Profitability re-defined for One World

The Omnius Manifesto argues that in a model in which the world needs to be seen as one shared space, all productive capacity has to be accounted for in terms of ecological balance, with rewards and penalties for those not in balance.

This is one of those proposals that seeks to re-shape, at fundamental level, one of the great anomalies that shape global society in the 21st century, loss of proper accountability by the corporate world. I appreciate the fact that it is based on down to earth insights into the nature of human beings, and involves steps that are immensely practical and for which precedence exists. And it is based on the still not put into practical action fact that we all share one tiny planet and therefore each have the right to demand that nobody puts its ecological balance at risk, or more at risk than it already is. It is one of very few whole-planet solutions currently in circulation.

As we are unlikely in the short term going to be able to change certain fundamental aspects of human nature, the Manifesto suggests we leave the elements required to satisfy current human desires in place, and simply change the parameters that deliver and measure what these desires seek.

The author, Dr Jeffrey Eisen, lucidly argues that we are applying false accounting criteria to evaluating the profitability of companies and corporations : at the moment the make-up of figures on either side of a balance sheet does not take into account what the effect of the organisation’s activities (that produce conventional profitability) are on the planet as one single unit of “Lebensraum”, or in his terminology, the humansphere, the space humanity occupies with nature.

He proposes that in future companies be judged by their consumption of resources, both natural and human. ‘Resources’ are defined to include – fresh air and clean water, as well as the more usual items and the cost to repair any damage caused (assuming possible). Once these new accounting elements are agreed, a company would then be assessable as ecologically in surplus, in balance or in deficit. While all natural life is ecologically balanced, capitalism and its economic tenets are currently decidedly negatively balanced. Society will under the new proposal be expecting at least ecologically balanced delivery of goods and services; corporations achieving this will be awarded by an adjustment in taxation rates, ranging from tax credits where the output is achieved is ecologically positive, to penal taxes the greater the ecological negativity. Balanced output will potentially be awarded with zero taxation. The author even suggests that because it demands balance or positivity, global society might even go as far guaranteeing a profit to companies that achieve the required balance [potentially for a number of years from start-up, commentator’s addition].

To be truly effective such a measure of profitability would need to be introduced globally, which in turn would require not just an international treaty, but also a global standardisation and monitoring body, with potentially executive power.

There is a central idea to this proposal that is overdue for implementation; it deserves support and further development, go to http://psychonoetics.com. The entire Omnius Manifesto is available for download from here (9-pages).

Remembering the Future

Today is Remembrance Sunday. As I write these words, I am able to hear and see on BBC TV the ten thousand representatives of various military and civilian groups parade past the Cenotaph, in London, in memory of fallen comrades, friends and family members who gave their lives in past and present conflicts. Inevitably the drum-beat that accompanies the left heal of the marchers hitting the ground brings back memories of my own endless hours spent on drill squares learning to precision march.

But overriding the emotions that come from watching those thousands whose mixed memories have brought them on to the streets of cities, towns and villages everywhere in the English speaking world, is a dawning as to why remembering is particularly important in today’s rapidly changing world : in the events remembered today, there was a known enemy, even if it might be difficult to recognise some of these as ‘enemy’ today, then there was a certainty. And this made it possible for ordinary men and women to do extraordinary things, to become heroes and heroines, to come up with unusual ideas and solutions, even to be willing to lay down their lives.

The yearning that exists today is for that same degree of certainty that existed in the past, the certainty that made it possible to know ‘the enemy’. Today’s major enemy is something much more elusive – it is hidden inside each of us and in all our beliefs, practices and institutions. Such an abstract enemy is much more difficult to identify, to go up against. So frustrated we strike out and create ‘enemies’ in banking; big business; transnationals; those of other religions; government; the system; etc. and yet no one of these is an “enemy”. In a world based on a real understanding of Oneness, there are only victims – of immature ideas; wrong assumptions; false ideals; poor understanding of the purpose life; etc. Until we collectively develop a real understanding of what a One World view means, and then develop the skills and courage required to remodel our world, we will go on seeking out the enemy and remember the days in which it was simpler to do so.

I live with the convinction that, given direction, the same dedication and bravery of the past is alive today and available to make the changes the world is clearly calling for. Because there is so much that requires change, movements like Occupy Wall Street (OWS) appear to have diverse objectives. Yet OWS’s diversity reflects the wide range of areas in which change is overdue : the structure of government; a re-definition of the role of corporations and the determination of profitability; the role and nature of banking; the puropose of real education; healthcare v. disease prevention; agriculture in alignment with natue’s laws; an economic theory relevant to this age; etc.

What has yet to emerge is an integrated programme of radical change covering these key areas that shape our world. Those who heroically gave of themselves in a simpler age, will not have done so in vain if we collaborate in creating the future we want, always based on the recognition that we are all in this together. The future will need to be different, no doubt; the danger lies in us believing that it is too complex to try and do anything about shaping our futures, and in letting it just ‘happen’ to us. The big lesson of the past being remembered today is that where there is hope and determnination, there will emerge solutions.

Positive Money Conference London – Part-2

Some practical alternatives to aspects of banking mentioned at this valuable 1-day event included (this does not aim to be a comprehensive list) –

In the UK

www.uk.zopa.com
peer to peer lending, with a less than 1% default rate

www.abundancegeneration.com
launching shortly, with the same founder as UK Zopa

www.bankofthefuture.com
launching in March 2012, will offer 4 different options of service and will embrace all the elements an ideal banking system would presently contain

Internationally

Hong Kong’s Octopus Card
highly successful, adopted by another province in China

Vodafone’s M-pesa (m=mobile, pesa=Swahili for money)
adopted by users for money transfers, it caught almost Vodafone’s African subsidiary by surprise to find itself become one of Africa’s largest money institutions, and aims in partnership with Citibank make this a world-wide payment service

Vodafone UK
making charity-giving via the mobile phone very easy (to charities that register with them)

Facebook Credits
nobody at Facebook is denying the existence of peer to peer banking plans

Google Points
Google does not deny working on its own payment system

Twitpay
Twitter is rolling out this service

www.PayPal.com

All above systems are however linked in one way or another linked to the banking system. The following 2 are genuinely independent –

www.bitcoin.com
genuinely has no links with banks

www.kiva.org
is another peer to peer lending system, concentrating on small loans to poorer countries

For UK readers of this blog there is an interesting offer on the table – contact your MP and ask whether s/he knows where money comes from, revealing that a survey has shown that only 4 out of 600 do and offer to provide them with a copy of the book “Where does Money Come From” co-authored by one of the day’s speakers, Josh Ryan-Collins (with Tony Greenahm of NEF), and published by the New Economics Foundation, www.neweconomics.org. If your MP has the courtesy to respond in the affirmative, NEF has offered to send them a complimentary copy of this eye-opening book (which to my mind ought to include the phrase “… really come from ….”

This Old Warhorse recommends you register with http://www.positivemoney.org.uk so that you are kept abreast of their work and have an opportunity to attend their next annual gathering – or invite them to something you are organising and for which you seek speakers.

The issue of what money is and how it may be made more relevant was briefly touched upon by speakers as the day’s focus was very much on how to remove the near monopoly powers we have given banks, which they have consistently misused to the detriment of most of the world, and about which governments simply have no idea what to do. The entire day was marked by the absence of any strident attacks on any parties, rather there was a sombre recognition that as a global society we had allowed a monster to develop that none of the parties threatened by it know how to control.

The bigger issue that this Old Warhorse considers will need to be addressed soon, but was outside the scope of this one-day event and still lies in the future, is agreement on what money is and how the currencies in which money is expressed can be given value objectively. One of the MP speakers at the event made reference to money as a commodity, which is precisely where our problem lies – we need to agree that money is a unit of measure, nothing else, and then start treating it as such. Coupled with the practical solutions offered by the event here reported on, the role of banks would quickly become redefined as a service industry to the real wealth generators of modern society.

Positive Money Conference London – Part-1

On Saturday, 29th October 2011, the UK pressure group, Positive Money, arranged its second annual conference in one of UCL’s lecture theatres.

This Old Warhorse was reminded of attending similar events 40 years ago, most notably the annual TOES conferences (The Other Economic Summit) timed to precede the G8 (or whatever the number then was) event.

Yet, there was a fundamental difference between then and this day – today everybody can see that disaster is heading our way unless we reform our financial and banking systems, then only the far-sighted thinkers could see what has now finally caught up with us. And today we have the internet, and, most importantly, Social Media.

It is not my intention in this blog to keep referring back to the past (when banks were controlled and bankers were paid salaries only), it was simply this contrast that struck me as I sat through a day of interesting revelations and practical proposals (all the while drugged to keep my man-cold under manful control).

The most striking bit of information was that of the 600 MPs, who are the UK’s legislators, not more than 4 can be presumed to know what money is and where it comes from; similar research conducted amongst Treasury officials, bankers and economists, reveals the same high levels of ignorance; and similar levels of ignorance are found amongst almost the entire public. This is a particularly appalling figure as only about 3% of money even remotely equates to what everybody appears to consider money to be, whereas the remaining 97% consists of simple computer entries which any licensed lending institution is authorised to make.

How come that the one measure that impacts on all our lives is so little understood, or worse still, so misunderstood?  How badly are we failing in our education! How docile we have become to allow every step of our lives to be controlled by something only the tiniest number of people understand? I knew it was bad, but had no idea how bad it has become.

The focus of the day was to highlight this ignorance and how this had made the control of banks fundamentally impossible until governments truly understood the nature of money.  The two MPs, who were amongst the speakers, had no difficulty in sharing this view.

Being a solutions-oriented event the speakers variously listed items for immediate banking reform, including the requirement to change the law that currently turns your and my money into bank-owned money from the moment we make a deposit with them.  This change in ownership perception immediately makes it easier for the introduction of genuine customer choice – s/he would opt to use the bank either as a convenient storage and transfer place for money, and / or to be an investment agent for the customer in certain approved areas.  In the event of future bank failures money in the storage accounts would still be there and would simply be transferred  to another bank; money at risk would most likely be at reduced risk as few, if any, bank customer would allow investments in some of the mad schemes banks currently participate in.

Research has shown that banks currently lend only about 8% of their money for productive purposes, and the other 92% is used non-productively.  The importance of banks with such a lending record is further questioned when their tax contributions to UK government coffers in the last financial year were at £23.8 billion in comparison to £60.0 billions from the manufacturing sector.

Recognising that even these simple and logical changes in legislation will take time to get through Parliament, the joy of this event was the presentation of schemes that can be implemented without changes in legislation having to be put in place.  A shining example of this is Hong Kong’s Octopus Card – originally designed to facilitate travel on the public transport system (London followed with its Oyster card), it quickly became accepted by local traders. Needless to say, the banks quickly complained that these pre-paid cards were effectively turning the company that ran them into a deposit taker, which had to remain the sole prerogative of holders of banking licence. Hong Kong’s Monetary Authority looked into the matter, concluded that indeed deposits were being taken and promptly awarded the Octopus company with a deposit taking licence! It is now a widely used pre-paid card that can be used in an endless choice of situations. Its symbol and the name are reminiscent of the figure eight, which in Chinese is of course a most auspicious number.

In part-2 I list some of the practical applications designed to by-pass the banks.

Money Beyond Manipulation …

Voices are being heard suggesting that in these troubled times the gold standard should be re-introduced to give money some intrinsic value. Those who remember the pre-1971 era of gold-backed money know that this does not prevent the manipulation of currencies by speculators.

Here is a wholly new alternative, called the ‘the Objective Money’ solution. This writer first proposed this in the 1980s. It values money against the energy balance sheet of a nation or community, and bases itself on a unit of energy measurement called the “Erg” (its root is ‘ergon’, the Greek for ‘work’). This is essentially a measure of energy, energy is the stuff that everything is made of (“matter is energy reduced to visibility”). There is international agreement on the Erg as a standard of measurement.

The potential or actual energy of everything is measurable – we know what one horsepower is; we know how much energy a gallon of refined oil contains (depending on the efficiency of conversion); and we can measure the potential energy output of a healthy human, between the ages of 18 and 50, to give us a new unit, that of one human power; etc. In fact, the actual and potential energy of the world, as well as of individual nations or communities, can be calculated in terms of potential and realised energy. This listing, which takes solar power, wave-power, human power, etc. into account, represents the credit side of a nation’s balance sheet.

The debit side will contain a listing of wasteful energy consumption, e.g. numbers of gas-guzzling cars; per head power consumption; numbers of electrical appliances, etc. Add these up, and we have the negative side of the balance sheet. The differential between the two sides represents the value backing of this country’s currency.

The US Dollar, usually considered one of the world’s strongest currencies, under this objective formulation would slip into the middle ranks, in value terms, because of the enormous amount of energy wastage that occurs there, and its huge volume of energy imports (which is an energetic “cost” item). A Middle Eastern oil-rich country on the other hand, sitting on huge oil-reserves (= potential energy), plus plenty of potential solar energy, will show a very healthy positive side to the balance sheet. The negative side, by virtue of typically smaller populations, even with highly wasteful energy consumption patterns, will remain relatively modest. Because of the huge positive energy balance backing such a country’s currency, it would quickly be recognised as one of the strongest currencies in the world.

Another benefit of an energy-balance linked monetary system would be that a poor country like Bangladesh would no longer linger at the bottom of wealth league tables as its currency would have strengthened due to the large amounts of potential energy locked within its population and national boundaries.

The other joy of an energy-linked, objective currency system is that it takes the valuation of currencies out of the hands of speculators and places it back with governments and their people – if they find new sources of energy supply; develop better ways of releasing potential energy; and of reducing energy consumption, they will be able to put more genuine value behind their currency, so affecting their exchange rate and international standing.

The perceptive reader will immediately see the wider impact of such an objective energy-linked currency model. The Light Living Laboratory will in due course expand on this (a fuller version of this blog appears there).

Life could be simple …

I do not know who wrote this, a friend sent it. But I do know that it moved me in many ways. Ah the power of words! My apologies to you, the author, for not being able to acknowledge you. I will happily do so if you get in touch.

QUOTE

It doesn’t interest me what you do for a living.
I want to know what you ache for
and if you dare to dream of meeting your heart’s longing.

It doesn’t interest me how old you are.
I want to know if you will risk looking like a fool
for love
for your dream
for the adventure of being alive.

It doesn’t interest me what planets are squaring your moon…
I want to know if you have touched the centre of your own sorrow
if you have been opened by life’s betrayals
or have become shrivelled and closed
from fear of further pain.

I want to know if you can sit with pain
mine or your own
without moving to hide it
or fade it
or fix it.

I want to know if you can be with joy
mine or your own
if you can dance with wildness
and let the ecstasy fill you to the tips of your fingers and toes
without cautioning us
to be careful
to be realistic
to remember the limitations of being human.

It doesn’t interest me if the story you are telling me
is true.
I want to know if you can
disappoint another
to be true to yourself.
If you can bear the accusation of betrayal
and not betray your own soul.
If you can be faithless
and therefore trustworthy.

I want to know if you can see Beauty
even when it is not pretty
every day.
And if you can source your own life
from its presence.

I want to know if you can live with failure
yours and mine
and still stand at the edge of the lake
and shout to the silver of the full moon,
“Yes.”

It doesn’t interest me
to know where you live or how much money you have.
I want to know if you can get up
after the night of grief and despair
weary and bruised to the bone
and do what needs to be done
to feed the children.

It doesn’t interest me who you know
or how you came to be here.
I want to know if you will stand
in the centre of the fire
with me
and not shrink back.

It doesn’t interest me where or what or with whom
you have studied.
I want to know what sustains you
from the inside
when all else falls away.

I want to know if you can be alone
with yourself
and if you truly like the company you keep
in the empty moments.

UNQUOTE

I love you.

The Importance of the Letter “f” ….

Aside

I have been asked to review a book by Simon Best, editor of Caduceus, the well written and much respected magazine covering innovation in many areas, but mainly in health care and complementary medicine.

The book’s title is “2012 A Clarion Call” by Nicolya Christi, founder of the Worldshift Movement and resident near Rennes-le-Chateau in Southern France. I have just received it and am already enthralled; my review will be good.

One little idea from the book stands out : as we approach the much heralded watershed of 21 December 2012, we are still inclined to use the phrase “S..t Happens”, whereas it should really be (and will be after 2012) “Shift Happens”.

There’s a thought.

And another – while there is a plethora of prophecies for what will happen to the world in the run up to 2012, there is not a single one for 2013 and onwards!

To order the book from Amazon UK, go here –

From Amazon US, go here –

People v. Banks & Government

There we have it, all British banks are required to split their gambling (errr, investment banking) activities from their real (commercial) banking services.

First the banks said this would be too expensive and all costs would be required to be passed on to their clients; then the government said they had 8 years to implement these changes; and now the banks are saying that if this is not implemented simultaneously, on a global scale, they will be at a competitive disadvantage.

Absolute nonsense, I am older than many, but not too old to be able to recall that throughout my banking career, in the 1970s, we were required scrupulously to keep these activities apart by creating a virtual Chinese Wall between them. And investment banking then was much closer to real banking than it is today!

So, if the banks continue insulting their customers’ intelligence, and government hasn’t got the guts (and brains) to tackle them, surely the time has come for the customer to strike back – if we all stop servicing our debts to banks and credit card companies on a coordinated basis, banks and government will quickly sit down and come up with solutions. By taking this direct action we shall at least control the timing of events, rather than wait for the inevitable next crash to propel us into yet another ill-thought out knee-jerk solution.

We are continually being told that today’s high interest rates and charges are a form of insurance to cover increases in problem borrowers. Well, let’s call on this insurance.

If somebody has the energy to take on the organisation of this demonstration of customer power, then on the day the banks and government are forced into emergency talks, we need to insist that customers are directly represented. This is essential, for we have seen how time & again customer needs and interests have been studiously ignored.

Purple Cow Club

This is a recruitment drive. 40 plus years ago (it feels like yesterday) my then tiny godchildren stopped me on a walk and pointed into a field and said “look purple cows”. My first, very adult, reaction was going to be “nonsense, there are no such things as purple cows”. However, I loved and trusted my little charges, so knelt down to their level and spent about 5 minutes trying to see these cows. Using an old Irish trick I looked sideways into the field and – eventually – there they were, 5 purple cows. Since I have travelled the world and seen little clusters of purple cows everywhere; there is even a small herd in Hyde Park in London. I am life-time president of the Club that arose from this lesson and the many subsequent experiences.

If you are at a stage in your life in which you know that what you might not see may nevertheless still exist, then you have passed the first stage of your club membership application. Now all you need to do is to spot a purple cow and report it to me and your chances of being accepted into the Purple Cow Club are considerable. No cheating please, and yes, spotting a calf counts.

This picture is only intended to give you an idea of what a purple cow looks like – because everybody visiting this site will be able to see these cows, they cannot be real!

Got any ETFs?

I am writing this in September 2011.

Every now and then I forget that I have given up on the collective madness of our civilisation and how it permits small groups to do outrageous things to everybody else without anybody really caring, noticing or questioning what they are up to. This forgetfulness set in again when I heard that some young trader had beaten the fail-proof system of one of the world’s largest and most sophisticated banks, UBS, by losing them £1.2 billion. This the media quickly explains away as largely bad luck because he was caught mid-trade by the Swiss authorities deciding to adjust the value of their currency, plus a little bit of record falsifying.

We hear these explanations, read the newspaper lines … and move on to the next item presented by our eternally busy minds.

But STOP. What was the guy really doing?

This guy was a trader in a huge market for ETFs – Exchange-Traded Funds. They are a relatively new product that bankers have created and society has allowed them to get a way with it. An ETF is a basket of indexes, a bit like running a pool of bets in simultaneous games, races and other gambling events and placing a value on their collective outcome. Imagine! Clearly, because there are so many variables involved, it is not possible to give an exact, current valuation of such a Fund, as the components in the basket are all performing differently, often wildly differently than anticipated.

An investor buys shares in an ETF. You can imagine that the only way this can work is by some powerful computer programmes monitoring the performance of the constituents of the basket, projecting these forward and basing a current price on how the indices in the pot are expected to perform. Typically ETFs will specialize by creating baskets that contain defined indices like the Spider (SPDR) that tracks the S&P 500 index; or Currency; or Bonds; or the Auto Industry; etc. But all they are doing is betting with money, either we, society, or they, as money printing institutions, provide. Money creating money without anything of value being added in between does not reflect the laws of nature.

If you look at money as energy, as potential, or even as seed-stock, you can immediately see that you need to place it or plant it somewhere to get something of value back. Only by adding something new can it be said that value is being created. Much of today’s banking by-passes creating something new, instead simply focuses on making more and more sterile money. Only when such speculation goes wrong, are heads hung in mock-shame, and in embarrassment at being caught out – and a new financial instrument is created to make yet more money and leave Joe public even more in the dark.

Are we as a society stupid, or mad, or so brain dead, that we are not willing to start asking aloud what role we want banks to play and then enact legislation that will force them to serve the greater good, rather than a narrow, very small greedy minority. Because we did not challenge the banks in the preceding phase of this corruptive process (when the only value that banks had was that against which they had secured their lending), they have in a sense now thrown all pretence to the wind and are openly doing what does not make sense, other than to hasten the decline of this system. Understand, when I say “banks”, I mean the system that encourages how banks behave, are managed, are supervised, are expected to perform, etc. Bankers too are simply doing what they think best, most profitable, etc., in accordance with the requirements of a system we are allowing to prevail.