Author Archives: Thomas H. Greco, Jr.

Understanding the “big picture” of change

The past several decades have seen the emergence of diverse movements that seek to address specific problems and provide general improvements to society. Environmentalists have been trying to stop pollution, climate change and resource depletion; civil libertarians seek to stop the abuse of basic human rights and the erosion of democratic institutions; humanitarians are trying to end hunger, disease, and degrading treatment like human trafficking, genital mutilation and genocide, to name a few.  And yet, the juggernaut rolls on, destroying more forests, polluting more water, concentrating more power and wealth in fewer hands. The need for change is obviously becoming more urgent, but why isn’t it happening?

This latest post by Tom Atlee helps to frame both the fundamental problem and broad approaches to transformation. Please give it your careful attention– then take appropriate action.

Surveillance and parasitism harm society’s collective intelligence

New video describes “A flaw in the monetary system”

This is an excellent video–clear, concise and accurate. If you want to understand why we have recurrent financial crises, dire want amidst plenty, and why debts keep growing faster than ability to pay them, this is a great place to start.–t.h.g.

“The new film ‘A Flaw in the Monetary System?’ depicts in 7 ½ minutes consequences of interest and compound interest in the financial world in descriptive graphics. It illustrates the systematic redistribution of money from the majority to the wealthy.”

See it here: https://vimeo.com/71074210

 

Welcome to Goldman Sachs

I’m a subscriber to Quora.com and receive a weekly digest by email listing things that I’ve expressed an interest in. One item this week consisted of answers to the question: “What are some of the most profound jokes ever?” I found this one below to be especially profound and timely.

Anonymous

5725 votes by Matthew Baldwin, Massimiliano Marangon, Vallabh Anwikar

A manager at Goldman Sachs has this to tell.

Once upon a time in a village, a man announced to the villagers that he would buy monkeys for Rs 10. The villagers, seeing that there were many monkeys around, went out to the forest and started catching them.

The man bought thousands at Rs 10 and as supply started to diminish, the villagers stopped their effort.

He further announced that he would now buy at Rs 20. This renewed the efforts of the villagers and they started catching monkeys again.

Soon the supply diminished even further and people started going back to their farms. The offer rate increased to Rs 25 and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!

The man now announced that he would buy monkeys at Rs 50!

However, since he had to go to the city on some business, his assistant would now buy on behalf of him.

In the absence of the man, the assistant told the villagers, “Look at all these monkeys in the big cage that the man has collected. I will sell them to you at Rs 35 and when the man returns from the city, you can sell it to him for Rs 50.”

The villagers squeezed up with all their savings and bought all the monkeys.

Then they never saw the man nor his assistant, only monkeys everywhere!

Welcome to ‘Goldman Sachs’!

Hmm, sound familiar?

More profound jokes here.

 

The Pace University Left Forum Panel Reconvenes and Henry George is Rebranded

Scott Baker has provided a comprehensive summary of a very important recent event that featured some visionary thinkers in economics, money and finance. His description begins…

The team of panelists from last year’s Pace University Left Forum panel – reviewed in the March/April, 2012 issue of GroundSwell – reconvened this year on June 8, 2013, minus Kucinich adviser Dave Kelley who was sidelined due to a back injury.   The remaining panelists were Dr. Michael Hudson, Dr. Cay Hehner, and Chair Andy Mazzone.   The title of this year’s panel was “Wall Street’s War to Impose Austerity.”

Baker follows with his “Abstract” summary…

Wall Street had a record year in profits last year. Bonuses were up and stock prices zoomed. Meanwhile, the productive classes continued to see their wages stagnate as they have for 40 years, while under-reported inflation figures and regressive tax schemes took more of their paychecks, if they could find work. But now Austerity threatens to siphon whatever is left from the bottom to the banking elites. Faux progressive organizations like Third Way in the U.S. are attempting to privatize Social Security to pour billions into Wall Street for further gambling. From Cyprus’ confiscation of up to 70% of bank deposits to Greek pro-recession budget slashing, the road to neo-feudalism continues. Based on Professor Dr. Michael Hudson’s book “Finance Capitalism and its Discontents” and “The Bubble and Beyond”, panelists Dr. Michael Hudson, Dr. Cay Hehner, Dave Kelley, and Chair Andy Mazzone will discuss specific austerity measures that are designed to confiscate, impoverish, and destroy the middle class, while widening the already historic wage gap even further. Learn how the expansive forces of industrial capitalism have been subverted by today’s predatory finance capitalism aided by junk economics and failure to collect the economic rent. What is the rentier class and how does it collect 1/3 of GDP? Is government regulation always wrong? What is the best tax policy? Why the 1% versus the 99%?

Current president of the Henry George School, Andy Mazzone, gave the opening, and after introducing himself as an ex-CEO of a Fortune 500 company, and a trained economist in Marxism, said he now classifies himself as a neo-Georgist — defined as “someone who believes all forms of monopoly should be taxed” while untaxing all forms of earned income — wages, sales, capital.   (In previous discussions with Mr. Mazzone, I have challenged this tax-all-monopolies philosophy a bit, relying on my experience in the fast-changing world of Information Technology where I was a Manager of Information Systems for over 2 decades, and where monopolies may last no longer than the next business cycle.   I think we get into questionable territory in advocating taxing patentable innovations (though I would agree that patents are too easily granted nowadays).   The land monopoly is different, of course, because land, unlike capital, cannot be created by people, is finite, and generally appreciates, while capital goods depreciate and are replaced by newer “improvements,” just as Henry George said over a hundred years ago when improvements came along at a much slower rate.)

Mazzone went on to say that Michael Hudson’s book, “Super Imperialism” basically forecast the current crisis and the financialization of everything, and the subsequent collapse from de-industrialization.

The full report goes on for six pages and includes a number of arguments relating to social justice and economic fairness as well as some essential historical perspective. You can read the rest of it here.

Social Security is NOT the problem

The right-wing politicians want to privatize everything, including our common birthright and your pension funds. They also want to cut Social Security to help balance the federal budget that is bloated by bank bailouts, wasteful spending to support favored constituencies, and imperial overreach. Social Security pays for itself; it does not add to the budget deficit. Watch this recent report from MSNBC.

Showdown looming over shutdown

Once again, the Democrats and Republicans in Washington are facing off in a battle over the budget. The Republicans, who control the House, are demanding huge cuts that would pull the teeth from regulatory agencies, like the EPA, Fish and Wildlife, and the IRS, decimate social programs in health and education, including Medicare. Some of the details are provided in this New York Times article.

The elite agenda has long been apparent– to further concentrate power and wealth in their hands, to reduce the middle-class to serfdom, and to change the nature of our government to something more akin to imperial Rome or the fascist states of the 20th century. That agenda, since the start of the Reagan-Thatcher era of the 1980’s, has been advancing under both Republican and Democratic administrations with only moderate variations in its pace.

Here are the questions that come to my mind as we approach what appears to be a critical juncture:

1. Are the Democrats in Congress really making a sincere attempt to oppose the elite agenda and protect the general interests of all the people, or is their vocal opposition just for show?

2. How far will the American people allow themselves to be pushed before they will stand up for themselves and for the common good?

3. And when they do stand up, what form will their actions take, and will it be in time to avoid an ugly and destructive confrontation?

I have often thought that Franklin Roosevelt saved capitalism in the 1930s by instituting a wide range of programs under the “New Deal” that curbed abuses of power by Wall Street and corporate leaders and provided for a more equitable distribution of the economic pie. There were a few hard liners who disagreed with that and actually tried to engineer a coup d’état to depose him. Fortunately, that attempt failed when Major General Smedley Butler refused to go along with it.

So, here we are again in the midst of an economic depression, but this time the redistribution of wealth is going in the opposite direction, which can only worsen our predicament. And, no, there will not be a new “New Deal.”

Many things have changed drastically over the past 80 years. Some of these like surveillance technologies and advanced weaponry have favored the presently dominant force of centralized control, while others like microcomputers, the internet, and cheap global person to person communications have favored the emergent force of decentralized power and global community. Society is being rebuilt from the bottom upward, community by community. Those efforts will need to be rapidly ramped up in the face of increasingly dysfunctional national governments.

As David Stockman, director of the Office of Management and Budget under President Ronald Reagan, said to state and local political and business leaders a couple years ago, “Washington will become a fountain of harm as you struggle with our own problems.” And so it, not just in Washington, but in Athens, London, Rome, and capitals around the world.

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Green Fast Food Chain Beats Competition in Sweden and Elsewhere

I was recently a panelist at a seminar on the island of Gotland, Sweden along with Par Larshans who happens to be the chief sustainability officer for Max Burgers, Sweden’s No. 1 burger chain. Par sent me a link to an article that appeared about a year ago in Time magazine. The article,Why Going Green Can Mean Big Money for Fast-Food Chains, describes the phenomenal business success that Max achieved as it took measures to reduce it’s carbon footprint and provide healthier choices for its customers. Read it here. — t.h.g.

Government of Kenya attacks self-help program in Mombasa slums

In an unbelievably heavy handed move, the Government of Kenya last week arrested an American aid worker and five local micro-entrepreneurs for operating a complementary exchange system in a poor suburb of Mombasa.

The recently launched Bangla-Pesa voucher system is intended to provide additional liquidity that makes it possible for unmet needs of local residents to be satisfied out of their own excess productive capacity. In just two weeks of operation, the amount of goods and services traded among the members of the Bangla-Pesa network increased substantially. Now, the program is shut down and six people are facing seven years in prison.  Why? Is this simply a case of ignorance on the part of government officials, or an attempt to keep poor people poor and dependent upon inadequate or even exploitative systems that are controlled by bankers and politicians ? The answer to that will become clear as this case develops. Your help is needed to get this matter resolved in favor of freedom, justice, and rationality. Here is the official appeal from American aid worker Will Ruddick.

Dear Friends, Family and Supporters,

End Africa’s dependence on Aid through Complementary Currencies. Eradicate poverty and keep six people from seven years in prison.

Click here to support this program and watch our videos.

Bangla-Pesa, a complementary currency program in one of Kenya’s poorest slums, needs your help. This innovative program gave participants the ability to create their own means of exchange so micro-business owners could trade what they have for what they need. In two weeks, the program already showed great success. But the Central Bank of Kenya has deemed the program illegal and is pursuing a legal battle against its organizers, despite enthusiastic community support.

These six people face charges that could put them in prison for as much as seven years:
·         Alfred Sigo a youth activist.
·         Emma Onyango a grandmother and community business owner.
·         Rose Oloo a grandmother and community business owner.
·         Paul Mwololo a grandfather and community business owner.
·         Caroline Dama a mother and volunteer.
·         Will Ruddick a new father and program founder.
We need help raising funds for legal fees and to bring this program back to life so it can help people throughout Africa in expanded form via mobile phones.
Our goal is to raise 47,000 Euros over the next 47 days.

Click here to read more and donate:
http://igg.me/p/bangla-pesa/x/31801
Spread the word!
Sincerely,
Will Ruddick, Bangla-Pesa Program Founder

End poverty by ending the corrupt central banking system

Thirteen year old Victoria Grant speaks truth to power in calling for a massive change in the way we do money and banking. Brilliant!

Corrupción Extrema, la causa de la Extrema Pobreza. subtítulos en español

NSA whistleblower challenges “Big Brother”

In an act of tremendous courage and commitment to “government by the people,” Edward Snowden has revealed the abusive power that is being wielded by the United States government, in particular through the National Security Agency (NSA), at which he was employed.

Here below is a video interview of Snowden by Guardian (UK) columnist Glenn Greenwald, in which Snowden  explains his actions.

http://youtu.be/3P_0iaCgKLk

You can read the related Guardian article here.

And here blow is a CNN interview of Greenwald in which he explains what the NSA and the tech companies have said about the PRISM program of collecting personal communications of ordinary American citizens.

http://youtu.be/k6NyiFMrDqY

In my latest book, The End of Money and the Future of Civilization, I included a chapter titled, The Contest for Rulership—Two Opposing Philosophies, in which I attempted to outline the inevitable conflict that will decide what kind of world we will live in. Here is the first part of that chapter:

Chapter 3. The Contest for rulership—Two Opposing Philosophies

There appears to be a general tendency for those who get a little power to try to acquire more of it—and like an addictive drug, power’s ability to satisfy seems to depend upon its use in ever-larger doses. Lest the following be misunderstood, let me say at the start that I believe the same tendencies exist in every one of us, and that our efforts to improve our collective lot should not be cast as an “us versus them” contest. When I speak of ruling “elites” it is not to cast them as “evil” in opposition to the “virtuous masses,” but to explain the distortions in human affairs that have developed over time and to suggest what may be needed to give civilization a chance of evolving toward higher levels of achievement and a more harmonious condition.

Elitist or Egalitarian?

In 1944, F. A. Hayek warned that the western democracies were on the same “road to serfdom” that had been followed by fascist Germany and Italy (and communist Russia) during the early twentieth century.

He characterized the political contest as being between socialism on the one hand, and capitalism on the other—equating the former with “collectivism” and the latter with “individualism.” Hayek’s dichotomy is, I think, an overly simplistic characterization, and the fundamental struggle goes beyond particular political ideologies or economic systems however one might wish to define them. In my view there is a contest raging in the world that is more fundamental and less apparent than Hayek’s. It is one that impinges directly upon our freedom, our dignity, and our morality. It is a struggle between what might be called elitism on the one hand, and egalitarianism on the other. By elitism I mean the centralized rulership exercised by a small privileged class, while egalitarianism implies the dispersal of power and popular self-government. As Lord Acton keenly observed, “Power corrupts, and absolute power corrupts absolutely.” Whether that power be wielded through political office or economic dominance makes little difference; the outcome is the same. It is easy for those who live far above the masses to delude themselves into thinking that power and privilege are their “right,” and that whatever serves the narrow self-interest of their class, or race, or religious group also serves the general interest.

Hayek was sensitive to the defects of communism, but he seems to have been blind to the defects inherent in capitalism that make it equally susceptible to becoming totalitarian and tyrannical. The defining feature of totalitarian systems is the centralization of power and control, whether it be economic, political, or social, for these three are but facets of one whole. Considering the millennia of institutionalized hierarchy in our societies, Laurence Victor goes so far as to say,

I believe that [bureaucracies] are strong attractors for human psychopaths. In fighting their way to the top, individuals are selected who have the greatest tolerance for collateral damage of their actions. Today, the top [levels] of most power echelon hierarchies are populated by psychopaths. . . . The greater the power, the greater the collateral damage required and the greater the deception—both to others done damage [to] and those who are indoctrinated to damage others.[There are] two alternative modes for coordinating activity so as to accomplish what only many hands in coordinated activity could accomplish. The egalitarian mode involves voluntary cooperation to achieve requisite coordination. An exemplar might be a tribe’s collective effort in gathering materials and constructing a long house. The egalitarian mode can have leaders or managers, as roles to assist in coordination. Ideally, each person contributes as to their existing competencies and interests—and all essential roles are covered. The elitist mode involves forced labor in a top down command structure to achieve coordination (and even to get persons to act as demanded). The force could be facilitated by slavery or wages, both essential for survival in the prevailing situation. Once a people settle into an elitist mode, it must be defended by force and the indoctrination of labor to accept their status.

For that reason,  any excuse for concentrating power and curtailing the personal rights and freedoms to which all are entitled, even national defense or a “war on terror,” must be viewed with suspicion—for as H. L. Mencken observed more than seventy years ago, “The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.” The real hobgoblins, often created by government itself, can be effectively addressed only by a responsible citizenry acting together from its community base.

Law, by itself, is incapable of restraining the behavior of the addict, for addiction creates imperatives that are stronger than the inhibitions induced by law. But, beyond that, power addicts’ need for ever more power leads them to seek ways to control the very process by which laws are made, changed, and adjudicated. While the separation of governmental powers into executive, legislative, and judiciary functions was intended to offer some assurance of pluralism and impartiality, the ever-widening socioeconomic differences have the effect of drawing these functions together into the hands of power elites whose members possess shared interests that are typically antagonistic to those of the masses who comprise the rest of society. As legal constraints upon concentrated power are gradually nullified, government becomes a weapon against freedom, and the ruling class tightens its grip. The people must be ever watchful for the telltale signs of creeping totalitarianism—government secrecy, stonewalling, obfuscation, classified information, abuse of prisoners, surveillance of citizens, harassment of dissenters, appeals to national security and executive privilege, and covert interventions in the affairs of other countries. These signs have been plainly evident in America for some time, and the trend toward totalitarian government has been ramped up since the events of September 11. This is clearly shown in Naomi Wolf ’s book The End of America, which outlines ten steps common to all transitions from democratic to totalitarian rule, and shows how they are already manifest today in the United States. Chalmers Johnson, in his Blowback trilogy, has clearly described how America’s imperial overreach has all but destroyed our republican form of government.

It is said that “the price of freedom is eternal vigilance,” but it cannot end there—vigilance is but the beginning of freedom. The acquisition and preservation of freedom require, in addition, responsible civic action. An informed, organized, and politically active citizenry is the only kind that has any chance of remaining free. {end of excerpt}

So long as we put material things foremost, and so long as we remain dependent upon their system of money and their banks, they will continue to control and dominate us. But we have it within our power to declare our economic independence, share the resources we have at our disposal, and apply our skills and talents to serving the common good.

My expectation is that increasing numbers of “cracks” (like Snowden’s revelation) within the despotic systems of control will lead the top level rulers to prematurely attempt to spring the trap on democratic government. This departure from “gradualism” will provide enough contrast to enable people to see what is being done to them, and to recognize that their fundamental common interests are at stake. Hopefully, we the people will assert our collective will in coordinated peaceful action that will turn the tide toward popular control and a world that works for everyone.–t.h.g.