Funny Money? Funny Jobs?

Posted on Updated on

My most recent post, hinted at the technological revolution that is just underway, as the digital revolution enters phase two.

I talked about how mainframes were superceded by mini-computers for medium sized businesses and universities, and at how that begat their widespread adoption which led acadamic institutions to seek to share their intellectual resources via the research network – Arpanet. This followed on from the former Darpanet, which was supposed to be a way for the U.S. military to communicate, if in the event of a nuclear attack many of their telecommunications systems were wiped out. That was the start of Phase 1.

The network settled on TCP/IP as the protocol – Transmission Control Protocol/Internet Protocol which is where we get our IP addresses from. (and the NSA knows where we are and monitors our communications – but that’s another story)

Anyway, as this revolution is throwing up some prospects for making money, the other side of the coin is that many jobs that have existed for many years, may be about to be wiped out. If your employment is in one of these industries, or sectors then perhaps it’s time to consider the alternatives…

BUT, where to start?

The starting place is “Funny money”… That’s what many people call money they’re not sure about. Monopoly money. Money that doesn’t feel right.

Well, when the Central Bank uses “Quantitative Easing”, which is a euphemism, for creating new money, to lend to the big core banks of the banking system.  In essence these Banks, they’re supposed to lend that money to other institutions and/or government (via Bond purchases), and businesses then the economy will grow – so goes the thesis.

And of course, the Central Bank to end all Central Banks – The Federal Reserve, with its un-backed currency – can effectively be the lender of last resort to half the known world. via its tentacles – the BIS (The Bank for International Settlements) and the IMF (The International Monetary Fund) which is part of the World Bank.

Now when the Central Bank prints money out of thin air so to speak… that’s fine, but when a businessman prints, or copies this fictional money (Fiat money, or money by Diktat) then the central authorities get nervous. Of course you can’t copy or print Gold or Silver – well, not really, (except by creating derivatives) which is why the Bankers and the politicians in their pockets don’t like it – but I digress.

In the Huffington Post and AOL this morning, it was reported that two Asian Businessmen – brothers – took the Xmas break in 2012, to print up £1.27 million of their own. They and two others, got upto seven years in prison, in their final hearing in December last.

Different rules for different people springs to mind? And don’t get me started on JP Morgan’s affairs, it seems their fingerprints have been over almost every financial scandal of the last ten years, including the Bernie Madoff affair, but we’ll save that for another day.

No, this technological revolution including currency revolution is gathering pace. In France I heard yesterday, that up to 20 new local currencies have been created and are circulating in localities, as people seek to stop their money from leaking out into the wider economy, to protect their own jobs and the village or town they live in. The free market strikes again…

These local currencies are also appearing in the USA, where across several states, local currencies are appearing. If we add in the 80 (or so I hear) crypto-currencies, the most widely known ones being Bitcoin, and Lite-coin, it appears the Bankers are going to have a real problem going forward as alternatives to their FIAT money systems abound.

What is making it worse we learn is that their traditional business of “Lending” is also under attack too, as the Internet now allows depositors with money to save or salt away – you choose your perspective – can now lend direct to borrowers through “Peer to Peer” lending web-sites, and crowd-funding. Even business finance I learned yesterday can be got on-line via financing web-sites. if we add in the ETFs, which use savers money to invest in the largest corporations, and in the UK, Investment and Unit Trusts, then the world is awash with alternatives to the old system of Bankers collecting savers cash, and using it to invest in the economy.

If the internet has changed anything, it is that geography is not the restriction that it once was, but that this will have a dramatic effect on our whole society. (But we also need to be aware of moves to restrict free access)

Anyone who has been down one of Britain’s High Streets recently, cannot have failed to notice how that has changed in the last 5+ years, as new under cover Malls sprang up during the boom years, and stores on the uncovered main streets now remain empty – with boarded up windows to protect them, and advertising, suggesting that sometime soon, some wonderful event is about to happen.

But it got me thinking, if this technological revolution is affecting Britain’s HIgh Streets as more of us shop on-line, and Britain’s Banks as more of us find alternatives to the currency, what will happen when Google manages to perfect its driverless car?

A report I saw over the week-end suggested it wil be perfected and regulated within the next five to ten years. So, if we have driverless cars, will we need driving licences? And if not? Do we need Driving Schools? So if you are BSM, AA-Driving School, or any one of the thousands of small businessmen and women who run a driving school from home, then this revolution is not going to leave much by way of business, and thus employment.

So if there are fewer and fewer jobs… Are we about to return to pre-industrial revoluton days, where we all operate a small-holding and the modern equivalent of a spinning-wheel in our kitchen with a 3d-printing press, churning out our own stuff, which we buy as raw materials and exchange these with our neighbours?

And if so? What about those who don’t have these devices, or can’t afford the raw materials? What if you are one of the thousands of people whose job it is to regulate industry, push paper and electronic digits around, write e-mails to other departments, and generally keep tabs on the productive sector of the economy, such as the IRS or HMRC?

Under the previous administration, this army of beauraucrats grew to over 40% of the economy. That means that for every pound earned by the private sector, over 40pence went to pay for people who merely watch what other people do in some way shape or form, and make sure they comply with someone else’s vision of what is right and proper. Even the military are increasingly being used to resolve disputes between neighbours – even if the neighbours happen to be Muslim and Christian, or Muslim and Jew, or even different versions of Islam.

Will the technological revolution therefore mean these people will have to find alternative work? And if so What?

The skills to manage a small business are manifold. As a former Business Studies Lecturer, I thought I knew it all (or most of it anyway), but after leaving the confined spaces of academia, I learned that in the real world, you have to be constantly looking at the horizon to see where the next threat is looming to your current business model, and to many small businesses, wrapped up in the day-to-day business of running their business, it is hard to find the time to stay one step ahead.

It therefore, suggests we’re all going to have to think differently about our money, employment and investment. Investing in ourselves, in our knowledge and in other prospective businesses.

Robert Kiyosaki famously currently promotes self improvement through Network Marketing, though ten years ago, I saw a report that predicted the death of Network Marketing, and which, I’ll make available free in a future missive. BUT Affiliate Marketing, which is the on-line equivalent, perhaps holds greater promise. And as for investing? Well until such time as we can manufacture Gold, or Silver, these precious metals, the real stuff, that has been the preserver of wealth for 50 centuries, will have to do.

And given the amount of QE that has been pumped into the system these last six years, the value of raw materials is rising inexorably, and one day soon, that will have to show up in the inflation numbers. As much as the inflation figures and for that matter the jobless numbers have been massaged since the last great financial crisis in the 1970s,, has tried to show the real figures and paints a very different picture.

On, the current  inflation rate as calculated back in the 1970s is 8.5% in the U.S., rather than the 2.0% we learn that the U.S and Britain is currently experiencing. And the U.S. jobless rate, recently reported as down to 6.7% is actually over 20% and rising, if calculated as it was in the 70s. Are we to assume Britain is so different from the U.S.? RT this morning suggested that corporations are minimizing price rises, by reducing pack sizes to avoid price hikes. But this can’t go on forever…

Of course, the Black (or grey) economy will undoubtedly add to the real economy, but always fails to show up in the government’s books. Is this perhaps one of the few – Growth markets?

For those interested in investing in 3-D printing, and those who will take advantage of the technology, and even 4-D printing – (a subject for a future post perhaps) they should check out the activites of the following:

Autodesk Incorporated, – ADSK:US

Hewlett Pacquard – HPQ:US

ExOne Corporation – XONE:US

Organovo Holdings Incorporated – ONVO:US

Stratasys Ltd – SSYS:US

3-D Systems – DDD:US

Thermo Fisher Scientific Inc. – TMO:US

General Electric – GE:US

Dassault Systèmes – DASTY:US

It seems our changing technology, will make fortunes for some… Of course the usual rules apply – these are not recommendations, but merely for educational purposes, and further research – as you might often see – DYOR – (Do You Own Research.)

And if you’re even thinking about finding an alternative to that job, that might disappear down the road, there’s dozens of simple, low-cost or almost FREE ways to get started.

Six Degrees of Separation?  They say that we are just 6 people away from anyone on the planet. Be that:  Hugo Salinas-Price, Al Gore, David Cameron, Barack Obama, Wen Xiao Bo, Warren Buffett, Bill Gates, Richard Branson or Angela Merkel. You might have a brother or sister, cousin or Aunt, involved in local politics, who met a senior politician, who met one of the above during a political rally, who knows all the others…

“It’s not what you know, it’s WHO you know” – How many times have you heard that?  Well, your network of contacts knows someone, who knows someone, who knows someone… Who might just know one of the above, and building a network, whether via Social Media, or via an Affiliate Marketing network, the sooner you get started, the better.

Here’s an invite to get started NOW!