Wednesday, November 9, 2011

Root of All Evil: the love of money

More often quoted than fully understood, the Pauline's quotation in 1Timothy 6:10:

"For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs."

is a timely reminder to all of us post the Global Financial Crisis of 2008 and its impending "W" recurring crisis in 2011 a.k.a. the Euro Woes, that Money is a human concept and devoid of reality in the light of eternity.

I often wondered how would the world be like had money, credit, finance, stock markets, exchange rates and all the other virtual world of Mammon had not been conceptualized and invented. In other words, had humans remain as Stone Age Hunters and Gatherers?

Imagine there is no Money,
No Wealth to Fight for,
No Mortgages to pay,
Everybody take and give,
According to their needs;
Never their greed.

The World would be Greener and Happier,
Every creature living in Harmony,
Less Convenient maybe,
But Paradise on Earth,
Nonetheless!

In a world before the invention of money, credit, refrigeration, logistics and global trade, Man took from Nature what they need. It is akin to the harvest of "Manna", provided free by God but harvested only to the amount that is needed or the excess will be rendered useless by the following day.

Natural resources, provided free by Nature in a sustainable and renewable way by Nature: Sunshine, Fresh Air, Plants, Animals, Fishes are never over exploited because there is no Market to trade the excess harvest.

With no instrument to store and exchange wealth value a.k.a. "Money", Greed cannot be institutionalized.

In an egalitarian society forced upon by the ubiquity of resources, the absence of Money and the futility of material stock holding, Hunters and Gatherers had no concept of private ownership of what is provided free by Nature.

Man hunt and gather from Nature according to needs and never greed simply because it does not pay to be greedy.

The invention of Money to facilitate exchange and its unintended consequences in its store value of portable wealth that can easily be transformed into material, together with the concept of private ownership changed everything to the our current global state of in-sustainability.

We have over exploited Nature's original design of self sustainability and renew-ability by consuming tomorrow's resources in today's time with the clever financial devise call "Credit".

In days of old, we save to invest; today we spend away our future and enslave ourselves to lifetime servitude to Mammon, paying off our mortgages and credit card debts.

Feeding the Machine with our blood, sweat and tears, it is time we stop, look up and insist that enough is enough, this insanity must cease and the altar to Mammon must be torn down!

Indeed, man can only serve one exclusive master at a time: God OR Mammon just as the Jesus Christ of Nazareth once said in Matthew 6:24:

"No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and Money."

Thursday, May 6, 2010

Economics: The Dismal Science

Having been acquainted with the subject of Economics since I first studied it while in school in the late 1970s, from Micro to Macro Economics, from Adam Smith to Karl Marx and John Maynard Keynes, from Laissez Faire to Communism, from the collapse of the Communist Utopia in the 1990s and the recurring booms and busts of Capitalist Economics: it has dawned upon me and many others I believe that in our common pursuit of the illusive goal of human material happiness, we have all been duped.

Duped by none others than ourselves.

It has been said that what differentiates humans from other living things on Planet Earth is: Financial Worries.

It is not that non humans do not have physical needs like food and shelter, but that while humans have so called "progressed" from mere hunters and gatherers like animals to farming and industrialization, the agricultural, industrial and information technology revolution has brought us, ironically closer to Doomsday.

As we build, we destroy and as we in concert seek economic growth, we stimulate the economy by stroking the flames of consumption and production that exceeds the natural constraint of natural sustainable replenishment cycles.

In our misguided passion for economic growth, we will spare no effort in coming up with various devices to balloon up the figures.

The dismal consequence is at the end of the day, we are straddled with a ballooned economy awaiting explosion that will implode upon us.

When Lord Keynes first creatively devised the idea of inflating a sluggish economy out of recession by way of government spending, it was largely and initially rejected by Laissez Faire Economy Purists as interventionist against the spirit and letter of Capitalism.

When Keynesian Economics seem to do the trick in smoothing out the kinks in Capitalism; Reformed Capitalism with an element of selective government intervention and regulation has become the global economic religion.

Along the way, came economists of the caliber of Lord Keynes and singing from the same hymn sheet albeit cloaked in different attire like Milton Friedman and Paul Samuelson opposing one another, seemingly on opposing poles but with the common thread of government involvement and regulation.

The persistent suppression of a low interest rate economy to stimulate consumption and investment during the long tenure of Alan Greenspan (American economist who served as Chairman of the Federal Reserve of the United States from 1987 to 2006) is one classic anathema to Laissez Faire Economics Doctrine where the Adam Smithsonian's Market Invisible Hands are the only hands that should self regulate and sustain the long term harmony of the Free and Fair Market.

Over the past 200 years or so of New World history, the USA has unravelled to us how ugly the laws of the unregulated jungle of Capitalism can be. From anti-trust legislation to prevent price fixing and monopoly to the ban on short selling and other stock market manipulations through insider trading, we are now faced with the hitherto unregulated financial market instruments like 'derivatives".

While it had been the sole exclusive right of the government as the printer of all her currency notes and banks, the creators of credit within the statutory deposit regulatory mechanisms set by the government regulatory bodies, the new financial device of "derivatives" seemed to have escaped the radar of the financial regulators that had almost caused the total collapse of the global financial and banking system in October, 2008.

The bail out by the US Government on selected financial and banking institutions, deem too big to fail may have saved the Capitalist World from a catastrophic collapse, albeit for the moment, major systemic and structural weaknesses have yet been materially addressed.

The current (2010) national financial challenges faced by the PIGS (Portugal, Ireland, Greece & Spain) are just the precursor of things to come as more countries with similar structural problem of persistent chronic fiscal deficits faced difficulties in rolling over their debts due to humongous accumulated budget overruns, inadequate revenue collection and weak political willpower.

The prognosis is dismal.

It will look like a total collapse of the global financial system is inevitable so as to usher in a New World Order.

It looks like Frederich Hegel's Thesis of "Thesis, Anti-Thesis, Synthesis" will reign true and supreme, once again, this time over Adam Smith and Karl Marx.

But all is not lost, yet.

In a post Synthesized New Global Economic Order, I envisaged for those who choose to be outside the system will return to basics: "hunting and gathering", albeit in substance rather than just mere form.

If we have yet learned the very basic survival skills of finding and making your own water, food, fuel, shelter, clothing and medicine, now is the time, even today is the right time to commence.


In Scouting, the motto is: "Be Prepared"; in Royal Rangers: "Be Ready".


Either way, if you are neither prepared nor ready, you are doomed in defaulted failure.

Friday, January 29, 2010

Durians

People are like Durians, you either love them or lothe them, Coz, they can be hell outside, but heaven inside, Or, hell outside and worst still, crap inside! Alex Kee, 29Jan2010, Johor Bahru, Malaysia

Smelly Quote

"When you hate someone, even his shadow stinks; if you love, even his fart smells good."

Alex Kee, 29Jan2010

Friday, December 25, 2009

Green Money

Reflecting on the November 2008 Global Financial Crisis made me research the origins of the US monetary and financial system and the uncovered facts, were to state the least: utmost illuminating!

The US Dollar, a.k.a. "Greenback" were IOUs (I Owe yoU) empowered by the Constitution to the Government of the day by the people, to issue payments for goods and services rendered.

There is not a need to borrow money with or without usury and then pay for goods and services rendered to the people through the Government, because the Government is precisely the people and it does not make sense to pay usury to private bankers when the Government is empowered by Law (the Constitution) to print legal tender money.

When Abraham Lincoln is President, he paid for goods and services rendered to the Government by printed Greenbacks and the Greenbacks were then used by the people who received them to buy other goods and services for other people and through this, money is circulated into the economy and the economy expanded.

These were "fiat" money, that is money issued in faith, without the backing of any gold, precious metal or even borrowings.

While the primary fear of fiat money is its continuous store of value and public acceptability, its integrity is not so much its intrinsic but confidence value.

In times past, tokens ranging from stones to corrie shells and even common table salt (that is where the term 'salary' originated) were used as money.

Usury burdens the borrower and it makes no sense that the Government, who is the collective "people" should indebt the people through borrowed money to finance projects that are needed by the people, when the Government is empowered by Law to manufacture as much money as they need to govern the people.

Borrowing from private bankers to finance Government projects for the benefit of the people will only enrich the private bankers at the expense of the people, burdening them with higher taxes to pay off the usury charged by the private banking entrepreneurs.

Printing money to pay for goods and services rendered to the people under the Government auspices, per se, will not drive up inflation, provided there are idling resources waiting for capital to stimulate their sustainable exploitation.

What drives inflation is when too much money is chasing after too few goods and services.

If the economy is undergoing recession because there is not enough money around, either because people do not have the money and/or or too cautious to spend, it is time for the Government to prime the pump by printing money and spending on projects that will benefit the people.

Only Governments have the right to print money and this power can be used for good or evil.

If deployed for good, the printing of money, unbacked by gold or even borrowings is not only benign; but necessary and beneficial.

The last thing the people want is an economy with not enough money when money could merely be printed by the Government with the backing of gold or the Government indebt the people with borrowings from private bankers to spend for the benefit of the people.

I say, plagiarizing Oliver Cromwell, "Melt down all the misconceptions and circulate all the needed printed dollars into the Economy"!

Friday, December 18, 2009

Contemplations On the Mandatory Death Sentence

"An eye for an eye will make the whole world blind", Mahatma Gandhi famously said.

Perhaps, it is because we are spiritually blind that we endorse the reciprocity of sin disguised as deterrent punishment.

Is it logical to chop off the hand of a convicted thief who stole because he needs food to survive and condemn him to seek no other avenues of making a living but to risk his other remaining hand in order to put food into his mouth?

As Mencius puts it, all human beings endeavor to do good, but distractions are a plenty and the onus is on the strong to bear the weak.

Alas, there are few keepers around today, especially brother's keepers.

Let us work towards a more compassionate cultured society.

Progress in civilization had actually digress humanity towards monstrosity.

Let there be Love, Peace and Hope among us, especially at these trying times when almost every known systems seem to be broken!

May 2010 be a better year.

Sunday, November 15, 2009

The Moral Capitalist: Oxymoron?

This is a conversation between a "classically trained capitalist marketer" and a "reformed capitalist turned environmentalist":

========

Venture Platform Pte Ltd "Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for. A product is not quality because it is hard to make and costs a lot of money, as manufacturers typically believe. This is incompetence. Customers pay only for what is of use to them and gives them value. Nothing else constitutes quality" Peter Drucker

Thu at 11:15am · ·
Alex Kee
Alex Kee
With due respect to the late Peter Drucker, this is a typical capitalist speaking. Quality today in the light of anthropogenic climate change, now ought to encompass responsible manufacturing and end of life disposal issues.
Thu at 3:57pm · Delete · Report
Venture Platform Pte Ltd
Venture Platform Pte Ltd
Which is still what the customers will pay for.

Why do you think companies which encompass responsible manufacturing and end of life disposal issues, are able to sell their services at a higher price?

Corporate and social responsibilities are capitalistic concerns as well.
2 hours ago · Report
Alex Kee
Alex Kee
Corporate & social responsibilities are capitalistic concerns only if they help rack in more for the bottom-line of the Capitalist, but if they can get away with blue murder, they will. It is for the People, through legislation that shall ensure that capitalist entrepreneurs oblige compliance. Be honest about it, we all talk big about taking care of the environment with our lips but nothing through our pocket or actions, because we only want to pay for what we use, not how the end of life is disposed or how the product was made in the first place, like Peter Drucker has said from the myopic Capitalist-Marketing focal point.
2 hours ago · Delete · Report
Venture Platform Pte Ltd
Venture Platform Pte Ltd
They do. If they do not, the market does not need it anyway.

So do not blame capitalists for doing whatever you deem is harmful to environment.

Are consumers going to pay for it, the market is the final arbiter of it. Capitalists can only follow what the market needs. Contrary to what you may think, they do not dictate what the market needs.
2 hours ago · Report
Alex Kee
Alex Kee
Correct, let's blame ourselves for learning wrong lessons from our teachers who were taught wrong knowledge by their teachers. The market wants cheap credit so that they can spend now and pain later. Everyone is looking for passive income and growth on their investment. Everyone wants to grab; but nobody wants to give and when institutions are too big to fail, we bail them out: We, the people under the guise of "the Government". There is no free lunch and we are all in it as one common community on Planet Earth and that is the hard facts beyond clever marketing and ideologies. The environment is not for turning; we shall reap what we sow!
about an hour ago · Delete · Report