Sociology of finance
Bank of Nature sees finance as a social structure for social decision making. Through finance society can choose what our future should be. Fiduciary finance, a Bank of Nature innovation, uses society’s aggregated savings in social funds like pensions to apply social values to deal making at scale and to address directly, through stewardship missions, our most alarming global pandemics. This is how a fiduciary fund protects future members: by choosing finance that supports a safer alternative path toward endgame sustainability.
Finance is a whole that is made up of many parts, each with its own subparts.
The parts and subparts comprise people expert in finance (financiers) aggregating surpluses from individuals for a specific purpose, and deploying those aggregations as investment in enterprise according to a strategy.
There are six such parts:
- Rich people aggregating surpluses saved through family and friends to care for their own. Those surpluses are deployed through patronage into enterprises selected for impact, where impact is whatever the family and its friends agree is good for the family and its friends
- Do gooders aggregating surpluses saved through church and philanthropy to care for others, deployed through grants for mission;
- Law makers aggregating surpluses saved through taxing and spending to provide for the public health, the public safety and the public welfare, deployed through subsidies for policy
- Moneylenders aggregating surpluses saved through banking and lending to manage cash flows, deployed through credit for monetizing property
- Speculators aggregating surpluses through exchanges and funds for idiosyncratically and opportunistically putting money to work making more money, deployed through securitization for speculation on growth
- Superfiduciaries aggregating surpluses through pensions and endowments for programmatically providing certainty against life’s future financial uncertainties (income in retirement and for civil society institutions), deployed through negotiation for sufficiency.