Mediums of Exchange

"Bilateral exchanges of goods would be impossible because of an absence of what economists call a 'double coincidence of wants': A wants B's rice but can't barter with A because B doesn't care for A's wheat; and so on" (54) Dasgaupta's Economics: a very short introduction

The use of money as a medium of exchange enables people to do business with one another without a a means of want otherwise.

People hold money because they want to exchange goods and services without possessing the goods and services in which to barter. "so money is not only a medium of exchange, but also a store of value." The value is in the fact that people rather>>> being self sufficient

You either trade in the market, or become self sufficient with a sense of reciprocity within your immediate society, community.

Lives constructed around the world differ significantly. Facing different futures due in a great deal to where you are born. Different opportunities and obstacles greatly determine your believe of what you are able to do and who you can become.

"Economics in great measure tries to uncover the processes that influence how people 's lives come to be what they are." (7) Economics also tries to identify and influence those processes; How are things allocated? By age, gender, status, role, history...

"In various degrees, the millions of individual decisions shape the eventualities people face" (8) Ah, Consequences! The millions of small contributions (whether driving or burning dung for fuel) add to the whole. They create the whole picture. Actions create feedback loops. Positive or negative cause and effects.

A role: economists try to uncover reasons why events in a specific place unfold the way they do; identifying key drivers.

I want to uncover why the standard of living is so much lower in some parts than in others, and if a balance can be designed and created. Why I care so much about balance? Survival of the fittest, or compassion for everyone?

there exist a multitude of alternative models on social phenomena. In Buddhism we are encouraged to cut out the delusion, and see phenomena clearly.

The Real Wealth of Nations, wisdom from Riane Eisler

Economic Sectors:

Household economy (is the core inner sector)

Unpaid community economy

market economy

illegal economy

government economy

natural economy

an economic system where "human needs and capacities are nurtured rather than exploited, our natural habitats cared for and conserved rather than destroyed, and our great potential for caring and creativity is supported rather than inhibited." 14

The values of caring p. 16-21 the six Foundations 21-23

The Blind Spot of Economic Thought, help with language by our friend Otto Scharmer

in Capitalism 3.0 (term used by Peter Barnes) the state of awareness is different from that of 1.0 and 2.0. In 3.0 "there is a shift of awareness that extends the nature of self-interest of the players to the entire eco-system [why use the dash?]. Eco-system awareness means having the ability to operate with a mind that perceives a problem from all of the perspectives in a given system or community (rather than only from one's own) and to internalize the concerns and issues of the players in one's own decision making"

paraphrase above. go:

holistic, integrated thinking. define these words.

Example: Scharmer uses: sustainable supply chain projects. Patagonia, Coca-cola(?), Carpet co.

fair trade branch of the system

ego-system of self interest shifting to an eco-system awareness that includes players from the entire value chain.

Example: Sustainable Food Lab.org multi-sector initiator with over 70 organizations

p.7 Scharmer makes a nice summary of Arnorld Toynbee's (historian) perspective of the interplay between societal progress and evolution. Toynbee uses the terms "challenge and response".

challenges present themselves (inevitably), the old order is threatened to evolve or collapse, always transforming, and the new form(ations) replaces the old.

Transforming the core of economic thoughts:

attention and consciousness as the means to structural change. As the leaders for design and creation. Realized!

both-and integration. instead of debate of duality and difference, conversation about holism and working together. "which would allow it to cope with the new challenges of this century better, faster, and with fewer catastrophic side effects." (11)

Scharmer believes in 3.0 the framework will be a "paradigm of collective leadership, deep systems transformation, and collective action that arises from shared awareness and common will." Buddhism theory anyone? Loving kindness, interconnectedness, no separation, basic goodness and compassion. The "new" World Order. Respect of differences, tolerance around viewpoint and thought processes.

Acupuncture points: look up the way they work.

1. Coordination: how will you navigate global distribution?

p. 12 he talks about how we (humans) need a collective shift, or as he puts it-- "a massive transformational shift"-- in awareness that will redirect our attention to where it really needs to go, a feeling of collective accountability and responsibility in all directions, locally, regionally, "nationally", and globally.

SL- can you define those terms above? What do they mean to you?

coordination around entire value chains, from sourcing raw materials to the end consumer. Attention to these chains, holding appreciation and keeping clean design. Creating "transparent and reflective (open-minded), more empathetic and inclusive (open-hearted), and more action oriented and willing to lend a hand (open-willed)" relationships (12). The web of connectedness built on values of truth, love and beauty. The web knitted by participation and respect.

Scharmer is good at looking back with history as how things work now and where they need to go because of the past.

this will be facilitated by institutional intelligence and innovation. The I's. (as how it was from the leap of 1 to 2).

Local economy --good-- but transform to bio-regional economies and design.

2. Evolution of property rights.

zero externalities

natural commons. common property rights (you know what this can look like. design it)

private and social costs equate. No poisoning. no negative emissions. Organic and creative design.

Peter Barnes: one person, one share. Trusts: receive rights and funds (cap and trade $$)

government would also receive a percentage of these funds for public infrastructural investments, not military greed.

TRUST-BASED OWNERSHIP STRUCTURE: gain connection to others. loss of financial power. Gain "better resources, investments, and partners who were interested in pioneering new social, economical and environmental practices." (14)

3. Basic income and access to health, education, other opportunities

But how will people make a profit?

"As a global economy, we currently have an oversupply of products and production capacity in most industries. WE have more stuff than we sell." Ah, yea. He said. Not me, although I agree in thought and language.

(people don't have the cash to buy all this crap. And some very expensive and vital products for technological evolution, sustainable living, and ease) People "don't have"

What do we have? What do they have? Moving from a mindset of lack to that of assets. Assets based self-practice, emanating out to the community. One love, one heart,

"conventional labor is just another form of dependence: you don't sell your body, but you sell your time" (16)

4. Open+Transparent+Aware movement of capital

economics becomes aware of externalities and transparent about creating them.

financial bubbles and reality based on falsity p. 17

what is the real function of money? 17

"money gives us the right to buy and consume a certain fraction of the value (goods and services) that the real economy has generated in a given period." 17 Sharmer

body must do globally distributed divisions of labor... Who was all about the division of labor back in the 1800's? Keynes?

he compares money to the circulatory system

p. 18 gives example

better serves 1944 Keynes was not a bad guy.

Writing about systems theory

5. Technology. what is it doing? Functions of the web compared that to a program (like Micrsoft Word or Open Office); One holds it all together through a connection and system, the other serves as a tool, a systematic and mechanical design.

When more and more people are looking to connect and hope for the future (although with an (opposite of idealistic) with a bleak view)

Setting ourselves free. mobilize investments