Tag: speculation

In 2006 John Paulson (of no relation to Treasury Secretary Henry Paulson ) bet that the sub-prime mortgage market would tank and housing prices would fall on a national scale, according to a new book The Greatest Trade Ever by Greg Zuckerman. He cleaned up with 4 billion dollars in personal gains, 20 Billion for his firm.

Wonder where your money went?

“John Paulson took it,” wrote Peter Cohen of BloggingStocks. Want to know what Paulson is buying this year? Gold. Betting against the dollar is his latest ploy and so far seems to be working. Ummmm…this means that the rest of us are basically screwed, again.

Paulson’s investing lessons:

1. Don’t Rely on Experts
2. Bubble Trouble
3. Focus on Debt Markets
4. Master New investments
5. Insurance Pays
6. Experience Counts
7. Don’t Fall In Love
8. Luck Helps

Hey Kids, let’s learn from the master:

1. Don’t rely on Experts: They are the crooks. The Mexican Peso crisis was not caused by foreigners; it was caused by Mexican elite running away from their own currency and sparking a wider run. See Johnny Run….

2. Bubble Trouble: Further evidence is seen in speculative bubbles appearing in mundane fixed assets like land, minerals, and alternate currencies around the world.

3. Focus on Debt: If you have cash, you’ll lose it to inflation. But if you have debt, you’ll lose that too. If you have too much debt and you’ll go bankrupt. If you have too much cash and you’ll become equally broke. The trick is to hold just as much cash as you hold debt and when it’s all over, you’ll be no better or no worse off.

4. Master new investments: In the old system, if I trade a dollar for an apple, I lose the dollar but gain an apple. In the next economic paradigm, I share an idea but I still retain the idea; and currency multiplies – master the new investment!

5. Insurance Pays if you know how to play; if you can identify the peril, you know the probability that it will get you, and you know the consequences of the loss – you can “play” insurance. People must reorganize around an “insurance system” enabled by social networks that can influence these factors.

6. Experience Counts; While corporations are laying off older people, social media is capturing them in a knowledge inventory. We must develop, produce, and access this knowledge inventory.

7. Don’t Fall in Love: This means diversify and don’t be afraid to try new things. Innovation is the art of putting many different ideas, concepts or objects together and yielding new wealth creation. What better mechanism than social media.

8. Luck helps: Social media is like a cloud. Nobody can control and the only way to engage with it is to talk to the cloud. After a while the cloud will deliver rain, and your garden will grow. John Paulson calls this luck, we call it inevitable.

We, the people, need to introduce a new economic paradigm – nobody will do it for us. We may lose the dollar as a currency but we must not lose our personal ability to produce and trade our ideas, plans, and actions for the things that our families need to grow. Wealth is created by sharing. The Next Economic Paradigm shows us how we, as a society, can reorganize ourselves around an economy built upon social media. Sounds far out but it can be done today if we move quickly to understand the power – near absolute – that people can have in social media. If John Paulson were really smart, he would bet on us not against us.

Seeding the Clouds of Social Media

By Admin

On November 18, 2009

In General Information

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.

Tag: speculation

Fattest Cat Bets Against Dollar (and what we can do about it)

Seeding the Clouds of Social Media

Support the Ingenesist Project