Hans Christoph Binswanger

Hans P. Binswanger

In Money and Magic, Binswanger elucidates Goethe's remarkable prediction that, following the Industrial Revolution, economic society would be built on the transformation of natural resources into a continually expanding money supply. Yet Goethe also cautioned of the results should modern society exploit these resources and fail in its responsibility to the natural environment. Goethe meant Faust to be a warning to modern economic society.

A Critique of the Modern Economy in the Light of Goethe's Faust

Money and Magic

Goethe based his tales on the life of John Law, a Scot who rescued the Prince of Orleans's finances by founding a bank and issuing limitless paper money. Law's ploy was successful at first, but eventually the paper money lost its value and the economy collapsed.

The Modern Economy as an Alchemical Process and Deciphering the Message of Goethe's Faust

This book develops a new theory of the modern economy. Conventional economic theory is (still) based on an essentially static notion of equilibrium. In contrast, this book offers an analysis of the economic process based on a truly dynamic approach. It understands modern economic activity as manifesting itself in a growth spiral. There are two main drivers of the dynamics of this spiral: steady money creation in the banking system, on the one hand; and the continuous inflow of energy and raw materials through the exploitation of natural resources, on the other. Both driving forces are generally neglected by the conventional theory. Understanding their role is absolutely essential for preventing our economy from being more and more exposed to financial and ecological crises. This book offers important insights about the functioning of the modern economy and addresses the specialist as well as the interested lay reader.

Hans Christoph Binswanger

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