Category Archives: finance

What Does Icelandic Politics Look Like?

The same as anywhere else. You channel a river system through a hydroelectric dam to power an aluminum smelter for the industrial and economic elite, and deposit the water in the next valley, claiming that all environmental standards have been met… … kill the sacred lake, the birthplace of Iceland’s country and the modern state. This is, of course, called progress. These images were taken in Hallormstaðir, the Town of Rowans, a sacred place a couple hours by foot from Gunnar’s house. It’s a good thing he’s not there to see it!

Why No One is Arguing for a National Park in Fjaðrárgljúfur

This globally precious land in a country that claims to be an environmental leader is about to be sold for tourist developement. Perhaps this image shows why it is not being made into a national park instead, which would be the responsible, wise course to meet tourism and environmental goals together.
Note the catastrophic lava field that obliterated the original farms in modern memory, the excavator digging gravel out of the river, a forbidden practice in many countries but likely under government subsidy here, to enable farmers to stay on the land, and the farm up on the poorly-productive high country, away from that lava gick. This is a story of survival by harnessing energy to an austere, hierarchal system of political order. The fear is palpable, but the land…

… is palpable, too. Environmental laws mean nothing if this land is not protected from crass development. The soul of the nation is here. Development is inevitable, and in true Icelandic fashion, it will be industrial and in place, and it should be. Restraint, though, is also Icelandic, and it is sorely needed here.

This land, rich in spirit, is as fragile as Iceland. The response to the offer of sale of this land should be as robust as iceland, which means putting some teeth into environmental legislation. The alternative is to become a laughing stock. It’s not desirable, and it’s not necessary.

Nationalism in Iceland

A pretty pastoral scene in Hvaljördur, right?

p1400354Saubæjarkirkja

The barren hills are caused by the sheep that make a nation possible here. The birches in the churchyard would have been all over them 1100 years ago. More trees would be desirable, but lamb is already $35 a kilo. That’s a hard practical choice. The church is a symbol of many things, including the parliament of 999-1000 that made Christianity the country’s public religion (without denying private paganism), the loss of nationalism to the Norwegian Crown a half millennium ago, the power of land-owners to collect church tithes, and the cementing of Christian values (and at times oppression) in communities of itinerant labourers, almost serfs, in continual movement around the country. The forest behind the church is part of the late 19th century and early 20th century movement to re-settle the land and reclaim nationalism from Denmark. The long distance transmission line is part of the support network for the American aluminum plant behind me when I made this image. The reservoir that supplies these lines with power drowned some of Iceland’s most beautiful wilderness, yet, arguably, provides the funds that allow Iceland to remain independent. The green field crop represents the heavy industrialization of agriculture which enables a people, in love with the power of American urban values and who have left to land, to eat off the labour of 4500 people. The ditches across the field, for drainage, allow for increased yields for this industrialized agriculture. Everything you see here is a technology for survival. Everything is a carefully calculated choice. Nothing is frivolous. So, yes, if you call that pastoral, this is. Gunnar Gunnarsson would have said it was. I do, too.

The View from Canada

This is a post from my Okanagan, Canada blog. It shows some of the lessons I have drawn from my recent stay in East Iceland, and explores what Gunnar Gunnarsson meant by poverty and wealth.

P1530046Harold and Gunnar

Sharing a last windy debate in the East.

What passes for environmentally sound practices today are deep reflections of an economic system, but they’re not green, and they’re not going to ensure either the survival of the earth or of our children. Right now, the City of Vernon, British Columbia is debating whether to keep spraying treated sewage water over indigenous grasslands, golf courses and soccer fields in infilled wetlands or to just pour it into Okanagan Lake. The issue is cost. The reason for that is that “land” and “water” are considered “raw materials”, which are “capital” in an economic system that mines the earth’s creative potential, without ever replenishing it. What I learned in Iceland over the last two months is that “land” and “water” are not raw materials, and creative potential is the only potential there is. An economic system that is complacent about wasting that potential has no future. The one green option in Vernon, to rebuild the grasslands so that the water is moved by the sun and gravity again, at reduced cost and leading eventually to no cost at all, or true wealth, is not part of the debate, although it should be leading it. Here, let me show you. Below is an image of Okanagan Landing, taken this morning, looking Southwest from the Bella Vista Hills.

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Now, let me show you the image again in an annotated version, so you can see clearly the story it tells.

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A Story of a Lost Environment

The indigenous grassland in the foreground has retained at least some of its capacity to move and store water and to process it into food. The vineyard to the right has mined this environment for three raw materials: “sun”, “land” and “water”, in order to increase the sale prices of the houses on the subdivision above them. The water in the lake is fossil water, left over from the melting of the glaciers 10,000 years ago. It regulates the climate, and ensures that life can live on the hills. It is not for use. The infilled wetlands and the lost grasslands above them are irrigated with water removed from the system that feeds the lake through its forests, grasslands and wetlands. It costs millions of dollars to do, against the millions of dollars of free profit from the land that the earth would otherwise have provided. What’s more, almost all of this earth has been alienated from public use, for now and forever in the future. Now, let me show you a different economic model. This one’s from Iceland.

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Just one of the Kazillion Un-named Waterfalls in Iceland, Suðurdalur

Now, take a look at the annotated version below, to see the story this piece of earth tells.

annotatedturf

This was once home. Although the over-grazing induced by poverty led to the depletion of the original birch forests here, the Icelandic system of retaining the creative capital of the environment has allowed for reforestation, without impacting future creative uses of the land, including such public uses as tourism or recreation. Future wealth has been created. What wealth was there in the past has been retained. This isn’t always quite what it seems. Here’s what that waterfall above looks like from the current road below …

junkEvery bit of wealth that has been removed from the cycle of this piece of earth, in the form of capitalized equipment of one form or another, has been used until it is out-dated, in the fashion of such products, and then is banked, so that the creative potential within it can continue to benefit the farm. It was never the product that was important, but what went into the product. The shape of a piece of metal is more valuable than the metal itself. Here’s that reservoir of creativity again, this time with my little rented Yaris. Someday, it will retire to a farmyard like this — where it will be no less valuable than it is today, ready for its creative energy to be mined for new purposes.
lotsajunk

None of this is junk. In a fully capitalized system, such as the one in Vernon, this material would be melted down and recapitalized as new material, and all of the human ingenuity it contains would be lost, as would the original investment, which came from sheep grazing these hills. As such, the above image is actually an image of environmental sustainability and green thinking. So is this…

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Ruined Farm, Reyðarfjörður, Iceland

Notice that the old turf-wall system has been incorporated into the new Post-World-War II system of using discarded American military materials. Ingenuity is something that Icelanders are loathe to waste, and which Canadians discard readily because in Canada’s economic system that ingenuity and the creative potential of the land it draws upon has long ago been mined, capitalized, and replaced. That all costs money. Not only that, it costs earth. I’m not romanticizing here. I mean, there are ruins in Iceland. For example, here’s a ruined turf house in Reyðarfjörður…

turfhouse And here’s the ruin of the post-War concrete house it was replaced with …

window Like the turf house, it was not built to last, because it was not removed from a natural process. It spent no creative energy. It only gave it form for a time. The thinking that went into the construction of this house utilized old scraps, such as the iron bar that used to tie the wall together above this window that looked out from the kitchen, next to the stove.P1440496

Over and over and over, the Icelandic writer Gunnar Gunnarsson pointed out that poverty is the greatest wealth. Those are the words of a man whose mother died of poverty when he was eight and who had so little economic wealth when he was young that it wasn’t a part of life at all. What then did Gunnar mean? Among other things, he meant this:

ropeBeach Wrack, Reyðarfjörður, Iceland

To any man who lived on what he could scrounge from land or sea, this rope would have been great wealth. It is now garbage, because it has no capital potential and thus, in a capitalized system cannot be exchanged for wealth. The seaweed that would have once fed the man’s sheep, is also now waste upon the shore — although it is as fully wealth as it was once in the past, and perhaps will be some day again. Gunnar meant more than that, though. He also meant this:

wallhouseMultiple Generations 

Stock buildings (foreground), fence, turf house, and boat shed by the water … this was Gunnar’s Iceland: a country where wealth that came from human creative energy meeting the creative energy of the land was built up over time. Its products (wool, lambs, children and so forth), were created directly out of this energy. In other words, they were creative products, not the physical ones that capitalization demands. As such, they could be sold without diminishing the land’s capacity to provide more creative energy — something impossible in a capitalized system, in which the wealth follows them, extracted continually from the earth, which is compensated only with money that can only be spent on products that lie outside of the land’s cycles and which must be continually replaced, generation by generation. This is what the Vernon model has done by removing water from the earth’s own economy and placing it in a technical framework, which must nonetheless be paid for by the land. These price includes a social cost, as real as any other economic input. Not only is the transformation of water into a utility economically unviable in the long term, but it costs this:

iceClose up of the Water Fall I Showed You Above, Suðurdalur

Without beauty and mystery, there is only enslavement and poverty. Let me put that another way: once the creative potential of earth has been spent, it loses all beauty and mystery and ceases to be earth. It becomes a product, and the people who live upon it become products as well. In the economic system in Vernon, British Columbia, every piece of earth gets removed at a certain point in history and “developed” — usually into subdivisions, and is no longer a part of the earth’s economy. Building that economy, however, is the goal of environmental sustainability. As the Icelandic model shows, it can be done in a couple ways, at least: one is to maintain an economy built on creative physical energy rather than on capitalization; another, perhaps more practical in our present age, is maintain that creative physical energy within the products already paid for and developed, such as this:

silhouetteHorse-Drawn Manure Spreader, Skriðuklaustur, Iceland

This piece of antiquated machinery represents the lives of hundreds of sheep and many men and women and horses who lived and worked here. It also represents the energy of its designers and creators, and of the men who mined the ore and the others that smelted it into the iron that made it, and the others that shipped it here. Withdrawals can be made from this bank of energy in the form of useful pieces of fabricated steel, which represent the social and creative energy that went into them, and which can be recombined into articles of new cleverness, not new machines, per se. Withdrawals can also be made more directly on the social capital of this machine, by turning it into art, or history, or tourism, or a deep sense of belonging, or respect, or a connection with one’s ancestors. That is what it is to be a human on this earth and of this earth. It is not a world of things. It is not a world of raw materials. It is a world of creative potentials, in which the economy is creation. The earth keeps giving us chances. It’s time to run with some of them. Here’s one…

yellowNot Green but Yellow and Blue

The photo doesn’t show it, but that’s a wild bee with a neon blue abdomen, on a dandelion growing in an overflow beach parking lot near Okanagan Lake. The bee lives on wild land, while domesticated bees are dying out. The dandelion has colonized land that humans have thrown away from their capital plans. It has, in other words, brought creation to it, and holds within it the potential for several new industrial ventures, which will enrich the creative potential of the land in the same way that the flower has by growing here, rather than than making withdrawals from it that it never intends to repay. Well, the earth is telling us that it is time to repay our debts. It doesn’t want our money. It wants us to create within its own economy. Rebuilding the earth would be a use of economic capital that would show a tremendous return on investment. Here, for instance:

sask3 Saskatoons in Full Flower

Another industry in potential. These lush, fruiting bushes live on free water.

… and here …

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Remains of Indigenous Gardens, Bella Vista

Yet more industry in potential.

And what are our politicians talking about? Sewage and money.