“I don’t want a nation of thinkers, I want a nation of workers.”
John D. Rockefeller
Yes, we would all like a unicorn that every time it farts one hundred dollars bills would poof into the air.
The problem is not that corporations are avoiding paying taxes, of course they are, the IRS code allows this to a greater extent. The problem is that the people who own the corporations are the same people elected in congress, own/operate the financial institutions, or owe favors, and/or sit on the boards of these corporations.
You’ll never have transparency when the very company sitting at the top of the heap is ran by a group of people intent on running the country – common sense. I’m not including President Trump in this category.
To view any other way is ludicrous based on the decades of overwhelming data. To offer a revolutionary bend from socialist ideal to explain the common sense is as a mad communist barking dog.
Change can only come from elected officials signing away their rights to make money and earn a salary that is capped, which can only be raised a certain percentage once every four years.
This makes the job untenable for business men looking to get rich.
Making it a felony with a life sentence for any politician taking a bribe or kickback from a corporation will eliminate the lobbying.
This ideology will never happen, however, nor ridiculous progressive tax schemes, because that’s what it’s all about – schemes that can be controlled.
The senate will never sign away their rights to be supermen and impervious from law, as they and their buddies own the country you and I live in and answer to the likes of mid level banking pimps.
So how do we fix it?
French revolution style is the only way to fix it on America’s side. The Europeans are out of the game – they have had enough of revolutions – just kidding, the same rule applies.
Now Agenda 2030 is a ploy, a focused goal that has nothing to do with saving mankind; it’s a distraction for people like Donald and Martens to have a platform, have their voice heard, be part of a committee, human rights activists and all that jazz.
All the while the main goal is for a few families to dominate the market and keep their assets and family safe from the mob, it’s that simple.
Remain at the top of the heap, keep whats yours, eliminate the competition, and have guaranteed controls on society for maximal production and profit.
Redistribution of wealth is all great and fancy, but it also requires murder and mayhem – Donald and Martens won’t talk about that openly, maybe over a bottle of wine.
What are the numbers for the French Revolution, lets see:
- over 500,000 imprisoned
- tens of thousands beheaded
Of course there must be war and someone to rise up and take control – enter Napoleon and millions more dead.
The easy answer is there won’t be change, just another collapse of society as currently predicted by the major financial institutions, Nevi’im and our Adonai.
European bankers are liquidating assets and gold is being sucked up like cocaine in the 1980’s.
“When the desire to pursue physical capital increases, the incentive of physical capital accumulation becomes higher and causes higher investment in physical capital.
“This induces a larger fraction of human capital to be involved in output production and the long-run growth rate will decrease since a smaller fraction of human capital is devoted to human capital accumulation.”
“On the other hand, when the desire to pursue human capital increases, it strengthens the motivation of human capital accumulation. The long-run economic growth will increase because of a higher fraction of human capital devoted to human capital accumulation.”
Cheng Hun-Ju, Department of Economics, National Taiwan University: Social Status, Human Capital Formation and the Long-run Eects of Money, 2011
As the model suggest, focus on human capital accumulation has been the forefront of market investment.
Facebook, Twitter, Instagram, Snapchat, just a few social platforms where human capital is the business model regardless of any ‘spin’ on why the models work.
They work due to a mathematical equation and model theory that says they work and hence investors pump money.
Whereas, Amazon sells actual real commodities to consumers based on a growth model. Amazon makes a percentage off items sold and derives capital gain through server and cloud service.
Social media platforms have no durable goods to profit from, only smart people (human capital), advertising, infused investment, and consumption of competitive human capital models like a honey badger.
Facebook has acquired 80+ companies as a hungry beast attempting to swallow any competition that rears it’s ugly head.
Here’s a short list:
- WhatsApp – $16B
- Chai Labs – $10M
- FriendFeed – $47.5M
- Snaptu – $70M
- Instagram – $1B
- Face – $100M
- Parse – $85M
- Oculus VR – $2B
- LiveRail – $400+M
- Pebbles – $60M
- RedKik – $100M
- PlayGiga – $70M
“We have not once bought a company for the company. We buy companies to get excellent people…” Mark Zuckerberg
The above describes a “human capital accumulation model.”
It’s not rocket science how a company with very little profitability buys up every competitor that comes their way. The guys pulling the puppet strings want to insure their social monitoring company stays in business.
The human capital models were quickly propelled with vast financial investment by top financial firms and fast tracked into publicly traded status based off ZERO profitability. It’s all about who you know.
The human capital machines potential profitability is based on statements such as this,
“…long-run economic growth will increase because of a higher fraction of human capital.”
Is Zuckerberg that smart to take advantage of a moving trend or was the ultimate goal controlling the social media market by huge financial companies and government entity?
The latter makes sense, and at any rate, inevitable.
Controlling and monitoring human interaction, language, and social behavior is the end result – but is this hungry human capital beast machine profitable?
Yes from a stock perspective. YOU the Facebook user are the value of the company. Although you purchase nothing from Facebook, you are what determined the initial par value of stock for seed series and that is where all the money was made.
Lets take a look at some quotes from Zuckerberg:
“Figuring out what the next big trend is tells us what we should focus on.”
“When most people ask about a business growing, what they really mean is growing revenue, not just growing the number of people using a service. Traditional businesses would view people using your service that you don’t make money from as a cost.”
https://www.inc.com/kevin-daum/26-inspiring-quotes-from-facebook-mogul-mark-zuckerberg.html
“So, how do you sustain a business model in which users don’t pay for your service?” Sen. Hatch asked Mark Zuckerberg.
“Senator, we run ads,” replied a smirking Zuckerberg.
The exchange instantly caught fire on Twitter and the jokes started to roll in at Hatch’s expense.
Senator Hatch may not understand Facebook, but he does understand the difference between a company that produces profit and a company that doesn’t.
“Where does all that money come from?” asked Senator Hatch, “Advertising,” says Mark Zuckerberg.
Incorrect.
“Ads,” as Zuckerberg relayed to Senator Hatch and the small financial portion they generate thereof, came about much later, after the company was valued at billions based on the potential of global data monitoring.
Facebook cash flow stemmed from $500M revolving loans, stock frizzing, and financial companies/boards that run the banks and Wall Street which never run out of fiat.
Take a look at the trillion dollar financial entities that float Facebook stock, Edgar, and SEC 10-K filings and you’ll have your answer where the capital comes from – it certainly is not advertising.
The 10-k filing gives you an inkling of circulation. Advertising does not account for a $30B increase in working capital from 2014-2018; stock and “loans” account for this capital, which is circulated round and round, sans revenue growth.
Facebook is unique in that the human capital model did not exist during Senator Hatch’s upbringing. Think of the Army Star, or the Marines Eagle, Globe, and Anchor; these symbols represented human capital, a conglomerate of people united, working together for a specific cause.
There was no business entity that made money from people talking about what they had for breakfast, or taking pictures of themselves at the beach, and little Johnny cracking somebody in the nuts with a bat. The only entities that made money from human capital alone were illegal entities; the mob, pimps, money laundering companies etc..
The easy answer is, “Duh, ads you moron!” and of course the population laughs at the old Senators ignorance.
When in reality, the majority of the population has no idea about income generation from a publicly traded corporation, let alone a small business – they just pretend to know.
Senator Hatch has no idea how Facebook generated it’s income, because it wasn’t generated – it was made through stock series.
This also shows you how disconnected Senators are from reality.
Senator Hatch literally needs a “financial advisor” to explain to him how stock series and Edgar filings work in taking a company public in the financial world we live today, or maybe he was just pandering for the audience.
Thirty years ago Facebook would never be allowed to go public through the SEC as there was nothing to value the company besides someone providing collateral and loans, in essence, shoring up value as a facade of revenue, which was illegal to do.
Any company looking to openly trade stock publicly must show PROVEN, consistent, revenue generation through audited, monitored QTR’s to qualify for NASDAQ or NYSE.
This of course is to protect the buyer from purchasing inflated stock of which the financial backer can pull the rug out from under the company, liquidate it’s assets, and leave the stock holder holding the bag with the losses.
Forget all the penny stock stories, this is well known SOP since the 1930’s.
Today, the rules are flexible, depending on who is providing the financial facade.
In fact, Zuckerberg told a white lie to the Commerce and Judiciary Committee, not quite full on perjury, but not the truth either.
Of course Facebook did not generate it’s revenue from ads. Facebook lacked any consistent profitability to justify public trading. All of the money came from powerhouse investors and stock inflation.
Lets look at some investors shall we?
DST Global, a private Hong Kong financial services and VC company ran by Yuri Milner, a Russian billionaire, and Goldman Sachs having invested over $500M. It is reported DST held over 70 million shares of Facebook, valued well over $1B. DST also held a $200M stake in Twitter. DST claims they owned close to 10% of Facebook through holdings.
Why don’t you see this on CNN? Why doesn’t MSNBC talk about it? You won’t see this on Fox news either, why is that, I though they hated one another?
We do see a Democratic Guardian post to smear Jared Kushner and Trumps name https://www.theguardian.com/news/2017/nov/05/russia-funded-facebook-twitter-investments-kushner-investor talking about the stake, trying to link Trump and Kushner to Russian collusion, but no talk of collusion on part of Democrats, and Russia owning the largest social media outlet on the planet.
The propaganda reads:
“Institutions with close links to Kremlin financed stakes through investor in Trump son-in-law’s venture, leaked files reveal” by Jon Swaine and Luke Harding.
The article is comical on part of the Guardian, Mr. Swaine, and Mr. Harding.
Have some dignity will ya?
Rather than being first rate muppets for a political party. I wonder if they go home at night and the wife asks, “Hey honey how was your day,” and the response, “Oh, you know the same old stuff, this political party had their hand up my rear, and was making me talk into a microphone, same as usual.”
First off, this had nothing to do with Trump and it is reported that the DST stake in Facebook was sold off by 2014, but that’s not the point. The point of the matter is that the SEC allowed the purchasing by the top billionaire’s in Russia.
They allowed both Twitter and Facebook to be staked directly by Russian state owned business, which is normal operating procedure on Wall Street.
All the Russian collusion crap is political noise to cover their rears. The person shouting “villain!” the loudest is generally the guilty criminal. When in fact we do business with Russia all the time in the commercial investment markets, which is business as usual.
Where was the Guardian story then?
The reality to all this madness, is lies, lies, and more lies.
The SEC puts Martha Stewart in jail for $150,000 of insider trading, but Goldman Sachs can crash the economy and push a company to be publicly traded, never having made a profit for the purpose of controlling personal data.
“Investment banking giant Goldman Sachs (gs, +0.76%) has agreed to a list of “facts” in addition to paying $5.1 billion to settle a lawsuit related to its handling of mortgage-backed securities leading up to the 2007 financial crisis, the U.S. Department of Justice announced Monday.”
“Goldman Sachs is the fifth bank to reach a multi billion-dollar settlement with the Department of Justice in relation to subprime mortgages during the Great Recession. Other bank settlements include $13 billion with J.P. Morgan Chase; $16.6 billion with the Bank of America; $7 billion from Citigroup; and $3.2 billion from Morgan Stanley.”
http://fortune.com/2016/04/11/goldman-sachs-doj-settlement/
No one went to jail.
Lets move on,
Did our market move from corporations manufacturing a product towards only human capital structures like Facebook?
Absolutely not.
China replaced the United States as the top manufacturer. That’s not going to change, so the human capital move makes sense.
Service makes sense, lower universal wages (not higher wages) make sense, and material conglomeration under a dozen corporate owners makes sense in a non-manufacturing growth model; a limited manufacturing model with limited growth.
So the prediction for the future is more mergers and vying for material controls as more and more distributors fight for raw materials, and control of name brand goods to be sold to the U.S. market.
In essence human capital organizations like the Facebook model are stacked houses of cards.
If the human capital growth model translates into mass infusion of capital, which it does, there still must be a focused physical capital growth response, without the concurrent infusion of investment streams.
If the company cannot stand upon a profitable growth foundation, and only on infusion model, then the resources will eventually run dry and the model will collapse. Twitter is a grandiose example of this.
Investors know this, and they know they must keep feeding the shark, while looking for that next trend.
Billions of human interaction must translate beyond advertising dollars. Where then?
The only end scenario is infusion-capital circulation.
Consumers of human capital advertised product results in increased propaganda, corruption, and money schemes; fissures appear within the model, and a constant plugging of leaks lend to catastrophe.
Why is this?
Whether the entity ventures into accumulation of more human capital machines, which we see, real estate, R&D, to heighten it’s balance sheet, the end result is the same.
You can only merger so many financial institutions to keep feeding monetary value. There will always be competitors springing up to challenge the old, and without an actual commodity, investors will go liquid for the next best thing; again, a house of cards doomed to fall.
Language interaction models without back end physical consumption of durable goods (including software/data) can only lead to infusion-capital circulation, which breeds corruption, and criminality. The VC groups keep their portfolio’s going by finding the next trend, the next unicorn, like Amazon.
Facebook is not a unicorn, it’s a Trojan horse waiting to be broke up.
Capital circulation ALWAYS resort to corruptible patterns to remain viable. The result of capital circulation in a capital economy is corruptible patterns including any monetary technique which provides income at any cost.
A capital market demands profit.
Price fixing, insider trading, group money scams, political blackmail, lobbying interests, illegal ventures, junk bonds, terrorism funding, crime syndicates, and money laundering are but a short list of guaranteed results from infusion-capital circulation on part of a corporation.
The stock market demands profit and stability and circulating infused capital can do neither.
Q: What is an example of infused capital?
A: $500,000 loan.
Q: What if the loan was $2 Billion?
A: Instantly absorbed over a set burn rate and used for consuming more human capital.
Q: What if the company makes billions in ad revenue?
A: Temporary trend; Pay out dividends, buy more human capital to compete – rinse and repeat.
Sen. Hatch understands how a company stays in business, as he has plenty of years witnessing mega giants, like Enron, come and go. Young Zuckerberg has not learned that lesson…yet.
Moore’s Law has flat lined. The population has not.
Mergers will wipe out remaining competitors. Human capital companies will be dissected amongst network control.
Dear reader, a company like Facebook made it’s investors very wealthy in a short period of time through it’s seed series. The stock was inflated through hype, hundreds of millions pumped into the company to guarantee viability to the SEC through major financial institutions that circulate the entire financial market.
These guys inflated the value of the stock, inflated the value of the company in each round, and made hundreds of millions if not billions of dollars for those who flipped the company. DST reportedly made over $500M for their investment.
That’s smart investing.
If we enter a series A round at $1 par value and exit series D @ $150 par value, how do you justify value per revenue growth when the company hasn’t turned a profit yet?
Par value for social media companies is like bidding on Ebay.
It’s a new America we live in today.
At the end of the day the only thing holding these straw entities together is inflated value in an inflated market which circulates investment into a consuming frenzy.
Completely unsustainable, irresponsible, unethical with CAUSATION being that of gluttonous consumption like a feral honey badger for the company to remain viable in an ever changing marketplace.
The only thing learned since the housing collapse and 2007 was how to do it faster, smarter, and regulate better; more importantly merge together and buy more assets to shore up the next pump and dump.
Meanwhile, Google, Microsoft, and Amazon are busy building cloud structure and maximizing chip technology. https://www.technologyreview.com/s/601441/moores-law-is-dead-now-what/.
Human capital companies like Facebook will bow to the Server Cartel Network. Much like the OPEC Cartel who control oil, these mega server facilities along with manufacturers such as Intel owned Altera, will merge together and wipe out the competition. A new structure will diversify social media under an umbrella of controlled networks.
End result – more capital infusion to circulate in order to appear viable until dissected.
Conclusion: human capital models in today’s market are straw house entities. These entities are produced for the sole purpose of controlling social interaction, studying behavior, owning imagery, language, and manufacturing information such as propaganda.
In less than a decade, human capital models were forced into politically controlled structures. As the market shrinks and mergers continue for domination of the chip market, data will outweigh capacity of companies like Facebook shored up by outdated data centers easily penetrated.
The social media trend will not continue on par with stock market inclusion and these entity will cease to be trends as publicly traded models. New social media platforms will continue to be gobbled up by the publicly traded parent companies (revenue/loss), or they will be held by private LLC’s.
Pay attention to mergers of server network industries, mergers of chip manufacturers, for these entities will acquire and own the data of human capital and dissect these entities amongst the Server Cartel Network.
This new Server Cartel Network will compete for control of all global data and who controls the most talented human capital and chip technology will be the one leading the next market trend.
Global data requirements determine who controls the network and must acquiesce to their demands to survive. We see this clearly in Blockchain. Rapid chip construction moving the market and data farms vying for dominant control of the chain.
If anything Blockchain has glimpsed the future of data requirements and rapid deployment.
Movers & Shakers:
- Lakeside (Digital Reality Trust NYSE:DLR)
- Tulip
- SuperNAP
- Citadel
- Fabros
- Advania
- Range in China ran by IBM
- NSA Utah.
To cut to the chase, what do they want…?
It’s quite simple and logical if you do come to a conclusion. Some say it’s power, or thirst for control, yes perhaps, but if you already have uncountable wealth and resource and any desire you wish, then maybe it’s simple – it’s about family.
“The wolf on the hill, right, is not as hungry as the wolf climbing the hill.” “Thats true, he’s not as hungry, but when he wants the food it’s there.” Arnold Schwarzenegger
The French Revolution was a well learned lesson of what happens when the mob erupts en masse and storms your Bastille. The lesson, fear the mob, fear popular violence, and nationalism which takes away land and absorbs wealth.
France in ruins, lead to the establishment of paper bills called ‘assignat’, creation of hyper inflation, and then the collapse of assignat. The same holds true for the U.S. dollar, and there isn’t anything anyone can do to stop it.
All that can happen is to switch to a new form of currency, or credits issued on plastic (debit cards). Turn in your check at the bank, amount is put on your debit card – no cash.
Bank accounts are a blip on a computer screen backed by air and a server.
Paper is futility, a short term band-aid, and will cease.
Only circulation of value can keep the engine turning, the blood flowing. The French and Bankers of the world found this out by the 1790’s. This is but one example out of centuries of lesson learned by the haves, not the have nots – the kings court and nobles – not the peasants.
It’s all about protecting your family from the mob and in order to do that you must control what the mob thinks, how it works, how it lives, and make darn sure it doesn’t run out of food or sustenance.
The mob must have just enough to get by, just enough to stay viable. Too little leads to killing, burning, and revolution; too much for the peasants leads to competition, organization, uncontrolled laws and criminal proceedings.
It’s a fine line when examining human capital accumulation.
