Financial Permaculture: Think Global, Invest Local

These days I get asked by a lot of people where they should invest their money. It’s a good question given uncertain times. Not only are we experiencing a traditional recession but there are concerns about the actual financial system itself.

This in turn has led to a somewhat deeper examination of money itself: its construction, process and ultimately its value.

Personally I’ve been in cash for the last 18 months having sold out of commercial property investments. Now, as interest rates are cut heavily and our banking system is on its knees, cash doesn’t seem as appealing as an investment class.

What if rates continue to fall? What if new rules are introduced such as limits on withdrawals, foreign transfers, currency trading etc? What if interest is frozen, bonds converted to equity and so on.

Gold is often mentioned as something useful to hold. I’m not a big fan of it myself but it’s likely to be worth something at some point so does have some holding appeal.

What I’m most interested in at the moment is investing locally. This could mean sticking in a decent veggie patch (if you have the space, which fortunately in NZ we do). How about investing in renewable energy for the home, solar heating, a wind turbine, battery pack etc? Normally its a bit upfront payment but at least you know you’ll be getting a decent return in KwH rather than cash.

But also investing in local food systems, local infrastructure or local transport. These all appeal because they can provide a return, real or cash,  and they keep cash circulating locally, which keeps people employed and boosts confidence in the community.

It’s an opportunity for local councils to get involved as they are struggling to riase cash at the moment given the rush into government guaranteed bank deposits. Many people talk about sending money overseas as they are worried about the falling NZ$ or whatever your local currency is. I say be careful. If you can’t access your cash in person then you have a much higher risk profile. Foreign cash deposits can be the first items to be frozen when new rules are applied. If you are worried about currency risk you can always do a forward currency trade with your bank or hedge through an online fx company.

There are some useful websites about this including, of course, Financial Permaculture as well as Catherine Austin Fitts at Solari. If readers have any useful links or ideas on this please let me know.

How to be a Good Nabuur

This story comes from those good folks over at Ode. Remember the days of VSO, working abroad as a volunteer, helping out in any way you could? Well now you can do it from the comfort of your own home.

Nabuur.com has launched an online resources to connect villages with helpers…online. Projects get posted up and help asked for. Then volunteers with particular skills can connect with these projects and provide the service. It sounds like another great way to connect people and let ideas and skills flow around the system.

It also allows for a wider pool of people to offer up knowledge and skills they have but may, for whatever reason, not be in a position to share in person.

UN Declaration of Human Rights: Article 1

“All human beings are born free and equal in dignity and rights. They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood.”

What I love about children is their innocence and their ability to accept people as they see them. The idea that we are all the same resonates with them. Sure we all look different on the outside but the key here is that we are born free and equal. At that moment of birth anything is possible. Then its a descent into society, culture and the rest.

The key here is equality in dignity and rights. It doesn’t mean we are all the same as clearly we all have different abilities. But just because someone can run faster than me doesn’t make them a better person. This is the key to dignity and rights.

We all deserve those. If we get them early in our life its likely we will turn out ok. At least that’s what I hope for.

Kiwibank: Its all ours

New Zealand is fortunate to have its own state backed (sort of) bank in Kiwibank. Promoted by Jim Anderton (who quietly understands the money system) it has come centre stage in the recent financial crisis.

With its NZ Post guarantee it had attracted huge funds from worried savers over the last 12 months. Now that all bank deposits have been guaranteed it is perhaps less attractive. Until today.

Winston Peters, the enfant terrible of NZ Politics, today proposed that Kiwibank handle all government business.

What a great idea. Why continue to pipe $4lbn odd in profits to the Australian banks?

Having domestic control of your monetary system is an absolute prerequisite for a properly functioning sovereign state.

Colonial invaders always replaced the local currency with theirs as soon as local administration was in place. Currency issuance is all about control.

If someone else is in charge of your money then you have limited control over the functioning of your economy.

I suggested in June 07 that the RB use the opportunity of the high NZ$ to buy as much foreign currency as possible whilst the market was hungry for NZ assets. Now with the NZ$ around 0.60 and our overseas borrowing binge fully exposed, the situation is less than favourable.

The lessons of Iceland show that sovereign control of the money supply is essential and as part of that a strong domestic banking system is a necessity.

UN Declaration of Human Rights: Preamble

On December 10, 1948 the General Assembly of the United Nations adopted and proclaimed the Universal Declaration of Human Rights the full text of which appears in the following pages. Following this historic act the Assembly called upon all Member countries to publicize the text of the Declaration and “to cause it to be disseminated, displayed, read and expounded principally in schools and other educational institutions, without distinction based on the political status of countries or territories.”

PREAMBLE

Whereas recognition of the inherent dignity and of the equal and inalienable rights of all members of the human family is the foundation of freedom, justice and peace in the world,

Whereas disregard and contempt for human rights have resulted in barbarous acts which have outraged the conscience of mankind, and the advent of a world in which human beings shall enjoy freedom of speech and belief and freedom from fear and want has been proclaimed as the highest aspiration of the common people,

Whereas it is essential, if man is not to be compelled to have recourse, as a last resort, to rebellion against tyranny and oppression, that human rights should be protected by the rule of law,

Whereas it is essential to promote the development of friendly relations between nations,

Whereas the peoples of the United Nations have in the Charter reaffirmed their faith in fundamental human rights, in the dignity and worth of the human person and in the equal rights of men and women and have determined to promote social progress and better standards of life in larger freedom,

Whereas Member States have pledged themselves to achieve, in co-operation with the United Nations, the promotion of universal respect for and observance of human rights and fundamental freedoms,

Whereas a common understanding of these rights and freedoms is of the greatest importance for the full realization of this pledge,

Now, Therefore THE GENERAL ASSEMBLY proclaims THIS UNIVERSAL DECLARATION OF HUMAN RIGHTS as a common standard of achievement for all peoples and all nations, to the end that every individual and every organ of society, keeping this Declaration constantly in mind, shall strive by teaching and education to promote respect for these rights and freedoms and by progressive measures, national and international, to secure their universal and effective recognition and observance, both among the peoples of Member States themselves and among the peoples of territories under their jurisdiction.

Well it’s a grand start, a huge sweeping statement of love, peace and freedom. The advent of a new world, freedom from fear and want.

Freedom from tyranny and oppression?

It’s too easy to list the abuses, killing and destruction of the last 60 years. I think what is important here is to revisit the vision and imagine it then and now. Is it relevant? Is it too aspirational? What have we learnt about human nature, the institutional arrangements we live with, the way we are ruled or governed?

Are we a big happy human family?

The UN feels like a marriage made in haste and on the rocks. It’s lost its will, its purpose and its values. Its time to refresh and renew those vows or move on to something new.

Here’s another questions for those in school or with kids in school: How many of your schools display the UN Declaration of Human Rights?

Take the opportunity now to send them a link to it or try and get a poster from your local Amnesty team or Human Rights Commission.

10 years ago on the 50th Anniversary I displayed a copy of the wall of the dealing room I worked in. People thought I was nuts; my American colleagues thought I was a commie….but very few people wanted to read it, to understand it, to think about it.

And maybe that’s the problem. We don’t want to think about it, it’s too hard. We might have to take some action, be accountable, question ourselves and our attitudes.

Sometimes I wonder how many member states have read this recently.

Well it’s never too late.

Human Rights Watch: 31 Verses

The 1940s was a tumultuous time for the world. A war which saw millions of lives lost and destruction on a global scale.

We saw the construction of a new financial system in Bretton Woods and the formation of a extended global brotherhood, The United Nations. But for me the real action was on December 10th 1948 when the UN made a Declaration of Human Rights.

As we approach the 60th anniversary of this hopeful statement it is time to reconsider the Declaration, examine its content and intent and ask ourselves how we see Human Rights today.

From today I’ll be posting up one article daily with some commentary and invite all readers to think about what it means for them and whether it is still relevant today or some hopeless outdated and optimistic posturing.

If you’re looking to get involved in some way then just look up your local Amnesty office and check it out.

I’ll leave with a quote from Edmund Burke,

“All that is necessary for the triumph of evil is that good men do nothing”.