the raw and the cooked

May 08, 2008

The Great CPI Hoax

Kevin Phillips in The Huffington Post on "The Great 'No Inflation' Hoax." If inflation is systematically understated, who wins, who loses and who gets even? (Consumers lose, employers win, financial firms generally win.) Will Congress act to restore accurate accounting for inflation? Phillips thinks not. How, then, can well-meaning "social investors," or "philanthropists" restore transparency to our financial markets, and keep them honest? Phillips sees the most likely counterforce coming from forgeign investors who will, unless we clean up our inflation numbers, lose faith in our markets,  puting their money elsewhere, driving the dollar lower,  and with it our standard of living.   

May 02, 2008

The Role of Philanthropy in a Security State

Headinsand The comment on an earlier post by my old nemisis, Captain Blowtorch, raises certain life and death issues for philanthropists. May I expound upon them? (Hop in and be so kind as to pull the lid closed on the dumpster. Not all messages are for all ears. This is strictly need to know. You never know these days who is listening or for what purpose or how what you say may be used against you in a court of law, or in some dark alley for that matter.)

The world we have is all screwed up. The world we want is very different. But the world we have is owned and operated by people with money and power who will defend their own interests by fair means and foul, up to and including rewriting our Constitution, torturing people, and having them assassinated. We all know this, right? And that is why we are silent about it? We know it, but we know not to talk about it? We know it is now to late to resist? There is no alternative?

Anyway, let's say that we are in fact still committed to the world we want, a world characterized by the rule of law, openness, transparency, freedom, economic opportunity, and justice for all. How, then do we work towards that world when it is anathema to those who profit from being above or outside the rule of law, and who benefit from operating by force and guile in secret and with impunity, while hurling down edicts, propaganda, laws and and swat teams on those who want nothing more than to have America's promise restored through loving and peaceful means?

What action items come to mind for the good people in this country to take our country back against the forces of darkness, including but not limited to Captain Blowtorch, and his compatriots in Wealth Bondage, a front some say, for the CIA? How about these steps?

  • "Many pieces loosely joined," or a network for a loving and peaceful version of  "net war."
  • Not secrecy, but brazen openness - loving kindness expressed openly in thought, word, and deed.
  • Awards and prizes and honors for whistle-blowers, truth tellers and dissidents
  • Think tanks with real thinkers in them
  • Political organizing outside the party system by all citizens to retore our Constitution
  • Media specializing in investigative journalism
  • A database of dissidents and whistle-blowers to track their mortality and morbidity against societal averages. The longitudinal data to serve as a starting point for further investigations if the population of dissidents and truth tellers proves more than normally susceptible to accident, disease or suicide.
  • Scholarship programs for budding young satirists
  • Investment programs that bypass Wall Street and put money to work on Main Street
  • Advisors who work with high capacity clients to determine how much capital the client can put to work for social good in imaginative ways, hedged against potential counter-measures.
  • Broad-based communications networks to activate citizens who are slowly waking up the the new realities of life in a security state.
  • Civic dialogues, formal and informal, online and off, to make us more at ease in discussing such things as dirty tricks, wet work, death squads, suicide teams, torture, lies in high places,  and how to turn that around to love, justice, and peace.
  • Artists, dramatists, novelists, singers, to help us form a shared consciousness, living in truth.
  • Philosophers, historians, critics, sociologists, and critical theorists to teach us how the weapons of the weak have been used in ages past to keep hope alive under oppression.

Now, look, let me make myself clear. I am not declaring war on Wealth Bondage, not even a covert or cold war. That would be suicide. I am as dependent upon the forces of Wealth Bondage as anyone else. I am deeply implicated in the status quo. Every dollar I have invested, every dollar I make, circulates around inside one or another institution of Wealth Bondage, or goes in taxes to Wealth Bondage projects, or piddles about in various Wealth Bondage philanthropies.  If Wealth Bondage goes down, so does my pension, my mutual funds, everything I have, as little as that might be. My clients are mostly Wealth Bondage bigshots. My generous patron is the CEO of Wealth Bondage; she who rules us all. I do not in any way want to jeopardize what little I have, and the little credibility I have earned by being a Faithful Servant and Trusted Advisor to Wealth Bondage Private Banking Clients. I have always been loyal to Wealth Bondage.  I buy into the concept. I have drunk the Koolaid. I am on board.  I pledge allegiance to Wealth Bondage.  I have no desire to become a lightning rod for whatever Wealth Bondage does to retain its control if challenged. Those people are morally insane. They will stop at nothing here or abroad. They creep me out. So, don't get me wrong. I am a happy camper. I am really just thinking that promoting civic philanthropy might be a good double bottom line social investment opportunity, catering to the needs of those wealth holders in Wealth Bondage who prefer democracy, or a more credible simulation of it.  The pro-democracy movement is a niche, a small one, but maybe profitable? High risk for high return? A piece at least of a prudent philanthropic social venture portfolio, if only as a hedge against the possibility that democracy and the rule of law might one day be restored, and the malefactors brought to justice? Surely, in Wealth Bondage there is room for a brand of philanthropy catering to a taste for even a niche product like democracy? It wouldn't change anything, it would keep trouble-makers occupied, and it would be good for business?

I am going to pitch Candidia, and see what she says. With any luck she will be my first investor.

(Tag, Catherine, you are it.)

April 20, 2008

Mapping The Philanthropic Ecosystem

The Ecosystem of Philanthropy

Who is part of your "better world" ecosystem? That is, if you want to create for yourself and those you love a better life in a better world, what other "players" impinge on you, for good or ill? And how might you, then, uplift both your own actions and the overall ecosystem so that a better world is possible? That is the line of thought that I have been pursuing within an informal network over the last several years. I will organize for my own use these observations under key names in my ecosystem.

Tracy Gary

Key actors in her vision are donor, advisor, and nonprofit. Key indicator of success is the number of dollars raised. Key driver of dollars raised is donor training to help the donor manage the planning process with advisors towards a more inspired, but also prudent result. As donors are trained to ask for philanthropic plans that very request will motivate more advisors to provide such plans.  Training for advisors would then be well-received, since tied to a practical result, that of meeting a real demand. Also, a key actor is the next generation, the children of the donor. If money goes to charity it might come at the expense of taxes first, but at some point it will come at the expense of inheritance. Hence, children must be raised and mentored in their roles as carriers on of a giving tradition. Nonprofits on this model become the convener of the appropriate training and conversation and network.

Tracy and I will present this vision to Advisors in Philanthropy at their Annual Conference next week. The following week I will present a version of it to Southeastern Council of Foundations.  We do have some early success stories. A number of other professionals have expressed interest in this way uplifting the philanthropic ecosystem.

Catherine Austin Fitts

A former investment banker, and former assistant director of HUD, Catherine seems to have stumbled upon the dark side of money and become for awhile an "enemy of the state," as she puts it with a smile, suffering the tribulations of Job, as a lesson in civics for herself and others. She is not keen on philanthropy, because she has seen where money, in certain cases, comes from, with whom it consorts behind the scenes, and how brutally those who control so much of the world's money and power behave when their insider games are outed or challenged. She has seen philanthropy used as cover or cleanser for the reputations of people who should probably be in jail for financial fraud, extortion, drug running, betrayal of the public trust, mere graft, or high crimes and misdemeanors. She also sees that philanthropy will be tolerated as a cleanser as long as it remains both upbeat and ineffectual. Philanthrocapitalism is also safe because it does not challenge, in fact personifies the hegemonic game.

You might think, then, that while Tracy is liberal that Catherine is a revolutionary Marxist taking her cue from Che. In fact she is a Christian Conservative taking her cue from Adam Smith and Jesus Christ, which makes her a dangerous mind. She is not asking capitalism to give way to socialism. She is demanding that capitalism live up to its own founding ideals: financial transparency, honest  book keeping, the rule of law, and the prosecution of criminals regardless of their wealth, rank, philanthropy, connections, or access to armed force, or criminal networks.

Catherine urges us to create a better, more financially intimate world, by withdrawing wealth from the rigged and gamed financial markets and reinvesting in places governed by the rule of law, maybe New Zealand, or maybe your home town, or among a circle of friends who have farms, small businesses, or a local bank.  As an investment banker she thinks bigger than that too, asking who will own the water supply, for example, in your town? Who will commandeer the food supply? Might we not form investment pools that would allow local decision makers to steward such resources for the good of the town, rather than, say, Nestles?

You can see that this is not your idea of "philanthropy," but the actors named by Catherine (the drug dealers, the slum lords, the corrupt governmental officials gaming the sub-prime mess, the investment bankers bringing for profit prisons to market, the private bankers who own the Fed, the governors owning prison stocks and passing "three strikes you're out" laws, the shadowy actors trading drugs for arms and arms for hostages,  the corrupt accountants of both business and government, the blackmailers and hit squads operating here and abroad to silence those who out the dirty game) are part of the same ecosystem in which philanthropy goes about its upbeat work.  Some capitalist like Boverton Beaver who has made billions out of buying companies in, say, the liquor business, gambling stocks, the porn business, or armaments, or in for profit prisons, might call himself a Double Bottom Line Social Investor and might start a double bottom line bakery employing at low wages the convicts on parole from the prison he owns up the hill from the ghetto, blighted by the drug lord whose Harvard educated son sits with Boverton on the board of the local hospital, or the home town newspaper, or serves on a Blue Ribbon Commission studying urban poverty.  That philanthrocapitalist might then endow a business school, or a chair in social venture capitalism, or might fund a DC Think Tank on Engaged Philanthropy, or on Pro-Market Public Policy, or might hire out the writing of any number of white papers and scholarly studies on metrics for double bottom line firms.  All this might then be applauded by leading philanthropy bloggers who, in their business life, consult to the banks and the brokerage houses with their captive philanthropy departments catering to private wealth from sources both light and dark, or who make their living managing Boverton's money. So the world closes back on itself in an ecosystem in which the herbivores, the carnivores, and the hominids thrive and prosper - up to a point, though that punctuated equilibrium is far from optimal from the standpoint of human flourishing. 

H. Peter Karoff, Amy Kass, Bill Schambra, and others Devoted to the Liberal Arts

What other actors? What are we leaving out? How about the teachers, writers, artists, prophets, and thinkers who are the masters of our spiritual, intellectual, ethical, and cultural traditions? (If you are not familiar with such figures you might think instead of Star Wars or Marvel Comics or Grand Theft Auto or the Matrix; those may be close enough to wisdom, if that is all you have and you don't know the difference.) If our better world is to be guided by what T. E. Hulme called "the best that has been thought and said," then we must listen to voices of the graces, or the holy spirit, or the muses,  or the voice that speaks out of the thunder, or the still voice we have been ignoring, or whatever one wishes to call that voice that rises in us when we are obedient to what is greater than ourselves, what is most alive and life-giving in our traditions. I could go on at great length on this point. Eloquence trumps power. The pen is mightier than the sword. Love conquers all. And the dead shall rise into eternal life, dead or not, as they live on within the tradition they would not betray, even at the cost of their own life, the ultimate gift.  As different as are the three figures mentioned above they share an almost helpless love for the life of the mind and of the spirit. When they discuss giving, it is within the shadow of Mt Ararat  within eyeshot of the ruined garden. I am not implying that they would get crossways with worldly wealth or power. We catch more flies with honey than with vinegar.

Phil to Thee

Well, you can see that the company I keep makes my head ache and buzz.  What I come down to is this: Whatever is the correct map of the ecosystem in which we live, whatever actors you see, or think you see, whichever you name, or fear to name, whatever your personal resources, you cannot blink the questions:

  1. What kind of person do you want to be?
  2. In what kind of world?

As you meditate on those questions, you will need your own vision of success, and a realistic model of your current situation - whether upbeat or dark or chiaroscuro. Given that vision of a better life in a better world, and given your assessment of what you are up against, you will have to make your own decisions, in the light of the traditions that speak to you and through you, as to how you will deploy your money, your time, your attention, your life energy, and your love within a risk profile that includes your assessment of the probability of success or failure under conditions you can barely discern. Each of us can see only a little.

Best Practices within a Learning Community

As we find our way, across this landscape, let us share what we see, share what we learn, mapping our terrain, and sharing the paths that lead out of the dark wood into the light. As you address the two questions above (and they cannot be evaded for the evasion itself is an answer), consider sharing what works and does not work so that we can collectively do better than we could alone. I am trying to take that approach here sharing my notes on what I am learning, and hope you will share as well, whether through a note to me, or on your own blog, or however you wish.  Perhaps if we live in truth, and speak what we know, and look out for each other, we  not only ameliorate specific ills,  and prosper in our own lives, but also uplift the overall ecosystem of which our efforts individually are but a tiny part. 

March 27, 2008

The Public Good and Its Stewards

Another kind of giving market:

U.S. Federal Trade Commission (FTC) chair Deborah Platt Majoras will leave her government post to work for Procter & Gamble (P&G), the largest U.S. consumer products company. Even though Majoras has excused herself from FTC matters that may impact P&G and will need to follow a year-long "cooling off" period, Multinational Monitor's Robert Weissman is concerned. "P&G is the leading company involved in 'buzz marketing,'" he writes. When Commercial Alert petitioned the FTC to investigate buzz marketing as "fundamentally fraudulent and misleading," the watchdog group cited P&G's teen buzz marketing division, "Tremor." Majoras's FTC agreed that the "assumed independence" of a buzz marketer might mislead consumers, but decided against further investigation or action. "The P&G case -- involving a quarter of a million teens who are not instructed to disclose their relationship with the company -- apparently was not noteworthy enough," Weissman concludes. An FTC ethics staffer said of Majoras's new job, "It is how things work. The nature of the business is the revolving door.

If we were doing a double bottom line analsysis of P&G would we include capturing the FTC Chair as a plus or a minus? Or does it net out to a wash? (Plus on the profit line, negative on the social good line?) Who is doing these calcs? Jed Emerson? I mean, who keeps score for us?

March 04, 2008

Diana Sieger on Big Give

Diana Sieger, President of Grand Rapids Community Foundation, on Oprah's Big Give. She asks us to pull our eyes off the screen and get active in giving locally. Giving is not something you have to enjoy vicariously.

February 27, 2008

Gift as Expressive Action

Might we ask donors such questions as these?

  • What stories are told about your parents and grandparents?
  • What stories would you like told about you?

A narrative of heroism, identity formation, challenge and achievement - isn't that a context of philanthropy? How does the gift (that possibly magnificent gesture) fit in the story of a life? A heroic act? Propitiation? Remembrance? Wily act of self advancement? Magnanimous act in keeping with a certain station in life? Strategic intervention as a community or cause hangs in the balance? Each gift, no less than any other dramatic gesture, is a plot point and an action expressive of character. Anyone who says otherwise ("No! gifts are or should be efficient market-style transactions! A gift is a businesslike tactic!") is writing his or her own story, though blind to how it might be read. To consider the gift as a tactic in a market context is to paint the giver's portrait in oils: Sensible business person, standing with one hand on his computer in a well appointed office with a view of the city as seen from a high window.  Such a symbolic portrait ("The Benefactor as Social Investor") already tells the story of a life, an ethos, a world, an era. (Doomed.)

February 08, 2008

Banking on Philanthropy

I was included today on a conference call with a major bank. They are doing a national survey of high net worth individuals (HNWIs) on philanthropy. The blue ribbon panel (on which I am an improbable member) will guide the survey and help the bank position itself as a "thought leader in philanthropy."  The conversation was extremely professional, well-informed, and even idealistic. All concerned had a commitment to giving and society. Interesting, all in all. And, probably on balance it will be a big contribution to the field.

Patronage of philanthropy: Who funds "thought leaders"? Is there a space from which the conversation can be convened for all comers from the Dumpster out behind a mega-bank? Or from the public square, where the voices of high net worth citizens - fine prospects for financial services, for philanthropy, and for legal services, as well as for luxury goods, and donations to lobbyists and political candidates - speak for themselves, one to another, and many to many, among the undeserving poor, and other losers, rather than having themselves debriefed by surveyors on a phone bank? The insights, with a blue ribbon commission funded by a bank, flow to the central power, whose power and prestige are then elevated, and that is a good thing, I guess. Knowledge/Power flows to the center and is then disseminated, as the bank's study will be, benefiting all, with the bank the well positioned middle term.

What is missing is the raucous buzz of conversations forming on the margins, finding their own center unaided, and moving knowledge and power away from the centralized well-funded hubs with their avid interest in the High Net Worth Individuals (HNWIs). There are people like me in these big financial hubs, with training in both finance and the liberal arts, or in religion, who want to ask you (if and only if you are rich), "What is the meaning of life - in general, and yours in particular? And, where does giving fit? And would you like to talk now that we have clarified your values, to our charitable trust department, our dynasty trust department, our investment unit, our financial planning department, our estate planning department, our foundation experts, our donor advised fund unit, our legal unit, our IPO Unit?" I do that kind of thing on company time, and I am proud of it. How better for an English major down on his luck to make an honest buck off being a facilitator of wealthy people and their values, however banal?

But out here in the street, by the Dumpster, after work, hanging out with my questionable friends, sharing a bottle of Thunderbird, I am doing the real deal, for which no company would pay me, to put it positively, or mildly. What we do for love of our fellow human beings, for love of our country, we do in the shadows, pro bono publico. "Truth is a bitch who must to kennel," so said King Lear's Fool, or words to that effect. If you see someone coming calling my name, and he or she looks like they work for a bank or whatever, tell them I am not here. I am on the lam, blogging as a citizen when no one any longer is a citizen, except insofar as they are being stroked and pumped for money or votes, or the values that can be used to get them to put their money to work through a financial center for the benefit of all.

They say that Diogenes was kicked out of his home town for debasing the currency. It is a scandal: Standing naked on the street, giving away gold coins to rich people when counterfeit passes current; and then getting busted for making a mockery of social capital markets, philanthropy, thought leadership, values-based planning, the whole blessed game.

I will file this post under "the raw and the cooked." Free range philosophers are still the best, if taken with a grain of salt. Hey all you HNWIs! Stop awhile! Don't you cross the street to avoid us! Come on, Mister! Madame! Come! Get naked like us, and don't hog that bottle. We are all just humans here. We are all going to die and turn into the same stinking goo. Tell us all about what matters most to you, Mr and Mrs Rich Person. We Ultra Low Net Worth Individuals (UHNWIs) are soooo interested in the world you want. "No pet will die without a home"? "A World Class Opera House in Dallas"? How touching! By the way, how much cash you got in that bank over there? I hope this is not too personal, but now that we are friends, and I am practically your Trusted Advisor, could you float me a loan? I am finding myself a bit short at the end of the month.

January 30, 2008

Tom Williams Started Givemeaning to Redeem Himself, He Says

Tom Williams of GiveMeaning responding to David Baines in the Vancouver Sun:

But really there isn’t anything new here. I have been consistent and candid in suggesting that the motivation to start GiveMeaning lay in part to redeem myself and correct the course that I seemed to be headed-down.

Metanoia?

January 19, 2008

Speaking of Philanthropy at Hudson Institute: My Notes as a Morals Tutor

Kristol Do you know this man? Irving Kristol, considered the founder of American neoconservatism. He sat smiling genially, in attendance at our panel at Hudson. If you read the piece I wrote for that (download 4 page.pdf), you will see it is a very dry satire of the neconservative vision of strategic philanthropy. It was with great pleasure that I heard Bill Schambra read the case study aloud, as Irving Kristol himself caught my eye and smiled. I thought I head Bill's voice crack just a tad as he read the part about the wealthy neocon philanthropist funding a think tank to reduce income taxes, eliminate estate taxes, and roll back taxes on his oil and gas businesses, and so do good for society by creating jobs. On the wall of the Green Room where we had lunch prior to the talk, there was Dick Cheney, seen from below, in a hero pose, against the Hudson banner.  After our recent controversies here about Holden, I felt very safe at Hudson.

Being with Dr. Amy Kass, author of Giving Well Doing Good was a great pleasure. She loves the humanities so deeply and teaches them so well, that political differences seem just an excuse for a good conversation among civic friends. I also had a chance to meet her distinguished husband, Leon Kass. A certain Mad Monk introduced himself to me, in a conspiratorial whisper. And several people came up to confide that they read Gifthub. I got to shake hands with William DennisTim Walter, Katherine Jankowski, and Martin Wooster. After the panel, I had a drink with Albert Ruesga in the Mayflower Hotel (where Monica used to stay). Actually, Albert got so animated talking about grassroots social change that he spilled his martini all over my moth-eaten business suit. I had Thunderbird on the rocks with a twist. Then back home to the Dumpster. There may be no outside of Wealth Bondage, but I would love to go back sometime to our Command & Control Center.  Here  in Dallas, on the  margins  of  empire, it's pretty dull by comparison. They just tell us what they want us to know, and we are supposed to act like we believe it.

December 01, 2007

Sustainable Wealth Bondage

Jim Freeman: "Are we the cultural equivalent of Wade Dokken’s carbon offsets?" Replace "Wade Dokken" with "Candidia Cruikshanks" and the answer would be "yes," whether you live in Dallas, Montana, or wherever. We had best make our peace with how things are. Alice Waters sold out for $500,000. I for permission to live in a Dumpster out behind Wealth Bondage. We all have a price.

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