Reforming Our Global Financial World

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The new financiers will show why the old financiers and central bankers can no longer have a monopoly on money and its creation.  Information-based currencies and trading platforms will operate wherever necessary for evolving human communities so as to match needs with resources and create jobs – from local and regional to national and international exchange. Today’s financial “crisis” is facilitating the evolutionary jump to the next stage of human development – shifting from faulty, money-measured GDP growth to the cleaner, greener, sustainable economies.
— Hazel Henderson on global financial reform

Fred Burks

Fred Burks

Below is the full article as sent to me by Fred Burks . For years he has been putting information on his website www.WantToKnow.org which although “verifiable and reliable” is nor covered by the major news media such as CBS, Wall Street Journal etc. If you want to sign up for his weekly email list, summarizing key media articles which should have made headline news, click here. (The highlights in the article below are Fred’s.)

Global Financial Reform

The New Financiers

By Hazel Henderson

A venture capitalist friend of mine asked me in a recent discussion about the financial meltdown, “who will be the new financiers?” I answered immediately, “the new financiers will be the high-level information and knowledge brokers – and they will aggregate the new research on global change processes and lead in structuring the deals now creating the growing green economy.”  Today information and media drive markets.

These new financiers are already operating unseen by traditional Wall Streeters and asset managers.  They are largely invisible to current financial players and governments because information is their prime currency; rather than money.  The new deal-makers value the role of honest, well-managed currencies that remain dependable stores of value and mediums of exchange.

Money is a special kind of information, not a commodity in itself, but rather a brilliant invention of the human mind.  When backed by real-world goods and service, as well as strong contracts, money can accurately track and score human ingenuity, productivity and transactions interacting with the natural wealth of resources of our home: Planet Earth.

The problem with money is keeping it honest and keeping its “promise to pay” firm.  From the goldsmiths who over-lent against their piles of gold held in storage for their customers, to the kings who shaved of the edges of coins and today’s bankers who create our money out of thin air, we humans have found many ways to debase our currencies.

Human activities grew from traditional barter, mutual aid and gifting to the invention of money back around 3,000 BC.  Our money evolved from clay tablets, shells and cows to metal tokens, gold, silver, today’s paper money and electronic currencies that are blips on millions of financial trading screens.

As we expanded worldwide with the advent of the Industrial Revolution in Europe 300 years ago, our need to trade and exchange grew exponentially.  This required expanding our money systems of exchange.  Gold, which backed most currencies in growing international trade, became too constricting – there just wasn’t enough of if.  Many traders turned to silver and other precious metals.  Soon, the lack of gold led governments to issue paper “fiat” currencies backed only by promises and a fraction of actual gold.  Some countries shut their “gold windows,” including the USA in 1971, and restricted their citizens from owning gold.

Our current financial crises go beyond those earlier contractions, panics and recessions caused by the lack of gold or sufficient supplies of credible paper money.  Central bankers have learned the lessons of the Great Depression.  The money supply must keep up with, not surpass, the expansion of production and trading as a country grows and its real economy progresses.  Today, the interlinking of all countries’ economies due to the globalization of finance and technology caused money-creation to go wild, leading to a credit bubble and mountains of debt.

Computerization of finance and markets speeded up trading to seconds; satellite inter-linkage of round-the-clock stock and commodity exchanges led to the explosion of derivatives contracts, ever more exotic “securitization” of packages of mortgages, student loans and credit card debts.  Risk-analysis was relegated to ivory-tower mathematicians’ algorithms which ignored real-world conditions.  All this multiplied the creation of money and credit exponentially.

Reckless, poorly regulated financial firms on Wall Street sold their dubious, toxic “securities” to gullible investors and pension funds (which should have known better) around the world.  For example, the bets on who might default, called credit default swaps, grew unregulated to now comprise $683 trillion of contracts (Bank for International Settlements December 2008) – while real global production measures only the $62 trillion of global GDP (IMF October 2008).

The resulting crises were predicted by me and others over the past decades.  All that money and debt creation led to illusory gains and today’s inevitable losses and “de-leveraging.” The bubble in finance and money itself has popped.  Central bankers and financiers, schooled in the world’s leading business schools and economics departments focus on money and global monetary circuitry.  They were rarely taught that money was simply one form of information – now deeply devalued as all the new forms of money-creation went wild.

Today, we see central bankers printing money on TV.  No amount of ink and paper can print enough new money to close the hole between that $683 trillion of false promises and the world’s real GDP of $62 trillion.  The only issue is who will take the hit.  Up to now, the political influence of financial sectors has forced taxpayers to bail out financiers. The blatant unfairness and stupidity of this has caused huge outcries from outraged citizens. Those billions given to irresponsible bankers could have financed universal healthcare and college education.  This is the end of finance based only on money and fiat currencies.  We now know it’s about priorities and values.

Enter the new financiers: those high-level information and knowledge brokers who understand our Information Age and the great transition from the fossil-fueled Industrial Age to our new Solar Age.  Overloaded money-circuits have broken down and the huge new volume of transactions in the past decade have migrated to the internet.  Pure information-based exchange and sharing has led to the new hybrid economic model described by experts, including Lawrence Lessig’s Remix (2008), Yoichi Benkler’s The Wealth of Networks (2007), Don Tapscott’s Wikinomics (2008), Verna Allee’s Knowledge Evolution (1997) and my own work (www.ethicalmarkets.com).

This hybrid economy is half the old money-based competition and half information-based sharing, cooperation and exchange. From electronic stock exchanges, Instinet, Archipelago, NASDAQ, Knight and Entrex to Google, e-Bay, Craigslist, Amazon, Facebook and Wikipedia, we are seeing how money-obsessed financiers are trailing behind.  The new financiers: those high-level information brokers go beyond economics to understanding whole systems and the human family on planet Earth.

Money may return to its honest base, reflecting real world values of Main Street productivity, but may never again be the dominant medium of exchange.  Just as gold remains valuable but can no longer support the new volume of human transactions.  Money will be superseded by all the new digital currencies already circulating from local exchange trading systems (LETS) and complementary currencies like “Berkshares” and “Wirs” in Switzerland to Freecycle and many other barter sites, cell phone networks and radio shows.

Incumbent money-circuit players will try to get regulators to shut down these upstart, disruptive technologies and competitors.  The US Securities and Exchange Commission (SEC), for example, shut down the website Prosper.com which boomed by facilitating local residents and businesses in lending to each other.

The new financiers are operating these new digital trading platforms in many countries.  Many designs for global digital currencies are on the way.  They will complement the IMF’s Special Drawing Rights, another pure information-based currency for international development which is still conceptually tied to gold.  The new financiers will show why the old financiers and central bankers can no longer have a monopoly on money and its creation.  Information-based currencies and trading platforms will operate wherever necessary for evolving human communities so as to match needs with resources and create jobs – from local and regional to national and international exchange.

Today’s financial “crisis” is facilitating the evolutionary jump to the next stage of human development – shifting from faulty, money-measured GDP growth to the cleaner, greener, sustainable economies. Governments are realizing that they must now also correct those money-based indicators and GDP national accounts to adopt the new Quality of Life Indicators.  Pension funds have realized their errors in chasing only short-term money returns and are demanding that companies report their performance beyond the old single bottom line of money to the triple bottom line, including progress on social, environmental and governance performance.   Welcome to the Information Age.

~~~~~~~~~~~~~~~~~~

Hazel Henderson

Hazel Henderson

Hazel Henderson is also author of Ethical Markets: Growing the Green Economy (2006), co-created the Calvert-Henderson Quality of Life Indicators, updated regularly at www.calvert-henderson.com, and co-organized the BEYOND GDP conference in the European Parliament, Nov. 2007. For more, Google: US Geothermal, Nevada Power, World Water & Solar, Western Wind and pre-IPO companies, including Solaria, EnVision Solar, and Stirling Energy Systems. The above article is taken from www.ethicalmarkets.com/?p=1642. The entire Ethical Markets website is filled with fascinating and inspiring information.


More Important Information : For a three-page lesson on monetary principles of which few are aware, yet which should be taught in every high school, click here. For highly revealing major media article on the reasons for the banking and financial crisis, click here. And don’t forget to take a look at the incisive analysis of 12 key deregulatory decisions which played a critical role in the banking and economic collapse, available here.

~~~ Check out my website: A Good Dying ~~~

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Prosperity Is Like This

I was sent an email last week with these simple suggestions on how to improve our prosperity consciousness. They feel really good and appropriate to me, and so simple…

Breathe.
In and out.

Filling and releasing,
Accessing energy that flows through the body.

Money, like breath, comes & goes.

Prosperity is like this.

Breathe strong and fierce,
Breathe soft and allowing.

Prosperity is like this.

How much do you hold your breath?
How shallow or deeply do you breathe?

Prosperity is like this.

Opening to greater giving is like breathing out more
Opening to greater receiving is like breathing in more
Continuing to circulate
Energy
Love
Pleasure
Money
Breathing deeper through the places
Where we want to withhold.

Prosperity is like this.

Thanks to Kathy Kali
Lotus Moon Temple

~~~ Check out my website: A Good Dying ~~~

What If Economics Is All About Personal Satisfaction?

Hello

I found this quote in my inbox this morning:

“Every bit of it is about economics. Every bit of it, without exception. Everything about religion is about economics. Everything about politics is about economics. And everything about economics is personal satisfaction. Everyone is personally motivated to do the best that they can possibly do for themselves.”

Excerpted from an Abraham workshop in Boulder, CO on Saturday, June 12th, 2004

What if economics is actually about personal satisfaction? What if the current economic crisis is about bringing more emphasis on personal satisfaction in our lives? So much of the existing economic model has been about making money for the sake of having money to pay the bills.

What about first finding something that satisfies us personally, that touches us deeply, that motivates us strongly, and then making it pay our bills? What a different way of looking at our relationship with money.

As the existing economic model is in the process of breaking down anyway, why not use it as an opportunity to find out what does bring us personal satisfaction? What do I love doing? What gets us out of bed in the morning, full of excitement and joy, AND pays our bills?

I was raised to focus on finding something that pays my bills, and then do what satisfies me as a hobby, or when I am old and retired. It never worked for me, let me tell you. I can only really get involved in something that pays my bills, if either I feel passionate about it, or if i can focus on something in it, that brings out my passion.

I am sure going for passion in my blog here. I have a passion for BIGGER perspectives (ask my friends…). I love writing about my passion. I love using the internet and all its opportunities to reach out and be seen. Now I get to share that passion with the rest of the world.

I am pretty good at trusting that my passion for that BIGGER Picture will eventually pay my bills. And if it doesn’t, at least I get to do what I love doing and feel good doing it.

~~~ Check out my website: A Good Dying ~~~

The Cure For Money Madness

How do we manage to feel good about our finances in these challenging times?

Here are 10 tips on how to survive today’s economy, quoted from Spencer Sherman on his website (I especially love his point 8):

    1) Remember to take a Money Breath whenever you’re feeling stressed or fearful about your money situation or about the world. Just make the exhale twice as long as the inhale and say at the end of the exhale “May my money wisdom increase.”

    2) I urge you to put your credit cards in a drawer until Thanksgiving like my wife and I are doing. Use cash for all purchases, or, if you have to, use checks or debit cards. Using cash reorders your priorities and reduces your spending. It’s much more difficult to put down five 20’s for a fancy dinner than just fling down the plastic. Try going cardless until January 1st.

    3) Review your spending intentions and really think about which spending adds the most value and which you could easily live without.

    4) Put some cash into a shoebox for savings, even if it’s only $1 per day.

    5) Put some cash into a shoebox for charity, even if it’s only $1 per day. Saving for yourself and for charity cultivates and increases your sense of sufficiency and generosity; it’s impossible to be fearful when you’re in these two states.

    6) Keep repeating your Curative Money Message (the message that is the opposite of one of the unproductive money messages you received as a child) in the morning and evening to yourself and take one action each week that will support your message.

    7) Ask yourself whether you’d prefer to be a billionaire in terrible health or homeless with your current health?

    8) Have a conversation with your spouse or an objective friend about how to double your income in the next 12 months. The opportunities are the most abundant in times like this. It’s this kind of thinking that will keep you in your heart and less gripped to your reactive thinking.

    9) Stop listening to all newspaper, radio and TV news for a week. My wife and I are doing this now. Give your mind a break from hearing that the financial world is melting down completely and you have to do something radical today. Also, take a break from negative conversations with others.

    10) If you have investments or cash, this is an opportunity to buy things like U.S. and international equities at low prices and to sell bonds, for example, at relatively high prices. Also, make sure you are really diversified in your 401k plan.

Spencer Sherman, very timely, just published his book “The Cure for Money Madness” and is on book tour these weeks. For tour details click here.

~~~ Check out my website: A Good Dying ~~~

What If This Economic Crisis is About Bringing Integrity to the Financial Sector?

Hello

What if this current economic crisis actually has a purpose, is part of a BIGGER picture?

What if it is about bringing integrity to the world of finances? What if the breakdown we are witnessing all around us is just a way to let the old way of dealing with money break down? The old way that was only about making a quick buck? The old way that was about cutting as many corners as needed to get rich quickly? The old way that was about me and my pockets/bank accounts first, and I don’t care what happens after I get rich? The old way of an old boys network that made sure that only the old boys got rich and everybody else paid for it, and all of it behind closed doors?

You get the point…

What I sense here is that the break down of these old ways makes room for a new way to deal with finances, with money.

– A new way of making sure that income is created sustainably, that is that it not only benefits one person, but the whole system as in community, earth and others around it.
– A new way that promotes transparency as in where the money comes from, who gets paid how much and what, and what is done with the money earned.
– A new way that creates a solid foundation of integrity for every aspect of money in our economies worldwide.(I define integrity here as “looking at the whole picture” instead of separate parts)

What if this economic crisis is here for the benefit of all of us by bringing consciousness to even the financial sector, so that “business as usual” is not anymore the MO of the day.

What if this restructuring of the world of money will be so successful, that in years to come historians will give it a name like “the Age of Renaissance”?

What if the new economy AFTER it has hit rock bottom and found its integrity in all its aspects will serve as a role model in years to come for other developing economies in the world like Africa?

More to read on these ideas here and more to listen on mp3 here.

~~~ Check out my website: A Good Dying ~~~

The whole world needs to come together now…

Hello

to solve this worldwide financial crisis. Isolation and separation is no longer a viable option. The leaders of th world are meeting and putting their joint wisdom and interests together to find and act their way out this world wide financial crisis, so long overdue – in my opinion.

We cannot act alone anymore, whether as countries, or as individuals, to find solutions for our problems to day. What a way to realize that we are all connected, that we are all in this together, that we are all needed as one…wow!

Spirit works in wondruous ways….

~~~ Check out my website: A Good Dying ~~~