This is an analysis of both conventional money and the new community money, in the context of a sustainable economy. A sustainable economy cannot be achieved while we continue to depend on conventional money. This assertion is supported not only by concise theoretical analysis, but also by observations gathered from all around the world over many centuries.
Conventional money tends to seek out the cheapest sources of supply.
It therefore drains away from communities that fail to meet the appropriate cost levels. When a community relies only on conventional money, it is driven to patterns of production and consumption of natural resources which are internally and externally destructive. This is not only observable, but also predictable, since we need money to participate in the economy, and we get it however we can. This leads to patterns of cash cropping, short term gain without recognition of long term costs, the denial of externalities, money as commodity. An economy based on conventional money establishes competition as the norm.