financial ecosystems october 24, 2008 ~ hohenwald, tennessee catherine austin fitts solari, inc
TRANSCRIPT
Financial EcosystemsOctober 24, 2008 ~ Hohenwald,
TennesseeCatherine Austin Fitts
Solari, Inc.
Return to theNetwork
Return to theInvestor
Total Economic Return
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Drop Out
Create
Wealth
Solari Strategy
What Is a Financial Ecosystem?
A financial ecosystem is an economic environment composed of monetary, contractual and risk management relationships that are interdependent and can be considered in relation to each other as a unit.
A natural ecosystem is subject to natural laws. A financial
ecosystem develops as a result of man-made laws, many of which relate to how people govern and manage natural resources.
As a man-made system, a financial ecosystem is first and
foremost defined by rules – whether these rules be laws, regulations, standards, contracts, common law agreements or simply cultural practice and habit.
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Hohenwald Financial Ecosystem
Who are the governing spheres?• Bank of International Settlements/IMF/World Bank
• NAFTA• Federal Reserve System• Federal Reserve District Six – Atlanta• US Military and Intelligence – Various• US Federal Government – Region 4• US Attorney’s Office and US Courts – Middle District of
Tennessee• State and Local Government• State and Local District Attorney and Judicial Districts• Tennessee Valley Authority• And many, many more...
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Federal Contracts in Tennessee
Continued >>>© Solari, Inc. 2008
Federal Grants in Tennessee
Continued >>>
Some of the Components of a Financial Ecosystem
Include
• Households• Companies• Farms• Banks• Municipalities• Not-for-profits• Schools• Foundations• Associations• Cooperatives• Endowments
Organizations
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Some of the Components of a Financial Ecosystem
Include
• Deposits• Revenues• Purchases• Profits• Taxes & Fees• Donations• Financial Data
Financial Flows
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Some of the Components of a Financial Ecosystem
Include
• Financial Data• Financial Assets• Financial Liabilities• Escrows• Reserves• Investments• Capital
Financial Pools
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Some of the Components of a Financial Ecosystem
IncludeHedges• Insurance• Options• Futures
Tools• Currency• Credit and Debit Cards• Exchanges
Markets• Currency• Stock• Bond
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About Financial Ecosystems in the U.S.
1. Most of us have never studied financial ecosystems and their component parts; however, there is no reason why we cannot do so. Step one is building a glossary of 200-500 words (including for the various component parts such as those listed about) that make it possible to understand and express accounting and financial data and the algebra of time and money.
2. Studying financial ecosystems requires understanding topics for which some information is private and/or non-transparent and it is socially unacceptable, harmful or risky to openly seek it or discuss it. Hence, building an understanding of an ecosystem requires discretion and respect for the risk of managing in the midst of economic warfare.
Continued >>>© Solari, Inc. 2008
About Financial Ecosystems in the U.S.
3. In the US, all local ecosystems are controlled and dependent on federal government financial flows, assets and credit. Hence, understanding the federal role in a local financial ecosystem is essential to understanding the system.
Federal flows are determined by global politics and warfare. Hence to understand the flows in a community it helps to understand global geopolitics that determine US cost of capital.
4. To understand the financial ecosystem in a place, it is invaluable to understand the economics of people’s time, as well as their risks and incentives.
Continued >>>© Solari, Inc. 2008
About Financial Ecosystems in the U.S.
5. The Popsicle Index and the Dow Jones Index – what does it say about our inability to see or value “living equity.” Why is the spread of cost of capital so wide?
6. Wealth creating decentralization will require re-engineering the federal government role. Is this possible?
7. Wealth creating decentralization will require disintermediation. Is this possible?
Continued >>>© Solari, Inc. 2008
About Financial Ecosystems in the U.S.
8. Change will require a significant decrease in time watching TV.
Is this possible?
9. The chances of business success are dramatically increased when the founders and leaders understand their financial ecosystem and how to contribute to it in a way that reduces both system risk as well as the risk to a variety of ecosystem participants.
© Solari, Inc. 2008
Starting A BusinessOctober 24, 2008 ~ Hohenwald,
TennesseeCatherine Austin Fitts
Solari, Inc.
Team Business PlansFriday:
Materials:• Local panel questions • Starting a small business checklist• Ethanol template
Saturday:Experience from an individual and community investors point of view
Sunday:Create template for business plan, including next stepsDetermine roles and responsibilities, including for next stepsPost so it is available to all groups
Tuesday: Morning: 20 min presentation to teams; 10 min feedbackAfternoon: 20 min presentation to local leadership; 10 min feedback
Next Steps:To be invented
© Solari, Inc. 2008
Four Parts of a Business
The EcosystemThe Business
The Business of the Business
Financing a Business
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Starting a Business Stories
•The Invention Room•Ninja Turtles and Lone
Rangers•Gender Economics: The Bar
Business vs. Investment Banking• Creating Your Culture
© Solari, Inc. 2008
Starting A BusinessOctober 24, 2008 ~ Hohenwald,
TennesseeCatherine Austin Fitts
Solari, Inc.