Watch Your Thoughts...

"Watch your thoughts they become words. Watch your words they become actions. Watch your actions they become habits. Watch your habits they become character. Watch your character it becomes your destiny."

~ Patrick Overton

Financial Services and Banking are in Desperate Need of Reform at the Top

On April 16th, the US Securities and Exchange Commission (SEC) filed a complaint against Goldman Sachs in US District Court (linked below) alleging that the firm defrauded customers by selling investments in subprime mortgages while surreptitiously betting against the same investments in separate transactions. The SEC's complaint additionally alleges that Goldman’s conduct “contributed to the recent financial crisis by magnifying losses associated with the downturn in the United States housing market…”

Goldman Sachs is arguably the most powerful and visible investment bank in the world, and so the ramifications of the SEC’s charges will likely tarnish not only the image of Goldman Sach’s, but that of the entire US banking industry. The SEC’s complaint also raises serious questions and concerns about the nature and character of banking as a profession.

Goldman Sachs Tower, Jersey City, NJ

I remain dumbfounded by the apparent current state of financial services and banking in the US. Clearly, the banking industry is in desperate need of reform at the top.

SEC Complaint

The Power of Story - The Story Paradigm

by Tom Atlee © Co-Intelligence.org

In the field of co-intelligence, stories are more than dramas people tell or read. Story, as a pattern, is a powerful way of organizing and sharing individual experience and exploring and co-creating shared realties. It forms one of the underlying structures of reality, comprehensible and responsive to those who possess what we call narrative intelligence. Our psyches and cultures are filled with narrative fields of influence, or story fields, which shape the awareness and behavior of the individuals and collectives associated with them.

Story-reality is the reality that we see when we recognize that every person, every being, every thing has a story and contains stories -- and, in fact, is a story -- and that all of these stories interconnect, that we are, in fact, surrounded by stories, embedded in stories and made of stories. When poet Murial Rukeyser tells us "the universe is made of stories, not atoms," she's describing story-reality. Ultimately, story-reality includes any and all actual events and realities, but experienced as stories, not as the more usual patterns -- objects-and-actions; matter, energy, space, time; patterns of probability; etc. Story-reality is made up of lived stories.

Lived stories are those real-life, actual stories that are happening in the real world all around us all the time. The actual unfolding events relating to any one actual entity or subject comprise that entity's or subject's lived story. Everything that exists has, embodies and participates in many lived stories. The way to co-intelligently engage in story-reality is to become sensitive to lived stories... to learn about the lived stories of people, places, things... to share our own lived stories... to discover how all these stories intersect, who or what is in the foreground and background of each other's lived stories. Ultimately, this provides the guidance we need to find our own most meaningful place in the universal story.

While analysis is good for control and prediction, story-sensibility is good for understanding meaning and role. [italics added]

Narrative intelligence is the ability (or tendency) to perceive, know, think, feel, explain one's experience and influence reality through the use of stories and narrative forms.

It includes:

• the ability and tendency to organize experience and ideas using stories and narrative patterns (an excellent example of this is the use of myth, which defines and discusses concepts -- such as archetypes -- in narrative form)
• the tendency to understand things better when they are presented in the form of a story (and sometimes to have trouble understanding things when they aren't presented as stories)
• the capacity to sense the importance of context, character, history, etc., in any explanation -- and dissatisfaction when these are omitted
• dissatisfaction with isolated events and abstract ideas, out of context
• an ability to sense or imagine the stories of people, objects, places; the ability to accurately guess where something (or someone) comes from, what has happened to it, where it is going, what it means
• curiosity about the stories behind things, and an ability to investigate such stories
• a tendency to make up stories, plausible or fantastic, to illustrate a point
• the ability to maintain a repertoire of stories (real and imaginary) to convey meanings; the ability to access that repertoire
• the ability to sort out and describe what has happened to oneself or others, often with a richness of context and detail, and often with great relish
• the ability to place and remember events in sequence
• the ability to envision chains and webs of causation
• the tendency to build scenarios (stories of possibilities); an ability to plan and think strategically
• a love of stories
• the ability and tendency to see people, places and things in terms of their function in a story (very helpful for novelists picking up tidbits from the lives around them for use in their creative work)
• resonance with the stories of others; the ability to see another's viewpoint when presented with the stories which underlie or embody that viewpoint
• the ability to discover themes in the events of a life or story
• the ability to recognize (or select) certain elements as significant, as embodying certain meanings that "make sense of things"
• the ability to build a story out of randomly-selected items
• the ability to use stories as memory-enhancing devices (such as remembering a phone number by making the digits into characters and weaving them into a story).

Story fields are fields of influence or patterns of dynamic potential that permeate psycho-social space and influence the lives of those connected to them. They are made up of many mutually-reinforcing stories (myths, news, soap operas, lives, memories) and story-like phenomena (roles, metaphors, archetypes, images). A story field paints a particular picture of how life is or should be, and shapes the life within its range into its image.

The American Way of Life is a powerful story field, which includes everything from principles like freedom and the pursuit of happiness, to stories of cowboys and rags-to-riches heroes, to metaphors like the melting pot and the safety net, to images like the Statue of Liberty and the flag. It is communicated by movies, men in business suits, advertisements, college catalogues, and mall displays -- among many, many other things. It takes immense effort to resist or change it. Anyone or anything which doesn't live within this story-sea and move with its currents doesn't seem quite American.

Psychological, organizational or social transformation is usually preceded or accompanied by a change in the story field governing that system. It is therefore usually non-productive to try to change forms and habits without changing the story fields that hold them in place. Once the story field is changed, subsidiary patterns tend to realign rapidly. (This process is part of what has been called a paradigm shift.)

Co-intelligent cultural transformation necessarily includes the co-generation of co-intelligent story fields. This would include examples of co-intelligence in action, visions of how things could be more co-intelligent, biographies of co-intelligent people, fiction illustrating the dynamics of co-intelligence, co-intelligent myths and poems, academic reframing of numerous other subjects in terms of co-intelligence, people actually living co-intelligently, the clarification and use of special roles (like elder and partner) associated with co-intelligence, etc.

Reproduced with permission of Co-Intelligence.org

The Most Significant Developments of 2011 with Trends in 2012

From Jesse's Café Américain Copyright © 2011 Droit d'Auteur

As always the four great variables in human history are war, weather, disease, and religion.

Weather includes a wider range of natural phenomenon, and similarly religion includes secular movements such as fascism and communism that are essentially godless religions that involve the ordering of the relationship of the individual with a higher power that is not supernatural.

I do not address stocks, including the miners, specifically as I see that investment sector as extraordinarily risky. Tell me what the Fed and ECB will do and I will tell you how stocks will perform. That is the nature of this market.

As I am comfortable with stagflation, stocks most likely will not perform well in real terms. However, they could be targeted by the Fed as they implement nominal GDP growth and it puts more weight on selective inflation within the stagnant real economy.

Stocks tend to play the role of a variable hedge in my forecast and my own portfolio. The bigger investments are bonds, including cash which is a bond of zero duration, and alternative currencies like gold and silver, oil and income producing physical assets.

1. Wall Street dropped some of its pretense to fairness and softer forms of fraud and resorted to overt theft as MF Global stole significant sums of money, bonds, and bullion assets directly from customer accounts, under the eyes of the regulators, and transferred the money to its global bankers who refused to give it back.

Trend: Theft by the financiers will continue and intensify. The victims will be vilified to blunt public reaction.

2. The Eurozone came under unremitting assault by the ratings agencies and their associated banks and hedge funds. The Euro is an inherently 'difficult' currency to manage and has always been more susceptible to broad swings in value. This is because it is an economic union without a comprehensive political and financial union. It more closely resembles the original thirteen states of the US under the Articles of Confederation than it does a comprehensive Republic.

Trend: The Eurozone will continue to struggle to find a balance between political and financial factors, and will evolve into a stronger union of fewer members. Germany and France will continue to emerge as the great Western European power. The UK will be preoccupied by its own set of severe internal problems and regional unrest as austerity bites deeply. The UK will begin to act as more of an Anglo-American agent in the Eurozone. It may take on more of the character of an Orwellian state.

3. The Federal Reserve is expanding its power as a monetary authority and regulator of the financial system in an extra-Constitutional manner. The Fed is determined to fight the deflationary forces of global trade and credit contraction by expanding its balance sheet. They have little fear of inflation. Hyperinflation is highly unlikely in the absence of an exogenous shock. Stagflation is the new normal disguised somewhat by government statistics.

Trend: The Fed will start a new program of 'nominal GDP targeting' without stated limits in size of activity, as it will be defined by the scope of its objectives. The bond bubble will continue particularly in the long end of the curve. It will falter and breakdown at some point, but this is not likely in the near term unless some external standard is imposed or exogenous force intervenes.

4. A currency war is well underway in the aftermath of the closing of the gold window and the erosion of the Bretton Woods agreement, into an uneasy floating exchange rate system known informally as 'Bretton Woods II.' This currency war manifests in currency devaluations and pegs in support of mercantilism, particularly in the developing countries. It is a form of neo-colonialism supported by the great multinational corporations.

Trend: Global trade will begin to come under greater political assault as the exchange rate mechanism fails to impose a reasonable balance on the flows of goods and capital. The SDR is the most likely replacement for the US dollar as the world migrates towards a dual currency regime with one currency for domestic only use and an international unit for the settlement of world trade. The composition of the SDR will be a major point of contention between the BRICs and the Anglo-Americans.

5. The US political process is dominated by Big Money, a system in which a small number of people choose the candidates which will be allowed on the final ballot despite great pretense of a selection process and primaries. Despite the usual emotional heat expressed by a minority on each side in any competitive process, the end result is that no candidates can be chosen without being vetted and approved by the monied interests. This tends to continue to promote and support a status quo.

Trend: There may be a third party candidate, and perhaps one other fourth party of any real significance, but the end choice will be between Obama and Romney who are the corporate candidates. Strong voter dissatisfaction will cause minority parties to secede from the two major political parties, including at least one crypto-fascist movement and one progress movement. Watch for a rising current of racism, and attempts to make prejudice socially acceptable, and a growing class hatred. There will be major riots and demonstrations each summer from now until 2020 or a return to representative government.

6. As the global monetary regime continues its change, the US dollar continues to be stretched thinly. Despite all the odds and strong opposition from Western central banks and monetary authorities, gold has sustained an eleven year bull market.

Trend: Gold is in a bull market that will last until around 2020, or until the global monetary system reaches a sustainable equilibrium with a replacement for the US dollar as the reserve currency that is acceptable to the new economic powers. Silver and gold will continue to move with significant volatility as their prices increase. Bonds are the current asset bubble. At some point this may break as the housing market has done, and this will have a negative impact for gold if interest rates on the short end turn positive. This may not happen if inflation increases faster than interest rates rise.

7. China and Russia have replaced their command and control communist economies with command and control oligarchies. The power of China is the exploitation of labor, and of Russia, natural resources. Despite their calm outward appearance, there is significant turmoil beneath the surface, often regional in nature.

Trend: The governments of the world will continue to be shaken by the restructuring of the world economy. Change and calls for reform will most often be met by repression, often harsh. The world will continue to develop into three or four spheres of influence, with the greatest unrest and contained wars on the fringes of those spheres. The greatest region of conflict will remain where Europe meets Asia, and Asia meets the subcontinent.

I hesitate to put forward such a gloomy outlook, but this is in keeping with the forecast I put out in 2005 and it seems that most of the trends have occurred and even intensified. This is a period of great change, and this presents both risks and rewards.

And as always, against the backdrop of great events, while nations rise and fall, the life of the ordinary family goes on. 'There are these three things that endure: faith, hope and love, and the greatest of these is Love,' for it is the highest likeness to God in this world.

Republished with permission of Jesse's Café Américain

Source: The Most Significant Developments of 2011 with Trends in 2012 (2011, December 31), Jesse's Café Américain.

Bankster Capitalists Beware

An Australian hedge fund has filed a complaint against Goldman Sachs in US District Court (linked below) over an investment in a subprime mortgage-linked security that contributed to the fund's demise in 2007. The complaint details how Goldman pitched the deal to the hedge fund even as the bank's sales team and mortgage traders knew the market for mortgage-linked securities would likely crumble. The complaint also alleges that a Goldman senior executive described the offering as “one shitty deal” just prior to the sale to the hedge fund. The Australian hedge fund is seeking to recoup $56 million in losses from Goldman, together with $1 billion in punitive damages. Goldman Sachs denies any wrongdoing in the case.

The complaint is yet another public relations setback not only for Goldman Sachs, but for the investment banking industry as a whole. Goldman’s alleged malfeasance and conflicts of interest continue to raise serious questions about the nature and character of investment banking as a profession. Bankster capitalists beware.

Basis Yield Alpha vs Goldman Sachs

Related Posts:

Financial Services and Banking are in Desperate Need of Reform at the Top

Independence Day

IN CONGRESS, JULY 4, 1776

The unanimous Declaration of the thirteen united States of America

When in the Course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security. — Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world.

He has refused his Assent to Laws, the most wholesome and necessary for the public good.

He has forbidden his Governors to pass Laws of immediate and pressing importance, unless suspended in their operation till his Assent should be obtained; and when so suspended, he has utterly neglected to attend to them.

He has refused to pass other Laws for the accommodation of large districts of people, unless those people would relinquish the right of Representation in the Legislature, a right inestimable to them and formidable to tyrants only.

He has called together legislative bodies at places unusual, uncomfortable, and distant from the depository of their Public Records, for the sole purpose of fatiguing them into compliance with his measures.

He has dissolved Representative Houses repeatedly, for opposing with manly firmness his invasions on the rights of the people.

He has refused for a long time, after such dissolutions, to cause others to be elected, whereby the Legislative Powers, incapable of Annihilation, have returned to the People at large for their exercise; the State remaining in the mean time exposed to all the dangers of invasion from without, and convulsions within.

He has endeavoured to prevent the population of these States; for that purpose obstructing the Laws for Naturalization of Foreigners; refusing to pass others to encourage their migrations hither, and raising the conditions of new Appropriations of Lands.

He has obstructed the Administration of Justice by refusing his Assent to Laws for establishing Judiciary Powers.

He has made Judges dependent on his Will alone for the tenure of their offices, and the amount and payment of their salaries.

He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people and eat out their substance.

He has kept among us, in times of peace, Standing Armies without the Consent of our legislatures.

He has affected to render the Military independent of and superior to the Civil Power.

He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation:

For quartering large bodies of armed troops among us:

For protecting them, by a mock Trial from punishment for any Murders which they should commit on the Inhabitants of these States:

For cutting off our Trade with all parts of the world:

For imposing Taxes on us without our Consent:

For depriving us in many cases, of the benefit of Trial by Jury:

For transporting us beyond Seas to be tried for pretended offences:

For abolishing the free System of English Laws in a neighbouring Province, establishing therein an Arbitrary government, and enlarging its Boundaries so as to render it at once an example and fit instrument for introducing the same absolute rule into these Colonies

For taking away our Charters, abolishing our most valuable Laws and altering fundamentally the Forms of our Governments:

For suspending our own Legislatures, and declaring themselves invested with power to legislate for us in all cases whatsoever.

He has abdicated Government here, by declaring us out of his Protection and waging War against us.

He has plundered our seas, ravaged our coasts, burnt our towns, and destroyed the lives of our people.

He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation, and tyranny, already begun with circumstances of Cruelty & Perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.

He has constrained our fellow Citizens taken Captive on the high Seas to bear Arms against their Country, to become the executioners of their friends and Brethren, or to fall themselves by their Hands.

He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless Indian Savages whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions.

In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Prince, whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people.

Nor have We been wanting in attentions to our British brethren. We have warned them from time to time of attempts by their legislature to extend an unwarrantable jurisdiction over us. We have reminded them of the circumstances of our emigration and settlement here. We have appealed to their native justice and magnanimity, and we have conjured them by the ties of our common kindred to disavow these usurpations, which would inevitably interrupt our connections and correspondence. They too have been deaf to the voice of justice and of consanguinity. We must, therefore, acquiesce in the necessity, which denounces our Separation, and hold them, as we hold the rest of mankind, Enemies in War, in Peace Friends.

We, therefore, the Representatives of the united States of America, in General Congress, Assembled, appealing to the Supreme Judge of the world for the rectitude of our intentions, do, in the Name, and by Authority of the good People of these Colonies, solemnly publish and declare, That these united Colonies are, and of Right ought to be Free and Independent States, that they are Absolved from all Allegiance to the British Crown, and that all political connection between them and the State of Great Britain, is and ought to be totally dissolved; and that as Free and Independent States, they have full Power to levy War, conclude Peace, contract Alliances, establish Commerce, and to do all other Acts and Things which Independent States may of right do. — And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our Lives, our Fortunes, and our sacred Honor.

~ John Hancock

New Hampshire:
Josiah Bartlett, William Whipple, Matthew Thornton

Massachusetts:
John Hancock, Samuel Adams, John Adams, Robert Treat Paine, Elbridge Gerry

Rhode Island:
Stephen Hopkins, William Ellery

Connecticut:
Roger Sherman, Samuel Huntington, William Williams, Oliver Wolcott

New York:
William Floyd, Philip Livingston, Francis Lewis, Lewis Morris

New Jersey:
Richard Stockton, John Witherspoon, Francis Hopkinson, John Hart, Abraham Clark

Pennsylvania:
Robert Morris, Benjamin Rush, Benjamin Franklin, John Morton, George Clymer, James Smith, George Taylor, James Wilson, George Ross

Delaware:
Caesar Rodney, George Read, Thomas McKean

Maryland:
Samuel Chase, William Paca, Thomas Stone, Charles Carroll of Carrollton

Virginia:
George Wythe, Richard Henry Lee, Thomas Jefferson, Benjamin Harrison, Thomas Nelson, Jr, Francis Lightfoot Lee, Carter Braxton

North Carolina:
William Hooper, Joseph Hewes, John Penn

South Carolina:
Edward Rutledge, Thomas Heyward, Jr, Thomas Lynch, Jr, Arthur Middleton

Georgia:
Button Gwinnett, Lyman Hall, George Walton