Do we have the right systems of finance?

Old Finance

Old Finance is a confused and confusing menagerie of money, credit, debits, assets and prices all expressed in numbers whose connection to the real world of individual choice, physical wealth and personal prosperity is nebulous and whose machinations are, to Everyman, mysterious – and intimidating.

There is a reason they are called the Wizards of Wall Street, and not stewards, or even scientists.

Why Finance Is Important – for Everyman

Giving us a wealth of choices for how we want to take the world about us as we find it, and change it to be more a way we want it to be.

Riding the ebb and flow of change, and co-creative, collaborative and evolutionary adaptation to change, as times change, and we, as people adapt to changing times.

Making new intellectual and interpersonal connections for doing work and sharing wealth, letting others go, in an economy that is constantly changing, as times change, and people adapt to changing times.

Six Systems of Financial Stewardship

  1. the Social Power of Family & Friends
  2. the Moral Authority of Church & Charity
  3. the Public Good of Taxing & Spending
  4. the Counting and Accounting of Money & Credit
  5. the Expansive Growth of Securities Trading
  6. the Regenerative Cash Flows of Evergreen Superfiduciaries

For the economy to prosper, each form of financial stewardship must remain true to the principles and purposes of its own unique form.

Which means that no one form can be the right form for financing an entire economy.

Instead, each is the right form for financing the right enterprise at the right time.

When we use the wrong form, we get the wrong result.

New Finance

New Finance sees finance as a system of six decision-making subsystems through which we, as a society, decided which possibilities for our future prosperity can, should and will be pursued through enterprise.

It is a process that begins with enterprise, and enterprising individuals who see a way in which work can be done that will evolve successful adaptations to changes that are taking place in the network of connections between people for doing work and sharing wealth that we call the economy.

When enterprise needs money, finance provides it.

Finance provides money to enterprise in a two step process of:

  1. aggregating small surpluses saved by individuals dispersed throughout the network of connections that forms an economy; and
  2. deploying those aggregations to sponsor enterprise in doing work that finance decides can, should and will be done.

This shows us one important thing about finance. It is never their money. All financiers are acting as stewards of other people’s money. The terms of their stewardship determines the authenticity of their decision-making.

Over the history of human activity and economy, different systems of financial stewardship have evolved. We are today the heirs to a total of five different systems, consisting of:

  1. the Social Power of Family & Friends;
  2. the Moral Authority of Church & Charity;
  3. the Public Works of Taxing & Spending;
  4. the Counting and Accounting of Money & Credit;
  5. the Expansive Growth of Securities Trading.

We are also living today with the evolution of a new, sixth form of financial system stewardship, an evergreen form of superfiduciary stewardship over a shared financial future that is also our shared physical future.

These new superfiduciary financial stewards include retirement system pension funds, university endowments and endowed foundations that are very large, very purposeful and very evergreen.

That makes them very powerful as actors in our financial system. The most powerful actors in our financial system today in fact.  They are powerful actors with super powers. They have the power to negotiate. They do not have to speculate.

They can collaborate with enterprise leaders, directly, on strategies for doing work that regenerates wealth, on equities for funding that work and on priorities for sharing in the cash flows that are regenerated as strategies get executed and the work gets done.

The New Science of Finance is knowing which is the right form to use for the right enterprise, at the right time.

is finance as stewardship of income security

through evergreen superfiduciary collaboration

with enterprising individuals

 in riding the ebb and flow of change

and evolutionary adatation to change

the new Science of Finance as Good Stewardship excerised from within different decision-making subsystems for deciding which possibilities for future prosperity can, should and will be pursued through enterprise, with each financial decision-making subsystem stewarding its own values, making each system the right choice for financing the right enterprise at the right time, according to the values that fit the purposes of different enterprises, at different times