are many homeless and mentally ill people who are abandoned on the streets.

 

Nobody deserves to become ill or die due to their social incompetence or physical disability. All human beings deserve to have basic dignity.

 

Consumption, how?

 

People receive their income in accordance with the rules that the citizenry have agreed upon.

 

Then the question arises, is there any difference in how trade and exchange is supposed to work in comparison to the current world?

 

Yes, there is a difference.

 

Under our proposed model, the consumer allocates shares of her energy credits to various goods and services. Instead of each actor paying money to the prior actor in the product cycle, from consumer to raw materials extractor, the consumer allocates energy credits which represent the environmental cost of the entire product cycle for producing and transporting x numbers of a particular product.

 

This means that the demand – or the will of the citizens – will have a larger influence over the supply side. The consumers will decide, through their allocations, what will be produced, and from which producers they want to purchase their products.

 

On the other hand, there will be no advertisement in the manner there is today. It would make no sense at all to try to actively encourage consumers to increase their rate of consumption. Moreover, goods will be assembled only when requested by the consumers. We believe that such an organisation of production will serve to decrease the production of for example electronic products, cell phones, fashion clothes, magazines and other products, especially as many products in today’s world are never sold or used.

 

 

Reduced labour hours

 

With the vastly decreased production rate, and the production ceiling, there would be no more needs to try to increase demand and thus the production rate of the good. Moreover, with the system of Energy Accounting, employments would not anymore be founded on the principle of maximising profits, but rather on the principles of maximising social utility. This can be used to reduce unemployment significantly (we will return on that issue in the next article), especially within the sectors of education and healthcare.

 

If more people are gainfully and meaningfully employed within a sector, the labour hours of all the participants can be reduced. They will be able to spend more quality time with their family and loved ones, and more time in pursuit of their interests and passions. In short, they would have more time to fulfil their human desires.

 

On the other hand, several sectors will shrink and disappear. This will of course serve to free more labour to be employed in gainfully productive jobs.

 

The ramifications of this should of course however be left to the local communities to determine, as our proposed alternative to this current system – as you will see in the next article – is characterised by a high degree of de-centralisation and organisational flexibility.

 

When it comes to barter between individuals, it is best left to the regulation of the local communities as well.

 

Wise growth

 

This new form of socio-economic system that emerges through Energy Accounting will probably have slower rates of growth in more than a few sectors. This does not however mean that there will be zero growth.

 

Rather, the amount of energy credits – or rather the purchasing power of said energy credits – will increase as new technological innovations are arriving, which are making production, transports or resource extraction more ecologically friendly.

 

Of course, the existence of such a system would stimulate inventions that would save energy and reduce the amount of materials used in production. In short, stimulating more sustainable ways of utilising energy.

 

Summary

 

Energy Accounting as a design offers several potential benefits, both to the well-being of the biosphere, the harmony of the communities, and the quality of life of human beings. These benefits are the following:

 

Ecological

 

·         Real-time awareness of the state of the planet.

 

·         A production ceiling marked by the renewal capacity of the planet, ensuring that the biomass is not degraded and that biological diversity – Life as we know it – would not be harmed.

 

 

·         The cost of the product in terms of purchasing cost will reflect the environmental stress exerted over the environment.

 

 

·         Cheaper relative costs for purchasing more environmentally friendly products.

 

 

·         Total balance between demand and supply, through a demand-driven economy.

 

 

·         A decreased production rate.

 

 

·         Stimulate innovations that reduce the energy usage and materials, and increase the sustainability of goods and services.

 

Social

 

·         A guaranteed basic income for all the participants in the system.

 

 

·         Guaranteed housing, healthcare and education.

 

 

·         Reduced labour hours, allowing for more time to be a human being.

 

 

·         No forced long-term unemployment and social alienation.

 

 

A scientific path forward

 

EOS is aware that this system is untested, and that there are many questions that remain unanswered. For example, we do not know how human incentives would respond to this new socio-economic environment. Will people for example – during the end of an Energy Survey period – consume frantically to not lose their remaining energy credits? Or will people try to avoid work?

 

We are not a political movement, and do not aim to try to introduce this system tomorrow on a global scale if we had the chance. That would be highly irresponsible and immature. It could lead to unprecedented disasters, and actually to consequences that would damage both the Earth and the human race even more, and bring us farther away from our goals.

 

Instead, we aim to test Energy Accounting on a limited scale, during different conditions, to be able to judge what parts of the idea that works and what parts should be adjusted or abandoned altogether. Any adverse effects would happen in a limited environment. Our goal is to allow Energy Accounting to evolve and develop itself through the interactions of networks of humans, collaborating with one another in a voluntary and rational manner.

 

We are also aware, that if Energy Accounting is ever implemented, it will look different – perhaps even alien – to the current design. That does not bother us. We embrace evolution and development.

 

Energy Accounting does neither, if ever implemented, represent the final step in the evolution of the human civilization. Rather, it would then just be a step towards another, hopefully superior way of managing resources. After all, we would one day stretch beyond the Earth, and throughout the stars.

 

Final words

 

 

The important thing is that the new system, during the time it is implemented, should fulfil the two core objectives.

 

First: That no more should be taken from the Earth than what the Earth can replenish.

 

Second: That all human beings are given access to basic standard of life.

 

Hopefully, the 21st century will be the century when we eliminate the triplet evils of poverty, illiteracy and famine. Despite that we are facing an environmental challenge, greater than any before, it remains the hope and conviction of EOS that humanity can unite and overcome Her adversities and help a better human civilization to emerge.

 

We can do better than we are doing.

 

And we can become better than we are.

 

Or else our light will vanish before it reaches the farthest star.”  – Ronan Harris, VNV Nation

What does the EOS want?

Galaxy

By Enrique Lescure

Introduction

The Earth Organisation for Sustainability is sometimes very hard to define as an organisation. We are aiming to engage ourselves in research, application of research and socio-ecological projects on local, regional and global levels.

Our end-goal is to help the Earth transition towards a sustainable civilization based on the foundations of the Three Criteria. The basis of our critique of our current system is how Fractional Reserve Banking is creating an addiction to exponential economic growth. We have also created a hypothesis for a post FRB-system called Energy Accounting, which you may read more about in the freely available book The Design.

However, even if you do agree with our goals, you may be skeptical of our ability to reach them.

What is our plan really?

This article will briefly summarize how we believe it should be done.

TL:DR summary

  • Before implementing Energy Accounting, we will have to test it.
  • We will apply a holonic model when we test our hypothesis, so that different groups will test different versions.
  • This will be done within the framework of a network of holons – a proto-technate.
  • A successful initiation of the proto-technate will be presented to the public as a step towards the future.
  • A mass movement must be formed demanding a transition towards a realistic alternative to the current system.
  • A compromise must be reached with the powers-that-be, but only on the condition that the three criteria are fulfilled.
eco-farm

adamappleseed.wordpress.com

How to test Energy Accounting?

There will be several different types of testing. The first and simplest model is computer simulations, which can simulate simple to complex socio-economic environments utilizing EA, as well as provide indicators on how well the system will perform under conditions of stress. There could also be arranged simulators were actual users are acting under an EA system.

No computer simulation, no matter how advanced it is, can however account for the complexity of the real world. Therefore, it is essential that aspects of EA are tested in real world-environments. This poses ethical and logistical challenges.

Ethical challenges

Since the tests will involve real human beings, it is essential that all participants are taking part of the experiment in a voluntary manner, are fully informed on what Energy Accounting is and what EOS have for aims with it. It also means that the EOS must cooperate on an equal and respectful basis with the participants, that the participants should have the opportunity to end the experiment, and that action plans must be produced to deal with harassment issues, labour rights issues and environmental issues.

Logistical challenges

Energy Accounting will, if ever implemented, represent one of the greatest changes in how the human being relates to the surrounding environment. Local environments behave different from the global economy, and performance rates will probably be artificially increased by the genuine enthusiasm of the participants (compare for example the voluntary Kibbutzes in Israel with the forcefully collectivized Kolkhoz system in the old USSR).

One of the greatest challenges, however, is the fact that we are going to test a system designed for usage on global scale on local scale. That means that there would need to be several types of tests, relating to various aspects of Energy Accounting. The Energy Survey for example could not easily be crammed into local experiments, but different types of Energy Survey systems could be tested through computer simulations.

The remainder of the Design can be differentiated into several aspects, namely Energy Units, types of distribution, the incentivization issue, the bottleneck issue and the time factor issue, as well as other aspects which we have not thought of but which will appear from beneath the surface when the first experiment results are coming in.

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The Holonic way of solving things

Dr Andrew Wallace therefore suggested that the best model for testing the hypothesis of Energy Accounting would be to run several tests simultaneously. This would necessitate that various different groups test the model in different parts of the world. Many of the groups, if not most, will fail to reach satisfactory results – and that is good, since it will pinpoint us towards problems with The Design. Those groups which are successful will see their methodologies be copied and applied throughout the wider network.Voxel8-Printer

Practically speaking, the different groups will organise actual production, of energy, food, small-scale industry and large-scale industry, using environmentally friendly technologies to achieve their aims.

After that point, the groups can interconnect with one another, forming larger holons coordinating certain of their features, yet again in an organic, voluntary manner. That means that for example a solar power plant holon may provide electricity to a group of biodomes cheaper than the market, and in return receive back food to offset the cost for staff meals.

While still a long way towards Energy Accounting, that is a step in the right direction. Not all holons may test Energy Accounting either, some may instead aim to test Time Factor Economics or Labor credits. The important thing is that all experiments aim to achieve the goals stated by the three criteria.

Wallace-2

The Proto-technate

The Proto-technate is simply the network of holons operating within the wider project.

In order for this system to be able to operate, it must during the first few years be operating entirely within the context of Capitalism, in order to garner revenue that can be invested into the first core holons. That also means that the ethical and ideological guidelines, as well as the structure of the early proto-technate, must be designed to take into account that there is a risk that the project can forget its aims.

Even at the medium time prospect, the proto-technate will be dependent on items produced within the current system. The interaction at that point will be conducted by specialised holons known as Interface Companies, which will be responsible for transacting capital and administering certain trade operations.

If external organisations want to join the proto-technate, they would be welcome to do so as long as they fulfill basic human rights and either fulfill or aim to fulfill the three criteria.

The goal is that as many things as possible which today are produced outside of the proto-technate should be produced inside, which would improve on our ability to test Energy Accounting.

Occupy Wall Street

The next step is in the hands of the people

The next logical step – following the development of a successful alternative socio-economic system – is that we should communicate it with the public and show them an alternative to the more and more collapsing Debt-based Monetary System.

At that point, political alternative should coalesce, and we should make sure to present our results to these alternatives and uphold an open communication with all parties within the global opposition, provided they are upholding basic human rights and the three criteria.

We will not need all 7-9 billion people of the future to have a transformation. We will “just” need 700-900 million people. That is why we must improve our ability to communicate through social media and to build a vast contact network of activists and practivists, aiming to demand a transition towards a sustainable system. This movement has to comprise the poor and the middle class, people from the first world and the developing world, first nations-organisations, women’s rights organisations, progressive religious groups, secularists and climate activists.

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Last step: Reaching a consensus with the establishment

The last step of an initial transition towards a world fulfilling the Three Criteria is to establish communication with the elites. Ultimately, the global elite are people too. This means that they have an interest in a world that is sustainable for their children too. While a lot of their powers and privileges are tied up to the current system, the system is gradually self-destroying at the same time as it is destroying the planet, with a mountain of debt growing every second. There is literally no money on Earth which will not be engulfed by debt, which means that even according to the logic of the current system, we are all functionally bankcrupt.

EOS is not a revolutionary political party, but an applied research group aiming to protect life on Earth. That means that we have a duty to communicate with everyone and try to reach a consensus. The consensus however must be rooted in a future where we can safeguard the three criteria, which is impossible by having Fractional Reserve Banking running rampant on Earth.

That is why it is essential to – when there is a realistic alternative system ready to be implemented and a mass movement advocating it – to negotiate about the future of this our Earth. Most likely, the end result will be a hybrid system, holding traits of both the old and new systems. That does not mean that our side should not make its outmost to try to win as many concessions as possible, but within a framework of a civilized compromise.

Throwing the Earth into more chaos will be the last thing we would want for the future.

futureCity

Future city, by Alain Descamps

In the really long perspective

We should follow our hearts, and aim to begin the transition towards a future sustainable civilization. But we must do so with cool heads and in a realistic manner. I know that the situation is perilous, and it grows ever more perilous every day. But that is no reason for panic, but rather to become even cooler and more level-headed.

Even if the end-result is just a hybrid system, that is not problematic. As long as it solves the problems with the unsustainability of the current global socio-economic system, fulfills the three criteria, as well as begins restoring the Earth’s biosphere, we should be able to live with it.

Especially as there are no end-results. No system is ever static. If we have established a hybrid system by the year 2050-2060, it can be gradually turned into a form of full Energy Accounting by the year 2150-2160, and from that towards an Abundance System where costs have shrunk so low and efficiency increased so much that everything produced is virtually free by 2250-2260.

And it can happen even faster.

For this to happen, we need you however.

Our new website will soon be launched. That will mark a new beginning for the EOS. We have a new Board of Directors, elected this May 2015, and it is time that you soon will meet them. We have many on-going operations. We have a growing presence on Facebook. We have a vibrant group in Umea, Sweden.

Join our Facebook group here.

Like our page here.

“Moneyless” is simply a bad term.

hobo-with-a-shotgun_320

by Enrique Lescure

Introduction

EOS is a group that aims to build a post-monetary  [originally “moneyless”] sustainable Terran civilisation based on science. We want to build things, test things and show the world that we can live well in balance with nature and without money.”

I would argue that sentence serves to create confusion. While probably a majority of the Earth’s population has a relationship with money characterised by a sense of anxiety and dread for when the bills are due, there is another – significant – minority that are neutrally or positively disposed towards the concept.

For them, and also for many others – who too well are reacting with dread when hearing the term “moneyless” (since they are accustomed to a moneyless existence in a world where you need money to survive) – the message outlined in the quote above is not evoking positive reactions.

Ultimately however, we as a movement need to use language in a very precise and consistent manner, and having too much of a focus on money without properly defining money is a strategy that can lead to us being misconstrued or being interpreted as out of touch with reality.

Ultimately, the biggest problem with money today, from an ideological and political perspective, is that the general public does not know what money is.

TL;DR

  • Money was originally an organic invention born out of trade exchanges.
  • Nowadays, money is created through the issue of debt, which requires constant exponential growth.
  • That leads to the destruction of the Earth’s biosphere.
  • The EOS has devised an alternate system where we are basing the value of our currency on energy instead of market demand.
  • We intend to test that model, not implement it immediately.

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 Money as a result of barter

One of the most irritating misunderstandings an EOS lecturer could endure is when – after they have gone through the trouble of explaining Energy Accounting – parts of the public still imagine that we want to go back to barter. Therefore, it is important that the lecturer tries to explain our stance that we do not wish to return to a pre-monetary system but go forward to a post-monetary one.

Some people may even think that barter is better than using money, most likely out of aesthetic or cultural reasons (especially those who find Gift Economics to be a good idea). However, money arose already before minted coins, and before anyone called it money.

The problem with barter is that the sheer amount of goods tend to make trade very complicated. If individual A desires good X in return for good Y, but individual B (who possesses good X) doesn’t want good Y but good Z, individual A has to go to individual C who has good Z and desires good Y. Eventually, such organic markets tend to centre around a “key good”, either an actual good (like dried fish in medieval Sweden), or a symbolic token (like colourful pearls as in some Caribbean cultures) which by unwritten agreement and cultural norms become the good that is used as a currency to gain access to the other goods. Often, there were several currencies in operation at once in such systems, and they tended to vary regionally.

Money did not arise with coinage, but grew organically from society.

The reasons why kingdoms and city-states started to mint coins was to be able to pay armies and establish control over trade flows, in order both to be able to raise revenue to protect the population and to wage wars against neighbouring political entities. Another good thing with metal-based currencies (from the perspective of the monarchies) was that they were naturally scarce (unlike sea-shells) and did not decay over time (like dried fish and eggs).

The main problem with metal-based currencies during the medieval age, was that they were deflationary, meaning that money had a tendency to accumulate in the hands of major land-owners that provided the cities with food necessary for survival, creating enormous inequality and hampering trade. To counter that, kingdoms and city-states generally issued coins during festival years to stimulate trade periodically.

Money as debt

Money_Tree_by_angiebro

Fiat money gradually evolved since the late 14th century, originally born amongst Italian banker families in the wealthy city-states of the Po Valley. It largely co-existed with metal (gold and silver) as an insurance security for centuries, until it finally started to stand on its own legs in 1971, following the abandonment of the Bretton Woods system.

I have explained in detail earlier about how this system is operating, so let me just reiterate it in a very short summary.

Banks operating globally, nationally, regionally and locally, are today providing credit to companies and consumers alike. These credits are actually multiplied from the banks reserves – meaning that the banks are actually lending out more capital than they have. Capital that must be paid back at interest.

This credit-based system demands constant economic growth, since money that is issued at must be paid back. Since you cannot create value out of thin air, economic production needs to grow to ensure the ability to repay loans. Of course, new loans are being issued continuously, guaranteeing that the total gross domestic debt of humanity always is larger than our gross domestic product, bonding us to exponential growth forever.

The problem

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Since economic production has to grow exponentially, that means that our collective effect on the Earth’s life-supporting systems have started to make said systems decay and degenerate at an accelerating pace. The climate is disturbed, the oceans are dying, soils and freshwater reserves are depleted and land-based eco-systems are being replaced and outcrowded by destructive mono-cultures.

This is not only a question of continuous destruction, but also of the creeping realisation that we’re causing a sixth mass extinction. At the current rate, we will move towards a global biosphere collapse by the end of the 21st century.

The challenge

architecturelinked.com

architecturelinked.com

The Earth Organisation for Sustainability needs to be able to explain why the current system is deeply problematic and how it destroys the life support systems of the Earth. We are moving in the right direction, but overally, most people still believe that the current fiat-based growth-dependent monetary system is sound and see it as as natural as breathing air or drinking water.

The challenge must be to systematically educate the public about the facts of how the current system both has created the modern western civilization, and is about to destroy it. To create an environment where the system is no longer seen as accepted or natural or “the best possible system”, but as something artificial that has been imposed over us and which is not stable nor sustainable.

The current fiat system needs to be delegitimised, but it also needs to be explained.

If we just attack “money” as a concept, we will mainly attract moralists and technological luddites. Therefore, instead of stating that we want to abolish money, we should state as it is – that we want to explore the potential for an energy-based currency based around the capacity of the planet to provide for our needs.

We must be precise when we use language.

The Real Economy

modern_environment_by_mozzila_111-d5cgv3z

By Enrique Lescure

Introduction

Right now, the air is buzzing with the rumours of the next financial crash. This is starting to become an autumn tradition in the more conspiracist camp. The Petrodollar is going down, it is time to invest in gold, weapons or canned food. This time, however, even mainstream newspapers are warning for an impeding financial meltdown – which everyone with the slightest understanding of the current system and of Fiat currencies know is inevitable.

At the same time, we must bear in mind that a Fiat system can theoretically be rebooted by the addition of credits which are pumped into the finance industry. When these credits are not corresponding to what increased growth rates are needed, another financial crash will happen, a recovery occurs and the economy stabilises for shorter and shorter intervals with higher and higher structural unemployment as a result.

As long as there is reason for faith in economic activities, the system can be rebooted again and again, despite its glaring similarities with a pyramid scheme. There is a relationship between the Fiat economy and the Real economy, though it is often vague and the two systems are standing on different foundations. While one rests on human estimations, gut feelings, optimism and wishful thinking, the other simply is.

This entry will be about what the Real Economy is, and what consequences it will have running it to the ground. Sadly, one of the aspects of the Fiat system is to incentivise economic behaviour that is serving to run the Real Economy into the ground.

TL;DR notes (because I like lists)

  • Since the Cambrian explosion, the Earth has formed complex multi-agent biospheres that are built around Earth’s natural cycles (sunlight, perspiration, rainfall, seasons), but which also are building themselves by slow but mostly continuous increases in complexity.
  • For all what matters, to have a human economy demands interaction with the Earth’s biosphere, and human activities will affect the biosphere.
  • Thus, the human economy cannot be seen as something separate from the biosphere in itself, but is essentially a part of what builds this planet.
  • This also means that the biosphere will affect human well-being, and that this well-being depends very much on how we treat the systems on the planet that are making the biosphere possible.
  • Ultimately, what we need now is to unlearn the cosmology of Individualistic Consumerism, and to approach the issue of what the economy is by looking at total resource flows and not just focus on the human activities.

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On the Real Economy

The Real Economy is not linear but a multi-agent system, meaning that each species and each individual is both on the receiving and returning end of the system, and the purpose – rather than growth – is for individuals and species to survive and improve their survival skills within this context of existence. The system is interdependent with the soils it has created, with the groundwater and rainfall and with the climate it is engineering.

The cycle of ice ages and warm periods are partially affected by the amounts of trees, binding greenhouse gasses. Colder periods lead to a drier climate which in turns lead to forest fires that are releasing carbon dioxide into the atmosphere, increasing the average temperature. This leads to a moistlier climate that grows forests and bind carbon dioxide, slowing down the increase in temperatures.

A growth in the amount of vegetation increases the number of herbivore species, which creates a good opportunity for carnivores to increase their numbers as well, until the collapse of the herbivore population allows the flora to recuperate. As the carnivores are decreasing in number, herbivores can return to the fray.

This is the real economy. It has existed since time immemorial. As it gradually grew, it has transformed itself from a few one-celled organisms stewing in a primordial soup, into a vibrant dynamic equilibrium that can recuperate from mass extinction events such as the Cretaceous-Tertiary Meteorite that wiped away the dinosaurs. This economy is characterised by a slow, gradual increase of biomass and of complexity, off-set periodically by extinction events which could have destroyed complex life on Earth.

We can imagine a countless, countless number of Earths out there, tens of thousands of light years from us, where life has been wiped out by meteorite impacts, volcanoes, supernovae or climate change. There is perhaps an even greater number of worlds where life has never evolved beyond single-cell or even sub-cell organisms.

It is truly a miracle that our Earth has survived five mass extinction events and has built six biosphere regimes.

And this Earth is what allows you to live, to breathe and to aim for your objectives.

The economies of human civilizations, no matter how they look like, have all been dependent on the Real Economy, the Biosphere, and are thus – no matter if they want it or not – a part of it.

By Stella McCartney on Prezi

By Stella McCartney on Prezi

The Real Deficit

Often, we hear that many western economies are suffering under public and private debt, which can either be solved – within the framework of Fiat currencies – through either stimulus (to create growth that can allow us to grow the economy) or through austerity (cutting back the provision systems for the weakest members of society to save money). Often, these two policies are following one another, first a stimulus to the financial institutions taken from the tax payers, and then a punishment of the tax payers and the poor by tax increases and welfare cuts.

In the long-term however, only one deficit matters.

That deficit is marked by the Earth overshoot day, the day when our resource usage exceeds the ability of the planet to provide for our demands without the global biomass and biodiversity shrinking. This means that we have a global ecological deficit, which has grown above the limit since the 1970’s.

Five of nine vital life-supporting systems underpinning the biosphere are today being ravaged by the need for infinite exponential growth caused by the credit-based fiat system. The climate is being disturbed, the soils and the freshwater reserves depleted of nutrients, the land-based eco-systems are being outcrowded by artificial, linear production areas, and the oceans are being outright sexually molested.

All of this means that we are heading for a sixth mass extinction event, caused by our current civilization, within the next 100 years.

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The root cause

The root cause for this is actually what we think of as our “economic system”. The creation of “money” is – through fractional reserve banking – preceding the actual creation of capital. That means that our current system is reliant on credits, meaning that for the system to survive, money must be used to increase economic production, by creating demand for products and satiating said demand.

A reduction in growth rates is not enough, since the growth must at least follow the increase of the amount of debt in the system, otherwise interest rates will go up and the social stability of the system will be threatened. Thus, the system in itself incentivizes economic activities that are destroying the Biosphere, and is rewarding behaviour that strives to minimise costs in terms of investment and maximises outcome.

Environmental Economics of the type where the needs of the Biosphere (i.e the needs of Life on Earth) is placed below the needs of maximising economic growth, are a consequence of the perverse idea that an economic system which has developed for around 200 years is more essential that an economic system that has existed for 65 million years.

Economic growth has one good effect, and that is an increase in living standards. The only good argument left by growth proponents is that within the next 50 years, a person earning €1,25 today would earn €5 instead (and afford a car). That is however offset by the fact that economists generally have little knowledge of how much damage our environmental destruction would do on our eco-systems in the long run, and that the system will invariably collapse.

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Energy Accounting as an alternative

Energy Accounting is described in more detail in the article linked herein. We do not know how it will work out in real conditions yet, which is why we must test it. There are potential drawbacks and bottlenecks as well. The goal with Energy Accounting is however not just to install itself, but to fulfill three criteria which we need to fulfill to have a sustainable civilization.

Thus, Energy Accounting is designed as a tracking system, to keep an overview of the resource flows of the planet. It is designed as a post-monetary currency which aims to create a better balance between demand and supply – through creating a system where things do not have to be produced before there are willing users. It is also designed as a system which factors in the demand and supply curves of the Biosphere itself, thus incentivizing economic actions that are either neutral or beneficial to the well-being of the planet, while penalizing actions that are damaging to it.

Within the Earth Organisation for Sustainability, we are aiming for the testing of Energy Accounting, to see how aspects of it can work and how we can improve our Design.

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Summary: A strategy to claim the problem formulation initiative

We must – as a movement – always strive towards focusing on the Real Economy. While we must accept the existence of the crumbling Fiat system for now, we must work towards a transition away from it, by transitioning away from looking at the world through the lenses of the City of London and Wall Street.

The Fiat System ultimately relies on faith in its regulations. It will crumble, probably faster than the Biosphere itself. The challenge is to transcend the worldview where the greatest potential disaster is a stock market crash and a massive hike in unemployment.

How we do that is not primarily by questioning or accusing or being obsessed by the injustice of the current system, but by instead laying our focus on the Real Economy, and how we as a species are embedded in it and how most of us for the foreseeable future will be dependent on it.

That does not mean that we should not focus on social issues, but that we must find a way to integrate social issues into the narrative of the Real Economy.

The Earth Organisation of Sustainability does not deal with the binary world-view of eco-systems contra humanity. Instead, we view Life in itself as the most valued and cherished concept. Thus, what is good for the Biosphere is good for you, as an individual, and for us collectively as a species.

We must as a civilization make a conscious choice to accept the truth – that we are a part of the Biosphere and that we need to model our civilization in a manner that integrates it into the Biosphere and integrates the Biosphere into the infrastructure. This also means a life-positive outlook, where we have an obligation to design our societies so they allow individuals the freedom to express themselves, create, form their lives and achieve safety, meaning and liberty.

After all, as a system, the Biosphere strives towards more and more diversity and abundance. We should definetly try to mimic the beauty and splendour of nature.

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Dr. Andrew Alexander Wallace ~ 2007 – 2015

Andrew Alexander Wallace

Andrew Alexander Wallace

By Enrique Lescure

Introduction

“Nice, just don’t mention our failed invasion of Poland.”

I asked Andrew if I had the permission to write this post, and he approved of it with the quote above – containing a characteristic joke from him. For eight years, Andrew was the director of the Earth Organisation for Sustainability, and also the most important theoretician of the movement. For a long while, I have aimed to write this post, but have not done it until I received explicit approval by Andrew.

Andrew’s style of leadership was partially due to his personality and background. A self-professed nerd with dry British humour, a keen interest not only in sustainability and robotics, but also in British war history (partially through the military traditions of the Wallace family) and theology, Andrew provided EOS not only with his theories and his thinking, but also with a warmness under a cynical and coarse surface.

This post will explain how Andrew has influenced EOS, and where we were when he was elected chairperson of the Board and where we are now, after his terms has been finished.

TL;DR Summary

  • Andrew was not originally elected in an annual general meeting, but elected by the board following the resignation of the previous director.
  • The background of Andrew’s thinking was in the application of distributed systems theory on society.
  • Andrew presented the holonic systems theory.
  • Andrew pioneered the proto-technate theory.
  • During Andrew’s term, The Design was completed.
  • Andrew is a visionary who has taken inspiration from Gene Roddenberry, Buckminster Fuller, and who strives towards a progressive and rational society.

The formative years, 2005-2007

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by Daniel Lovas

The small group of people which originally formed the EOS were originally meeting one another on the Technocracy forums around 2003-2005. What was the unifying factor was the realisation that the current socio-economic system is inhernetly unsustainable, and that there should be an evolution towards a more sustainable form of resource management. As the command economies of the old east bloc had failed, people investigated more obscure and forgotten alternatives – and what we encountered there was the model of Energy Accounting. Though most of what would later become the core of NET/EOS were intrigued by the ideas of Energy Accounting, soon there arose differences between the largely European newcomers and the North American forum administration on that board, since the North Americans stressed that their proposed system had no serious flaws, that it was only applicable to North America and soon restricted forum access for Non-North Americans. Thus, the NET (Network of European Technocrats) was formed and soon migrated to a small, obscure freeware forum. In this group, Andrew played a central role in developing the ideas of Energy Accounting and how resources could be managed through it, which transcended the original scope and purpose of the North American design. The NET had two directors before Andrew, neither of whom sat for a very long period and neither of whom were able to keep a consistent line, due to the geographic separation of members. Thus, following Mansel Ismay’s resignation as NET director, the Board decided to ask Andrew if he could become director, and Andrew replied something in the style of, “well, if no one better comes along”.

Holonic Distribution Theory

From a lecture with Andrew Wallace

From a lecture with Andrew Wallace

Andrew – as an engineer – saw the proposed model by Technocracy Incorporated as centralised, semi-authoritarian and anachronistic. During the 1930’s, he argued, technology had indeed made massive centralisation the most efficient way of managing production. Nowadays however, technological development was (and is) pushing society towards more and more of networking solutions and collaborative efforts through the intelligent usage of information technology.

Thus, Andrew originally proposed the holonic systems model to describe both how the socio-economic system proposed by NET would organise itself on all levels, and how we could reach that stage of development through an organic, participatory and libertarian transition.

The holonic model means that the functions of society are organised through autonomous project groups which organise in a holarchical manner, at a large extent through transparency and voluntaryism. This means a self-aware society that is able to correct its own mistakes much like cells in a human body knows how to repair the body if it has sustained injury.

Andrew saw these “holons” as being coordinated – but not ordered – by functional sequences which contained one or several representatives in every project group. These would be responsible for transmitting information between holons and be authorised with the power to interrupt projects if they go out of hand (for example if a project group turns corrupt or start violating basic human rights).

If larger projects need to be undertaken, several project groups join together, forming larger project groups. And (to paraphrase a well-known Slovenian philosopher) so on and so on.

This model was in many ways a polar opposite to what Technocracy Incorporated imagined the future should look like, as they saw the taylorist model for organising industrial production as optimal.citizens-in-participatory-democracy

Another difference, which was even more stark, was that NET was always clear with that it did not want to abolish democracy or independent courts, which Technocracy Inc. saw as inefficient systems prone to corruption, instead imagining that engineers could solve these problems far easier by design.

Andrew imagined the technate not as a new socio-economic system and as a new system of government at the same time. Instead, he saw the formation of a technate as the conscious part of a socio-economic system, while he wanted politics and justice being exerted by a mixture of democracy and constitutionalism. He envisioned a parallel system to the technate consisting of local and regional councils elected by direct democracy.

The Design (2011)

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It could be said that the years of 2005 – 2010 were transitionary. The movement transcended the original design of Technocracy Incorporated in so many ways that it became more and more evident that it was becoming something more, and to many extents something else. This process was not without considerable pain and friction within the movement and within the Board itself.

Nevertheless, in 2011, the EOS presented the first edition of the book known as The Design, which is freely available. It was a collaborative effort within the EOS board, and also serves to illustrate Andrew’s style of leadership. Andrew expected independence from the board members, and never stressed himself as a sort of guiding force. There were never any attempts to form a cult of personality.

This attitude also moved outward, towards detractors and trolls. Andrew generally took their presence with calm, and always stressed that “only testing our design will prove if we are on the right path”. This emphasis on the scientific method and on using a language of caution regarding our theories did not serve to increase our popularity, but instead strengthened us as an organisation reliant on science and an honest questioning of ourselves.

The later years

gizmodo.com

gizmodo.com

Andrew arranged several evening lectures at Umea University every term regarding the Design, and was always active in the formation of the theoretical tenets. During the later years, he aimed to form a collaborative effort with the RBE Foundation, the Atlas City project, the Future Project, World Era and the New Z-land Project, known as the Terran Technate Consortium. The goal of this ambitious project was to start building the technate by joining the EOS together with other associations, and beginning small by having a website with a common register. This project soon came to an end, due to the partial or complete collapses of the other associations involved in it. However, the EOS managed to collaborate locally with Green Free Will, and helped them gain a grant for their biodome project in 2012-2015, which greatly improved the situation for everyone involved. During that time, however, Andrew himself was not as much involved as previous, as he had other commitments and interests, amongst them to his engagement for protecting society. During all the years I have known him, Andrew has been engaged in support activities to for example help find people who have disappeared. He has been engaged in amateur radio, in programming, in outdoor-life and in robotics. With interests ranging over a wide field, he has often been an invaluable source of information and knowledge.

Summary

by the courtesy of Andrew Wallace

by the courtesy of Andrew Wallace

Dr. Andrew Alexander Wallace contributed much to the evolution of the EOS, and formed the core tenets of the holonic systems theory as applied on The Design. Much more a theoretician than a leader, his style of leadership allowed the other board members the freedom to pursue the areas where they contributed best towards the overall goal.

His passions were the Earth, Truth and Science, and through his engagement to forming the ideas of the EOS – but also his willingness to question them – he contributed in more ways than he himself probably could imagine.

As his successor, it will forever remain an honour for me to have worked in two boards during his chairpersonship, and to have learned to know him.

Priorities: What must be done?

earth___stop_climate_change___by_h_4rt-d6eu3x11Enrique Lescure

Introduction

Why does the Earth Organization for Sustainability exist?

It can be argued that our mission is to design and test alternative socio-economic systems, but that does rather answer the how than the why. The why is so future generations of living beings, humans and other species, will have the opportunity to live on an ecologically and socially sustainable Earth. I believe that our name might indicate this too. There is a slight difficulty in this, however, which we must take into account.

We are living under a mass extinction

riholtz.com

riholtz.com

This problem, is of course that we currently are causing what could very well be the Sixth Great Mass Extinction in Earth’s History. Especially three issues have to be solved as soon as possible. The first one of these you all already are familiar with – namely antropogenic climate change. The second and third issues are the destruction of bio-diversity in the oceans (which might be beyond saving) and on land. These encroachments are caused partially by over-fishing and direct destruction of habitats, but also by pollution, medicines, artificial estrogen and the gradual out-crowding of diverse eco-systems.

All of this ultimately derives from a socio-economic system (fuelled partially by the bizarre values of consumerism) which values the following three months of growth rates higher than the previous 65 million years of evolution. At the current rate, humanity is using up between 133-150% of the Earth’s annual regeneration capacity per year. If we continue to move on this trajectory, we would basically have made most eco-systems collapse by the early 22nd century.

What must be done?

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The first thing that needs to be done, by all major institutions and actors, is to reduce our footprints with nearly a third, until we move slightly below the 100% treshold.

The achievement of this can be done independently from transitioning to the kind of socio-economic system that EOS envisions. But for the long-term well-being of the planet, it is necessary that we evolve towards a system where we can have a circular economy that sees all flows of resources being monitored to eliminate waste and bottlenecks and ensure the optimum usage of the resources.

As our house is burning, we need to implement some other policies as well, that in themselves would demand stark choices. It is about halting or outright stopping the devastation of the eco-systems. That would mean an inversion of the current priorities of the elite establishments, from Davos to Rio.

This places a dilemma upon us. Because the economy is built as it is now, where poor people’s complacency are bought not by promises of Heaven but with promises that their children would afford cars instead of bicycles or sandals, halting and reverting the expansion of most of the things we are doing right now will probably increase dissatisfaction temporarily, and can affect the lives of human beings adversedly.

Hard Greens can argue that we need not to be disheartened by any choices in order to save planet Earth. However, our movement is built not only on the values of bio-diversity, but also that we must create optimal conditions for human life to occur. Therefore, it is essential that while we advocate for a shift to a Earth-centred and rational approach to the current crisis of the Earth, that we also should protect and uphold the needs of individuals and communities, in terms of both their basic rights to live and to their civic rights.

Ultimately, the well-being of the biosphere is the basis of human well-being on Earth. At the moment, there are however very, very tough choices that have to be made, by everyone.

How EOS should approach this

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Or rather, how everyone should approach this…

There must be a broad consensus within the human civilization that this current path will lead to a new mass extinction, and that we must revert it, for the sake of the most important thing that the Universe holds – Life. It is unworthy of an intelligent species to destroy the conditions for this most valuable thing. Rather, an intelligent species should support life.

There should be honesty in that a transition towards a sustainable future will be painful, and will probably present the greatest challenge that our species ever faced. In fact, the first global challenge we’ve ever faced. The wrong way to approach this crisis is to claim that we can solve this within a few years time and that it would be completely painless. It can lead to more followers, but it would be unethical since it would partially be misinformation or disinformation.

We need to reach a concord with the various establishments populating the echelons of power. This one might be controversial, since the establishments (for obvious reasons) are the main benefactors of the current system. Thing is, even if you are wealthy and see this current system as a way for you to secure your future and the future of your children, your children’s future will be devastated too if we destroy the foundations for complex life on Earth.

We do not have the luxury for political upheavals or wars between nations any more. The more we procrastrinate and behave as if the problems can be solved by the next generation, the harder the problems will be to solve, and the more radical the means to solve the problems will be. Eventually, the problems will essentially be unsolvable and the issue will no longer be how to save the planet, but rather on how to save humanity.

EOS does not aspire to lead humanity. We are not a political party or revolutionary movement. We are not moralists, but pragmatics.

What we must do is to conduct our field tests of Energy Accounting and the Holonic model, and create a vast social network of like-minded individuals, while simultaneously advocating our issues and interacting with the public and with the various establishments in order to help contribute to the consensus regarding the issues that we all must face, since we all share this world.

We need one another ultimately.

Why the US Economy is in serious trouble

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By Mark Ciotola

How we arrived here

As EOS and Technocracy have long pointed out, our lassez-faire economic system is inherently unstable. Profits tend to accumulate out of the hands of consumers and concentrate into the hands of a few wealthy people. When the people who spend run out of money, then the people who save can’t get any more profits, and the whole system collapses. Ironically, during economic downfalls, many of the savers lose a lot of money, too, and even go bankrupt.

Upon the advent of earlier economic crises such the Great Depression, means were taken to prevent excessive concentration and control of wealth by the few. The founding fathers of the USA invoked an aggressive estate tax to prevent the emergence of an aristocracy and power that was was obtained by mere luck of birth. Antitrust laws were created to prevent monopolies. Labor unions were finally allowed to protect wages and the consumer spending so vital to the endurance of an economy. Banking legislation prevented the formation of banks that were too large to fail, and Glass-Steagall prevented banks from problematic conflicts of interest. Progressive tax rates diluted money out of the hands of the wealthy and some of it back in the hands of consumers, reducing dangerous build-ups and improving economic activity.

However, once the shock of the Great Depression ended, and memory of the social debt owed to the veterans of World War II receded, big business interests began to dismantle these economic protections. Progressive tax rates were significantly rolled back. Manufacturing was transferred on a near emergency basis to Japan and elsewhere to bypass North American unions. China was given most favored nation status by the USA that greatly accelerated this process. Banking “games” lead to the destruction and theft of the previously consumer-owned savings and loan associations. Glass-Steagall was revoked, allowing consumer banks to engage in especially risky investment banking operations. Such banks could now issue fraudulent consumer mortgages and package them into instruments for unsuspecting investors.

As consumers ran out of money, we increasingly became a “debt” economy. With domestic wages falling or frozen due to often subsidized foreign competition, consumers turned to home equity loans, student loans and credit cards to maintain their former standard of living. U.S. Federal Reserve chair Allan Greenspan called lenders heroes of the economy. As consumers could not afford to take on more debt, banks whipped up profits by doubling, tripling, etc. consumer loan interest rates. Rates exceeding 50% were common.

Finally, the wealthy couldn’t make enough money by actually producing anything or even lending to consumers at what were once legally usurious rates. They began buying and selling exotic financial instruments known by cryptic names such as butterfly options, derivatives, puts and calls. A particularly devastating was the “naked short”. It allowed a party to make large amount of money by selling millions of shares of nonexistent stock, flooding the market with this bogus stock until the market price of that stock collapsed and drove the underlying company out of business. The naked short sellers made fortunes, the newly unemployed executives received their $10 million golden parachutes, the laid-off employees received a few months of unemployment aid, and the pension funds/mom-and-pop investors received shallowly apologetic letters (if even that).

The only thing that saved the global economy from total melt-down was unprecedented government financial injections into banks, companies and certain national budgets (e.g. USA, China), and other stimulus measures.

An Economy on Life-Support

Supposedly, we learned our lessons after the Global Financial Crisis of 2008 nearly melted down the entire global economy. A few consumer protections were enacted. Banks were slightly more regulated, and given FDIC protection for their high-risk investment banking operations (this latter should really terrify you). Lending was tightened up for consumers. Pensions were cut. European economies adopted severe austerity measures. Numerous automobile manufacturers were sold off to China. Indeed, the global economy has regained some semblance of order.

Yet, DO NOT be deceived! This is clearly an economy on life support. The Global Financial Crisis has resulted in tremendously-increased concentration of wealth and consequentially has produced long-term damage to consumer spending. Once the stimulus ends, the economy will return to chaos. It may even do so with continued stimulus.

The following graph shows how ill the economy has become since 2008. This Sizzle Index is an indicator of US economic “heat”. (It was developed by a member of Technocracy). Notice the peak at the year 2000 due to the dot com bubble. A second peak during 2005-2006 represents the housing bubble. Then in 2008 and 2009, the US economy literally fell off a cliff during the Global Financial Crisis. The Sizzle Index decline was about triple the magnitude of the dot com/9-11 crash of 2001. This was an unprecedented drop in recent times. This you already know.

What you may not know is what happened next. Despite some improvement of the US economy, the Sizzle Index is not only highly negative, but it is still declining despite massive quantitative easing (a more polite term for stimulus). The life energy is literally draining out of the economy despite massive. The deflationary pressures on Japan and Europe show similar declines globally.

By Mark Ciotola

Figure by Mark Ciotola

Nowhere to go

Interest rates earned by large investors are at historic lows, due to ongoing stimulus. Meanwhile, these near-zero interest rates are devastating to retirees, and pension funds are in serious trouble. The Federal Reserve has been hoping to bring interest rates back up slightly, but the markets have been extremely resistant.

Federal Reserve must be terrified about recently increased volatility in stock markets. If the economy tanks again, there is nothing left of interest rates to cut!

Technocracy predicted this!

One may ask why we are trapped in such a doomed economic system? Technocracy pointed out these problems, but people have tended to turn to illusory Libertarian-sounding gimmicks. When wealth becomes too concentrated, lobbyist- driven legislatures cut taxes to allow money to “trickle down” to consumers. When wages fall, they open up more foreign competition to reduce living expenses. When consumers can’t borrow enough to make up for those lost wages, banks get deregulated and numerous consumer bankruptcy protections end. Do you see the pattern?

Endgame

The world probably won’t end due to this economic dead end we are racing towards. However, the situation may get so bad that many of us will wish we were dead: children we can’t support, the slavery of endless debt, and the environmental destruction of unrestrained economics. We either have to change our way to doing things or face a future conceivable only from the worst science fiction films.

Mark Ciotola is an academic researcher on the San Francisco State University. His interests are spanning a wide area, from Fast Entrope and the e th Law to Physical history and economics, Intellectual property issues, Carbon Labeling, Energy Accounting and Brown Dwarf and Exoplanet Atmospheres.

Our historical roots – on EOS and Technocracy Incorporated (similarities and differences)

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By Enrique Lescure

Introduction

The Earth Organisation for Sustainability was formally born in 2006, though the movement clustered out from a web community associated with Technocracy Incorporated. The first generation of EOS activists were closely interacting with younger members of Technocracy Incorporated (“Tech.Inc”). This association was largely broken in 2006, due to the fact that the EOS members were increasingly skeptical to the “katascopic model of administration”. Most of the forums were barred for people not coming from North America, and the EOS subsequently galvanised in our own forums, of which these are the current incarnation.

EOS has received two forms of criticisms for our previous relationship with Technocracy Incorporated. The first type of criticism is that it is naïve to establish our roots in an organisation with a controversial name (“Technocracy” usually has negative connotations), and the second was that we would have some kind of secret agenda, aiming to install a dictatorship of scientists and engineers.

This post will aim to define what Technocracy Incorporated wants, what EOS wants, similarities and differences and how these correspond to the respective zeitgeists of the era.

Why does this post exist?

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By Enrique Lescure

The Venus Project – another organisation very much inspired by Technocracy Incorporated – vehemently denies any connection with Tech.Inc. While The Venus Project mostly establishes that they exist due to the “inspired genius” of Jacque Fresco, they do affirm that they have connections with Buckminster Fuller’s ideas. There are assertions that Tech.Inc inspired Fuller as well, which if that would be the case would mean that TVP (The Venus Project) indirectly claims to be descended from Tech.Inc anyway.

The EOS could theoretically have done the same thing, and stressed our roots in the more well-known environmental movements. We could have claimed that the theory of Energy Accounting originated with us, and we could have changed the name of the technate concept.

That would however be dishonest, and give the impression that we have something to be ashamed of – something which is more than ridiculous.

While we are not a new version of Technocracy Incorporated, we owe much of our theories to the groundwork they built during the 1930’s, which we have expanded on. At the same time, we have rejected a few aspects of their design, and we are based around partially different value systems.

So this post exist to define how we are using terms in a different manner, and partially explore in which ways we use the same words but mean different things by using them.

What Technocracy Incorporated is (and was)

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Howard Scott, founder and leader of Technocracy

Tech.Inc nowadays seems to largely have ceased with any research and seems to be an organisation which mostly is centred around the US Washington State and the Canadian province of British Columbia – which as areas are very close to one another.

The organisation is centred around the Technocracy Study Course (1934), and the Technocratic Technical Continental Design (1972), which are still upheld as the foundational goals of the Tech.Inc design. During the later half of the last decade (2001-2010), a conflict emerged within Tech.Inc regarding the status of the 1972 document, which the critics claimed was a flawed text since it 1) was compiled briefly after the death of Howard Scott and 2) allowed for the formation of civil society associations, which the critics asserted would open up a venue for “propaganda” and “mind control”. Some individuals within Tech.Inc were also attacked for being too friendly to what would later become the EOS.

Howard Scott played an important role for Technocracy Incorporated. He developed Thorstein Veblen’s theories and assembled the scientists who made the original calculations for the Energy Accounting system, amongst them M. King Hubbert. He was the chief engineer of Tech.Inc between 1932 and his death in 1970. It can be argued that his leadership style very much could be seen as reminiscent of Jacque Fresco and Peter Joseph Merola, and that he often could alienate partners and allies. The movement very much declined after the Second World War.

What does Tech.Inc advocate?

The short summary is that Tech.Inc advocates a centralised hierarchical (katascopic) continental-wide resource administration of the North American continent, handled by technicians, scientists and engineers, with the goal of distributing an even access of all resources to all of the citizens.

Three concepts frame in this design.

Technocracy – expert rule, meaning that experts within the various sequences (departments) make all the decisions new org chartregarding their aspects of the production system, and are appointed by being elected by their peers.

The North American Technate – a centralised resource administration which would “abolish” political bodies, courts and corporations, and administer the North American continent as one single economic and technical area, using massive rationalisations to reduce labour hours.

Energy Accounting (Tech.Inc Variety) – All citizens receive for every two years an energy quota, which they could use to gather the consumer items they demand. In the original design (TSC 1934), production was centralised in a Fordist manner and was probably meant as a planned command economy, where experts made decisions based on surveys on how people’s consumer patterns would look like for the nearest period.

The Ideology of Technocracy Incorporated

Technocracy Incorporated has claimed that ideologies are “monetary-based-systems” related to “the Price System”, and that Tech.Inc is non-ideological and merely wants a “rational administration” of the North American continent. I would argue that the individuals representing Tech.Inc are probably honest when they believe that they don’t have an ideology, but I would argue that there is an ideology underpinning Tech.Inc, albeit not unique for Tech.Inc (which I do not mean as an insult, EOS’ ideology is for example probably not unique for EOS).

In the broadest possible sense, Tech.Inc’s ideology can be summarised through their statements “The Highest Possible Standard of Living for the Greatest Possible Number of People” and “a technical, administrative area“. In short, it is a worldview built on the idea that the purpose of society (or in the case of Tech.Inc, the technical nodes of control) should be to provide the members of society with a high standard of living. This should be achieved by the benevolent technical expertise and leadership of experts, who are supposedly neutral and who do not suffer from biases and interests (unlike politicians and capitalists).

This form of ideology can be called technical managerialism, and is built around the ideals of a consumer society. During theUrbanates 1930’s and the 1940’s, when socialist governments started to be elected into power into some European countries, they de-facto moved away from the worker’s struggle as a principle (since you cannot be reelected if you trash your country’s economy through class warfare) and instead moved in to embrace managerial experts who came to engineer the welfare systems of Europe and (to a lesser degree) North America, Australia and New Zealand. A similar process happened in the USSR, which after the Second World War tried to move towards centralised administration of “soft” issues, such as housing, consumption and recreation.

In Sweden for example, a type example of this ideal was the rise of cheap housing units, mass-constructed during the 1960’s, with their own communal gardens, gymnastics halls, saunas, club houses and communal kitchens. Similar projects existed both in continental Europe, North America, the Soviet Union and the developing world – with the probable epithome of this architectural tendency being the capitol of Brazil, which was entirely planned after the prevalent ideals of that era of late high industrialism/early consumerism.

Thus, the thinking of Technocracy Incorporated did not represent a small group of isolated and marginalised figures, but was rather a part of the mainstream of the early and middle 20th century. It was very much the definition of Late Modernity.

Flaws of that type of thinking

There are several flaws with this type of thinking.

The first flaw that I can see with the traditional technocratic type of thinking is the assumption that technicians and engineers – at least when unimpeded by the price system – will act objectively and for the objective good of all members of society. This thinking is very much based on the ideas of Positivism – that scientists are neutral observers of the world who are disconnected from prejudices of class, gender, race and cultural background. Also, the argument follows from the idea that human behaviour is governed very much by the prevailing economic system, and that when we have a post-scarcity society, humans will naturally become less territorial and domineering.

While it is partially true that humans to a large extent are affected by environmental factors, it is 1) also true that humans are affected by biological factors and by cultural factors, as well as by their own free choices, and 2) predicting human behaviour changes is possible, but never accurate. For example, the communal housing types erected from the 1950’s on to the 1970’s, have to a large degree been subjected to vandalism and mishandling by inhabitants – and often the vandalism has actually made the buildings look more interesting. These types of housing, devoid of culture, meaning and identity, turns into areas where people feel alienated from themselves and one another due to the compartmentalised design.

Graffiti-Street-Art-DAZE-LEPERThis follows another problem which both behaviorism and the kind of functional managerialism that flourished during the same time suffered from, namely a view of humans as consumer units. The idea is that humans basically are governed by their level of material comfortability, and that humans who are given a comfortable environment will become happy automatically.

As in everything, there lies a grain of truth in that. But if humans are not challenged and if their imagination is not stimulated, this materialism can soon turn into an existential psychological crisis, which will serve to stimulate consumeristic individualism and an inner sense of emptiness.

While driven by noble ideals, technical managerialism suffers from the following three problems:

Over-reliance on the impartiality of experts.

Over-reliance on behaviorist psychological models to evaluate mass behavior.

A lack of geist.

Similarities between EOS and Technocracy Incorporated

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EOS and Tech.Inc are both aspiring to the establishment of a Post-Scarcity Society, which would utilise energy certifikates to allow the tracing of product cycles throughout the system.

EOS and Tech.Inc both aim to create common resource areas which would be scientifically managed to create a desired outcome in terms of resource usage patterns.

EOS and Tech.Inc both ascribe to the foundation of physical thermodynamic flows as the foundation for socio-economic systems.

Differences between EOS and Technocracy Incorporated

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Technocracy – the main difference here is that EOS sees technocratic management more as a matter of methodologies than of managers. This means that our goal, rather than to have a hierarchical structure of engineers and managers, aim to instill throughout human civilization an appreciation, understanding and application of science – a new renaissance of learning and enlightenment. We want to give every citizen the opportunity to lead a project holon, to explore the stars, to dive with marine mammals, to study genes, nano-tech and ecology.

Tech.Inc puts an emphasis on management, while we put our emphasis on experiencing.

Energy Accounting – While actually defining the actual concrete system of Energy Accounting very loosely, it can be interpreted from TSC (1934) that it will mainly use surveys conducted by scientists to plan how the production plans should be formed. This is reminiscent of how The Venus Project has thought out their “Resource Based Economy”.

EOS on the other hand, imagines that the production of… well stuff… will largely be happen after people have allocated their energy credits. In this system, people use their allocation as a way to signal what holons they want to be responsible for the production of their items.

Another difference is that Tech.Inc did not originally envision for example using the Earth’s carrying capacity as a limit, and did not have any plans to use Energy Accounting as a mean to track the environmental effects from extraction to consumption to recycling. However, Tech.Inc suggested this later on as a proposal to solve the environmental crisis.

The Technate: The differences between the North American Technate and the Terran Technate Consortium is that the first structure is envisioned as a centralised industrial structure very much organised as a mega-corp, with sequences (departments) doing production orders from above and using centralised statistical analytics to reach decisions. It is a Fordian, Taylorist, Modernistic Structure.

The Terran Technate Consortium is envisioned more organically, as an integrated information market and a holonic system where holons cooperate and build up the system in a distributed manner. There will exist sequences as well, but these would not manage the production, rather they will oversee the process and give statistical input to holons to maximise the effects of their decisions.

This discrepancy is largely inspired by Distributed Systems Theory, and of course The Internet.

Internationalism – Tech.Inc wanted to limit the NAT to North America and a quarter of South America. The EOS believes that associations, groups and territories should be able to join and exit the TTC voluntarily, and our aim is a global resource administration area – or at least one as global as possible. The concerns are mostly of environmental nature. We live on one planet.

Environmentalism – EOS’ main aim is to reduce the usage of resources down below 100% of the Earth’s renewal capacity (right now we are using around 140% of the renewal capacity of the planet). We also want to devote a programme for reterraformation, moving away from mono-cultures to functioning eco-systems.

Democracy and associations – EOS wants to see a wide diversity of associations, clubs and cultures emerge and co-exist peacefully. The technate would not have anything to do with social issues, and there will be a parallel confederational system of autonomous communes, all adhering to a Constitution based around the principles that life is the most valuable thing in the universe. Tech.inc seems to besplit on the issue, with some members taking a libertarian approach while others are more restrictive. There will however be no democratic voting within the structure, and Tech.Inc has a position that criminal courts should be a part of the technate.

Ideology – EOS is developing an ideology centred on three ground principles, stressing the value of life, the value of empathy and the value of enlightenment. Tech.Inc claims to not be an ideology but to be “science applied to society” (very much like The Venus Project).

Science – Tech.Inc wants to have a referendum to install a technate and give the technical managers power to make the necessary changes. EOS wants to test their ideas first in simulated environments, as well as in communities, locally and regionally, before proposing that anything is implemented.

Final words

From the University of Toledo, US

From the University of Toledo, US

The EOS has many roots, but the four main branches are the physical thermodynamical economic analysis done by (amongst others) Technocracy Incorporated, distributed systems, environmentalism and social liberalism.

Our goal is to help creating a socially and ecologically sustainable world, where biological diversity and the diversity of human societies is upheld, where people have the autonomous control over their energy, food distribution systems, their communities and their right for self-expression and self-determination.

We can only achieve this goal by finding new ways of managing the Earth’s resources, that allows us to see the ecological development of our beautiful planet.

Technocracy Incorporated deserves gratitude since they provided us with the understanding that we can use thermodynamics as a method of tracking ecological and economic processes. There are many ideological and structural differences between our organisations, and between the societies we envision. However, understanding these differences and the different ways we apply the same words can be helpful to understand who we (EOS) are, and what we aim to achieve.

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