securitization

What’s Your Cut of the $5 Trillion Knowledge Economy?

by Dan Robles on September 3, 2010

People accumulate a wealth of knowledge in their lives as they pass from project to project and industry to industry.  Each of our social, creative, and intellectual pursuits and exposures combines to form the person who we are and the contribution to society that we represent.

Your knowledge and experience also helps others predict what preferences you may have and what decisions you may make. Corporations, advertisers, banks, insurance companies, and politicians all want to know this and they will go to extreme and expensive measures to get it – why not just sell it to them?

Peace sells, but who’s buying?

Management of companies, little league teams, Rotary Clubs, even raising a family, is extremely valuable knowledge to a wide variety of situations. Civic service, spirituality, military service, and philanthropy provide a basis for a host of knowledge attributes.  Academic accomplishment, physical achievement, artistic expression, manual dexterity, and whole body coordination provides great insight to the application of all knowledge.  Physical challenges, grief, personal struggles, and the experience of injustice further add to the wealth of knowledge one accumulates in a lifetime.

Every person is unique with a different set of knowledge than any other; therefore, everyone has something to offer to someone else.   Each person’s combination of formal and informal education is valuable in it’s uniqueness.  With the proper system and incentives in place, trillions of dollars are on the table to bid for access to your knowledge.

The Den of Thieves:

The resumes that we post on Monster.com are woefully inadequate and so heavily gamed that predictive utility related to your future decisions and innovative capacity is severely compromised.

The credit score also measures past behavior by tracking negative events; many of which are outside the control of the subject such as a layoff, fraud, medical emergencies, etc.  Again, the credit score is quite useless as a predictor of future decisions and innovative capacity.

Now we have Social Media and the mad scramble to be visible in social media space.  The scourge of marketers, spammers, and fraudsters are close behind chasing your information that they are all too happy to sell to the aforementioned “clients”.

Take a Step Back … and get a grip

We are talking about your information that describes your knowledge attributes which predicts your preferences, your future decisions, and your innovation.  Yet complete industries exist to collect it from you for free, organize it, and sell it to others for a great deal of money.  There are 5000 job boards collecting resumes, 300 Million credit scores being securitized by Wall Street, and 12,000 social media sites aggregating your creative content, relationships, and knowledge attributes.

Join The Ingenesist Project:

The Ingenesist Project specifies a system where your knowledge attributes are expressed in a packet of code that you control, distribute, regulate, withhold and track as you wish.

The result is that you will be paid to learn, to know, to practice, and to participate in life as you wish.  It becomes in your best economic interest to produce exactly what you are best at, and have a talent for producing.  It will be in the best interest of corporations, marketers, Wall Street, insurance companies, and Politicians to support you in these pursuits so they can “farm” the knowledge today that will buy their products tomorrow.

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Securitization of Social Currency

by Dan Robles on August 17, 2010

Throughout the articles and videos on this blog, I try to make a direct and rigorous analogy between Market Capitalism and Social Capitalism because there are two characteristics that no Social Currency can approach, yet which define the very nature of Capitalism: capitalization and securitization.

Capitalization

refers to the ability to consider the present value of predicted future earnings as if it were, in fact, tangible. This is the factual basis of the U.S. Dollar. In finance, this is called debt. If done correctly, debt is an extremely effective tool for economic development responsible for huge productivity gains in the last century.

Securitization

refers to a structured financial process that collects all those debt payments into a big pool of money and then chops that pool of money into smaller pieces called securities, which are then sold to investors. Risk is said to be diversified away because it is unlikely that all debtors would default at the same time – so if a few of them fail, the investment in the securities remains relatively safe.

This is very important because in the video series on Social Capitalism, we have described a structure that allows us to capitalize and securitize knowledge assets in a social currency representing real productivity.

For example. The knowledge inventory tells us the probability that a collection of knowledge assets can execute a business plan. Applying WIKiD tools, the rate of change of knowledge is a proxy for innovation. If we can predict the fact and value of innovation with The Value Game, we can estimate the risk adjusted value of the corresponding future productivity gains.

Now, the cash flows of many communities of knowledge assets can be aggregated into a diversified pool of value and chopped up into securities. Since the securities represent future productivity, they are readily convertible to Dollars, Yen, or Euros and sold to investors.

This new security, called the innovation bond, will become the basis for a new social currency.

Please Vote for The Ingenesist Project to present at SXSW 2011

The Ingenesist Project specifies an Innovation Economy built on a platform of social media as the next economic paradigm.  60 minute solo presentation in the advanced technical track.  Your help is deeply appreciated. All comments welcome.  Material based on video series here

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System for The Monetization of Social Capitalism

August 11, 2010

Exoquant.com Currency is a device used for the storage and exchange of Value.  Two characteristics of modern money are the abilities to Capitalize and Securitize the currency.  In fact, Wall Street touts a specialized professional precisely for that purpose – they are called “Quants” This video introduces a very similar form of mathematics that Wall [...]

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The Vicarious Search Engine

July 7, 2009

This is how the innovation economy must play out. People must control, regulate, anonymize, and manage their own knowledge inventory. If only they could see their world through the entrepreneur’s eyes – perhaps they need a vicarious search engine more than anyone.

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