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Gordon Hughes's avatar

This article reinforces for me the loss of personal, family and community connections to people who spent periods working in Africa, the Middle East or Asia in the past. My uncle was a colonial officer in Ghana during and after the war. There were about 40 of them supposedly "running" the country. The idea that they could impose change on reluctant communities was absurd. Indeed, there were more Ghanaian graduates from UK universities than there were colonial officials. The primary job of colonial officers was to broker disputes between communities or individuals and to mobilise resources to invest in infrastructure, education and health. Perhaps reflecting the patrician aspects of the colonial service, there were major tensions within what we would now call the expat communities in Africa between commercial interests, who were seen as exploiting local population, and officials who took a more paternalistic view.

Even in my generation, there were people who spent extended periods working as volunteers in local communities in many African countries - perhaps the modern equivalent of missionaries. This was particularly common for those with medical or healthcare training. Such experience is very different from a gap year travelling around Asia, and it rapidly knocked off any rough edges of arrogance. Such people were not the sahibs and memsahibs of mid-19th century India - and even those were largely fictional residents of Calcutta and Bombay.

Colonial Africa and Asia was managed by an extremely thin layer of officials and merchants in association with a much larger group of local elites who wanted stability, competence and a degree of independence from local interests. In my experience, working with western NGOs and Aid consultants both in Africa and even more in the former Soviet Union revealed attitudes and behaviour that was far worse - predatory and uninterested in local conditions - than anything I saw 30 years before in immediately post-colonial Africa.

John Merryman's avatar

The subtitle totally encapsulates the problem the article totally overlooks.

Money.

In that states function as social super organisms, government, executive and regulatory, is the nervous system, while money and banking are blood and the circulation system.

We have evolved enough to understand that as government has to serve the entire society, if only to prevent civil wars and revolutions, that it works best as a public utility. More referee than locus. Much as our mind is more referee of the desires and needs, than source.

We haven’t yet come to understand the same principle applies to banking.

When the medium enabling markets is a player and not a utility, the rest are tenant farmers.

In a market economy, money is the medium. In a capitalist economy, money is the message. One is a tool, the other is a god.

As linear, goal oriented creatures in this cyclical, circular, reciprocal, feedback generated reality, people see money as signal to save and store, while markets need it to circulate. Consequently Econ 101 refers to money as both medium of exchange and store of value.

Roads are a medium, parking lots are a store. If we treated roads like we treat money, everything would be paved over, but we would still be fighting over who has the biggest lots.

In your body, blood is the medium, fat is the store. Mix them up and you are dead. Try telling a doctor that medium and store are interchangeable and he will look at you like you are really stupid, but to an economist, it would be common knowledge. Consequently the entire financial accounting system of society has been turned into a giant casino. The financial tail is wagging the economic dog.

So rather than resources being allocated where they would have the greatest benefit, much is siphoned off to feed large egos, leaving the rest to fight over the scraps. It would be like the heart telling the hands and feet to go suck dirt, as it is keeping the blood for itself.

As a medium, you own money like you own the section of road you are on, or the air and water flowing through your body. It doesn't have your picture on it, you don't hold the copyrights and, most importantly, are not directly responsible for its value, like a personal check.

While we might think of it as a commodity to mine from the economy, like we mine gold from the ground, or bitcoin from computer processing, it functions as a contract, between the holder and the rest of society.

As a contract, storing the asset side of the ledger requires a debt on the other side, so much economic, social and political activity is designed to generate debt, to store the illusion of wealth. Such as indebting younger generations, rather than investing in them as the future of society.

That the flunkies allowed in DC are best at running up debt and the financial sector needs this debt to grow metastatically is not coincidence. The secret sauce of capitalism is public debt backing private wealth.

“The real money is in bonds.”

The banks are having their, "Let them eat cake." moment.

So yes, the entire political apparatus has become a zoo of large egos and low morals.

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