The Accounting System #7: Virtualization in early Banking

previous: #6, Coin, Counting and Crashes

We know that credit and debt are early historical phenomenon because they were recorded in ancient documents. The Bible requires the returning of borrowed land and goods, as well as the liberation of slaves, every 50th year [Leviticus chapter 25]: "ye shall return every man unto his possession, and shall return every man unto his family." Laws regulating loans may pre-date writing.

Credit requires a tracking system, which of course is an accounting. A written record had considerable merit over human memory.

Trade, as indicated earlier, is facilitated by an accounting system. The portable accounting system that used coins came to be supplemented at a very early date (certainly by the time of the Roman Republic) by systems based on the letter of credit.

It was a simple enough system. A wealthy Roman, wanting to send his son to receive an education in Athens, could go to a merchant banker who would write a letter of credit. This light, paper document would be taken to Athens and presented to an associate of the Roman banker, who would issue coin, up to the amount stated in the letter, to the travelling student. Because citizens of Athens often travelled to Rome carrying letters of credit, to a large extent the two-way flow of credit might cancel out. Each of the banking associates kept careful records. At intervals, if flows were lopsided, then could even up their mutual accounts by shipping coin or by sending desirable merchandise.

Letters of credit are an early example of the portability of accounting combined with its virtualization. A letter of credit, in the coin age, would be thought of as virtual coin. In fact, once we drop the coin blinders from our eyes, we see that it accounted for goods and services up to the point when coin was issued.

The most remarkable discovery that allowed accounting systems and trade in real goods and services) to escape the limitations of coin systems probably evolved among Italian city-state proto-bankers in the late middle ages. No, not double-entry bookkeeping (we'll get to that in Chapter 3). They discovered that they only needed a small reserve of coins to do business and make a profit through loans.

Next: To be continued

[The Accounting System, Your Fate is in the Cloud, is a work in progress by William P. Meyers, ©2013]

Poisonwood Congo, Imperialism, and Diamonds

"Two hundred different languages," he said, "spoken inside the borders of a so-called country invented by Belgians in a parlor." — The Poisonwood Bible

A few days ago the United Nations announced it was attacking rebels in the Congo with modern attack helicopters. Imagine thousands of bullets per minute flying at you. You would think that would stop a rebel.

Instead the army of the Congo disintegrated and U.N. peacekeepers stood down while the rebels, known as M23, triumphantly entered Goma. The government of the Congo, and the U.N., claim that M23 is being aided by the army of Rwanda. The U.S. is being careful about criticizing Rwanda, at least for the moment.

The prize? Minerals, potential land for international corporate farming, and geopolitical positioning.

To the extent that Americans are interested in the Congo, they don't have the factual background to understand the situation. Consider this a primer on what your governing corporate security state does not want you to know about the Congo and Africa in general.

First, a bit of illuminating fiction, and I don't mean what will be coming out of the mouths of Hillary Clinton and other professional story tellers. If you have not read it already, you might want to read Barbara Kingsolver's novel, The Poisonwood Bible. In it an American preacher takes his family to a remote village in the Congo and tries to convert the natives to his version of Christianity.

The preacher, and his suffering wife and daughters, cannot translate their American beliefs into Congolese. The preacher's barking translates poorly into the native tongue. Among other mistakes, he pushes the villagers to baptize their children in a river that is dangerous because of crocodiles. "'Tata Jesus is bangala!' declares the Reverend every Sunday at the end of his sermon ... Bangala means something precious and dear. But the way he pronounces it, it means the poisonwood tree." While the family is there Congo gains independence and its first elected leader, Patrice Lumumba, is murdered in a CIA and Belgian plot.

It is important to recall that the United Nations was formed as a military organization during World War II and has always been controlled by three imperialist powers: the United States of America, the British Empire (now just Great Britain), and France. The Congo was a Belgian colony, but the French had major interests there and of course after World War II the American jackals moved in for the feast. Oh, wait, that's US. After independence honest U.S. business men helped the Congo by introducing more efficient methods for extracting minerals and other forms of wealth and shipping them back to America. It must be the lack of Christian go-getter culture that has kept the natives impoverished these last five decades. [Sarcasm alert]

But you can't just look at the biggest parts of the picture, the U.S. global business and governance system, of which the U.N. is a cog. You need to see the role played by Rwanda and Somalia, or rather U.S. strategic interests in those nations, at the very least.

U.S. equipped armies from Uganda, Burundi, Kenya and Ethiopia are currently operating in Somalia, trying to bring that nation back into the U.S. fold, and aiding a government of warlords also backed by the U.S. They are fighting Shabaab, who may have degenerated into a nasty lot, but at least they are a nasty Somali lot. Shabaab would not have amounted to anything if the U.S., its local bribe-taking warlords, and the Ethiopians had not ousted the prior, grassroots-built, moderate Islamic government known as the Islamic Union or Islamic Justice Courts.

Rwanda, of course, is mostly known for the genocide that happened there. It is a small, overpopulated nations of 12 million, or over 1000 per square mile, despite being mostly rural. It is bordered by both Uganda and Burundi, both also important to U.S. plans to dominate Africa, as shown by their willingness to send their soldiers to die for U.S. pay in Somalia. Rwanda was colonized late by the Germans, who because of its remoteness were mainly content to be puppet masters. After World War I the Belgians grabbed it. Gaining independence in 1962 coincided with the splitting off of Burundi.

It is a delicate set of dominoes the U.S. seeks to keep in line. U.S. objectives in Africa are to minimize Chinese inroads, stamp out Islam and native pagan beliefs in favor of Christianity, and covert small freeholders into agricultural slaves on giant corporate farms. In addition to controlling the mineral wealth. But Africans have their own issues, including ethnic, religious, and economic rivalries.

Note that all these nations are members of the African Union, which was formed in 2002. While ostensibly a goal of the AU is "To defend the sovereignty, territorial integrity and independence of its Member States," the problem is its governments are easily bribed and corrupted, including by military and "humanitarian" aid from the United States.

Back in the Congo, the U.S. is particularly interested in the supply of cobalt, an element with many uses and critical to making jet engine parts. The Congo contains 80% of the world's cobalt ores. It produces large amounts of copper, industrial diamonds, tin, and tantalum, which is particularly important to the electronics industry. Its agricultural potential is enormous. Hence the U.S. is training an elite Congolese military force, and the U.N. has a major military presence.

Why was a small group of rebels able to defeat the Army of the Congo backed by U.N. forces with advanced helicopter gunships in the fore? Because the government of led by Joseph Kabila is corrupt and incompetent, but also because the Congo is not really a nation, but is really just lines on a map. Kabila is corrupt partly because he has to be to survive.

Best historical parallel? The "government of China" under Chiang Kai-shek. No matter how much money the U.S. poured into the "Nationalist" Chiang regime in China between 1932 and the communist takeover, it went into luxuries for warlords, not bullets to fight the Japanese or communists. What the U.S. called the "democratic" regime of China was so hated in the end that entire armies simply turned on Chiang Kai-shek and joined the communists.

It seems likely now that the Shabaab will be defeated in Somalia and the pro-U.S. regime will survive as long as the U.S. keeps providing money. The problem with this form of imperialism is that it does not build up the strength of the fatherland. It gradually sucks the home nation dry, as the British Empire learned.

U.S. imperialism is in an advanced stage of collapse. Let's just hope the collapse does not take down our economy with it. The Phony Fiscal Cliff negotiations. should be about the cost of imperialism, but instead will be worked to the benefit of investment bankers and the military industrial complex.

The Poisonwood Congo is difficult for people like Hillary Clinton and Barack Obama to understand. Do they even remember that Joseph Kabila himself was backed by Rwanda and Uganda when he overthrew Mobutu? The problem with the U.S. trying to buy clients is that such people may not stay bought. China will soon be able to outbid the U.S. What then?

Genesis and Genocide, Hitler and Moses

"And we took all his cities at that time, and utterly destroyed the men, and the women, and the little ones, of every city, we left none to remain." - Deuteronomy 2:34 (Holy Bible)

In Jewish and Christian mythology the first five books of the Bible are said to have been written by Moses himself. Certainly Moses is a central figure, particularly in the second book, Exodus, in which he leads the Jews out of slavery in Egypt. At the end of the fifth book, Deuteronomy, Moses is said to have died at the age of 120, in Moab, never having entered the land of the Canaanites. Joshua then led the Jewish tribes, conquering the city of Jericho and, afterwards, conquering areas west of the Jordan River and Dead Sea.

It is likely that the Jewish original conquest of what I will call Palestine was not quite as clearly genocidal as the Bible indicates. The above quote from Deuteronomy is ascribed to the period during which the tribes were wanderers, before settling in Palestine. The Jews where not alone in trying to exterminate their neighbors, they just recorded it earlier than most. Enslaving the conquered was another common option, as was killing all males and keeping women as wives and slaves. The Egyptians, Sumerians and Babylonians also boasted of their skills at war and built their grand civilizations with slaves.

Many other instances of genocide are recorded in the Bible. For instance in Samuel, Chapter 15, God himself is quoted as saying: "Now go and smite Amalek, and utterly destroy all that they have, and spare them not; but slay both man and woman, infant and suckling, ox and sheep, camel and ass."
At one point the Babylonians did an ethnic cleansing of Judah, leading to the Exile. Most scholars think most of the Bible was written in Babylonia to keep the Jews culturally united until they could return to Judah. [6th century BCE; see Babylonian captivity]

What makes the Hebrew record different is its pretense to being a display of God's plan for the world. If you accept the Bible as a plan, you are basically stuck with approving of genocide and ethnic cleansing.
Adolf Hitler could well be said to have been the Moses of Germany. He was born in an ethnically German area of the Austro-Hungarian Empire. The most fateful decision of his life was doubtless when he decided to abandon a career as an artist to enroll in the German (rather than Austro-Hungarian Empire) army at the beginning of World War I.

Germany defeated Russia in the war and still had troops in France when it surrendered. Corporal Hitler, like many Germans, went into denial. Instead of accepting that if Germany had fought on its army would have collapsed, the myth of the "stab in the back" was created. In this version of history Communists and Jews (often the same people in Germany) were blamed for the loss of the war. There was some basis for this mistaken view. The Balfour Declaration, which may have induced some German Jews to hope for a British victory in the War. After Kaiser Wilhelm abdicated, the transitional government that negotiated the surrender of Germany was socialist (of the Marxist, internationalist sort, not of the nationalist, Nazi sort).

Germans had some genuine postwar complaints. The United States piled into the war late, tipping the military balance. A just peace was promised in return for an armistice. Instead the British, French and Americans imposed a very punitive peace that essentially destroyed Germany.

For Hitler and his admirers the Promised Land was a Germany consisting of all ethnic German majority areas. For Hitler and the more anti-Semitic National Socialists these lands would also have to be purged of foreign races, including (but not limited to) Jews and Gypsies. The more aggressive version of this doctrine included invading non-German areas, purging them, and colonizing them with Germans. Not unlike the prior colonization of the United States and British Empire.

The German nationalists wandered in their wilderness only slightly more than a decade before gaining power in Germany, or the rump of Germany that had been left by the wolves after World War I. In the late 1930's Hitler's government started taking back, or incorporated for the first time, the ethnic German areas outside the official borders. To be sure, he was happy to seize some areas that were not German, like much of Czechoslovakia. The last (perhaps) piece of German pie Hitler gobbled was western Poland (which was a part of Germany taken away by the peace treaty after World War I). The mighty British Empire, itself built over the centuries by the process of military conquest, ethnic cleansing, and genocide, declared war on Germany soon after Poland was attacked. World War II was on.

Like Moses, Hitler was not to see his promised land. Other nations were not interested in accepting the Jews he wanted expelled, so he killed them in the Holocaust, which is one of the most appalling acts of cold blooded mass murder of non-combatants in modern history.

In the end Germany was dismembered, not reunited. Hitler committed suicide rather than surrendering, echoing Masada, and the concentration camps were liberated before they completed their grizzly task. Later the capitalist West put together its three bites (British, French, and American) of Germany in order to use them as a shield against the Communist Block. Only in 1990 did East Germany reunite with West Germany to form the modern (and might I add, civilized and non-militaristic) nation of Germany.

Since World War II ethnic cleansing, and even genocide, has continued here and there around the world. Nationalism, religious prejudice, and greed are still problems. Yet a new earth has grown up too where many if not most people have a modern, civilized outlook. Civilized nations do not even have the death penalty for criminal acts. In theory no nation is supposed to engage in military aggression, though in reality the U.S. has been the worst offender in the last decade or two.

We need to keep a watch out for leaders who advocate ethnic cleansing, genocide, or war. They need to be stopped before they cause harm. We need, in particular, to respect the rights of indigenous peoples and minorities. The whole world should accept the enlightenment ideal of religious toleration and the brotherhood and sisterhood of the human race.

History books are filled with wars and genocides. This makes us forget that most people have lived in peace most of the time. Most people do not murder their neighbors. Nor do villages or cities exist in a perpetual war with each other. Even mighty nations have spent most of their times in treaty-bound peace with their rivals. We have much to build on even as we remember and criticize the horrors of the past.

Conservative by Nature

I was thinking about a facebook post I saw that accused Department of Education Assistant Deputy Secretary Kevin Jennings of advocating men forcing themselves sexually on boys. It was based on Fox Network false reporting as usual, but what concerned me was that someone, in fact probably a lot of people, were perpetuating this kind of lie on facebook. Kevin Jennings has spent his life advocating against the bullying of children who are or appear to be homosexuals. Fox and doubtless a coterie of pedophile priests and ministers are whipping up their anti-homosexual base. They can't be honest and say "but we are bullies, we think it is good to beat up on homo children." Instead they attack by making false claims about Jennings. And they congratulate themselves for being good Christian people. The sort who would throw stones at whores and homos, which I guess Jesus spent a good deal of the New Testament advocating for. [If you don't get the irony here, you might want to spend a few hours reading the Gospels]

But I have a problem with putting all conservatives in a bundle and tarring them with being hateful people. Fox gives conservatives a bad name, and encourages our worst behavior.

People really can't help but be conservative. The reality is there is almost nothing new under the sun, so aside from the latest tech gadget burning a hole where your pocketbook should be, it is just a matter of picking what sort of conservative you are.

Marxist used to think they were radicals. At best they are following a 160 year-old system of thought (actually, it goes back to the beginning of human society). Many of the splinter Protestant groups of the U.S. are far younger than that. Even if you accept their Bible-based claims to conservatism, the New Testament is still less than 2000 years old. Protestantism is a mere 600 years old. Is that radical or conservative?

Our genes, our DNA, are very, very conservative. We still have many genes that function the same as bacterial genes that are a billion years old (or 5000 years old if you believe God created all of Nature recently, and did the trick partly by using what programmers call object oriented, re-usable code).

Some members of every generation of young people try to break with the conservative mold. They reject their parents' and society's values and set themselves apart as a youth cult. The general term for that is bohemianism. Actually, it is a form of ultra-conservatism. It almost never drives culture forward. Youth rebellion usually seeks an even more conservative past when people were not so uptight and rule-bound. They pick a different flavor of conservative and call it "our generation."

To really be a religous conservative, you would have to become either a pagan or an atheist. Christianity is an innovation, and a poor one.

As to homosexuality, it appears to be as ancient as mankind. The radical new document called the Old Testament mentions it. The ancient Greeks, or some ancient Greeks, once things got urbanized and class-stratified, believed it was a superior form of love, above that of a man for his wife. It tends to be associated with cultures that make women inferior. Once you have declared women to be inferior (no females in the hierarchy of priests and ministers), and hang out mostly with men, homosexuality is only a kiss away.

As to myself, I believe in conserving as much of the natural world as possible. The mountain-top coal removers and the nuclear power plant builders, they are the radicals. They are the ones that need to be stopped.

Before homo sapiens split off from other apes on the tree of evolution, there were bullies. Now we have a wider variety of bullies: physical bullies, intellectual bullies, social bullies, cultural bullies, economic bullies. In a class-stratified society like ours much bullying is institutionalized. People don't even realize they are engaging in it. It is part of the upper classes protecting their privileges.

Still, it is good to try to minimize the bullying of children by adults, and of children by other children. Gay boys and girls should be treated with the same respect that all children should be treated with.

The difficult part of the equation is dealing with the adult bullies who don't see themselves as bullies. They see their actions as "helping" children. Helping them to obey all orders from authority figures, no matter who stupid. Helping them to conform to the gender roles of the adults' subculture. And the problem is deeper, because children do need help. They do need to pay attention in school; they really would benefit from doing their homework. So we need to be able to distinguish between arbitrary authority and good leadership.

And some children, maybe most children, will conform. But many will just harbor resentment and try to survive until the day they are adults and can get out from under their parents' authority, and maybe move to some place where there are more nice people around, like California.

God Punishes Bible Belt with Drought

I could not help but notice the remarkable coincidence between the December 9, 2010 Drought Map of the United States and the 2009 Bible Belief Geographic Index:




It became apparent to me that God must be sending the drought as a message to the Christians of the Bible Belt. But why? Surely no homosexuals, abortionists, or prostitutes live in the Bible belt anymore, not once they can afford a bus ticket out. While surely some people in the Belt don't pray as much as they should, that is even more true of areas of the United States that are not suffering from drought.

I talked to several preachers who claimed in the past earthquakes in California are God's punishment for allowing homosexuals and abortionists to live, but none of them thought the drought was anything other than a natural La Nina related weather pattern.

Then I took a big step. I decided to try to get an interview directly with God.

True, the bureaucracy was daunting. No one seemed to believe that I really wanted to know God's opinion. But I was persistent, and suddenly a void opened before me (I appeared to be in a multi-dimensional quantumized relativistic field space, but more on that some other time) and I heard the voice of God.

"Speak English!" I shouted back at him.

"There, is that better, insignificant germ on an insignificant planet in an insignificant galaxy in a botched universe creation experiment that I had almost forgot existed?"

"So you are saying you did not visit the drought on the Bible Belt of the United States of America on the planet Earth?"

"Not exactly. Let me have one of my minions examine the database. Huh. That drought is a punishment, although it is also a natural La Nina related weather pattern."

"Fine. Then people on Earth would like to know what the punishment is for, so that they can do better and escape punishment?"

"The punishment is partly for being conscious beings who only do what's right to escape punishment. But more specifically, I don't like them attacking people who are Moslems. I'm not all that fond of Islam, but that camel trading artist Mohammed did hear one thing right. I am the one and only God, and I don't like my creation worshipping made-up Gods, including people whose followers claim they are God on earth."

"So no false gods. Anything else?"

"Did I ever say that because the earth is insignificant that humans have the right to destroy it? Start taking care of the environment or I'm cutting off your food supply. Breed less. Open up more Planned Parenthood centers. Use condoms. Use the brains I gave you to make intelligent decisions! Stop reading the Bible and the Koran so much. They are out of date! Didn't people get the messages I sent through Adam Smith, Charles Darwin and Albert Einstein?"

"Well some did, and some did not. A lot of people seem to be hard of hearing in these matters. Especially in the Bible Belt."

"I've tolerated the Bible Belt long enough. I'm turning it into a desert for a few decades. After that, with some rain it might be a nice place again. It was a regular paradise before Christians arrived."

"But if people stop reading the Bible, would you stop the drought?"

"Ha! Maybe it will stop by itself. Maybe it is a natural cyclical phenomena! Next!"

At that point I was blown out of the interview space, back to my natural home in coastal northern California, where it is raining. Where it is okay to believe in Special Relativity and Natural Selection. Where people are friendly, and mostly see no need to go to Afghanistan to kill people.

But I was a little bit miffed that the interview ended so abruptly. I thought the tradition was that when God gives you an interview, and you get back to spread the Word, everybody is thankful and gives you ten percent of their income. Next time I get an interview, I'm starting with fee negotiations.