Thursday, October 30, 2008

Global Financial Crisi and Our Values

Everyone is talking about the Global Financial Crisis. But it didn't come from nowhere. It comes from a consumer credit culture, a materialistic have-it-all culture. But is anyone talking about that? After the bailout plan, and after the new regulatory system, we will go back to supersized executive slaries and the traders will get back into their Porsches on the way to the gold course! Is anyone looking to examine the core values here?

Well I found someone who is! This is in todays Times - a little preachy, but nonetheless good to hear a moral voice in the madness. (link)

Here is the article:

From The Times. October 30, 2008 .
Ben Okri

The crisis affecting the economy is a crisis of our civilisation. The values that we hold dear are the very same that got us to this point. The meltdown in the economy is a harsh metaphor of the meltdown of some of our value systems. A house is on fire; we see flames coming through the windows on the second floor and we think that that is where the fire is raging. In fact it is raging elsewhere.

For decades poets and artists have been crying in the wilderness about the wasteland, the debacle, the apocalypse. But apparent economic triumph has deafened us to these warnings. Now it is necessary to look at this crisis as a symptom of things gone wrong in our culture.

Individualism has been raised almost to a religion, appearance made more important than substance. Success justifies greed, and greed justifies indifference to fellow human beings. We thought that our actions affected only our own sphere but the way that appalling decisions made in America have set off a domino effect makes it necessary to bring new ideas to the forefront of our civilisation. The most important is that we are more connected than we suspected. A visible and invisible mesh links economies and cultures around the globe to the great military and economic centres.

The only hope lies in a fundamental re-examination of the values that we have lived by in the past 30 years. It wouldn't do just to improve the banking system - we need to redesign the whole edifice.

There ought to be great cries in the land, great anger. But there is a strange silence. Why? Because we are all implicated. We have drifted to this dark unacceptable place together. We took the success of our economy as proof of the rightness of its underlying philosophy. We are now at a crossroad. Our future depends not on whether we get through this, but on how deeply and truthfully we examine its causes.

I strayed into the oldest church in Cheltenham not long ago and, with no intention in mind, opened the Bible. The passage that met my eyes was from Genesis, about Joseph and the seven lean years of famine. Something struck me in that passage. It was the tranquillity of its writing, the absence of hysteria.

They got through because someone had a vision before the event. What we need now more than ever is a vision beyond the event, a vision of renewal.

As one looks over the landscape of contemporary events, one thing becomes very striking. The people to whom we have delegated decision-making in economic matters cannot be unaware of the consequences. Those whose decisions have led to the economic collapse reveal to us how profoundly lacking in vision they were. This is not surprising. These were never people of vision. They are capable of making decisions in the economic sphere, but how these decisions relate to the wider world was never part of their mental make-up. This is a great flaw of our world.

To whom do we turn for guidance in our modern world? Teachers have had their scope limited by the prevailing fashions of education. Artists have become more appreciated for scandal than for important revelations about our lives. Writers are entertainers, provocateurs or- if truly serious - more or less ignored. The Church speaks with a broken voice. Politicians are more guided by polls than by vision. We have disembowelled our oracles. Anybody who claims to have something to say is immediately suspect.

So now that we have taken a blowtorch to the idea of sages, guides, bards, holy fools, seers, what is left in our cultural landscape? Scientific rationality has proved inadequate to the unpredictabilities of the times. It is enlightening that the Pharoah would not have saved Egypt from its seven lean years with the best economic advisers to hand.

This is where we step out into a new space. What is most missing in the landscape of our times is the sustaining power of myths that we can live by.

If we need a new vision for our times, what might it be? A vision that arises from necessity or one that orientates us towards a new future? I favour the latter. It is too late to react only from necessity. One of our much neglected qualities is our creative ability to reshape our world. Our planet is under threat. We need a new one-planet thinking.

We must bring back into society a deeper sense of the purpose of living. The unhappiness in so many lives ought to tell us that success alone is not enough. Material success has brought us to a strange spiritual and moral bankruptcy.

If we look at alcoholism rates, suicide rates and our sensation addiction, we must conclude that this banishment of higher things from the garden has not been a success. The more the society has succeeded, the more its heart has failed.

Everywhere parents are puzzled as to what to do with their children. Everywhere the children are puzzled as to what to do with themselves. The question everywhere is, you get your success and then what?

We need a new social consciousness. The poor and the hungry need to be the focus of our economic and social responsibility.

Every society has a legend about a treasure that is lost. The message of the Fisher King is as true now as ever. Find the grail that was lost. Find the values that were so crucial to the birth of our civilisation, but were lost in the intoxication of its triumphs.

We can enter a new future only by reconnecting what is best in us, and adapting it to our times. Education ought to be more global; we need to restore the pre-eminence of character over show, and wisdom over cleverness. We need to be more a people of the world.

All great cultures renew themselves by accepting the challenges of their times, and, like the biblical David, forge their vision and courage in the secret laboratory of the wild, wrestling with their demons, and perfecting their character. We must transform ourselves or perish.

1 comment:

Anonymous said...

Global Financial Crisis, they call it. What happened?

Banks lent money to people who couldn't repay. Then they bundled up those loans, and sold them as "investments". But who would buy a bundle of loans with almost no chance that the people would pay them back?

The credit ratings agencies took money from the banks to declare that the bundles of loans were a good risk investment. Then people all over the world bought the bundles of bad loans.

The "crisis" started when the banks realized that because they had sold bad loans all over the place, they had no idea who ended up owning the bad loans. Therefore, they refused to lend each other money, because a bank with too many bad loans on its books might not be able to repay money lent to it.

This caused a crisis because the world system needs money to keep operating. Banks create money using fractional reserve lending. If banks stop lending money, suddenly there isn't enough money and problems develop.

But now the "crisis" part is over. Why is it still being called a crisis? Now is the time that it should be known by a new name, the Global Financial Swindle.

Billions of people all over the world have lost trillions of dollars because of imprudent and irresponsible lending by the banks, and by inappropriate credit ratings issued by credit ratings agencies. This is a case of global fraud.

The banks knew that they were making bad loans by lending to people who couldn't repay. The banks knew that bundling and selling bad loans as valuable investments would lead to calamity later. The credit ratings agencies knew that giving good ratings to bad loans would lead to disaster.

The banks deliberately sold bundles of bad debt as good investments. The ratings agencies declared that the bad debt was a good investment. Billions of people lost trillions of dollars from buying this bad debt. This is fraud.

And yet, in the face of the second-biggest fraud ever on the planet, our brave government leaders go around calling it a "crisis" and trying to "bail out" banks and other companies.

Where are the investigations? Since the fraud was perpetrated all over the world, just about every police department on the planet has jurisdiction to investigate this matter. When can we expect to see banks and credit agencies having their executive officers arrested and brought to trial?

It won't happen, will it? They've been paid off with the government bailout money.