The Most Comprehensive Summary of the Economic Crisis

This past weekend I gave a presentation that offered a (Memetic) value-systems analysis approach to the financial crisis to an integrally-informed crowd of about 60 at Boulder Integral in Boulder, CO. This was part of Dr. Don E. Beck’s Spiral Dynamics in Action training series. (Until we have a full description of the color-coded value systems of Spiral Dynamics on this blog, please click here for a quick description  (hover your mouse over Interactive Spiral).

After my presentation many audience members came to me expressing their shock and disbelief about the ominous threat that the shadowy global banking system of financial derivatives presents to the very survival of Western culture.

Many requested additional information  and I promised to have that available through this blog. Although my presentation was a result of comprehensive research I’ve done since the beginning of the crisis, I was able to find an article on the web that puts the crisis in proper chronology and identifies the major players in it. Since the publishing of that article in late January the derivatives market has grown from $600 Trillion  to $685 Trillion today. Click here to read the article.

Since this blog is about where Economics meets Memetics, most articles on the web, TV and in print fail to take into consideration the cultural impact that cheap and unregulated money (the removal of  BLUE (ORDER value system vMEME) in the Money/Commerce Spiral) (or lack of oversight in a free markets system) had on accelerating the demise of UNHEALTHY ORANGE (ENTERPRISE vMEME); or best described as Wall Street on Steroids. The events that broke the weakest BLUE link were the attacks of 9/11 that turned this into “the perfect storm”. I compare Bush’s economic team’s reaction to 9/11 to when a truck hits your house, and you turn around and give the keys to the liquor cabinet to the kids (completely unrelated cause and effect). This is precisely what happened when the Fed dramatically lowered interest rates and the rallying call every where turned to: spend, spend, spend or the terrorists win. We had no complex capacities at the monetary or fiscal policy levels to interpret terrorism.   Sophisticated and highly complex economic policies are often made for the long-term and are never designed to turn on a dime.  Bush’s team saw everything as it relates to an unplanned war (short-term, reactive and lacking in insight) and all other policies emanating from his administration followed suit. (A dangerous downshift from a heavy, long-term REGULATOR/ORDER  BLUE value system to a reactive and systemic fighter FEUDAL RED value system).

The unregulated derivatives market wouldn’t have grown to the size that it is without the flood of cheap and unregulated capital that enabled both, diabolical ORANGE at the highest levels to package these financial weapons of mass destruction, as Warren Buffet calls them and sell them as securities (insured by AIG and rated AAA by S&P (corrupt REGULATOR/ORDER BLUE vMEME)). At the retail level, cheap capital allowed for a  PONZI ECONOMY with a RED consumer (spend NOW with NO GUILT) who just borrowed and spend without ever being held accountable by a lender. That same lender made more money from that consumer by finding him a new and bigger credit card, a new and bigger mortgage and sold all of it to an UNHEALTHY ENTERPRISE ORANGE value system of Wall Street again, and they in turn put it into a derivative and sold it back to a wider institutional market all over the world.

Because of the depth and breadth of the damage done to the entire Western financial system by a few but very destructive, highly sophisticated and rarely understood financial engineers (Wall Street UNHEALTHY ENTERPRISE ORANGE value system), we will witness the damage they caused over a prolonged period of time. The Great Depression was a catalyst that propelled most of the US labor force into the industrial age, this atrophy of financial engineering will also act as a new catalyst as it ushers in a new and complete shift in paradigm and value systems.  Unlike the Great Depression however  the horizon for new discoveries  and a shift away from the function of MONEY  will take much much longer to crystallize


New Blog Title; appropriate coverage for the times

I apologize to the many readers of my previous blog who couldn’t gain access to my posts from the link on my company’s website. I will occasionally re-post some of the old writings if and when they relate to events happening in the marketplace. As the current financial crisis continues to shake the faith of many around the world in the free markets system, I will continue to bring awareness to a developmental approach to capitalism which gave me the title for this new blog. Sustainability’s New Frontier goes beyond green practices that everyone thinks will get us out of the economic malaise we’re in. The focus of this new blog will be a “Stratified Development” approach that will examine appropriate economic policies commensurate with the value systems of people and the life conditions in communities, regions, and countries they’re in.
This is our Mission Statement from our ABOUT page:

Western economic models designed to end poverty and to usher in an era of peace and prosperity have placed the world on an increasingly unsustainable path. Efforts to stamp out underdevelopment have created many failed states and the rift between the first world, the emerging world and the third world grows by the day. The Anglo-Saxon model for development has proven to have many shortcomings the biggest of which is to make every inhabitant of the planet a consumer of goods. This blog attempts to examine the failures of economic integration through the lenses of value systems and attempts to offer culturally-fit economic solutions that work. Through the emerging science of value-systems we will attempt to demonstrate how economic policies that are commensurate with the cultural value systems of a specific country are a far more accurate measure of sustainability than most current economic models offer. This is the New Frontier for sustainable economic development. This is where “Economics meets Memetics.”

As we’re witnessing this historic collapse of financial systems around the world, the focus of the blog will be on the value-systems that got us here, how to make sense of it all, and engage in debate on how to design for the future through the lenses of value systems science. Please stay posted