what you get here

This is not a blog which opines on current events. It rather uses incidents, books (old and new), links and papers to muse about our social endeavours.
So old posts are as good as new! And lots of useful links!

The Bucegi mountains - the range I see from the front balcony of my mountain house - are almost 120 kms from Bucharest and cannot normally be seen from the capital but some extraordinary weather conditions allowed this pic to be taken from the top of the Intercontinental Hotel in late Feb 2020

Wednesday, November 23, 2011

Living without the luxuries


Monday early saw me at the Military hospital again – this time to a floor so munificent it must have been designed for the Generals and Admirals! High uric acid was confirmed and I was referred to a specialist colleague who has put me on a diet for a few weeks which excludes alcohol and meat. What a torture to be in Bulgaria and denied access to its superb wines and rakias! Particulary after rediscovering the shop which supplies Karlovo wines straight from the barrel! And ironic that the post from a year ago reproduced the text from a gravestone which celebrated someone's skills in producing drink
Reminds me of the refrain in my favourite Romanian poem – "cut out the wine!”.
The post from the 21st is also worth looking at again - it traced the writing over the past 50 years which has tried (unsuccessfully it seems) to persuade us to live a simpler and more social life
The New Yorker has a good piece of background reporting on one of the key figures behind the Occupy Wall St movement.

And a UK Think Tank has issued a report on some of the elements of the "good society” which has become an important theme in one strand of social democratic re-thinking in Europe.

It’s nice to be able to report on one celebrity figure actually helping to create a more sustainable form of housing.

Finally, it's the time of the year when Vihra of the Astry Gallery here delights us with her 30by30 annual exhibition The sketch is an Ilyia Beshkov - very appropriate!

Saturday, November 19, 2011

mainline medical experience


So many books and paintings accumulated in 7 months in Sofia - that moving flats (back to the warmer one I had 3 years ago) proved more strenuous than I had imagined. Perhaps that’s why my big toe decided to swell – and led to more contact with the medical systems here in Sofia. The local medical centre decided after only a brief conversation that this was not for them and directed me to the Military Hospital nearby. It must be one of the largest buildings in the city – only a couple of bus-stops from the new flat off Hristo Botev Bvd. A friendly receptionist and passerby had me at a doctor in a few minutes who decided I needed to see a dermatologist. It was 13.50 when I reached the relevant corridor – and became an early part of a queue which steadily built up over the next 45 minutes with no sign of life inside the door a notice on which told us that consultations started at 14.00. Eventually a couple of women arrived – and, after 10 minutes, started to take people. I was told that I needed to have a blood test and to return with the result at 14.00 next day. A note was duly written specifying the checks which were needed after which I asked about payment. I was told that the charge was 15 euros and that I would have to go the 18th floor to make the payment – if, that is, I wanted a receipt. As I didn’t, the payment was made on the spot. I have to wonder hpw many others do the same thing. It depends presumably on whether the cash is subsequently reimbursed. The doctor gave me her business card and indicated her mobile number.
The “army laboratory” was closed by the time I reached it. At 08.30 the next day, I therefore joined another queue which moved quickly and paid another 15 euros to a receptionist who duly typed up the specification. After a 5 minute wait, I was admitted to the surgery – and asked for the doctor’s name (which was clearly not on the note she had written). Any statistics will therefore show the amount of blood tests given – but will be unable to attribute the source of demand.

At 11.00 I returned, as requested, for the result; and at 14.00 presented myself at the doctor’s cabinet clutching said results. I was alone – and again no sign of life. Another friendly doctor checked and told me the doctor had left the hospital for the day - it transpired that her daughter was ill and she had forgotten about the appointment. I have to return at 08.30 Monday – although I was duly warned that the people I am dealing with are diagnosticians only and that I will need to be referred elsewhere for treatment.

This compartmentalization is what I find so difficult about the medical systems everywhere – in Scotland I had a MRI scan for my weak knees a few years back and all the guy could tell me was that I had no physical debility. No advice on other options to pursue. I have had to assume that it is arthritic. Not surprising that I have lost confidence in medics. Either they are generalists – or diagnosticians – who merely refer. Or specialists who are trained only to identify and deal with their own specialism. As the old truism has it – “if all you have is a hammer, everything looks like a nail”! Apparently we owe this saying to Maslow – of self-actualisation fame

Not much time for thinking or reading about weightier matters – but a couple of posts which seem to me to go to the essence of the Euro crisis and also here.

The Western interventions of the past 15 years have seen a lot of political and academic rationalisations and protests; and few considered analyses. A recent, short book by a couple of people with very extensive personal experience promises to right the balance. It’s “Can Intervention Work?” A New York Times article had this to say about it -
Rory Stewart castigates the international community for its irrelevant data sets, flow charts and attempts to define “best practices.” He worries that “a culture of country experts has been replaced by a culture of consultants” who travel everywhere with jargon: “Lofty abstractions such as ‘ungoverned space,’ ‘the rule of law’ and ‘the legitimate monopoly on the use of violence’ are so difficult to apply to an Afghan village that it was almost impossible to know when they were failing.” At Harvard, where he directed a human rights center, Stewart struggled to convince his congenitally optimistic American students of his stark conclusion: “The international community necessarily lacked the knowledge, the power and the legitimacy to engage with politics at a local provincial level.” If we are to intervene at all, we must do so with modest expectations and a sure sense that “less is often more” and that “we had no moral obligation to do what we could not do.” In a companion essay, Stewart’s former Harvard colleague Gerald Knaus defends the West’s intervention in Bosnia while arguing for an ethic of “principled incrementalism.” While “there is encouraging evidence that limited missions in support of peace agreements and with sufficient resources can produce a good result,” he concludes, the prospects for “nation-building under fire” are much worse
.Finally two sets of wonderful paintings - by Scottish and Russian women of more than a century ago.

Tuesday, November 15, 2011

Alternative medicine, healing - or scam?


I want to recount a sad experience I had on Sunday here in Bulgaria - near Veliko Trnovo. Since a hill walk in the Kyrgyz mountains in 2006 I have had weak (and occasionally painful) knees. The Magnetic Resonance machine (in Glasgow) couldn’t identify any physical deterioration – and left me to conclude that my condition was arthritic. I was therefore easy prey when a friend suggested I try some foot reflexology from a Bulgarian who had returned home after a successful practice in Italy. He took me in 2009 or so for my first (painful) hour’s treatment. It didn’t make any difference – but I was persuaded it needed a course of treatment. After all, when (some 25 years ago) no physical therapist could deal with a previous knee pain I had, it was (apparently) sorted out in a short session by a guy who just massaged it – all the while dangling a pendant like a metronome.
And last Thursday started – after a 3 hour journey from Sofia - what I thought would be such a course. An hour’s session cost me 50 levs – which I considered reasonable since a massage would have cost me about 60 (although leaving me more invigorated). I returned on Sunday for the second session – which was only 30 minutes (I had been made to wait an hour and needed to be back in Sofia by 16.00) – and was shocked to be asked for 50 euros – effectively 4 times the previous week’s rate (double the price for less than half the time). I was told two things – first that they had made a mistake the previous week, charging me the rate for Bulgarians (foreigners were 50 euros – Romanians too???). And, second, that what counted was not the length of the session (it’s not massage!) but the effectiveness. But I had no pain when I arrived – so lack of immediate pain (apart from the bones he had pressed) was no measure. I would be happy to pay by results – but that was never on offer! The “healer” (for that is the term I have discovered they use on the website which is still under construction) just decided to stop my treatment in order to give someone else treatment who was also in a hurry.
I confess I was a bit annoyed by the guy’s abruptness – and lack of interest in the information I tried to convey to him about a skin condition I have - and the small wooden roller he used was duly beginning to tear my skin
I had noticed some time ago that the Bulgarians have a great belief in spiritual energy - which does leave them vulnerable to people we northerners would regard as quacks. And last october the Bulgarian authorities were threatening to tighten up on "healers".

Coda
A Bulgarian reader who has received and seen Mitio's treatment has been in touch to argue Mitio's corner. He draws attention to the many people who have clearly benefited from the treatment. I am sure that his treatment has helped many people and admit that part of my concern is the language of "healing" since this, for me, is getting close to calling oneself a "miracle-worker" which my world-view has difficulty accepting. I readily accept that there are a lot of things man does not and probably never will explain with current methodologies. But would be more comfortable with the term "therapist" - and if he showed some humility about other (complementary) approaches. Clearly, for example, what one eats (and drinks) does affect one's body. Man ist was man isst! For example, a coupleof days later, I had a painful swelling in a big toe - and the blood test at the hosptital identified high uric acid. They immediately put me on a diet of no meat or wine (and lots of water) for 4 weeks - after which we will test again. And my body seem to appreciate the new diet!
And it is certainly a problem for me that (a) I don't know what technique he is using (is it reflexology?) and (b) that I don't get any feedback. I can share his view of the medical profession - but he equally needs to accept that people need information and feedback; and that his treatment may not necessarily be appropriate in all cases.
.

Monday, November 14, 2011

What would Google Do?


In fact, What Would Google Do? proved to be an engrossing and thought-provoking read – although the early stuff about turning customer complaints on their head (as it were) and using them as an intelligence tool to help improve design and/or maintenance is the stuff of common sense which I used forty years ago when I was a young politician trying to reshape municipal services. Except that, now, Blogs, Twitter and Facebook clearly give “the crowd” (that’s us) much more power – and not only negative (complaint) but positive – “your customers are your ad agency”. Later in the book, indeed, he explores the likelihood that various “middlemen” organizations such as advertising agencies may indeed become redundant. One review put it well
The principles he unearths from close observation of Google’s practices range from the obvious, like the importance of enabling customers to collaborate with you, to the apparently mystical mantra “focus on the user and all else will follow”.
In the second part of the book Jarvis offers ideas and suggestions for how various industry sectors can become more “Googley”, and although many of the proposals are more imaginative and speculative than realisable, by the end you get a real sense of the transformative power of applying the principles he has outlined. The core assumptions of transparency, connectedness and openness really do make a difference, and business models in the media, the car industry, venture capital and even the benighted banking sector would be transformed if they were taken seriously.
Sitting at the core is the desire to do more with data, to take the details of our daily lives, aggregate them with the information that companies inevitably gather and then – and this is the Googley bit – give us access so we can make our own choices eg a restaurant that open sources its menu and lets customers rate the wines as well as the service, Jarvis’s goal is to help us all to think differently.
It doesn’t always work, and the attempt to contrast Al Gore’s approach to solving the problems of global warming through regulation and control with that of Google’s founders Larry Page and Sergey Brin, who want to invest in finding ways to reduce the cost of renewable energy, ends up as an unconvincing paean to the free-market worldview that now seems rather dated in the midst of a banking-induced recession. But the overall tone is of infectious optimism in the power of innovation that is remarkably convincing
.
I wasn’t quite so convinced. At one stage I started to wonder about the profile of these energetic and restless complainers who rush to put their experiences online and use comparative data to make their purchase decisions. It sounds suspiciously much like an idealisation of the rational (wo)man which is the basis of the economics doctrine which has just been blown away and is being replaced by behavioural economics. However, his section on the future of the book is provocative –
books are frozen in time without the means to be updated or corrected, except via new editions. They aren’t searchable in print. They create a one-way relationship. They tend not to teach authors. They cannot link directly to related knowledge, debate and sources as the internet can. They are expensive to produce. They depend on shelf space. They kill trees. There are only a few winners (20%) and the rest are losers.
Except that browsing a remaindered book section is an exercise in discovery. As the first review puts it -
deep down this is not really a book about Google as much as an extended meditation on the benefits of innovation, openness and the imaginative use of new technologies of networking and information processing. Jarvis uses Google’s undoubted success and continued development as a fulcrum for his rhetorical lever, attempting to move corporations, governments, educational institutions and the medical establishment away from their settled practices and into a space where innovation can flourish and where creative destruction leads to progress.
A critical review is here. The author uses his website to compose his books and there is an interesting assessment of some of the reviews of his latest here.
Two years ago I blogged about the Zhukoff book Support Capitalism which has a more measured (if more inaccessible) assessment

Wednesday, November 9, 2011

An opportunity to catch up

I will probably be out of access to the internet for the next few days – so please take the opportunity to check back on recent posts – most of which have dealt with the role of training public officials in countries emerging from autocratic rule. Or check the posts from exactly a year ago – for example the one for 10 November 2010 had a section which suggested we allow the wrong sort of people to be honoured and celebrated -
the first twenty years of my life, I focussed on the political – the "what”.
The last 20 years the focus has been on the "how”- on reforming the machinery of government. I’m still interested in the latter but, as the masthead quotation from JR Saul indicates, I think the value of technocrats is overrated and the role of citizens and the maligned politicians has to be asserted. And one of the things wrong with a lot of the reform writing is that it is too abstract. Change is a question of individuals – and we need more of the naming and shaming approach which I used myself for the first time a year ago when I picked out a State Secretary and analysed his (outdated) declaration of interest form which appeared on the Ministry website.
We also need to celebrate more those who are trying to make a positive mark on life – and, as I noted on a recent friend obituary, while they are still alive. One of the reasons I enjoyed Paul Kingsnorth’s book One No; many Yeses on the protests against the iniquities inflicted on the world by multi-national corporations is that it focused on the individuals in different parts of the world who are risking their lives and livelihoods to protest against the destruction being wrought by people running these organisations.
Business has been using the journal “portrait” for a long time to glorify their class – and most management books are little else than hero creation and worship. Only women like Rosabeth Kantor (with her marvellously mocking ten-rules-for-stifling-innovation and Shoshana Zuboff, it seems, are capable of resisting this inclination of business writers! But you don’t find such positive write-up of reformers – presumably because media ownership is so neo-liberal. And the publications of the reform movement tend to concentrate on ideas.
For example, I’ve wanted for some time to say something about one of the people I admire most – a Slovak friend of mine who, as Director of a training centre run on cooperative lines in a village, has utterly transformed an old palace, building up not only the facilities it offers (and the labour force) but commissioning local artists to create glorious murals to remind us of the place’s historical heritage and holding vernissages with painters from central europe, the Balkans, Central Asia etc. Walk into his huge office and he is almost lost amongst the books and paintings which are piled up around his desk. And his house is like a (living) museum – from all the artefacts he has brought back from his vacations throughout the world. He is such a lovely, modest man and I always feel a taste of heaven when I visit him at the Mojmirovce Kastiel.
I was stumped a few months back when I was asked who were the people I admired? Apart from a few inspirational friends such as my Slovak friend, the people I admire are those who have a combination of vision, social justice and communication for example Peter Drucker; Leopold Kohr; George Orwell; JK Galbraith; Ivan Illich; C Wright Mills; Ernst Schumacher. They’re all dead!

And the November 12 post poses four basic questions which are always worth posing and exploring.
So have a good rummage while I'm away......there is some good stuff there....

Leaders of change

New readers should note that this blog is a great resource for those concerned about the apparent collapse of key elements of our core systems – and what we should be doing about it. My blogs rarely comment on the trivia which passes for News these days (although I couldn’t resist the recent grilling of Rupert Murdoch by a UK House of Commons Committee) and try to strike a reasonable tone. They alternate between the professional and political aspects of improving governance (particularly in "transition countries" – a combination which gives these posts a distinctive slant. Most of my posts give direct links to papers which give hard evidence of my points. A bit like Google Scholar, I try to stand on the shoulders of giants. Indeed one of the reasons I keep blogging is that I find it is a great way of organising my reading. Anything which impresses me gets worked in; without the blog I would be wasting time trying to find a paper which I knew said something important. Now all I have to do is punch a keyword into the search engine on the site – and hey presto! The blogs are therefore (I hope) more like perennial flowers which can be enjoyed even if a couple of years old. And I am pleased to see that some of my readers do that without being urged.
Exactly a year ago I had a lament on impotence of democratic politicswhich shows you what I mean.

From October 28, I devoted a series of posts to the issue of the role of training in improving the performance of state bodies in ex-communist countries. I was pretty critical – particularly of the EC funding strategy.
The second post in the series summarised my critique and suggested three paths which those in charge of such training in these countries needed to take to make an impact -
1. to signal that the development of state capacity needs to be taken more seriously – by officials, politicians and academics – and to give practical examples of what this means
2. to try to shine some light on the role of training in individual learning and organisational development – to show both the potential of and limits on training and to have the courage to spell out the preconditions for training which actually helps improve the performance of state bodies
3. to encourage training institutes to cooperate more with change agents in the system - and with academia
Part V tried to put us in the shoes of a Director of the National Institute of training of public servants in these countries – facing incredible constraints - and to expand on these three points. Part VII switched the focus back to the funders and tried to reduce the critique to a few bullet points - "Wrong focus; wrong theory"; "context" and "leadership" and then went on to give an illustration of the sort of cooperation which might pay dividends for a Director of a Training Institute.
A final post backtracked a bit to ask what we actually know about the process of developing the administrative capacity which I had made the core of my argument.
It also noted that I should now explore why on earth anyone facing the sort of political and budgetary constraints which exist in the Balkan countries (widely defined) should ever wish to put her head over the parapet and "think big and reach out” as I had earlier suggested . So here goes……

I did make the point very strongly in the posts that each country has to make its own way – each context is very different and requires something which resonates with its key actors. Locals who bring foreign experience (like most think-tankers) are generally just trying to make a name for themselves as can be seen in this (otherwise interesting) book of case studies from the countries which were in the more direct influence of the Soviet Union.
But I am who I am am; my context (at least for the first 25 years of my working life) was the strong bureaucratic system of Scottish local government – which owned the vast proportion of the housing and transport system. I challenged this system – before Margaret Thatcher appeared on the scene – but from a new left and participative rather than privatising perspective.
And I had a lot of allies – first in men and women (more the latter) who worked in impossible circumstances of low income and insecurity – but who had the guts and energy to try to make a better lives for those around them. And, secondly, in a few officials who realised that if they did not use their position, skills and knowledge to try to make things better, then we would soon hit rock bottom. Mark Moore tried to legitimise the work of such committed officials in his 1995 Public Value book.

It is extraordinary people who make things change – sometimes, of course, for the worse. We have been brainwashed in the past 2 decades to believe that change was always for the better – the default option in the dreadful language. I linked yesterday to a Monbiot article which quoted from an important recent book identifying the psychotic element in so many corporate leaders – which has been a theme since Alaister Mant’s Leaders We Deserve. Malcolm Gladwell shows that even the recently deceased and highly regarded Steve Jobs had many elements of dysfunctionality in his pursuit of perfection.
And psychotic management seems to be in an even healthier state in ex-communist countries – although at least one book has tried to celebrate local heroes willing and able to make a difference.

In 2000, Malcolm Gladwell’s famous book The Tipping Point argued that the attainment of the "tipping point" (that transforms a phenomenon into an influential trend) usually requires the intervention of a number of influential types of people - not just a sinle "leader". On the path toward the tipping point, many trends are ushered into popularity by small groups of individuals that can be classified as Connectors, Mavens, and Salesmen.
Connectors are individuals who have ties in many different realms and act as conduits between them, helping to engender connections, relationships, and “cross-fertilization” that otherwise might not have ever occurred.
Mavens are people who have a strong compulsion to help other consumers by helping them make informed decisions.
Salesmen are people whose unusual charisma allows them to be extremely persuasive in inducing others to take decisions and change their behaviour.
Hopefully my next post will be able to make proper use of all of these references!!

Tuesday, November 8, 2011

Management as religion

As you may perhaps have noticed, I’ve been experimenting with the title of the blog – in the belated realisation that "Balkan and Carpathian musings" may not be a phrase that people often punch into their search engine! "Better government" has the sort of technocratic note which is perhaps needed and does reflect some of the content. But what about the phrase I used yesterday - "in the public interest"? Another possible title could be "A Common Reader – since I do try to give references and excerpts from my extensive reading. On the other hand, I have always liked the metaphor of striving and exploring – indeed the designation on my new business card is "explorer and aesthete"(I actually wanted to put "epicurean" but desisted since it has contradictory meanings). My first little book (way back in the mid 1970s) was called "The Search for Democracy". Two titles of recent papers of mine reflect some of what I write about – "Just Words" and "Thoughts for Posterity" – but again have no resonance for those hitting the search engines. I need someone to explain to me the relative importance of (a) the name of the blog; (b) the title of the particular post; and (c) labels and keywords.
What frustrates me is that I have no real idea who the 40-50 people are who hit my various posts each day – nor whether they actually read the posts. Apart from the (rising) numbers each day, all I know is the location of the readers (in the past week the top 6 countries are, in descending order, Germany, Russia and central Asia, USA, South Korea, Bulgaria, Romania and UK). I don’t know how many of them actually return (eg there was a spike of 80 German page viewings last night).

Curious that I should buy at the weekend and start to read a book which announces (for the 4th or so time in my lifetime) the end of the power structures as we know them and the power which ordinary people now have – when the global demonstrations against finance capitalism demonstrate the scale of political impotence people all over the world feel. The book is one I had been recommended - What would Google Do? and I have discovered that it can be read for free in its entirety here.
It was first published in 2009 and, as far as I can understand, tries to demonstrate that the google way of doing business is the way of the future – for the public as well as the private sector – giving us all new power (though networks etc). You will get a good sense of it from this review.
From what I have read so far, I do not expect to have my sense of corporate power shattered – although I do hope to learn a bit more about how Google and internet companies operate.

But the book seems to me another example of how we seem to have lost our social memory.
I remember reading, in the early 1970s, books by prominent management theorists (such as Warren Bennis) and others (such as Toffler – Future Shock) which promised the end of bureaucracy.

The early 1990s saw breathless books (by people such as Tom Peters) which promised the same. Forty years on, what do we have – stronger bureaucracy (now called contracting, procurement and regulatory bodies) than ever - and more autocratic and pyschotic leadership and management!
And I find it significant that – as far as Google Scholar goes – Warren Bennis hardly existed.

For me, it is very strange how difficult it is to get hold of serious books which critique the whole management religion. I know that a lot of sociologists have in fact conducted such critiques but two factors make it difficult for the interested citizen (another possible title for my blog??) to access this stream of work. First the language in which (and the narrow audience for which) they write - in expensive, specialist academic journals.
And, secondly, the control exerted by (large) publishing companies who have a very special interest in NOT demystifying management since they make so much money from management books – whether textbooks or airport lounge pickups.
 All credit therefore to Sage Publications for giving Chris Grey the opportunity to publish A Very Short, Fairly Interesting and Reasonably Cheap Book about Studying Organisations (2009 2nd edition) which, for me, contains more incendiary material than Marx, Lenin, Che Guevara and Al-Quada rolled together. It is written by an academic who can actually write clearly - and who sees it as his job to interpret for us the significant parts of academic work.

Monday, November 7, 2011

Public Interest - how innocent we were

One of the really difficult things for people of my generation is to come to terms with is how venal our legislative and legal systems have become (the bankers are simply part of a complex equation). The post-war generation to which I belong was brought up with the tenets of liberal democracy - some of which you will find set out at page 6 of this paper of mine. We believed that government was responsive to public concerns; that our civic input (in whatever form - letters; political membership; political involvement and argument - not least as local councillors) would ensure the system operated in the public interest. The evidence we have seen in the last decade has, however, has forced us to the reluctant conclusion that laws are created generally to protect the rich and powerful; and that the judiciary (despite or perhaps because of its claims of impartiality) is in fact not blindfold but highly susceptible to the interests of the rich and powerful. I leave open the question of whether this is a new phenomenon - or simply one which less deferential a more educated and connected society has become aware of.
The examples I quote are first from a bastion of social democratic values (Canada) and then the better-known practitioner of venality and hypocrisy which happens to be its southern neighbour.The first article identifies the huge inequities in how banks are treated – compared with the rest of us.
They are often protected (from foreign competition); subsidized (for example, in the way capital gains tax worked), and bailed out when needed. But what do banks actually do, in return for all that money? What is their actual economic function?
Let’s cut through the mystification of high finance, and ask that simple question: What do banks do? What do bankers actually produce?
The practical answer, in concrete terms, is simple: nothing. They produce nothing.
In that, the banks are different from the real economy, where hard-working people like you and I produce actual, concrete goods and services that are useful.
Banks, and the financial sector more generally, don’t produce goods and services that are useful in their own right. They produce paper. And then they buy and sell paper, for a profit.
Here’s a little economic lesson. You can’t live off paper. You need food, clothing, and shelter to survive – not paper. And since we are human beings, not animals, we need more: we need education, and culture, and recreation, and entertainment, and security, and meaning. Those are the fundamentals of economic life. Not paper.
What is paper actually good for? You can wallpaper your house with it. You can line your birdcage with it. In a pinch, you can wipe your butt with it.
But other than that, paper is just paper. It is not concretely useful in its own right.
How do banks create that paper? Let me put it bluntly again: They create it out of thin air.
It is not an economic exaggeration to state that the private banking system has the power to create money out of thin air.
Not cash. Not currency. Only the government can produce that.
But most money in our economy – over 95% of money in our economy – is not currency. Most money consists of entries in electronic accounts. Savings accounts. Chequing accounts. Lines of credit. Credit card balances. Investment accounts.
In that electronic system, new money is created, not by printing currency, but through creating credit. Every time a bank issues someone a new loan, they are creating new money.
It’s like a big magic machine, creating money out of thin air. And it’s called the private credit system.
One of my favourite economists, John Kenneth Galbraith, put it this way: “The process by which private banks create money is so simple that the mind is repelled.”
How do they do it? They start out with some capital. Let’s say a billion dollars. Then they lend it out. Then they lend it out again. And again. And again and again, 10 or 20 or 50 times over.
Each new loan, is new money. The economy needs that money, let’s be clear. Without new money, we wouldn’t be able to pay for the stuff we make. So we’d stop making it, and we’d be in a depression.
So the creation of new money (or credit) is as essential function for the whole economy. It’s like a utility. But we’ve outsourced that crucial task to private banks. We’ve given them a legal license to print money – and the freedom and power to do it on their own terms.
Their goal is not providing the economy with a sensible, sustainable supply of the credit we need. Their goal is using their unique power to create money out of thin air, to maximize the profits of the banks, and the wealth of the shareholders.
The second article I owe to a site - Byliner - which offers simply good writing. Out of curiousity I hit this piece which tracks how the American judicial system treated someone outraged with the secretive and iniquitous way heritage land was being sold to commercial gangsters.
WHEN DECHRISTOPHER’S CASE finally went to court last March, 2,000 protesters showed up. So did the Salt Lake police department, federal marshals, and Homeland Security agents. The trial lasted three days, with Judge Benson making a few things clear up front. First, DeChristopher’s attorneys wouldn’t be allowed to use a necessity defense—the argument that he had to disrupt the auction because of his beliefs about climate change (he had successfully bid for about 12 lots of land with no intention of paying). Second, the defense couldn’t bring up the fact that DeChristopher had actually raised money to buy the land; the court’s view was that, by then, the fraud had been committed. Finally, the defense could not inform the jury that past bidders had not been able to pay for their parcels either. Shea and DeChristopher’s other attorney, Ronald Yengich, were left to argue that their client had acted on impulse and hadn’t intended to disrupt the auction. The prosecution didn’t have much trouble refuting this, given DeChristopher’s public statements, and it came as little surprise when, on March 4, DeChristopher was convicted
You can imagine the behind-the-scene discussions which went on to fix that!

Culture corner
And, after these photos of reality, let's have a fix of something more worthwhile in these latest paintings from Its about Time