Tag: financial currency

Social Currency Hedges Financial Currency

On July 2, 2010

I have yet to see anyone of any importance in the social-media-guru-camp who has identified the inherent dichotomy between social currency and financial currency that rages all around us. No, seriously; every financial action is balanced by an equal and opposite social reaction. It’s a balance sheet of the balance sheets.

BP underestimated the social liability of their financial decisions by a factor of 100,000:1. US Corporations underestimated the social liabilities of outsourcing the knowledge economy by a factor of 1000:1, US Government underestimated the social liabilities of Wall Street Bankers by, likely, 1000:1. Tiger Woods underestimated his social indiscretion by a similar ratio; 10,000:10. Mel Gibson is trending hard on Twitter this week….etc.

I received the following press release today from “Professor Guru” at a famous US University:

US CITY, July 2 – despite a slight drop in the national unemployment rate, the situation is still grim for millions of Americans and thousands of businesses, many of whom fear double-dip recession. Beyond the numbers are some under reported aspects of the current situation: the toll it takes on employee morale and how it forces companies to manage downsizing in a manner that maintains their reputation, avoids embittering their terminated employees and keeps their remaining employees engaged.

Astonishing Omission:

Nowhere does this statement address a notion that for every dollar of financial currency saved, X amount of social capital will be lost. This is an astonishing omission of statement and purpose. All the social currency is well-accounted for with guru code speak like: “grim”, “takes a toll”, “morale”, “reputation”, “embitterment”, “terminated”, and “engaged”. And, all the financial currency verbiage is accounted for with pop-terms like: “double dip-recession”, “under-reported aspect”, “the numbers”, “downsizing”, “remaining employees (assets)”, etc. The call to action statement, of course, is that the situation “Forces Companies to manage….” or, to act in some new way that will,… uhmmm, well,….. what is it? ….minimize, balance, exploit, empower, update the Facebook page….what?.

Really, it’s time to get real:

Nobody is willing to say that for every dollar of financial capital saved, X amount of Social Capital is Lost. Obviously, nobody in their right mind would say that social currency is acting as a hedge on financial currency. Nobody has the guts to say that to cultivate social currency is to gain financial currency. Nobody is willing to acknowledge that if there are riots in the streets of America, the US currency will crash. Certainly no politician is willing to admit that it does not matter if that happens, it only matters “when” that happens.

Turning point of civilization

We are at an extremely important phase in World History. Will social media provide the fabric that society has lost from the domination of financial morality on social priorities? If so, then then keep your eyes on the ideas of a social currency conversion factor to drive Social Capitalism as a replacement for Market Capitalism.

The 1:1000 Rule; A Social Currency Imperative

By Admin

On April 22, 2010

In General Information

What’s the difference between money and value?

Today, I saw yet another doom gloom economic forecast with the proverbial exponential graph of interest-on-debt climbing out to the stratosphere. The prognosis is the same; all bad, very ‘all bad’ things will happen.

So I wonder, to whom is all this interest being paid? Where is all that money stored? It has to belong to someone or be represented by something on the planet Earth, after all, money makes the world go around.

The 1000:1 rule

If I were to take, for example, NOA, the National Oceanographic Agency, and ask someone a Goldman Sachs to place a value on it, they would add up the replacement value of all the ships and weather satellites and come up with a number like, say, 4 Billion Dollars.

Now, if I were to calculate the increase in human productivity that result directly from the ability to forecast the weather – for the purposes of food production, managing all modes of transportation, Energy production, and tangential resource allocation – the value of NOA would be in well in excess of 4 Trillion dollars. This is a factor of over 1000 between the value of the same object in financial currency and social currency.

A bridge spans a waterway and carries 50,000 cars and trucks per day. An alternate route would take each vehicle at least 1 hour longer per day to cross the waterway. 50 billion dollars worth of social value is created over the life of the bridge that cost 50 million to construct; a 1000:1 leverage ratio.

A single Boeing 747 costs 100 million dollars but increases human productivity (including influence ripples) by 100 billion dollars over the service life of the aircraft compared to the nearest alternative mode of transportation. Again, 1000:1

That’s the difference between money and value.

The problem arises because our financial system is not able to articulate true value of social currency using a dollar denominated currency so social value remains invisible, not non-existant. Maybe the financial system does not want to articulate social value. After all, dollar denominated currency represents control of social value at a ratio of 1:1000. It’s about control

9.6 Trillion dollars was spent to educate every American. Just because a “corporation” does not exist to employ them and utilize their talents to the highest productivity level, does not mean that the talent and value does not exist. According to the 1:1000 rule, The GDP of the US in Social Currency is a minimum of 9,600 Trillion. What deficit?

It is about control. The dollar has a 1:1000 control leverage over social currency. It is not at all surprising to see social media expand at the rate proportional to that which the doom-gloom crowd predicts that the financial system will collapse. They are related, they hedge each other. Don’t let anyone convince you otherwise.

Again, the imminent collapse of the financial system – no matter what the ‘doom gloom’ crowd says – does not mean that value does not exist; it simply means that the dollar will no longer control the value; that is, the social value wedged between people’s ears is free to be capitalized and securitized directly. We need to capture social currency in a new financial paradigm.

Social currency is not a buzz word, it’s an imperative – it is the Ingenesist Project

The Next Economic Paradigm

Tag: financial currency

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