Presentation on theme: "UCSC Merrill College Cultural Center California – USA 29 th of November 2012 Open Lecture by Dr. Armen Papazian CEO of ISDHub Money Mechanics For Space."— Presentation transcript:
UCSC Merrill College Cultural Center California – USA 29 th of November 2012 Open Lecture by Dr. Armen Papazian CEO of ISDHub Money Mechanics For Space
Last Words The fact that an opinion has been widely held is no evidence whatever that it is not utterly absurd... Bertrand Russell
We can't solve problems by using the same kind of thinking we used when we created them. Albert Einstein
THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE
Balance Sheet of Bank of England Issue Department, 2010 Source: Bank of England, Financial Statement 2009-2010 Debt Based Money Creation Assets (£m)Liabilities (£m) Securities of, or guaranteed by, British Government 5,679Notes issued50,220 Other Assets, Including those acquired under reverse repurchase agreements 44,541 Deposit with Banking Department26,655 Reverse repurchase agreements17,886 Total Assets50,220Total Liabilities50,220 Banking Department The State Issue Department Treasury Central Bank Government
US Federal Reserve Balance Sheet 2010: Selected items Source: Federal Reserve
Sovereign Debt Levels: A Selection of OECD Countries Source: OECD
Notes and Coins, GDP, and Money Stock M4 2010, in Billions of Source: Bank of England 08/2011 3.8% 2.5% BANKING SYSTEM
Money Digital: 0s & 1s Banknote: 75% Cotton and 25% Linen Debt and Credit Based Expands via banking system Co-Created by Central Bank and Government Digital: 0s & 1s Banknote: 75% Cotton and 25% Linen Debt and Credit Based Expands via banking system Co-Created by Central Bank and Government
Source: Bank of England, October 2012, Trends in Lending Bank Lending, Unemployment and Austerity: Recipe Outcome? + Austerity Measures
Sovereign Debt Crises and Austerity Measures A System Chasing Its Own Tale The Milky Way Andromeda Our True Context
Debt Based Monetary Architecture The features of the debt Instruments with which we back the creation of money, bind the species to calendar time. Rodent Economics
Challenges of Financing Space Exploration The value pillars of current finance theory and practice are risk and time, leaving space formally unrepresented. The cash flow expectations of space related projects and the magnitude of the risks involved are a challenge. Space needs a valuation principle that goes beyond time and risk. We need a Space Value of Money principle to reflect the expansive nature of the universe into our financial models.
Space Value of Money Time Value of Money Risk and Return Space Value of Money Space Value of Money is the aggregate net asset impact of cash flows, taking into account monetary as well as real socioeconomic and technological factors. Space Value of Money is a function of the nature of the assets it creates or utilizes, and the mode of utilization or creation. Mortal Investor Space Impact
Our Financial Imagination and Space We are the inventors of money, and our financial imagination is as key as our technological imagination when it comes to extending our reach into the cosmos. We owe ourselves healthy societies and healthy economies, and we owe it debt-free.
21 st Century Economics WEALTH Abundance Economics Vs Scarcity Economics
The Future is… wherever we choose, whenever we decide, whatever we invent… 2.5 Billion USD Space Value of Money!!
A New and Parallel Product For Money Creation PCNs can be used to inject new money through a logic of wealth creating public investments,rather than debt. Stimulating growth and innovation, PCNs allow the channeling of funds into real industry projects, adding value while creating new activity.
Public Capitalization Notes Real EstateInfrastructureCommoditiesLandEducationHealthcare Project Ownership Risk and Profit Sharing Income Creating Value Generating PUBLIC CAPITALIZATION NOTES To Finance Projects With Real Asset Creation Issues Sponsors Purchases Government Treasury Federal Reserve NASA
Public Capitalization Notes Engages BANKS Projects Managed with Commercial Rigor, Discipline, and Integrity PUBLIC CAPITALIZATION NOTES To Finance Projects With Real Asset Creation Issues Sponsors Purchases Government Treasury Federal Reserve PRIVATE ENTERPRISES PEOPLE & ASSETS NASA
Macro Benefits of PCN Employment Tax Revenues Investment Consumption Deposits Welfare Budget Capital Formation Corporate Revenues Banking Assets Real Impact Monetary Impact No Additional Debt No Reliance on Credit Maximize Space Value of Money Inflation? PCNs Transform the LOGIC of Money Creation
MBS vs. PCN Federal Reserve BANKS MBSPCN New DebtNew Deposits New Reserves Nothing prevents us, as the creators of money, from creating money via a diverse set of financial tools. New IncomeDebt Payments Assets (£m)Liabilities (£m) Securities of, or guaranteed by, British Government 5,679Notes issued50,220 Other Assets, Including those acquired under reverse repurchase agreements 44,541 Deposit with Banking Department26,655 Reverse repurchase agreements17,886 Total Assets50,220Total Liabilities50,220 01010101 01010101 01010101 SPENDING If money can be backed by a deposit in the other branch of the same bank, it sure can be backed by Public Capitalization notes that create income and stimulate the economy effectively.
40 Billion USD for NASA and the Space Industry this December! The Federal Reserve could invent the next monthly 40 billion USD via a PCN that allocates the funding to the space exploration industry through NASA, rather than to the banks via Mortgage Backed Securities. An ideal stimulus package that creates new projects, income, and revenues, while Advancing our technological and scientific reach. Strategically It is possible to allocate 2 Trillion USD through a PCN program over a 5 Year Period to unleash a technological big bang and build space infrastructure capabilities.
A Possible Platform for a Space PCN A green structure A business hub A hot spot for innovation A museum of the future A collaborative platform An outreach and education center An investment vehicle On the 6 th of June 2012, with the Transit of Venus, ISDHub JV submitted a proposal to NASA Ames to transform HANGAR ONE from a parking space into a space platform.
ISDHub at HANGAR ONE Economic Activity Industrial Growth Technological Innovation Scientific Breakthroughs Research & Development Silicon Valley Momentum California Economy US Economy World Economy World Culture Humanism
Space PCN Purpose and Benefits Public Private Partnerships International Agency Cooperation Private Enterprises Startups University Networks Research Programs Technological Experiments Innovations and Ideas Education Programs Space Anthropology Space Economics A Peaceful Humanity To support, enhance, expand To finance, plan, implement THE TWO INTERTWINED THEMES OF ISDHUB: SPACE DEVELOPMENT & PLANETARY SUSTAINABILITY
Breakthroughs in all aspects of Human Life Healthcare PCN Education PCN Climate Change PCN Solar Energy PCN Science PCN A NASA ISDHUB SPACE PCN would be the first experiment in a new form of public funding