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Why did the Global Financial Crisis actually happen? The best explanation I have come across was when about this time last year Canadian professor Jim Stanford came to speak at my uni – he tries to demystify the economy by explaining the concepts and jargon in a simple, easily understandable way.

What is the economy? It is WORK. ‘The total sum of work we do to meet our needs and wants.’ The economy is about meeting human needs.

Jim separates the economy into:

1. the “real economy” – that is, jobs that create physical value.

2. the “paper economy” -that is, jobs that trade paper. These jobs are based on speculating on the real economy, and make money from others’ debt.

In our present system, the paper traders are getting richer as the physical traders get poorer. For every $1 of real economy, $100 of paper economy is traded. That means $100 is circulated by people speculating on that $1, and essentially getting paid to do nothing of real value – just buying and selling financial assets.

It makes sense when you think about it. What jobs pay the most in our society? Stock traders. Finance. Bankers. Business. That’s why Dads like mine want me to study Business and work my way up the ladder of a big corporation – it equals money and security. But what else does it mean? What value am I adding to society if I do this?

Where do our foods, clothes, housing materials come from? Who gets paid the least down the chain of production? The people picking the raw ingredients that make these things, and the people that put the goods together. People getting paid almost nothing (if not completely nothing) for their work.

When you get a big profit from trading on the stock market – where is that money coming from? I’m not pointing fingers at those who trade or own shares, saying, “ooooo you’re such a bad person.” I have shares too. Actually any of us who have bank accounts or superannuation funds, have shares on the stock market. Our shares contribute to the problem but I am part of the 85% of the population of developed capitalist countries who is paid for my employment, more or less economic slaves to the system as I need to earn money to pay my rent, my credit card bill, and  pay for my next holiday. It is logical that when we invest in shares, or play with shares on the stock market, we hope that we will gain the greatest possible profit from our investment of time and/or money. These are the rules of the game we presently play.

These rules also define the responsibilities of CEOs to make the most profit they can, without regard for people and our planet, and pay these big boys very big bucks to do so. The main problem with this system lies with the 2% of the population of developed capitalist countries who own large majorities of the paper wealth in the world, with banks at the top given their license to print money and lend it out in debt. (Side noting that the other 13% work as farmers or in their own small businesses).

Jim says it isn’t fair that the workers suffer every time the system collapses as we didn’t cause the problem. It was the rules of the system that caused it, and unless we change the rules, it will continue to happen again and again. Jim says we need to ‘hold the banking system accountable to meeting society’s need for steady credit, or step in and do it ourselves’ (we can print money too).

Solutions include:

1. Demystify economics – explain where the crisis came from and understand why something needs to change.

2. Redeem the value and legitimacy of real work and production – based on a new model of growth / stability.

3. Don’t let the bank make us pay for their mistakes:

– re-regulate finance

socialise credit creation (ie learn to do it ourselves through public banks and credit unions)

– look for comprehensible credible alternatives that also address global problems of poverty and pollution

– get rid of useless industries

stop making shit

Jim explains it far better than these rough notes I took from his lecture.


There are more of his lectures on youtube – well worth a watch. Or his book:

Also, although this wasn’t from my notes from Jim’s lecture, I think surely we need to do something about the tax havens. Did you know that half of all world trade currently passes through tax havens? Apparently they ‘allow rich people and corporations to stash trillions in assets that could provide governments with at least $250 billion a year in tax revenues.’[1]

Look, I don’t like paying tax, I believe I still own a few shares (while they’re probably not worth much any more) and I can’t complain that my job is based on processing information (I’m not really sure if universities count as paper economy or real economy…) but I do not like the fact that the richest pay the least tax and the poorest pay the most…

According to the book called Conspiracy of the Rich I’m listening to at the moment by Robert Kiyosaki (author of Rich Dad Poor Dad) if you can’t change the system, you can still opt out of playing their game.

“Is the love of money the root of all evil? Or, is it the ignorance of money? What did you learn about money in school? Have you ever wondered why our school systems do not teach us much—if anything—about money? Is the lack of financial education in our schools simply an oversight by our educational leaders? Or is it part of a larger conspiracy? Regardless, whether we are rich or poor, educated or uneducated, child or adult, retired or working, we all use money. Like it or not, money has a tremendous impact on our lives in today’s world.” [2]


Preserving The Pyramid: why things are the way they are

Some great YouTube clips explaining our economic and political system

Where are we now, where are we going, and how?

Rethinking the Pyramid



[1] Susan George, ‘We Must Think Big’, New Scientist (18 Oct 2008). p. 51.

[2] Robert Kiyosaki,

Photo: Graffiti in the back streets of Sydney.

Chocolate slavery and the tragic flaw of humanity in the 21st century

Didn’t they abolish slavery a couple of hundred years ago? Well no – it continues… and it continues such to provide the “haves” with what (in my opinion) is the most delicious tasting delightful experience of all my being: chocolate.


In my opinion there is NOTHING worse than physical slavery and nothing better than chocolate, and so I face the greatest polarity in my world: the best and worse wrapped into a block of bitter sweetness.

Can you believe that in today’s day and age some humans are deceiving other humans into leaving their homes, friends and family, imposing work on them by force (including whips), and without payment? I guess sexual slavery is worse than chocolate slavery, but in my opinion neither forms of slavery should be happening in the 21st century.

Why is slavery allowed to exist? It’s quite simple. It’s all because of the stock market.

The stock market? Yes. Because through the stock exchange responsibility for the consequences of a company’s actions are diffused.

This brings me to what I see to be the tragic flaw of human society in the 21st century: the rules of this game we call business. The first thing I learned at UTS when doing my Bachelor of Business was:

1. Investors invest in shares to make profit on their investment. Many investors live off these rewards, and don’t have to work. Many other people have jobs as intermediaries, buying and selling paper, to make profit from paper. People are making money without adding any physical value to the world.

2. CEOs have one most-important responsibility: to make profits for shareholders. For this he or she receives generous financial rewards, even if it involves decreasing the quality of the product for customers, decreasing the pay or conditions for employees, or destroying the planet.

While shareholders most likely value the needs of fellow and future humans and life on earth, the rules of the game dictate that money invested into shares is done to receive that profit.

There is clearly a disconnection between shareholders and the non-monetary outcomes of their investment. Is this a connection we really want to own up to?

I have some shares, (although I think they aren’t worth anything anymore after the stock market collapsed)…  I also have a little money in the bank and a little superannuation, so let’s take the scenario that all of this is actually a great investment of my time, and is something I am relying on for my future – would I really want these shares to earn less money?  No, of course not. With the rules as they stand, I would want my shares to earn as much as they can or else I would invest my money somewhere else.

I have friends (mainly from my business degree) who work in finance. Would I really want to put my friends out of a job? No. No I wouldn’t. What if the consequence of their jobs, earning lots of money from trading paper, are part of the cause of the poverty of people producing the physical goods we enjoy? I still choose my friends over these people I don’t know.

What if the result of my shares and their finance jobs is human slavery? That is where I draw a thick black line.

That’s where I say to my friend that the unhappiness they are causing is not worth the happiness they gain. That’s where I remind my friend that there’s more to life than the long hours they work in front of a computer playing with numbers. Money isn’t everything. That’s where I advise my friend to get rid of their mortgage, quit their job, and live off their savings for the rest of their life in South America. If only it was that easy… it could be, although my friend may not agree.

The present state of affairs is not a pretty one. Changing the system might be messy, it might be hard for some to deal with. The truth may hurt, but it hurts more if laid untold.

This connection between Shareholders, CEOs, Employees and Customers already exists of course, however, it is hidden behind the guise of “The Corporation”. Whoever was the man (I’m pretty sure it would have been a male) who created and legalised corporations to be treated as their own separate entities, with their own identities, privileges and liabilities separate from their members – should be held accountable for the destruction this single rule has caused for the world’s present and future. Whoever has power to change this law… well, I plead that you do – for the sake of your children.

People are working on solutions. I guess part of the solution is to report to shareholders on the “3 P’s” : Profit, People and Planet – of course, this is easier said than done given the problematic nature of measuring one’s impact on the lives of people or the conditions of the planet. At the very least, even without this reporting structure, surely the rules of the game should reflect the wider values of society?

I guess this would involve:

1. Holding shareholders responsible for the non-monetary consequences of their investment. Eg if you invest in a company that buys their chocolate beans on the stock exchange, a third which come from the Ivory Coast of which 90% involve slave labour, you should feel responsible for this. Also, if the company you have money invested in spills oil in the ocean, you should feel responsible for all the fish, dolphins and animals that die as a result of your investment. Maybe it should go further than “feeling responsible” – if warned and company procedures are not changed, investors should feel obligated to withdraw their investment, or else suffer the legal consequences of the inhuman violence their money is causing.

2. Holding CEOs responsible for the non-monetary aspects of the company they are in charge of. At the very least, the company’s impact on people and the planet needs to be recognised as just as important, if not more important, than profit for shareholders.

The thing is, would this work? Would it make a difference?

It could end up just like the greenwashing that so many companies are into today (making out they are good for the environment when they are still the same product in the same plastic packaging, or donating a dollar and saying they are helping fix the problem). Still, even if it’s only in words I guess you have to start somewhere.

Anyway today I got off my ass and did something tangible about these thoughts. I sent the following letter to a few more of the places where I have indulged in chocolate without knowing whether or not this chocolate comes from the slave farms:

1. Max Brenner (who make incredible waffles)

2. San Churro (who make the best hot chocolates I’ve ever tasted – with chilli!)

3. Nestle (just because I haven’t sent them a letter in a while)

Also I looked at Cadbury: At least they seem to be trying.

If you feel like sending whoever your favourite chocolate companies are a letter, feel free to use my wording:

Dear Max Brenner,

I am a very big fan of your hot chocolates, and your extremely delicious chocolate covered waffles.

Unfortunately I recently saw a chocolate documentary exposing the slavery practices behind the cocoa bean industry on the Ivory Coast. And so I now I simply cannot justify buying chocolate from companies who buy their cocoa beans from the stock exchange (as these are most likely connected to the horrific slavery, which I believe should NOT be allowed in today’s day and age).

I am reviewing my favourite chocolate companies for my blog, so can you please tell me where you get your beans?

Are you moving toward some kind of a fair trade supply chain?

Thank you in advance for your time in replying to this email.



Anyway, I’ll let you know if I hear back from any of them. If you have any thoughts on how the roles of The Corporation, The Shareholder and The CEO might be better defined, write a comment for me – or if you don’t agree with what I say at all… either way I’d love to hear your thoughts.


My gorgeous sisters and cousins indulging in chocolate fondue Bennett-style. I think it was fairtrade chocolate, I hope…