This is a difficult read, but an extremely important point is being made ...
(snip)"An even better example, because a closer parallel to the present instance, is the twilight of the Roman world. Ancient Rome had a sophisticated economic system in which credit and government stimulus programs played an important role. Roman money, though, was based strictly on precious metals, and the economic expansion of the late Republic and early Empire was made possible only because Roman armies systematically looted the wealth of most of the known world. More fatal still was the shift that replaced a sustainable village agriculture across most of the Roman world with huge slave-worked latifundiae, the industrial farms of their day, which were treated as cash cows by absentee owners and, in due time, were milked dry. The primary economy cracked as topsoil loss caused Roman agriculture to fail; attempts by emperors to remedy the situation failed in turn, and the Roman government was reduced to debasing the coinage in an attempt to meet a rising spiral of military costs driven by civil wars and barbarian invasions. This made a bad situation worse, gutting the Roman economy and making the collapse of the Empire that much more inevitable.
It’s interesting to note the aftermath. In the wake of Rome’s fall, lending money at interest – a normal business practice throughout the Roman world – came to a dead stop for centuries. Christianity and Islam, the majority religions across what had been the Empire’s territory, defined it as a deadly sin. More, money itself came to play an extremely limited role in large parts of the former Empire. Across Europe in the early Middle Ages, it was common for people to go from one year to the next without so much as handling a coin. What replaced it was the use of labor as the basic medium of exchange. That was the foundation of the feudal system, from top to bottom: from the peasant who held his small plot of farmland by providing a fixed number of days of labor each year in the local baron’s fields, to the baron who held his fief by providing his overlord with military service, the entire system was a network of personal relationships backed by exchanges of labor for land.
It’s common in contemporary economic history to see this as a giant step backward, but there’s good reason to think it was nothing of the kind. The tertiary economy of the late Roman world had become a corrupt, metastatic mess; the new economy of feudal Europe responded to this by erasing the tertiary economy as far as possible, banishing economic abstractions, and producing a system that was very hard to game – deliberately failing to meet one’s feudal obligations was the one unforgivable crime in medieval society, and generally risked the prompt and heavily armed arrival of one’s liege lord and all his other vassals. The thought of Goldman Sachs executives having to defend themselves in hand-to-hand combat against a medieval army may raise smiles today, a thousand years ago, that’s the way penalties for default were most commonly assessed.
What makes this even more worth noting is that very similar systems emerged in the wake of other collapses of civilizations. The implosion of Heian Japan in the tenth century, to name only one example, gave rise to a feudal system so closely parallel to the European model that it’s possible to translate much of the technical language of Japanese bushido precisely into the equivalent jargon of European chivalry, and vice versa. More broadly, when complex civilizations fall apart, one of the standard results is the replacement of complex tertiary economies with radically simplified systems that do away with abstractions such as money, and replace them with concrete economics of land and labor.
There’s a lesson here, and it can be applied to the present situation. As the rising spiral of economic trouble continues, we can expect drastic volatility in the value and availability of money – and here again, remember that this term refers to any form of wealth that only has value because it can be exchanged for something else. Any economic activity that is solely a means of bringing in money will be held hostage to the vagaries of the tertiary economy, whether those express themselves through inflation, credit collapse, or what have you. Any economic activity that produces goods and services directly for the use of the producer, and his or her family and community, will be much less drastically affected by these vagaries. If you depend on your salary to buy vegetables, for example, how much you can eat depends on the value of money at any given moment; if you grow your own vegetables, using your own kitchen and garden scraps to fertilize the soil and saving your own seed, you have much more direct control over your vegetable supply.
Most people won’t have the option of separating themselves completely from the money economy for many years to come; as long as today’s governments continue to function, they will demand money for taxes, and money will continue to be the gateway resource for many goods and services, including some that will be very difficult to do without. Still, there’s no reason why distancing oneself from the tertiary economy has to be an all-or-nothing thing. Any step toward the direct production of goods and services for one’s own use, with one’s own labor, using resources under one’s own direct control, is a step toward the world that will emerge after money; it’s also a safety cushion against the disintegration of the money economy going on around us –"(snip)
with unbelievably huge thanks to the Archdruid ...



Reply With Quote

Bookmarks