It’s Up to Me, So “Count Me In”

adolescence-attractive-beautiful-573299(1)Its up to you (or me).                          

No one else.

Even if they call you crazy.
Even if they threaten you.
Even if you might be wrong, its up to you to create your future!

As the legendary “Think Different” Apple ad, said…

“Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently. They’re not fond of rules. And they have no respect for the status quo.
You can quote them, disagree with them, glorify or vilify them. About the only thing you can’t do is ignore them. Because they change things.
They push the human race forward. And while some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do.
Attributed to Rob Siltanen and Apple Computers, 1997

We have thought leaders would help us out of our problems for millenia.   But, have they?
We get excited following a leader who tells us to do one thing or another, but does it help?
We elect representatives to speak for us in public office, but do they serve us or themselves?
Civilization has certainly advanced, but are the “have-nots” living better?

We think we know the answers to problems, but are taught to keep our opinions and most of our actions to the privacy of our home, and to certain public spaces where we are among “trusted” friends and acquaintances.  But has this worked?  Has this helped humanity build a better future for all? Or for just a few?

Modern Management invented a tool for organizations that have to handle a lot of change, much as we do now: complexity leadership, in which each member of an organization can assume different leadership roles according to the needs for that moment.  In many ways this emans that each member of the organization is prepared to step in at any given moment and do what he or she does best, with total support from the organization (one interesting article on this development can be read at https://digitalcommons.unl.edu/leadershipfacpub/18/).

Not surprisingly to me,  this fits in perfectly with what Life Coaches and Ontological Coaches (of which I am one) have been teaching for the last few decades:  that you, specifically, create your future with your thoughts, words and  actions.  Or, to rephrase this, that I create my future through my thoughts, words and actions.   Many religions and “New Age” paths speak of this creative aspect of humans and in the Twentieth Century US many successful individuals, including Wallace Wattles, Napoleon Hill documented and publicized this new way of living, and later research done by neuroscientists and the “crazy people” who developed “unproven” tools such as NeuroLinguistic Programming, Cybernetics, “The Law of Attraction” (and more) keep on proving that somehow we can definitely create new futures.  And, since the 15th Century Renaissance different political and social movements proposed radical changes in traditional ways of working and governing the people, including the labor unions that wanted a fairer world for workers, the freedom fighters who advocated radical social changes, and that even introduced democracy and modern concepts of civil and human rights to the Earth.  Yet until now, very few human organizations have dared to move outside of the traditional hierarchical leadership model, preferring to simply take the place and prerrogatives of former rulers when change is successful. Yet this has meant that we still have a global situation where a few decide for everyone else, and whole sections of society are considered useless by the few who govern.  But the people are never useless: they might be unused and might simply have been taught to be incapable of running even their own lives, following the rules for children that are supposed to be “seen and not heard” and totally unproductive until that date when the law said we were “of age” and had to take charge of their responsibilities. Under that model usually only the rich and powerful ensured their children were trained to become rich and powerful themselves in adulthood, though this belief is slowly changing thanks to social media, the Internet, and global public education for all.

Yet, at your level and mine, changing this situation isn’t that difficult.   All you and I need to do is say “Count me in!” and start preparing and training for the leadership role we will assume as we create a better future for yourself and others.  How does this work?  Well, a leader simply helps others get to where they want to go.   Sadly, many people only want a “job” or “income” where someone else tells them what to do.  And we have leaders for that.  LOTS of leaders who will give the job-seeker a low paying job, or other similar so called opportunity to be unhappy just like millions of other individuals are looking for.

Are you keeping low and hiding from what you fear?   You are counting yourself OUT!
Are you a follower without assuming personal responsibility?  Then you are counting yourself UNDER.
Are you doing your best to control others and everything, to be the Boss? To judge what is right and wrong with respect to other people? Then you are counting yourself OVER.
Or, do you feel that you are happy following a leader you did not choose?  You could be counting yourself BEHIND.

My suggestion is that you assume responsibility for yourself, the ones you love, your future and your decisions, so you can count yourself IN.
Why?   Because it is your life, just as my life is mine.

Mind you, as an elected official in my community,  I am there to help others become leaders. And as a writer, scholar and coach, I help others create a better future.  But I can’t do everything:   I, and you, can only do what we can do, and we just have to do it to the best of our ability.

As for the question of where to count yourself in, its your decision.  If you like to be among saints, you just have to own up to your decisions and its consequences and sacrifices. If you like to be among criminals (and I sincerely hope not), you just have to own up to your decision and its consequences and results.    Just remember that whatever you decide is always going to be your responsibility anyway, so why not decide to create the future you want?   Is it crazy to think you can lead a better life?

Maybe its crazy, but I can tell you that being a slave of any type is simply insane, and as far as I can tell being happy, satisfied and successful is simply up to me.

Manny Perez, MPA, CAMS, Master Coach    www.coachhispano.org

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A Quien Agradeces por tu Exito?

https://www.podbean.com/media/share/pb-c8saq-92b4c8

Tomado de mi Facebook Live, en www.facebook.com/coachhispano, estos son podcasts cortos que cubren distintos topicos de interes.

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Early Tremors of the Space Renaissance

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In attention to the multiple changes occurring in all areas of human endeavor, Space Renaissance USA, a group dedicated to promoting US leadership of civilian space development, wishes to point out that pressure is building within Earth’s planetary bounds and that restricting civilian space development could lead to greater consequences than those of the predicted Dutch Disease and gravity well isolation issues that we of Space Renaissance USA have previously presented.

Briefly, we will refer to Dr. Peter Diamandis’ (Founder and Executive Chairman of the XPRIZE Foundation) predictions and observations on the progressive lowering of costs of basic necessities that will lead to the demonetization of most human necessities.  You can see the video here:  https://youtu.be/3cXPWyP0BBs. He implies that within the next few decades it will be relatively more expensive to charge for some services than it is to provide them, and he waxes poetic on the opportunities for humanity to transform itself, to redesign itself without the concern of basic survival and the need to work for a living.  In fact, he suggests that creative work will be the most critical in the coming decades, as humanity develops more and new ways to interact with its environment.

 

Sadly, the leading world powers who wish to maintain dominance and centralized control as their path to greatness are falling behind. They are mighty in the military prowess field, but not in the renaissance or disruptive technologies that are transforming the world.  It is the disruptors of the global economy, the innovators that have migrated from places where they were not allowed to be creative, to develop their innovations, who are decentralizing human advancement and using the tools of participative governance and global markets to develop their ever-cheaper alternatives to traditional services and products.  Many countries are quietly supporting this “brain drain”, this movement of intelligent innovators from their place of birth to a place that will allow them broad success, as former world migration magnets lose their attractiveness for the geniuses among us.

 

So, what are some of Dr. Diamandis’ suggestions?

First of all, hydrocarbons and coal industries are in for major changes as clean solar power gradually replaces traditional energy systems.  We could imagine that the first place this will take place is in locations that have suffered major natural disasters that destroyed existing distribution networks, grids and systems.

Second of  all, robotics and AI will continue to replace certain traditional job markets, making union-busting moot, cruel and foolish since unions could be instrumental in transforming old tech workers into new tech employees.

Additive Manufacturing (including nanobot and 3D printing processes) can already create complete houses in a matter of hours, and at low cost, which will impact on the construction industry and construction materials markets, such as steel and concrete.  He made no mention of transition technologies where the old and new construction methodologies leverage each other to meet market needs and interests.

Space X initiatives are demonstrating that traditional limits to our technology are simply not absolute and disruptive innovators are already creating new opportunities for human endeavor.

Yet, as he points out, there are risks to individuals in this global and human process:  many individuals could find themselves worse off, much as buggy whip makers and their employees did after the advent of the Model T automobiles.

The Dutch Disease could arise in unprepared countries as a result of these new technologies, and protectionism is not the answer because the affected industries will be draining their nation’s wealth every day they refuse to adapt and work with the new realities.  Adam Smith was quite clear in considering that a Nation’s wealth is not measured just by monetary values, but that it requires looking at all the elements of life quality and resources the populace has at its call and beckon.  So our suggestion is simply that all organizations begin to think about change and how to navigate towards their desired goals working with change and not trying to block or escape from it.

The 21st Century is already characterized by national polarizations around truly difficult issues such as global migration, class and wealth divisions, diversity and inclusion, and the empowerment of previously excluded segments of society, to mention a few.  This is nothing compared to the threats of a demonetized society as described by Dr. Diamandis and envisioned if we simply project societal developments since the 15th Century Renaissance to today:  greater individual freedoms, intellectual advancement, industrial and economic capacity, and more show no signs of stopping, and feudal, authoritarian and centralized structures continue to lose ground to decentralization, participation and individual freedoms.  These and not “Dutch Disease” or other economic risks, are the true challenges to humanity because far too many individuals are enamored of the past and want to return to outhouses and oil lamps instead of embracing the benefits of the future.

Manny Perez, MPA,

President of Space Renaissance USA  and founder of Coach Hispano Inc.
Crypto and Digitized Currency Advisor at the new CRYPSA and Author of “CASH IN” and developer of the concept of monetary ecosystems.

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Turning a Lost Cause into a Phoenix

phoenix 1My focus today is on organizations that are dying, that seem lost causes and that honestly seem to be a waste of time for their leaders.  From the point of view of the different theories of group coaching and personal success, it seems as if the organization has lost its will to live, its excitement, and its direction yet leadership has done all it can do, or imagine, to save the organization, and becomes desperate to find a way to revive it.

In some cases, a new leader is brought in to no avail, much like the individual who buys a new car because of tardiness getting to work.  In other cases, an investor might buy the organization and take it apart for the elements and people that seem to be productive.   In other cases, the Board might just give up the pretense of keeping the organization alive, especially when only one member of that board is the one still working to keep things going.

In truth, my experience is that reviving an organization is an act of courage.  The mere idea of throwing out the old ways of doing things that evidently killed the organization and possibly abandoning investments in money , time, and emotional commitments that were not able to give the desired results often makes matters worse because members and leaders fall into a rut of routine actions that prove they are doing the best.  It takes courage to think of whether or not you are doing the best, and it takes even more courage to take corrective action when you conclude you are doing badly.

It all starts and ends with the dream, vision and purpose the organization was born to fulfill.  If the dream is one that motivates others, the organization is born, and if the leadership, vision and purpose are aligned with the dream, the organization will grow.  But when changes in the environment, membership or leadership push the organization if a different direction, the organization can suffer and deteriorate, much as the healthy athlete turned office worker faces the danger of losing muscle mass, becoming overweight and becoming ill over time.

It is common for members to blame leadership for these problems, but this is short sighted: the organization needs everyone’s participation for the dream to become a reality.  The focus needs to be on the future, and it is a rare individual that can lead the transformation from a lost cause to a Phoenix without the active support and participation of the organization’s members.  In fact, this can actually generate resentment among those members that don’t want or are afraid of any changes in the status quo.  “Change Management” is a specialty that must be addressed during the transformation.

So, without laying blame to anyone, what is needed for such a transformation?

First, just as in personal development for individuals who want to reach success, old paradigms and limiting beliefs must be cleared out to allow the dream, the vision and the purpose to take their rightful place in the future of the organization.  The organization must go through the cleansing fire of change to burn off what doesn’t help and leave only that which works and which is its essence much as if a new owner were taking it over and cleaning our all the dross and nonworking parts and people.

This means a “lean and mean leadership team” is needed, to do what needs to be done in the present conditions and environment, quickly and effectively, learning from mistakes and taking chances for success.  Internal politics might require some flexibility with what are often called sacred cows, but even the sacred cows must understand that radical change is needed and the “lean mean” leadership needs to be able to face off with these sacred cows successfully.

Why “lean”?   To stay focused on the dream and a single strategy for success.

Why “mean”? Because even though compassion has its place and is necessary for team building, the Phoenix must rise out of the ashes of what did not and does not work.  Many individual stakeholders in the organization will need to face tough decisions and clear options from leaders if the transformation is to be effective.

Internal politics in mature organizations is common, and is often part of the problem that is destroying the organization.  Many individuals look for short term gains that are contrary to the vision and purpose and anathema to the dream, but they often use impeccable logic to justify their intent.   I really don’t know if they are right or wrong, but in many cases such “principled divergent views” have broken organizations apart and led to the demise of the original dream.   The Phoenix might be one part of the old organization, but it takes courage look beyond the confrontation and work solely on using the vision and purpose for determining the future.

Another key element is to bring in new members who can identify with the dream, vision and mission and can support the series of trials to find new ways to meet the organization’s goals.  These new members can also become leaders in their own right and their own niches, as the organization transforms itself. And, during this process the lean mean leadership team must also care for the old timers, the core believers in the dream that gave rise to the old-new Phoenix.

One of the advantages of a Lean Mean Leadership Team is that it is small and must delegate in new leaders some of the activities that will be undertaken, especially those that are totally new to the group.  And they can do it without creating positions for people that don’t do any work.

In my work on Volunteering, I always remind people that volunteers do only what they want to do, and many organizations forget that members are usually paying for the right to participate, and to get them to do more the leaders need to offer those paying members the opportunity to do more of what they want to do.  In effect, anyone who leads a membership organization is there to serve the membership, which strengthens internal cohesion and recruitment efforts.

And lastly, I want to remind the organization members and leaders that if you continue doing what you did before, you will surely get the same results that you have been getting.  The transformation of an organization is not just a change in leadership accompanied by a press release: tangible actions and reaffirmations of the dream, the vision and purpose are needed to rekindle the fire, the enthusiasm of members for their organization and its activities.

Having worked on restoring and transforming more than one lost cause, I know it is possible even though sometimes the internal politics are so very vile that the Phoenix dies as it is being born.  This is a real danger if existing leaders have reasons to desire to keep things as they were, but I still believe it is still worth making the effort if you believe in the dream and the future, if you are willing to face off against the self-destructive forces.  For this reason I hope all of you have benefited from these brief statements and remind you that my services are available if you want to undertake one of the greatest challenges a leader can ever have.

Manny Perez, Jan 14, 2018

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What? Success requires Discipline?

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This might sound like a no-brainer, but I have met many adults, parents and students in the US who don’t seem to understand what discipline actually means, and why we need it to be truly successful.

In much of my work I emphasize the steps needed for each of us to become a successful leader.  And though some people are afraid of being leaders, but they forget that they don’t have to be meeting people for those other people to say “I want to follow that example”, so please do accept that when you achieve success you will be a leader, for yourself, for friends and family, and/or for those that hear or read about you.   Discipline is a key element for lasting success, and so is also a key element for lasting leadership.

For the record, I don’t see winning the lottery as a great success, except if you are using the lottery to fuel and build something larger.  Luck is nice, but true Success is reaching your goals and knowing that you can do it again if you have to.   That is where discipline comes in: discipline is the ability to do what you plannet to do, what you committed to do, and what you need to do to reach your goals.  Lack of discipline, on the other hand means that you are easily made a victim of other people’s decisions, since you do not know how to follow through your own objectives.

Discipline might not really fun at the beginning, because it is much easier to do what your friends want to do rather than do what you need to do.  So there are children (young and old) who will put aside work or chores every time they can in order to play or distract themselves, though they later pay the consequences.  In my case, the consequences were pretty serious since my parents were very strict, so I learned to do my chores and do my work first, and then have fun while others were rushing to finish up homework, chores or whatever.   Books taught me to be grateful for what I had and to plan for achieving more, and I studied to learn new skills and ways of solving problems, testing different strategies for success since my success – and yours- is not necessarily that of our family or friends.   Many of us quickly learn that family and friends often criticize our reading and working to achieve our goals, instead of enjoying their company and games.    Well, for the record, my Facebook page is proof at all the fun I have and how many fun people I know, of all ages!   Discipline lets me have it all!

Discipline involves planning what you are going to do in the day, and doing it (following through).  And, when surprises come up, or when you have an emergency, you can turn to your “Plan B” alternative to follow, and discipline lets you continue to work on your success!

This leads to the next important step in discipline:  if it isn’t part of your plan, your goals, then you are simply following orders or instructions, and it isn’t true discipline.  Oh, many parents and authorities will insist on  “discipline”, and will “discipline” the errant individual, which actually means punishing the person, but they see discipline as the ability to follow orders or instructions, and not the ability to do what  has been planned and agreed to.   In fact, self-motivation, initiative, and persistence are true components of discipline, while mindless obedience is simply a sign of a victim mentality, where decisions are not self-determined. 

Each goal requires its own discipline, habits and skills.

So, which is the discipline that leads us to success?  In general, it is simply the practice of those decisions, skills and actions that move us closer to our goals and to becoming the person we want to become.   If we want to be a sports practitioner, our discipline will include daily exercises and working with a coach that can help us improve our game or abilities.  If we want to be great physicists, we have to study every day and learn how that science is evolving as we achieve mastery.  If we want to be great parents, we have to learn the skills needed to raise a child effectively and to build the community that will support the child as it develops.   So each life purpose and goal has its related discipline, and it is up to us to discover it.

In my case, though I am trained in various professions, as a professional coach, I focus on listening to the person’s desires and basic beliefs so I may ask appropriate questions that may lead to their finding great answers, action plans, and opportunities.  That discipline means I won’t interrupt the person with advice or information, instructions or conclusions about what the person is saying.   As an expert consultant or when I manage an organization, I don’t listen as much and focus more on getting the data needed to make a good decision.

So, is discipline necessary for success?  Most definitely yes, unless you measure success in a superficial and fleeting manner.  Finding the correct discipline is critical, and I do suggest studying and consulting with people who have already reached the goals you are striving for, so that you may choose intelligently.   Are there basic disciplines that most successful leaders follow?  Yes, and they include starting the day early, taking care of their body,  reading and studing, and making informed decisions.  Please note that there are no negatives or “forbidden” concepts in the few suggestions I listed:  Your life, and your success and your disciplines are a product of your decisions.   So choose wisely, so we may celebrate your success!

Manny Perez, MPA, CAMS, Professional Coach dedicated to Success

 

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2 dangers/opportunities  posed by a
space-age economy.

Christopher Werbos, Space Renaissance USA Intern, Economics Student
Approved by Space Renaissance USA

Gravity Well Isolation1Civilian development of space carries with it a plethora of benefits. Space solar power and moon-based resources may make energy, rare earths, and heavy metals extremely abundant within the next few decades. Properly managed, these resources may help to kickstart an economic boom the likes of which the world has never seen before. And all nations with access to these resources and technological advances will be able to benefit. However, several problems within our present economic structure may cause this change to be negative overall for an extremely large amount of people around the world: The huge economic threats of what is referred to as “Dutch Disease” – the overspecialization of a nation’s economy- and that of “Gravity Well Isolation” which excludes the nation’s economy from the benefits and interactions of regions beyond our atmosphere.

In the case of Dutch Disease, when a nation becomes overspecialized, they almost inevitably fall into recession when the good they have specialized in sees a price downturn. Space-sourced resources pose this threat, the threat of Dutch Disease, to a plethora of nations: from the developing world in Africa, to the rich nations of OPEC, to the most worrying example of Russia. Space is unique from other supply shocks that have affected nations with Dutch Disease in the past due to the sheer volume of resources which will soon become accessible. So, instead of making certain industries obsolete, as past shocks have, civilian space development poses the threat of making entire countries obsolete on the global goods market. If this were allowed to proceed unchecked, it would likely result in massive unemployment and the deterioration of world security and worldwide diplomatic relations.

The first and most apparent threat posed by Dutch Disease is, in and of itself, an economic one: the potential for widespread unemployment in industries that will be facing competition from space-based resource extraction. Asteroid mining in particular has the potential to add trillions of dollars’ worth of minerals to the economy.  For example, let us look at Cobalt, which is rapidly becoming one of the most essential minerals for its key role in consumer electronics and car batteries.  Asteroid mining is hardly good news for nations such as the Democratic Republic of the Congo (DRC), which presently provides 60% of the world’s cobalt, and 90% of the economic behemoth of China’s cobalt needs. While the quasi-legal nature of extraction operations within the DRC do not permit us to acquire accurate figures as to the percentage of the Congolese GDP that such operations represent, we would be well-advised to assume it comprises a massive percentage thereof. Extensive space development could easily dethrone the DRC from its role in the world supply chain, and weaken their economy dramatically. Moving further along with this analysis, mining operations in the DRC are well-documented as being labor-intensive endeavors, which adds the possibility of massive unemployment to the DRC’s problems unless they diversify their productive economy in the near future. This threat remains constant across the mining industry in the developing world, for most African countries have experienced what UN research has referred to as “a mining boom” in the production of metals such as Copper, Gold, and the Platinum-group metals. All of these metals have been identified as relatively plentiful within asteroids, and speculation around space mining has involved them heavily. Obtaining massive quantities of space-based substitutes for these materials has the potential to cause massive economic harm to the entirety of Africa’s mineral industry, presently the largest in the world. However, space-based resources extend beyond minerals and rare earths.  The potential of Space Solar Power and moon-sourced Helium-3 is also extremely high, and it may cause similar economic shocks to nations such as those of OPEC and the Russian Federation. Ultimately, many of the resources that space would make abundant are those that critical regions of the world rely on to remain scarce – and expensive. Ignoring the disruptiveness of space in this regard would undoubtedly spell economic disaster for much of the world.

As with nearly every massive economic disruption, this also carries with it the potential for disrupting the world’s security situation and balance of power. Many of the nations that stand the most to lose from the economic development of space are also relatively unstable, and already add an amount of volatility to the security situation around the world. The history of Africa is rife with relevant conflicts, especially in the context of the mineral industry (for example, the DRC is still experiencing echoes of the first and second Congo wars, wherein militia forces use cobalt and other minerals to fund their anti-government wars). Many similar conflicts can be found throughout the continent, and though the conflicts seem to be stabilizing, a significant recession brought on by falling mineral prices could aggravate them. Unemployment and poor economic circumstances have been established as being linked with social unrest and rebellions. Thus, social unrest and rebellions could become another consequence of engaging in space development without sufficient foresight and preparation. However, the security consequences of the aforementioned economic risks extend beyond the developing world and beyond insurgencies in general: for an example of these other risks, one must look no further than the Russian Federation, which has engaged in a series of normally questionable geopolitical moves in response to a prolonged economic downturn. When considering the industries that could be threatened by space development, it would seem that Russia is at further risk of GDP shrinkage and unemployment than we would expect. Allowing these space developments to proceed unchecked allows for a greater chance that the Kremlin may go forward with additional geopolitical gambits that could serve to threaten world peace. A quick analysis points out that stabilizing Russia’s actions and relations with the west is mutually exclusive with the risk of further degradation of their economy, which careless development of space may bring about.

Further examples of security situations at risk of economic downturns due to space-induced supply shocks abound: from radical Islamists in mining-reliant Southeast Asia and the energy-rich Arab world, to South American oil producing nations. In any case, we must recognize the potential for space based industries to disrupt the world’s economy and security, making foresight and economic planning of paramount importance for every nation.

The risk Dutch Disease is something that every nation, and the world community, can mitigate through adequate planning and preventive actions, as we will mention further along in this article.  But what can be done about “Gravity Well Isolation”?   Gravity Well Isolation has great economic impact on those countries that would end up being excluded from the socio-economic and military benefits of space-based technologies and resources. This can be evidenced in the importance countries are giving satellite communications and their ability to control their own nation’s information channels, among other elements.  Low cost orbital access for small satellites is already allowing different communities to launch their own communications, weather and observation satellites, with multiple benefits for all.  And some satellites are being used for researching and testing new technologies, too.

As in all eras, we must realize that the world security situation is inextricably linked with the diplomatic situation. Extensive economic development of space is likely to be led by the United States, Europe, and China. Diplomatic ties between these nations and those most likely to be harmed by space development have been of paramount importance for a considerable period of time, and it seems the west is only capable of holding a tentative peace together in the middle east through the support of its regional partners.  It is easy to conclude that one should dread what a downturn in Russo-US relations may herald in Eastern Europe. These diplomatic ties may well be harmed by economic space development conducted with apathy towards the economies of nations at risk.

Gravity Well Isolation0History tells us that countries respond with hostility towards those that they perceive as causing them economic harm, so if the United States, Europe, and China are to maintain their efforts to create a peaceful and prosperous order in the Middle East and Africa, it would be in the spacefaring nation’s interests to encourage this perception among politicians and governments within the developing world and other nations at risk. Failing to do so, or causing a negative diplomatic perception of spacefaring nations within the developing world has the potential to cause significant detriment to joint peacekeeping operations and diplomacy with the developing world, to say the least. Furthermore, it may cause a negative perception of all spacefaring activities across the developing world – a perception that would be directly at odds with the vast economic potential of space. Ultimately, maintaining solid diplomatic relations with those nations most likely to be negatively affected by space development will, as many other things, rely on our ability to plan expansion into space in such a way as to mitigate the aforementioned negative effects.

Prior writings make it clear that economic changes caused by  space development pose a threat to those nations of the world infected with Dutch Disease. Its history is well-known throughout economic research, and there are many examples of nations negatively affected by it. A less well-known economic risk, however, is that of the inability to utilize resources immediately outside of earth’s orbit (Gravity Well Isolation). In comparison to the economic losses that might be incurred by developing space without a plan to mitigate Dutch disease, the lost potential incurred by gravity well isolation is utterly catastrophic, with tens of trillions in potential world GDP simply written off, much worse than what presently occurs in parts of the world without a technological base to support industrialization.

While similar afflictions have been posited in economic theory, such as Adam Smith’s notion of a nation entirely cut off from trade on the international market, the possibility of economic space development bears a resemblance to the age of European colonization. Within that era, it was clear that colonization was for the benefit of the European colonizing nations, even though their traditional resource providers suffered. Those nations that had commerce with the colonizers found that these had many new assets such as crops, minerals and foreign trade and investment opportunities related to their colonies.

In our modern context, we can assume that a similar process will play out: while many nations risk losses in the short term, the long-term aggregate gains for the whole world will vastly outweigh the apparent harm. Even those countries which stand to lose will see themselves benefitting from new scientific advancements and foreign capital. The dangers of Dutch Disease and Gravity Well Isolation are real, but they can be mitigated by pursuing a policy of making every terrestrial nation a “colonizer” – by giving them all the means to join together in extracting resources and wealth from the solar system. This will require nurturing many new industries within those nations at risk, and breaking down barriers to Intellectual Property proliferation throughout the world. If this is done in a coordinated and collaborative process, it will lead to unprecedented economic development of the world’s most at-risk regions, will generate a new intellectual renaissance, and will open the doors to vastly increased productivity and living standards for those moving into space-relevant industries. Failure to do this will result in losses of wealth and production capacities that far outstrip any of the potential losses from Dutch Disease and other negative consequences of global economic transformation.

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Note from Manny Perez, President of Space Renaissance USA (Aug. 21,2017):

Mr. Werbos has brought to our attention some predictable socioeconomic risks that humanity faces from inappropriate development of a space economy.  History might have many examples of how economic development has destroyed societies and cultures, and it is easy to see risks when change is all around us. We, the people of Space Renaissance wish to set a different example, one of collaborative and coordinated human development and evolution.  Human space development needs to be a new beginning, not the beginning of the end.  We in SRI-US promote US leadership of civilian space development, and see this leadership as one of collaborative principles that support humanity worldwide.  

“Ad Astra: To the Stars!”  Is our sentiment and our mission.
Please join our efforts by signing up in our website and help us achieve this for all of humanity.     
http://us.spacerenaissance.space

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The Economy has 3 Monetary Eco-systems

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This July the observational conclusion that there is a different model for describing economic systems will be explained in my book “Three Monetary Eco-systems” which will be published on Amazon, in Kindle and hardcover formats.  Why?  Because mainstream economists have trouble predicting economic outcomes with the scarcity based models they use to describe how wealth moves and has evolved in our civilization.  In fact, my corporate and political experience has made me lose much trust in high level economic predictions.

The three monetary eco-systems are:

  1. Payments and Commerce
  2. Banking and Financial
  3. Governments and Power

And the first eco-system, that of Payments and Commerce is the one most of us learn to work with in our childhood, which includes barter and different types of currency.   The second, born from the needs of merchants to do commerce over large distances and to handle risk, is the banking and financial eco-system, which evolved into and actually facilitates the existence of a global network of banks and financial institutions that use fiat currency’s flexibility to create monetary wealth as needed to keep commerce (and the people of their nations) happy.   The third eco-system, supports the banking and financial system with the legislation, policies, and exercises of power and influence that represent government support and enforcement.

But why is this important?  Because different people understand how to create wealth at each level, and because they see money differently they can actually generate changes in each eco-system that can increase of decrease the wealth of their nations.   Some will become rich and their riches will be part of the nation’s wealth.  Others will siphon off the nation’s wealth and start weakening the respective ecosystem, especially if they destroy trust in their government while accumulating their riches.  And it can all be perfectly legal even if it seems arbitrary.

In our economy, the government, which works at a very macro level of budgets and negotiations, also makes decisions and rules over transactions in the micro, or detaled payment and commerce ecosystem.  And the most ancient bridge between the two excosystems, tax collectors, are still resented by many.  The exception seems to be the middle and working class taxpayers who receive services that they value and feel are worth the taxes.  Historically, individuals in the payment and commerce system have felt uncomfortable with governance level interventions, though they require the power and security a good government offers inorder to reduce costs and losses.

The intermediate level, that of banking and finance, started as a pure service to both levels, facilitating commerce, contracts and wealth accumulation, but modern technology has transformed it and made it into a major engine for growing gross domestic product and industrial investments.  It is also a major creator of money, and requires regulation so as to prevent loss of trust in the nation’s money.  Of course, most news and economics reports focus on short term losses and gains, which allows for infrastructure and other assets to go unmaintained and unrepaired for years, creating a chokepoint for local business development and job creation.

The Wealth of a Nation, as described by Adam Smith, is the adding up, the aggregate, of all of the individual, corporate, public, etc. elements of wealth in that country.  And each ecosystem recognizes different elements as most important.  Understanding this can allow for the development of the proper mathematical models to accurately manage said wealth so it may grow continuously in spite of the old beliefs in scarcity and hard assets.  In addition, it makes it easier to understand how cryptocurrency can be of benefit to the global monetary system.

In addition, most successful individuals have learned to make use of one ecosystem or another’s characteristics to generate and accumulate personal wealth, as well as corporate.  A few have learned to leverage  more than one ecosystem.  The concern is that they all might be losing faith in the existing fiat monetary networks, and by pulling their wealth from circulation and storing it as unproductive assets, tey could actually diminish the wealth of their nation and generate distrust in their respective fiat currency.

I hope my ideas can help avoid these negative possibilities and open the opportunity for ever greater business and industrial development worldwide.

Manuel F. Perez, MPA, CAMS

 

 

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