Tag: wealth

The Ingenesist Project: Making Money

Nobel Economist Robert Solow calculated that 80% of economic growth is the result of advances in technology. This Makes sense. Technology makes us more productive.

However, GDP measures the products, not the producers. Engineers, Scientists, and Technologists are responsible for ideation, design, and implementation of new and improved technology.

Unfortunately, Engineers, Scientists and Technologists are classified as “intangibles” Intangibles are, in turn, classified as expenses to be minimized, not investment to be maximized.

Here’s the good news… 80% of the true global economy is simply hidden from view. Trillions upon trillions of dollars are sitting on the table waiting to be measured into existence. Can you see it?

The Ingenesist Project uses game theory, blockchain, and Artificial Intelligence to convert Intangible Assets into a tangible form.

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Analysis

The purpose of this video is to synthesize the simplest interpretation of value and test that against prevailing economic principals. Engineers, scientists and technologists are treated as EXPENSES, let that sink in. If they are not assets, then they are LIABILITIES… full stop. This is a clear, present and vastly consequential flaw that must be addressed by someone somewhere.

Otherwise, if there is no institution willing or able to defend this flawed economic principal, then it is super-vulnerable to disruption. We need to maximize innovation, not minimize innovation. There needs to be a wholistic and systemic approach to solving problems in the world. We must head off global systemic risks. As clever and experienced as the VC community is, they cannot be expected to pick and choose winners and losers in the next economic paradigm.

There is far more ‘money to be made’ by shifting engineers, scientists, and technologists to the ASSET column of the global balance sheet.

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An Invisible Economy

By Admin

An Invisible Economy: The Ingenesist Project

A firefighter is worth millions of dollars per hour preserving lives and property… but only when there is a fire. A Fire Protection Engineer can design thousands of buildings that will never burn.

In the absence of a fire, the true value of the Scientists, Engineers, and Technologists is invisible. But the value of their economic contribution continues to persist.

What if we could measure the true value of intangible assets into present value existence. A massive new asset class would be unlocked.

The Ingenesist Project uses Game Theory, Blockchain, and Artificial Intelligence to convert intangible assets into tangible form, at scale. There is no shortage of money, only a shortage of imagination.

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Analysis

The purpose of this video is to demonstrate how engineers, scientists, and technologists remove RISK from complex systems. Risk is directly correlated to “return” and, therefore, profits.

So what happens to all of that value that a single diligent engineer creates when they remove all of the risk? Is it paid to the engineer? no. Is it returned to the non-victims of the calamity averted? no. Is captured by the the banking system as some form of arbitrage? Yes, absolutely, yes.

This is the deep dark secrets of finance. Don’t let the engineers, scientists, and technologists know that they are paid 2-20% of what they are worth. They may want free stuff like healthcare, job security, or royalties, or else they’ll go build something else that pays better social dividends. Can’t have that.

Obviously the question becomes, what happens when there are no more engineers to eliminate risk? There is a tipping point and we are dangerously close to approaching it. These things are easy to measure, assess, and resolve but there needs to be an institution able to secure material facts and assert the economics of those facts.

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A Tiny Flaw

By Admin

A Tiny Flaw. The Ingenesist Project

What if there was a tiny and nearly imperceptible flaw in Market Capitalism that could be easily corrected? To do so would solve many of society’s most pressing needs without disrupting the institutions upon which we depend.

Technological change must always precede economic growth. We are going about the business of civilization as if economic growth must always precede technological change. It’s like driving a car while looking through a mirror. In other words, money is not the cause of innovation. Money is the result of innovation. The implications of this tiny flaw impacts everything from Climate Change and Social Equity to Venture Capital and Global Debt.

It started with classical economic theory. In the 1700’s economic inputs such as Land, Labor, and Capital were easy to measure. The products that resulted from these inputs were also easy to measure. However, in the 1700’s; social, creative, and intellectual inputs by humans were not so easy to measure. Accountants call them intangibles, but they are simply “invisibles”.

Today, this is an easier problem to solve. Ironically, technological Change has brought us new ways to measure intangible assets. All we need to do is convert them to a tangible form. The resulting economic growth will far exceed global debt because there is no such thing as “not enough money to innovate”. Together we can correct A Tiny Flaw

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Analysis

This is largely the initial video in the series and the first that we published. Attention should be drawn to the idea that maybe there is a tiny flaw that can be easily corrected. Instead of trying to solve every single problem that is strangling civilization as we know it, we could solve one single problem and the other problems will solve themselves.

The question becomes: are we too vested in our misery to even consider such a possibility? Are we so narcissistic to believe that our particular problem is the one that must be solved even if it worsens someone else’s problem? Are we all expecting the “other guy” to change and that will make your world work? Good luck with that.

The flaw is no tiny, so hidden, yet so obvious that it defies the imagination. All we need to do is measure ourselves differently. Who is stopping us from doing this? nobody. What law says we can’t do this? There is none. And if we do correct the flaw, who suffers? No one.

Will we do it?

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A Knowledge Inventory System

By Admin

A Knowledge Inventory System; The Ingenesist Project

Have you ever wondered why the credits at the end of a movie are printed so small and scroll by so fast? The credits are not there for your benefit. The credits exist for the benefit of the movie industry.

Film production is a highly intellectual, creative, and social enterprise. In other words, Hollywood is denominated by knowledge assets. The rolling credits serve as a knowledge asset inventory system for all things needed to make the next movie.

Everything revolves around being on the credits or being known by people on the credits. This is how people find each other. The rolling credits make this possible. Not unlike a blockchain, in order to cheat the system, one must alter every instance of the celluloid reel or digital file.

Engineering, science and technology are also social, creative, and intellectual industries fueled by knowledge assets. Not unlike a blockchain, engineering processes are irreversible and immutable.

When we look at a sturdy bridge, or magnificent structure, or a brilliant piece of software, there is no easy way to find the people who are responsible for a specific element of that work. The Ingenesist Project uses game theory, blockchain, and Artificial Intelligence to create a knowledge asset inventory so that Engineers, Scientists, and Technologists can find each other.

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Analysis

Engineering and science have long been compared to the Arts as a creative profession. The point of this video is to demonstrate how other creative professions deal with the intangibles gap. While the Hollywood system has its own set of pros and cons, the comparison is worthwhile. Notably, the arts often compensate creators with “royalties” while engineering, science, and technology most often pay hourly wages.

In addition, there are comparably fewer barriers, silos, or human resource management hurdles to navigate for artists. They don’t attempt to reduce a 4-dimensional performance down to a 2-dimensional CV/resumé. Instead, they can submit the 4D performance as their resumé. A great deal of efficiency is retained.

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An Algorithm For Innovation

By Admin

An Algorithm For Innovation; The Ingenesist Project

A useful definition allows people to identify, replicate, or measure the subject being defined. Yet the best definition we have for Innovation is basically, “You know it when you see it”.

How can we sustain our world if we cannot even define the sole instrument of change?

Have you ever had an epiphany? That ah-ha moment that comes from deep within… …when suddenly your knowledge about something grows exponentially within a very short period of time? Let’s call that “innovation”, where one large innovation is comprised of many smaller innovations.

In order to measure innovation, all you need to do is measure the rate of change of knowledge with respect to time. You don’t need Calculus to recognize this as an algorithm for innovation … but it helps.

If that idea doesn’t change the world, nothing will.

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Analysis

Innovation is a great mystery that does not need to be. Everyone innovates – it is necessary for survival. Yet the magic and mystique of the innovator is a cultural phenomenon that forms the foundation of tech social status. Innovation is denominated in money – if you are not flush with cash, then you are not an innovator. Only VC can be innovators due to their ability to navigate financial markets. It almost seems that the more difficult it is to identify something, greater scarcity can be assigned to it. With greater scarcity come greater value. Again, when we become vested in our own misery, progress grinds to a halt.

This is all quite counter productive.

The problems of the future will require innovation, creation, new ideas, and vast execution at an astonishing scale. In order to achieve true economic sustainability, we need to a metric to denominate true value, not propped up scarcity value.

It is relatively easy to create and measure where high rates of change are occurring in a community or society. It is then relatively easy to observe what innovations take place as a result. This isn’t exactly a unicorn farm, but you probably can’t have a unicorn without these conditions in the first place. It is then only a matter of memorializing these conditions in a tangible form.

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Dividends of Innovation

By Admin

The Dividends of Innovation

Innovation is not linear Modern civilization did not begin 10,000 years ago with 250 Trillion dollars sitting in a box somewhere in the desert.

Money was measured into existence as a function of the things that scientists, engineers, and technologists built. Innovations such as the wheel, wedge, and lever came long before the invention of International Trade Agreements Innovations in machinery, transportation and energy enabled advances in sanitation, healthcare, and computers

Yet, the wheel, wedge, and lever are more important and more widely applied than ever. Wouldn’t it make more sense if we developed a monetary system backed by the dividends of innovation rather than the gravity of debt?

The Ingenesist Project uses game theory, blockchain, and artificial intelligence to measure the true economic contribution of engineers, scientists, and technologists.

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Analysis

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How It Works

By Admin

How It Works; The Ingenesist Project

The Ingenesist Project Uses Game Theory, Blockchain, and Artificial Intelligence to convert intangible assets to a more tangible form.

Part One: Observe The game is based on a system of claims and validations among a population of players.

Part Two: Measure Blockchain acts like a giant datalogger that captures time-value data of game transactions.

Part 3: Predict The Percentile Search Engine predicts the likelihood various combinations of players would produce novel outcomes.

These three applications acting together create a virtuous circle that converts intangible assets into a more tangible form. Join The Ingenesist Project

Analysis

In almost every video, we make the statement that The Ingenesist Project uses game theory, blockchain, and AI to make intangible assets more tangible. This sounds pretty complicated, so how do you explain it in under a minute? The audience deserves to know how we intend to deliver on the promises that we are making.

The answer to this, and almost every engineering or scientific problem, boils down to making observations, measuring outcomes, and predicting future results. The same should be true here.

We’ve also stated that engineers remove risk from complex systems. Risk assessment follows a similar sequence; first you need to identify the risk exposure, then you need predict the likelihood it will manifest, then you need to measure the consequences of the event.

The game sets things into motion, the blockchain records the motion, and the AI reads the recorded motion and predicts the next point on the curve.

So what may seem like a very complicated and jargon laden geek storm is actually an extremely simply set of tasks that almost everyone already practices in the professional lives. Why reinvent the wheel?

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Network Effects

By Admin

Network Effects: The Ingenesist Project

To borrow from a famous quote: “Uber, owns no vehicles… Google and Facebook create no content… Alibaba holds no inventory… Airbnb owns no real estate….” But they have a combined value of almost 3 Trillion dollars. This is very interesting.

Whereas most companies are priced according to strict financial performance, Network platforms provide a virtual bridge that connects people to each other. They are priced proportional to the square of the number of human connections they serve.

This is known as Metcalfe’s Law of Network Value. If network platforms create a virtual bridge connecting people, why can’t we value real bridges using Metcalfe’s law? Why can’t we value roads, airports, buildings and all manner of engineering, scientific, and technological infrastructure as proportional to the connections they serve?

The Ingenesist project uses game theory, blockchain, and artificial Intelligence to convert intangible assets into a more tangible form. Join The Ingenesist Project

Analysis

We often say that Engineers, Scientists, and technologists need only to measure themselves differently in order to become “more tangible”. Most people’s eyes glaze over as if we’re living in some fantasy world. This video demonstrates that principal exactly as it happens with network platforms that are popping up everywhere around us. Really, we’re not making this up.

Metcalfe’s law arose from the telecommunications industry to measure the utility of telephone connections. The value of the network grows exponentially with the number of points in contact. Let’s start by saying that telephone networks themselves are a creation of engineering and scientific professions.

The engineering value of a bridge is equal to it’s replacement cost – so that’s what they pay engineers to create one. However, the economic value of the bridge includes every transaction, truck delivery, soccer game, doctor appointment, and math class that resulted from the ability for 10,000 people per day to cross the river.

Facebook, Google, Alibaba, AirBnB, et al, could not exist if they were valued according to their replacement cost. Imagine what amazing works of engineering, science, and innovation are non-existant today only because it is valued incorrectly.

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Risk And Return

By Admin

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Risk and Return

As the saying goes, money makes the World go around. This may not be entirely true.

Where risk is high, the cost of money is high. Where risk is low, the cost of money is low. Engineers, scientists, and technologists specialize in removing risk from complex systems. So, why is there never enough money to mitigate the world’s most pressing risks?

Fortunately, all we need to do is reorganize engineers, scientists, and technologists and the money will surely follow

The Ingenesist Project uses game theory, blockchain technology, and Artificial Intelligence to reorganize the engineering and scientific professions.

Analysis

This video poses a legitimate question. If there is money to be made by mitigating risk, why are Engineers, Scientists, and technologists classified as expenses (liabilities), and not assets on global balance sheets?

It’s amazing how vested we are in this staggering little flaw in market Capitalism.

Key Phrase: Risk and Return

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The Innovation Standard

By Admin

The Innovation Standard: The Ingenesist Project

Solving the problems of the future will require humans to innovate at an astonishing rate… … far greater than anything our existing economic system can support. In order to achieve this, there must be a fundamental shift in how knowledge assets are measured, curated, and exchanged.

Today, a traditional bank distributes money backed by your promise of FUTURE productivity. Innovation is also a promise backed by FUTURE productivity. Two currencies backed by the same underlying asset are readily convertible.

In the future, an Innovation Bank, would issue currency backed directly by the true value of innovation. All we need to do is measure ourselves differently.

The Ingenesist Project uses game theory, blockchain, and Artificial Intelligence to convert intangible assets into a more tangible form.

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Analysis

The Innovation Standard is a reference to the Gold Standard or the Debt Standard, or the Oil Standard, etc. Whatever the standard, it needs to represent human productivity or else nobody would work in exchange for it (think about that for a sec).

The problems that face the world are global and they are systemic. That means that free markets technically don’t exist and the next thing that needs to be produced is the thing that society needs. Sure everyone wants a new Lambo, but it’s not very useful if the roads are too rough to drive it. Sure.Bitcoin is awesome but it’s contingent on a reliable energy grid. Sure, I love AI and much as the next geek but who’s going to read my content if they lack education to act on it?

Money as we know it just does not move fast enough. It does not represent the true productivity of Moms and Dads, soccer coaches, engineers, Scientists, teachers, and event organizers. Money needs to be produced as thenet sum of productive human behaviors. People know what problem needs to be solved next and if you give them the tools to fix things, they will.

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The Law of Nurture

By Admin

On November 22, 2023

Competition is one way of arriving at the optimal solution to a problem. Some call it the “Law of Nature”, survival of the fittest – where the final score can only be One to Zero. Unfortunately, in order to feed the winner, we must cultivate suitable losers. Evolution is slow and inefficient as a business optimization tool.

The laws of Nature provide infinitely more examples of collaboration than competition. Even if one player does not win today, their capacity to innovate remains to continuously improve the game for everyone later … if we let them.

The Ingenesist Project uses game theory, blockchain, and artificial intelligence to convert intangible assets into a more tangible form. Join The Ingenesist Project

Analysis:

This video acknowledges the value of competition as a solution optimization tool. So competition is not being called into question. However, a different problem involves preserving the knowledge, innovation, and wisdom that was created in the act of competition so that they can be developed in future or tangential problem solving environments.

Economics is the science of incentives which invariably invokes the discipline of game theory. we do have complete control over how a game is played, how players are preserved (or destroyed) and how equity is distributed. As such, we have complete control over the sustainability of the game which is ultimately in the best interest of everyone.

The conclusion is that a game which maximizes the health and welfare of the players ultimately maximizes the value of the game.

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A Virtuous Circle

By Admin

On November 21, 2023

A Virtuous Circle:

A bank won’t lend money to a project that is not insured. An insurance company will not underwrite a project that is not properly engineered. Engineering projects need to be financed to cover the cost of design and construction.

This is the Virtuous Circle of economic development. If any part of this cycle is broken, incomplete or corrupted, economic development fails.

Financial institutions simply issue paper receipts called “Money” to represent the actual things that engineers, scientists, and technologists create.

Money is, in fact, the intangible asset and engineering is the tangible asset! We’ve gotten it backwards.

When a virtuous circle reverses itself, it becomes a vicious circle. This is where we are today Fortunately, this is an easier problem to solve. The Ingenesist Project uses Game Theory, Blockchain, and Artificial Intelligence to reverse this vicious circle.

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Analysis:

The purpose of this video is to introduce the big picture of how the Innovation Bank will integrate with existing financial networks to make the production cycle more efficient and more responsive to systemic risk.

The point of this video is to isolate the idea that our global economy is an interrelated system with 3 critical components that must be integrated and operating at peak efficiency in order for the economy to serve global citizens equitably.

The challenges of the future will require humans to innovate at an astonishing rate – far more rapidly than our current financial system can support. There is no way that Venture Capital – our current “best bet” – can respond to the speed, breadth, and depth of technological change.

The problem ahead is systemic risk. It is not possible for a collection of competing VC to pick the winners and the losers of the next economic paradigm. Unintentionally, the the VC system may cause more damage than good.

This idea is useful for when we introduce the game, blockchain, and AI components – the blockchain serves as a check valve that allows the virtuous circle to spin in only one direction. The game mechanics provide the energy to keep the virtuous circle spinning in the right direction, Augmented Intelligence will help identify what components of the system are operating optimally so that innovation can be applied correctly.

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Decentralization Of Engineering, Science, and Technology

By Admin

On November 4, 2023

Decentralization is the rallying cry of the Blockchain Movement.

Few people realize that the Science, Engineering, and Technology professions are already decentralized. Unlike Banking and Finance, there are no all-powerful incumbents that must be vanquished. And the laws of Nature already apply to everyone.

Instead, Scientists, Engineers, and Technologists are contained by innumerable silos that have little to do with the Natural Laws We are segregated by jurisdiction, academia, ontology, corporations, politics, Trade Groups, Societies, international borders, and much more.

We represent 5% of the workforce but are responsible for 80% of economic growth. But collectively, we are weak, disorganized and powerless to prioritize the needs of our World. The only thing standing in our way, is ourselves. This is a much different problem than decentralization.

The Ingenesist Project uses Game Theory, Blockchain and Artificial Intelligence to remove the silos that divide us.

Analysis:

The single point of this video was to introduce the distinction that a centralized institution and a collection of compartmentalized institutions may have similar characteristics to the participants, but are not the same thing. The former is far more difficult to disrupt while the latter is entirely vulnerable to disruption. This represents a huge opportunity for those who can see the distinction.

This idea plays a central role in the execution of The Innovation Bank. Where many see a stone wall of resistance to change, there may actually exists a paper veneer.

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A Tale From The Crypto

By Admin

On October 20, 2023

Have you ever wondered why a soccer goal has a net? The purpose of the net is to provide a visual contrast so that 50,000 observers can immediately reach a consensus that something very important has happened.

After that, a digital token is awarded to the team that scored a goal. The digital token also secures valuable business intelligence like game strategy, player stats, league standings, revenue, and everything else.

However, the consensus is by far the most important part. With the consensus, a player can make a lot of money. Without the consensus, they are invisible. With the consensus, the community can invest in a new stadium. Without the consensus, we can only play at the school yard. With the consensus, the economy flourishes. Without the consensus, it fails.

Lots of crypto projects have these same pieces. But mostly, they are mixed up. The Ingenesist Project uses Game Theory, Blockchain, and Artificial Intelligence to secure community consensus.

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The New Economy Movement

By Admin

On March 27, 2012

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 Better Way To Occupy Wall Street

By Admin

On October 10, 2011

What if I told you that we could occupy Wall Street without actually camping out there? In case you have not noticed, Wall Street occupies your house without you ever seeing any suits milling around your driveway. So what’s the plan?

In the Age of The Internet, redistribution of wealth should not be a very difficult thing to do, yet the approach is surprisingly low-tech. Just look at the pictures; if this is going to be our approach, then we’re in deep trouble.

Here’s the trick. Wall Street is built on a foundation where the factors of production are land, labor, and capital. All we need to do is shift the factors of production to something else. We don’t actually need to shift Wall Street, we need to shift ourselves.

The reality is that the today’s economy is built on social, creative, and intellectual factors of production – these are the factors of production of that so-called 99% of the value of our economy. It’s a knowledge economy, remember?

Now, notice how land and labor are constrained by geography, property laws, political districts, and “national borders”. Also notice that the accounting system (capital) is as anonymous as possible, if not shrouded in secrecy. Do you remember how Steve Jobs told us that it’s OK to copy good ideas?

First, we need to build a knowledge inventory of all the useful stuff in our brains and integrated by geographic proximity so we all can find each other. This is how we’ll mimic land and labor. Next, the knowledge inventory must be anonymous until the point of transaction – this is not for privacy concerns, rather, we need to do this to create scarcity (nothing personal, Zuck). This is how we mimic “capital”.

At the end of the day, your knowledge inventory is your personal API – you create your own value and integrate with others or withhold it as you wish…just like Wall Street. Of course, everyone would then need to become a corporation so that we can pay our fair share of taxes (but not a penny more). That’s code for “too big to fail”.

Have you forgotten about Wall Street yet? If so, it’s not too early to coin the term APIcracy.

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Is Freedom A New Economic Paradigm?

By Admin

On December 10, 2009

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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Palinism; It’s About The Ice, Not The Puck

By Admin

On November 24, 2009

What does Sarah Palin tell us about ourselves as a culture, a nation, or as individuals?

No matter whether you like her or not, you can’t help but feel something for her. The Cinderella launch into worldwide stage, full public disclosure of her laundry room, dumped at the altar by the grizzled groom, sent back to Alaska with a scarlet letter (take your pick) tattooed on her forehead. Alas, the epiphany: God speaks to the persecuted one; “Rise Up and serve thy mission!”

The thing that America has in common with Sarah is the time table. All of this happened in 16 months. The same 16 months of time as a new genre of bad news was also thrust upon us: astonishing job losses, crippling deterioration of wealth, unspeakable corruption, and complete disregard for what happens to a family when they a kicked out of their home by the law they elected.

“Too big to fail” means the rest of us are too small to succeed. Then here comes Sarah reminding us of ourselves; so much to blame on others and absolutely nothing that can be done about it. The only thing she has left is the moose horn. Let me tell you, if I had a moose horn like hers, I’d yell into it every day, all day long until someone smarter, stronger, and with less dignity (or nothing more to lose) steals it from me. This says a lot about the people who can’t shut Sarah up.

As president, she would be woefully inadequate, but as a Hockey Mom, she’s quite talented – when everyone else plays with fire, she plays the game of ice. The home team hates her, the opposing team hates her, the coaches conspire against her – nothing she says makes much sense anywhere else except those few seconds of a game long ago played – at least her mission, whatever it may be, is being accomplished.

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The Global Financial Crisis; The End Game

By Admin

On February 18, 2009

The year is 2024, no burning cities, no mass hysteria, no bread lines; the economy is on an exponential growth curve. It took a while, but the financial crisis of ended in an anticlimactic sort of way. Sure, lots of hedge fund bankers became unemployed, some went to jail, and many companies once deemed titans of industry have disappeared, but nobody seemed to notice much anymore.

Government debt has been eliminated and Wall Street has become the steward of what has become an Innovation Economy rising from the ashes of debt economics. The transition, in fact, was surprisingly smooth. Social Network applications such as Facebook, Linkedin, G+, and many more, developed a clever way to make knowledge tangible outside the construct of Wall Street and the traditional corporations and people began trading knowledge like currency.

When inflation hit, the dollar started to fall in value, people began trading a different currency called the rallod (dollar spelled backwards). The rallod was backed by future productivity resulting from innovation rather than future productivity supporting debt. When the dollar finally crashed, it pegged to the rallod and the economy began to grow again with an astonishing, yet peaceful, transfer of wealth and power to open sourced self-regulating communities; i.e., society in general. The vicious cycle of debt economics was reversed just in time. It’s still hard to believe what happened.

Today the engines of economic growth are tens of thousands of hot new start-ups that exist in the form of “Value Games” related to specific technology areas rather than the old corporation model. They automatically cluster around a technology and spin off other start-ups at an incredible rate in a strange nesting arrangement called the “tangential innovation” market. Most innovation is open sourced because the “Patent” (and protectionism in general) is no longer the center of the innovation finance universe, rather, the “secret sauce” of social, creative, and intellectual capital is the most valuable asset today.

About 15 years ago, something resembling the human genome project mapped all knowledge in the form of social, creative, and intellectual capital that exists in society to a very high granularity. An API standard was created to represent knowledge assets like packets of code that are processed by a community algorithm. The CV/resume is an old bar joke now. Thanks to a visionary government, 1st amendment protections were built into this inventory with anonymity laws and privatized TOU; creators own what they create.

An open source percentile search engine was created to enable entrepreneurs to build unique collections of knowledge assets and predict the probability that various combinations of these assets could successfully execute a business plan. High diversification induced hyper-innovation around technologies and the resulting innovations are spun out to be reabsorbed by different and diverse communities of practice in continuous iterations forming a virtuous vortex of new systems, methods, and solutions. Sketched out, these arrangements looked like electrical “integrated” circuits. Wealth creation is intense.

Since the knowledge inventory has mapped all knowledge and the Percentile Search Engine calculated probabilities and scenarios, the Innovation bank formed to make most worthy and optimal matches between knowledge surplus and knowledge deficit in a community. Since the probability of innovation success has become predictable, innovation risk is now diversified away. Innovation insurance products abound. With near-zero innovation risk the cost of venture capital has approached 5-7 % instead of 500-2000% of less than a decade ago. Banks now issue innovation bonds on the public market to finance innovation in society. For an investment of such high return and such little risk, participation is near universal. This created another virtuous circle; the more innovation that occurs, the more money is created. The more money that is created, the more innovation occurs.

Instead of having jobs, many people in a geographic area are pinged by the Percentile Search Engine which calculates the likelihood that their interaction together will increase the probability of successful execution of a business plan when combined with other knowledge assets. Instead of earning wages, people collect micro-royalties specified by contracts on capital asset sub-sections. These micro-royalties add up to substantial residual income enjoying a multiplier effect as their work continues downstream over their lifetime. The government funds social security through it’s own innovation ventures. Service workers such as police, teachers, fire fighters, nurses, local merchants, etc., are key beneficiaries because of their impact on the community is directly associated with productivity.

Many of the senior knowledge workers have determined that they can earn more money by taking an equity position in their students, and the students of their student. Unlike a decade ago, pyramid schemes in innovation economics are sustainable and generate astonishing profits. Mentors have entered the landscape in vast numbers and apprenticeships have become abundant. The income potential for the “creating creators” boggles the imagination. Again, a virtuous circle has formed between the mentor and the student. In aggregate, wisdom is being retained, refined, and transferred efficiently throughout social networks.

University “degrees” have disappeared in favor of unique combinations of knowledge assets that are continually SEO’d for best Percentile Search Engine Placement. People do not compete directly, rather, they compete with the Percentile Search Engine in the local market place by cooperating among each other. As owners of their knowledge assets, the entrepreneurial spirit is ubiquitous. No individual has either a monopoly or an identical knowledge set as anyone else. Everyone has perfect information about the knowledge assets in a market. People are pinged for different reasons at different times for different rates depending on supply and demand. Continuous education is a social event in itself, often mistaken for recreation!

Even the poorest areas of the planet are getting into the action because, by definition, the parts of an economy with the highest potential for technological change correspond to opportunities that return the highest dividends in an innovation economy. Arbitrage opportunities between master and oppressor have disappeared worldwide.

Like a neural network, the economic system of tangible knowledge is self-correcting, fault tolerant, and self-regulating. Governments across the globe tried to stop the social network driven innovation economy – but they eventually gave up. It was like trying to stop water; it flowed between the cracks and simply eroded the barriers. The most incredible outcome is that innovation now reflects long term social priorities instead of short term Wall Street priorities.

Oil production has been replaced by superconducting wind turbines, global temperatures have stabilized, all cars are electric or “water leakers” (as the hydro’s are affectionately known), many diseases have been cured, and the list goes on. It is hard to believe this happened in only 12 years. Then again, the Internet had only been widely used 15 years prior to 2009. Did I mention, we’re finally sending a multinational expedition to Mars…

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Social Media; An Alternate Universe of Wealth Creation

By Admin

On December 21, 2008

The Known Universe

Computer enabled society has been called an “alternate universe“. If Social Media intends to make serious money, perhaps it should act like one as well. In finance, Risk is also often called an alternate universe.

Beneath the surface of this little 4 letter word resides a complex network of financial instruments that do far more to channel and direct the flow of money than any commercial trend, marketing campaign, or hot new web app.

Risk is actually a very simple thing to understand. All you need to do is answer all three of the following simple questions:

1. Can I identify the peril?
2. What is the probability that the peril will get me?
3. If it does get me, what are the consequences?

The Insurance industry is absolutely gigantic – too important to fail – yet it produces nothing that can be held in the palm of one’s hand. Insurance lives and breathes in an alternate universe of information. Any place where these three questions cannot be fully and completely managed, you will find an insurance product. Where there is no insurance product, there is no capitalism.

Here is how it works: suppose there are 10 identical cabins in the woods. Each cabin is worth exactly 1000 dollars. There is a 100 percent probability that 1 of cabins will burn down every year, but nobody knows which. Therefore, each cabin owner needs to have 1000 dollars sitting in a savings account in case their cabin burns that year. Together, 10,000 dollars sits in a bank not being invested in productive enterprise. Along comes an insurance company to reorganize the assets by offering to replace any cabin if all 10 cabins agree to pay 100 dollar per year premium (plus an admin fee). Now each of the cabin owners can pay 100 dollars per year and release 9000 dollars to the economy as productive capital.

Insurance opens the floodgates of wealth creation; bankers lend, investors invest, and entrepreneurs innovate where risks are reduced to zero; all bets are hedged. But there is a trick; the peril must be identified (fire), the probability must be known (10%), and the consequences must be quantified ($1000). This only works if the assets are pooled in identical lots that have the same probability of loss and suffer the same fate. This is valuable information and it’s worth a whole lot of money.

Social Media is poised to open the floodgates of wealth creation in a similar way – by connecting local communities, neighborhoods, peers, and colleagues with computer enabled society. Today, it is often easier, cheaper, and safer to make friends online than in person, but nothing tangible can really happen until the rubber meets the road; people need to congregate. The Ingenesist Project suggests that the 3 dimensions of human capital, creative capital, and intellectual capital can be identified, normalized, quantified and pooled into risk sharing cooperatives through social media as a means of eliminating innovation risk.

The trick is for society to organize itself in a slightly different way – this is where Social Media needs to position itself with the next generation of applications. If so, the business model for social media will become hugely important to an innovation economy – too important to fail.

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INGENESIST PROJECT: Submission to the 10^100

By Admin

On October 8, 2008

INGENESIST PROJECT: Submission to the 10^100 Innovation Contest; www.project10tothe100.com

Single sentence:
The Ingenesist Project is an open source economic development program to induce the Innovation Economy utilizing Social Networks.

Tell us more (300 words)
The current financial system has reached the limits of its effectiveness. Interest on debt has exceeded the system’s ability to pay it off. But debt is simply a promissory note on future productivity – any caveman can tell us that the only way to increase productivity today is to innovate yesterday, not tomorrow.

In modern times, this means that the only way to sustainably create more money tomorrow is to innovate today. This is the flaw on Wall Street that Innovation Economics will correct.

Ingenesist has specified three simple web applications when applied to Social Networks, will allow Knowledge to become tangible outside of the organizational construct of a corporation, government, or academia. To develop these applications would unleash substantial innovation and wealth in society.

*The Knowledge Inventory
*The Percentile Search engine
*The Innovation Bank

Knowledge is an excellent tangible asset upon which to peg a currency – better than Gold, Silver, or Debt.

The factors of production for an Innovation Economy are Social Capital, Creative Capital, and Intellectual Capital. The knowledge Inventory classifies knowledge assets in social networks. The Percentile Search Engine assembles unique knowledge asset combinations and returns their probability of executing a given business objective. The Innovation Bank matches most worthy knowledge surplus to most worthy knowledge deficit. Finally, entrepreneurs elevate knowledge assets from lower states to higher states of productivity thereby creating wealth in communities.

By analogy; in the early 1800’s Eli Whitney performed a demonstration for members of Congress by disassembling 10 working muskets, scrambling the pieces and reassembled 10 working muskets. It may seem trivial to us today, but that simple feat astonished the world; it led to the industrial revolution, and unlocked a vast amount of innovation and wealth creation. Innovation Economics is the modern day equivalent.
What Problem does it solve (150 words)?

Technological change must always precede economy growth. We are going about the process of globalization as if economic growth can precede technological change. This simple reversal is the cause for much of what is unsustainable in the world today. Innovation Economics corrects this flaw.

To make knowledge assets tangible is the Holy Grail of financial accounting. The Ingenesist Project asserts that knowledge assets are not intangible, they are simply invisible – this is a much easier problem to solve. Innovation economics solves this problem.

True valuation of knowledge assets allows for direct capitalization of people and their social, creative, and intellectual capital. Networks of knowledge assets form a new type of corporation that is fault tolerant, self regulating, risk diversified, and responsive to social priorities. Wall Street becomes the steward instead of the master. The whole game changes.

If it becomes a reality, what happens (150 words)?
If Innovation Economics becomes a reality, Social Networks will become the driving force of economic growth because human knowledge (as social capital, creative capital, and intellectual capital) can be capitalized directly. Creative knowledge workers would benefit most initially.

Eventually, publically traded Innovation Bonds backed by productivity gains will replace venture capital at vastly reduced risk and cost thereby unleashing an extraordinary amount of primary and tangential innovation creating a virtuous circle.

Areas of low productivity, such as poor communities and under-privileged populations will become targets for highest returns on innovation applications. Millions of new-to-the-world businesses will emerge and nearly all existing businesses will become more efficient where human knowledge is tangible and free to assemble itself in infinite, diverse, and strategic combinations.

If done correctly, eventually most people on Earth would benefit by freedom from the shackles of debt economics.

What are the initial steps to make it happen (150 words)?

Phase 1: The initial steps are: publish our research to a wider audience, prosecute our patent application (USPTO: 20070226361), release it to public property, and begin receiving public input.

Phase 2: Publish several animated videos which describe step-by-step the role that Social Networks must play to induce the Innovation Economy. Collect more input.

Phase 3: Create an open source development platform where ideas can be collected from the global community on how to develop the three web applications specified herein.

Phase 4: Develop and release common architecture web applications for The Knowledge Inventory, The Percentile Search Engine, and The Innovation Bank.

Phase 5: Exist indefinitely as an NGO to keep the game fair and build out emerging opportunities as needed.

What is the optimal Outcome and how is it measured (150 words)?
The intended outcome is for the innovation economy to arise from the knowledge economy as the next level of economic development. The optimal result would be an improved wider distribution of wealth and the transfer of corporate prioritization to communities regarding what gets innovated and what does not. Or likewise, which existing markets dynamics are disrupted and which are not. The optimal outcome would be the emergence of sustainable enterprise over forest-to-dump consumerism.

Metrics are inherent to the algorithm of the Percentile Search Engine as follows: innovation is proportional to the rate of change of knowledge with respect to time and knowledge is proportional to the rate of change of information with respect to time. Differential Calculus is the mathematical tool used to monitor all performance indicators of this system. In fact, all of the analytical methods of finance similarly apply to knowledge assets, by design.

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The Capitalization of Knowledge – The Virtuous Circle

By Admin

On September 18, 2008