Join in Buy Nothing Day
Since our capitalist economy depends on us citizens consumers maxing out our credit cards to buy a lot of crap we don’t need, do we worsen the economic meltdown if we participate in Buy Nothing Day today? Personally, I believe that the financial crisis we’re experiencing is the natural consequence of Americans and others living an unsustainable lifestyle. From Adbusters website:
Suddenly, we ran out of money and, to avoid collapse, we quickly pumped liquidity back into the system. But behind our financial crisis a much more ominous crisis looms: we are running out of nature… fish, forests, fresh water, minerals, soil. What are we going to do when supplies of these vital resources run low?
There’s only one way to avoid the collapse of this human experiment of ours on Planet Earth: we have to consume less.
It will take a massive mindshift. You can start the ball rolling by buying nothing on November 28th. Then celebrate Christmas differently this year, and make a New Year’s resolution to change your lifestyle in 2009.
It’s now or never!
From Charles Eisenstein at Reality Sandwich comes the most clear and concise explanation of the role Wall Street greed has played in our current economic crisis that I’ve yet seen.
Suppose you give me a million dollars with the instructions, “Invest this profitably, and I’ll pay you well.” I’m a sharp dresser — why not? So I go out onto the street and hand out stacks of bills to random passers-by. Ten thousand dollars each. In return, each scribbles out an IOU for $20,000, payable in five years. I come back to you and say, “Look at these IOUs! I have generated a 20% annual return on your investment.” You are very pleased, and pay me an enormous commission.
Now I’ve got a big stack of IOUs, so I use these “assets” as collateral to borrow even more money, which I lend out to even more people, or sell them to others like myself who do the same. I also buy insurance to cover me in case the borrowers default — and I pay for it with those self-same IOUs! Round and round it goes, each new loan becoming somebody’s asset on which to borrow yet more money. We all rake in huge commissions and bonuses, as the total face value of all the assets we’ve created from that initial million dollars is now fifty times that.
Then one day, the first batch of IOUs comes due. But guess what? The person who scribbled his name on the IOU can’t pay me back right now. In fact, lots of the borrowers can’t. I try to hush this embarrassing fact up as long as possible, but pretty soon you get suspicious. You want your million dollars back — in cash. I try to sell the IOUs and their derivatives that I hold, but everyone else is suspicious too, and no one buys them. The insurance company tries to cover my losses, but it can only do so by selling the IOUs I gave it!
So finally, the government steps in and buys the IOUs, bails out the insurance company and everyone else holding the IOUs and the derivatives stacked on them. Their total value is way more than a million dollars now. I and my fellow entrepreneurs retire with our lucre. Everyone else pays for it.
This is the first level of what has happened in the financial industry over the past decade. It is a huge transfer of wealth to the financial elite, to be funded by US taxpayers, foreign corporations and governments, and ultimately the foreign workers who subsidize US debt indirectly via the lower purchasing power of their wages.
Read Eisentein’s entire post at: Reality Sandwich | Money and the Crisis of Civilization.
Related story: Worker dies at Long Island Wal-Mart after being trampled in Black Friday stampede
So what’s the one action you’re going to take to move toward a more sane and sustainable lifestyle?
Friday, November 28th, 2008No Comments »
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