The Next Economic Paradigm

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Video; You Can’t Make a Bet Without Odds

Entrepreneurs won’t make a bet without odds. So when it comes down to assembling knowledge assets into an innovation enterprise, how can entrepreneurs predict the likelihood that they will be successful? The short answer is that they cannot.

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.

This is the greatest constraint on economic growth that America faces, not inflation, debt, taxes, or regulation….entrepreneurs have simply run out of info juice. This is the greatest challenge of our times. What are the odds that we’ll figure it out?

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Video: Taxonomy for Community Knowledge Inventory

Any taxonomy that is used to classify information is a candidate for the classification of knowledge. This is because knowledge is related to information in a differential equation that also includes data and innovation (another blog post).

The trick is that everyone needs to be using the same taxonomy so that we can all access knowledge inventories of the people around us as easily as it is to access books on Amazon.com. This will lead to a trade in knowledge assets formally the sole domain of corporations through the process of industrialization (yet another blog post) .

Please enjoy these videos, use them as you wish and let us know what you think.

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Where is The Knowledge Inventory?

There is no knowledge inventory of our communities. The is a STUNNING omission for a country whose only hope at climbing out of economic hardship is sequestered within the innovative minds of its people.

If done correctly, knowledge can behave as an asset of trade. This must first start with a comprehensive knowledge inventory. Like the human genome project, the knowledge inventory project must be a sustained effort.

Link to specification document

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The Old Economic Paradigm Breaks Down

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.

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Video: Tangible Knowledge; The Holy Grail of Social Media

Accounting Balance sheets have tangible assets and intangible assets. Unfortunately, intangible often means invisible and those on the dark side of the moon wind up in the unemployment line.

What if knowledge assets were tangible? What if you owned your knowledge like a company owns a structure or specialized machinery? What if it could be quantified and qualified so that it resembles all other tangible assets? Easy answer…entrepreneurs will trade it, like money.

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Video: The Last Mile of Social Media

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.

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Video: Currency Must be Backed by Productivity

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.

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Rising Tide Floats All Boats

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

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Video: Money vs. Productivity

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.

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What is the Quality of Conversation?

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.

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The Monetization Mystery

OK, the social media buzz is getting a little stale folks.

  • Yes we know that social media is valuable.
  • Yes we know that lots of folks are doing it.
  • Yes we know that the predictive web is predicted.
  • Yes we all know that all this activity will mysteriously “monetize”

Show me how everyone is related and I’ll show you a new economic paradigm. Here is how they are not related:

  • They are not related by “earning” people’s trust today so you can shove your product down their throat tomorrow.
  • They are not related to collecting thumbnails.
  • They are not related to giving the g00gle alg00rithm an 00rgasm.
  • They are not related by “The 6 Steps to [Fill in The Gap]”.

The next economic paradigm is related to transformation.

  • People transform data into information
  • People transform information into knowledge
  • People transform knowledge into innovation
  • People transform innovation into data

Under a set of fundamental assumptions that:

  • All people are socially talented
  • All people are intellectually talented
  • All people are creatively talented
  • All people are good at something
  • Nobody is good at everything

This is how value is generated. This is where the mystery of monetization hides.

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Social Media and Foreign Direct Investment

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:

  1. The outcome is derived simply from who is talking to whom.
  2. Combining different people in conversation results in alternate outcomes.

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.

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Political Memoirs; The Money Shot?

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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Thank You for Flying Citizen Airlines, LLC

I will be introducing a number of applications of Innovation Economics in Social Media as continue writing part 2 of my book. The objective is to identify new business opportunities by disrupting the old economic paradigm with new ways to organize people around social media. In this case, a troubled industry would team up with communities that are not their direct customers:

I live in Edmonds Washington near Paine Field – home of the sprawling Boeing manufacturing site of the 747, 777, and 787 aircraft. For years, the county executives have been trying to lure major airline service into Paine Field Airport claiming the economic benefits would far outweigh the drawbacks. Paine Field is about 1 hour north of Seattle Tacoma Airport and about 3 hours South of Vancouver, BC.

Many efforts over the years to locate another airport in this gap have hit political and environmental land mines. Paine Field expansion is no different. For years, the county, state, and FAA have been funding “improvements” that look a lot like accommodations for scheduled airline service. The county executive has been courting carriers, lobbying ‘unaffected voters’ and corralling legislators to this grand economic development cause.

The citizens of neighboring communities have not stood still. They have commissioned studies of every environment and quality of life factor from home value impact to distracted learning at the local schools. They cite urban blight, social deviance, and under development at other similar expansion projects. Political careers are made and broken over support or opposition to the airport expansion.

So far, the market has not proven large enough to support a major B737 sized scheduled service. Ironically, there have been very few studies of the impact of private aviation service expansions. Little data is discussed related to the noise foot print of small jets versus large jets. Very little data is presented to the community about distributed vs. concentrated air and car traffic flows and the upscale effects of a private aviation presence.

To the community’s advantage, small private carriers can soak up and diffuse the market that would eventually support a major carrier. These battles are raging all over the country against the political mantra of Jobs! Jobs! Jobs! Local communities are running out of money, lawyers, and stall tactics to fight them.

With the price of seat on a (full) private Jet about the same as a business class ticket on a major airline, local communities may want to go into the travel agency business. By using community media, website, a booking website, twitter alerts, and tourism agents to identify and match travelers to destinations combined with some proactive social media marketing, Citizen Airlines LLC can stave off an airport expansion by competing with it.

Meanwhile, unemployed citizens are available to manage an on-line Community Branded jet service (operated by a private carrier). Advertising and marketing can be transferred to the community in exchange for reduced rates and shared access to private aviation reports and data which would help them fight airline expansion.

This requires that the private aviation industry empower communities who are not necessarily their direct customers but are stakeholders none the less. Social Capitalism is the act of elevating oneself by elevating the entire community rather than opressing then for capitalist gains. By giving people a voice, the economy gets a bullhorn.

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Predictions for 2010 and Beyond – Nothing is Sacred

It looks like everyone is buffing up their predictions for another year of astonishing growth by social media. The last several years have brought so many surprises that the next several are promising to yield a bumper crop of “I told you so” fodder from the “pithier than thou” crowd.

My prediction for 2010 is that nothing is sacred, including the onslaught 2010 predictions. Therefore, I’ll will go way out on a limb and make my 2011 predictions in 2009.

In General:

The interest coming due on our national debt will consume increasingly more of the money that institutions need to provide basic services. As these institutions weaken, they will increasingly be replaced by social media enterprise. These structurally weakened institutions will drive social media innovation more than any other factor.

Specifically:

  1. Social vetting will catch everyone by surprise. Google buying Yelp is the game changer that will shake markets to the core. A market can only be as efficient as its vetting mechanism. To control vetting is to control a market – ask any despot. Where the vetting institutions of the old paradigm break down, they will be replaces by social media vetting. Nothing is sacred – the SEC, AMA, Federal Reserve – everything is vulnerable. Google knows this and will usher in an era of social media applications that will completely disrupt the gatekeepers.
  2. Everyone says that social media will monetize. It will, but not like anyone expects. 2011 is the year of the Deep Web; the deep web is the vast universe of unprocessed data that exists like dark matter in the Google-verse. Social media will monetize around data because data is the only thing that corporation, governments, and other people are willing to pay for. Google created economic initiatives for legions of entrepreneurs to create information content. The new Deep Web Search engines will create economic incentives for legions of entrepreneurs to create databases.
  3. The convergence of data will create the “new monetized innovation economy” defined by the way people interact with data. Highly localized data that will reflect the knowledge inventory of a community and will be represented by a virtual currency.
  4. It will become increasingly apparent that many of the functions of a corporation can be duplicated outside a corporation by new vetted social media applications. Networks of people will become “corporations” and trade knowledge assets through the trade of virtual currency contracts.
  5. Corporations will become technology centric rather than industry centric with open source architecture liberated to armies of diverse entrepreneurs. For example, breakthoughs in one industry will shoot across all industries like iphone apps – especially effective in environmental and “community organization” innovations. Nothing is sacred.

So there it is and be assured that 2012 will not disappoint even the hardiest eschatologist!

Sorry for not repeating the “real-time is king” mantra or singing the “people will finally pay for content” tune, or reciting the “every department is the marketing department” manifesto. Something much bigger is about to happen. The evolution away from the current financial system will drive social media more than any other factor.

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Is Wall Street Irrelevant to an Innovation Economy?

The most difficult challenge facing the modern creative entrepreneur is the funding of innovation. Likewise, the greatest constraint on an innovation economy is the funding of innovation. Having great new ideas is the easy part; actually building something around those ideas is hard work.

As such, the funding all of that hard work is the constraint on innovation economy. Traditionally, the “corporation” served as the legal entity within which all the hard work would be contained and the accounting system through which it would be financed. But even that arrangement does not work well enough to support a new economic paradigm for an innovation economy.

Is Wall Street Irrelevant to an Innovation Economy?

Our modern and supposedly efficient financial system in fact punishes innovation. If a company announces a new multi-year allocation of a substantial amount of money toward new innovation, stock price of the company is pushed downward since the funding would apparently be taken from today’s profits. The market would prefer to take their money elsewhere until the (now unfunded) innovation is market ready.

The prospect for the individual entrepreneur is worse. The modern and supposedly efficient banking system does not acknowledge an entrepreneur’s good idea and the work that they are willing to do to reach fruition.

So if most innovation (and the hard work of developing it) is self-funded, and all innovation (and the hard work of developing it) is the basis of all wealth creation, why do we need Wall Street? Ironically, the ‘revelation’ of the next economic paradigm is that Wall Street is ‘irrelevant’.

The opportunity for the future is to develop a financial system that does accommodate the fact of innovation and the willingness of entrepreneurs to do the hard work of developing it.

If taken in aggregate – the total wealth creation of all private innovation is obviously some positive number. If better data were accumulated regarding all the private innovation that is happening, then that positive number for overall wealth creation can be predicted within a range. The better the data are, the smaller the range for this estimate of net wealth creation.

If net wealth creation can accommodate the past and predicted into the future, then a cash flow can be assigned to all private innovation. If a cash flow can be predicted, then a bond can be issued backed by this estimated cash flow. This cash flow, while not actually realized can be expressed in terms of an IOU credit. These credits can be traded like money

Now it becomes in the best interest of a market to protect, nurture, and legitimize the innovators who are willing to do the hard work to develop the next innovation industries.

Is Wall Street Irrelevant to an Innovation Economy?

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Dark Net and the Economics of Mutual Anonymity

In 2001, Michael K Bergman, an American academic and entrepreneur and one of the foremost authorities about the Internet, published a paper estimating the “Deep Web” to be 400-550 times larger than the known Googleverse.  What does this mean for everything we claim to know about the web, social media, and social influence marketing?

Andy Becket wrote an excellent investigative piece called  The dark side of the internet that I highly recommend reading.  Among many great points, Andy describes the deep web:

“The darkweb”; “the deep web”; beneath “the surface web” – the metaphors alone make the internet feel suddenly more unfathomable and mysterious. Other terms circulate among those in the know: “darknet”, “invisible web”, “dark address space”, “murky address space”, “dirty address space”. Not all these phrases mean the same thing. While a “darknet” is an online network such as Freenet that is concealed from non-users, with all the potential for transgressive behaviour that implies, much of “the deep web”, spooky as it sounds, consists of unremarkable consumer and research data that is beyond the reach of search engines. “Dark address space” often refers to internet addresses that, for purely technical reasons, have simply stopped working.

The implications of the Dark Web are subtle.  Like “Dark Matter” in space, the dark web may behave as a multiplier to account for that which cannot be explained except by some invisible, albeit, constant force.  We can assume consistence because the common thread that transcends the entire Internet is still conversation. The ability to have a conversation as well as the ability to reject a conversation is part of the Dark Web and still a conversation nonetheless.  The opposite of publicity is anonymity – if the universe seeks balance so too can we expect the web to equalize around the average anonymity of conversation.

Entrepreneurial factors also appear rational when applied to the Dark Web, specifically true ownership.  Ownership includes the right to restrict access from others.  In the Googleverse of search rankings and old economics, watered down and largely unenforceable copyright laws create a wasteful game of Cease and Desist among content providers – not exactly a safe place to converse.  The inability to establish ownership and boundaries of user generated content is a primary constraint on monetization.

Meanwhile, the Dark Web utilizes a knowledge inventory where trusted people of known affinity are given free access to share freely – and anonymously.   Ironically, anonymity improves the quality of a conversation by eliminating the irrelevant data that often constrains conversation.   It is worthwhile to consider anonymity as a possibles monetization factor – pay to hide?

Not all anonymity is corrupt and perverse.  People spend a great deal of time and effort developing a database that represents a knowledge inventory and they don’t want someone to just copy it.   Trade secrets are the great competitive financial instrument of capitalism and depend on secrecy.  For better or for worse, political activity in non-free countries such as China, Iran, and Afghanistan also rely on anonymity. The more time people spend on the web, the more of their personal life that would want to keep to themselves – the ability to avoid Google bots is a tangible conversation.

The phenomenon to consider is that people with mutual anonymity are able to share more freely.  Ironically, anonymity improves the quality of a conversation by eliminating the irrelevant data that often constrains conversation.  Conversely, efforts to constrain anonymity destroys freedom of the web.  Tell that to your web analytics team.

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Is Freedom A New Economic Paradigm?

A New Economic System of the country of Montenegro is based on complete and unfettered economic freedom; in other words, the elimination of all barriers to conducting business.  Is Freedom A New Economic Paradigm?

Veselin Vukotić ‘s paper titled Economic Freedom and New Economic Paradigm, offers a case study that enlightens us as to some of the core changes, some easy and some difficult, that any proclaimed ‘new economic paradigm’ would place on people, culture, politics, and the markets.  From this insight, perhaps we’ll see a new paradigm emerge.

Freedom; A competitive Advantage

Montenegro has achieved a competitive advantage in their Eastern European region by reducing international trade barriers, treating foreign and domestic concerns equally, reducing “contribution” fees and other taxes, reduction of public spending, affirmation of private property, and encouraging entrepreneurship.   Veselin Vukotić  also notes that the concept of economic freedom is a complete theoretical and practical expression of an idea.  He quotes Plato:

The difference between concepts is the difference between starting ideas!

Therefore, he concludes that the idea of economic freedom is freedom of an individual to conduct business (earn money), and that business is the key factor of a society’s development and individual wealth.  While we now know that unfettered capitalism breaks down at some point, he does accomplish something important – the elimination of all government as a defining element of freedom.

The Singularity Solution

We know it is often easier to solve a problem if we can remove certain elements, even temporarily, and analyze components individually.  Suppose we eliminate Government from the equation, corporations would rule.  However, corporations are made up of individuals, so individuals would rule…they would rule whom?  The logic also breaks down.

There is one exception: what if all individuals were corporations and they ruled only themselves? Corporations are keeping government out of their affairs by keeping people off the books.  The solution is for everyone to structure their existence as a corporation contracting to each other for every conceivable business arrangement.  Heck, it only costs 40 dollars to open a business in the the U.S.

Self-regulating Freedom?

Knowledge would be shared freely, people would be paid for their productivity, diversity and strategic combination of knowledge would be rewarded.  Everyone would own their knowledge and would seek to accumulate more.   Trade barriers would be eliminated, taxes would be reduced, private property would be affirmed, and entrepreneurship would be encouraged.  Like a family, no corporation could become wealthy at the expense of another corporation for very long.

Would you be willing to pay the government to leave you alone? Is that Freedom or a new economic paradigm or both?

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The Power of Social Taxonomy

Revolutionary:

Ask the French about linguistic purity and you get the feeling that an attack on the language is an attack on the culture.  Likewise, corporations arising from the industrial revolution communicate internal structure and processes through the use of a well protected internal taxonomy.  This serves as both a means of storing knowledge across generations of workers, and as a means of encrypting the knowledge from those who would pillage the enterprise.

For example, some people who leave Boeing (a 94 year old company) have a very difficult time re-integrating into society because many of their professional skills and tools are articulated in a language that nobody outside Boeing understands.  Ex-employees of many large corporations often find themselves professionally invisible through an extended period of re-adjustment.

Melting Pot Economics

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Freedom of Speech; Use it Wisely

The recent Google quandary involving that most unfortunate rendering of Mrs. Obama led to many interesting articles about the invisible line between freedom of speech and profiting from indecency against another person (or group of persons).

Among the more intriguing conclusions is that those who exercise their freedom of speech should do so at the price of their anonymity.  As such, the community can likewise exercise their freedom of speech in response…sort of a market incentive system, it seems.

So what exactly would happen if the offensive content were accompanied by the name, address, business, and email of the person who created it?  How would their personal freedom be enhanced or restricted based on their contribution to the “self-discovery” of society?  How does a social medium enhance or restrict the inalienable rights so preserved in our nation’s constitution by our infinitely wise founding fathers?

I suppose that the founding fathers also had an issue with anonymity.  By virtue of their signature on the declaration of independence, they were willing to pay for their freedom of speech with their lives. This singular act is what empowered the document most. They bet their skin to preserve their oppressor’s freedom of speech regarding the same matter of independence.  Today we call that courage but in most communities it is common practice:

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Intellectual Property in Bloggerville

Most bloggers invite you to share their content far and wide on any one of many aggregation sites.  But some people get really upset if you post that article on your own aggregation blog (even with full credit and back links).

I am always amazed when I get that proverbial chest thumping quasi-barrister “cease and desist” letter, followed by remedial citation of copyright law, and always ending with some pathetic accusation of irreparable damages and criminal violation.   They get upset if you change the content and they get upset if you don’t.  The worst is when it comes from a self-proclaimed social media guru who touts all ‘dat social media Kool Aid in their consultancy propaganda.

Reality Check:

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Seeding the Clouds of Social Media

OK, so what part of: Governments and industries have no intention of fixing things that they broke are we still having trouble with? The climate change summit ended in a draw after Kyoto ended in party pooper. You can count the financial crisis, endless warfare, world hunger, slave labor, forest-to-dump consumerism among the same pile of sun dried bullshit. Does anyone still trust the “leaders”?

There is a way out. People need to organize themselves around their a social media financial system. This is actually a relatively easy thing to do. Social media is like a big cloud – a big gray mass with no beginning, end, center or physical boundaries. The only way to engage the cloud is to talk to it. If you talk to it the right way, it delivers rain. If not, the well stays dry.

Now here is the trick. As social media applications continue to integrate, a correlation between conversation and rain becomes “diversified”, the randomness begins to disappear. Steady, consistent, and sustainable conversations across a wide array of social action will delivers steady, consistent, and sustainable rainfall across a wide area of social landscape.

At some point, someone will notice the similarity between the social media rainfall and the behavior of large diversified cash flows. They will develop a financial instrument to “capitalize” this value because it has become predictable. Predictable value flows can then be “securitized”. Unfortunately, the dollar is a debt backed currency and a productivity backed currency will need to arise in its place.

China accuses the weakness of the US dollar for driving speculation bubbles in anything and everything of “value” that is not a dollar. The problem is that the dollar is the only game in town. If there were an alternate currency with superior representation of human productivity, all dollar denominated assets will be converted to the new currency. The entire 50 Trillion dollar debt pressure on the US dollar will convert to a productivity backed currency forced to drive innovation at a comparatively astonishing magnitude – almost on the scale of the problems that face humanity.

A productivity backed currency means that those who are most productive earn the most money. Think about that for a minute, then go read The Next Economic Paradigm.

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Executing the News

There are lots of questions about what constitutes news. Powerful editors decide what people read and what they don’t.  Journalists decide what is worthy of investigation and what is not.  Advertisers, special interests, lawyers and lobbyists defend the boundaries of inquiry against themselves or their industry.  All this plays out in a delicate dance of “crowd sourced censorship”  Whatever survives this gauntlet of execution becomes THE NEWS.

So, I took a snapshot of today’s news and ran it through the “History Test”:

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When Capitalists Are Really the Socialists

Yikes…

Unemployment tops 10%.  Add in the under-employed, part timers, young adults trying to enter the job market, the ones who have given up or otherwise marginalized, and we’re well into the 15-20% range.

Mediated Reality:

When will people come to the realization that a new financial system is needed to represent the new social order?  When will people realize that they have in their possession the most important tool ever devised by humanity for the benefit of humanity?  When will they shut off the TV and reject the barrage of mediated reality that blinds them with propaganda at every turn?

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Community Currency; Ithaca Hours

Editor’s note: I found this copyrighted piece from all the way back in 1995.  I find such history enlightening.  As a researcher it allows me to eliminate certain variables such as Social Media, 9/11, TARP, GWB, BHO, Global Warming, and a host of other firebrand influences on public opinion and action.  That said, the clarity is remarkable. Take strong note of the intention of fulfilling social priorities.  Today, as our corporations and government (federal, state, and local) continue to cut social programs in order to service interest on debt, the void on social programs will induce an inevitable condition; Community Conversational Currency.

by Paul Glover

Originally published in IN CONTEXT #41, Summer 1995, Page 30
Copyright (c)1995, 1997 by Context Institute

Many communities are giving up waiting on large corporations or government to invest or provide jobs, and are instead building on their own strengths and resources.

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