What is wealth? What is sustainable? How can wealth creation for our society be brought back into alignment with true happiness and well being? Where do wealth and sustainability intersect? Some say true wealth is "quality of life" - well then, What is quality of life? I'll survey thinkers, articles and topics to address these and related questions... "We don't see things as they are. We see them as we are." - Anais Nin
Tuesday, May 04, 2010
Why does a hamburger cost less than a salad?
NY Times article discusses food subsidies as rationale why our food costs are not in line with nutrition.
John Perkins - Shapeshifting Corporate Culture To A Sustainable Thriving World
Reality Sandwich just published a wonderful interview with John Perkins - author of the best selling book - "Confessions of an Economic Hitman." In the interview he points to the opportunity, and responsibility we have to shift our global corporations to ensuring well being for all of Earth's inhabitants.
The interview finishes with an important opportunity:
Perkins states:
The interview finishes with an important opportunity:
Perkins states:
"Imagine if a number of us had the dream that Coca-Cola, McDonald's and Nike all committed to making sure that nobody in the world ever goes without sufficient water, food, or clothes. If we had that vision, we would tell those companies, look, we're never going to buy anything more from you until you do this.
Coca-Cola is like Godzilla. Can you really see it responding to these kinds of demands?
Immediately following the tsunami last winter, Coca-Cola sent millions of bottles of water to the victims. But every day 24,000 people in the world die of thirst. and starvation. You don't have to wait for a tsunami—there is a much bigger tragedy. If people have that vision and begin to act upon it, I guarantee you that Coca-Cola will change, and if Coca-Cola changes, then Pepsi Cola will have to change too. And everybody else."
Thursday, April 29, 2010
Goldman v. United States: What It Means
"It is not what a lawyer tells me I may do, but what humanity, reason and justice tell me I ought to do." - Edmund Burke, statesman, philosopher
My friend John Fullerton a 20 year Investment Banker from JP Morgan just wrote a must-read piece on the recent Goldman Sachs issues of conflict of interest, and the resultant SEC Lawsuit.
My friend John Fullerton a 20 year Investment Banker from JP Morgan just wrote a must-read piece on the recent Goldman Sachs issues of conflict of interest, and the resultant SEC Lawsuit.
John's last sentence sentence sums up my views on the need to rewrite the source code of financial system.
"There is much hard work ahead in creating a resilient and trusted financial system that serves the needs of the real economy rather than the self-interest of a few. More importantly, finance must evolve so it can fuel the transition of the real economy to respond to the injustice of gross and increasing wealth inequality, and, for the first time, to intelligently acknowledge the finite boundaries of the ecosystem that are in conflict with the finance driven global economy’s never ending growth of material throughput."
Sunday, April 25, 2010
We need a new economic system that incorporates caring for each other and nature.
"Economic systems are human creations. Every economic institution and program, from banks and corporations to unemployment insurance and Social Security, is a human invention. The economic rules we we take for granted are human inventions. We must decide which economic rules we want to keep and which we want to leave behind, and invent new economic rules that meet our authentic human needs. If we join together to demand these new rules, we can each play a part in moving toward a more caring economics and a more caring world."
From "Real Wealth Of Nations" by Riane Eisler.
From "Real Wealth Of Nations" by Riane Eisler.
Friday, April 02, 2010
SUSTAINABLE AND RESPONSIBLE INVESTING: How Your Money Can Help You and the World
This is an article I just wrote for Whole Person Calendar.
"Sustainable And Responsible Investing: How Your Money Can Help You and The World"
You can view the article PDF here.
In the past few years, our financial system has been rocked to its core. Belief in profit-driven motives as the sole metrics of perfor-mance has been fundamentally shaken. Our perception of risk have been forever altered, and our economy is shifting toward a new foundation. Traditionally, investments are made with one, and only one, measure in mind -- how much money does the invest-ment return? Every investment is consid-ered for its financial return potential, yet fi-nancial return should not be the only metric for success. In today’s world, investing pro-cesses must take into consideration the im-pact on the environment, the individuals employed, the communities involved, the climate, biodiversity issues, and a host of other factors.
One of my clients, Terrie, is an anti-tobacco educator for colleges across California. She’s devoted to her job and has a talent for helping young people recognize the perils of smoking. That’s why she was appalled when she learned that every one of her mutual funds held large investments in tobacco stocks. For Terrie, the revelation that her investment portfolio conflicted with her personal values is what sent her to my office and marked the beginning of her interest and inquiry in socially and environmentally responsible investing. Another client of mine, Mary, is pleased that now her “mon-ey is where her mouth is.” Mary, a successful television actress, is very active in supporting environmental groups and progressive causes. For years, her advisor was a family stockbroker at a major brokerage firm. On a number of occasions, she raised her concerns about companies in her portfolio that depleted natural resources and befouled the earth. Mary encouraged her advisor to find investments and mutual funds that were socially and environmentally responsible. Throughout the relationship, the broker derided her concerns; he dismissed such requests and advised her that sustainable and respon-sible investment strategies were inferior. Eventually Mary got fed up. She came to me seeking someone who would not only listen to her concerns, but also help her to earn competitive returns on her portfolio. Mary says she is pleased that her wealth is not only growing, but it is also helping to fuel positive change in the in corporate America and having an impact through community development investments she has made. Her investments, she says, are now safeguarding her family’s welfare – and the planet’s.
Mary and Terrie aren’t alone. The trend toward sustainable investing, also known as socially responsible investing (SRI), began in the 1960s, as people began to shun companies like Dow Chemical that profited from the manufacture of napalm for the Vietnam War. The movement to sell off “sin stocks” gained momentum in the 1980s. A growing number of investors found it unconsciona-ble to hold stocks in companies that did business in apartheid South Africa. Success with helping to end apartheid inspired socially responsible investors to turn their attention to other issues, such as protecting the environment and promoting fair labor practices. One faith-based institutional investor on the East coast, alone, leverages its $90 billion in assets to make better corporate citizens out of companies as large and powerful as Exxon Mobil, Chevron and General Electric.
Today, one out of every eight dollars under professional management in the U.S. is part of a values-based portfolio. In 2007, the Social Investment Forum reported that socially responsible invest-ments in the U.S. totaled more than $2.71 trillion in total assets under management using one or more of the three core socially responsible investing strategies—screening, shareholder advocacy, and community investing. About one out of every ten dollars under professional management in the United States today is involved in socially responsible investing—11 percent of the $25.1 trillion in total assets under management.
How Can I Become A Socially Responsible Investor
"Sustainable And Responsible Investing: How Your Money Can Help You and The World"
You can view the article PDF here.
In the past few years, our financial system has been rocked to its core. Belief in profit-driven motives as the sole metrics of perfor-mance has been fundamentally shaken. Our perception of risk have been forever altered, and our economy is shifting toward a new foundation. Traditionally, investments are made with one, and only one, measure in mind -- how much money does the invest-ment return? Every investment is consid-ered for its financial return potential, yet fi-nancial return should not be the only metric for success. In today’s world, investing pro-cesses must take into consideration the im-pact on the environment, the individuals employed, the communities involved, the climate, biodiversity issues, and a host of other factors.
One of my clients, Terrie, is an anti-tobacco educator for colleges across California. She’s devoted to her job and has a talent for helping young people recognize the perils of smoking. That’s why she was appalled when she learned that every one of her mutual funds held large investments in tobacco stocks. For Terrie, the revelation that her investment portfolio conflicted with her personal values is what sent her to my office and marked the beginning of her interest and inquiry in socially and environmentally responsible investing. Another client of mine, Mary, is pleased that now her “mon-ey is where her mouth is.” Mary, a successful television actress, is very active in supporting environmental groups and progressive causes. For years, her advisor was a family stockbroker at a major brokerage firm. On a number of occasions, she raised her concerns about companies in her portfolio that depleted natural resources and befouled the earth. Mary encouraged her advisor to find investments and mutual funds that were socially and environmentally responsible. Throughout the relationship, the broker derided her concerns; he dismissed such requests and advised her that sustainable and respon-sible investment strategies were inferior. Eventually Mary got fed up. She came to me seeking someone who would not only listen to her concerns, but also help her to earn competitive returns on her portfolio. Mary says she is pleased that her wealth is not only growing, but it is also helping to fuel positive change in the in corporate America and having an impact through community development investments she has made. Her investments, she says, are now safeguarding her family’s welfare – and the planet’s.
Mary and Terrie aren’t alone. The trend toward sustainable investing, also known as socially responsible investing (SRI), began in the 1960s, as people began to shun companies like Dow Chemical that profited from the manufacture of napalm for the Vietnam War. The movement to sell off “sin stocks” gained momentum in the 1980s. A growing number of investors found it unconsciona-ble to hold stocks in companies that did business in apartheid South Africa. Success with helping to end apartheid inspired socially responsible investors to turn their attention to other issues, such as protecting the environment and promoting fair labor practices. One faith-based institutional investor on the East coast, alone, leverages its $90 billion in assets to make better corporate citizens out of companies as large and powerful as Exxon Mobil, Chevron and General Electric.
Today, one out of every eight dollars under professional management in the U.S. is part of a values-based portfolio. In 2007, the Social Investment Forum reported that socially responsible invest-ments in the U.S. totaled more than $2.71 trillion in total assets under management using one or more of the three core socially responsible investing strategies—screening, shareholder advocacy, and community investing. About one out of every ten dollars under professional management in the United States today is involved in socially responsible investing—11 percent of the $25.1 trillion in total assets under management.
How Can I Become A Socially Responsible Investor
Tuesday, March 30, 2010
Thursday, March 25, 2010
Wanna make a 79% return? Check out Grassland Ecosystem Restoration...
I first heard of the term "ecosystem services" in the groundbreaking book "Natural Capitalism - Creating the Next Industrial Revolution" by Hunter Lovins, Paul Hawken and Amory Lovins. Essentially the concept is that ecosystems provide tangible value to the global economy far greater in scope and economic value than the economy itself.
I just came across an article on Science Daily which references a study which actually tallies the potential rate of return on investing in restoring particular ecosystems.
This is truly next level for me, as the concept of actually MAKING MONEY while RESTORING ECOSYSTEMS is very, very sexy indeed.
The article states:
"Experts concluding the global DIVERSITAS biodiversity conference in Cape Town described preliminary research revealing jaw-dropping dollar values of the "ecosystem services" of biomes like forests and coral reefs -- including food, pollution treatment and climate regulation. Undertaken to help societies make better-informed choices, the economic research shows a single hectare of coral reef, for example, provides annual services to humans valued at US $130,000 on average, rising to as much as $1.2 million."
The article cites estimated return estimates from such investments in various ecosystems:
"•Coral reefs: 7%, (with a cost-benefit ratio of 2.8);
•Rivers: 27%, (cost-benefit ratio 15.5);
•Tropical forests: 50% (cost-benefit ratio 37.3);
•Mangroves: 40%, (cost-benefit ratio 26.4);
•Grasslands: 79%, (cost-benefit ratio 75.1)."
If we could spur an investment gold rush into such endeavors to restore and actually expand such ecosystems we'd see a revolution in the church of money.
Imagine - greedy Wall Street Executives clamoring over eachother to restore more and more ecosystems. Now that is the closest thing as a good use for greed if I ever saw one.
Wednesday, March 24, 2010
More green jobs per million...

I got this chart from my friend Andy Lipkis' blog, created by University of Massachusets at Amherst. It simply speaks for itself. Green Industry creates more jobs per million dollars invested...
Thursday, March 11, 2010
This is how economics should work - regenerative ecological systems for economic gain!
An ecological network for economic gain. A fish farm and bird sanctuary!
Our bread basket is threatened by a systemic liquidation of natural resources. We can create world where every community can feed it self.
Farms that restore ecosystems rather than destroy.
Farmers experts in relationships.
Our bread basket is threatened by a systemic liquidation of natural resources. We can create world where every community can feed it self.
Farms that restore ecosystems rather than destroy.
Farmers experts in relationships.
Monday, March 08, 2010
Wednesday, February 17, 2010
A Vegan in a Hummer?
Many enviros simply want change, as long as they don't have to change their lifestyle very much.
I know this from experience, my own! Admittedly - this green guy still could do more.
Yet the smartest people I know are aware that our happiness is built on lifelong journey of learning. Ray Anderson's book "Midcourse Correction" is a testament to that sage wisdom applied in business.
There's a movement afoot in the MIT Circles -
Smart managers are wary of epiphanies. “Suddenly, everything looked different” should be the last line of a short story, not a report from the management front. But sometimes, something makes you look at a matter you’ve paid a lot of attention to in a different way. Even if you look at everything differently for only a moment and then you return to your original perspective, that perspective has been changed.That may have happened to some people at last week’s Pop!Tech conference, in Camden, Maine. One of the speakers was Michael Pollan, author of The Botany of Desire, who delivered a variation of his standard talk on sustainable food. In that talk, he dropped this nugget:
“A vegan in a Hummer has a lighter carbon footprint than a beef eater in a Prius.”
Read the entire article here.
“A vegan in a Hummer has a lighter carbon footprint than a beef eater in a Prius.”
Sunday, January 31, 2010
Friday, January 08, 2010
Article I wrote for Triplepundit.com - Economics Built on Beauty and Community
I wrote an article last fall for Triple Pundit:
Right before I boarded a plane recently, I noticed a Body Shop in the terminal next to the gate. The Body Shop has been a leading business that incorporates social and environmental values into its operations. It was founded by the late Anita Roddick, one of the emergent leaders in the expanding and evolving “green” business movement.
Roddick was a very influential and inspiring thought leader, she stood as a pillar of the socially and environmentally responsible business movement. As I thumbed through my reading materials I found an article in Resurgence Magazine by Roddick entitled “The Currency of Imagination.” This eloquent article laid out some of her guiding principles and reflections on being one of the only CEOs (if not the only CEO) in the crowd of human beings who raised their voices against the globalization paradigm represented by the 1999 WTO meeting in Seattle.
In the article she laid out a new vision for society, a vision which I share, where we place community and beauty as driving values for our individual and institutional decision making. I have learned that for any successful endeavor in new economic thinking to work, it must be built on a culture of trust and collaboration amongst the participants. Such ideas have inspired me in the efforts I have made in my region in co-founding Green Business Networking, a monthly networking event which brings together entrepreneurs and professionals who are committed to greening our economy through their businesses.
Somewhere along the line we picked up a virus in our culture’s source code. This virus misguided us by placing money and power as the central measuring sticks for success, all fed by a rapacious economic operating system driven by the gospel of consumerism. Our economy has become devoid of beauty and community, transactions have become ”complex, opaque, anonymous based on short term outcomes” according to Don Shaffer, President of RSF Social Finance, and our transactions need to become “direct, transparent and personal based on long term relationships.” On a similar theme, Judy Wicks, founder of the White Dog Café, who is also a co-founder of the very successful movement “Business Alliance For Local Living Economies” lives these principals. She says that her business was built on the principal of “maximizing relationships” rather than “maximizing profits.” As a result of her focus, her business thrived with the satisfaction of higher sales, and happier people.
In the wake of the recent financial crisis, and the significant ills facing our world, it has become clear to many people that the prevailing economic paradigm is no longer working to improve the well being of humanity. With climate crisis, declining ecosystems, billions, food riots, childhood diabetes, etc. individuals and institutions are experiencing the severe ramifications of an avaricious and predatory economic model. However, there is another way.
I spend a fair amount of energy inquiring into the nature of the latent economic opportunity of which Roddick spoke–that which incorporates beauty and community into the economic equation. I am also keen on discerning the most effective and coherent actions necessary to transmute our current economy of waste into an economy of thriving abundance, conservation and renewal for 100 percent of humanity. Our economic paradigm utilizes debt manipulation and consumerism as a short-sighted means to an unforeseen dead end and endless gluttony for few at the top of the heap.
Roddick said:
Sadly, and with far reaching consequences, our current economy has failed to value such manifestations of “beauty, community and creativity. She pointed out that the economist John Maynard Keynes “talked about the hideous waste of economic system that could not recognize art or beauty…. In a speech to the Irish government in 1933, he urged politicians and economists to raise their ambition, and spend the money on beauty.”
Yet, the economy of beauty that we need transcends and includes the artful beauty of which he speaks. It is a culture of thriving community of people inspired by, evolving and learning from others and from and beauty that surrounds them.
How do we recognize and create such a vibrant community as the foundation of a successful economic paradigm?
Such a community has “deep connectivity” between participants. In a private paper, leading thinker Jon Ramer wrote that some of the citizens in a society of deep connectivity are “committed to produce something in their lives and the lives of others.” And, that such a society “is for building relationships, producing meaningful results, learning and growing together via a principled-approach to personal and community development.”
An economic system that encourages such “deep connectivity” is based on what I would call the currency of relationships. A perfect example of is the deeply successful Mondragon Cooperative movement, a community based economic system successfully operating the Basque region of Spain. It started during the Great Depression in the 1930s and thrived amid the oppressive Franco dictatorship. Mondragon succeeded in such a fascist context “by avoiding confrontation, not by being passively servile but by doing what was for the good of all.”
Author Thomas Greco made an important point that the success of Mondragon experience is replicable, but only in conjunction with the simultaneous weaving of a strong social fabric. That effort need not necessarily be centered around ethnic identity and culture, but could based on other common factors between the participants – such as religious affiliation, geographical proximity, shared values, or other factors that create common interests (but with concern for the greater common good always foremost.)
It is precisely this inherent characteristic of wishing to be part of something greater than ourselves that has given humans a sense of meaning since time immemorial. This heroic sense of contribution and sharing for the common good is a key principal of success.
Consider: has there ever been a time in history when this kind of collective heroism is more important than now, when the stakes are as high as they can get?
Mondragon scholar, Terry Mollner makes a distinction between the declining ‘material age’ and the emerging ‘relationship age,’ and concludes that the [Mondragon founders] ‘set about building a Relationship Age society by extending into more sophisticated realms the Relationship Age values which were already present In Basque Society.’
Along the same lines, Roddick concludes “We will succeed to the extent to which we encourage human connection and conversation. We will succeed also to the extent to which we spend the small change of imagination – the human stories about people and places and what they aspire to do.
Although it has been said before – we are at a critical juncture where our global circumstances require each of us to embrace that responsibility in every relationship we have. We share the responsibility to manifest the “Relationship Age” right where we are. A Relationship Age where artful living in deep connectivity is the evolutionary catalyst to shift our current economic operating system into a creation of shared wellbeing for our lives here on spaceship Earth.
Right before I boarded a plane recently, I noticed a Body Shop in the terminal next to the gate. The Body Shop has been a leading business that incorporates social and environmental values into its operations. It was founded by the late Anita Roddick, one of the emergent leaders in the expanding and evolving “green” business movement.
Roddick was a very influential and inspiring thought leader, she stood as a pillar of the socially and environmentally responsible business movement. As I thumbed through my reading materials I found an article in Resurgence Magazine by Roddick entitled “The Currency of Imagination.” This eloquent article laid out some of her guiding principles and reflections on being one of the only CEOs (if not the only CEO) in the crowd of human beings who raised their voices against the globalization paradigm represented by the 1999 WTO meeting in Seattle.
In the article she laid out a new vision for society, a vision which I share, where we place community and beauty as driving values for our individual and institutional decision making. I have learned that for any successful endeavor in new economic thinking to work, it must be built on a culture of trust and collaboration amongst the participants. Such ideas have inspired me in the efforts I have made in my region in co-founding Green Business Networking, a monthly networking event which brings together entrepreneurs and professionals who are committed to greening our economy through their businesses.
Somewhere along the line we picked up a virus in our culture’s source code. This virus misguided us by placing money and power as the central measuring sticks for success, all fed by a rapacious economic operating system driven by the gospel of consumerism. Our economy has become devoid of beauty and community, transactions have become ”complex, opaque, anonymous based on short term outcomes” according to Don Shaffer, President of RSF Social Finance, and our transactions need to become “direct, transparent and personal based on long term relationships.” On a similar theme, Judy Wicks, founder of the White Dog Café, who is also a co-founder of the very successful movement “Business Alliance For Local Living Economies” lives these principals. She says that her business was built on the principal of “maximizing relationships” rather than “maximizing profits.” As a result of her focus, her business thrived with the satisfaction of higher sales, and happier people.
In the wake of the recent financial crisis, and the significant ills facing our world, it has become clear to many people that the prevailing economic paradigm is no longer working to improve the well being of humanity. With climate crisis, declining ecosystems, billions, food riots, childhood diabetes, etc. individuals and institutions are experiencing the severe ramifications of an avaricious and predatory economic model. However, there is another way.
I spend a fair amount of energy inquiring into the nature of the latent economic opportunity of which Roddick spoke–that which incorporates beauty and community into the economic equation. I am also keen on discerning the most effective and coherent actions necessary to transmute our current economy of waste into an economy of thriving abundance, conservation and renewal for 100 percent of humanity. Our economic paradigm utilizes debt manipulation and consumerism as a short-sighted means to an unforeseen dead end and endless gluttony for few at the top of the heap.
Roddick said:
Consumerism doesn’t care if we buy in beautiful or ugly surroundings. Few aspects of the global economy provide beauty or community and, worse, in many ways it drives them out by deliberate manipulation of debt, which is as as powerful motivator as invented in human history. On the other hand, providing for these vital needs requires another kind of economy altogether, which emphasizes beauty, community and creativity.
Sadly, and with far reaching consequences, our current economy has failed to value such manifestations of “beauty, community and creativity. She pointed out that the economist John Maynard Keynes “talked about the hideous waste of economic system that could not recognize art or beauty…. In a speech to the Irish government in 1933, he urged politicians and economists to raise their ambition, and spend the money on beauty.”
Yet, the economy of beauty that we need transcends and includes the artful beauty of which he speaks. It is a culture of thriving community of people inspired by, evolving and learning from others and from and beauty that surrounds them.
How do we recognize and create such a vibrant community as the foundation of a successful economic paradigm?
Such a community has “deep connectivity” between participants. In a private paper, leading thinker Jon Ramer wrote that some of the citizens in a society of deep connectivity are “committed to produce something in their lives and the lives of others.” And, that such a society “is for building relationships, producing meaningful results, learning and growing together via a principled-approach to personal and community development.”
An economic system that encourages such “deep connectivity” is based on what I would call the currency of relationships. A perfect example of is the deeply successful Mondragon Cooperative movement, a community based economic system successfully operating the Basque region of Spain. It started during the Great Depression in the 1930s and thrived amid the oppressive Franco dictatorship. Mondragon succeeded in such a fascist context “by avoiding confrontation, not by being passively servile but by doing what was for the good of all.”
Author Thomas Greco made an important point that the success of Mondragon experience is replicable, but only in conjunction with the simultaneous weaving of a strong social fabric. That effort need not necessarily be centered around ethnic identity and culture, but could based on other common factors between the participants – such as religious affiliation, geographical proximity, shared values, or other factors that create common interests (but with concern for the greater common good always foremost.)
It is precisely this inherent characteristic of wishing to be part of something greater than ourselves that has given humans a sense of meaning since time immemorial. This heroic sense of contribution and sharing for the common good is a key principal of success.
Consider: has there ever been a time in history when this kind of collective heroism is more important than now, when the stakes are as high as they can get?
Mondragon scholar, Terry Mollner makes a distinction between the declining ‘material age’ and the emerging ‘relationship age,’ and concludes that the [Mondragon founders] ‘set about building a Relationship Age society by extending into more sophisticated realms the Relationship Age values which were already present In Basque Society.’
Along the same lines, Roddick concludes “We will succeed to the extent to which we encourage human connection and conversation. We will succeed also to the extent to which we spend the small change of imagination – the human stories about people and places and what they aspire to do.
Although it has been said before – we are at a critical juncture where our global circumstances require each of us to embrace that responsibility in every relationship we have. We share the responsibility to manifest the “Relationship Age” right where we are. A Relationship Age where artful living in deep connectivity is the evolutionary catalyst to shift our current economic operating system into a creation of shared wellbeing for our lives here on spaceship Earth.
Sunday, December 13, 2009
An article on Local Currency quoting me from Whole Life Times Magazine
Following is an article which quotes me about my efforts to create a local currency for the Greater LA area.
Originally published in Whole Life Times:
One way of keeping money in the community is to create an alternative system of currency
In 1932, while the world struggled through the Great Depression, a small Austrian town tried an economic experiment. To stimulate the local economy, leadership in Wörgl created its own local currency, or scrip, known in German as freigeld (literally, free money).
Based on the thinking of Silvio Gesell, an early 20th-century social activist and economist, the new currency was novel in that it depreciated monthly, which increased the pace of its circulation. Rapid currency circulation goosed the economy, putting residents back to work. Advocates of local alternative currency systems explain that what’s really happening with this sort of currency “velocity” is real reinvestment in the local community.
The “Miracle of Wörgl” seemed to be serving that community well and was interchangeable with official state currency, but the Austrian National Bank, concerned over a perceived threat to its money-printing monopoly, shut down the experiment after just 13 months.
Nearly 80 years later, as economic malaise lingers throughout the United States, the Wörgl saga is inspiring local currency supporters seeking to unlock underutilized resources that might mitigate financial tsunami cycles and create a more independent economic model.
Complementary Currencies
The first question might be, is that legal? It is. Creating and using a local currency—sometimes called complementary currency, in that it “complements,” but doesn’t replace, a national currency—will not unleash the dogs of the U.S. Treasury, as long as it isn’t coin and doesn’t look like U.S. currency. Well before the Wörgl experiment, local currencies were common, and there are hundreds of more recent examples, from Canada’s Vancouver Island to San Luis Obispo, Calif., and Totnes, U.K. In a less formal way, barters take place all the time, albeit not transferable via a common coin of the realm.
In 1991 a group in Ithaca, New York, created a currency, the Ithaca Hour, to promote local economic independence and community reliance. Its name was intended to convey the idea that currency is both a means of exchange and a representation of someone’s time spent laboring. At that time, $10 was the average hourly wage in the county, so an Hour was worth $10 U.S. With more than 100,000 bills circulating, Ithaca Hours continue offering an alternative medium of exchange used by 900 businesses and health care providers.
In the Massachusetts Berkshires, another local currency project took off in 2006 with the support of the E. F. Schumacher Society, a kind of alternative economic think tank. Named for a British economist who advocated decentralization, the society studies how local currencies work. More than 2.5 million BerkShares have been issued, with about 150,000 now circulating. Accepted at 385 area businesses, BerkShares are colorfully illustrated with historic Berkshire figures and other artwork by regional artists, further emphasizing localness. Offered through 13 branches of five local banks, 100 BerkShares are equivalent to $100 U.S., but can be purchased with $95 U.S. Thus, users receive a 5 percent discount at local businesses that accept the currency.
The alternative Massachusetts currency has received more attention from communities nationwide since the current economic downturn, according to Sarah Hearn of BerkShares. “Increasingly, communities are looking to find citizen-based solutions to economic instability, and rightly identify local currencies, like BerkShares, as elegant tools for growing more sustainable local economies,” notes Hearn.
Commitment to keeping dollars local may be enough of a driver to create a community currency. Even small shifts in market share to local businesses can create economic activity and employment gains, studies have shown. One analysis found buying from local merchants rather than chain businesses results in three times as much money staying in the community.
In nearby Ojai a working group has been established to brainstorm ways to increase area economic opportunities, and potentially create a local currency. Further north, the college town of Davis also is studying developing an alternative currency, Davis Dollars, and Eureka trades Humboldt Community Currency (CC). The Humboldt Community Currency Exchange Project suggests that participating goods and services providers accept payment half in CC and half in U.S. currency. One Humboldt CC equals one U.S. dollar.
Sustaining Planet and Economy
Here in Los Angeles, the Green Business Networking group, formed in 2005 when a small group of local business leaders began meeting informally to discuss ways of working together to advance sustainability and wellness ideas and businesses, is exploring the feasibility of a complementary currency for the greater L.A. region.
“I’m motivated to work with money and business exchange to drive sustainability,” explains cofounder and certified financial planner Gregory Wendt, who is also director of sustainable investing for Enright Premier Wealth Advisors, Inc., an established registered investment advisory firm based in Southern California. “We need to change the way we work with money.”
Still in very early discussion stages with interested regional businesses and individuals for a process that might take two to three years, Wendt envisions a regional currency that would find its initial footing in the green business community. While it’s too early to know how the currency would be backed or how actual mechanics might function, Wendt anticipates the currency taking shape through evolving discussions and a series of community gatherings that identify and address issues.
Hollis Doherty, a student of the Wörgl experiment, shares Wendt’s enthusiasm for establishing a local currency. After stumbling across the Austrian story, Doherty was “galvanized about the idea of creating a local currency,” so much so that the L.A. resident traveled to Austria and the Unterguggenberger Institute. Named for the Wörgl mayor who implemented the 1932 currency plan for his town, the think tank promotes the idea of alternative mechanisms for exchange.
Now an associate with the Unterguggen-berger Institute, Doherty finds the idea of new thought for how money is viewed to be a transformative topic, with the potential for huge social impact.
“My focus is on a currency that includes more people in the economy, one that is more abundant for more people, and favors exchange over hoarding by the few,” Doherty says. “The Institute would say there is no perfect system, but they do say it’s healthier if more than one medium of exchange is available.”
Hopefully an alternative currency would help to buffer Los Angeles in the event of a future economic downturn, regardless of what happens in Sacramento or Washington, D.C.
“It will be a very regional effort that promotes a thriving economy for the L.A. region, driven by locally owned businesses and local farms committed to sustainable business practices,” says Wendt. “What’s most important is that this be a catalyst for change.”
- By L.A. writer Maria Fotopoulos for the Whole Life Times Magazine
Monday, November 02, 2009
Orland Bishop - Oneness Is Abundance
One very inspiring LA Activist who I met in the Economics of Peace Conference in Sonoma is Orland Bishop.
There is a video of him sharing some of his views on The Global Oneness Project which states "L.A.-based community activist Orland Bishop explains how the American economic system that assigns value to competition and scarcity of resources undermines oneness, which is inherently relational and abundant. Although the capitalist system as a whole resists investing in human development, people can create new systems that reinforce each individual's value instead of encouraging struggle and competition by making alternative agreements based on collective inspiration."
There is a video of him sharing some of his views on The Global Oneness Project which states "L.A.-based community activist Orland Bishop explains how the American economic system that assigns value to competition and scarcity of resources undermines oneness, which is inherently relational and abundant. Although the capitalist system as a whole resists investing in human development, people can create new systems that reinforce each individual's value instead of encouraging struggle and competition by making alternative agreements based on collective inspiration."
Tuesday, September 22, 2009
A recap of Social Capital Markets Conference 2009
I attended the Social Capital Markets Conference a few weeks ago and wrote an article which originally appeared on Mother News Network
Here's the the text of the blog = go to the original on MNN to get the links and the video.
I attended the second Social Capital Markets conference last week in San Francisco, a sold-out conference of the leading minds in evolving our use and investing of capital to heal, and evolve the manner in which we live on the planet. To quote the SOCAP organizers:
Our financial system has been rocked to its core. Belief in profit-driven motives as the sole metrics of performance has been fundamentally shaken. Our perceptions of risk have been forever altered. And our economy is shifting toward a new foundation.
What is that “new foundation” of which they speak?
Traditionally, investments are made with one, and only one, measure in mind -- how much money does the investment return? With the advent of what is now called “social capital” other factors have been introduced into the equation.
Woody Tasch, leading thinker in this movement, states in his recent book Inquiries Into the Nature of Slow Money had this to say:
Socially responsible investing, mission-related and program-related investing by foundations, venture philanthropy, social entrepreneurship, local economies, consumer demand for organics and green products – these are the first stages of a more profound fiduciary realignment. Some of these initiatives remain incremental and ambiguity laden. Others are indicators of more fundamental, tectonic shifts along the boundaries of for-profit and nonprofit, shareholder and stakeholder, global investor and local citizen.
Woody states it clearly. Yet the issue remains -- how do you MEASURE the progress in all of the non-financial dimensions? From the “sole metrics of performance” to something more inclusive of the factors essential to well-being?
For example, one of the key methods that we gauge the success of our economic activity is through the measures GNP and GDP. But to meet the Earth’s challenges, these outmoded ways of measuring the “product” of our economy have to be reexamined. They are out of touch with our finite supply of natural resources (or natural capital) upon which our economic growth depends.
One of the key challenges of such indices is they can not be considered sustainable because they do not account for depletion of either human or natural capital. Consider statement of the late Robert Kennedy on what GNP does not measure:
The Gross National Product includes air pollution and advertising for cigarettes, and ambulances to clear out highways of carnage. It counts special locks for our doors, and jails for people who break them. GNP includes the destruction of the redwoods and the death of Lake Superior. It grows with the production of napalm and nuclear warheads ... and if GNP includes all this, there is much that it does not comprehend.
One of the key aims in the “social” capital space is to define new measures, new metrics to determine the “non-financial” impact of any economic activity or any investment. Here's a video of SOCAP founder Kevin Jones explaining more about social capital markets:
I learned of one such effort at the SOCAP Conference which is a collaboration between Acumen Fund, B Lab and Rockefeller Foundation which created measurement tools that for the first time provided performance indicators for measuring an investment’s social and environmental impact, called IRIS (Impact Reporting and Investment Standards).
In the last few years, a proliferation of investment dollars has been allocated to funds and enterprises seeking to generate social and/or environmental impact as well as a financial return. The sector has grown to over $50B in total assets and the pace of new investment grew by an average of over 35 percent over the past five years until the middle of 2008.
Close to 150 organizations are providing approximately $4 billion in capital and services to small and growing businesses in developing countries. And areas like clean tech and socially responsible investing have seen double-digit growth year-over year, despite challenging economic conditions. Within the next 10 years, impact investing has the potential to grow to about 1 percent of total managed assets, which would result in about $500 billion of capital channeled toward social and environmental impact.
In addition to creating standardized ways of measuring impact, the collaboration has also generated software tools and data gathering collaborations amongst a wide range of impact driven investment groups.
This effort has created a framework for measuring social and environmental performance based on a set of common indicators and definitions which can be applied in many contexts, beyond investing and money.
It is efforts like these which are the building blocks that are fundamental in recalibrating the thinking of the actors in our economy. In order to develop a new economic paradigm, we have to know where we are, and where we are going, and to be able to communicate and measure this. By incorporating new thinking into civilization’s economic activity, true costs, benefits it will become much more obvious what needs to be done to steer our system toward well being and sustainability for all of our Earth’s inhabitants.
Here's the the text of the blog = go to the original on MNN to get the links and the video.
I attended the second Social Capital Markets conference last week in San Francisco, a sold-out conference of the leading minds in evolving our use and investing of capital to heal, and evolve the manner in which we live on the planet. To quote the SOCAP organizers:
Our financial system has been rocked to its core. Belief in profit-driven motives as the sole metrics of performance has been fundamentally shaken. Our perceptions of risk have been forever altered. And our economy is shifting toward a new foundation.
What is that “new foundation” of which they speak?
Traditionally, investments are made with one, and only one, measure in mind -- how much money does the investment return? With the advent of what is now called “social capital” other factors have been introduced into the equation.
Woody Tasch, leading thinker in this movement, states in his recent book Inquiries Into the Nature of Slow Money had this to say:
Socially responsible investing, mission-related and program-related investing by foundations, venture philanthropy, social entrepreneurship, local economies, consumer demand for organics and green products – these are the first stages of a more profound fiduciary realignment. Some of these initiatives remain incremental and ambiguity laden. Others are indicators of more fundamental, tectonic shifts along the boundaries of for-profit and nonprofit, shareholder and stakeholder, global investor and local citizen.
Woody states it clearly. Yet the issue remains -- how do you MEASURE the progress in all of the non-financial dimensions? From the “sole metrics of performance” to something more inclusive of the factors essential to well-being?
For example, one of the key methods that we gauge the success of our economic activity is through the measures GNP and GDP. But to meet the Earth’s challenges, these outmoded ways of measuring the “product” of our economy have to be reexamined. They are out of touch with our finite supply of natural resources (or natural capital) upon which our economic growth depends.
One of the key challenges of such indices is they can not be considered sustainable because they do not account for depletion of either human or natural capital. Consider statement of the late Robert Kennedy on what GNP does not measure:
The Gross National Product includes air pollution and advertising for cigarettes, and ambulances to clear out highways of carnage. It counts special locks for our doors, and jails for people who break them. GNP includes the destruction of the redwoods and the death of Lake Superior. It grows with the production of napalm and nuclear warheads ... and if GNP includes all this, there is much that it does not comprehend.
One of the key aims in the “social” capital space is to define new measures, new metrics to determine the “non-financial” impact of any economic activity or any investment. Here's a video of SOCAP founder Kevin Jones explaining more about social capital markets:
I learned of one such effort at the SOCAP Conference which is a collaboration between Acumen Fund, B Lab and Rockefeller Foundation which created measurement tools that for the first time provided performance indicators for measuring an investment’s social and environmental impact, called IRIS (Impact Reporting and Investment Standards).
In the last few years, a proliferation of investment dollars has been allocated to funds and enterprises seeking to generate social and/or environmental impact as well as a financial return. The sector has grown to over $50B in total assets and the pace of new investment grew by an average of over 35 percent over the past five years until the middle of 2008.
Close to 150 organizations are providing approximately $4 billion in capital and services to small and growing businesses in developing countries. And areas like clean tech and socially responsible investing have seen double-digit growth year-over year, despite challenging economic conditions. Within the next 10 years, impact investing has the potential to grow to about 1 percent of total managed assets, which would result in about $500 billion of capital channeled toward social and environmental impact.
In addition to creating standardized ways of measuring impact, the collaboration has also generated software tools and data gathering collaborations amongst a wide range of impact driven investment groups.
This effort has created a framework for measuring social and environmental performance based on a set of common indicators and definitions which can be applied in many contexts, beyond investing and money.
It is efforts like these which are the building blocks that are fundamental in recalibrating the thinking of the actors in our economy. In order to develop a new economic paradigm, we have to know where we are, and where we are going, and to be able to communicate and measure this. By incorporating new thinking into civilization’s economic activity, true costs, benefits it will become much more obvious what needs to be done to steer our system toward well being and sustainability for all of our Earth’s inhabitants.
Thursday, August 27, 2009
Failure of the green movement - and an opportunity...
Last night I had drinks with a very successful NY Investment Banker who is a vegan, a philosopher, and has a rather liberal point of view. Ironically, he is an analyst and expert in the field of the fossil fuel industry. We discussed much about our common concerns, interests, etc. And our interest in meeting with and learning from every viewpoint, and world view. He shared with me that some of his clients actually believe that the world is less than 5,000 years old, even though such clients deal in a commodities (oil and gas) which they understand must take more than 5,000 years to create.
We agreed that it would be easy to write such people off, yet there are many many mindsets on the planet which are very, very different worldviews.
Surprisingly - it appears that the environmental movement has not entirely gotten that over the last few decades.
After thinking about this for the last day, I told a friend over dinner tonight that I believe that the environmental movement has failed to effectively "pierce the veil" of the worldview of mainstream culture. Earlier he and I met with a long time, very successful activist who's organizations materials explained that the group had reached over 2 million people over the years. Granted - that is a very successful effort. Yet considering we have 6 Billion people on the planet, his group has just scratched the surface.
Jurian Kaamp, editor in Chief of Ode Magazine wrote an article this spring which points to a key issue - we're not speaking the language of the masses.
He wrote about that we need to communicate with all different types of value systems and cultures around the globe in very different ways. He also shares that Ken Wilber's integral world view is an excellent roadmap for success:
He writes:
It's another version of the age-old adage - put yourself in another's shoes. Yet in order to be effective in sharing the urgency of the world situation, we must enter the mindset of others in order to reach them.
As mystics and shamans have said for generations - order to wake someone out of their dream, you have to enter into it first, join them and gently guide them to wake up to a new reality.
We agreed that it would be easy to write such people off, yet there are many many mindsets on the planet which are very, very different worldviews.
Surprisingly - it appears that the environmental movement has not entirely gotten that over the last few decades.
After thinking about this for the last day, I told a friend over dinner tonight that I believe that the environmental movement has failed to effectively "pierce the veil" of the worldview of mainstream culture. Earlier he and I met with a long time, very successful activist who's organizations materials explained that the group had reached over 2 million people over the years. Granted - that is a very successful effort. Yet considering we have 6 Billion people on the planet, his group has just scratched the surface.
Jurian Kaamp, editor in Chief of Ode Magazine wrote an article this spring which points to a key issue - we're not speaking the language of the masses.
He wrote about that we need to communicate with all different types of value systems and cultures around the globe in very different ways. He also shares that Ken Wilber's integral world view is an excellent roadmap for success:
He writes:
Take global warming, which Wilber describes as “the first issue that affects everybody everywhere on the planet. [Former U.S. Vice-President] Al Gore is saying that the entire world needs to change its behavior. But he says so in a language that is perhaps understood by 20 percent of the world population. Gore assumes that people will respond from rational self-interest based on sound science, but that’s the least of the motivations of the majority of the population of the planet.”
Other cultures, Wilber argues, may respond to the threat of global warming from different values. African cultures are dominated by feudal clans, he says, so they may adopt environmental and energy policies when these are phrased in a language that relates to how they may benefit their clans. Similarly, Hindus may change their behavior to honor Gaia rather than in response to rational self-interest. “Al Gore has to ‘language’ his message in at least four different value structures to get, say, 80 percent of the world behind him,” Wilber says. “Anything less than that will simply not work.”
According to Wilber, politics, too, could benefit from an integral approach. Take the classic conflict between conservatives and liberals over welfare. Liberals argue that people are poor because of lack of government support; conservatives argue that people are poor because of lack of family values and work ethic. In Wilber’s vision, both are right. It isn’t “either/or” but “both/and.” His ideal government approach: “‘We will do everything to help you but at the same time we want you to do everything to help yourselves.’ We need to find the way to reach out to touch all dimensions, interior capacity and external capacity. We need to recognize where you can help yourselves and where you need help.”
It's another version of the age-old adage - put yourself in another's shoes. Yet in order to be effective in sharing the urgency of the world situation, we must enter the mindset of others in order to reach them.
As mystics and shamans have said for generations - order to wake someone out of their dream, you have to enter into it first, join them and gently guide them to wake up to a new reality.
Tuesday, August 11, 2009
Saturday, August 08, 2009
Local Economy, Local Currency and the Local Multiplier Effect


Yes Magazine just published some articles on Local Currency and the benefits they have for local and regional economies...the article states:
Local currencies can help a community counter some of the problems with conventional money. For example, bank-issued currency tends to flow toward the money centers for investment. If you shop at a chain store, the profit gets whisked out of town and into the corporate coffers and then, often, to the speculative market. A local currency stays in the community, encouraging local business and trade, adding value to local products and services, and supporting the local infrastructure.
Reliance on national currency means being at the mercy of the national credit situation. As we’ve recently seen, credit constriction can paralyze local economies. Despite the availability of goods and the need for business, when there’s no money, consumers don’t buy. Stores don’t sell. Start-ups can’t get a toe-hold. An alternative currency gives people another way to buy, sell, lend, and borrow. If the community creates its own currency, local business can go on even if the supply of national currency dries up.
At the most basic level, currency functions as a means of exchange (I give you a dollar and you give me an ice cream cone), a unit of value (a dollar, pound, etc.) and a store of value (you can hold onto a dollar as it maintains its worth). It’s also a source of information about relative value, and about what is needed to keep trade flowing, for instance, by adjusting the supply of money or the exchange rate so that those in other markets can afford your goods.
With local currency, a community can meet currency needs that the national tender isn’t fulfilling. If the idea seems fanciful, there are models up and running—some for many years.
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