Imagining Bank of Nature
We learned through our Critique of Neoliberalism to see Pensions & Endowments as Institutional Fiduciary Owners of Intergenerational Money:
- with the POWER of size, purpose and time to use technology to negotiate (they do not have to speculate); and
- the fiduciary DUTY to negotiate prudently, in undivided loyalty to their fiduciary PURPOSE, which is to be there now, and in future, both equally, forever.
We learned by Innovating The Fiduciary Way to transform Pensions & Endowments:
- from Asset Owners hiring Asset Managers to speculate on share prices in the share price trading markets;
- into Fiduciary Money financing fiduciary-grade social contracts between enterprise and popular choice providing fiduciary minimum cash flow equity paybacks (plus “upside”) financings to fiduciary-grade social contracts with popular choice.
Now, we are ready to ask ourselves the more practical and pragmatic questions, of:
WHO can and should Fiduciary Money be negotiating financings with?
WHAT can and should Fiduciary Money be negotiating for?
By way of answer, we propose a new fiduciary financing institution for institutional fiduciary owners of Intergenerational Fiduciary Money, that we call Bank Of Nature as The Untaken Safer Alternative to the Old Lore of Direct Debt to governments and real estate and the Current Lore of Asset Management
Putting new learning about the prudent stewardship of Fiduciary Money to work through
BANK OF NATURE
Before Neoliberalism financialized Fiduciary Money beginning in 1972, the old lore of fiduciary duty limited financing by Pensions & Endowments to direct debt to governments and real estate, lending sums certain to be repaid, with interest, on dates certain. This was generally considered a low-risk strategy. But it is also a low-return strategy, relative to actuarial minimums for Pensions and the required in the US of the tax laws for Endowments. So, it is actually a high-risk to fiduciary PURPOSE strategy.
Neoliberalism’s promise of higher returns through share price trading, with effective risk management through diversification according to Mid-Century Modern Portfolio Theory, became the Current Lore because it was sold as a lower-risk alternative to fiduciary PURPOSE.
EXCEPT that the PURPOSE needed to be narrowly defined as Growth in order for share price trading to fit.
BUT, as we have seen, Growth is NOT THE PURPOSE of Fiduciary Money in providing financing to enterprise. SUFFICIENCY IS. Sufficient in quantity. Also, sufficient in quality.
To earn sufficient returns from properly fiduciary sources Fiduciary Money MUST NEGOTIATE equity paybacks (plus “upside”) from prioritized cash flows.
This is the UNTAKEN SAFER ALTERNATIVE that Bank of Nature is imagined as being birthed to provide to Pensions & Endowments.
Elements in the design of an equity payback of fiduciary minimums
Negotiating for sufficiency requires a design process that speculating on share price does not.
We imagine Bank of Nature being made expert in that process.
The dashboard below shows the eight primary steps in that process as follows:
- articulating the NEED in society (becomes times have changed and new learning for adapting to those changes) that is creating the OPPORTUNITY that the enterprise is organized to pursue;
- articulating the enterprising VISION for meeting that NEED;
- evaluating the completeness and cohesiveness of the Knowledge, Networks and Routines organized by the enterprise
- anticipating the pattern of flourish and fade in the social contract of that enterprise with popular choice (by “popular choice” we mean commercial markets, but “markets” is a slippery slope word that drags us back to Growth Imperative thinking that markets can expand forever, when common sense experience teaches that enterprise popularity flourishes for a time, but always fades at some point in time, as times change, and humanity innovates to fit those changes);
- agreeing line item budgets for fiduciary grade cash flows prioritized for: popularity in the social contract with popular choice; sufficiency of cash flows to the needs of the business and fiduciary minimum cash flows; fair trade in supply chains; fair engagement with the law and community; fair reckoning with business impacts on Nature and Society; fair working conditions and compensation; fair dealing with customers and competitors; and fair sharing between the enterprising visionaries and their financiers, fiduciary or otherwise;
- modeling expectations for the equity payback and upside (this payback feature helps to ensure that the focus is always on financing the future, and does not have a vested interest in perpetuating the past);
- demonstrating an earn back by the enterprise (a corollary to the payback, this feature helps to motivate the enterprising visionaries to deliver the fiduciary payback);
- writing the private laws of negotiated agreement that will give legal meaning and consequence to modeled expectations.
Curating a economy that is sufficient to its times, for keeping a good society ongoing into a dignified future, forever, through fiduciary minimum paybacks
Material Abundance &
- Pre-funding the flourish and fade of the social contract between enterprise and popular choice
- Designed to deliver fiduciary minimum cash flows
- Prioritizing cash flows for:
- Fair Trade in the supply chains
- Fair Engagement with Law and Community
- Fair Reckoning with Impacts on Nature and Society
- Fair Working Conditions and Compensation
- Fair Dealing with Customers and Competitors
- Fair Sharing between enterprising visionaries and their financiers, fiduciary or otherwise
A New Choice for Enterprising Visionaries
A New Theory of Prosperity for All
Neoliberal Financialization of Fiduciary Money
The Fiduciary Way
- Recklessly Unreckoning
- Booms that Go Bust
- Market Disruption
- Creative Destruction
- Human-Nature Partnership
- Flourish and fade of the social contracts between enterprise and popular choice that change over time as time changes and humanity evolves prosperous adaptations to life’s constant changes, making new choices more popular as better fit to changing times and letting previously popular choices fade into history as a good fit at an earlier time, in a world of technology surpluses that we make for ourselves in which to live out o the world of Nature into which we all are born through: inquiry, insight, scholarship and creativity; social norms and social narratives; enterprise and exchange; money and finance; laws and politics; popular choice and public discourse.
- Navigating through a prosperous present towards a dignified future, in peace. Earth peace and people peace. Peace with ourselves and with each other; peace with our planet and with our future. The peace of sufficient surpluses shared sufficiently through the flourish and fade of social contracts between enterprise and popular choice.