An email response to this note from Daniel Pinchbeck, author of 2012, Return of the Quetzalcoatl."
"I just published an essay that may be of interest to this group. In it, I am looking at the potential of an imminent financial meltdown as mass defaults on personal debt follow the sub-prime mortgage market collapse, which could push banks and insurers into insolvency. This crisis could lead to a regeneration of the Left, as people will need interpretive grids to understand what has hit them. I am very interested in Antonio Negri and Michael Hardt’s work in “Empire” and “Multitude”, and think that those works provide an important conceptual framework. Of course, it is also possible that the financial collapse, if it happens, could lead to an increased authoritarianism, demonization of immigrant groups as enemies, etc.
The essay, “When the Other Shoe Drops”, can be found at http://realitysandwich.com . I am hoping it will stimulate debate. A major question is whether our political and economic system can be reformed in order to deal with the accelerating and intermeshing climate crises, resource crises, financial and military crises, etc. If not, a different type of solution is going to have to emerge from civil society."
Yours,
Daniel
Thanks Daniel for your provocative piece and for Bruce’s response.
Having spent 11 years working on Wall Street and many years since following the capital markets I am very familiar with calls for financial meltdowns. Nevertheless with each and every crisis since Depression era reforms- the oil lending crisis in the 70’s, the savings and loan debacle in the 80
’s, or the sub-prime mortgage and consumer debt threat- the Federal Reserve System survives despite massive and repeated write-downs of public and private debt. While a compelling case can be made that “this is it,” in terms of systemic collapse I suggest such speculation is futile in the end. Rather I think we are better served by focusing on the creation of a parallel cooperation-based system as alluded to in your article, the rise of social enterprises around the world where entrepreneurs target both social and financial returns, and the rise of a new social capital market that blends the efficiencies of market-based systems with values based missions and incentives.I would also argue that we are already in the middle of a crisis in consciousness and in the midst of “a major opening of awareness and compassionate understanding.” As complexity rises and communication potential expands humans seem to move more like swarms in reaction to ever-sharper views of their nest. The trick it seems to me in this environment is to be attentive and supportive of what is arising on its own at local levels. In my view, needs are best defined at local levels while global structures create horizontal efficiencies where common patterns or needs (at local levels) can be recognized and/or supported.
I agree media will play an influential role, particularly with the evoluti
on of online and physical social networks of all kinds that support local and cooperative decision-making; and user generated video and gaming where we are rapidly becoming experts at rapid-prototyping simulated environments and extrapolating our experience into real structures in physical space. I have more confidence that a new system will arise in this context than I do in one arising from entrenched, industrial age hierarchies and nation-state based political systems.Kevin Jones, Tim Freundlich and I have begun to build the framework for a 30,000 foot view of the social capital market that we hope many on this list can contribute to. Here is a link to a very preliminary framework that we hope to build on with the help of a wide community.
Our hope is that by making the landscape more clear more resources will flow toward it. Like Bruce I have great respect for the work of the others copied here and appreciate any comments you have.
Paz
Mark Beam
Oaxaca, Mexico
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Hi Bruce, Mark, and Schuyler,
Thanks for your responses to my essay. I appreciate the dialogue!
Personally, I wonder whether, with even the best intentions of many bright and inspired people, the current financial and political system can survive the transformations that are now under way, and increasing in velocity. I felt this same concern, very powerfully, at Bioneers last fall. An oceanographer described the emptying of the oceans and the disappearance of food chains in the oceans, and asked the elite liberal audience to "take less (fish) out" and petition their representatives to do more. This seemed insignificant compared to the scale of the problem.
I agree with Negri and Hardt that communication is critical in the "production of subjectivities" whose choices determine the movements of capital and resources. As Mark and Bruce note, the evolution of “peer-to-peer” social networks could lead to a system that supported a populace educated on critical issues, and capable of acting in concert - a type of "swarm intelligence." This type of system might supplant or possibly replace many of the functions currently performed by government. The current market economy could be augmented by a barter/exchange system using a trust rating, and also a gift economy (Lewis Hyde's book "The Gift" is a great read on this subject). Even to survive in a modified form, currency may have to go through an evolutionary shift, with money indexed to perishable goods or resources, rather than an immortal abstraction.
It is interesting to consider that "Wall Street" got its name from the original wall built by the Dutch settlers to keep out the indigenous people. That wall also represents the great divide between the economic system of the Europeans and the Native Americans, the first based on the Logos of the market, and the second based on the Eros of the gift. As Hyde discusses in his book, we could evolve a system that breaks down this divide.
Since protest culture and straightforward opposition to the current regime of "biopower" seems somewhat pointless, the best strategy may be to create a mechanism that allows for an internal exodus to an alternative support system, that uses communications and media tools to educate and transform consciousness. Such a system could encourage the development and "rapid prototyping" of different solution-based approaches in many spheres of life.
The current perturbations in the financial system may not lead to a "collapse," as Mark noted: The system is highly resilient. But even so, they may provide the opportunity for a deeper opening of awareness and an investment in creative alternatives.
Sorry to take up your bandwidth - thanks for your time.
Yours,
Daniel