Where the magic money tree grows

So I was looking for home and love. Home keeps reconceptualising itself; love was ever thus. And now I am looking for my role in the revolution and my place in the new order. By this I mean the campaign against feudalism and the growth of something that somehow marries the best of socialism, capitalism and anarchism.

Maybe one day I’ll buy a little land, but something stops me now: not only limited choice, and not knowing where I want to settle and invest, but also concern that land ownership is such a problematic part of the old order. When one person owns, no other can be an equal on that territory, is my experience – no matter how careful, generous and skilful the parties, it seems.

I’ve been inspired by the words of a woodsman fellow weaver who made the below short film. Self-proclaimed ‘nettle nerd’ Allan Brown considers his nettle textiles a symbolic act of resistance, since wildgrowing nettles are the ‘fibre of the landless’. 

 

Because sheep farming is tied up with land ownership, reduced bio-diversity and the meat industry, ultimately I wonder whether I should move away from wool – even the local, undyed, vegetable dyed and/or handspun wool that I prize and can ill-afford – and towards a more sustainable fibre source such as an abundant wild British plant.

At Seed eco-conference I met not only virtual friend, drop spinner and weaver Imogen Di Sapia, but also a Saori weaver, Erna Janine, freely weaving chaos principle. I have another friend, Richard Toogood, currently staying in a Neolithic reconstruction village and rough hewing his own primitive looms. Together with Allan we are cooking up ideas for a ‘Green Cloth Collective’: a Green Cloth Camp; a Green Cloth Fair; a Green Cloth Co-operative. How to make local labour viable in a globalised neoliberal world? Meantime I have some nettle yarn from Nepal out of which I’m planning a poncho. Despite that the Nepalese yarn cost me about twenty times less than if I’d spun it myself, the garment will still be pricey, alas, because of the cost of my labour at even about half the UK minimum wage. Perennial problem for craftspeople: I hate that the many cannot afford my goods. I wonder if a different world economics could alter this.

The money question. At times it’s been a relief to leave complicated barter arrangements aside and resort to the supposedly neutral tool that is currency. Like many, I have a long-held suspicion of money, but in moments like those, see its true value as a tool. I’ve never understood money markets, nor, till recently, been interested in economics at all, though now have become fascinated with the both, together and separately. Here’s why.

Contrary to what the dominant neoliberal culture would have us believe, there *is* a magic money tree, but it’s currently in the wrong hands. Money can be a common good, but the way we currently create it is not in the interests of the common good: money creation as debt forms a locking mechanism that keeps us hellbent on the impossibility of infinite growth: boom, bust, guzzle, crash. Humankind is great, but we let our shadow run the show. And the essence of our modern economic model inclines us to act more exploitatively than most of us would naturally act. *This is how it works (it’s a simplification, and it’s dry, but it’s important, so I invite you to read carefully and share widely – and of course feel free to contest).

Some fundamentals:

Firstly, apart from the tiny proportion of money that is represented by coins and notes, money is not a *thing*: money is a token, an agreement between parties, a currency that serves as a tool to be used to aid the fair exchange of actual things.

Next, a brief look at the monetary cost of *things*, that is, of goods and services:

Raw materials do not cost us money, because we do not pay money to the earth herself for the minerals and other raw materials that we extract. What we pay in money for raw materials is for the labour required to extract and process them. So the financial cost of every product or service is mostly constituted by the cost of labour, including what I will call ‘embodied labour’.

In our current monetary system, over and above the cost of labour and embodied labour, which represent the true monetary value of a thing, there’s an additional cost. On average in each monetary transaction, there is one winner and one loser, financially speaking: in order to keep afloat, the vendor must charge more for his product than the product is technically worth in terms of labour. This is because he has to pay not only the cost of labour input, but also the cost of money.

So now to explain the cost of money:

Only 3% of all money in circulation has been created by governments. The other 97% of money is debt that has been created by corporate banks who have special governmental permission to manufacture money for the purposes of lending. When a loan is agreed, the lender simply writes the money into being in their electronic ledger as they transfer it into your bank account. That’s right: they create it from thin air, as confirmed here by the Bank of England. The magic money tree is currently operated by corporate banks who commodify money, hiring it out as if it were a thing.

The borrower does not just pay a hire fee or service charge, but an exponentially growing rate according to volume and timescale: interest. As the borrower repays the loan, the money loaned is written off again by the lender: it ceases to exist. Meantime the lender has extracted surplus, in the form of interest, which far exceeds the labour costs of lending the money, and which constitutes profits for the bank’s shareholders. (Who holds the most shares and thus gains the most income from this? The richest few at the top of the pyramid.)

And back to the transaction of goods and services:

This ‘surplus’ is the additional cost that a vendor has to cover in each transaction in order to service his borrowing. Hence the consumer pays a price that is more than the true value of the actual good/service.

These individual transactions aggregate to constitute the wider economy. Because of the the moneylenders’ interest hoover, vendors charge more than the actual value of their goods and services in order to cover debt, and consumers are out of pocket. The dynamic is mathematically imbalanced: prices are higher than wages/salaries, and so wages/salaries can never cover the consumption of all the goods and services produced. This means that some vendors will make heavy losses, even while consumers everywhere borrow more and more to afford less and less. The result is an impossible quest for infinite growth: basically productivity booms as we chase the shortfall, and busts when we fail to make it. The failure is inbuilt, never-ending and relatively predictable. (So if you’ve a shrewd eye and a purse for gambling…)

Consider the human and environmental cost of all this. Most of us have our backs against the wall for at least some of the time, or are at risk of it, and fear or memory of this discomfort or strife compels us to earn harder to try and alleviate the impact of the next squeeze. Depending on our place in the hierarchy of the economic pyramid, we are either stuck on survival, running just to stand still, or, if we’re lucky/ruthless, climbing at great expense. (Perhaps even those at the very top feel they struggle financially to maintain their castles, yachts, grouse moors, oilfields.) It is hard for anyone not to feel poverty conscious. When do we have the leisure to consider the sustainability of the system, the sustainability of our households, the sustainability of our relationships, and the sustainability of our impact on the natural world?

Being debt-free as an individual does not aid the debt-based economy, since 97% of the population will necessarily be in debt (as per the current percentage of money that is debt). Keeping consumerism down does not aid the debt-based economy either: with insufficient custom, our businesses fail, and our families suffer. A debt-based economy requires consumption to be maintained at a certain level – a level that our planet cannot sustain.

Something has to change.

We reject hunting and gathering, by our land ownership, agriculture and desertification. We reject self-sufficiency, for it does not allow for specialisation. We reject communism, for it reduces us to the lowest common denominator. We contest capitalism, but even without land or property ownership, we all have capital on which to capitalise, be it time, energy, or competency. We had democratic socialism, where the welfare state looked after those in need and business gave opportunity to some. We now have neoliberalism, a barely-regulated capitalism in which voracious big business dismantles the state, looking after fewer and fewer and giving real opportunity to fewer and fewer. We rejected feudalism, but it has emerged in another guise.

Said Indian ecologist Satish Kumar of Schumacher College some years ago: ’It’s not poverty that’s the problem, but wealth.’

So what can we do about it? A pivotal measure could be the nationalisation of money creation: it could remove the locking mechanism that keeps us in wealth-hoovering, planet-devouring chains.

When things get sticky, our governments shake the magic money tree themselves and, in partnership with the central bank, perform Quantitative Easing. In other words, they print money. They can do this in any number of ways – they don’t necessarily literally print banknotes, but may create digital money to invest in particular ways with the aim of stimulating growth in a certain sector, banking on positive knock-on effects for the wider economy. It doesn’t always work, and depending on the way QE is deployed, sometimes it serves only to create yet another trickle-up mechanism to boost the already rich. But the point is this: that *governments*, the folk we elect to work for the common good, can get involved in money creation.

So what if a government took the powers of money creation largely into their own hands? President Lincoln did this successfully with ‘Greenbacks’ before he was assassinated; JFK apparently was moving in a similar direction, and other isolated economies may have done and be doing this around the world.

positivemoney.org proposes such a sovereign money system in which a friendly government works in partnership with a committee at the national bank who are independent of the governing party for the sake of neutrality. A sovereign money system would not be gameable in the way that money creation as debt is currently gameable, and should thus eliminate and/or dilute the mechanisms by which wealth is currently hoovered upwards and concentrated in the hands of a few. Sovereign money could begin to create a stable economy in which costs, wages and prices all matched. Just imagine what we’d then all be freed up to achieve if we weren’t hellbent on the myth of growth.

–:o:–

And meantime what can we as individuals do to resist, prepare and act otherwise? Here are a few suggestions.

• Visit the Positive Money website and read Bank of England literature for technical details – the more of us know what we’re talking about, the better
• Join your local Positive Money group and campaign for monetary reform
• Check out the New Economics Foundation
• Consider your own business model (bottom up? collectivist? co-operative?)
• Read Marx, Raworth, Reich, Roebottom, Monbiot and Noakes, or just interrogate bankers, economists and Positive Money folk, as I do
• Watch Bruce Parry
• Think collective, collaborative, co-operative and municipalist 
• Study the economics of differently-organised countries and communities
• Support local and regional banking initiatives, including credit unions and building societies, or otherwise Triodos Bank
• Boycott
• Barter
• Share
• Discuss
• Contest
• Write letters
• Vote wisely
• Ask questions
• Gain insight
• Consider the overview
• Think in systems
• Crowd fund
• Crowd source
• Guerilla garden
• Rewild
• Recycle
• Reinvent
• Repurpose
• Upcycle
• Be vigilant
• Dream differently
• Plan carefully
• Create alternatives
• Support each other
• Remember Camus: ‘The only way to be free in an unfree world is to make your very existence an act of rebellion’

 

 

• [Please add to this list in the comments below]

 

*With special thanks to Chris Noakes for guiding my study of monetary reform.

When you take off into the sunset: community and nomadry

When I first drove off into the sunset, as well as for the adventure, it was to leave behind various defeats, frustrations and feelings of claustrophobia. Fleeing a factory farm education sector, an overcrowded steading and a hippy-progressive enlightenment competition, I was heading to the hills in no uncertain manner, seeking the quietest, wildest, remotest places that I could live in awhile alone. The Outer Hebrides offered what I sorely needed. Yes, of course I was lonely before long, but the real paradox is this: though I found nurture in the spaces with the fewest humans, as soon as I’d touched base on the furthest western shore I was ready to delve back into the peopled pockets. To get to know the islands I had to get to know the people. (Not to mention the old getting to know yourself wotsit.)

Whilst ‘community’ had been just about top of my list of loathed ‘c’ words, straight away I was making connections that made me want to belong: to the Glaswegian/Leoisach selkie family swimming in from St. Kilda; to the Friday folk group in the old people’s home; to the monthly singaround sharing songs and stories and foul-mouthed craic; to the trad session run by young beauties in the arts centre; to the trail of daily dogwalkers in the Stornoway castle grounds; to the Harris Tweed weaving tradition in the mills and crofts and sheds; to the fishing villages who’d lost so many to the sea; to the community of ordinary folk doing ordinary jobs in shops and garages and offices, who said that I should stay; to the caravan of international surfers who’d found the lesser known breaks, who shared their beer and mackerel; and to the community of motorhomers who considered me a fellow motorhomer.

All this too in Brittany and Ireland: lonely timidity of a newbie with all the awe and wonder of an anthropologist child explorer. An adventure in every little exchange, and a welcome around every corner. (Where there wasn’t a shotgun, an agenda or a bad temper, that is. In those darker corners, the one or two newly-made, friendly contacts are lifesavers.)

Back in Devon for a pit-stop when the election is called, and it is a moment to plug in again here too: the local political landscape has been changing after a hundred years of the same old same old yellows being the only challengers to the blues. Green leaders Bennett and then Lucas came down here to promote progressive alliance, but it hasn’t got off the ground. Do the reds have a chance? I don’t know how to vote to best promote Corbyn/social and environmental sustainability, so I conduct some research in the local Facebook community, whipping up a stormy tactical voting debate and pissing off the local left parties who fear losing out to a voter alliance. Despite the fact that Totnes and Dartington make an ultra-progressive island in the Westcountry’s dominant conservatism of rural wealth, disappointingly the local left parties have resigned themselves to yet another Tory win, which duly occurs. (I stay up all night shouting at someone’s TV. It is a really good night.) The 450 people I poll forecast the Corbyn-effect Labour surge here too, and I make a number of new swing-voting and activist friends locally. The urgency and the enormity of the political struggle; the awfulness of terror and fire. Infighting, rank-closing, rabble rousing: we are alert and will change this shitty trickle-up system. Don’t wait for our leaders and parties and governments to solve things for us all; we must do it ourselves.

I go to Bovey Tracey Contemporary Craft Fair. Just a punter again, not ready to tie myself to being in a particular place ahead of time, just visiting for inspiration, professional development. Cool crystal water on the scorched earth of a ravaged Britain. I babble with a Welshman;  relieved to just look at pretty things and not talk politics – as I manically jump from the election to Corbyn to neoliberalism to the urban decay that inspires his striking ceramics, all at a rate of 2000wpm. I’m greeted warmly by the light-genius Valerie Wartelle, whom I interviewed last year. I also admire the work of a Cornishwoman making rusty wriggly tin landscapes, inspired by the stories she too sees in decay. Lisa Wisdom is the only fine artist we know of whose main medium is corrugated iron, and her work is a lovely surprise, her scenes parts of these isles that I know in my bones. Her sister describes the origins of Occupational Therapy in weaving, and when a basketmaker subsequently tells me that that happened very near here, I add it to the boast about Clement Atlee’s NHS-founding manifesto that was written here in Dartington Hall. Everywhere I go, I’m proud of my Westcountry upbringing.

 

I get my head down to the loom again and weave a batch of ponchos and mauds: a summer hedgerow; a Rodolpi Mountain; a woman’s hand dyed Jacob; a woman’s handspun Jacob; a man’s handspun Jacob.  I curate a collection of images by artisans around the world and send them a link with a compliment and an invitation to share. I receive warmhearted replies from as far off as Peru. That awful ‘networking’ can be meaningful communitybuilding. (I’m reminded of the beautiful film ‘Even the Rain‘ with its subtle critique of the patronising Western people’s way. Cringe.)

Whilst waiting for some delayed wool, I cook up a new summer product idea: warp readywound for weavers. I struggle to scratch a living in the summer, and need to innovate. Piloting is exciting.

Last minute I put out a shout on social media about an eco-conference called Seed Festival at Hawkwood, Gloucestershire. Is anyone I know going? A dear friend, Imogen Di Sapia, as yet un-met except online, invites me to contribute to her workshop there: ‘The Craft Economy and Women Underground’. We talk about networking with meaningful human connection for moral support and pragmatic exchange. Another workshop, about land use, requires us to consider what landscape means, and my neighbour contests my limited definition of hills and open spaces: landscape is built and peopled, says he, citing the Welsh ‘hiraeth’. Something you belong to. A self-build workshop focuses on intentional community and though I contribute a word the leaders like, ‘inter-reliance’, my old allergic reaction froths to the surface. But I enjoy the conversations I have with (particularly) women who are looking to grow their art, build their business and find their way, a different way.

I interrogate the representative of Triodos Bank. He says he wants to restore relationship between savers and borrowers, but I’m uneasy at this sweet, simplistic representation of corporate banking. I’m nervous about describing in 30 seconds the injustice of our debt-based monetary system and the mechanism of its feudalism so that the audience understands and the speaker doesn’t feel attacked (plus my countercultural understanding of economics is far from complete). But I succeed, ‘hear hear’, many folk in the room are already onto this, and he answers well: though Triodos is a commercial bank working to the conventional banking model, its profits don’t trickle up to fat cats via derivative products, stocks and shares, but are reinvested 100% in worthy causes and the real economy. So the company is not transformative, but it is nonetheless a force for good. I hope the climate gives us time to change things slowly.

Molly Scott Cato, South West MEP, discusses Brexit as an opportunity to reshape British agriculture, and I realise more and more how dysfunctional it currently is, with small farmers paid to keep uplands desertified and the wealthiest farmers paid just to keep wealthy. Land ownership, like other wealth, is increasingly concentrated in the hands of a very few (some Saudi and Russian), and Britain is nowhere near capable of feeding itself. Cato is opposed to Brexit and feels the dire necessity of a left-shaped response to the crisis. She has drawn on expertise from the Soil Association and land rights changemaker Simon Fairlie to propose plans in the absence of government plans. (Incidentally, she feels there is, surprisingly, a teency glimmer of hope in the language of Gove and DEFRA despite Leadsom, though whether they will ever walk the decent talk is another matter.)

Craig Bennett, Friends of the Earth supremo, challenges notions commonly held by businessfolk that sustainabilityfolk are anti-progess. Sustainabilityfolk are commonly held back by businessfolk intent on a race to the bottom. Oh, I’ve got an idea: maybe we could work together?

I miss Caroline Lucas talking, but I pass Bruce Parry and we smile and he is as warm as in his films. I go to the screening of his as-yet unreleased Tawai. A popular headline act, we are spilling out of the curtained hall, standing for two hours with craned necks in a dark sauna. I only want to hear him speak, ask questions – not stare at a screen at a social event – but the opening scenes compel, and it is nice to watch it with the maker, and with a friendly bunch of concerned strangers. Seven of us standing in a crowded corner, hot and tired and, one, disabled, move considerately around each other to make spacesharing work, helping out, propping up, cushioning, commenting, swapping places, making room for latecomers, making room for shorter folk or older folk or tireder folk. His film is ostensibly an investigation into interdependency among members of the world’s last hunter-gatherer community in Borneo, but the profound and lightly-trod subnarrative is a personal investigation into ways of knowing, being, living and believing. The moment of his epiphany is understated but it reverberates as I think I spot a homefinding in his own quest for belonging. ‘If you’ve come to help us, then we have nothing to say to each other. But if you’ve come because your survival is bound up with ours, then let us talk.’ Later Parry asks to join us beside the campfire, and I want to talk to him about the inner journey, but he is quickly surrounded by beauties talking to him about the outer journey, and as I open my mouth a drunkard falls on top of us and the moment is passed.

I’m invited to contribute to another conference about community business, and though both these words have turned me off in the past, I’m starting to feel the layers in the depths of them. Interesting, the deeper significance of trade and trading relations. When I took to the road, I designed my livelihood and lifestyle for maximum independence, autonomy and solo agility. But perhaps I can plug back in by inspiring others to take off into the sunset before they plug back in empowered. 

And maybe my community doesn’t have to be in one place. Maybe I’m a child of globalisation, and happy that way.