Archive for October, 2008

“DOW JONES MUST DIE!!”

Monday, October 13th, 2008

[This is the second of four installments examining the roots of our financial, moral and spiritual crises, along with suggesting solutions.]

“DOW JONES MUST DIE!!!”

Okay, that’s more inflammatory and over-the-top than I usually go for. But, for reasons stated below, it may be inflammatory but it’s also true.

First of all, “Dow Jones” is not a person, never was. (And, it was never “alive”, so I can’t really call for its “death”.) It is a company started over 100 years ago by three guys, Charles Henry Dow, Edward Davis Jones and Charles Milford Bergstresser in a small basement office in New York. (Dow Jones early history is fairly interesting…)

Charles Dow…

… Edward Jones…

… and the other guy.

It is an arbitrary average of 40 selected stocks, out of the thousands of companies represented on the New York Stock Exchange. It was created back in the horse-and-buggy days, when no one had the ability to track all of the stocks traded on the exchange. (Nowadays, you could track all of the trades in real time, with no more computing power than what’s in your iPhone.) The Dow Jones Average assumes that this small cross-section of stocks reflects what is happening in the market as a whole.

The people who run this average select the stocks of the largest, most profitable and most wildly successful corporate entities in America. The Dow Jones Averages is made up of corporations that are household names: AT&T, Boeing, Coca-Cola, Exxon-Mobil, General Electric, McDonald’s, Pfizer, Wal-Mart. From time to time, some organizations are taken off (American Cotton Oil Company) while others migrate on (Microsoft).

So, the largest, most inefficient, wasteful, socially and ecologically damaging corporate giants become the benchmarks for “success” in this society. Collectively, the ONLY thing these corporations are good at is… making more money.

Well, that is, up until recently. As we watch the Dow Jones Averages plummet and the financial credit markets face total meltdown, some of us realize that the ENTIRE world economy isn’t going down – only the parts of the economy that are inefficient, wasteful and ecologically damaging… EXACTLY those parts that are measured by Dow Jones!

Unfortunately, when these dinosaurs die, it isn’t quiet or pretty. We see them now, thrashing around, taking down hundreds or thousands of other organizations in their death throes, and making miserable the lives of millions of people around the world.

We are being told that “the global economy” is troubled because these 40 companies represent “the Market”. They do. But, WHAT market? The mainstream media, the business colleges, the Wall St. types all pay attention to ONE type of “market”, and that market is very well represented by the Dow Jones Averages. But, it’s not the only market, and (from the point of view of regular human beings) is not the most important one.

In an article I wrote back in 1989, I identified FIVE different markets, all tangled together in a global financial stew:

THE BLACK MARKET (The Rats): Illegal, immoral and destructive. Drug sales; armed robbery; trading in stolen goods; cops taking kickbacks; counterfeiters; illegal weapons sales; dumping toxic chemicals for profit. The Black Market is completely intertwined in all of the other markets, as George Bush the First found out when, as Vice President, he tried to block the flow of drug money into US banks. Within weeks, banks in Florida almost went under. The anti-money laundering laws were relaxed, so that the drug dealers and the banks could go back to doing business. The Black Market thrives on despair and depression; it breeds immorality and social ruin.

THE GRAY MARKET (The Roaches): Dubious legality and at times negative effects. “Survival economics”. Neighborhood junkyards; unregistered child care centers and food preparation. Unlicensed street-corner vendors and musicians. Illegal tree cutting in most parts of the world. People who paint themselves and act like statues for tips. The guy trying to squeegee your windshield during a traffic stop. While the Gray Market is largely ignored by the mainstream, it is the LARGEST of the five different markets, comprising the majority of people on our planet. Ignored by entities like the World Bank and the IMF, the Gray Market is how people LIVE. Over half of the humans on this planet, over THREE BILLION HUMANS, live on $2.00 per day or less. This is the Gray Market.

THE WHITE MARKET (The Rabbits): Legal and largely neutral. Restaurants, offices, taxis, manual laborers, managers… What most of us think about (and work in) when we think about “the economy”.

THE RED MARKET (The Dinosaurs): Super-legal (they own the system and make the rules); Industrial Age wastefulness of resources; inefficient, unbalanced, poisonous. Buckminster Fuller called this “the global casino”. Incomprehensible buying, selling and trading of largely fictitious “assets”, with little or no regulation. The Red Market, based on greed and corruption, feeds off of the White and Gray Markets. The Red Market, exemplified by the Dow Jones Averages, is endangered and soon to become extinct. Those who created the Mess cannot even understand the problem, let alone fix it.

THE GREEN MARKET (The Gazelles): Ecological, positive, adaptive, responsive, decentralized, healing, worker-owned and community-owned businesses. Examples include green energy; organic and sustainable food production; bio-damage remediation and the entire emerging sustainable, “green” business sector. This is the market of the future. Our collective future lies in moving the billions (of people and dollars) currently in the Gray Market into the Green Market.

Hyping the Red Market:

Those who are the proponents of Red Market economics have done a great job in convincing you that the Red Market is the ONLY market, and that its demise means that YOU will die, YOUR retirement is on the line, and the entire world will come to an end if you don’t pump your hard-earned tax dollars into CPR for dinosaurs.

You have choices. You can choose to react out of fear and panic. You can believe that the same people who told you that Iraq would be a breeze can be trusted when it comes to the Red Market economy. Or, you can do something different.

If we can’t trust the government (Republicans or Democrats), then who can we trust? The answer is very, very simple. So simple, in fact, we completely overlook it.

We must trust each other.

My friend Meg Wheatley, in her two EXCELLENT books, “A Simpler Way” and “Turning To One Another”, outlines the path we all must follow. Our future lies in community. The measure of “wealth” in the future will NOT be how many digits are in your bank account; “wealth” WILL be measured by how many communities you connect with. Developing community through self-reflection, talking and listening with others, followed by action that is human-oriented and community-scaled… this is our pathway to survival.

For decades, we have placed our faith in all of the things our wisdom teachers told us NOT to believe in. We have placed our faith in money, in banks, in corporations, faith in big government and big business. Our current economic and political systems RUN on this faith. They cannot exist without it.

It’s time to change the paradigm. It is time for new leaders to step forward, armed with a radically different vision of what “success” means in America. It is time to identify leaders who hold a vision of a world that works for all beings. Leaders who have shed the blinders of old theories like “capitalism” (which I believe is dysfunctional) and “communism/ socialism” (which is equally dysfunctional, just in a different direction).

From where will these leaders emerge? That answer is simple, also. We each can/will/must be those leaders.

It is time for us to divest ourselves from mutual funds, investment banks, hedge funds… Our mantra must be: if (personally) you can’t control it and you don’t understand it, you shouldn’t be invested in it. Period.

It is time to invest in your community. Invest in your bio-region. Invest in your continent. Invest in your planet. You have a choice: you can invest in Red Market “Dow Jones” companies that make money (correction: made money in the past), or you can invest in companies pledged to make a better world (and hopefully make money, too).

It is time for your investments to be MORAL. Your investment strategies must place “making money” SECOND to other, more important considerations. Assume that your immediate neighbors, your children and grandchildren are sitting in your circle as you are making your investment decisions. Assume you are telling them, “I am investing in XYZ Company so that the world will be a better place for you”. (Yes, this includes those crazy neighbors you don’t really get along with. They may have the best ideas. Your survival is linked with theirs.)

In these turbulent times, we must have trust and we must have faith. It’s all a matter of trust and faith. (What do I mean by “faith”? That’s in next week’s message…)

Peace,

Sharif

[PS: Next week: the financial crisis is a crisis of faith and spirit.]

Notes from the Field: Sri Lanka, August, 2008

Tuesday, October 7th, 2008

UPDATE FROM SRI LANKA:

[This was sent out as an email to people on the Commonway list; however, because of a technical problem, few actually received it...]

There is never a dull moment around this place. Ongoing war, student riots, the SAARC summit meeting… I don’t know where to begin.

Perhaps I should begin where every Sri Lankan who knows me starts: “Obama!” The world’s most popular man weaves his magic on this island… and he hasn’t even been here. People I don’t even know hear that I’m an American and come up to me with the one question: “Can he win?”

Not, “Is he a good man?” or “What are his views on foreign affairs?”. From the world’s point of view, the US election is already over – they have their President. (We call the US President the “Leader of the Free World”. Ironic that the world can’t vote for him or her.)

My answer? The election has nothing to do with Democrats or Republicans. That illusory division does not define what is going on with the “Obama Effect”. The November election pits two amazingly well-matched candidates against each other: The Past and The Future.

John McCain is a most worthy representative of The Past. He has all of the “tested under fire” credentials (and white hair) that you want in a candidate who represents America’s Past. In a time of fear and uncertainty, many people want a steady hand on the rudder and clear eye toward a safe harbor.

Barack Obama is the epitome of The Future. Someone who transcends all of the old alliances and political configurations (to the chagrin of those in his own party). Someone of the Internet Age. Someone who believes that America’s strength does not lie in her past, but her future. Someone who not only understands, but literally transcends race (to the chagrin of those in the old “Civil Rights” establishment). In a time of hope and rapid change, Obama has his eye – and his enthusiasm – set firmly in the future.

So, we get to witness John Kennedy duke it out with Ronald Reagan. Which one will win? It depends whether, on election day, American voters are more hopeful than fearful. (Perhaps I should characterize it as “Voting by Fear” and “Voting by Hope”.)

People are motivated by BOTH fear and hope. (Remember: inclusivity means seeing things from both/all sides.) After the people of Czechoslovakia defeated the Soviet Union in their nonviolent “Velvet Revolution”, at election time, they almost returned the Communists to power! Why? In times of uncertainty, people look for the familiar – even if it means familiarly oppressive and authoritarian. Then, rather than rely on themselves, they can complain about “the government” again. People go back to abusive governments like women go back to abusive husbands.

[Which one SHOULD win? In keeping with current IRS regulations and in light of Commonway’s nonprofit status, I have no stated official position.]

SAARC CONFERENCE

If you were President of a country ravaged by war, high inflation, political and social instability, what would you do? HAVE A PARTY!! Invite seven of your buddies (and their huge entourages) over for the weekend. Block off the capital city, throw in 30,000 soldiers for security, and you’ve got the “South Asian Association for Regional Cooperation” Summit held the first weekend of my arrival in Sri Lanka. The government spent tens of millions of dollars on a meeting that could have been accomplished with a conference call.

The economy here is REALLY bad.  Even I have noticed the 30% inflationary pinch at the grocery store.  Thousands of university students have rioted, because, after their years of study, there are simply NO JOBS.  Right above my head as I write this, there are hundreds of young men sitting in Sarvodaya’s meeting halls… learning Korean.  Sri Lanka’s biggest export isn’t tea… it’s the young men and women of the country, sent overseas for menial and degrading jobs digging ditches and scrubbing toilets, in places like Saudi Arabia and South Korea.  (The hundreds of young men chanting in Korean above me do NOT have jobs waiting for them in Korea: they are learning Korean in these classes (government-run, not Sarvodaya) for the right to APPLY for the limited Korean jobs, after taking and passing language tests.)  For those who don’t get jobs, they sit and wait… or go to Colombo and riot.

If I had been President, I would have told my fellow heads of state: “As much as I would like to host you, my people just cannot afford this unnecessary expense right now. Give us ten years – we’ll plow the money we would waste hosting SAARC into peace and prosperity for the entire island. Then, ten years from now, we would like to throw you a HECK of a party!”

But, that’s not what heads of state do. Big airports, dams, Olympics and summits – this is the stuff that feeds an ego as big as a country. (I left out the biggest ego-feeders: wars and shiny new weapons.) What do the “people” get out of all this? Nationalistic bragging rights… until the check falls due.

A WAR UPDATE

The war in the North is going full blazes. A staggering 125,000 refugees in the North alone. I’ve heard heart-breaking stories of people selling all of their possessions just to stay moving ahead of the latest battle zone, of tens of thousands of men, women and children sleeping under trees and finding food wherever they can. It is a humanitarian disaster of epic proportions. The aid organizations (including Sarvodaya) cannot adequately respond to the challenge, in light of the current government disfavor of charitable organizations (they claim that the helping organizations gave too much help to the Tigers).

Even reading between the propaganda-filled lines, the Government is currently playing the winning hand. President Rajapakse and the military head, General Fonseka, are both confidently predicting the demise of the Tamil Tigers “as a conventional military force” by the end of the year. From a strictly military point of view, the campaign is impressive. At the rate they are going, it might be even sooner before the Government flag flies over Killinnochchi, the Tigers de facto capital for over two decades.

But, I’ve learned over the years not to count the Tigers out too prematurely. They have managed to pull some amazing rabbits out of their hats… I’m not taking any bets on this outcome.

The key to the Government’s boasting is the phrase “as a conventional military force”. With the Government’s huge advantage in numbers and equipment, it’s a wonder that the Tigers were EVER a conventional military force, able to mount – and win – set military engagements involving artillery and other heavy weaponry, along with sophisticated logistics and their own “air force” of ultra-light aircraft, a first in the insurgency business.

Yes, the Government can “win” against the Tigers conventional forces, just as the US government knew that it could defeat Saddam Hussein’s army. But, as we are learning in Iraq, defeating the conventional forces is a LONG way from “winning” the war.

When Killinnochchi falls, the Tigers turn into a true “insurgent” force: everywhere, nowhere and invisible. While the Sri Lankan flag may once again fly over Killinnochchi, the levels of violence will escalate. While the Sri Lankan army gets bogged down trying to provide services to administer a hostile population where they don’t speak the language (does any of this sound familiar?), the Tigers will be free to mount an insurgency – a true guerilla war. The Government may find itself missing the days when it actually knew where the Tigers were…

I keep saying this: it is impossible to “win” an insurgent war. No one has been able to do it. NO ONE. (Right now, in Iraq, the US forces are literally paying the insurgents not to attack us. This unbelievably short-term strategy will end just as soon as the checks stop.) The only way to end such a war is through a nonviolent, negotiated settlement. (To which the Sri Lanka Government replies, “We will negotiate with them – as soon as we defeat them.” Stay tuned to see how that logic train plays out…)

SARVODAYA – THE NEXT 50 YEARS

This year is the 50th anniversary of the birth of the Sarvodaya movement here in Sri Lanka. The organization has been involved in a year-long process of celebrating, introspection and envisioning the next 50 years.

As difficult was conditions were 50 years ago, the world has changed in some amazing and frightening ways. We are being called to “think anew and act anew”. I have been involved in several major strategy sessions with Sarvodaya’s leadership, examining the path for Sarvodaya over the next 50 years of its operation. Stay tuned…

A Tour of the East:

I spent the last 3 days touring the war-scarred East of the island.  (The war is too hot in the North for me to visit.)

The East is one big military encampment. There are soldiers EVERYWHERE. I simply lost count of the number of checkpoints we went through (30? 50?). Now that the Tigers have been routed from the East, the government forces are in the process of occupation. (The government prefers to call it “liberation”. And, they seem surprised that their heavy-handed presence hasn’t generated throngs of flower-waving, grateful citizens.)

From Child Soldiers to Sarvodaya Trainees:

I met with about 100 young people at Sarvodaya’s sprawling Batticaloa Farm complex. They were receiving training for woodworking, aluminum working, masonry, computer skills and motorcycle repair.

Many of them were former “child soldiers” of either the Tigers or the TMVP (previously known as the “Karuna Faction”). Sarvodaya provides a safe haven, practical skills… and a time to be CHILDREN. While at the farm, after their classes were over, I watched a spirited game that looked like a hybrid of cricket and baseball. There appeared to be 50 or so kids to a side, and it looked like they were making up the rules as they went along. At one point, when the batter wasn’t able to hit the ball, the pitcher walked 10 feet closer, to give him a better shot. They seemed much less interested in winning than in having fun.

A Sarvodaya Village:

My life and experiences over here are SO DIFFERENT from what I experience in the US.  Yesterday, I was talking to 50 women, sitting on the dirt floor in a village of mud huts, women who had never experienced electricity; the only 4 wheeled vehicles they had seen belong to aid workers.

It’s difficult relating to lives so utterly different from my own. At one point, I asked them about their village’s needs. They were very specific: electricity. When pressed further, they were still very specific: lighting on the public roads at night. (At night, the open areas are crawling with two kinds of danger: cobras and men with guns. Both are deadly if you aren’t in the light.)

I pressed further, inquiring about electricity for households. An emphatic “yes” – they wanted lights in the home, so that their children can do their homework after dark – and to watch out for indoor cobras, that move in during the rainy season. What else do they need household electricity for? They looked at each other, and said, “Nothing.” How about refrigeration or cooking? They looked at me as if I said, “How would you like your own private spaceship so you can visit the Moon?”

(A sidenote: Years ago, with their hard-earned rupees, they purchased small solar collectors through SEEDS, Sarvodaya’s economic development arm. These collectors had enough juice to power 4 or 5 LED lamps wired throughout the house. During the fighting with the Tigers, while they were displaced from their village, the security forces came in and stole the solar collectors, along with everything else moveable, like bicycles. (They were very clear that it was the government forces.) I am proposing a village-sized electrical generator, one that a few rogue soldiers won’t be able to walk off with.)

And Yet Another Refugee Camp:

I stated very emphatically before I left on my Eastern tour: “No refugee camps!”  I just can’t bear to look at another.  I wanted to see economic activities in this visit, and to make presentations to Sarvodaya district staff on global challenges, inclusivity and peace.

So, toward my last day there, the District Coordinator said that we were going to make a presentation for “IGP’s” (income generating projects).  Right.  So, I hop in the truck and we drive straight into a refugee camp!  I said, “I thought we were going to see IGP’s.”  He said, “No, IDP’s (internally displaced persons)”  And, worst of all, it’s a “photo op” moment where I’m to make a speech and hand-deliver food aid to a handful of refugees, before climbing back into my air-conditioned vehicle.

At that moment, I thought about Lincoln’s Gettysburg Address: “…we can not dedicate — we can not consecrate — we can not hallow — this ground.” The warlords (on both sides) want to erect monuments to themselves and to the glory of killing. The real monuments must go to those who involuntarily suffer the effects of those wars.

What is there to say? What do you say to a group of people you hadn’t planned to talk to, in a place none of us wanted to be? I said:

“I have visited dozens of refugee camps, from Jaffna to Ampara and everywhere in between. I don’t want to be here. But, more than that, I don’t want YOU to be here. I know that you would rather be in your homes, not listening to me and waiting for a handout of food.

“I hope and I pray and I work for the day when there are no refugee camps, anywhere in the world. Until that day comes, until you can return to your homes, please accept this gift of food as a sign that you are not forgotten.”

Peace,

Sharif

America’s Financial Crisis: A Real Solution

Monday, October 6th, 2008

Howdy–

We are unable to grasp the magnitude of the problem.  In America’s financial tsunami, the real wave hasn’t even hit us yet.

Several years ago, in the prelude to the horrific tsunami in Sri Lanka, the water went OUT, instead of coming in.  People were startled by seeing the shore line recede, sometimes hundreds of yards, and were delighted that they could walk out into the now dry ocean floor and pick up fish.  People were standing there, amused, amazed and bewildered at this site, when the water returned — with a vengeance.

We are similarly stunned by the news of financial turmoil on Wall Street and elsewhere.  So much is happening, so fast, that the collapse of two major banks just in the past few days barely registers in our consciousness.  Lehman Brothers, Merrill Lynch, AIG, Fannie Mae and Freddie Mac, last week Washington Mutual and a short while ago, Wachovia.  Americans watch this carnage, but don’t react.  This is because we don’t know HOW to react.  It’s like being in a redwood forest, watching the giant trees crashing all around you.  But, so far, they’re not crashing on you.  So, what do you do?  Do you run for cover?  Do you stay put?  Do you make some popcorn, get a lawn chair, and enjoy the spectacle?

What is the real problem? (You may not like my answer.)

The problem is NOT mortgage-backed securities, credit default swaps, collateral debt obligations, or any of the other gobbledygook cobbled together by Wall St. whiz kids.  Yes, they have created a wall of opacity compounded by incomprehensibility.  But, that’s not the problem.  The problem is not even “greedy” corporate CEO’s with golden parachutes.

The real problem is… you and me.  I say this for 3 reasons:

1.  We have created a society that profits from greed and waste.  Wall St. didn’t create it, we ALL are complicit in its creation.  (Yes, some of us are more complicit than others, but that does not change the fact that almost all of us participated in this orgy.)  Every one of us who bought a bigger than needed car or house (“We just needed a little more room”), who lingered over those advertisements for the $80,000 car or the $10,000 watch (even if you didn’t BUY it, your lingering created the ALLURE, the DESIRE of the unattainable) contributed to the “you can have it all” mentality.  We look at these huge Wall St. hogs, all lined up at the trough.  Although we are just little piglets, we are lined up at the same trough.

2.  We have created a nation of debt.  We ALL created it.  Our political and economic leaders have mortgaged our children’s future to pay for their addiction-induced wild partying.  (In my book, “Creating a World That Works for All”, I talk about money addiction as the only form of addiction where the supply of the addicting substance is completely controlled by the addicts themselves.)  But, our leaders are US.  Don’t you run your household on a debt basis?  Don’t your credit cards, car bills and mortgage greatly exceed your fixed assets?  That bubble had to pop at some point in time.  What you’re seeing is simply the check that has finally come due.

3.  We maintained the silly belief that we could grow forever, without any consequences.  In Nature, the only entity that grows forever is cancer.  And that is only until it kills its host.  But, we said, “We’re different.”  Now, as it turns out, we’re not.

The real problem is not an economic or financial crisis.  Our real problem is a moral and spiritual crisis that has manifested itself, this time, in the financial arena.  And, in these troubling times, we lack the moral and spiritual leaders and institutions to even address it – most of our “religious” institutions are just as complicit in this crisis as we are.  Our “religious” leaders looked the other way as the collection plates filled up and the “churches” get larger, fancier — and richer.  It’s hard to denounce greed and money addiction when you are the direct beneficiary of it.

It is time for confession, repentance and forgiveness.  All of us.

As a pre-condition of any bailout or rescue, the CEO and senior officers of each troubled institution should go before the public and confess their addiction.  Confess how greed, the quest for power, the addiction of having MORE drove them to make risky and foolish gambles.  Promise that, if given another chance, they won’t do it again.  (And no, this public confession shouldn’t be used in a lawsuit – that’s just more of the same old mindset.)  If they aren’t willing to admit their addiction… don’t bail them out.

Without confession and a sincere request for forgiveness, the responsible actors will simply do the same thing all over again.  They are ADDICTED.  Addicted to money, addicted to power, addicted to “more is better”, addicted to “having it all”, with no consequences.

People who are drug addicted will do anything for the next fix.  They will jeopardize their health, their family, even their lives for the sake of their “high”.  Addicts lie, cheat, steal, even sell their own children to satisfy their addiction.  The money addicts go one step further – they are willing to sacrifice the health of their entire country for their money fix.

The addiction of the Wall St. players has just been exposed.  They have nowhere to hide.  So, what do we do?  The “bailout” offers the drug addicts all the heroin they can shoot, no (few) strings attached.  That’s what the bailout is… a free supply of highly addictive drugs.

There must be an answer.  This crisis is too important to do nothing.  But, the “bailout” is worse than doing nothing.  With our collective house on fire, Congress shows up with a tanker truck filled with gasoline.

After the confession, what comes next?

The Democrats talk about “re-regulation”.  The Republican mantra is “de-regulation”.  Both miss the point.  Instead of taking over the “toxic” debts, leaving them free to screw up again, the answer is to take over the BANKS.  The answer is to turn our nation’s banking system into a “Mondragon” type system, where the banks are owned by the people, managed by the people, and exist to start small, human-scale businesses.  (If the CEO’s of these financial institutions were people like you and me, they wouldn’t have any multi-million dollar salaries in the first place.)

Think this sounds too much like “socialism”?  Well, get over it.  “Socialism” is just fine when it is the rich and powerful who receive the benefits of state welfare.  Here in the 21st Century, it’s time for us to move beyond the “Breaker” concepts of “capitalism” and “communism”.  (Even the Communists aren’t communist anymore!)

Creating a “Mondragon” style banking system would mean a complete restructuring of our economic system, converting down to a system that works by and for the people, and is understood by regular human beings.  This will mean a lot fewer millionaires – and a lot fewer bankruptcies.

Our economy, every part of it, must be re-oriented away from greed and material acquisition.  Our entire society must be re-oriented toward the most pressing problems of our times: ending violence in all its forms, and healing the harm that humans have done to this planet.  With all of us pulling in the same direction, with all of us providing leadership and a high moral example for the rest of the world, we can achieve truly great things.

If, though, we keep up our current delusional excesses, we will be a different kind of example to the world: what NOT to do.  What we do, at this time, is our choice.  Let’s choose wisely…

Peace,

Sharif