> _"The extraction, abstraction, and accumulation cycle forms an autopoietic and self-evolving loop. The capacity for each of these increases our ability to further increase these capacities… leading to a classic self-reinforcing exponential curve. We affectionately refer to this autopoetic triplicate as the Ring of Power. It is figuratively what needs to be taken back to Mordor and destroyed. Or rather smelted into something else."_ [Daniel Schmachtenberger, New Economics Series: Part 4](https://civilizationemerging.com/new-economics-series-4/) ## Accumulation **Accumulation** of excess food allowed ancient communities to survive during times of scarcity. Before food storage was possible, survival required not extracting beyond the limits the environment could replenish. Individual actors accumulating as much as they can leads to the reduction of resources in circulation. Therefore, accumulation both requires extraction, and drives it. As accumulation became the norm, financial services emerged, leading to the economic system we have today. ## Extraction **Extraction** is the value taken out of the system that isn’t replenished. In other words, profit. Not everyone can profit in a closed system, because value gained on one side has to be balanced with a loss somewhere else. Therefore, profit is created by extracting as much value from nature and other people as possible. Whether it’s Rockefeller with oil or Zuckenberg with behavioral data, economic success in this means maximizing the extraction of value. ## Abstraction **Abstraction** happens when a resource is extracted from its environment and transformed into a more accumulable and exchangeable form. In order for a tree to become accumulable and exchangeable, it needs to be cut down and turned into lumber, which can then be used, or stored, or exchanged. Insofar as it is a form of stored wealth, the lumber represents abstract economic value in addition to its tangible value as a material. The tree is further abstracted if I sell the lumber and store the value as currency, which only has representational value. If I then store the currency as digits in a digital bank account, this adds yet another layer of abstraction. In these cases, tangible value is sacrificed for ease of exchange. ## Dive Deeper ### Further reading: [New Economics Series: Part 4](https://civilizationemerging.com/new-economics-series-4/) ### Topic relates to: [Metacrisis](https://diome.xyz/2+%F0%9F%8C%BF+Leaves/Metacrisis) [Prevailing Economic Systems](https://diome.xyz/4+%F0%9F%8C%B0+Seeds/Prevailing+Economic+Systems) [Reforge the Ring 1- Accumulation, Extraction & Abstraction](https://diome.xyz/7+%F0%9F%8D%82+Compost/Reforge+the+Ring+1-+Accumulation%2C+Extraction+%26+Abstraction) [Reforge The Ring 2- Distribution, Contextualization & Instantiation](https://diome.xyz/7+%F0%9F%8D%82+Compost/Reforge+The+Ring+2-+Distribution%2C+Contextualization+%26+Instantiation) [New Economics Series](https://diome.xyz/7+%F0%9F%8D%82+Compost/New+Economics+Series)