Conjure valueMy prior post “The Tale of Two Cities” demonstrates that the intangible social value conjured into existence by the bridge that connects two fair cities far exceeds the ‘tangible’ value of that bridge.  Yet, only the tangible value of the bridge is accounted for on a balance sheet such as GDP.

The Conjuring of Intangible Values

This may seem trivial until you observe that people are paid for their intangible assets (knowledge, creativity, and engineering calculations) as a percentage of the far lower number while the bankers, government, and corporate interests compensate themselves as a percentage of the far higher number.  The difference appears to be unaccounted for.

The Tail of Two Cities article concludes that the value that is conjured into existence by both the bridge and the fractional reserve system must be equal, by definition; otherwise the metaphorical breezeway that connects the two worlds would fall.

Bitcoin suffers from a similar curse as The Tail of Two Cities.  The prevailing argument against the crypto-currency is that it has no intrinsic value.  I have personally argued that a currency must represent human productivity intrinsically or else no other human would be willing to work (be productive) in exchange for it.  An article by Paul Bohm “The Value Of Bitcoin is Decentralization” makes a good point that the intrinsic value of Bitcoin is based on the value conjured into existence by increased productivity to society by what can be accomplished with Bitcoin that otherwise would be impossible without Bitcoin.

So if the valuation of a bridge crossing the river and the valuation of Bitcoin crossing the broker both suffer the same curse that there is no accounting system for intangibles, wouldn’t it make sense to solve that problem first  – i.e., measure into existence the intangible value of the Ingenesist – and then release those millions of human intentions (bridges and Crypto-currencies, not withstanding), into the system of trade?  This is the problem that Curiosumé proposes to resolve.

I believe that we first need to solve the under-mining problem that there is no accounting system for intangible assets.  Only then can there be intrinsic value in the conservation of those assets

… then maybe none of this would seem so mysterious.


Nobody cares if the congress implodes. People care about the institutions that keep the water clean, lights on, food fresh, streets safe, children educated,  medical services delivered, etc.

Institutions are run by people and there is no practical benefit of government when their primary role is to abolish the institutions that people depend on.  In effect, they abolish themselves.

For the last 5 years, since the 2008 train wreck, tens of thousands of start-ups and social media ventures have arisen in direct response to institutional failures.

  • When people don’t like where their taxes are spent, they reallocate their contributions elsewhere 
  • When education funding gets slashed, new forms of education emerge.  
  • When a currency inflates too fast, new forms on non-inflatable currency are deployed.  
  • When corporation reject their social charter, new forms of production systems are created. 
  • When jobs disappear, people reallocate their knowledge assets elsewhere 
  • When the law favors the few, new justice emerge

…and it goes on and on…

Today, we have constructed a scaffolding and everyone is laying their innovations and social apps and collaboration tools on he scaffolding.  When the output of one app becomes the input of another app, and so on, the new economy will integrate sufficiently to effectively bypass the governmental institution that is failing within it.  At that point, a new economy will emerge.

The following list of social platforms was compiled by Bert-Ola Bergstrand from Social Capital Forum in this document. From my experience and observation – there must be millions of people across the globe thinking along these lines.  People who would respond to a new way of organizing if a complete system were to emerge – or if the old system were to slowly evaporate.

TRY THIS: Please take a look through his list and visit several sites randomly and see what pops up. Now, try to envision the integration that I described above where the output of one platform becomes the input of the next platform, and so on.  This is how the future will arrive.  This is the next step that we must take together – integrate.

http://www.ogunte.com (women focused)
http://www.socentix.com
http://www.volans.com/volans/
http://www.tallbergfoundation.org/
http://solabs.org/
http://www.hubbayarea.com
http://www.ideasproject.com/index.jspa
http://www.unconvention.co.in/
http://www.facebook.com/pages/Social-Bancorp/183421055082853
http://groaction.com/
http://www.facebook.com/pages/GroAction/215195255184778?sk=app_208195102528120
http://www.joyliving.net
http://www.biomen.org
http://the-hub.net/
http://www.williamjamesfoundation.org
https://www.facebook.com/pages/Call-to-Change/159881987362799
http://www.sitawi.com.br
http://www.globalgiving.org/projects/sitawi-loan-fund-for-social-enterprises-in-brazil
http://www.socialcapitalmarkets.net
http://w1sd0m.net
http://www.globalsustainabilityjam.org/
http://www.globalservicejam.org/
http://www.openworld.com/
http://factory.makesense.org/comingsoon
http://www.mygoodact.com/
http://www.makinglocalfoodwork.co.uk
http://thefinancelab.ning.com/
http://mindtimemaps.com
http://mindtime.com
http://www.wecreate.cc/
http://collabcafewelly.tumblr.com
http://nationbuilder.com/
http://wwww.socialenterpriseeurope.co.uk/
http://techaloo.com/
http://www.socialenterprise-chicago.org
http://www.facebook.com/ecoNVERGE
http://www.facebook.com/CAPix-Asia
www.relayfoundation.org
www.opencsr.com
http://www.goodfornothing.com/about/
http://www.linkedin.com/groups/Social-business-Benefit-corporations-80184?gid=80184&trk=hb_side_g
http://www.opportunejobs.com
http://www.p-ced.com
http://www.seeditproject.com/
http://www.facebook.com/BluePlanetLife
http://www.youtube.com/TheRationalFuture
http://www.i-open.org/
http://2le.ad/
http://www.co-society.com/about/our-story/
http://www.kennisland.nl/en/
http://bundlr.com/b/education3
http://incentivize.us/
http://p2pfoundation.net/
http://www.sensorica.co/
https://www.facebook.com/YouthOpportunitiesNews
http://www.facebook.com/Nationalyoungwomenscouncil1/info
http://www.jci.cc/guests/
http://www.harva.co.in/
http://www.gramweb.net/
http://solucionesverdes.co/
http://www.dreamacademia.at/
http://www.collectiveself.com/frequently-asked-questions/what-is-a-friendship-incubator/
http://www.blue-planet-life.org/en/welcome
http://www.facebook.com/AfricaIZWI
http://globalimpactcollective.org/
http://www.leadersinstitute.com.au/aspx/home.aspx
http://www.rehan.com/
http://www.idec2013.org/ (International Democratic Education Conference)
http://www.mediapoint.md/
http://greensmyles.com/
http://www.bagosphere.com/
http://shapeshifters.net/
http://portal.educar.org/
http://www.coffeeshopgurus.com/ (Social Enterprise promoting Youth & Women Entrepreneurship. Franchise/ License Available)
http://www.communityled.co.za/
http://www.lgtvp.com/
http://www.azimpremjifoundation.org/ http://www.facebook.com/groups/smallisgreat/ http://www.facebook.com/groups/sosialentreprenor/
http://dreamups.org/
http://producism.org/
http://metacurrency.org/
http://www.ingenesist.com/
http://p2pfoundation.net/
http://www.arthaplatform.com/
http://www.facebook.com/pages/Common-Unity-Project/407636092606114?sk=info
http://www.eq-cap.com/
http://www.livingmandala.com/Living_Mandala/Living_Mandala
http://maximpact.com/
http://www.mindmeister.com/190131707/living-bridges-planet
http://reconomy.net/
http://www.akhuwat.org.pk/
https://www.coursera.org/
http://www.iachievegroup.com/
http://pashafund.com/
http://dreamups.org/
http://www.innovativepeople.eu/
http://www.fsg.org/
http://www.giftingprosperity.com/
http://trap.it/2cLMAE
http://about.me/reachscale.com
http://www.thecitizensmedia.com/
http://wechangeworlds.com/
http://www.coolmeia.org/
http://www.molequedeideias.net/
http://www.silo.is/3×11/
http://www.cloud9startups.com/
http://www.facebook.com/SliceBiz
http://iluvmyplanet.com/press
http://www.buckybox.com/
http://www.societal-innovation.org/
http://createachangenow.org/
http://defindia.net/
http://thealternative.in/
http://www.dreamitventures.com/
http://www.svx.ca/
http://www.techpear.com/

Movements/Social Change
http://jellyweek.tumblr.com/
http://funkybusinessberlin.de/index_en
http://www.facebook.com/pages/Call-to-Change/159881987362799
http://www.uterus-myomatosus.net
http://www.WishesWell.com/invite
http://www.bankofideas.org.uk/
http://beyondsustainabilitymag.net/
http://socialforesight.net
http://thesociallab.dk/
http://www.jci.cc/guests/
http://scwf12.wordpress.com/activities/
https://www.facebook.com/groups/219724974712886/ (presente! – education)
http://www.yesworld.org/
http://seedfreedom.in/
http://www.facebook.com/pages/YUVA-Foundation/159965244127954
http://www.partnershipforchange.net/
http://www.icaf.org/ (the arts for the development of creativity and empathy)http://www.facebook.com/ICAF.org
http://www.thinkimpact.com/
http://changeinc.tigweb.org/
http://www.sekem.com/
http://www.peers.org/
http://www.greenpag.es/
http://www.youtube.com/watch?v=zS1WCyEJV3U&feature=youtu.be

 

Social Ventures/Social Enterprise/Social Business/

Here is a list of 200+ that the William James Foundation has worked with:

http://williamjamesfoundation.org/index.cfm?fuseaction=Page.viewPage&pageId=607
http://www.youcancook.org.uk/
http://www.solucionesverdes.org/
http://backpackfarm.com/
http://www.openworldcafe.com/
http://www.joyliving.no/
http://www.biomen.no/
http://www.wessociety.com/
http://www.idea.com.gr/ and http://www.idea.com.gr/i_landing_page
http://openworldvillages.ning.com/
http://globaler-wandel.blogspot.com/2011/11/barcamp-how-internet-changes-our
https://www.facebook.com/pages/Call-to-Change/159881987362799
http://www.betterworldbooks.com
http://www.makechange.tv/
http://w1sd0m.net
https://www.facebook.com/pages/W1SD0M/170262242214
http://www.treeswaterpeople.org/
http://www.intolife.no/
http://www.terracycle.net/en-US/
http://www.socentlab.com/
http://www.buckybox.com/
http://www.firstpowercanada.ca/
http://www.enspiral.com
http://www.purpose.com
http://www.luontoportti.com/suomi/en/
http://www.facebook.com/eco-sTrEAMs (@ eco-sTrEAMs)
http://www.facebook.com/eco.ViVaCity (@ eco-ViVaCity)
http://www.facebook.com/eco.Nable (@ eco-Nable)
http://www.facebook.com/groups/econologics/ (@ ECONOLOGICS – Incisive
http://www.digitalgreen.org/farmerbook/
 

Knowledge Converged!)

http://www.veggbox.appspot.com/
http://ideasociety.com/
http://www.tryggapengarimobilen.se/
http://www.advancednrgsolutions.com/
http://www.p-ced.com
http://www.facebook.com/pages/Aangan/176857645688413
http://www.youtube.com/watch?v=Mwi4d4mCUNk&feature=youtu.be http://www.mothercourage.no/
http://www.openideo.com/
http://www.laplandvuollerim.se/

 

Funds/Financing

http://www.goodcap.net/
http://www.bonventure.de/en/home (only German speaking regions)
http://www.vilcap.com village capital seed funding network for socent
http://www.toniic.com global impact investment angel network
http://hubventures.hubbayarea.com/ seed funding for socent in the SF Bay area
http://w1sd0m.net search 400 institutional impact investors
http://www.slowmoney.com
http://inventure.no/
http://www.fordfoundation.org/Grants/
http://www.soros.org
http://www.asef.org Asia-Europe FOundation

 

Inspiration/Strategy etc.

http://www.blueoceanstrategy.com/ making competition irrelevant
http://foundups.com/ FOUNDUPS® Open Startup – Changing the World Together.
http://100startup.com/tour/ Build a Startup with 100$, keep it lean
http://steveblank.com/ – Steve Blank is a teacher for entrepreneurship
http://projectofhow.com/ – Open library of creative methods.
http://www.cultural-entrepreneurship-institute.de/en/ – Theoretical Wisdom for the Global Society
http://www.respectserendipity.com – Serendipity as the ultimate source of inspiration
http://www.differentworkbook.com – Stories of people who deeply love their work & changing what work looks and feels like
http://www.differentoffice.com – Stories of self-created, soul-satisfying work spaces

 

Inspirational blogs

http://www.sadanamkaur.es/en/programs/excellence-in-learning
http://goodgeneration.org/
http://www.asmundseip.com/
http://truemaisha.blogspot.se/?spref=fb
http://hildygottlieb.com/
http://vicdesotelle.com/blog/
http://sharedtracks.wordpress.com/

 

Text/Knowledge/Books

http://en.wikipedia.org/wiki/Impact_investing
http://www.facebook.com/piceberlin – spreading knowledge for cultural return
http://apps.americanbar.org/abastore/index.cfm?pid=1620439&section=main&fm=Product.AddToCart – Social Enterprise: Empowering Mission-Driven Entrepreneurs


This is the final post of the Financial System Hack Series.  Contrary to conventional wisdom, the currency is the last hack, not the first.  Only after Zertify, Gamidox and Exoquant are established would it be possible to introduce a currency that could compete, if not hedge the dollar.

With Zertify we can estimate the probability that a collection of knowledge assets will be able to execute a business plan some time in the future.

With Gamidox, The Value Game is played where several communities interact around a shared asset such as a condominium, airplane, school, hospital, road, car, or any “product” that has socially redeeming value.

These interactions are measured such that we can assign “value” to the game with the Exoquant algorithm.

So taken together:

If we can predict the probability that the interactions carried out by communities of people (relative to a product) will have a known value in the future, we can represent it as a “cash flow” with a known volatility (risk).  Now, combining many interactions carried out by many communities around many products with known volatilities, we can pool the predicted cash flows into one large diversified cash flow.  Next, we can  cut the large flow into “bonds”, which we can extrapolate to net present value and to fund the community activities.  This very similar to the way that corporation form and raise money – except without the corporation.  While banks continue to issue Debt Bonds, communities will issue Innovation Bonds in parallel

Here is the hack:

In the old days everyone carried gold around with them to engage in trade.  Since gold was heavy, bankers let people keep the gold in their vaults and they wrote little chits that represented the gold.  After a while, people just traded the chits and it was no longer necessary to convert back to gold with each transaction.  Eventually, the gold standard was eliminated altogether and people just traded the paper that now represents their future productivity (debt), not necessarily gold.

The currency of abundance

Likewise, after a while it would no longer be necessary to convert the community currency into dollars.  As the dollar slowly starts losing it’s value under the weight of the debt load people will just trade community currencies.  All of these values are made visible and validated from Zertify, Gamidox, and Exoquant data.

The antigen will not be triggered because this is exactly the same way that corporations interact with banks to capitalizes and securitizes dollar debt, the difference is that we are capitalizing and securitizing community innovation by measuring data, information, knowledge, innovation, and wisdom.  A currency of abundance can then replace the currency of scarcity.

Nothing Changes and everything changes

Corporations and government can continue activities to the degree that they produce socially redeeming value by simply purchasing innovation bonds from the people with their dollars – if they’ll accept them.


In the first post of this series, we identified the 5 components of a financial system and suggested that Zertify, Gamidox, and Exoquant would serve to simulate their functions in a parallel economy before ultimately being adopted completely.

In this post we will identify the hack on the Wall Street Financial instrument regime.  Although exoquant is a bit technical, the basic hack is quite simple:

  • Everyone knows that money is created through the creation of debt.
  • Everyone also knows that debt is a promise to produce something more in the future.
Likewise:
  • Everyone also knows that innovations increase human productivity.
  • Everyone also knows that innovation is a promise to produce something more in the future.

Here’s the hack:

Therefore, a currency backed by debt and a currency backed by innovation are both backed by future productivity.  As such, two currencies backed by the same underlying asset are fully convertible with each other.  Water dissolves water and innovation dissolves debt.

Here is how the Wall Street algorithm works: 

  • People produce stuff in exchange for money
  • Bankers do not care about money, they care about the rate of change of money over time.  This is called the “interest” rate.
  • Stockholders do not care about interest rate, they care about the rate of change of interest rate over time, this is called growth rate.
  • Hedge fund managers do not care about growth rate, they care about the rate of change of growth rate over time, this is the margin on their bets; options, and derivatives, etc.
  • CDOs and other financial exotica become increasingly divorced from the fact that people produce stuff for money.

The Exoquant Analogy:

  • The value of information is derived from the rate of change of data over time
  • The value of knowledge is derived from the rate of change of information over time
  • The value of innovation is derived from the rate of change of knowledge over time
  • The value of wisdom is derived from the value of innovation over time.
In order to “see” innovation before it happens, all we need to do is identify and measure rates of change of information in communities…and so on. Technically, this is a derivative, i.e., something whose value is derived from the value of something else.   All of these metrics can be seen quite readily in the Zertify, Gamidox data sets.  Each is a “derivative” backed by the stuff that people produce rather than the fiction of debt.  The ability to predict future productivity is superior with an innovation backed currency and therefore superior to debt forced productivity – often compared to slavery.

The Silver Bullet

Innovation is a magic word.  The hack is true to the Wall Street math as well as American culture.  Anyone running for public office would not attack the proposition of an innovation backed currency.  Therefore, the hack will not trigger an antigen.
 The next and final post, The Currency Hack, will formulate this innovation currency in more detail.


Self-imposed exile, or land of opportunity?

Gross Domestic Product (GDP) refers to the market value of all officially recognized final goods and services produced within a country in a given period.  Simon Kuznets first developed the concept of the GDP for a US Congress report in 1934.  He immediately said not to use it as a measure for welfare. He later elaborated:

“Distinctions must be kept in mind between quantity and quality of growth, between costs and returns, and between the short and long run. Goals for more growth should specify more growth of what and for what.”

Sheer Madness at best

Today, the concept of Gross Domestic Product is vastly flawed to the point where the tail now wags the dog.  GDP now determines what we produce, who produces it, where it is produced, when and how it is produced.  Further, GDP snuffs out vast amounts of intangible value simply because it cannot be measured as GDP.

Global Policy is not enough

Recently, The G-20 meetings resolved to a very interesting point; to redefine GDP by a new set of metrics.  This will be a long hard journey if done solely in the political domain.   However, if we can make a business case for it, the entrepreneurs will jump on board.  Then, and only then, can the landscape change as rapidly and drastically as will be required to turn civilization around equitably and peacefully.

Corporate Policy is not enough

The irony is that those who perpetrate GDP metrics may be those who would benefit the most from dumping it.  In the following article from FastCompany, How Intangible Corporate Culture Creates Tangible Profits, companies who learn to transform intangible assets to tangible value become more competitive over companies that do not.  The article cites Southwest Airlines as the first airline to strip down all “tangible” amenities, yet they succeed by replacing them with intangible value such as superior customer experience.

Policy, Corporations, Culture and Entrepreneurs need to act as one:

Interestingly, the FastCompany article talks a great deal about culture.  They also use the terms; “information, knowledge, innovation, and wisdom” liberally throughout the text.  This is very inspiring to us at The Ingenesist Project because we use similar language to design and deploy business methods in industries as diverse as Aviation, Construction, and Philanthropy that readily convert between tangible and intangible value.

For Example:

  • The objective of Zertify is to replace the competitive incentives among communities and replace them with a knowledge inventory that matches mentors to protégé.  Teachers and students do not compete, they collaborate in order to be successful.
  • The Value Game creates an environment where one acting in the best interest of their collaborator, acts in their own best interest of value creation.
  • Our Exoquant algorithm provides a direct relatedness between information, knowledge, innovation, and wisdom.

The New Value Movement

When we talk about the New Value Movement, we are trying to specify a new class of business methods that can literally “manufacture” the things that people actually need without any distinction between tangible and intangible.  People need a game that they can win playing by the same set of rules. People need food as much as the need love – there is no walled garden of human needs, except the planet we share.

Then we can measure what people actually produce with it


The New Value Tool is a repetitive simulation of The Value Game (described herehere, and here) that may be used to determine in advance the true value that may be created when people interact with each other around a shared asset.

The Social Charter

This should not be too difficult to envision since The Value Game plays out daily in the modern corporation where workers acting in the best interest of the corporation (the shared asset) interact with each other in various departments to preserve the asset rather than consume the asset – this is how corporations create social value; through the employment of people and the social utility of their products.

Obviously, corporations that fail to fulfill their social charter likewise fail to sustain value creation in a community.  Those that do, tend to thrive in the Internet Age. The objective of the New Value Platform is to enable communities to organize, as do corporations, except without the burden of corporate governance or the priorities of outside investors.

Drag, Drop, and Dream

The New Value Tool is simple to use; just drag and drop from the Zertify Personal Knowledge Inventory into The Value Game and see what the Exoquant dashboard tells you about your simulation. It may take some practice at first to see how to make the numbers move, but soon it will become intuitive which scenarios create lots of New Value – and will likely sustain themselves in practice.  Scenarios that do not, will likely fail in a particular community and ought not be ventured to practice.

Community Algorithm

Exoquant provides a very simple algorithm relating the creation of data, information, knowledge, innovation and wisdom that govern the Value Game.  However, the weighting of these elements is a component of the “fuzzy math” that entrepreneurs bring to the game.  The empirical data resulting from the application becomes property of the players (community) as their “Secret Sauce” of value creation in their own uniquely optimum economic game.

On the path to a Social Currency

The New Value Tool May become an important system for analyzing existing ventures for optimum social value creation as well as predicting how collections of knowledge assets in a community can optimize their social value in collaboration with each other.  Eventually, the predictability of the outcomes will improve while diversification of projects will eliminate risks such that a social currency can be capitalized and securitized.


The question that persist for many college and university administrators is what actions must they take to optimize all of their relationships in a manner that reinforces their own value to their community.

The Value Game is an ideal solution for this type of scenario (if you are unfamiliar with TVG, please visit this primer link).  The first step is to identify the asset. The recent graduate is the university asset because they are the customer and the product being advanced.  After all, the life worth of that graduate will reflect upon the institution that prepared them for professional service.

Next, we identify the players that will interact with that graduate over the course of their lives.

A* = The Graduate

  1. The graduate will interact with their Alma Mater
  2. The graduate will interact with their alumni association
  3. The graduate will interact with Their broader community
  4. The graduate will interact with corporations and entrepreneurs

Now, Let’s review each of the relationships and the economic incentives that drive them:

A-1: The graduate relies on the university reputation with players 1,2,3 as an extension of their own capabilities.

A-2: The graduate relies on the influence and success of prior graduates who hold an affinity towards each other in fraternal social networks.

A-3: The graduate will interact with their community for friendships, residency, recreation, and support.

A-4: The graduate will rely on strong and equitable employers / entrepreneur base where they may self-actualize as productive citizens.

Now, let’s review the relationships and incentives that each of the players has with each other:

1 – 2,3,4: The university has an interest in preserving the community because a motivated and educated workforce attracts opportunity far and wide in the form of business, travel, tourism and economic growth (Jacobs Externality).

2 – 1,3,4: Alumni seek to preserve the value of their alma mater because of the direct reflection upon their careers.  It is in their best interest to support the university, it’s graduates, employers and the wider community.

3 – 1,2,4: The community relies on the university graduates and alumni to provide equitable and fair innovations that provide sustainable living standards.

4 – 1,2,3: Employers compete globally for talented, stable and engaged employees and service providers who are attracted foremost by a vibrant entrepreneurial economy and sustainable communities.

Data, information, knowledge, innovation, and wisdom

The Value Game is now played by university administrators who direct university facilities, influence, and resources to bringing at least 2 of these four groups together.  Each time there is an interaction, the university will capture the data associated with the interaction.  That data can be compiled to form information which gives the university administrator knowledge about what their next action must be.  University feedback to the community will tell all of the players what interactions create the most social value upon which all players will innovate in their best interest.

As the game continues over time, the university gains the wisdom to understand the values of their assets and surrounding community. The community will act in the best interest of the other players as a means of acting in their own best interest (Social Capitalism).

Data is the ultimate shared asset

Over time, the University will become the physical “Search Engine” for data, information, knowledge, innovation, and wisdom in a community instead of just a vetting mechanism for book learned material. The University can now deploy this wisdom to their own internal programs and curricula as well as becoming an external reference source for government, industry, and economic development.

*(The University of New Haven is in no way affiliated with this post except I (the author) am a graduate of the UNH Engineering school (go Chargers!) and needed a realistic example that probably would not sue me – thanks guys)


Yesterday’s post “This is what I believe” I make the following 4 statements:

  • Information is proportional to the rate of change of data with respect to time
  • Knowledge is proportional to the rate of change of information with respect to time
  • Innovation is proportional to the rate of change of  knowledge with respect to time
  • Wisdom is proportional to the rate of change of innovation with respect to time

In clinical terms, this is called a “Differential Equation”

I always get a lot of questions about these.  Most people’s eyes glaze over as their expression goes blank with far off images of high school Calculus class.  Few people realize that these relationships are so common and so intuitive that we are all  performing “Calculus” in many of their thoughts, words, actions, opinions, observations, and conclusions about the world around us.

But, just in case there is any doubt about the pervasiveness of differential equations in our culture and thinking, listen to the experts:

***

Move fast and break things” – Mark Zuckerberg

The idea here is that it’s OK to fail because this is how learning happens (rate of change of knowledge) but make sure you do it fast (with respect to time) because the objective is to innovate, not to not make mistakes.

honor your creativity and you don’t ever ignore it or go against what that creative image is telling you. – Lady Gaga

Here she is referring to the proportionality component of creativity. The magnitude of the inspiration (rate of change of one’s knowledge of a matter) is greater than all other thinking moments, but it is constrained in time (with respect to time).

“The Googly thing is to launch [products] early on Google Labs and then iterate, – Merissa Mayer, Google VP

Marissa is talking about Wisdom.  While innovation is proportional to the rate of change of knowledge, wisdom is proportional to the rate of change of innovation.  The speed at which Google can innovate is how Google creates wisdom of what to do next.

***

Here are a few more. See if you can spot the differential equation:

“What Mark worries about the most is the lack of change, the lack of innovation” – Sheryl Sandberg, COO Facebook

“Every new thing creates two new questions and two new opportunities.”– Jeff Bezos, Founder of Amazon.com

“It’s always about timing. If it’s too soon, no one understands. If it’s too late, everyone’s forgotten.’” – Anna Wintour, Editor in Chief, Vogue Magazine

All technology starts as a spark in someone’s brain”. – Nathan Myhrvold, Intellectual Ventures (hint: sparks travel at the speed of light)

“As people innovate and learn faster, they help generate new ways of performance improvements for everyone while progressing toward their own higher goals” – John Hagel, The Big Shift

Differential Equations are used to describe a vast array of phenomena in our physical universe.

These include the the forces of particles in motion, diffusion of medicine through cell walls, the decay of radioactive substances, and effects of gravity on bodies, weather, energy, chemical reactions, even the creation of money itself.  It should not be a shock then that bankers, CEOs, politicians, and all “investors” are not actually concerned with money, they are concerned with the rate of change of money with respect to time.

The question now becomes, why would their NOT be an algorithm for human values of knowledge, innovation, and wisdom when there is an algorithm for everything else with respect to time.  

Additional information can be fount here: Exoquant; an algorithm for Social Capitalism 


  1. There is a tiny flaw in Market Capitalism that can be easily corrected
  2. Technological change must always precede economic growth; we are going about the process of globalization as if economic growth can precede technological change.  We got it upside down, that’s all.
  3. Anything that can be made by allocating scarce land, labor, and financial capital can also be made by allocating abundant social, creative, and intellectual capital.
  4. For every dollar of tangible value, there is at least 100 dollars worth of  ‘intangible’ value that is really just ‘invisible’.
  5. The global debt is trivial in comparison to the invisible value that exists with no accounting system to represent it.
  6. There should be no economic incentive for anyone to make anything other than what they are most talented, interested, and passionate about.
  7. Nobody knows everything.
  8. Everybody knows something they can teach any other person.
  9. Students, by definition, hold an equity position in their teachers.
  10. Therefore, teachers should hold an equity position in their students – this will fix a lot of things.
  11. Nothing economic happens until two or more people get together and build something.
  12. Competition is over rated.
  13. Collaboration is under rated.
  14. All monetary things are valuable but not all valuable things are monetary.
  15. There is a perfectly legitimate market for everyone.
  16. A new currency will be the last thing that happens, not the first.
  17. You can’t eat Gold
  18. Information is proportional to the rate of change of data with respect to time.
  19. Knowledge is proportional to the rate of change of information with respect to time.
  20. Innovation is proportional to the rate of change of knowledge with respect to time.
  21. Wisdom is proportional to the rate of change of innovation with respect to time.
  22. If you want to create wisdom, go increase the rate of change of innovation.  If you want to create innovation, go increase the rate of change of knowledge, etc. Now, flip over the series 15-18 above.  See, you’ll do just fine.
  23. Money represents past, present, or future productivity – otherwise nobody would work for it (think about that ).
  24. Therefore, a currency backed by debt and a currency backed by innovation would become the mother of all hedge funds.
  25. Securitization is a miracle of scale if done correctly, a disaster of scale if not
  26. Time is the only valid basis of a currency.
  27. My singular objective and greatest aspiration is to make “intangible” value tangible.  I am confident that my children – and yours – will know what to do next.

I recently responded to the following Question on a Facebook group:

How could a newly established university be designed today in order to be elite? Which features must be included, and which features can be left out?

Subquestion: “What would you include in all dimensions: desired faculty, desired student body, location, graduation, research and tenure requirements, institutional structure and purpose, among other things, and what features would you exclude that are currently prevalent at “elite” institutions such as the Ivy Leagues?”

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My answer as follows:

Why not go farther, much farther. Teachers would not get paid. Instead, they would hold an equity position the future of their students. Sort of like an inverse pyramid scheme built on knowledge assets – teachers would collect a small % amount from many students and a smaller % amount from their many future students students, and so on (multiplying value instead of dividing value). This would attract a certain type of teacher as well as a certain type of student. It would also favor research and innovation since the promise of stagnant salaries are not attractive in this arrangement.

Why two or three subject minors? How about a 3 platform minors; one in social philosophies, a minor in creative arts, and a minor in sciences. Instead of a “degree” your education would be expressed as a string of code representing each unit of study to form your unique API. Your API would interface with the APIs of your colleagues and teachers such that an algorithm could predict the likelihood that a strategic combination of knowledge assets could execute a particular business plan. Such probabilities would be able to predict and associate future cash flows with such business plans. These cash flows could then be securitized into a financial instrument called an “innovation bond”.

Rich people, corporations, and governments would buy these bonds and the revenues would fund the school. Access to the bonds also provides access to the underlying assets – the world’s knowledge. They would be hugely valuable as a hedge agains a declining fiat currency because, like money, knowledge assets can be deployed to create the things people need. Soon, everyone would become a teacher and everyone will become a student in a new form of capitalism will emerge where factors of production are allocated as social, creative and intellectual capital.

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There were several interesting responses to this question as well as comments to my response.  Admittedly, I was riffing a bit with my response , but I’ll defend it as follows:  

First, let us not mistake “money” for “value” as a so-called “equity position” can be denominated in either. Second, there are many examples in society that demonstrate my conclusion.  Parents take an equity position in the future of their children, executives across America have a cadre of protege from whom they take an equity position in their careers, and Society accepts levies, and taxes, and buy bonds that fund public education so that future productive generations can support the elderly.

The miracle of capitalization and securitization have created extraordinary levels of prosperity on Earth compared to historic social structuring.  The ability to capitalize and securitize knowledge assets (as opposed to classical land, labor, and capital) is likely the next economic paradigm…if not the only sustainable economic paradigm.  I would suggest that current university system is the aberration, not my comment above.

Goodbye Universe, Hello Multiverse