Miguel Afonso Caetano<p>"The idea here is to impose rules that limit the quantity of finance that commercial banks can invest in problem sectors. For example, credit guidance can be used to scale down commercial investment in fossil fuel production on a binding, annual schedule. But it can also be used to reduce other destructive and unnecessary industries: SUVs, mansions, cruise ships, private jets, industrial beef, dangerous plastics, fast fashion, weapons, advertising, etc.</p><p>To grasp the power of this, and why it is needed, we need to understand something about money. Money represents command over production. Whoever issues currency – whoever creates money – can mobilize production to do whatever they want. This power is held by states and should be understood as a public good. After all, what is at stake is the mobilization of our collective labour and the common resources of our planet. But under capitalism, the power of money creation is largely franchised out to commercial banks that create money in the form of credit when they make loans."</p><p><a href="https://www.jasonhickel.org/blog/2024/8/20/credit-guidance-how-we-achieve-degrowth" rel="nofollow noopener noreferrer" translate="no" target="_blank"><span class="invisible">https://www.</span><span class="ellipsis">jasonhickel.org/blog/2024/8/20</span><span class="invisible">/credit-guidance-how-we-achieve-degrowth</span></a></p><p><a href="https://tldr.nettime.org/tags/Degrowth" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Degrowth</span></a> <a href="https://tldr.nettime.org/tags/CreditGuidance" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>CreditGuidance</span></a> <a href="https://tldr.nettime.org/tags/Capitalism" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Capitalism</span></a> <a href="https://tldr.nettime.org/tags/Money" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Money</span></a> <a href="https://tldr.nettime.org/tags/EconomicDemocracy" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>EconomicDemocracy</span></a> <a href="https://tldr.nettime.org/tags/PoliticalEconomy" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>PoliticalEconomy</span></a> <a href="https://tldr.nettime.org/tags/Ecology" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Ecology</span></a></p>