The Ingenesist Project

The Next Economic Paradigm

Tag: sibos

The New Economy Movement

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On March 27, 2012

In General Information

The following 7 minute talk was presented at the Innotribe Sessions at SIBOS 2011 conference in Toronto Canada.

Here I identify a serious omission in our form of economics which may  inhibit the ability for currency to represent the things that people do and make. I also introduce how a new class of financial instruments could re-connect currency with productivity thereby reintroducing vast amounts of value into the tradable asset (currency) pool.

What if the solution to the great complexity of economic collapse is actually fairly simple – and we don’t find it?  What if the new economy is going to happen whether we want it to or not – and we are not prepared?  What if the tipping point to the New Economy is already past – and we are not in the game?

The only ones to blame would be ourselves for not building the obvious.

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A Radical Twist on Crowd Computing

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On September 13, 2011

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Social Flights is a Value Game. The objective is for communities to fill a private jet in both directions in order to achieve the best economics. This may be achieved through creative Game Mechanics where travelers, aircraft operators, tourism and hospitality vendors, and municipalities interact in their mutual best interest to perform a calculation in a radical twist on the concept of Crowd Computing.

But what if communities could organize themselves using their own data? This would introduce a great deal of innovation in order to solve a calculation that is otherwise performed by capital infrastructure such as structures, corporations, government, or in the case of Social Flights, a vast hub airport.

The Value Game is designed to be gamed by entrepreneurs where “True Value” is created through collaboration rather than competition.  

If Social Flights can create a game where people share an airplanes, imagine that the same game can be played with any shared asset from cars, education, health care, food production, and even public infrastructure.  Communities may perform the “calculations of economics” much like how traditional tribes allocate resources.  Enterprise lacking in “socially redeeming value”,  by definition, will fail.

So exactly how powerful are tribes?

As we all seen this year alone in the Internet Age, Social Currency can and does directly challenge dictators, militaries, financial systems, and governments across the globe.  People are performing Crowd Calculations – communities are Crowd Computing.  These ideas and many more will be highlighted by Innotribe at SIBOS 2011

Let me offer an analogy:      

The economy that is denominated by Money, is a system built on 5 pillars that are perform the calculations of finance and economics.  The pillars are integrated to support a financial system. These pillars are: a currency, an accounting system, vetting institutions, entrepreneurs, and consumers.

If any one of these pillars is broken, corrupted, oppressed or otherwise fails, the entire system falters. Enron presented a failure in the accounting profession. The mortgage crisis was the failure of the vetting mechanisms. Corrupt legal systems suppress entrepreneurs. Now the debt crisis is threatening the currency pillar.  The currency crisis will threaten the consumer.

Suppose that these five old economic pillars could be duplicated in a some different way and then integrated to form an alternate system for performing the same calculations.   It is no coincidence that many of the sessions at SIBOS2011/Innotribe correspond to the five pillars of such an economy.

Entrepreneurs: Social Data and Cooperation, Corporate Cultures 

Vetting mechanisms:  Banks for a better world

Accounting system; Big Data

Consumers: Digital Identity

Currency; Future of Money

Imagine this, if the organizations at Innotribe were to integrate to create a new economy that is only slightly more efficient the old system, they may become the mother of all hedge funds. Remember the dictator caught without social currency?  At least half the money in the world will convert, capitalize, and securitize in social currency.  We may not be that far off from that day.

The New Economies Track at SIBOS2011/Innotribe features the people and projects that are at the forefront of “The Big Integration” where the five pillars of a new economic system will integrate themselves to form a new economy to replace the old.  It all starts with entrepreneurs such as those featured at Innotribe 2011 trying to figure out new ways to integrate the five pillars of a new economy.

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New Economies at SIBOS; The Metacurrency Project

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On September 2, 2011

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The New Economies Panel at SIBOS Innotribe this year in Toronto represents the most important elements of a new economy which many people believe is emerging to replace the old one that continues to crumble around us.

The common message of New Economy movement is the vastly expanded definition for the term “Value’ – far beyond that which can be articulated with money.  Very few organizations hold this idea as explicit to their DNA as The Metacurrency Project.

Few can deny that the Sun delivers all value to our Earth.  The Mass of our Universe provides the rest; Gravity, Motion, and time.  In this context, money is a trivial device that simply articulates the relatively archaic things that humans can manage to conjure and horde from the vast natural resources that are delivered to us for free.

The idea that Energy can exist is many forms cannot be separated from the fact that Value can and must also exist in many forms.  The challenge that we face as a civilization is to build an economy that articulates all Value completely and truthfully.

The Metacurrency Project has become a Worldwide conversation expanding the definition of value and building systems to articulate such value in communities, companies, and society.

I had the opportunity to meet Art Brock at The Future of Money and Technology Summit in San Francisco earlier this year.  Art represents a very important voice in the discussion of new economies at SIBOS/Innotribe on September 19-23 in Toronto.

We look forward to seeing you in Toronto.  If not, then thank you for continued interest and participation in the important subject of New Economies.

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The True Economy, The True Value

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On August 31, 2011

In General Information

I am reading The New Capitalist Manifesto by Umair Haque in preparation for SIBOS 2011 where I will have an opportunity to join in a common conversation. I will be speaking on a panel called New Economies along with several other distinguished presenters (see Below).

New Economies = The Values

The most important thing about the discussion of new economies is the idea of Value.  It is essential that we define Value much more completely than just those things that can be articulated with money and shift to include all forms of Value in our entrepreneurship.  The Sun delivers value to the Earth. Parents deliver value to their children.  Communities deliver value to society.  A true accounting of all value is essential to the discussion of new economies.

The New Capitalist Manifesto is a hugely important book; Here are a few of my thoughts.

First; it provides a vital framework to begin accounting for what we call “True Value”; an accounting of real net value creation as opposed to borrowing, transferring, or destroying value that is not necessarily represented on a financial balance sheet.

Second; the new economy and emergent new accounting system will happen whether we like it or not.  There is little that people can actually do to avoid it. The new economy is a matter of survival – it will happen at the speed and drive of survival (hence “Capitalism”).   So make your choices now as these will define your future.

The third observation is that nobody is immune from the new economy.  The more one resists, the more it will persist.  The stronger that a country, corporation, or traditionalists hold to legacy ideas about linear value and forest-to-dump consumerism, the faster and more dramatic will be their demise.

So what does this have to do with Social Flights?

Social Flights is attempting to replace the horrific concrete wasteland of the command and control “Hub & Spoke” system with a Democracy.  Our premise is that people can self-organize around two points and efficiently share an airplane that flies directly between them from smaller airports.  In effect, we replace the infrastructure with cloud data to accomplish the same thing with a far superior customer experience, and therefor, greater true value.

Think about it; all of the world’s airlines are competing with each other in a race to the bottom around the Hub and Spoke system.  The two largest aircraft manufacturers are beating each other up around the strengths and limitations of the Hub and Spoke System. The whole system is limping along on razor thin margins. Yet, the vast majority of “true and complete” Value of travel is the human experience and the value of relationships, communities, and their actions together.  The only reason that Travel exists is being unceremoniously tossed out on the tarmac….

If you don’t listen to your customers, then at least listen to Umair Haque.

So, if you are a university, a corporation, government, or any institution dependent on physical infrastructure in order to match supply and demand while insulating yourself from competition, then you should be very concerned about the new economy.

New economies
Is money the only form of transaction value and wealth? What about social currencies? We will expose you to new thinking on new economies such as the trust economy, the intention economy, the relationship economy, the social economy and the ethical economy.

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Another Opportunity To Observe Social Currency

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On August 23, 2011

In General Information

(I am sitting on a panel at SIBOS 2011 in Toronto Sept 19-21st speaking on the subject of New Economies – this post represents the angle that I take on the subject)

With images of people rushing into the Libyan dictator’s compound like the current from a great tsunami reshaping the landscape in a matter of minutes, I reflect on the obvious metaphor.  A quick Google search on “Social Current” reveals almost nothing – except “Social Issues and Current Events”.  Well, close, but not quite…

I hate to break the news to folks but Social Current and Social Currency are the exact same thing.

For example, the ex-Egyptian President had plenty of money and plenty of oil, and plenty of guns  – all the markings of wealth and power.  Yet he was challenged and defeated by Social Currency. If there were a strict market driven conversion factor for Egyptian Social Currency, it would probably comp out at around 100 Billion dollars. So there is a conversion factor in case anyone is interested.

Will the real economy please stand up

Anyone who does not believe that social currency exists today and is actively traded, stored, and exchanged in quantities far greater than financial currency, is looking in the wrong end of their binoculars.  In fact, I would go so far as to say that the economy denominated in social currency is far greater than the economy denominated in financial currency.

Dollar spelled backwards is….

In the past, I have used the word “Rallod” as a placeholder for all VALUE that is NOT directly articulated with Dollars.  In fact, we could say that the Sun delivers Rallods to planet Earth and humans harvest what are called “natural resources” which are then converted to Dollars for storage, trade, and exchange.  The problem is that Rallods don’t have a financial “system” of their own. Rallods have been invisible – until now.

Money can’t buy me Love…

Not to get too fluffy here, but try to produce an airplane, a sandwich, or a surgical procedure without intellect, creativity, compassion, empathy, ethics, social values, or community awareness.  None of these things show up on the typical Wall Street Financial report balance sheet.  However, the absence of these things can quickly shows up in the liabilities column when confronted by social current.

Syria is in the midst of a social currency conversion process as are Greece, Tunisia, London, Israel, and France, etc.  Not to mention Yemen, China, Iran, and quite notably, the United States.

The Challenge then is to articulate ALL value in an economic system.

I believe this to be the genesis of the next economy.  I can also say with quite a bit of optimism, that it is well underway, we have past the point of no return, it’s a done deal, we are all interchanging Rallods and Dollars every day.

People are learning how to store, and exchange Rallods.  They really are – in fact, that’s where the majority of innovation in the world is occurring today.

**************

New economies
Is money the only form of transaction value and wealth? What about social currencies? We will expose you to new thinking on new economies such as the trust economy, the intention economy, the relationship economy, the social economy and the ethical economy.

Already confirmed:

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SIBOS 2011 – The Power Of Tribes

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On August 16, 2011

In General Information

I am deeply honored to be asked to deliver a keynote at SIBOS 2011 in Toronto next month.  Normally, I would consider myself quite lucky to have 5-7 minutes to speak to the World’s premier financial services conference. However, I’ll be speaking against the backdrop of economic turmoil, political gridlock, and unprecedented strains on natural resources – across the globe.

The topic of the presentation is The Power of Tribes.  While I’ll be representing a business application of this subject, – again, the backdrop for the Power of Tribes is Egypt, Syria, London, Wisconsin, Juarez, China, etc.

Why would they care about what I think?

I am aware that it’s unlikely that the financial industry will awaken some day and say:  “Wow, those kids who marched for equality and human rights in the 80”s were right all along!”.  “Yes, Yes, in order for the rich to live like we do, the poor need to live like they do and that’s not fair”. “Oh Gosh, let’s consult our engineers”.  Uh, not a chance.

They want a mountain of New Gold to appear on the Horizon.

The financial services industry is looking for new Value – something to prop up the Old Value that money is struggling to articulate.   As soon as I grab the mic, the audience will be saying to themselves “Ok, big guy, show me the money”.

Maybe I’ll suggest that Hosni Mubarack had no shortage of money or guns yet he was defeated by social (current) currency.  I could build a metaphore of a world where social currency directly challenges financial currency, political institutions, and even military strength.  Others have tried this path, so why would they believe me?

Perhaps I’ll speak through the reflection of a familiar mirror.

The financial industry is build on five pillars.  If any one of these five pillars is corrupted, the whole system fails

1. “Currency” exists for the purpose of storing and exchanging “Value”.

2. Value of currency is verified by vetting institutions.

3. An accounting system articulates inventory of Value

4. A business model such as “buy low and sell high”

5. Entrepreneurs do the fuzzy math and accept risk

It is not hard to track any failed economy with one or more of these pillars collapsed, nor is it difficult to see the cracks in the walls of the remaining economies.

The Power of Tribes

What many people do not yet realize is that as the old economy weakens a new one is emerging in lockstep.  The five pillars of a capitalist economy are being replicated in the social media movement:

Let me start in reverse:

5: Entrepreneurs do the fuzzy math – Search Engine Optimization

4: The business model is buy low, sell high – communities elevate social priorities

3: An Accounting system – trust, reputation, family, community, and influence

2: vetting institutions:  Twitter, Yelp, G+, Quora, and many many more

Only after these components have developed to a sufficient degree and become integrated with each other, a social currency will emerge.  It is wrong to say that a social currency comes first and all the rest will follow.

1. The new currency will come AFTER the integration of Social Media.

Convertible with money:

Keep in mind that dollars were once backed by Gold.  Eventually, the need for gold convertibility became obsolete.  Likewise, this social currency will be convertible with money, and eventually the need to convert to dollars will become obsolete. That’s the end game on the dollar

That’s also the Gold Mine on the Horizon…that’s The Power of Tribes

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