Thursday, October 29, 2009

Sir, Slow down your investment money

Slow down your investment money: Stupid; (Oct. 28, 2009)

Sir, learn to slow down your investment money: it is man who generates money. Finance and business are too important to be left to the exclusive experts in finance and doing business as usual contended the British economist Schumacher in his classic book “Small is beautiful”; he expressed the necessity for mankind to rediscover a set of values of higher exigencies than just economy.

In liberal capitalism money came to be viewed as an abstract entity that was represented by derivative products that have no practical meanings even to the experts in finance. Thus, the world was glutted with 50 trillion dollars in paper derivatives that were badly managed and controlled simply because this wealth was fundamentally fictitious until the Big Crash; then fiction translated into miseries.

Since 1920’s, money was perceived as an instrument to gain more money or “money generates money” rapidly and easily. Investors had no idea who is manipulating their money or how: they reached the threshold that investors didn’t care who is managing their money or making it fructify as long as fictitious bank statements told them that their bank account has swollen a bit more. This fictitious wealth didn’t represent accurately real activities around the world of economies.

The same process of abstraction was applied to agro-economy. The founder of Slow Food, Carlo Petrini, wrote: “If you use your money as chemical fertilizers then your quick product grows artificially; the land will require more chemical fertilizers the next year for reduced quantity.  This is not a durable method for fructifying your investment or for saving your land of depletion and of quick death.  Now, if you use your money as natural fertilizer by slowing down the output for a durable and natural recycling of the land and organic product then there is chance for a durable economy based on wholesome and lasting sustainable process for healthy products.”

Sir, if you still have money to invest then look around the businesses in your community.  You need to do your due diligence to get acquainted with the employees and personnel.  You need to know that the products are wholesome and sustainable; that the owners and managers of the business know their business, the products, and the needs of the community. You have to make sure that your community is patronizing the products and that the workers are enjoying their jobs, supportive of the products, and working in a healthy and safe working environment.

Sir, learn to slow down your investment money: it is man who generate money.  You need to become an activist for the welfare of your community.  Pressure the government and financial institutions into aiding your local businesses and local banks that serve the community.  Pressure the your law makers to enact laws that prohibit local banks into lending money to “fictitious” non-local institutions that you have no idea or control over their transactions.

Sir, pressure your local banks to include social experts and community activists to the board of directors and in positions to control the transactions to make sure that another trend of “fictitious money” is not spiraling and taking a life of its own.

Sir, make sure that all these control and management tools are firmly established and then you may claim that “the market will be able to stabilize seasonal or emerging fluctuations”, that you may enjoy a sound and wholesome economy that caters to the need and survival of the community well being.

Woody Tasch in his book “Inquiries into the nature of slow money” criss-crossed the country for six months and noticed strong latent demands for alternative solutions; he wrote “people comprehend that for food to have tangible values then agriculture must be diversified and offer advantages to the environment, health, job creation, and community security.” Tasch has started Slow Money Alliance, a series of lending institutions composed of people in agricultures, in agro-business, donators and investors for soil restoration and products grown naturally. Tasch is encouraging philanthropic institutions with an estimated 500 billions invested in stocks to re-invest into 503 (c) 3i (the i is for integral economy) where the money is not intended for profit and not taxed by the Federal government. Philanthropic money need to be re-invested into social fairness in health, safety, and equity.

Slow Money Alliance is applying the new economical paradigm by investing in small agricultural and food enterprises so that thousands can recover jobs in already existing family lands, biological products, and the restaurants of Slow Food.

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