When the Other Shoe Drops

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Recently, I have been putting myself through a crash refresher course on political philosophy and social theory, reviewing Macchiavelli, Rousseau, Marx, Herbert Marcuse, Hannah Arendt, Murray Bookchin, and others. The most satisfying analysis of the contemporary situation that I have found is Michael Hardt and Antonio Negri's Multitude (Penguin, 2005), which was a follow-up to their best-selling Empire (Princeton, 2000). Hardt is a political philosopher at Duke University, while Negri is Italian, and spent four years in prison for conspiring with the Red Brigade, an Italian revolutionary group (though the charges were highly dubious). Negri and Hardt aspire to be the Marx and Engels of our time; like Marx and Engels, their collaboration meshes the theoretical depth of Continental philosophy and the pragmatic tendencies of the Anglo tradition.

Today, the entire stream of radical Communist and revolutionary thought has been marginalized and forgotten in the US, outside of abstruse academic circles where it is employed in a distanced and theoretical fashion, and in shrill coteries that produce newspapers and protests but lack any meaningful influence on mainstream debate. Communism is associated with the grey, bureaucratic, murderous totalitarianisms that developed under that name in the 20th Century. What is forgotten is why Communist and socialist ideology once posed such a dangerous threat to capitalism as an alternative to the oppression of oligarchic rule. Because of this history, the very notion of ideology or social theory continues to be shunned in mainstream progressive circles, which focus on reformist initiatives.

In Empire and Multitude, Negri and Hardt do a heroic job of revisiting and revising Marxist philosophy in the light of recent developments. Negri and Hardt argue that the main or "hegemonic" form of production in our world is no longer material production, as it was in Marx's time, but "immaterial production," the production of concepts, images, communications systems, and affective relationships. If industrial capitalism created "surplus value" by hoarding the excess productive capacity of labor, our post-industrial capitalism creates value in a different way, by "expropriating" the "commons," in other words, putting tolls and privatized barriers around areas that could be freely available to humanity, such as intellectual property, the electromagnetic spectrum, or genetic material. The authors of Multitude see tremendous potential for human emancipation in the new collaborative networks of late-stage capitalism. They point out that the development of collaborative networks, such as those that produce open-source software, reveals there is no longer a need for a boss, or for any hierarchical form of organization. As an alternative, they present the possibility (though without providing any tangible models) of an emergent direct democracy that would function on a global level.

Negri and Hardt barely mention the ecological crisis in their work, and do not address the psychic and shamanic elements involved in transforming human consciousness. However, their work addresses one very real question that must now be explored, as we face the accelerating cataclysms of species extinction, resource depletion, militarism, and climate change: Whether the current political system -- with its compromises, corruptions, and multi-year cycles -- can be reformed, and transformed, to deal with these challenges to the continued survival of the human species. If not, then an alternative must be found -- and quickly.

As I learned while writing my books, certain areas and discourses are subject to extreme taboo and repression – repression not only of the ideas themselves, but even of the original intent behind the repression. In these arenas, the repressed material, when it is brought up to consciousness again, is greeted with ridicule, resistance, contempt, or utter blankness. I found this to be the case with psychedelics and psychic phenomena, along with other subjects. This knee-jerk dismissal is currently our attitude toward a straightforward reevaluation of Marx, Engels, Lenin, Rosa Luxembourg, and so on. On the other hand, items of "revolutionary chic" – such as Che Guevara t-shirts – are mass-produced as commodities, made ironic, and in this way emptied of significance or threat. The extreme blankness produced by repression can be a positive thing, as it opens the possibility for a quite sudden and powerful "return of the repressed," and a reassessment without preconceptions. The prospect that an egalitarian planetary culture - where, instead of being free to own private property, we are free from private property, as Marx once quipped -- would be preferable to this one now seems so impossible that it might catch on.

The absence of social theory from mainstream discourse is underscored by the lack of class consciousness in the US today. Recently, labor conflicts are becoming more visible and virulent again – the writer's guild strike in Hollywood and the stage hands strike on Broadway are just two of the most publicized examples. Yet these particular disputes are not analyzed – as far as I know – in a larger framework that looks at the development of class relationships as a whole. This is the case even though the disparity between average workers' income and the income of CEOs has grown to grotesque proportions, becoming a form of economic apartheid.

There are good reasons to propose that, in the very near future, a post-Marxist analysis of current class relations and social consciousness could become extremely relevant. Right now, we appear to be approaching a severe breakdown of the US financial system, with deep repercussions for the global economy. The ongoing meltdown of the subprime mortgage market is, according to this hypothesis, stage one of this process, and a crisis in personal debt will be the second stage - the dropping of the other shoe. Below, I have enclosed a summary of the economist David Martin's recent speech to The Arlington Institute, a futurist think tank in Virginia. Two years ago, Martin made a speech at Arlington where he foresaw the subprime mortgage market meltdown with impressive acuity (a transcript is available on the Arlington's website). His analysis of the credit landscape suggests that mass defaults on personal debt, starting in December, are going to overwhelm the capacity of banks and insurers, who will not be able to find bailouts. Bank insolvencies would lead to the failure of the privately held Federal Reserve. Currently, OPEC and China are shifting their holdings out of US currency, and the Euro is becoming the reserve currency around the world.

Martin proposes that by March we will be entering an entirely transfigured economic landscape. The logic of his argument seems compelling to me. As bank failures and mass defaults begin to mount up, people are going to need interpretive tools to understand their new situation, in order to react to it practically and deal with it psychologically. During a crisis, there is the potential for a major opening of awareness and compassionate understanding, or for a large-scale retraction into fear-based belief systems and Fundamentalisms. Sometimes you have both at the same time.

The imminent economic plunge, if it happens, cannot help but act as a multi-generational wake up call. These days, when I talk to people – especially people in their twenties – I often find myself stunned by their ignorance of the economic and social situation that surrounds them. And yet, I grew up with the same attitude of jaded indifference and the senseless assurance that nothing about politics, economics, or the environment had any real meaning, or would ever affect me in any tangible way.

This jaded indifference is the result of intensive conditioning by the media – the phenomenon of the "flattered self" brilliantly described in Thomas De Zengotita's book Mediated – and an alienated education system which "produces subjectivities" that fit the status quo. These manufactured subjectivities are cut off from any sense of responsibility for the social reality or the life-world that sustains them, and they are carefully conditioned to identify with this alienation as a mark of pride -- celebrities like Mick Jagger and Jack Nicholson, or their younger iterations, are patron saints of cynical hipness and smug narcissism. The concept of the "production of subjectivity" is a major one for Negri and Hardt, who see it as the most important form of production in post-industrial civilization. I will discuss this in greater detail in a future piece.

In our contemporary context, Negri and Hardt posit a global "multitude" of working people, rather than the Marxist proletariat of the past. Class distinctions do not hold in the same way -- as Negri notes in an interview, it is the total organization of society that is the "enemy," not a particular class. They argue that the dynamics of capitalist development have been shaped, primarily, by the desires of the laboring multitude, and the antagonism between the working many and the ruling few. The New Deal, for instance, arose out of the worker's movements here and abroad, above all the Russian Revolution, which sent shock waves through the Capitalist system.

Over the last decades, the US system has been increasingly based on debt. Where the media encouraged comatose consumerism, politicians succeeded by offering happy-faced visions of a world without sacrifice while they supported policies leading to increasing economic apartheid. In an atmosphere of extraordinary plenty and overt overproduction of comforts and goods, where huge fortunes are controlled by the elite few, where enormous waste is built into the system and encouraged by it, it seems only natural to be profligate, to assume that the hard limits defined by the shrinking realities of income are actually the delusion, and the media displays of endless bounty are the reality. The delusional and self-destructive profligacy of the populace is, possibly, also an act of subliminal aggression against the system’s false promises and betrayals (the deepest betrayal being the delusion that material success leads to sustained happiness).

The profligate spending of the masses is also a natural – almost biological – reaction to the corruptions of Empire. When the populace sees CEOs, politicians, and millionaires routinely escaping from their crimes, fleecings, and defraudings, they subliminally identify with them, accepting that this is proper behavior within the society, and will be rewarded rather than punished. Of course, the assumption of massive personal debt was not a conscious and calculated strategy of the populace to dismantle the capitalist system, but it could be seen as an unconscious strategy of sabotage. This could be the case, even though the financial system developed predatory, invasive, and deceptive tactics to reach the consumer base with constant inducements to accept more credit cards, loans, and mortgage refinancings. Psychosis and hypnosis work together to reinforce consensus trance.

In his book The Politics of Subversion, Negri argues that the ultimate discovery of the 20th Century was that “Capitalism is impossible,” and this was proved by the failure of the two major attempts to reform the capitalist system, the New Deal of the 1930s and the Great Society of the 1960s. This failure of reformist efforts was ultimately linked to the integration of the world market, which defined a limit of capitalist expansion. These limits were reinforced by the many forms of resistance that developed in response to the extensions of capital, from guerrilla wars to Green Parties. According to political philosophers of the past, capitalism cannot exist without new markets to exploit, in order to create surplus value. Marx wrote that Capitalism “is the first mode of economy which is unable to exist on itself, which needs other economic systems as a medium and support.” Without a new outside to absorb and digest, capitalism confronts “devaluation resulting from overproduction.”

Naomi Klein’s new book, The Shock Doctrine, analyzes how contemporary neo-conservative practice is based on utilizing natural or manmade disaster as a tool for leveraging increased privatization. Internal landscapes of the Empire can in this way be re-colonized by capital, after a catastrophe, and transformed. This is another symptom of the evaporation of any outside realm for capitalism to penetrate and absorb. The mass psychology of capitalism centers on this continual aggression, this need to grasp hold of the Other and make use of it, to convert difference to sameness. When the entire planet has been converted to sameness, as is now the case, this aggressive psychology goes into regression, seeking to defend itself at all costs. This entrenched psychology -- given iconic form by football games and right wing "shock jocks" -- must be properly understood so it can be addressed and its violent tendencies defused.

After the 1960s, the main engine of the US financial system shifted from the production of finished goods to financial speculations and transactions. This shift was symbolized by the iconic construction of The World Trade Centers in the early 1970s, “tuning forks” for the new frequency of predatory finance capitalism that developed through the 1990s. Unlike factory production, financial speculation does not require a large working class. In the United States over the last decades, we have witnessed an astonishing degradation. As Capital moved its factories overseas, the US dismantled its productive infrastructure and converted a population of trained technicians to unskilled “surplus labor,” filling service jobs. In some ways, the US has reverse-engineered itself into a Third World country, with its nomadic elite no longer tied to nationalist obligations - the financial meltdown should make this clear. Today, our primary export to China is soy beans, a raw material, while we receive electronic devices and finished goods from them.

During this process, the US rulers were confronted with the difficult question of what to do with the huge pool of nonspecialist surplus labor no longer required for the functioning of the system. One solution was to warehouse them in prisons (the US is 5% of the world population with 25% of the world’s prison population), another was to put them in the military (but popular resistance to the draft has made this difficult); another option was to create new bureaucracies and expand unnecessary aspects of the service sector. Another idea – a short-term solution but one that created the temporary illusion of abundance – was to encourage the amassing of personal debt, and then to turn that debt into a financial product, through securities, and sell those bundled debts up the financial pyramid.

With the end of any ideological effort to reform capitalism, the oligarchic elite began to shift increasing amounts of wealth to the top of the financial pyramid, crushing the middle class and the working class in the process. As Negri and Hardt point out, this shift was accompanied by a change in paradigm. Instead of classes with different interests, we now have a dualistic divide between the “included” and the “excluded”. Politicians incite and manipulate the fear of being part of the ever-expanding group of the excluded. For this reason, to take one recent example, Bush vetoed the child health care bill. To keep the fearful populace in line, the ruling regime offers "Neo-Malthusian" policies, and enforces a divide between respectability and misery.

It is increasingly obvious that the short-term thinking behind these arrangements has created a fragile and unsustainable situation. Something, or, more likely, many things all at once are soon going to break. At that point, the US political system's drift toward authoritarianism (as documented in Naomi Wolf's The End of America) may be given another strong push. However, as we have seen in Iraq and New Orleans, the control apparatus that is emerging is nothing at all like the efficient organization of European mid-century Fascism, driven by a mythological teleology and collective fantasies of racial purity. Instead, the postmodern form of authoritarian control involves a crude application of force and a general sloppiness, an almost uncaring attitude even toward its own intentions. For this reason, it is possible that a new level of authoritarianism and an intensified, nonviolent movement for positive change, orchestrated by civil society, could exist at the same time, at least for a while. But any significant change would require a serious raising of social awareness and consciousness of oppression among the populace, along with a deeper collaboration among progressive groups.

An imminent meltdown of the US financial system, if it is indeed on the way, should be welcomed, despite the hardship it may cause to many of us, our friends and relations. The system of globalized post-industrial capitalism is quickly destroying the planetary ecology, and if it is allowed to run unchecked for much longer, we will forfeit our future on this planet. Historically, crisis is the crucible for transformation. If the illusion of US prosperity disappears, the world may be receptive to alternative development models. After all, China and India are seeking to achieve the "American Dream" promised to them by decades of our pop culture propaganda.

With the approaching economic collapse, the Left has one more opportunity to emerge from dormancy and build a social program and a transformative plan of action. Negri and Hardt suggest that a revolutionary shift might not emerge in successive stages over time, as in previous insurrections, but in one sudden unfolding: "It may be that insurrectional activity is no longer divided into ... stages but develops simultaneously. As we will argue in the course of this book, resistance, exodus, the emptying out of the enemy’s power, and the multitude’s construction of a new society are one and the same process."

This possibility is based on Negri’s fascinating view of the nonlinear dynamics of historical transformation. He suggests, essentially, that events lie on a spiral, and an entire complex of concepts and organizations can reassemble itself all of a sudden, based on patterns of the past that are lost to conscious awareness. The long history of humanity’s struggle against oppression is available to all of us, encoded within us. Negri’s rhizomatic view of transformative processes calls to mind Rupert Sheldrake’s concept of “morphogenetic fields” as well as the Jungian archetypes, defined as clusters of psychic energy that can spontaneously appear within the psyche of the individual or society. It also fits the alternative model of time and development that some visionary scholars find encoded in the Mayan Calendar. According to this hypothesis, the entire complex and rich history of radical thought and praxis could suddenly emerge once again, in a new iteration, when conditions are prepared for it.

The immediate need for the progressive community is to articulate a positive agenda, along with tactics and strategies for bringing this agenda to fruition in the shortest time possible. The main thrust of the “Left” in the last decades has been criticism and complaint. This has failed to create a powerful attractor or an organizational infrastructure for social transformation. As the Dalai Lama put it, everyone wants a better life. If you can show them how to get there, they will follow. The Left has failed to achieve this simple task. Regeneration of the movement requires a new visionary paradigm that integrates the spiritual shift made by the counterculture since the 1960s with a compassionate and egalitarian program that has tangible solutions to offer to a broad spectrum of the populace.

Considering the preponderance of military force, there is no hope for violence as a tool of social transformation. Any radicalized program should focus on an absorptive strategy that neutralizes its potential opponents by engaging and transforming them - a Tantric approach, that sees no dualities nor enemies. If we are going to save the world situation from pitching over into the abyss, the media – especially the mass media – has to be intensively repurposed to beam out a new paradigm that integrates sustainable practices with inner transformation. The mass media could be used for the “production of subjectivities” focused not on the toxic "American Dream" of omnipotent ego, competitive greed, and endless material abundance, but on sustainability, interconnectivity, community, and psychic development. By my reckoning, this unlikely reversal has to happen in the next few years.

 

Image of Antonio Negri by PE Weck, used via a Creative Commons license.

 

Comments

Arlington financial analysis

 

http://www.m-cam.com/display_news?id=240

* The next shoe to fall is consumer credit

Currently as reports came in on 3rd quarter, foreclosures were up 470% this quarter alone. They will be up over 500% this coming quarter (4th). A foreclosure in our terms is when the bank has officially declared an account insolvent and tries to regain the asset (if it exists). The person who is foreclosed upon can no longer secure any traditional consumer credit. This in turn goes straight to the banks as no one will be able to get the store issued charge cards.

A minority of people pay off their consumer debt every month. When one considers the combination of consumer credit card debt and the compounded debt of "home equity" financing, we estimate that less than 20% of people actually carry no consumer credit from one month to the next. Many of the ones who don't pay off their carried consumer debt have at least one credit card at its limit and therefore lack credit capacity. Most have their paycheck directly covering bills and servicing the minimum balance due.

Therefore people who are foreclosed upon will not be able to obtain credit and since their paychecks will be maxed out, there will not be extra cash left over from the paycheck to service a new debt.

Next, everybody buys things at Christmas. As much as 40% of retail sales are done in the 4th quarter of the year -- i.e. the retail miracle. The purchase decline in retail goods this fourth quarter will occur because many credit-only consumers will lack the credit capacity mentioned above. Frequently, people overcharge their limit and the banks (albeit a profit center for subprime credit users) levy a penalty by increasing interest rates and charging additional fees. In the 4th quarter of 2007, the amount of people overcharging their limits will be too many for the banks to handle. We do not have a system in place to deal with overcharge on that scale. A substantial number of this December's purchases will go into an overdraft on credit limits.

CDO -- Collateral Debt Obligation -- Consumer Credit

Consumer credit pooled debt investment instruments (a form of CDO) are originated and rated based on underlying historical credit behavior and a complex series of predictive models for repayment dynamics. CDOs have "strips" which are a combination of similar profile tranches within a larger investment product. Based on the market's appetite for risk, investment performance guarantees (or credit enhancements) are packaged with the credits. These credit guarantees are issued by insurance companies, reinsurance companies, and other specialty finance companies -- many operating with extra-territorial jurisdiction rendering fiscal oversight more complicated.

These strips come in several categories:

* Investment grade
* Almost investment grade
* Junk and
* Why did we give them a credit card?

All of these grades are priced on historical default rates. The credit insurance companies (AIG, MBIA, Ambac, Financial Security Assurance, Channel Re, XL, Zurich Re and other reinsurers) have, from time to time, issued credit guarantees to the securities. Banks sell debt in the form of a Collateralized Debt Obligation (CDO).

Minor shifts in default actuarial activity (+/- 25 basis points) from normative behavior is absorbed within pricing of these financial guaranty contracts. However fundamental shifts (hundreds or thousands of basis points in one quarter) are not built into the model and result in credit enhancement insolvency on a major scale. When the insurer cannot pay based on its own liquidity impairment, the bank is left with catastrophic (an insurance term for excessive loss outside of expected) exposure.

If in a single quarter we have an increased foreclosure rate of 400% (or 4000 basis points) the insurance contracts simply cannot handle that kind of drastic shift as evidenced by the write offs in the third quarter. When we will follow the drastic third quarter with a loss of 500% in the fourth quarter, the trajectory becomes clear.

Neither the banking nor the insurance industry has a historical experience in dealing with this type of challenge and neither has the liquidity linked to these contracts to support system wide collapse.

* Where was the announcement of this? There was no announcement.

However Hank Greenberg is resurfacing in AIG leadership even during an SEC investigation because without him, no one else can remember where the counterparty risks are. In order to save the insurance industry, shareholders have looked past alleged SEC violations as there is no one with Mr. Greenberg's awareness of the market and counterparty agreements who can hope to navigate the coming challenges. In the 4th quarter, the US will have another record foreclosure announcement. Once you're over 25% (25 basis point) foreclosure, all models are broken.

Under a consumer credit melt-down, Capital One and/or Wachovia are likely going to put a massive foreclosure liability to an insurance company and the insurance company will not have liquidity to cover the exposure.

This is the problem we got into when we issued credit card debt on top of secondary mortgages -- (inflated the value of the home) and gave out credit based on faux equity that no one really had.

The reason why this problem is the second shoe to fall (subprime mortgage collapse was the first shoe) is because consumer credit has a different foreclosure frequency than traditional mortgage credit.

December is when the maturity of the giant buyout of the economy moves.

By December, you'll have a second round of charge offs based on consumer credit. The real big problem -- when you foreclose on consumer credit, people stop buying things. When people stop buying things, we don't have a tertiary way to pump liquidity into the market. People won't have extra cash from their paychecks and won't have capacity on their cards.

Try this case study:

Go to the mall and stand in front of counter at Victoria Secret. Watch what happens when someone wants to pay with cash. The clerk won't know how to ring up cash. They will need a manager to come over to give change and unlock drawers. When you don't have capacity on those cards, you don't buy things. VISA credit cards actually denigrate using cash in their run-up-to-Christmas add campaign.

Next, go to any savings bank data set. If you were going to spend $1000 in cash this Christmas, can you do it? For the most part, the answer would be "no" because we have had a net negative spending for the last 5 years.

Therefore there will be depressed consumer spending this Christmas but what is spent, people will overcharge. This will take what used to be good investments in CDOs and will change the dynamic. If you used to be a person who paid their bills on time, you will now only pay half. If the credit companies are counting on the top two tranches to pay their card off in full and they don't, they won't have liquidity to cover the rest. The banks cannot afford the top tranch paying half.

The estimates are out. There will be at least $400B in the first round of charge offs in the CDO market.

We're not going to be done with the subprime mortgage when the CDOs fall. Therefore we will have an insolvency problem with the banks that are mentioned above.

This is the kiss of death of a privately held Federal Reserve. For the Federal Reserve to function, its stakeholder banks (like JP Morgan Chase) must remain viable and liquid. When one of them, or any major bank in the U.S. (like Bank of America, Citibank, Wells Fargo, Bank of New York, Washington Mutual, etc.) is impaired or ceases to exist, the architecture of the Fed's capacity to respond to systemic challenges is unsustainable.

If the banks have no money, they can't pump liquidity into the market. Taking half of a trillion dollars out of market in a single distressed write down becomes problematic. The US banking system does not have the liquidity to take the hit.

The actual solvency of the Federal Deposit Insurance Corporation is relatively indecipherable due to the fact that their treasury management processes (and the risks of their own investment strategies) are not uniformly disclosed with sufficient transparency. The FDIC was set up for isolated problems with a few bad banks but is NOT prepared to "insure" the system in an industry-wide crisis. The actual liquidity reserve of the "insurance" that Americans view as their safety net is 1/100th the actual exposure of outstanding deposits. The actual coverage ratio for the Bank Insurance Fund (BIF) fell below 1.25% in 2002, the same year that less stable credit practices were adopted by America's leading banks.

The funny part is that the Federal Government will be on holiday when all of this happens. There will be no one to put freeze actions and moratoria on actions. The only way you stop the cataclysm is to put together civil actions on deposit withdrawals.

As I discussed previously, the Chinese currency wild-card may become relevant far sooner than expected. An effort by China to convert its $1.4 trillion U.S. Treasury holdings into euros is not viable for many reasons -- not the least of which is the European Central Bank's inability to absorb such an event. As China continues its rush away from supporting U.S. Treasuries and as Middle Eastern investors are buying them up in more diversified holdings, a new "currency exchange" is unfolding. Realizing that they cannot liquidate their holdings, it appears that the Chinese are currently using their U.S. Treasury holdings as collateral for euro denominated purchases and long term infrastructure transactions. In other words, they may be "liquidating" their holdings as collateral and, in so doing, effectively migrating to non-dollar value without ever having to officially dump their current Treasury holdings.

Therefore, collateralize the credit in dollars -- especially if you're long in dollars. The lender/financier won't call the note because you have it structured in such a way to both allow it to perform and hold illiquid collateral that no one wants. This essentially inflates euros. Although you can't sell dollars, the whole purpose of collateral is that it is a second source of payment -- collateral is there to down rate the risk of the loan. Secondary becomes irrelevant.

When February comes, the Chinese are going to do something as they will have to decide what the exposure is going to be with the treasury. As I see it they have to just dump the treasury. They only keep it because they can use it -- they have 43% direct/indirect of US treasuries so they'll dump them on the market.

The US Congressional pressures to decouple the RMB will work, but not in the way we want. Our plan includes helping them hold on to the treasuries, it does not involve them not holding the dollar anymore. The US wanted the tether to be part of the float. This will cause disenfranchisement of the US electorate (during primary season). February is also when public (media) will realize we won't pull out of this.

Side note: Mayor Bloomberg could enter the race at this point, being the savior candidate (at least economically), but has $1B dollars in non-liquid money so he may not be able to enter.

* March is when we realize that the dollar doesn't come back.

OPEC price with the whole fluctuation of oil futures presages the event. They are going to run the price of oil as high as they can get it on the dollar, while buying US treasuries from China with the money. When the dollar does collapse, they'll flip denominations. The wild card is long about March when the OPEC cuts spot oil off the dollar to the euro. One can look at the current oil price at close to $100/barrel and fail to see that, as this premium price is currently turning around and investing in a weakening dollar, the effective price (less the dollar investment hedge) is probably closer to $50/barrel than the spot price reflects.

Currency problems will change the game -- they are financially structuring themselves to take the hit.

When we can't afford to buy oil commodities on a spot market -- it compounds the problem however the consumer that Saudi Arabia ships to is liquid (China). In the US it is a big problem. There is still a market for oil; it just changes. When you come out of Straits of Hormuz, turn left.

 

"Will the transformation."-Rilke

right on

Very well put, Daniel. Thank you!

Yes.

Thanks for the insightful synthesis. Have you read The Fifth Sacred Thing? It is a great fictional example of positive, non-violent social transformation.

The Psycho-Spiritual Dimension of the Other Shoe Dropping

Daniel,

First, permit me to thank you for articulating these issues the way you have. They are complex and intimidating, at times incredulous, and are evoking powerful responses from people, which is the topic of my comments.

In our work together, we spend a great deal of time pouring through sources and trying to make sense of the events transpiring around us. These days, that is an increasingly difficult task, given the shocking amount of distressing news we are receiving on a daily basis, even as most of the true extent of the problems are obscured by the mainstream media, politicians, and pundits. This presents us with daunting challenges every day to maintain our diligence and continue to spread the information, all the while trying to maintain a positive attitude and not allow ourselves to be to subsumed by the grief and despair of portentous or traumatic news.

It is difficult to communicate the full extent of what is going on in the world, much less what we go through as investigators, to an audience outside our milieu. Those who aren't actively looking for this information are unlikely to come across it in the normal course of their day, and what they do see or hear tends to be watered down or spun, often without the appropriate larger context. This means that each additional new piece of information can cause a shock to their reality. Too many shocks in too short a time, such as we are seeing now, causes a kind of trauma, the response to which is often extreme. This most often involves deep layers of denial coupled with a kind of pathological positivity brought about by a culture that is chronically bad-news averse, where one is constantly cajoled to "lighten up" and "be happy." It's even worse in some of the artistic and spiritual communities which we call home, which has seen many an otherwise solid mind succumb to the empty panaceas of The Secret-like new ageisms that give people the excuse to detach themselves from the suffering of others, because those suffering others brought that suffering on themselves through their "negative thinking and bad thoughts." In a piece published last week In The Times, Silja Talvi, an incomparable journalist and a friend, writes about this secondary trauma within the context of the suicide of investigative reporter Iris Chang:

"Regardless of profession, many of us are unwilling (or unable) to look the other way in the face of war, rampant poverty, sexual violence, mass incarceration, the preventable epidemics of infectious disease and so on. The logical outcome is that we start to suffer feelings of sadness, hopelessness or despair. To do otherwise would require a level of detachment that, in itself, might be more troubling than anything else.

"As psychotherapist Gary Greenberg wrote in an essay in the May 2007 Harper’s, "These days my native pessimism was feasting on a surfeit of bad news—my country taken over by thugs, the calamity of capitalism more apparent every day, environmental cataclysm edging from the wings to center stage."

"This concept that individual mental suffering can, indeed, be closely linked to our social and political environments, is at the center of clinical psychologist Bruce Levine’s new book, Surviving America’s Depression Epidemic: How to Find Morale, Energy and Community in a World Gone Crazy (Chelsea Green). Levine is a longtime critic of the marketing and manipulation of mental illnesses by Big Pharma. For Levine, the extent of mental suffering in the United States is not in question. What is questionable, Levine says, is the notion that depression is disconnected from the political economy and from the meaninglessness of a self-absorbed consumer culture.

"Levine criticizes the notion that depression can simply be medicated away with adjustments in serotonin and/or dopamine levels. Levine also sets his sights on the idea that happiness can be bought, even the idea that happiness is a desirable state of being. From this perspective, it’s not hard to see that while states of ecstasy, love and joy are one thing, our society’s relentless “be happy” sloganeering is devoid of any real meaning or lasting application.

"All stigmatizing of frightening natural human experiences is good for a consumer culture," says Levine, "because labeling something as weak, sick or diseased results in buying of more products to shut down that experience, or divert or distract ourselves from it."

I also very much doubt it is by coincidence that the New York Times recently published "Denial Makes the World Go Round" The piece, a clear apologia sans irony, tells us denial is "ok", that it's an important part of getting along in life, that the denial you hold about the fidelity or honesty of your wife allows you to perceive dishonesty in the world around you, or in the alternative, live with a bad situation. It seems to me the latter is what they are really advocating. And what better time to begin reminding people of this, as they are about to embark on a personal debt nightmare as our economy sputters and coughs in the throes of the consumer credit meltdown.

Just this morning I was rather mercilessly excoriated on my local community's discussion list by an acquaintance who, I gathered, had reached a certain saturation point with what I was circulating.

He writes: "I will be upfront in saying that I am a little tired of the seemingly never-ending Chicken Little (he of “the sky is falling” fame) doomsday predictions and the radical distrust that seem to pervade many of your postings. Not only are the contents of some of these quite questionable as to their accuracy, but there are also better forums (and potentially more engaged audiences) for these types of discussions."

He goes on to say: "I have noticed that over the past few months, quite a number of your postings have been quite bombastic, dogmatic and extreme. They are often filled with seemingly know-it-all proclamations, covering myriad topics, from global politics to international relations, to drivers of current macro-economic changes, to environmental dangers, to the legal system, to US domestic policy, to the state of corporate America, to the underlying causes of certain medical/psychological conditions, and to just about any topic under the sun. These postings, often written quite passionately, are sometimes not only inaccurate, but blatantly incorrect."

He does not, however, offer any countervailing evidence which would have corrected supposed fallacies. He does proceed to ramp up the insults, though, coloring the accusations with his own particular set of adjectives and projections, most of which come from the canon of conspiracy theory:

"The content and tone of your postings generally imply that just about every institution is conspiring to destroy us. They drone on with predictions of doom and gloom, from complete economic collapse, to a legal system about to run amok and destroy us, to a political system that is pure evil in all its forms, to corporate America that is about to annihilate ‘the little guy’, to a future in which we, as a community, may have to break away from this society and all its evils and take shelter from the calamities around us by creating an alternative reality somewhere else. They essentially predict a near-total meltdown around us, and have labeled anybody who does not position themselves as anti-establishment as a corporate shill. Even if some of your gloomy “predictions” come true, they are hardly predictions at all, for those of us who stay informed about such issues from sources as varied as the ‘Wall Street Journal’ on one hand to ‘The Onion’ on the other, from Al Franken one side, to Bill O’ Reilly on the other. So there will be no “I told you so” factor regardless of what happens. (It’s always best to get information from multiple sources, multiple points of view, trying to understand why those who disagree with you in fact disagree with you.)"

To those of us studying the trends, none of these predictions or warnings are particularly surprising, although I must point out again, the color commentary and the conclusions he drew about my beliefs, motivations, or intentions were purely his own, and I believe, meant more pejoratively to mock and insult me. My response was to say that if he disputed something I have written or posted, rather than take up pages of ad hominem attack against me meant to discredit me in the eyes of my community, he should offer a counter-point or prove me wrong. In the absence of that, I said, he should try and consider that his post may have been a typical anxiety-based response to bad news, which is to say, attack the messenger with a measure of hostility. I explained that it’s normal to be bugged out about most of it, it’s a process called “cognitive dissonance” and it wreaks havoc with the psyche. I also said it's common to attack the messenger. It’s not acceptable, but it’s common. Prophets and their acolytes, throughout history, have been unspeakably brutalized for speaking truth to power.

But after all is said and done, my efforts were most likely in vain. Not only had he, in one fell swoop, made mocking light of the crises we are facing, and made sure he cast deep aspersion on my credibility and judgment, but he also made sure to mock our efforts to address it collectively. Allow me to explain.

The dig where he says I was promoting "a future in which we, as a community, may have to break away from this society and all its evils and take shelter from the calamities around us by creating an alternative reality somewhere else" was a reference to efforts made by members of our community to come together in the spirit of positive action and begin discussing the events we see unfolding around us, and planning for possible contingencies. It was inspired by a film I saw last spring, The Power of Community: How Cuba Survived Peak Oil. The Cubans were caught totally unawares when the Soviet Union collapsed and they lost their main source of support. They had to be creative and collaborative to solve their problems, which were daunting. What we face here in the US is on a magnitude and scale that the Cubans could never fathom, and I would argue we're much less prepared, nor are we as united a culture as the Cubans. It seemed the perfect time to begin talking about it.

The logic, at least to me, seemed pretty clear: If the economy collapsed tomorrow, would you be prepared? Are you prepared in the event of a legitimate terrorist attack or disease epidemic. What about a natural disaster? How about a disruption in the food or energy supply? What about another war, and increased martial law? What about domestic uprisings? Can anyone say these are not only possible in the coming years, but also highly plausible? I would even call some probable. What's to me the most shocking part of it all is that we have no contingency plans, nor any real awareness of the need for one. Could this be because we have sublimated and outsourced our survival to the Federal government, thinking that if anything goes wrong, FEMA will swoop in and save us? I am sure that's part of it, even after FEMA has shown they are both unwilling and incapable of helping masses of citizens in a crisis. I am also equally certain it is because there is near catastrophic levels of denial about the potential for disruption to our lifestyles. Somehow, however incredulously, people think this culture is immortal.

And yet, when we try and be conscious and proactive about this, we are subjected to ridicule. Is the ridicule warranted? I don't think so. This isn't a cult of personality or a group with ulterior motive, and we're not preparing to mass-suicide or be lifted up into the rapture. These are simply friends and family coming together to express mutual hope and fear, and turn their anxiety into action. The goals are only the safety and continuity of our community: food, communication, shelter, exchange. There are no overt political or ideological ends. And in the process of planning for our future, we strengthen our community bonds, give voice to challenges and concerns and learn how to formulate group solutions. Preparation is everything, and I for one don't want to be the one left without a chair when the music stops playing.

Ultimately, I am beginning to fear that there will be a new cultural divide, what can be characterized as an "Ant and Grasshopper" motif between those who get it and begin preparing for large-scale changes to our culture and lifestyle, and those who don't and who continue enabling the system. Although we speak of no more "us and them" and how only "we" can change the world and save humanity, nothing can be done for those who refuse to see what might happen and take it with the appropriate measure of seriousness. But for those who are open to it, there is a way to cope throughout all the trauma of bad news and the possible disruptions to our lives, as well as what can easily grow into relentless ridicule by those who do not accept your beliefs.

It's no longer a fringe idea to suggest that the way through it all is not only through the power of community, but also through spiritual transformation and personal growth. As you so deftly put it in your first Conscious Choice column, we need to move from Ego to We Go. In The Last Hours of Ancient Sunlight, a book about the end of the oil age, author Thom Hartmann. the populist political writer, suggests that to survive the effects of peak oil we develop a spiritual centernedness. David Korten argues in The Great Turning that only a mass-evolution of consciousness with a spiritual connection will give us the strength to navigate the massive changes ahead. Andrew Harvey call this "sacred activism", – the fusion of the deepest mystical knowledge, peace, strength, and stamina with calm focused and radical action. Harvey believes that only through acknowledging and moving through our individual and collective despair--our "Dark Night of the Soul'--will we emerge out the other side strong, balanced, and grounded. Starhawk and Riane Eisler speak of reintegrating the Divine Feminine. The Institute for Noetic Sciences calls this the "global shift." All of these speak to the same theme: Only a profound spiritual transformation will have the ability to save ourselves, and each other.

It pains me that even good intention is met with hostility, but that's often the case. We need to keep the information flowing, even if it's not all sunshine and lollipops, and keep developing our spiritual core to withstand the relentless onslaught of denial. Those who see it clearly need to be reassured that they are not alone. And if we truly believe that collective action and intention can change our reality and the course of future events, then it seems all the more critical that we get on the same page, move through our collective fear, turning it into fierce compassion, and begin building the kind of world we want. It is all, of course, right within our grasp. Dare we take hold of it, is where we stand today.

 

Charles Shaw

Executive Editor - Evolver/Reality Sandwich

strategy

Hi Charles,

Thanks for your long, thoughtful comment.

The one thing that I would address is something we have discussed at length: What is the best strategy for persuading people to take a different perspective on what is happening right now? I think the person who assailed you on the discussion board is giving you valuable feedback - he is telling you that he feels flooded by negative information from you, and this is shutting down his capacity to relate wth your ideas or your position. The best reaction on your end would be to ask yourself, why am I not reaching this person? 

I think that one has to be highly conscious of the overall tone of the messages one communicates, especially as there seems to be some truth to the idea that "consciousness cocreates reality" (even if The Secret overdoes it), or Rob Brezny's notion that "pronoia" is just as justifiable as paranoia. The failure of the Left, as noted above, has been due to its relentless harping on the negative. If you get that feedback from a lot of people, I would suggest that you listen to it and see if you can present the same issues but in the context of a larger transformative process that is potentially positive. 

"Will the transformation."-Rilke

Great Piece

Propaganda Anonymous This has been one of my favorite's to read yet Very well put man

Daniel and Charles - This is awesome

Daniel, and Charles as well, this is awesome. Thank you, thank you so much for all your work. This is truly a lot––huge––to absorb individually and collectively.

Daniel, I just finished your 2012 -- fabulous also. You are quite a brilliant, deep, rich and soulful man Daniel. And kudos to you for being so brutally open and vulnerable, naked, with yourself––a sign of strength and courage as well.

Thank you.

The year ahead...

I haven't wrapped my head around the financial crisis much lately, as it's something that rightfully requires some focused interest to grok the deep implications of what’s unfolding. Thanks Daniel, for the valuable insights.

Instead, the focus of my research lately has been on the ballooning water crisis here in Atlanta, where I've lived most of my life. I am eager to write a piece on this situation, but to be honest, I have been hesitant to begin as I can't find much of an angle to address it outside of bleak frustration or impassioned doomsaying. The most positive aspect I can see thus far is that, for me personally, it could inspire a transformative shift in my life that I’ve yet to fully realize. As Daniel mentions above in relation to the financial meltdown, perhaps this could be seen as a good thing for the citizens of metro Atlanta, as they would be shaken from their illusions and forced to consciousness of the unsustainable demands we’ve placed on our environment. This could be a beneficially transformative moment for many people.

In my research thus far, it seems very possible for the drought afflicting the southeast to continue into the summer months of 2008 and beyond, causing Atlanta's chief reservoir to dry up. This could only lead to profound destabilization of the region and perhaps the nation at large as power generation flounders, businesses close, sanitation degrades, and the sprawling city (and suburbs) is gradually abandoned by all who can afford to get out. The only thing that could conceivably prevent this catastrophic scenario from becoming reality is a prolonged period of heavy rainfall in the next few months; however, this runs counter to the predictions of climatologists who foresee a dry winter and intensified drought continuing, perhaps over several more years. The Army Corps of Engineers is now counting 77 days of water remaining for metro Atlanta. In the meantime, not much has changed; life continues, unbelievably, as normal for the majority of Atlantans, as if nothing is amiss.

Next spring will also reveal whether the honeybees will recover from the blight of Colony Collapse Disorder that nearly disenfranchised many of the world’s commercial beekeepers. A recurrence would mean almost certain insolvency for these critical stewards of pollination, and many global harvests would suffer. Of course, we also move in anticipation toward a national election in 2008 – a historical event that should raise anxiety levels in all Americans who share with Naomi Wolf a foreboding sense of a fascist shift in the air. It seems there are indeed many powerful events culminating in the near future.

I raise these disparate issues here not to incite greater fear or despair, but out of the dutiful sense that we need to pay attention to these developments in the coming months. I can relate to Charles’ predicament of facing opposition from those in comfortable denial. I am a regular contributor to a local nightlife message board here in Atlanta, and over the years I’ve met with similar rebukes in my efforts to enlighten its readership. However, my recent postings about the imminent catastrophe facing Atlanta (no less dire than many of my more controversial campaigns there) have met with surprisingly little resistance and seem to be mobilizing awareness. This is, of course, due primarily to the fact that this is a crisis that finally hits home – denial isn’t such an attractive option in this case, when we’re worried about our own backyards.

I suppose many people have to be personally faced with dramatic effects before they will acknowledge the long-ignored cause. In the meantime, we should continue to spread compassionate awareness to reach those who are ready to accept it: as things progress, I feel many more people will reach this point and will come to us, ready to listen.

-ST

There Will Be No Applause

Daniel Pinchbeck has written an excellent piece of thought that deserves to be digested.

 

I have been following the economic systems which are heading towards collapse, but two figures keep resurfacing to the top. One is 80% of people on Earth have no access to water in their dwelling (this does not address the safety of water), and the second is that 50% of our fellow human beings have no facility to evacuate their urine and feces.

 

While the 4% of the human population that the U.S. are due for a rude awakening, many people world wide are already facing despair and a nightmare without an ending in sight.

 

 

 

 

Between the idea
And the reality
Between the motion
And the act
Falls the Shadow


T. S. Eliot

Local Concerns

ST, I'm with you on more pressing concerns. I live in western NC and though lack the population of Atl we are experiencing the same drought. I recently took my son to a football game in Charlotte and noticed that even though the area is in a drought there were no notices for the thousands of people to minimize flushing....I felt guilt for attending and am concerned about how major cities like Charlotte and Atlanta will fare if this continues. I now am facing a drying well, though thankfully see rain in the horizon and realize the necessity of alternative means of survival.

what to say about Atlanta drought

Hi St,

Thanks for your thoughts.

As to writing about the Atlanta drought, I think it would be good to put on a journalist's cap and see what happens. Call the Mayor's office, maybe FEMA as well, and ask what contigency plans are on the table if Atlanta runs out of water. Also, perhaps look into the history of the situation - were there bad engineering decisions made? Who has been in charge of the decisionmaking process?

The next thing that might be interesting to look at is what could happen. I read that Atlanta might siphon water from the Tennessee River. Could a conduit be built in accelerated conditions? Is this being pursued? If resettlement is necessary, where in the region is water plentiful? Are there urban planners, especially ones with Buckminster Fuller-style design science backgrounds, who are looking into this scenario? How many people could be reabsorbed into the countryside?

Are there any historical examples of a major city running out of water? Maybe Diamond's "Collapse" has some historical parallels?

Also I believe there are a number of cities and regions around the world approaching similar conditions. TruthOut listed them recently. It might be interesting to do a little searching and see what types of contingency plans they are pursuing.

Perhaps there are also visionary technologies related to water systems, desalinization etc?

"Will the transformation."-Rilke

America is Drying

Good suggestions, thanks!

In case everyone missed this NYT Magazine article from a few weeks back, it's required reading. Jon Gertner's "The Future is Drying Up" sees hard times in the near future for a water-starved and exponentially growing American West. Even the most innovative and rigorous water management techniques, under the most savvy managers, is no match for unchecked growth and a turbulent climate.

-st

the fall

As frightening as an economic collapse is, it would seem that it cannot be ignored. So to Charles, thank you for writing with a sense of urgency, a call to action. For those that think they can manifest their way out of it...I hope they have great intentions. At the least it will be a wonderful, evolutionary challenge for all of us. Thanks for the intro to Negri, Daniel. With the concern of consumer debt I've been wondering if we won't see debtors prisons arise out of these troubles. It would seem another step toward facism. Yet, for those in debt there already exists a sense of slavery to the job and the American ideal.

community mind

Feed me the power of positivity. I can digest that. This is a scary time, but I am slightly eased with the notion that we must welcome the collapse to make way for the next age. I would love to feel our coming together within these brave anti-establishment modalities might actually be the revolution slowly making it's shape so it can comfortably assert the new mindset with a subtle and effective shift. For the time being, one of the most radical things we can do is to belong to a community of like-minded free thinkers. I'm happy to join Reality Sandwich on Daniel's introduction. And to go off to a gathering today to amplify the assertion that we ARE authoring the new way, and we will be ready to gracefully guide the flow toward the greater-good when pushed. Gather up.

Pronoia

Hi Daniel,

Thank you as always.

In terms of creating "pronoia," whether artistically or interpersonally:

As a musician, I've lately found that my non-lyrical ("instrumental") compositions/improvisations seem to have a healing and/or transformative effect upon my listeners. Whereas, the songs I've written with words in them are almost totally self-absorbed, in such a way as to frequently alienate my potential listeners. They might say, "That's clever," but they never say, "That was completely awesome."

I don't want to be clever, I want to touch people and lift them up (if I have any sort of sense of responsibility toward my fellow humans, and as an artist I have to consistently remind myself that this is key).

So, although I have absolutely no idea how I will cope when our economy completely collapses (I'm not sure I'm coping economically anyway, as I have no "credit"), I feel like I'm better poised to contribute something positive now that I've had this bit of enlightenment.

Even if society changes to the point where I won't be in a position to play keyboards requiring electricity, etc. (my usual modus operandi), I will be able to remember something of the positivity of my recent performances which have given something to a community of listeners, whether strangers or known to me. I will (I hope) be able to apply that sort of spirit to perhaps less bourgeois pursuits, should the need arise. And I imagine it will.

The only time I ever have felt like that previously was at the Rainbow Gathering (2006 and 2007), and I have a feeling that that experience is excellent training for the Earth after the shoe drops, etc.

I was moved to write after reading much of your Reality Sandwich work lately, and hope my contribution here is not a waste of anyone's time.

Hey Man

Let’s be positive, the Beatles are coming back, the Yellow Submarine is surfacing, and I am hearing ‘Here Comes the Sun’.

 

 

Between the idea
And the reality
Between the motion
And the act
Falls the Shadow


T. S. Eliot

China & India

India with a population 1.2 billion has 800 million people making $2 per day. Many of India’s other population is much like the U.S. living in comparable housing and luxurious shopping malls. These ‘modern’ living conditions are ‘walled off’ from the 80% of the greater part of India. India’s economy is growing at about 11% annually.

China’s economy is growing at an even higher percentage than India. The current account of automobiles for India is 11 for every 1000 registered drivers while China has 9 automobiles for every 1000 registered drivers.

It is not rocket science to see that if the U.S. goes belly up economically the populations of India and China will fill the demand for the production of more automobiles and widgets to fill their new shopping malls.

It is time to wake up and face the facts; if it ‘bums people out’ or is ‘not positive enough’ then get out of the way.

Between the idea
And the reality
Between the motion
And the act
Falls the Shadow


T. S. Eliot

it's great to see everyone...

appreciating and participating in efforts to help bring these concepts and perspectives, gifts of cognitive liberty to a wider audience. my own dealing with denial and ignor-ance amongst friends and loved ones in my immediate circle have met with disappointing but understandable results. what i'd like to present to my fellow reality sandwichers are the best resources for those feeling the psybiological imperative to rescue their fellow species. the tao te ching provides, to my mind, the greatest advice on the art of uplift ever crafted by humanity, and numerous elucidations are collected on the site-link below: truetao.org. but to those of a more active bent i suggest a look at the precious thought seeds being visually transmitted from organelle.org. the essays in the faq about "rings" in particular seem to take the ideas of social transformation and creative communtity solutions to their organismal evolution. i would be happy to share my experiences and inquiries into the origins of the struggles our species modernly finds itself in. it seems virtually no one in my physical nearness wants to hear these things, and reality sandwich has been a real blessing for me, helping me see that there are others "out there" who feel the need to stand united in the face of cognitive slavery. ideas swap: nihilatron@hotmail.com (don't be put off by the email address, i was a rationalist, materialist, and eventually a nihilist through highschool until friends at the time had a child. and i haven't changed the damn thing in a while)

www.organelle.org

www.truetao.org

Emerging social movements

Dear David, Your text is very very congruent with the way we have tried to approach the issue of political and social at p2pfoundation.net, which is a global network for research on the open/free, participatory and commons-oriented paradigms.

 

May I invite you to look at my own set of proposals for the renewal of the emancipatory tradition, see:

http://www.masternewmedia.org/news/2007/11/03/the_peer_to_peer_manifesto...

http://www.masternewmedia.org/information_access/p2p-peer-to-peer-econom...

http://www.masternewmedia.org/information_access/p2p-peer-to-peer-econom...

the above are simplified versions, based on the foundational essay available here at http://www.ctheory.net/articles.aspx?id=499

 

I have summarized our point of view in a 16-point manifesto:

 

1. Our current world system is marked by a profoundly counterproductive logic of social organization: 1. it is based on a false concept of abundance in the limited material world; it has created a system based on infinite growth, within the confines of finite resources 2. it is based on a false concept of scarcity in the infinite immaterial world; instead of allowing continuous experimental social innovation, it purposely erects legal and technical barriers to disallow free cooperation through copyright, patents, etc…

 

2. Therefore, the number one priority for a sustainable civilization is overturning these principles into their opposite: 1. we need to base our physical economy on a recognition of of natural resources being finite, and achieve a sustainable steady-state economy 2. we need to facilitate free and creative cooperation and lower the barriers to such exchange by reforming the copyright and other restrictive regimes

 

3. Hierarchy, markets, and even democracy are means to allocate scarce resources through authority, pricing, and negotiation; they are not necessary in the realm of the creation and free exchange of immaterial value, which will be marked by bottom-up forms of peer governance

 

4. Markets, as means to to manage scarce physical resources, are but one of the means to achieve such allocation, and need to be divorced from the idea of capitalism, which is a system of infinite growth.

 

5. The creation of immaterial value, which again needs to become dominant in a post-material world which recognized the finiteness of the material one, will be characterized by the further emergence of non-reciprocal peer production system.

 

6. Peer production is a more productive system for producing immaterial value than the for-profit mode, and in cases of the asymmetric competition between for-profit companies and for-benefit institutions and communities, the latter will tend to emerge

 

7. Peer production produces more social happiness, because 1. it is based on the highest form of individual motivation, nl. intrinsic positive motivation; 2. it is based on the highest form of collective cooperation, nl. synergistic cooperation characterized by four winners (both the participants in the exchange , the community, and the universal system)

 

8. Peer governance, the bottom-up mode of participative decision-making (only those who participate get to decide) which emerges in peer projects is politically more productive than representative democracy, and will tend to emerge in immaterial production. However, it can only replace representative modes in the realm of non-scarcity, and will be a complementary mode in the political realm. What we need are political structures that create a convergence between individual and collective interests.

 

9. Peer property, the legal and institutional means for the social reproduction of peer projects, are inherently more distributive than both public property and private exclusionary property; it will tend to become the dominant form in the world of immaterial production (which includes all design of physical products).

 

10. Peer to peer as the relational dynamic of free agents in distributed networks will likely become the dominant mode for the production of immaterial value; however, in the realm of scarcity, the peer to peer logic will tend to reinforce peer-informed market modes, such as fair trade; and in the realm of the scarcity based politics of group negotiation, will lead to reinforce the peer-informed state forms such as multistakeholdership forms of governance.

 

11. The role of the state must evolve from the protector of dominant interests and arbiter between public regulation and privatized corporate modes (an eternal and unproductive binary choice), towards being the arbiter between a triad of public regulation, private markets, and the direct social production of value. In the latter capacity, it must evolve from the welfare state model, to the partner state model, as involved in enabling and empowering the direct social creation of value.

 

12. The world of physical production needs to be characterized by: 1. sustainable forms of peer-informed market exchange (fair trade, etc..); 2. reinvigorated forms of reciprocity and the gift economy; 3. a world based on social innovation and open designs, available for physical production anywhere in the world.

 

13. The best guarantor of the spread of the peer to peer logic to the world of physical production, is the distribution of everything, i.e. of the means of production in the hands of individuals and communities, so that they can engage in social cooperation. While the immaterial world will be characterized by a peer to peer logic of non-reciprocal generalized exchange, the peer informed world of material exchange will be characterized by evolving forms of reciprocity and neutral exchange.

 

14. We need to move from empty and ineffective anti-capitalist rhetoric, to constructive post-capitalist construction. Peer to peer theory, as the attempt to create a theory to understand peer production, governance and property, and the attendant paradigms and value systems of the open/free, participatory, and commons-oriented social movements, is in a unique position to marry the priority values of the right, individual freedom, and the priority values of the left, equality. In the peer to peer logic, one is the condition of the other, and cooperative individualism marries equality and freedom in a context of non-coercion.

 

15. We need to become politically sensitive to invisible architectures of power. In distributed systems, where there is no overt hierarchy, power is a function of design. One such system, perhaps the most important of all, is the monetary system, whose interest-bearing design requires the market to be linked to a system of infinite growth, and this link needs to be broken. A global reform of the monetary system, or the spread of new means of direct social production of money, are necessary conditions for such a break.

 

16. This is the truth of the peer to peer logical of social relationships: 1. together we have everything; 2. together we know everything. Therefore, the conditions for dignified material and spiritual living are in our hands, bound with our capacity to relate and form community. The emancipatory peer to peer theory does not offer new solutions for global problems, but most of all new means to tackle them, by relying on the collective intelligence of humankind. We are witnessing the rapid emergence of peer to peer toolboxes for the virtual world, and facilitation techniques of the physical world of face to face encounters, both are needed to assist in the necessary change of consciousness that needs to be midwifed. It is up to us to use them.

 

17. At present, the world of corporate production is benefiting from the positive externalities of widespread social innovation (innovation as an emerging property of the network itself, not as an internal characteristic of any entity), but there is no return mechanism, leading to the problem of precariousness. Now that the productivity of the social is beyond doubt, we need solutions that allow the state and for-profit corporation to create return mechanisms, such as forms of income that are no longer directly related to the private production of wealth, but reward the social production of wealth.

 

Michel Bauwens

peer-to-peer

Hi Michel,

There proposals look very interesting, and very much aligned with Negri and Hardt's ideas. A few questions for you: Do you have a tactical and strategic plan for bringing about this systemic change that you are actively working on, or is circulating the ideas enough to make it happen?

Second question: What happens to private property and oligarchic wealth in your proposal? Is physical property limited, collectivized, transitional, or what?

Third question: What specific form would reform of the monetary system take? Negative interest? Value linked to perishable goods and products? Would this be accompanied by a socialized form of income distribution?

And another one: Are there any forms of production that the peer-to-peer model would not be able to account for? Would feature films be possible under this model, for instance, or would the nature of cultural production have changed to the point where people wouldn't be interested in that form of expression?

"Will the transformation."-Rilke

p2p questions, replying to Daniel

Hi Daniel,

I was on the road for 3 days, no internet connection, but I propose to tackle your questions one by one.

 

First question: There proposals look very interesting, and very much aligned with Negri and Hardt's ideas. A few questions for you: Do you have a tactical and strategic plan for bringing about this systemic change that you are actively working on, or is circulating the ideas enough to make it happen?

 

Response:

 

I should start by saying that my approach is naturalistic, i.e. closely observing what is already happening, both in actuality and potential, and to interconnect best practices so that we can create stronger alternatives. As Negri says: the christians did not fight the empire, but constructed new social practices and institutions, which took over when the slavery-based meta-system collapsed.

What we must expect to see is: 1) at first transgressive behaviour, i.e. the phase of p2p filesharing; 2) constructive behaviour: this is the phase we are witnessing now, people are everywhere building and trying out p2p alternatives and consolidating them; 3) eventually, and we're clearly not ready for this, we will build a social movement that can obtain institutional reforms in the existing world.

Another aspect: because p2p is proving to be a superior mode of producing value (as production, governance, and property system), we see the existing institutions using them to their own benefit, but they thereby also strengthen p2p alternatives, which are both immanent (within) and transcendent (outside) the current logic. Both the ruling elite and the value-producers are therefore in the process of reconfiguring themselves into respectively netarchical capitalists (the platform owners) and peer producers.

As p2p is a result of distributed networks and their 'affordances', a good strategic bet is the 'distribution of everything', i.e. to support all the trends in organisation and technology that create more and more peer to peer dynamics, the good news being that the same trends we saw resulting in distributed computing, are now also happening in physical production technology.

 

All these things: constructing new social practices, designing new life forms, distributing technology, closely internetworking existing social movements, will take time, there is no magic bullet. I'm afraid there is no grand strategy, but co-creation as we ourselves invent and experiment with world-creation and learn from a new type of struggles.

But timing is important and I believe the following.

Humanity never reaches to radical alternatives first, but first starts fiddling, then reform within, and finally reform of the system. The fiddling stage is coming to an end, and 2012 is a good metaphor for that. But the next stage is therefore a major reform within the capitalist system, a global Keynesian, green capitalist compact. It will not be sufficient to save our planet, but will bring a number of social advances, and to be successfull, the enligthened elites will have to accept a large number of open/free, participatory and commons oriented practices. This will give room for the economy and civilisation of cooperation to grow, and may take 2-3 extra decades, perhaps more. In the end, as an infinite growth system is impossible within natural limits, the green-capitalist system will have to give way to something else, which in the best scenario is the p2p civilisation. This one will be seen first as a germ form (today), then as as part of a new equilibrium (green-capitalist phase), then finally, as the new overriding logic.

But careful, dominant logic does not mean total logic. P2P, i.e. non-reciprocal contributions, will dominate the immaterial logic and the open design world, but in the sphere of material production, we will have 'peer-informed' formats of market-exchange and gift economies. For a possible vision on their interrelation see Christian Siefkes book on 'From Exchanges to Contributions at peereconomy.org. I expect the transition period to be marked by peer-influenced market forms such as social entrepreneurship, mark beam's blended value and good capital, fair trade, etc..

I do not want to give the impression of a linear evolution, reality will be messy, and it's probable that it will get a lot worse before it gets better. But we must bet both on the creativity of the multitudes, and on the fact that no ruling class wishes total suicide, so that alliances will be made between the former and sections of the latter, only condition for successfull change. The alternative to a shift to higher integrative complexity, which p2p represents, is regresssion to a lower stage of integration, a dark age. I think it is unlikely though, given the enormous potential of human creativity which we are experiencing ...

So that's it for the first question. Later more.

 

Michel

 

p2p questions, replying to Daniel (2): the property question

I’m continuing the responses to Daniel’s questions on a strategy for a peer to peer transformation.

 

Second question: What happens to private property and oligarchic wealth in your proposal? Is physical property limited, collectivized, transitional, or what?

 

Response:

 

I propose to start from the same attitude of observation of what the new social movements related to peer production are creating. First of all, as a new practice of life, it is not so much anti-capitalist (in fact, it is not by itself), as post-capitalist, because in the realm of immaterial reproduction, peer production creates a natural commons, where there is no tension between supply and demand, and hence no market. The market only arises at its margins, not at its core.

 

I think we need to distinguish at least two forms of peer production, and also two forms of property.

First, we see people sharing their creative expression, through proprietary platforms, and I believe the latter is necessary because sharers have only weak links with each other, since they are primarily there to share their expression, not construct something in common. Hence, the Creative Commons as a form of property, which lets the individual decide freely on the level of sharing he/she allows.

Next, in commons oriented peer production proper, as in Linux or Wikipedia, communities are constructing really common artifacts, and we see that they employ licenses which are collectively oriented: you can modify, use etc… but all the changes are also part of the commons. But this new property is not ‘public’ or ‘state’ property, because there is no representational mechanism, and it is therefore always available to all, without any exclusion. We see that these forms of property are not based on any expropriation, hence there is no need for violence, but rather they transfigure property and ownership into something new such as sharing or a commons. In a sense, we route around it.

I think this is the right approach. Private property and markets are not by themselves bad, they are only so because they are embedded in a system of infinite growth. In other words, we must divorce markets, an acceptable method of allocating scarce resources from capitalism, the infinite growth paradigm of endlessly accumulating capital. So I believe that the three forms of property will co-exist, i.e. public, private and common. We need to outgrow the need for exclusive private property, not abolish it.

 

However, property does need to be distributed more.

But here again, I think there are political-technical solutions. In my view, property is already being distributed, as we see in social lending, in the cheapening of capital requirements to create companies, in the evolution of machinery towards desktop manufacturing, personal fabrication, rapid manufacturing and tooling, distributed molecular manufacturing, multipurpose machinery etc …

Note that my proposals are valid for western countries. In countries with dispossessed farmers etc ... different solutions may be need, including more vigorous redistribution. But otherwise, collectivising private property, and its inherent centralizing effects, should be avoided as it will create perhaps even more problems. Better is to distribute property, such as in the commons approach, it is everywhere and nowhere, from nobody and everybody. The priority is to devise solutions to avoid further accumulation.

p2p questions, replying to Daniel (3): the money question

I’m continuing the responses to Daniel’s questions on a strategy for a peer to peer transformation.

 

 

Third question: What specific form would reform of the monetary system take? Negative interest? Value linked to perishable goods and products? Would this be accompanied by a socialized form of income distribution?

 

Response:

You are suggesting the answer to the issue of distribution of property in your third question: we need a reform of the monetary system. But changing the system on a macrolevel is at present out of our hands. So the key is that we start form the bottom up, through the direct social production of money itself, which gives us the freedom to attach different protocols to that money, including negative interests.

We need complementary currencies, we need internet currencies, and a universal open money that is able to create multiple currencies, some of which that will be tradeable with each other. Coupling currencies to the to-be-distributed and largely P2P-based energy grid, is probably a good idea, but I’m not an expert on these matters. In any case, I believe we again need concrete experimentation and see what turns out.

We also need to do this with property in general. After tackling free software, and now the open social graph in Web 2.0, we will need to support the open design communities for appropriate technology and physical manufacturing, and work on truly distributed computing infrastructures. The reason we need YouTube and Google is that we have designed centralized servers, but that is not a natural necessity. Where we can, where it is most needed, my guess is communities will work on generalizing the possibility of user-generated capital.

It is only when this infrastructure is strong enough, carried by strong networks and communities, that we can hope to tackle global monetary transformation at the macro-scale.

The reason all this is necessary is also the following. Systems generally change through a mutual transfiguration of both elite and producing classes, only rarely by the abolition and violent overthrow of one class by another. Peer producers are not a class, but a new life practice, full time for some, partial for many others. Knowledge workers, which at present have their means of production and distribution (not really in the full sense of ownership, but in a functional sense), are nevertheless moving in and out of various forms of entrepreneurship, salaried work, and community production. Their position is structurally in favour of peer production, but not structurally opposed to capitalism, as any of the many right-libertarian free software developers can attest.

You also ask about general income distribution. The issue of peer production is that its non-reciprocal logic (you freely contribute for no specific return in particular, at least not from a particular person) is only possible with non-rival immaterial goods. This means that open design, and every physical production needs to be designed, is and will only be possible in the immaterial sphere. For material production we will need different mechanisms. The best way to fund social innovation through open design is through a general income mechanism that recognizes everyone’s creative contribution, but that is still a long way off in social acceptability. In the meantime, open design communities must therefore insist on benefit-sharing schemes from the business ecology around it (but not revenue sharing, as this destroys the non-reciprocal logic), and on a societal basis, I believe we need transitional labour policies which give people the freedom to move in and out of the market towards peer production and back, just as was possible for spiritual work in medieval times.

Peer producers will be producing a commons ‘for free’, but they can also take marketization in their own hands, for example through the creation of cooperatives, but of course, as shown by current practice already, their infrastructures are best run by for-benefit institutions (Wikimedia foundation, Mozilla foundation, Apache Foundation, etc…).

 

Now for a provisional conclusion about strategy in general:

As long as you fight the beast, you give it energy and make it stronger, and basically after two hundred years of classical labour struggle, we must recognize that these were two parties fighting for a piece of the same pie. I’m suggesting something radically different, ignore the beast as much as you can (unless it attacks you), and construct the post-capitalist peer to peer alternative. A system which can only survive by destroying the ecosphere, which needs infinite growth in a finite environment, is a logical and physical impossibility in the long run, which means in effect that it is already dead. Let’s not focus on the corpse, but nurture the new infant already being born in its womb.

 

p2p questions, replying to Daniel (4): the movie question

 

Continuing and finalizing the responses to Daniel’s four questions about the peer to peer approach:

 

Fourth Question:

Are there any forms of production that the peer-to-peer model would not be able to account for? Would feature films be possible under this model, for instance, or would the nature of cultural production have changed to the point where people wouldn't be interested in that form of expression?

 

Response:

Hi Daniel, here is how I see this problem in general. We have develop a technology for immaterial exchange, where we can reproduce non-rival goods at marginal cost, it is therefore able to create a abundant commons, where people can exchange in non-reciprocal relations, generally speaking.

 

We also have the remaining physical production processes, where more investment is required.

But even non-material peer production has a number of associated problems. Peer projects are collectively sustainable, as long as you can recruit replacement engagement, but not individually.

So we still need a global social solution to foster and sustain such social innovation, an issue I tried to cover in the previous reply.

And for physical production we can envisage all kinds of market-based (exchange), gift-economy based solutions which return means of investment. But from the value generated from this physical production must also presumable come the general means to cover the cost of non-reciprocal peer production.

 

Now your question about movies specifically. This is part of the same general problem. Some projects, like movies or pharmaceutical research, generate long-term needs for investment. The question is of course whether the current system of cognitive capitalism, based on artificial scarcity protection, is viable in the long run. In my opinion, it is working less and less. In pharma, we know the problems: no attention for tropical diseases, extraordinary marketing budgets for largely useless and even nefarious medicines, monopoly pricing which prices out medication to the poor and is bankrupting social welfare systems in the West, general lack of innovation and lots of corruption of health care dynamics. So the current system of maintaining artificial monopolies is not working very well. And the same goes for movies.

The solution would seem to me to combine a combination of generalized investment money (which can come from the public i.e. public authorities), post-hoc remunerations for success (awards and prizes), and ‘public crowdfunding’ schemes, whereby individuals can direct their public money to initiatives of their choice. ‘Common’ or individual oriented crowdfunding (free swarming of funds to pre-fund projects) will also have some place I suspect.

Generally speaking, we must again observe experimentation and generalize what is working well.

The key issue is that the current political system is so prone to corruption, that solutions which are in the general interest, rarely bubble to the surface. But as this general corruption of the political system is so hard to change, I think that we have again no other choice than to generate and internetwork bottom-up experimentation, and build our strength in such a way that general reform becomes possible. The most general reform is to un-corrupt the political system and to divorce it from private interests, so that the true common solutions can bubble up and be emulated.

In conclusion, peer to peer should not become a totalitarian and all-pervasive solution to everything, but seen as the emerging core logic of social innovation, which will co-exist with a pluralist but ‘peer-informed’ political economy, that respects freedom of choice to the largest possible extent, including the choice for market-based approaches. Finding the right mix of public, private and commons-based approaches will be a matter or experimentation.

 

 

More at http://p2pfoundation.net

Wow...

I found this piece to be very stimulating and provocative (both Daniel's blog and Charles' very reflective and insightful response). This is the sort of political commentary and analysis I've been craving, in a context that is psychically invigorating. If this is the level of journalism you're offering here, I look forward to more! I have just registered my account...

 

"Let the great constellation of flickering ashes be heard..."

- Noel Scott Engel

Key thoughts

Daneil, et al. Thanks for all the insightful info and comments. It's challenging to respond to the torrent of ideas presented in the article and comments, but as I was reading I noted the following key words: nepotism, corruption, network society, barter economics, emergence, self-organized behavior, autopoesis, lack of clearly defined enemy, dualistic left vs. right breakdown, media is composting itself.

 

Nepotism, corruption: I think the problem with the emerging authoritarian state is nepotism and corruption, and therefor incompetence. If they are only going to appoint bureaucrats and judges based on loyalty, they are going to face a problem of credibility and basic dysfunction of the state. Some may view this as intentional, but if you cannot provide basic services, you're frakked. Remember, even under fascism the trains ran on time.

Network economy: Yochai Benkler's The Wealth of Networks (http://www.benkler.org/wealth_of_networks/index.php/Main_Page) makes a strong argument that the emerging network economy is fundamentally altering capitalism. It's difficult to repeat all his arguments, but one thing he looks closely at is open source software and the prevailing barter economics of internet users/programmers. Also he sees the breakdown of centralized power due to how cheap it is to create your own network.

Emergence, self-organization, autopoesis: Daniel mentions the "spiral." There is a distributed, networked power in the world that is not fully conscious. Paul Hawkin has written about this in Blessed Unrest (you can go to http://wiserearth.org/ to join his network).

Lack of clearly defined enemy: As a veteran of the old school punk movement, I find the current climate much different than my youth (obviously). Back in the day it was easy to know who the enemy was. I call it the age of "isms," which ends with postmoderninsm and its theme that history is over. Capitalism is very effective in absorbing dissent, especially when it finds its expression in countercultural style. Even Marxism was able to take hold as a style, so it's hard to take it seriously when the figures of Marxism are cheapened as cultural icons, i.e Che. But Marxism requires conflict. Dialectical materialism is all about the clash of classes moving history forward. Without having read Multitudes, I don't know how they address this issue. But again, with the distributed economies and communities, perhaps the multitudes can self-organize into a new system. People should look at what happened in Argentina when their currency collapsed. There are great stories of workers taking over factories and creating a parallel market and economy based on barter. Latin Americans, however, are not as brainwashed as North Americans. Sorry folks, I don't mean to make such a sweeping statement, but the reason Latin American dissidents were turtured (until the recent rise in Left-leaning democracies) was because the jails were not in their heads.

Dualistic left vs. right: see above.

Media is composting: we have reached the end. Everything is recycled, remixed, reused, and re-created. Time for a new forest to grow.

Inertia/detritus

Firstly, congratulations on a great article Daniel. This information does need to be out there and you are one of many arbiters of important information at the moment. It has raised some very pertinent issues though, as the comments suggest.

What I think we are experiencing here is a greater intensification of the paradox at the core of all things. Our efforts to communicate with each in order to pull the collective in the ‘right’ direction often result in a nullifying inertia. Yes, we really are seeing some hard lessons appearing on the horizon (and many have been learnt and continue to be learnt already). However, we get lost in our language.

Perhaps we are engaged in a long and interminable battle, not of our choosing, with meaning and legitimacy and a collapse of them both. If this is taken on a metaphysical level, we will assassinate our abilities to change things through a perhaps unnecessary level of scrutiny regarding our dissemination of vital information to those apparently still inert, still languishing in the semi-lucid slumber of a consumerist hypno-hallucination. If taken on a material level, we might risk channelling our energy, our efforts into the wrong places. I suppose what I’m trying to say (in a rather convoluted manner!) is that it is always difficult to mobilize once you’ve done the maths, either collectively or personally. But, say we all planted things in our back gardens tomorrow and threw our credit cards in the bin, ignored the outside world and ‘got on with things’ in that simpler way once familiar to us and now so alien that its mention so often fosters nothing more than cynicism and inaction; perhaps that’s the centre that would hold as the periphery collapses. Perhaps that would engender the kind of spiritual activity we require, the types of community strength and radical ideology inherent to a rejection of the poisonous detritus that threateningly surrounds us right now. Perhaps, perhaps, perhaps...

I like the comment of the Dalai Lama that people generally want happiness so if you show them how this is achieved they will follow. It seems to me that this points towards a gentler approach in subverting our current catastrophic trajectory towards a positive outcome. And when one of the things discussed here is recent political commentary on late capitalism, what seems to have emerged for me from it all is the idea of soft subversion. After all, who really knows what the future holds? Furthermore, I think we miss the point when we try and speculate. We might truly be on the cusp of new collective psychic ability, or a reframing of the past-present-future paradigm, Newtonian laws and so on that changes the context of the individual psyche, and by extension the whole. I’m sure that we are in fact. I hope it will bring with it strength in the unity of ourselves with something bigger than ourselves – each other. But I have learnt the somewhat hard way that trying to ‘open eyes’ with facts and figures or otherwise, whilst it should not be an activity totally dismissed, very often alienates you from others which ultimately can alienate you from your goals. People are usually more open to following an example that has resonated with them in a way that enables them to make their own choice on how they behave or choose to act. Seeking to ‘shake someone awake’ is not always well received as a result of its self-righteous and thus domineering edge. The subject of it might feel that their freedom to choose is taken away, even if this is not explicit in a given situation.

So what do you do then? What do I offer as a solution? In my humble opinion as it stands right now (and could change tomorrow)? I guess we DO the best we can and HOPE for the best.

Shaking people awake

Hey Raf,

Thank you so much for this. It truly helped.

Charles Shaw

Evolver/Reality Sandwich

I'm very glad to have helped

I'm very glad to have helped Charles. I think that what happens on reality sandwich is really refreshing and important. I have experienced the revitalising energy of various alternative and well intentioned subcultures (such as the punk scene) that have eventually drawn the us and them line so much that it soured the original intentions for me. It left me wanting a unity between these well intentioned subcultures, an openess of communication between them, a willingness to move forward together, and i think reality sandwich offers just that. I hope its platform continues to spread and reach new people with new interests and information to share, because that is probably what we need most in times as these.

Keep up the good work!

What to do now?

Given this future economic collapse. What should we do?

I am a 21 year old kid, with no debt and no credit. I am relatively new to reality sandwich and this whole class of conciousness and I understand the big picture but not all the details of this economic collapse.

Should I convert my dollars into Euros (is this even possible?)

Should I invest in Gold or silver or some other resource?

Should I take my five G's in cash and hide it under my bed?

OR should I take the money and run to Mexico?

Thanks alot. And Thank you Daniel for turning me onto this whole other reality! - Johnny T

Thank You

Thanks to both Daniel and Charles for this enlightening synopsis of the impending financial collapse. As Charles points out, it's difficult to talk about this stuff with people who aren't ready to hear it. Once you get your head around it, it all starts to make sense. However, that first step is a doozy. I am of the mind that this is ultimately a good thing. The current predatory banking system sucks and needs to end. If a total collapse is what needs to happen, so be it. That being said, I own my home (that is to say, I have some equity but the bank owns most of it), as well as my share of credit card debt. Good luck to us all. This is why I come to Reality Sandwich - where else are you going to get this kind of commentary? Thanks again.

local | global

Thanks Daniel for your provocative piece and the comments above.

Having spent 11 years working on Wall Street and many years since following the capital markets I am very familiar with calls for financial meltdowns. Nevertheless with each and every crisis since Depression era reforms- the oil lending crisis in the 70’s, the savings and loan debacle in the 80’s, or the sub-prime mortgage and consumer debt threat- the Federal Reserve System survives despite massive and repeated write-downs of public and private debt. While a compelling case can be made that “this is it,” in terms of systemic collapse I suggest such speculation is futile in the end. Rather I think we are better served by focusing on the creation of a parallel cooperation-based system as alluded to in your article, the rise of social enterprises around the world where entrepreneurs target both social and financial returns, and the rise of a new social capital market that blends the efficiencies of market-based systems with values based missions and incentives.

I would also argue that we are already in the middle of a crisis in consciousness and in the midst of “a major opening of awareness and compassionate understanding.” As complexity rises and communication potential expands humans seem to move more like swarms in reaction to ever-sharper views of their nest. The trick it seems to me in this environment is to be attentive and supportive of what is arising on its own at local levels. In my view, needs are best defined at local levels while global structures create horizontal efficiencies where common patterns or needs (at local levels) can be recognized and/or supported.

I agree media will play an influential role, particularly with the evolution of online and physical social networks of all kinds that support local and cooperative decision-making; and user generated video and gaming where we are rapidly becoming experts at rapid-prototyping simulated environments and extrapolating our experience into real structures in physical space. I have more confidence that a new system will arise in this context than I do in one arising from entrenched, industrial age hierarchies and nation-state based political systems.

Kevin Jones, Tim Freundlich and I have begun to build the framework for a 30,000 foot view of the social capital market that we hope many on this list can contribute to. Here is a link to a very preliminary framework that we hope to build on with the help of a wide community. http://artbeam.net/goodcap/marketmodel.html

Our hope is that by making the landscape more clear more resources will flow toward it. Like Bruce I have great respect for the work of the others copied here and appreciate any comments you have.

Paz Mark Beam Oaxaca, Mexico |||b

Personally, I wonder

Personally, I wonder whether, with even the best intentions of many bright and inspired people, the current financial and political system can survive the transformations that are now under way, and increasing in velocity. I felt this same concern, very powerfully, at Bioneers last fall. An oceanographer described the emptying of the oceans and the disappearance of food chains in the oceans, and asked the elite liberal audience to "take less (fish) out" and petition their representatives to do more. This seemed insignificant compared to the scale of the problem.

I agree with Negri and Hardt that communication is critical in the "production of subjectivities" whose choices determine the movements of capital and resources. As Mark and Bruce note, the evolution of “peer-to-peer” social networks could lead to a system that supported a populace educated on critical issues, and capable of acting in concert - a type of "swarm intelligence." This type of system might supplant or possibly replace many of the functions currently performed by government. The current market economy could be augmented by a barter/exchange system using a trust rating, and also a gift economy (Lewis Hyde's book "The Gift" is a great read on this subject). Even to survive in a modified form, currency may have to go through an evolutionary shift, with money indexed to perishable goods or resources, rather than an immortal abstraction.

It is interesting to consider that "Wall Street" got its name from the original wall built by the Dutch settlers to keep out the indigenous people. That wall also represents the great divide between the economic system of the Europeans and the Native Americans, the first based on the Logos of the market, and the second based on the Eros of the gift. As Hyde discusses in his book, we could evolve a system that breaks down this divide.

Since protest culture and straightforward opposition to the current regime of "biopower" seems somewhat pointless, the best strategy may be to create a mechanism that allows for an internal exodus to an alternative support system, that uses communications and media tools to educate and transform consciousness. Such a system could encourage the development and "rapid prototyping" of different solution-based approaches in many spheres of life.

The current perturbations in the financial system may not lead to a "collapse," as Mark noted: The system is highly resilient. But even so, they may provide the opportunity for a deeper opening of awareness and an investment in creative alternatives.

"Will the transformation."-Rilke

'Concresence'

The success of our species lies in what Alfred North Whitehead wrote and Terrence McKenna often repeated as in the act of a ‘concrescence’ thought to a new way of viewing ourselves in relationship to our planet.

 

This is but a thought away from each of us, but there is no organized or programmed way to obtain it.

 

Tiananmen Square in China in ’89 was not really an organized event; it was a chain reaction that was ripe to happen.

 

We are all but a thought away from the necessary ‘concrescence’.  

 

 

 

Between the idea
And the reality
Between the motion
And the act
Falls the Shadow


T. S. Eliot

dangerous future

Alfred North Whitehead said something like "It's the business of the future to be dangerous." Indeed!

"unexhausted is my virtue" -perry ferrell

I wish this was a message board so someone could bump this "thread", particularly in light of your latest comment, Daniel, inlcuding this:

"Since protest culture and straightforward opposition to the current regime of "biopower" seems somewhat pointless, the best strategy may be to create a mechanism that allows for an internal exodus to an alternative support system, that uses communications and media tools to educate and transform consciousness. Such a system could encourage the development and "rapid prototyping" of different solution-based approaches in many spheres of life." 

Identifying potent contact points of transformation amidst our complexifying-collapsing-emerging landscape seems to be an activity that is both individually do-able and one which requires active, thoughtful engagement.  This place is where I personally start to get excited.  For while I do feel it is necessary to internally feel and undergo a certain initiation into the psyche of systemic failure and collapse in order to genuinely open to the future beyond fearful freaking out and exhausted survivalism, I also recognize that merely being open is not quite enough either.  Existential reality would synthesize such openness with its counterpart of nimble activity in the present world.

Acquiring such potent Existentially Tantric traction is clearly the name of the game -- one that works to continuously locate and identify our visible systemic malaise while equally relaxing enough to fall (and even fail) through it, only to imagine new forms -- however particular -- of sudden, novel connection, with ourselves, each other, and the Earth and Sky, as the wheezing titanic of our corroded hyperpower continues to buckle and give way....

May this acorn of potent thoughtfulness put forth here by caring minds sprout forth endless vibrant rhizomes of electronic co-inspiration, wildly diverse and precisely attuned, willing to look silly and smart at the same time, in order to laugh while falling into place amidst and beyond so many rising swells of dangerous potential....

Fiz

Actually, we do have

Actually, we do have messaage board at Reality Sandwich. It has just been somewhat neglected so far, in the development of the website. I also have a discussion board at breakingopenthehead.com which I don't have the time to moderate any more. I am hoping to integrate the two message boards at some point.

What I would love is a way that articles and comments automatically created a message board area that allowed for threaded discussions. I don't know if that is possible with Drupal, or at the very least it would take a lot of work to orchestrate it.

"Will the transformation."-Rilke

anxiety's fertile flowers

I so appreciate the quality of the comments to this essential view Daniel has expressed....

ridelifeJT, thanks for boldly asking such basic, universal questions. Mark Beam, thanks for your lightening views, including this choice snippet: "The trick it seems to me in this environment is to be attentive and supportive of what is arising on its own at local levels."

The current convergent crises that we are undergoing promise to keep us all on our toes, no doubt, as we continue to plunge -- individually and together -- through consecutive gauntlets of emerging awareness here at the gleaming, glittering nick of time. Nurturing an attitude of actively creative receptivity before that nick and its wild edge is clearly as essential as facing the abyss it denotes and freaking out in good measure as needed....

Myself, I can't help but keep returning to Terence McKenna's choice sound bytes of hipshot wisdom for preparing for precisely this kind of moment. Terence suggested that the run-up to 2012 will be a "white-knuckle ride to the very finish," one that can neither be predicted nor prefigured, by definition. Rather, the emerging future promises to dance us into life as we scramble to adapt to its emerging conditions of increasing novelty (as 2012 represents, at least to McKenna, a point of maximum novelty, literally sucking us towards itself with infinite unknown potential).

So:  while hanging on with white knuckles, McKenna then suggests that perhaps the best way to prepare for what we cannot foresee is to enact a quality of receptive openness that would itself replicate where the future is heading, namely, into a condition in which "everything opens to everything else".

After having spent a good portion of the past few years freaking out in private and trying to determine how to best prepare for the kinds of scary possibilities presently emerging before us, now I find myself moved to lay down my preparation plans and open to the present in a kind of precise abandon of preconceived outcomes of pretty much any kind. My sole intention at this point is to exist in open relationship to the world as I find it, failing economy and all. It is my growing conviction that while astute use of intelligence is always a good thing for smart navigation of our complex landscape, equally useful is a foolish sense of trust in our shared space of this living earth in its dreaming genius to guide me through what I can't possibly prefigure beyond general abstractions.

How to enact a quality of openness in active responsive listening to the world at hand becomes my ongoing question, which I feebly attempt to imperfectly live, while I welcome the arising of all anxiety -- in myself and among others -- as the ever-fertile basis for learning -- at a visceral, gut-intelligent level, beneath abstract intellectualization -- how to be here and openly adapt to this unknown, white-knuckled edge we are traversing together.

That is the invitation I give myself, and extend to others with whom I have the pleasure of meeting.  Maybe this amounts to a kind of private Burning Man enacted right here in the churning harrow of time's fertile nick, where I like to imagine anxiety taking root and learning to flower into utterly new forms of love of the world as it is, however wilder the ride ahead becomes. 

Shanti...Fiz

Invitation accepted...

Fiz,

Your post is brilliantly articulated and inspiring. I was just yesterday saying in another discussion forum that I prepare for 2012 as best I can by allowing myself to release all present attachments and future expectations (whether 'good' or 'ill'). You phrase my intuitive perception of what is asked of us all so beautifully...

With your permission I would like to repost what you have written on tribe.net. Please message me if you are agreeable to my doing so...

 

"Let the great constellation of flickering ashes be heard..."

- Noel Scott Engel

Psychic Array

It’s not so long ago that my parents wage packets contained notes and coins: tangible rewards for their work that could be saved, spent, moved around the table. Virtual money and its resultant exploitation have come to symbolise debt. Virtual money has dissolved itself as a reward and created an illusion of equality that has inadvertently altered our sense of worth. We have afforded to do things on our credit cards that we could never have done without them, and this has helped to dissolve class barriers - certainly here in the UK where we have become adept at erecting them. Exploitation disguised as freedom has been pushed to its limits. The obscenity of developing countries, deliberately indebted to those who should have held out their hands in friendship, is unbearable for the human psyche.

 

I agree with Daniel, mbauwens and Antonio that the next step has to involve local currencies and other forms of self organising structures. These may emerge as practical responses, and evolve into the psychic array.

 

I have recently contacted the Transition Network, responsible for the Transition Town initiative here in the UK. The creation of local currencies is an attractive component. Current Transition Towns read like a who’s who of alternative places to live. It will also be interesting to see how radical and metaphysical initiatives become, and whether they are able to take off in regular towns and cities. My local initiative is about to hold a networking event and I will attend. I would like to see local currencies used to reintegrate shamanic practitioners into the community to provide a service available to all who seek it.

 

the only way is the impossible way

'Did You Know'

Here are a few facts and figures from the book Planet India by Mira Kamdar that will put some perspective on what the U.S. and Western Europe may be expecting in the future.

 

‘India is the world’s fourth-largest economy’

 

‘India’s middle class is already larger than the entire population of the United States’

 

‘India is home to the biggest youth population on Earth: 600 million people under the age of 25’

 

‘India just passed the United States to become the second most preferred destination for foreign direct investment after China’

 

‘Twenty-nine percent of India’s population speaks English- that is 350 million people’

 

  

Between the idea
And the reality
Between the motion
And the act
Falls the Shadow


T. S. Eliot

Fact Check??/

Hey Sidecross,

As of 2006, India was the world's 11th largest economy (nearly 1 trillion GDP), not the 4th, which is China (2.7 trillion). India would have needed to expand their economy by almost 3 trillion dollars in one year to reach #4, and I don't think that was the case.

Charles Shaw

Executive Editor - Evolver/Reality Sandwich

The Data

The data quoted from the book is the most recent according to the author; it is true that data from ’03  India ranks 12th in the world.

Between the idea
And the reality
Between the motion
And the act
Falls the Shadow


T. S. Eliot

More Data

According the data liked below India’s economy ‘purchasing power parity’ is ranked third, and is of ’07 ‘the fastest growing economy’.

 

http://en.wikipedia.org/wiki/Economy_of_India

 

 

Between the idea
And the reality
Between the motion
And the act
Falls the Shadow


T. S. Eliot

You Be the Judge

I do recommend the book Planet India by Mira Kamdar. It is a book worth exploring and researching its data to reach your own conclusion.

 

Between the idea
And the reality
Between the motion
And the act
Falls the Shadow


T. S. Eliot

collectives & cooperatives in india

sidecross,

does the book mention any of the economic cooperatives / collectives in india like AMUL?

http://en.wikipedia.org/wiki/Amul

if so, perhaps you could share with us a taste as it would be appropriate to the conversation...

Sadly No

Sadly there is only a very short entry on Amul and it gives none of the information you have provided.

 My main reason of mentioning this book is not to have an argument on how statistical information can be provided, but rather introduce how the economic growth of India will show models of how Western Europe and the U.S. paradigm might look like in the future.

 

 

Between the idea
And the reality
Between the motion
And the act
Falls the Shadow


T. S. Eliot

Data was from 2006, not 2003

The data I linked to was official GDP rankings from 2006, not 2003. I will trust the officially acknowledged stats. Authors can be subject to various forms of interpretation which support their argument. I know because I am one. >;0)

Charles Shaw

Evolver/Reality Sandwich

Chew on This Data

http://en.wikipedia.org/wiki/Economy_of_India

 

 

Between the idea
And the reality
Between the motion
And the act
Falls the Shadow


T. S. Eliot

‘You can’t spit it out; you can’t swallow it’

What I found disturbing from reading Planet India was the mixture of wealth and poverty seemingly to co-exist.

 

The population of current India is 1.2 billion people of which 800 million make $2 per day or less. A year or two ago the New York Times had a front page photo of an American looking suburb which was a walled off part of India.

 

Yesterday the NYT had an article on India’s made man hole covers being made by bare foot people. http://www.nytimes.com/2007/11/26/nyregion/26manhole.html

 

If today’s ‘modern India’ is a view of the future that is a ‘World Free Market Economy’, than most of us on Earth are in deep trouble.

 

Chris Hedges in an article yesterday wrote that in the U.S. the upper 1% income bracket is equal to the total of 90% of U.S. workers. http://www.truthout.org/docs_2006/112707H.shtml

  

 

Between the idea
And the reality
Between the motion
And the act
Falls the Shadow


T. S. Eliot