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UCSC Merrill College Cultural Center
California – USA
29th of November 2012
Open Lecture by Dr. Armen Papazian
CEO of ISDHub
Money Mechanics For Space
“The fact that an opinion has been widely held is no
Last Wordsevidence 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
DEBT CRISES AND A FISCAL CLIFF!!
?
THIS NOTE IS LEGAL TENDER FOR
ALL DEBTS, PUBLIC AND PRIVATE
Debt Based Money Creation
The State
Central
Bank
Government
Issue Department
Treasury
Banking Department
Assets (£m)
Securities of, or guaranteed by, British
5,679
Government
Other Assets, Including those acquired 44,541
under reverse repurchase agreements
Liabilities (£m)
Notes issued
50,220
Total Liabilities
50,220
Deposit with Banking Department 26,655
Reverse repurchase agreements 17,886
Total Assets
50,220
Balance Sheet of Bank of England Issue Department, 2010
Source: Bank of England, Financial Statement 2009-2010
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
3000
GDP
Notes and Coins
2500
Money Stock M4
2152.4
2000
2.5%
1392.6
1500
3.8%
BANKING SYSTEM
1000
500
54.3
0
0
500
1000
1500
2000
2500
3000
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
Bank Lending, Unemployment and Austerity: Recipe Outcome?
+ Austerity Measures
Source: Bank of England, October 2012, Trends in Lending
Sovereign Debt Crises and Austerity Measures
A System Chasing Its Own Tale
Andromeda
Our True Context
The Milky Way
Debt Based Monetary Architecture
Rodent
Economics
The features of the debt Instruments with
which we back the creation of money,
bind the species to calendar time.
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
Mortal Investor
Risk and Return
Space Value of Money
Time Value of Money
Space Impact
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.
Ownership: A Perspective
?
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.
21st Century Economics
Abundance Economics
Vs
Scarcity Economics
WEALTH
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
Government
Treasury
Issues
Sponsors
NASA
PUBLIC
CAPITALIZATION
NOTES
To Finance Projects
With
Real Asset Creation
Purchases
Federal
Reserve
Project Ownership
Risk and Profit Sharing
Income Creating
Value Generating
Healthcare
Real Estate
Infrastructure
Education
Commodities
Land
Public Capitalization Notes
Government
Treasury
NASA
Issues
Sponsors
PUBLIC
CAPITALIZATION
NOTES
To Finance Projects
With
Real Asset Creation
Purchases
Federal
Reserve
Engages
BANKS
PRIVATE
ENTERPRISES
PEOPLE
&
ASSETS
Projects Managed with Commercial Rigor, Discipline, and Integrity
Macro Benefits of PCN
Employment
Welfare
Investment
Capital
Formation
Consumption
Inflation?
PCNs Transform theCorporate
LOGIC of Money Creation
Maximize
Space Value
of Money
Real
Impact
Revenues
Monetary
Impact
Tax Revenues
Deposits
Budget
Banking Assets
No Additional
Debt
No Reliance on
Credit
40 Billion A Month in MBS
MBS vs. PCN
Nothing prevents us, as the creators of money, from
creating money via a diverse set of financial tools.
PCN
Federal
Reserve
Assets (£m)
New Reserves
Securities of, or guaranteed by, British
5,679
Government
Other Assets, Including those acquired 44,541
under reverse repurchase agreements
MBS
Liabilities
(£m)
New
Reserves
Notes issued
New Deposit
Incomewith Banking Department
BANKS
26,655
50,220
Debt Payments
Reverse repurchase agreements 17,886
Total Assets
50,220
New Deposits
Total Liabilities
50,220
New Debt
If money can be backed by a deposit in 01010101
the other branch of the same bank,
it sure can be backed by Public Capitalization
01010101
notes that create income
SPENDING
and stimulate the economy effectively. 01010101
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.
On the 6th of June 2012, with the Transit of Venus, ISDHub JV
submitted
NASA Ames to transform HANGAR ONE
A Possible
Platform aforproposal
a Space to
PCN
from a parking space into a space platform.
An investment vehicle
A business hub
A green structure
A hot spot for innovation
A collaborative platform
An outreach and education center
A museum of the future
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
To support, enhance, expand
To finance, plan, implement
International Agency Cooperation
Private Enterprises
Startups
THE TWO INTERTWINED THEMES
OF
ISDHUB:
SPACE DEVELOPMENT
&
PLANETARY SUSTAINABILITY
University Networks
Research Programs
Technological Experiments
Innovations and Ideas
Education Programs
Space Anthropology
Space Economics
A Peaceful Humanity
Breakthroughs in all aspects of Human Life
A NASA ISDHUB SPACE PCN would be the first experiment
in a new form of public funding
Healthcare PCN
Education PCN
Climate Change PCN
Solar Energy PCN
Science PCN
SPONSORED BY
Leeward Space Foundation
www.leewardspacefoundation.org
8.8
By purchasing this ebook
you are
supporting the
manifestation of this
vision!
THANK YOU!
© Armen Papazian, 2012. All Rights Reserved.