As the economic crisis unfolds before us and a paralyzed government, we must seek to understand the forces still acting upon all of us. When cause and effect have become a “complete mystery” to our most prominent thinkers and leaders, they need to look at history.
Does the Merchant Class allocate land Labor and Capital to the a great extent in an Innovation economy? The accepted statistic is that 70% of a company’s value comes from human capital and the creative solutions that they produce.
Land, labor, and capital are ineffective proxies for human creativity and intellect – end of story. The road to new monetization is not paved upon on the roadmap of the industrial revolution. Something new needs to happen:
The simple truth is that humans have not evolved to the point where they will organize themselves as knowledge assets in a financial system – they still need to use a proxy for their productivity controlled by a master, a corporation, an idealism. It’s called money, politics, and fear.
The reality is that opportunities are endless if we can simply shift away from history and build a new future; a new economic paradigm.
Sure Bro…Facebook, Twitter, and Linkedin are great for broadcasting across the Ocean, but how good are they for meeting your neighbors? As wonderful as all this global chatter appears, nothing tangible happens until the rubber meets the road.
Don’t Worry, Be Neighborly…
The following video describes how the components of the next economic paradigm must act locally, but share globally. For anyone wondering what to do next or where the great opportunities are, think about building out the Last mile of Social Media.
We must all be engaged in the process of Innovation. We must all be engaged in the process of increasing each other’s productivity – in whatever form that may be, that’s the objective. Anything that wastes time needs to go away. It’s that simple.
The following video discusses what the dynamic of an innovation economy will look like. Not glass walled towers and obscure think tanks, but real productivity – yours and mine. That’s the basis of the new global currency. It’s that simple.
Wow, stunning.
You know that the time is right for a disruptive technology when nobody can agree what’s floating the World Currency. Will there be deflation, Inflation, or a new currency altogether?
We believe that a new currency will emerge.
It will be called a Rallod (dollar spelled backwards), similar to a dollar, except corrected to represent real human productivity. It will be exchanged in a new social media application and supporting institutions will be crowd sourced. If you think we’re nuts, you haven’t been reading this blog long enough. If we don’t succeed, there will be someone behind us trying.
Never, ever, ever underestimate the cloud; the source of all rain upon which rising tides float all ships, yadda, yadda, etc…..
Conversational Currency
Imagine people owning their knowledge assets like real property? Imagine that people trade knowledge assets like financial instruments? Imagine if they can bundle and securitize knowledge assets like the WS glory days did with debt (debt is really just a future contract on knowledge assets)? Far off? Think again….
In the mean time; here are some interesting articles aggregated by McKinsey:
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As the US economy emerges from the crisis, there’s little consensus on what lies ahead. Economic forecaster David Levy says chronic high unemployment will lead to, at worst, slight deflation. While former Fortune writer and financial adviser Al Ehrbar says, not so fast: with the Federal Reserve having flooded the market with dollars, massive inflation is likely.
Read Here
Plus: What Matters continues the conversation on the fate of the dollar:
GENG XIAO: Why the Chinese will not bail out the dollar by allowing the renminbi to appreciate
Read here
BENN STEIL: There are steep downsides to both a strong dollar and weak dollar policy
Read here
GERARD LYONS: Whether or not the dollar will topple isn’t in doubt, only its speed of decline is
Read Here:
MARTIN GILMAN: Now that the United States is a debtor nation, its currency can no longer dominate
Read Here:
CHARLES WYPLOSZ: The dollar is the worst international currency, except for all the others
Read Here:
TIM ADAMS: The dollar’s share may shrink, but it will continue to dominate
Read Here
MICHAEL MANDEL: Beware of a dollar crash if the United States loses its innovation edge
Read Here
JEFFREY GARTEN: The question isn’t if the dollar will be replaced–it’s when and how
Read Here
Join the conversation at WHAT MATTERS
Here
The questions are:
1. What is money? 2. Why is it important? 3. Why is it all so confusing?
The answers are:
1. You are money. 2. You are important. 3. You’re not supposed to know this.
This video provide an easy way to find the truth among the high-fiber ambiguity that has become our political morass. Oh Yeah, they want you to be confused because they don’t want you to act any differently.
Many Social Media Gurus are espousing a new culture that their clients should forget about blogging (adding meaningful content) in favor of the ubiquitous widespread “updates”.
Using automated apps, you no longer need to waste time creating content that teaches or expresses, you can populate across social media space carefully wedged in between someone else’s creative content. I find this appalling.
This is starting to sound more like the neighborhood drug dealer than any sustainable economic paradigm.
Slavery is a term characterized in part by the coercion of another person to perform or act without compensation. The effects of slavery are not only physical, but mental as well. The effects of oppression manifest themselves in addictive behaviors.
Social acceptance is an extremely powerful psychotic that can be cleverly turned against any person. The techniques of social media are getting increasingly sophisticated in hijacking and consuming the social capital of others.
It does not take long to see that the marketing professions are defining the social media space regardless of what anyone says about user-generated content. The danger is that social media will become just as unsustainable as the economy that it replaces. People will soon lose the ability to produce the currency that the media demands to support itself.
t would be high temple sacrilege for any social media monetization strategist to suggest that advertising of any kind must be banned. Well, not exactly, but the objective of advertising can be redefined if there were a means to do so.
The only sustainable monetization strategy (of which there are terribly few current examples) are the deployment of social media applications that empower people to discover their own individual talents, to pursue what they are naturally best at and enjoy doing most – while also eliminating the clutter and irrelevant messages that distracts them from their personal life goals.
This means that brands should communicate more and not less. They should identify, educate, and promote the talents and abilities of a million customers instead of 1 superstar athlete or celebrity.
Advertisers should sit in the bleachers and cheer on their favorite customer, but they should not be in the game, blowing the whistle, or running the scoreboard. Let them pay admission, see my logo, and buy my overpriced beer. Let them sell to each other on their own dime – but under no circumstances should they be allowed on the field, in the schools, or in the home without explicit and expressed permission of the customer.
As we build the Next Economic Paradigm we seek to define the quality of conversations.
The Common European Framework of Reference for Languages: Learning, Teaching, Assessment, (CEFR), is a guideline used to describe achievements of learners of foreign languages across Europe.
Here is the twist.
We propose the use of a language proficiency standard as the conversational quality standard for any subject. Why?, Because every subject has it’s own language and related subjects have related languages. Try to bridge the philosophical chasm for yourself by reading the descriptions and drawing the analogy to the subject of your expertise, lack of expertise, or your interests and intension!
As such, for conversations about any subject matter in the world, past present or future, the following also holds true for subject matter proficiency:
Basic Proficiency
A1: Can understand and use familiar everyday expressions and very basic phrases aimed at the satisfaction of needs of a concrete type. Can introduce him/herself and others and can ask and answer questions about personal details such as where he/she lives, people he/she knows and things he/she has. Can interact in a simple way provided the other person talks slowly and clearly and is prepared to help.
A2: Can understand sentences and frequently used expressions related to areas of most immediate relevance. Can communicate in simple and routine tasks requiring a simple and direct exchange of information on familiar and routine matters. Can describe in simple terms aspects of his/her background, immediate environment and matters in areas of immediate need.
Intermediate Proficiency
B1: Can understand the main points of clear standard input on familiar matters regularly encountered in work, school, leisure, etc. Can deal with most situations likely to arise whilst travelling in an area where the language is spoken. Can produce simple connected text on topics which are familiar or of personal interest. Can describe experiences and events, dreams, hopes & ambitions and briefly give reasons and explanations for opinions and plans.
B2: Can understand the main ideas of complex text on both concrete and abstract topics, including technical discussions in his/her field of specialisation. Can interact with a degree of fluency and spontaneity that makes regular interaction with native speakers quite possible without strain for either party. Can produce clear, detailed text on a wide range of subjects and explain a viewpoint on a topical issue giving the advantages and disadvantages of various options.
Advanced Proficiency
C1: Can understand a wide range of demanding, longer texts, and recognise implicit meaning. Can express him/herself fluently and spontaneously without much obvious searching for expressions. Can use language flexibly and effectively for social, academic and professional purposes. Can produce clear, well-structured, detailed text on complex subjects, showing controlled use of organisational patterns, connectors and cohesive devices.
C2: Can understand with ease virtually everything heard or read. Can summarise information from different spoken and written sources, reconstructing arguments and accounts in a coherent presentation. Can express him/herself spontaneously, very fluently and precisely, differentiating finer shades of meaning even in more complex situations.
OK, the social media buzz is getting a little stale folks.
Show me how everyone is related and I’ll show you a new economic paradigm. Here is how they are not related:
The next economic paradigm is related to transformation.
Under a set of fundamental assumptions that:
This is how value is generated. This is where the mystery of monetization hides.
I recently caught up with a childhood classmate on Facebook. I remembered hearing that she had lost her older brother, Robert, in a recreational accident several years ago. Nobody ever knows what to say to a friend in a situation like that. But her brother was different.
When I was a freshman in high school many years ago, a couple of goons were getting ready to kick my ass for no particular reason except that I was a freshman. Then Robert walked around the corner. He stood next to me, applied a menacing grin, and stared my oppressors down. After a few moments, he walked away without saying a word.
Robert never said very much, he didn’t have to. He had so many friends that nobody dared to mess with him. I very much appreciated his intervention because nobody ever bothered me again.
Over the next several months, I saw Robert do this few more times. That’s when I realized why he had so many friends. It was one of those “life lessons”.
I’ll leave the story here, where Robert left it for us. Draw your own conclusions about social media organization.…
Picture credit: Names and Faces are not of the actual people portrayed in article
Given the events of the last several weeks, it’s time to for the aviation industry to get serious with Social Media. This article demonstrates how an alternate currency can be used to severely reduce or eliminate terrorist risk in commercial aviation. Think I’m kidding, read on.
Obviously an airline will not let you board an airplane if you don’t have the financial currency sufficient to buy ticket. Why should an airline let you board an airplane if you do not have social currency sufficient to fulfill your social obligations while in the air?
People with extreme social currency deficiencies are routinely stripped of their rights by a jury of peers and isolated from society for a period of time (where they would not board an airplane anyway). While there are many systems in place to manage the various degrees of social currency deficiency, none appear to be able to identify a terrorist without also violating the rights of non-terrorists.
Human Writes
However, many people are willing to share information about themselves to associates with whom an economic benefit is shared or exchanged. This happens a billion times per week on Linkedin, Facebook, and Twitter – why not among fellow passengers? After all everyone is already connected by 6 degrees.
What would a terrorist’s Facebook profile say about them? Do they have a lot of referrals on linkedin? Do they post great work on Flikr? Is their community orchestra featured on My Space? Are their posts popular on twitter?
Should a social currency credit score become imperative to social transactions as the financial credit score is for financial transactions?
Banks and Insurance companies already rely on a highly invasive “Credit Score” to establish financial risk profile as a means of protecting their selves and their other clients. Why wouldn’t an airline use a social credit score to establish a social risk profile as a means of protecting their selves and the lives of their other clients?
Ruse and lose
Sure, the bad guys can adapt to social media as they have adapted to all other measures. The problem is that the greater the size and scope of their social media ruse, the more difficult it is to maintain the ruse. A threshold score could be set to nearly eliminate this possibility. Those folks can then simply opt into the full body scan.
The Paradigm Shift
As the saying goes, the attacker needs to be successful only once, while the defender needs to be successful every time. The concept of a Social media credit score flips this paradigm on it’s head. The attacker’s social credit score needs to be successful every time. The defender needs to be successful only once.
In the broadest definition, Foreign Direct Investment (FDI) is an investment outside the economy of the investor. It usually refers to a measure of foreign ownership of productive assets, such as factories, mines and land. Increasing foreign investment can be used as one measure of growing economic globalization.
The Disruption
Social Media has the effect of defining an economy not by an international border, but rather, by associations between people and their conversations. Investment is in the form of time and the exchange of ideas, experience, and knowledge. Ownership is expressed in the form of reputation, search placement, social ranking, hits, etc.
Social FDI
Therefore, FDI in social media refers to an investment applied outside the economy of the investor where:
Likewise, increasing Social FDI can be used as one measure of growing economic socialization. For business, this means that Social FDI would then include investments in people who are not your customers.
For Example:
I recently wrote a post for Plane Conversations – a blog serving the private aviation industry. Thousands of private airplanes that once served the corporate market are grounded because of the financial crisis. The jist of the article was that the private aviation industry could help communities to stave off commercial aircraft expansion by empowering local entrepreneurs to compete with commercial aircraft industry by selling “lift products” provided by the private aviation industry, hence, Citizen Airlines, LLC.
The paradigm shift …
…is that a company that sells corporate jet services would engage, cooperate, and empower people who are not their customers in order to compete more effectively. Who saw that one coming? Can it happen everywhere? Can it happen in every single industry imaginable? What if everyone did it in their personal lives? Can it create entirely new industries altogether?
This is not trivial.
FDI in all forms induces a sharing of risk between the host economy and the investing economy. This provides a stronger stimulus to economic growth in host economies than other types of capital inflows. FDI is more than just capital; it is access to diverse technologies and management knowhow.
Welcome to conversational currency.
Many people who read the title of this post would conclude that the article is about the 100 million dollar Russian investment in Facebook, or how countries outside the US are using Linkedin and Twitter. Perhaps some repackaged assessment of well worn forecasts. Guess what, that is exactly what the article is about.
Innovation Economics 101
Innovation is largely the practice of connecting two useful ideas resulting in a third. Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy. Innovation is the most important thing for the human survival.
One must seriously ask, how exactly do political memoirs increase human productivity?
2009 marked the resurrection of the infamous “Book Deal” with lovely Ms. Palin and entourage leading the charge. However, books are not the actual product; it is the kindling (amazon pun intended) that they provide for endless fodder for the mainstream and new media. It’s the money shot.
Entering a mid-term election year with the future of our country in the balance, the onslaught of meaningless dribble will be epic. The national pundits will go wild fueling local media coverage as the authors engage in their cross-country tours of duty performing the perfunctory act of accomplishment.
There will be a wide audience of Americans asking themselves the same question:
Should the past be used to predict the future?
Karl Rove
Former deputy White House chief of staff’s book Courage and Consequence will be published on 9 March by Simon and Schuster’s Threshold Editions, a conservative imprint. Deal reported by US media at $2m.
Donald Rumsfeld
To be published in the autumn by Sentinel, an imprint of Penguin. No advance for the former defense secretary, share of proceeds to go to charity.
George W Bush
Autobiography, tentatively titled Decision Points, is to be published by Crown. Deal estimated at $7m.
Laura Bush
Her memoir is due in the spring from Scribner. Laura’s deal may be worth more than her husband’s. US media put it at $8m.
Dick Cheney
Scheduled for spring 2011, the former vice-president shares publisher with Rove. His deal is estimated at $2m.
What if this conversation has no currency?
What if we are reaching a tipping point? What if nobody cares anymore? What if none of this makes any sense to anyone? What if we can more accurately use the future to predict what really happened in the past?
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