I was asked recently to give a talk to a small but distinguished group on “how to survive the global financial and ecological crises”. Easy uh! Well you have to start somewhere and have a rough idea of where you’re headed. For me, the more difficult the situation gets, the simpler the solution becomes. Essentially, changes that once would have been rejected flat out as unworkable, implausible and idealistic, are suddenly deemed more acceptable.

We are all conditioned to think and live within a certain paradigm or system. For many of us (especially readers of this blog), it’s considered to be democratic, liberal capitalism. More realistically it’s a neo-liberal system where free markets dominate at the expense of any concept of the public good. Markets will solve any problem. Actually that’s a truism. It’s the outcome that is often of dubious merit.

When I look at the Occupy Movement, I see a protest against this system, a system where people are secondary to profit, and the public is considered to be a wasteful and unnecessary construct. As John Key noted of the Christchurch post-EQNZ insurance problem, eventually the markets will sort it out. Again they will but there may not be any insurance for anyone for a while. This mirrors the government’s approach to managing our prisons: simply contract it out to private operators, who will manage it more “efficiently”. The belief in the idea of the “public” is slowly being eaten away by this neo-liberal fantasy that for profit organisations will always achieve the best outcome.

It will be interesting to see how this protest develops but it feels like it has legs. The outrage is fair and justified: the corruption at the heart of the political-financial system; the gaping inequalities; the disenfranchisement and the feeling that the whole system is built on sand. Over time the picture will be clearer and the protests may coalesce around a series of concrete demand but the consultative and participatory process is a fascinating starting point. Participatory, as opposed to representative, democracy is messy, frustrating, turgid, slow, tedious and annoying but that’s the whole point. It is built on allowing all people a voice and on allowing a process to develop. It is a far cry from the many bills rammed through under “urgency” in the NZ Parliament, with little debate or scrutiny for even our partially elected representatives.

I wish them well in their endeavour. In the meantime, I have three simple proposals to offer, as a starting point:

1) Monetary Dialysis - No more public debt; new public money; raise limits on bank credit.

2) Trucost pricing - Start pricing ecosystem goods and services.

3) Participatory Universal Income - Basic Income for all those participating in society; rebalanced tax system; provision of key public goods.

I focused on the first 2 ideas in my presentation, the outline of which is below. By repricing our economic system, both in the cost of goods and services, as well as the creation and volume of money, we will immediately realign it towards a path of lower volume but higher quality consumption. We will reduce the burden of compound interest, this alleviating the constant pressure to produce and consume. The UPI will restore the public good in reflecting all contributions to society and laying the foundations for a more stable, harmonious and prosperous world. Far fetched? Not really, when you think about it for a bit. My turn is over for now. Who is next in the stack?

Last month Tom Greco appeared as the keynote speaker at the national Community Currencies Conference in Wanganui. He is well known globally for his work on the topic of money. He described his attendance at the conference below

“The national Community Currencies Conference (April 17-19) brought together well over 100 enthusiastic participants who convened at the Quaker Settlement in Wanganui to share information and discuss new possibilities. My Keynote presentation delivered on Saturday morning (April 18) was titled, Reclaiming The Credit Commons: The Key to Sustainability and Relocalization. Prefaced with a brief outline of my vision of societal metamorphosis, I argued that liberating the exchange process from monopoly control by means of localization and popularization of credit is a necessary prerequisite to achieving a steady-state economy and the devolution of power to local communities”.

He also gave talks in Auckland entitled Money, Power, Democracy, and War: Finding the path toward global peace, harmony, and prosperity, on Waiheke Island entitled Community Economic Development: A Comprehensive and Innovative Approach and in Wellington entitledThe Political Money System: The Story of Central Banks, Inflation, and Legal Tender.

He was also interviewed by Kim Hill and that is available here

If anyone is interested in getting copies of those talks you can contact Tom through his website or blog.

I provided sponsorship for 3 people to attend the conference and they have written about their experience of the event in the following post.

Elites have always ruled the world even in open democracies. Sure this was expected in dictatorships regardless of political persuasion but in democracies? What happened to “government of the people, by the people, for the people”?

In his new book, “Superclass: The Global Power Elite and the World They are Making“, David Rothkopf explores the globalisation of the new elites, naming some 6000 players who basically run the whole show. From media to banking he lays out how close these people are and how they are shaping and making the world in their own images. The link between politicians and business is crystal clear. In some countries its hard to tell the difference with the US a great example of this.

If anyone felt the US financial authorities were in collusion with the banking system look no further. The current US Treasury Secretary, Henry Paulson, is a former Goldman Sachs Chairman and Chief Executive. Rothkopf reveals the shennanigans that took place over the bail out of Bear Stearns. He tells how bank heads met over the weekend to hammer out a deal for Bear Stearns. Clearly the deal had to be done that weekend lest the market really fall apart on the Monday. This type of round table pow wow is becoming more and more common as the fragility of financial markets continues to be revealed.

On one hand this sounds good: we have capable people in government and business to take charge of managing a crisis. They all know each other and have worked with each other. They know the score.

But: are they not the same people who caused and are part of the crisis? Is there any chance we get to hear the truth of the matter? Do ordinary shareholders and citizens matter anymore?

Well there have always been plenty of stories about how the Fed operates and the murky manner in which its was founded.

But one thing is clear from this article and the activities of those in power. They run the show in a “we know best” style. The question all concerned people should have is whether power should be so concentrated and in the hands of so few.

I wonder what Lincoln would have made of it.

Another of nature’s incredible creations, the cyclone, has wreaked havoc on Burma with the loss of life expected to be upwards of 100,000. Living around the Bay of Bengal can be a dangerous business with Bangladesh a regular guest of tragedy and Thailand more recently with the Tsunami of 2004.

Numbers of this magnitude tend to overhwhelm causing a certain numbness to appear. 90,000 or 120,000, it’s a big number. But I don’t want to dwell on that aspect of the disaster but more on what this means for Burma.

A period of searching and mourning followed by rebuilding will take place, following a similar pattern to these events, but in what framework? The miltary junta, bunch of decrepid bovver boys, has no choice but to allow the world in as it has no hope of handling this on its own. Repression yes! reconstruction nah.

If ever a message was to be heeded this is it. The Saffron Revolution was just the beginning, creating a force of energy which some might say has manifested in this terrible way. It is surely no coincidence that just 2 days away is the proposed referendum on a new constitution. A referendum where you can vote but not against it.

It’s been interesting watching the warlord generals and how they look shellshocked and dazed as the cameras focus in on them. But more than anything they look very human. Sure they have plenty of vicious thugs to carry out their torture and murder but now they look weak as they are exposed to the world.

It’s time for the world to really put the hammer down on these dictators and try and bring about some kind of change. Just being able to live without fear of being carted off to prison or a labour camp would be a good start but this may be the point at which birth, although painful, can be given to a new Burma.

The Olympic Torch continues to trip and stumble its way to Beijing. That there would be protests along the way was never in doubt but what has been a surprise is the mobilization of Chinese citizens along the way. In Australia there were clashes between Chinese supporters and pro-Tibet protesters. The same thing happened in Japan yesterday.

This is a new phenomenon and one that should be taken note of carefully. There are a lot Chinese living overseas, many of whom were glad to get way in the bad old days of communism and repression. Now things have changed. China is open for business and the most dynamic economy in the world. Suddenly its cool to be Chinese (well sort of) but just as India was “in” a few years ago, China is now all the rage. With this has come a new sense of purpose and national identity both in China and overseas. It certainly gives rise to a lot of comment and opinion.

Where this ends up is anyone’s guess but a resurgent China will be a shock for many people used to browbeating and looking down on China as simply a repressive regime with super cheap labour.

The Chinese vice commerce minister said on Friday “Chinese enterprise should transform themselves from purely from being exporters and importers to being multinational companies through overseas acquisition and production”. That’s a big statement. We’ve already seen this approach with  stakes being taken in US banks and industries but these guys are not messing around. With $1.6trln in reserves they can pretty much buy anything.

They are smart. Why buy US treasuries when you can buy US companies? They can spread influence using economic rather than military means and of course secure a constant supply of the resources required.

It’s a fascinating developmental process to watch and the ramifications are bewildering to imagine.

We certainly do live in interesting times.

I’ve been watching developments in Zimbabwe with a mixture of hope and resignation: hoping that Mugabe would step aside and retire somewhere cosy and resigned that he would never be able to relinquish power.

It was nearly a year ago that I wrote this post on him. Coincidentally I saw the Last King of Scotland again recently and was struck by something very clear: all these dictators want one thing and that is love. Yes I’m serious they want to be loved, to be accepted and they will do anything to get it. However, they end up not getting it and lash out destroying anything in their path and so the descent in sociopathy begins.

Mugabe has tried so hard to make the Motherland love him, no not Zimbabwe but Great Britain. But that love never came and so he reacted with violence against his own people, with suitable groups identified as the enemy. We’ve seen it all before.

Like Amin, he’d love to go out on top….loved not loathed but his end was written many moons ago. Like all the others before him he will die miserably in some place of exile surrounded by a few loyal servants who have long resigned themselves to his fate.

Amin went to Saudi Arabia but it’s hard to know where Mugabe will end up. Maybe with his mate Mbeki in South Africa? I think not.

I like the quote from Reed Brody at Human Rights Watch, “If you kill one person, you go to jail; if you kill 20, you go to an institution for the insane; if you kill 20,00, you get political asylum.”

As they say in New Zealand, sweet as.

What will the U.N. do? What will South Africa do? The time has come to act before the killing really gets into gear.