UCSC Merrill College Cultural Center California – USA 29 th of November 2012 Open Lecture by Dr....

UCSC Merrill College Cultural CenterCalifornia – USA

29th of November 2012Open Lecture by Dr. Armen Papazian

CEO of ISDHub

Money Mechanics For Space

Last Words“The fact that an opinion has been widely held is no evidence 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!!

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THIS NOTE IS LEGAL TENDER FORALL DEBTS, PUBLIC AND PRIVATE

Balance Sheet of Bank of England Issue Department, 2010Source: Bank of England, Financial Statement 2009-2010

Debt Based Money Creation

Assets (£m) Liabilities (£m)Securities of, or guaranteed by, British Government

5,679 Notes issued 50,220

Other Assets, Including those acquired under reverse repurchase agreements

44,541

Deposit with Banking Department 26,655

Reverse repurchase agreements 17,886

Total Assets 50,220 Total Liabilities 50,220

Banking Department

The State

Issue Department Treasury

CentralBank

Government

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

0 500 1000 1500 2000 25000

500

1000

1500

2000

2500

1392.6

54.3

2152.4

GDP

Notes and Coins

Money Stock M4

3.8%

2.5%

BANKING SYSTEM

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

Source: Bank of England, October 2012, Trends in Lending

Bank Lending, Unemployment and Austerity: Recipe Outcome?

+ Austerity Measures

Sovereign Debt Crises and Austerity Measures

A System Chasing Its Own Tale

The Milky Way

Andromeda

Our True Context

Debt Based Monetary Architecture

The features of the debt Instruments with which we back the creation of money, bind the species to calendar time.

Rodent Economics

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

Time Value of Money

Risk and Return

Space Value of Money

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.

Mortal Investor

Space Impact

Ownership: A Perspective

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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

WEALTH

Abundance Economics Vs

Scarcity Economics

The Future is… wherever we choose,

whenever we decide,

whatever we invent… 2.5 Billion USDSpace 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

Real Estate Infrastructure Commodities LandEducationHealthcare

Project OwnershipRisk and Profit Sharing

Income CreatingValue Generating

PUBLIC CAPITALIZATION

NOTESTo Finance Projects

With Real Asset Creation

IssuesSponsors

PurchasesGovernment Treasury

Federal Reserve

NASA

Public Capitalization Notes

Engages

BANKS

Projects Managed with Commercial Rigor, Discipline, and Integrity

PUBLIC CAPITALIZATION

NOTESTo Finance Projects

With Real Asset Creation

IssuesSponsors

PurchasesGovernment Treasury

FederalReserve

PRIVATE ENTERPRISES

PEOPLE&

ASSETS

NASA

Macro Benefits of PCN

Employment

Tax Revenues

Investment

Consumption

Deposits

Welfare

Budget

Capital Formation

Corporate Revenues

Banking Assets

Real Impact

Monetary Impact

No Additional Debt

No Reliance on Credit

Maximize Space Value

of Money

Inflation?PCNs Transform the LOGIC of Money Creation

40 Billion A Month in MBS

MBS vs. PCN

FederalReserve

BANKS

MBSPCN

New DebtNew Deposits

New Reserves New Reserves

Nothing prevents us, as the creators of money, from creating money via a diverse set of financial tools.

New Income Debt Payments

Assets (£m) Liabilities (£m)Securities of, or guaranteed by, British Government

5,679 Notes issued 50,220

Other Assets, Including those acquired under reverse repurchase agreements

44,541

Deposit with Banking Department 26,655

Reverse repurchase agreements 17,886

Total Assets 50,220 Total Liabilities 50,220

010101010101010101010101

SPENDING

If money can be backed by a deposit in the other branch of the same bank,it sure can be backed by Public Capitalization notes that create incomeand stimulate the economy effectively.

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, whileAdvancing our technological and scientific reach.

StrategicallyIt is possible to allocate 2 Trillion USD through a PCN program over a 5 Year Periodto unleash a technological big bang and build space infrastructure capabilities.

A Possible Platform for a Space PCN

A green structure

A business hub

A hot spot for innovation

A museum of the future

A collaborative platform

An outreach and education center

An investment vehicle

On the 6th of June 2012, with the Transit of Venus, ISDHub JV submitted a proposal to NASA Ames to transform HANGAR ONE from a parking space into a space platform.

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

International Agency Cooperation

Private Enterprises

Startups

University Networks

Research Programs

Technological Experiments

Innovations and Ideas

Education Programs

Space Anthropology

Space Economics

A Peaceful Humanity

To support, enhance, expand

To finance, plan, implement

THE TWO INTERTWINED THEMES OF

ISDHUB:

SPACE DEVELOPMENT &

PLANETARY SUSTAINABILITY

Breakthroughs in all aspects of Human Life

Healthcare PCNEducation PCN

Climate Change PCNSolar Energy PCN

Science PCN

A NASA ISDHUB SPACE PCN would be the first experiment in a new form of public funding

SPONSORED BYLeeward Space Foundation

www.leewardspacefoundation.org

8.8By purchasing this ebook you are

supporting the manifestation of this

vision!

THANK YOU!

© Armen Papazian, 2012. All Rights Reserved.