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Today’s post takes a closer look at a troubling tale from Canada. During the period between 2001 and 2008, as American investors were bilked out of money by Bernie Madoff, a similar Ponzi scheme was taking place in the north. However, in the northern version, the McGuffin at the heart of the grift wasn’t finance/investing…it was pigeons. The man behind the scam, the pigeon king himself, was Arlan Galbraith (his business was even named “Pigeon King International”). In seven years he sold $42 million worth of pigeons and, when his empire collapsed, he was on the hook to buy $356 million worth of breeding pairs of pigeons. Aside from Mike Tyson’s prize roller pigeons or suchlike fancy birds, pigeons are not really expensive creatures. The mind shrinks back from imagining how many pigeons one could buy for $356 million dollars.
The pigeon Ponzi scheme didn’t really make any sense as a business or as a scam. Galbraith sold breeding pigeons to small farmers with a promise to buy back the offspring. He would then sell the resulting pigeons to other farmers with the same promise. Since he paid for the fowl (and since farmers are competent at poultry husbandry), the pigeons produced by this scheme burgeoned in population. Galbraith enticed investors with talk of breeding fancy pigeons to sell to foreign pigeon fanciers, poultry, magnates and Arab sheiks. He also claimed his program was producing a new sort of meat bird to bring squab to the dinner table everywhere in lieu of chicken and turkey. Yet the birds in the “program” were just normal garden-variety pigeons. It was a recipe for limitless growth to nowhere. Hundreds and hundreds of farmers joined Pigeon King International as suppliers/marks.
Except, of course, there is no such thing as limitless growth. As soon as Galbraith ran out of new investors, he could not pay for all of the pigeons being produced (it is a miracle he dealt with the logistics of this crazy idea for as long as he did). The end was profoundly sad. Small farmers across Canada were left with whole barns and aviaries filled with unsaleable mongrel pigeons. There were no Arab sheiks. There was no market for squab. There was nothing but the pigeon king dashing around the country buying pigeons and immediately selling them to others.
The authorities were left with a situation where broke farmers had hundreds of thousands of worthless pigeons eating them out of house and home. Releasing the birds into the wild would have been cruel to the pigeons (and dangerous to public health) so the authorities visited the largest barns with carbon monoxide rigs to gas the pigeons. Smaller operations were left euthanizing their stock on their own. Galbraith was arrested and conducted his own defense (in a manner as earnest, incompetent, and peculiar as his business). He is now in jail and, since he is not young, that is probably the last act of his tale. Innumerable farmers were ruined by this saga. Hundreds of thousands of pigeons died. The pigeon king is spending his dotage in prison, and for what?
I have been staring at this story in puzzled wonder trying to determine the lesson (as more than a general cautionary tale against pyramid schemes). Aside from pyramid schemes, there is no precise analogy for the pigeon king’s business plan which leaps to mind…save one. The pigeon scheme required infinite growth to work (and more and more energy to maintain) even though there was no final payoff plan or escape hatch. It reminds me a bit of, well, everything.
Society requires everyone to buy plastic junk that nobody will want in a year. The garment industry churns out shirts that disintegrate after we wear them a few times. The internet mostly consists of website after website of the same listicles and idiotic celebrity folderol. If we stopped making this stuff and did better things with our time, everyone would go broke and the world economy would break. There are worthwhile things going on and goods and services which people truly need (or really want badly enough to be worthwhile), but beneath it all there is the same impossible promise of endless growth. If that growth sputters out in any big way, the great international machine which we are all part of breaks. Even if (human) populations decline, the capitalist system enters a dark feedback loop of too few consumers which is hard to escape.
Conmen call their targets “pigeons.” The story has me concerned that we are all pigeons in both a figurative and a literal way. We are all busy producing pigeons of one sort or another for the Galbraiths of the world and praying that we can keep juggling everything before the Earth’s climate breaks, or we run out of oil, or there are too many bankrupt people to keep the system afloat. Last week I wrote a post excoriating economists for not understanding primate behavior. In this post I am begging them to go back into the library and come up with a system that does not rely so utterly on impossible growth targets. If you walk through my beloved home of New York and look at all the people strutting bipedally in their drab business casual garb I feel like you might be reminded of certain avian colonies. Take a look at Japan’s demographics, or the projected population of the United States…or the world, then compare those graphs with what companies say they will sell. Spare a moment of panicky prayer for all the pigeons…and for the pigeon king too.
Today’s post takes us back to Namibia. The vast empty desert nation is the home to beautiful cheetahs, the world’s fastest land animal. In fact Namibia has the greatest number of cheetahs in the world. Namibia is also (now) home to heavily armed sheep farmers who make their living by raising delicious delicious sheep in the cheetah-haunted arid scrublands. This mixture has led to…um…misunderstandings of all kinds.
Cheetah (Acinonyx jubatus) on dune with desert landscape in back ground. Namibia.
There is no need to dwell on just what the hell German sheep farmers are doing in a vast African desert anyway (or whether their forbears committed terrible genocidal acts in 1894 to obtain their lands). History is rife with…misunderstandings. What is important is where we stand now. Because of habitat destruction, disease, and hunting, cheetahs are fading from the world. And here is where the heroic Anatolian shepherd comes in.
Anatolian shepherds are huge powerful dogs which trace their heritage to Turkey at the dawn of civilization. The first herdsman faced similar problems to today’s Namibian sheep farmers (namely unreformed wolves, lions, and leopards brazenly preying on their livestock). These early farmers responded by breeding big bold dogs to bodily confront large predators. However, as civilization moved onward, the nature and appearance of herding dogs changed too.
An Anatolian Shepherd with a border collie
Most modern shepherd dogs are smaller than cheetahs. German shepherds, collies, corgis, et cetera tend to have long coats for cold climates. They also react to threats by herding their flocks toward safety. This was not working in Namibia, as it triggered cheetah’s hardwired chasing instincts which lead to even further carnage misunderstanding.
With short pale hair, ideal for the desert heat, Anatolian shepherds stand 69 to 74 centimeters tall and weigh as much as the largest cheetahs. They are less “shepherds” who move flocks around and more “guards” who directly confront predators. This triggers the cheetah’s hardwired running away instincts. As misunderstanding decrease, the cheetah population in the world’s most populous country (for cheetahs) is stabilizing. Happy news for beleaguered cheetahs and farmers…and good news for the Anatolian shepherd too a big beautiful dog with a new (old) job.
ferrebeekeeper 