“Failure is an option here. If things are not failing, you are not innovating enough.” ~ Elon Musk
By Catherine Austin Fitts
In the year-end wrap up published for subscribers last week, I described the shift in the economy of resources from what I called Global 2.0 to Global 3.0.
Global 2.0 is filled with large government and private enterprises that have more liabilities than assets. More often than not they are heavily dependent on the bond market, which is struggling from the accumulated weight of credit bubbles, currency wars and derivative issuance.
Investors are perpetually holding their breath asking whether or not the Fed and the G-7 central banks can keep the bond market and government subsidies rolling along.
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The folks lining up at the post office to get their government check each month are quietly asking the same questions too.
Global 3.0 is filled by private entrepreneurs and investors along with a significant number of private enterprises and younger governments. They are adapting to changing technology and a globalized world. More often than not they are financed with equity.
Since the gold price hit its high in the fall of 2011, approximately 500 million more people have connected into the global Internet through smart phones or tablets. And that number is growing rapidly.
That means when a technology company decides to reengineer the availability of a medical test or therapy with a smart phone app, their potential market is not just 300 million people in North America. It is up to 1.6 billion people globally.
This is a whole different ball game for both sides of the balance sheet.
The health care industry is being turned on its head.
So is the financial payments industry. Is it any wonder that the financial blogosphere discussion on virtual currency is hot and heavy?
In Global 2.0, failure is increasingly not an option. Assets are precious, so no one wants to take any risk. People are critical and angry. Indeed, there is a lot to be angry about, including the fact that significant assets have been shifted out by criminal and questionable means, for reinvestment in 3.0.
For those functioning in 3.0, failure is indeed an option. The way to build equity is to take action, to try things. With your customers in a state of high connection, a high rate of trial and error often is what gives you the fastest learning speed, creates the greatest value.
Each one of us is navigating two distinct economies. One is risk adverse. The other is risk tolerant.
I am prepared to wear two hats this year. One says Global 2.0. The other says Global 3.0.
When I have the first hat on, it’s risk off. When I have the second hat on, its risk on.
Welcome to 2014! It’s going to be a two hat kind of world.
