Tag: Obama

How Obama Will Save The World

On September 16, 2010

Do the math – Interest on National Debt can go all the way up to infinity while Austerity measures can only go down to zero. There is tragedy looming at both ends of the political spectrum and the Golden Goose can’t fly much longer. Captain Obama is in a tough spot.

Someone will eventually need to gently lay the economy down in a nice soft spot with a just a few critical social programs intact. A task comparable to US Airways Pilot Capt. Sullenberger who successfully landed his stalled airliner on the freezing Husdon without ripping off the wings, catching on fire, splitting the hull, or sinking the ship with all the passengers inside.

Here is how the endgame is shaping up:

Through some secret signal, all of the World’s money barons will come together and agree to simultaneously lop off three zeros (000) from all financial balance sheets. This will effectively reboot the world economy. A $50 trillion debt obligation now becomes a quaint and manageable $50 billion debt. Unfortunately, a $500,000 dollar pension becomes worth about $500 bucks. The game will reset with champaign toasts and business-as-usual in a race to conjure new debt into existence. The recovery is on … for some.

Those who have exactly as much debt as they have tangible assets will enjoy a net zero impact. Those caught at the extreme ends with too little debt or too much cash will lose spectacularly.

A stoic and sober Capt. Obama is at the controls, should we be worried?

Well, maybe. Just to give you an idea of what’s happening in the cockpit: Capt. Obama will project his glide path into the visible horizon. If he can’t make it out to Hillary’s term, he will probably try to set it down right after he is re-elected and can still blame the GOP. The GOP will try everything they can to wrestle it down before 2012 – split hull or not – so that they can claim the presidency. If they win 2012 without the landing, they’ll land it soon after 2012 and blame it on Obama. Note that none of this has anything to do with aerodynamics.

Why should this inspire anyone’s confidence?

There are a few people in the back seats working really hard to build a parachute that will hedge their fall. None of the people near the cockpit, boardrooms, or stock exchanges have any idea what these passengers are doing – they don’t seem to care – instead, they are too busy topping off their debt to equity ratios for optimum survivability upon impact.

But, the hedge instrument is playing out in Social Media, slowly siphoning the factors of production into a new economic system. Some passengers are only inches away from jump-starting an alternate economy using a social currency backed by real productivity, not debt, in a new form of capitalism. All they need is an instrument that is only a little better than what’s flying now. Then, all the money in the world will convert to the hedge currency.

Now THAT’s monetization.

The guys near the cockpit will never see it coming – they’ll only see it leaving. That’s how Obama will save the World. Let’s hope he can swim.

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Nobel Prize Goes to Social Media

By Admin

On October 12, 2009

In General Information

Well, not explicitly, but given the firestorm over the Nobel Peace Prize, the Economics Prize ought not go unnoticed. The Irony is that that just because we don’t know how to model some economic phenomena does not mean that the impact should be ignored. Whether you agree with the Peace Prize decision or not, clearly the impact of Social Media cannot be ignored.

Many Students of Social Media have long argued that the shortcomings of government and corporatism are more and more often becoming filled by innovation in Social Media. Likewise, the notable successes of Democratic Government and Corporatism should be preserved. Thereby, we form the basis of Social Capitalism.

Two American economists, Elinor Ostrom and Oliver Williamson, who study economic governance and the way decisions are made outside the markets, were awarded Monday with the Nobel Prize in economics.

Ms. Ostrom, who teaches at Indiana University in Bloomington, Ind., is the first woman to win the prize. The judges cited Ms. Ostrom’s “analysis of economic governance, especially the commons,” the way in which natural resources are managed as shared resources. Ms. Ostrom argues, “Over time, people often develop institutions, social networks and ways of interacting that solves the problem.” Even her critics agree that what’s important, is that Ms. Ostrom’s work points out the importance of the networks that many economists had ignored, in part, because they couldn’t come up with elegant models to describe how they worked.

On the other hand, Mr. Williamson, 77, who teaches at the University of California at Berkeley argues that some decisions are [best meant to be made within the corporate structure. “What he found was that many economic decisions that standard theory said would be more efficiently left to the market place were actually better left within a firm.”]. In short, even competitors form tacit social networks to do what is in the best interest of markets.

The Nobel Committee Agreed, “Competitive markets work relatively well because buyers and sellers can turn to other trading partners in case of dissent,” the Nobel judges said. “But when market competition is limited, firms are better suited for conflict resolution than markets.”

The bottom line is that just because you we don’t know how to model economic phenomena does not mean that their impact can be ignored. President Obama, whether you like him or not, has had a profound social and economic impact that is not yet clearly understood. The objective then is to at least try and understand the impact of social media.

Given the statements of the Norwegian committee that awards the prizes, Alfred Nobel would agree that the currency, therefore, is the conversation.

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Are we competing with the truth?

By Admin

On March 21, 2009

In General Information

The blogs are going wild, the headlines are snappy, and late night comedians bristle with glee. First it’s a $165M payout to AIG executives, now it’s AIG’s $75M lobbying campaign and payout to the politicians who were supposed to vet them in the first place – and the majority of the beneficiaries were Democrats!

Far greater crimes have been committed in the financial meltdown, but this one is catching fire and it’s trying to burn the house down.

As if fanning the flame, Obama loosens the reigns on the Freedom of Information Act, publishes bailout beneficiaries, identifies stimulus projects, opens doors to Iran, health care, education, and forces earmarks front and center. He is taking political bullets from all corners, but so is everyone else – nobody is safe. Not even Rush Limbaugh; now neutralized and tossed in the surf like a beached whale. People flood to social media, traditional media fails. When everyone is to blame, the finger points backwards.

So the competitors are actually cooperating; with the right information everyone has the incentive to make the game fair (and the highest probability of surviving).

By far the most important job in any sport is a referee. The referee wears the black and white stripped shirt in order to contrast with visual information in the field of play. They blow a whistle in order to contrast with the audio information in the field of play. They stop the game if the rules are violated in order to contrast with the dynamics of play. If a violation is too close to call, they consult the slow motion replay. Both sides agree to play fair and to obey the referee or else they get thrown out of the game. Contrast is good.

Obama is relentlessly pushing as much information onto the playing field as he is pushing money. Could it be that information and money are related in some inherent way?

Innovation is the science of change and economics is the science of incentive. Information, knowledge, and innovation are profoundly related. High rates of change of information yield higher rates of change in knowledge inducing still higher rates of change of innovation.

There is nobody to blame except the truth.

What Obama is doing is irrelevant to a manufacturing economy because market forces are a sufficient vetting mechanism for product quality. It is also irrelevant to the knowledge economy because that is destined to be outsourced.

However, Obama’s actions are definitive for an innovation economy.

Not unlike the financial meltdown; the only ones who don’t see it coming are the ones who don’t want to. Are we competing with the truth?

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Is The Banking System Corrupted?

By Admin

On March 9, 2009

In General Information

The following video series is one of the most important videos that you can watch right now. These were published in 2006 but it’s the best place to start understanding the current crisis. It will also give you an understanding of what Barak Obama is doing and why.

Finally, after viewing these videos, you will have a greater understanding of what money is, what the future holds, and why the Ingenesist Project is therefore so Important.

Part 1/5; Cartels Robbing the Public

Part 2/5; How Money is Created

Part 3/5; Money Is Debt

Part 4/5; Monetary Reform

Part 5/5; Warning About the New World Order.

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The US Financial System – Tail Wagging Dog

By Admin

On February 10, 2009

In General Information

The financial system is not the problem. The Innovation System is the problem – or did you notice that we do not have an “innovation system”? Finance and Innovation in the US has engaged in the dangerous dance of tail wagging dog. Innovation is as Wall Street does; not the other way around. This is wrong, this is very wrong.

Doers, not shakers

[Our economic strength is derived from the doers, the makers of things, the innovators who create and expand enterprises, the workers who provide life to companies and, with their earnings, support families and invest in their future… This is what drives economic growth.] – Barack Obama

These are sobering words. It make one wonder how everyone else makes a living; the brokers, the agents, the middlemen, the gatekeepers, the spinners, the flippers, the money managers, and everyone else in the game with their hands “in the flow of money” dragging the system into a tailspin. Many of these people publicly criticize the working class, who have finally run out of steam, for gumming up their game.

It is also amazing that the engineers, educators, technologists, medical professionals, and public servants could produce so much for so long; enough to feed everyone else – except, as of recently, themselves.

[The financial system is central to this process, transforming the earnings and savings of American workers into the loans that finance a first home, a new car or a college education, the credit necessary to build a company around a new idea.] – Tim Geithner

Meet the Master:

The financial system is supposed to be the servant, not the master. Innovation takes time, effort and resources before the payback can be realized. For this reason only, the financial system bridges that time gap to allow for increased future productivity to generate new wealth for use by all. That is the only reason why the financial system should exists. But somehow we have gotten it backwards.

We got it backwards:

Technological change must precede economic growth. We are going about the process of globalization as if economic growth can precede technological change. The invention of the wheel, wedge and the pulley came before the invention of the Collateralized Debt Obligation (CDO) – there is no excuse for this oversight. This is clearly unsustainable and the process must be reversed.

An easy fix, almost:

The Ingenesist project specifies 3 web applications that will allow social capital, creative capital, and intellectual capital to become tangible outside of the bloated and failing financial system. These applications will make innovation success predictable. If success is predictable, then cash flows are predictable. Using the same calculus as Wall Street, the cash flows can be combined, diversified, and split up into innovation bonds with superior returns that can be issued to fund new and sustainable innovation enterprise. Problem solved.

3 steps away from a quantum leap:

This can be done today playing by the rules and using existing technology – 3 simple applications. That is how close we are to achieving the most important evolutionary step in human history. The Government needs to empower the people to release themselves from the shackles of debt created by those who create little else. For this reason, Obama is on the only correct path – buying time so that this important social media technology can mature.

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To Awaken a Giant

By Admin

On January 23, 2009

In General Information

“Our workers are no less productive than when this crisis began. Our minds are no less inventive, our goods and services no less needed than they were last week or last month or last year. Our capacity remains undiminished”.

– Barak Obama

The gloves are off:

Mr. Obama’s statement is profound; in a single stroke, he liberated social capital, creative capital, and intellectual capital from the oppressive arm of the financial markets. This sends a strong message to entrenched and corrupted financial operatives that they no longer hold a monopoly on American productivity.

The factors of production carried over from the last century; land, labor, and capital, can be now be challenged by social capital, creative capital, and intellectual capital as factors of production for an Innovation Economy.

The third option:

Q. So how exactly does a country meet a 50+ Trillion dollar obligation?
A. It depends on the social agreement.

First, we could default and let the system crash. Second, we could endeavor to pay it back by committing the next several generations to servitude of the debt. Or, there is the third option that nobody talks about.

Create a new currency.

Almost every country has done it. Mexico replaced the old “Peso” with a “New Peso” (worth 1000 old Pesos). Europe created a new common currency. Chinese Yuan is a “bridge currency” that gets them from point A to point B. Each of these examples is different, but they have one very important element in common; they are utterly dependent on a social agreement.

People must agree to exchange the new currency on the streets. Social agreement, creative agreement, and intellectual agreement drives entrepreneurship and all must be achieved completely or “black markets” will form undermining the entire system.

The Tipping Point

We know a few things about currency outcomes. If inflation occurs, people with “cash” will lose it, while people with “debt” will see it deflate. The US can erase the deficit by inducing inflation and deflating the debt if production capacity remains undiminished. People, organizations, and governments that have exactly as much cash as they have debt will see no net loss or gain. In fact, the entire world’s financial system is worth exactly as much as it owes to itself – minus the value of social capital, creative capital, intellectual capital and natural resources – now, set free.

Social Agreement

As inflation progresses, there will be a point where a critical mass of the “social agreement” will hold the same amount of cash as they hold debt – their net loss will be zero. That’s when the system can reboot. obviously there will be serious consequences to any of the options, but this time, unlike any other time in history, social media will be the vehicle upon which the social agreement is catalyzed and not necessarily mandated by policy makers.

The Obama Factor

“Starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America”

Mr. Obama is right – the outcome depends on us. We cannot expect government or corperations to attend to all of our needs because we are the ones who individually and collectively own and control the factors of production that will support the next currency. The road to opportunity has been cleared and the invitation has been cast. We must now reach deep into our imagination and define the new business system where social capital, creative capital, and intellectual capital are directly tangible in a new global economic imperative; the Innovation Economy.

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The Relationship Economist

By Admin

On January 21, 2009

In General Information

The Office of the Relationship Economist of the United States:

President Obama said in his inaugural address;

This is true; so what changed?

Mr. Obama’s statement is profound; in a single stroke, he divorced human knowledge, talent, creativity, and intellect from dependency on the financial markets. In one short statement, he reversed the old world order where economic growth drives relationships rather than relationships driving economic growth. Mr. Obama has made people tangible as financial instruments in their own right. The language needed to change, only then could the relationships change and therefore, the economics.

Calculus: The Science of Change.

Change is everywhere. The only thing certain is change itself. We vote for change we can believe in, we are aware of climate change, and we see the world constantly changing all around us. Each of these sentiments is an expression of the mathematical discipline of Calculus

Calculus got a bad rap with most of us in High School. Calculus has boring charts, funny symbols, strange sentences, and objects flying around in a frictionless space – nothing could be further from reality, so it seemed. In reality, however, nothing could be simpler. Early civilization noticed that seasons change over time. Farmers noticed that plants changed over time. Isaac Newton noticed that the speed of the apple changed over time as it fell. Copernicus noticed that the location of the planets changed over time, etc. We all notice and respond to change.

Economics: The science of Incentives:

Bankers noticed that the value of money could also change. To lend money out for future repayment, there is a likelihood that something will change; good change, bad change, or no change. So, in order to avoid bad change and to keep good change, the lender charges “interest” on the money. Interest represents the change of money over time – but not the reality of the change itself. Consequently, the change of money induced incentives for people to behave differently and this changed reality. For better and worse, reality reflected the incentives rather than the incentives reflecting reality.

The Language of Change:

Today our language is changing at an incredible speed – most words associated with the human condition have changed in definition over only a few decades ago. The words “relationship”, “society”, “marketing”, “innovation”, “media”, “democracy”, “productivity”, and many others, all have expanded meanings. Now we need to create new words to describe new realities; Computer enabled society, Social Capitalism, Web 3.0, relationship economy, innovation economy. What is the incentive?

Relationship: The Science of Communication

Now here is where Calculus gets complicated: If words are changing and communication is connected to the words, then communication is changing too. If communication is changing, and productivity is connected to communication, then productivity is changing too. If productivity is changing, and the economy is connected to productivity, then the economy is changing too.

The Relationship Economy:

Just like money, the change in our relationships induces an incentive or disincentive to behave a certain way. For better or worse, incentives will reflect reality rather than reality reflecting the incentibes. That’s a game changer.

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The Ingenesist Project

By Admin

On October 17, 2008

In General Information

The Ingenesist Project; Putting an End to Debt Economics

The U.S. National Debt is over 10 trillion dollars. Assuming deficit spending stops today, every man, woman, and child in the US is responsible for $33,500.00.

This means that $33,500.00 of every person’s productivity has already been spent. Obviously, the only way to pay the debt is to increase every person’s productivity by exactly $33,500.00.

The only sustainably way to increase human productivity is innovation. The Ingenesist Project is an open source economic development program that will meet this challenge head-on by inducing an Innovation Economy.

The Innovation Economy:

The Ingenesist Project has identified three relatively simple web applications which, when applied to Social Networks, will allow human intellect, social capital, and creativity to become tangible outside the construct of Wall Street, Corporations, and Government.

The Ingenesist Project will build a mirror economy trading rallods (‘dollar’ spelled backwards) in an innovation economy. Rallods will be backed by “innovation” whereas dollars are backed by “debt”, hence, a mirror economy.

The Ingenesist Project has a Patent Pending for an Innovation Banking System and will release all rights to the public domain. By definition, The Ingenesist Project holds 10 Trillion rallods – and counting – to spend on development.

The Ingenesist Project will generously award rallods on a reputation scale for posts to The Ingenesist Project public forum toward the design, development, and improvement of the three web application (did I mention TIP has 10 million million rallods to blow?).

The New ‘Stock’ Market

Countless “new-to-the-world” business plans and patentable methods, systems, and devices will result from the The Ingenesist Project.

Entrepreneurs are encouraged to patent, protect, or contain all intellectual property that they develop and become as wealthy as they possibly can under the condition that they pay royalties, equity, or options to their knowledge inventory.

The entrepreneur’s “Secret-Sauce”, however, must be shared with The Ingenesist Project in order to improve the Percentile Search Engine Algorithm for the benefit of the public domain.

Participants eventually be able to trade services among each other in Rallods.

Objective:

Deficit spending is unsustainable. The existing financial system has exceeded its ability to pay back the debt and is being consumed by the interest on this debt.

As the dollar crashes, society will need an alternate economy to trade upon – one whose currency is backed by something tangible – our own productivity!

The dollar may eventually peg at some exchange rate to the Rallod.

More Information:

Please review www.Ingenesist.com
Please review Articles in Sequence (18 short articles explain the concept)
Please review Patent Pending

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The Next Economic Paradigm

Tag: Obama

Are we competing with the truth?

Is The Banking System Corrupted?

The US Financial System – Tail Wagging Dog

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