Remember Buckminster Fuller, Bucky for short? The geodesic dome was his claim to fame, but he spent his entire lifetime designing up futuristic versions of houses, cars and other stuff. In his heyday, the 60’s and 70’s, was famous for being famous in the way that celebrities often are. In the year he died, which was 1983, he published a short book called “The Grunch of Giants”, Grunch being his anacrym for GRoss UNiverse Cash Heist. Prescient, don’t you think?
Grunch was his summation of his view of the world and his valedictory to those who would inherit the coming collapse. It is sad and beautiful, prophetic and mistaken as only the words of the soon to die can be. It was also of course, completely ignored. Surprise, surprise.
Here's the book online: Grunch of Giants.
An excerpt. It’s a bit long, alas, and would be better if presented in a 11 minute video. (Anyone out there want to do it? Pretty please?). But I just can’t bear to cut any more; it is after all, a précis of 30,000 years of social development. The uncut version is chapter 3 of the book.
If a long post is not your style, just scroll down to the bottom, where you'll find a nice movie. But if you can handle it, it's worth the read.
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One of my many-years-ago friends, long since deceased, was a giant, a member of the Morgan family. He said to me: "Bucky, I am very fond of you, so I am sorry to have to tell you that you will never be a success. You go around explaining in simple terms that which people have not been comprehending, when the first law of success is, 'Never make things simple when you can make them complicated.'"
So, despite his well-meaning advice, here I go explaining giants.
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There is no historical record of religion founders who have been so bold as to assert that God had deeded land to anyone. History shows that religious leaders have, however, frequently complied with their king's instructions to plant a cross or other symbol of God's approval of their king's sword-accomplished vast lands-seizure and ownership-claiming.
Over thirty thousand years ago, these prehistoric horse-mounted "landowners" began expanding their territory northwardly and westwardly beyond the Himalayas into Mongolia and then ever westward into Europe.
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Millennia after the first club-swinging Oriental horseman claimed land ownership, the man on the horse westbound from the Orient to Europe became helmeted and armored in metal. Due to the horses' weight-carrying limit and the penalty of weight on the horses' speed, the most effective of the horse and armored riders was, like the present-day jockey, the wiry, strong, little man. Inspection of the European museums' armor discloses the diminutive size of the most successful knights. The main significance of what we are learning is that, to the man on foot, the horse-mounted and armed men became a new and formidable "giant."
Because the armored knight required many helping hands to mount him and maintain his horses and arms, he had to have their goodwill and support lest his helpers overwhelm him when dismounted and encased in his armor. As a consequence, the little, wiry man in horse-mounted armor frequently became the champion of traveling bands of the little people. The little armored knight was more maneuverably effective than the armored giant when the latter's multi-folded weight overburdened his mount.
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Squads of armed horsemen could protect caravans of goods-carrying horses, camels, and elephants along with human bearers. These caravans could transport the initially culture-evolved riches of the Orient westward to the ever more westwardly advancing frontiers of humanity, where the newly powerful cultures could acquire the historically recognized appurtenances of Oriental courts of power.
A new kind of wealth-making occurs historically with the invention and development of stoutly and heavily keeled, ribbed, and planked, high-seas-keeping, deep-bellied, and, in much later times, cannon-armed sailing ships.
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The ship was, of course, a tool, but not a craft tool produced by one man. It was an industrial tool, mass-producible and operable only by large numbers of highly skilled craftsmen, metalworkers, woodworkers, sailcloth makers, rope-makers, iron chain- and anchor-makers, seasoned sailors, and the coordinated muscle of "all hands." The merchant ship was a wind-energized industry, a tool that could sail around the world and carry cargoes worth many fortunes to lands not containing the materials brought by the ships, which when integrated with the home-port-occurring materials produced real wealth of increased life-support for more and more people.
The building, rigging, and arming of such vessels and the production of the materials with which to build them, as well as the production of the food and other necessities to feed and clothe all those engaged in the shipbuilding, required an effectively powerful military authority able to command the full-time commitment of the work and skills of the large numbers of humans involved. It also called for the amassing of large sums of negotiable wealth. Preferably the negotiable wealth was in the form of trade-implementing precious metals and jewels, commercially acceptable around the world.
For ages earlier the negotiable wealth had been the efficiently demonstrable products of labor and its produce, the grains and the livestock. Of the latter, the protein amassed cattle constituted the most concentrated possible yet maneuverable realization of actual life-support wealth. Cattle were put up as collateral for the banker's loan of gold, silver, and copper coinage. When the voyage was successfully completed, the merchant-ship venturers repaid the banker and paid the banker his "interest" in the form of calves that had been interimly produced by the collateraled cattle. This was called "payment in kind"— kind being the kinder or "children" of the cattle. When bankers eliminated live cattle as collateral and dealt only in gold or silver, there were no gold coins being bred by gold coins as calves had been by cows, so interest was taken out of the capital gold by diminishing the equity of the borrower when he repaid his debt. The banker's interest was cut out of—that is, deducted from—the depositor's original "cap"-ital (head of cattle) stake.
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The safe return of the merchant venturer's ships was so unpredictable as to constitute a capital investment of high risk but also of very high potential gain—most significantly a risk whose rewarding payoff might take several "crop" seasons to realize. The voyage might take several or even many years to complete. These risks in turn could be lessened by insurance.
As a consequence of all the foregoing, … a new and overwhelmingly greater form of invisible seagoing and land-strutting giants appeared on planet Earth. This was a legally contrived, abstract giant —"legal" because the physically uncontradictable "topsword" king decreed it was legal. Having the most favored privileges accorded real humans, the giant, abstract, corporate "man" is inventively created in 1390 in England. (The corporate "human" may have been invented in ancient Babylon to cover the potentates' voyaging venture, but we have as yet no written record of such.) "His" abstract name is the "Merchant Venturers Society." This composite man was formed by the king of England with a small group of his very powerful friends, who lorded over their king-deeded vastlands.
By royal prerogative, the venture-financing riskers could not be held liable for any losses of the venture. With limited liability, individuals might sue the company but not the human individuals who underwrote the venture If the enterprise failed and went bankrupt, its shareholders lost their ventured stake but were not to be held responsible in any way for its debts. The creditors of the company were the losers, and not the shareholders. Bankruptcy could reflect no credit stigma upon the companies' shareholders. The shareholders were held absolutely blameless for any misfortunes of their ships' crew or for damage caused by collision of their ship with another ship. If the ship and its cargo were lost, the shareholders lost their original shares, but no more. As long as the ship operated successfully, the shareholders shared its trading profits
Whether the ship was lost or not, the banker who loaned the gold for the merchant ship's trading held the life-support-producing lands and their cattle as collateral. Since many voyages ended in disaster, the banker occupied a long-time, steadily profitable position in the overall merchant venturing—and as yet does.
Naturally, the shareholder's limited-liability advantage, granted by sovereign decree, encouraged a swift expansion of such enterprises.
In 1522 Magellan's ship demonstrated that the world is not a laterally extended plane off the edge of which a ship might plunge, nor an ocean extended laterally to infinity from which there was no return. Magellan's ship's circumvoyaging proved that the Earth is a sphere—a closed system with enormous trade-monopolizing potentials. Laws of the land could not be enforced on the sea. The seagoers were outlaws—privateers or pirateers. The most powerful outlaws became the sovereigns of the ocean sea.
In 1580, Queen Elizabeth was the largest shareholder in Sir Francis Drake's merchant ship The Golden Hind. Naturally, the queen granted Drake's venture "legal" freedom from liability. After paying Elizabeth her conspicuously major share, Drake and his other shareholders each realized almost 5,000 percent profit on their risked capital.
Enthusiastic over her Golden Hind venture, in 1600 Queen Elizabeth chartered the limited-liability East India Company. This time the shareholders acquired shares in a fleet of ships, docks, and warehouses in both England and India—not shares in just one ship, as in the earlier "venturing."
Employing her sovereign power, Elizabeth limited the losses of its chartered riskers to their initial monetary or equivalent capital stakes, while continuing their right to receive their proportional profit dividends for as long as the venturing company might exist—in perpetuity.
Known later in England as "Ltd." (for "limited liability"), in France as "Societe en Commandite," in Germany as "Kommanditgesellschaft," and as "Corporation" under the U.S.A.'s "Inc." (for incorporated) status, this newborn abstract legal giant was to be treated as a human personality, empowered to do anything humans can do but also accredited to operate as an abstract, legal entity able to enter or leave any nation without a passport. As such it was able to employ millions of people and any amount of money, tools, buildings, and equipment, and to perform its giant acts anywhere about the oceanic world exclusively for the profit in perpetuity only of its shareholders.
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The fourteenth-, fifteenth-, and sixteenth-century rulers who instituted and empowered those abstract corporate giants were able to popularize their acts by celebrating the visual wealth of goods it brought to their country and to the political satisfaction of their many citizens. The profit to society was visibly distributed as the goods, services, museums, and public-place rarities the enterprising produced. The shareholders' dividend checks were invisibly distributed.
With the battle of Trafalgar in 1805, the risk-capital powers backing the "British Empire" became the "Sovereigns of the Seas." Until that time the high-sea venturers had carried gold and silver as their trading medium. This induced world-around high-seas piracy. The behind-the scenes masters of the British Empire then invented the annual balance of trade" as a world-around bookkeeping system which kept its gold off the seas and instead, after the year-end tallying of the trade interactions, transferred the gold from one country's London vault to another country's London vault. This withdrew the gold from the seagoing pirate's reach. However, it brought many of the pirates into the financial districts of great cities.
Naturally, shareholding in Ltd. enterprise became increasingly attractive as an investment risk, but soon the monetary size of investment required for share participation grew beyond the acquisition means of all but the wealthy. Stock-exchange brokers, for their own convenience, imposed trading only in hundred-share "lots" or "blocks," which quickly raised the equity-purchasing increments to so great a price that only the very wealthy could any longer participate in such venture-sharing. The capital games' playing-rules "kept the pikers out," the original pikers being the on-foot, pike-bearing castle guards.
In the nineteenth century the limited-liability corporate venturing began not only putting its shipyard donkey engines' steam engines in ships, but also mounting them on steel wheels on rails and powering them out of the shipyards. Thus they began railroading heavy loads inland. This initiated new mass-production industry centers at inland water-power sites. For instance, industrial venturing underwrote water-wheel-driven mass-yardage cotton mill fabric production, preferably in such low-wage-paying countries as India. The annual balance-of-trade accounting brought about many obviously inequitable economic conditions, such as, for instance, India's burlap bag-makers working for a penny a day. It was the vast profits made on burlap bags so produced which financed the early-twentieth-century expansion of the Massachusetts Institute of Technology in the U.S.A.
Such cotton and woolen fabric production-venturing was logically followed by thread and needles, pins, buttons, and small hardware mass-production moving-line ventures. With the introduction of electricity and the electricity-driven motor, industry began moving-line mass production of dollar watches, tin cans, safety razor blades, big-city clothing-production sweatshops, then bicycles, then motor cars. In World War I, it introduced steel steamship mass-production; in World War II, transoceanic aircraft mass-production; and, in the "cold," puppet-nation-waged war (World War III), extraterrestrial travel and transport, and mass-production of invisible mass-killingry potential.
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As mass-capital-venturing flourished after World War I, General Foods Company absorbed many pre-World War I individually owned, independent mass-producers of canned and packaged food. General Electric acquired other successful electrical goods manufacturers. The growth of corporate venture activity was, however, at that time yet identified by unique product categories.
After World War II, "mergers and acquisitions" and outright "takeovers" agglomerated almost all successful industrial capital ventures, regardless of their class of produced goods and services. The great conglomerates found it more profitable, safer, and more credit-powerful to diversify their risking. The successful "biggies" became ever more gargantuan—for example, the Dupont chemical company's 1981 acquisition of Conoco, America's ninth largest oil company, for $7.57 billion, to form the seventh largest industrial corporation in the U.S. Because many of these conglomerations embraced all the national defense weaponry production, they "legally" qualified for guaranteed government "bailout" should their operation become financially "embarrassed" or debts unmeetable. The U S government's decade-ago bailout of Lockheed Aircraft or its multibillion-dollar guaranteed loan to private Chrysler Corporation (the government's military-tank producer) are the current outstanding examples.
The rise of the corporation, industrial capitalism and military conquest are all part of the shell. Like it or not, this is the world into which we born and it all most of us know. This is especially true of Americans, mostly true of the “developed” world (this is after all what “development” actually is), and these days pretty much everywhere else too, which is what “globalization” really means. If you buy your food and pay for your accommodation with money, or rely upon people who do, this means you.
Which brings us to another component we need to address: Money. We’ll do that next time. Until then, here’s a movie:
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