Buddhist Spectrum

Buddhist interpretation on money matters

Venerable Ajahn Punnadammo Arrow River Forest Hermitage, Canada

The whole world is currently suffering a major economic crisis, which has a good chance of being as severe as the depression of the 1930’s. Can Buddhist teachings help us understand what is happening? I would like to suggest one way in which it can.

The financial markets reflect the cumulative result of millions of individual decisions.

The Buddha said decisions should never be made on the basis of greed, anger, fear or delusion. Greed and fear have obviously poisoned the well, but I would like to focus on something a little deeper, how delusion has worked in creating the present financial collapse.

Specifically, the whole scenario demonstrates the truly amazing power of mental formations in human history. Money itself is an abstraction.

At some point in the distant past people agreed to believe that this shiny rock was worth those two cows, even though the real, utilitarian value of a cow is considerably more than the real, utilitarian value of a shiny rock. Paper money is an even more refined level of abstraction.

Bucking the ‘gold’ trend

This piece of paper with the queen’s face, or a spooky eye-in-the-pyramid design or whatever it might be, is said to represent so many shiny rocks, which are worth so many cows. Eventually, they dropped the fiction about the shiny rocks.

Having gone off the ‘gold standard’, such currency is sometimes called ‘fiat money’, meaning that the value is established purely by government fiat. This is not really accurate.

A dollar bill doesn’t have value because the government or the central bank says so. It has value because the people believe it does. It is faith-based currency. It is not surprising that paper money was first used in China, a civilization deeply affected by Buddhism and Taoism, and used to philosophical subtlety.

Consider what is happening here; material goods and hours of labour are freely traded for an agreed convention.

Something on the material plane of reality is being surrendered for something on the purely abstract plane of mental formation, which is void and without substance. Maybe that eye-in-the-pyramid is telling us something.

Fast forward to the dawn of modern capitalism in post-reformation Europe. The ‘real economy’ of goods and services was becoming complicated, involving more and more kinds of goods, some of which were being shipped literally across the planet.

To facilitate all this action on the plane of material reality, various new kinds of mental abstraction were invented, usually represented by fancy bits of paper. Insurance, promissory notes, bonds and company stocks all came into being, each representing a contract between parties to fulfill certain obligations.

Role of mental formations

It is significant to observe that stock certificates, bonds and so forth were often printed with all kinds of elaborate borders, seals, watermarks and other decorations. This did serve the utilitarian purpose of making forgery more difficult, but even more importantly, it had a symbolic function.

Much like ritual in religion, it worked to awe the observer that something special was happening here. It wasn’t long before such pieces of paper were trading for more than their book-value.

The stock market, in its original manifestation was not very far removed from its base in material reality. If you bought a 10 percent share in the East India Company it represented something close to 10 percent of the ships and goods of the Company and entitled you to 10 percent of the profits made. The value of the stock would, in theory, go up only if the Company acquired more ships and trade goods.

Of course, mental formations, although void of substance, have a powerful energy when millions agree to believe in them. And they also have the tendency to proliferate. From the earliest days of capitalism the phenomena of ‘speculative bubbles’ made themselves felt. As company shares traded hands, the value become divorced from the underlying reality it was supposed to represent.

The value of a share was no longer based on how many ships the company had, it was now based on what the buyer and seller mutually believed it to be. If the buyer believed he could later resell it for more to somebody else, he didn’t care about the underlying value.

Instructive economies

This is sometimes called the ‘Greater Fool Principle’. If the value of a company share in terms of the real goods it represents is, say one hundred dollars, a person would be a fool to pay one hundred and fifty unless there is a greater fool out there to whom he can sell it for two hundred. The value of the share becomes a pure abstraction. You might as well be trading tulip bulbs. Or ‘credit-default swaps’.

The case of tulip bulbs is instructive. Seventeenth century Netherlands was the trading hub of the nascent world economy. Tulips, now a national symbol of Holland, were first imported into that country with the trade ships. Cultivating tulips became a national craze.

Rare varieties began to fetch a premium price. At some point a line was crossed from gardening hobby to speculative mania. A rare bulb was bought, not with the intention of planting it, but with the idea of reselling it for more. Hundreds of thousands of guilders changed hands for a single bulb.

The problem, of course, is that inevitably you run out of fools. Then the whole bubble bursts with frightening rapidity. The whole thing would be comical if the abstract world of imaginary numbers on bits of paper or computer disks didn’t rebound on the real world. Many 17th century Dutch burghers had sold real assets like land or ships to ‘invest’ in tulip bulbs. Then the inevitable happened and the tulip market collapsed overnight leaving many people ruined. This is usually considered the first speculative bubble of the capitalist age.

Many people today have put the earnings of their labour into the stock market or other financial instruments that turned out to pure bubble. Real goods thrown into an imaginary realm. The disconnect with the underlying real economy has become complete.

Poya’s general impact on laymen

Somapala Arandara

Buddhists are ready with religious arrangements to celebrate the Nikini season. The most vital past event connected with Nikini Full Moon Day was the convention of the First Council on the Dhamma. The next important and pragmatic aspect of Nikini is the belated commencement of the stay-indoors custom of the Bhikkhus during the rainy season. (pasu wassana). In ancient India, Bhikkhus used to roam vast areas for nine months of the year to preach the Buddha’s teachings (Bahujana hitaya; bahujana sukhaya).

During this recess of the rainy season, they could get a respite which would give them physical rest and mental relief. And at the same time, the indoor-staying offers an opportunity for closer relationship between the Bhikkhus and the devotees.

Is this tradition of celebration a showy feature of life? For a few, it may be so. For the majority, however, the traditional Poya days are an occasion for aspiring to seek their deliverance from suffering. Then, how are they useful to us? Through scientific advancement and material progress, man has conquered the planets. Yet, he is engrossed in turmoil and enmity with his fellow beings.

Enlightenment vs ignorance

This is because of his ignorance on nature. Without knowing who he really is, man tries to lead his life on a note of mistaken identity, assuming a false identity of a bloated egoist. He has to strive for realisation or enlightenment to dispel his ignorance. He cannot achieve Enlightenment abruptly but gradually he can awaken his mind to realise the true nature of man and his life.

Everybody must make an effort to form the proper frame of mind which gives him a courage and tranquillity and an insight into the nature of existence. We do not live on a bed of roses and our life does not go ahead as smoothly as we want it to be.

We have to face problems and hardships that crop up among our fellow beings. We cannot evade all that. As we try to see the roots of these problems, we can have a deep insight into life. While the Westerner tries to conquer the universe for material gains, the Buddhist Easterner looks for harmony with nature or spiritual satisfaction.

One should, therefore, learn to pacify senses and purify mind. The purpose of calming down senses is the elimination of desire which is the root cause of all our chaos. It is, therefore, prudent to live a content life. Then it would become a bliss: Santutthi paraman dhanam.

Financial prosperity

According to the Buddha, economic welfare is a requisite for man’s happiness. Nevertheless, moral and spiritual development is an essential feature for a happy peaceful and contented life.

This does not mean that one ought to eschew economic prosperity to gain moral and spiritual uplift. A layman can conveniently enjoy material comforts without going into extremes and engage himself in moral and spiritual actions.

In a society riddled with conflicts, contests, deceit, lust and the like, the artificialities of social conventions are continually confused with ethical principles which are valid and unchanging.

The Buddha’s mission was to enlighten men as to the nature of existence and to advise them how best it is to act for their own happiness and for the wellbeing of others.

The morality contained in all the precepts can be summed up as follows: To avoid evil; to do good, and to purify the mind (Sabbapapassa akaranam - Kusalassa upasampada, Sacitta pariyodapanam - etan Buddhana sasanam - Dhammapada).

The Buddhist layman leads his life in such a way that he observes the five precepts in his daily life. This way of life helps him live in harmony with others with mutual trust and respect. It also becomes the beginning of his spiritual journey towards emancipation. These precepts help him restrain his body, speech and mind:

Kayena sanwaro sadhu,

Sadhu vacaya sanwaro,

Manasa sanwaro sadhu,

Sadhu sabbattha sanwaro. (Sanyutta Nikaya)

This self-motivated control enables one to eliminate crude passions like lust, hatred, jealousy and revenge expressed through thought, word and deed.

Meaningful rituals

It is customary for devotees in Buddhist countries to visit the temples on certain days of the month.

The Buddhist month mentioned here is the lunar month which has 28 days. Poya days are the weekly phases of the moon; major ones being Full Moon Day and New Moon Day. Devotees make it a point to go to the temple at least on the Full Moon Day.

Some devotees are satisfied with fulfilling rituals (amisa puja) like offering flowers and incense to the Buddha. In doing so, they find a chance of reflecting on the impermanency of life. Merit accrues thereby.

Others with a deeper need on religious behaviour, observe the eight precepts abstaining from: (1) killing; (2) stealing; (3) sexual intercourse; (4) lying; (5) liquor; (6) taking food after midday; (7) dancing, singing, music, unseemly shows, the use of garlands, perfumes and things that help beautify and adorn the person, and (8) using high and luxurious seats. By observing the eight precepts, they keep themselves away for 24 hours from the chores of their domestic life.

They devote the whole day and night on a Full Moon Day to the observance of the precepts. By fasting at night on this day, they train themselves to be satisfied with only two meals: breakfast and lunch, the least amount of food sufficient for the sustenance of their bodies. This helps them keep their bodily excitements under control.

Thus they get away temporarily from material comforts and sensual urges. In this manner Poya is instrumental in causing contentment in man who is in a never-ending pursuit of entertaining his senses.

The gift of insults

Lotus Heart

Once there was a great warrior. He was quite old, but he could still get the better of any challenger. His reputation was spread far and wide throughout that land, so many students wanted to be under his roof.

Things went on smooth enough until an infamous young warrior stepped into the village. This warrior badly wanted to crush down the master. He had an uncanny ability to spot and exploit any weakness in an opponent in addition to his physical strength. He would wait for his opponent to make the first move, thus revealing a weakness, and then would strike with merciless force and lightning speed. No one had ever lasted with him in a match beyond the first move.

Much against the advice of his concerned students, the old master gladly accepted the young warrior’s challenge. As the two squared off for battle, the young warrior began to hurl insults at the old master. He threw dirt and spit in his face. For hours he verbally assaulted him with every curse and insult known to mankind. But the old warrior merely stood there motionless and calm. Finally, the young warrior exhausted himself. Knowing he was defeated, he left feeling shamed.

Somewhat disappointed that he did not fight the insolent youth, the students gathered around the old master and questioned him. “How could you endure such an indignity? How did you drive him away?”

“If someone comes to give you a gift and you do not receive it,” the master replied, “to whom does the gift belong?”

Well, this story may remind you what came to pass between the Buddha and a particular filth-mouthed Brahmin. Zen is a part of Mahayana Buddhism, which believes everyone can become a Buddha. This Zen story in a way likens the old grand master to a Buddha for being tough-headed.

On the other hand you may wonder if the young chap had no other means to approach the old man. Remember young chap wanted to find a weak point in old man. He should have tried something else when his first attempt became a failure. But the whoever authored this story wanted to give a particular message: insults won’t last as long as they go unreacted.

It should remind you of Mahatma Gandhi who emphasised the non-violent triumph. The young yet insolent master had used the famous method to attack the old man: insult. You can be very calm, but a little nagging may be enough make your chips down.

For some it may seem like a dispute between the superior-minded and inferior-minded. Old grand master takes himself as someone who is made of rubber and the young one made of glue; everything the latter says bounces off himself and sticks to himself. How thick-skinned is old warrior to trap the young whippersnapper in his own trap?

You must always remember that reacting to offensive behavoiur only ends up with serving your rival exactly what they need. If the old man gave in for the young one, that would definitely turn out his Achilles Heel. Did old man know this? Even then he was brave enough in patience, very brave. It’s not what happens to you that matters, it’s what happens in you.

People can give you various gifts, but most of them we should not accept. But not to accept may seem rude, so best thing is to accept politely and dump it somewhere.

This story may remind you the age old story of two old great masters who were preparing to fight in a Kendo match, Japanese swordsmanship. When the match started, neither one moved from their fighting stance.

In fact they both stayed exactly still for five minutes until the match was finally called a draw. If they made the first move it would reveal their weaknesses, and they would be defeated. Now that is something really awesome and awful, isn’t it?

This is one of the best Zen stories because it illustrates a universal principle. The setting for the story is appropriate because its lesson is a two-edged sword: there is the obvious consequence of the elder warrior refusing to accept the younger warrior’s gifts, and also the more subtle but implicit idea that a gift cannot be accepted without quid pro quo.

The old warrior also had gifts to bestow — knowledge of his skill and his weakness.

The younger man, because he focused only on weaknesses, was blind to the older warrior’s proffered gift, and refused it. The elder retained his strengths while the younger had to leave empty-handed.

This story reminds me of the question, “If a tree falls in the forest, and no one is around to hear it, does it make a noise?” The same question can be asked in this story, paraphrasing “If an insult falls on deaf ears, who is insulted?”

How nice is it if you can tolerate insults? This is the message youngsters should learn from adults - remember tomorrow is International Youth Day!