In a recent speech to business leaders, U.S. Defense Secretary Leon Panetta revealed for the first time how a virus wiped data from more than 30,000 oil company computers in Saudi Arabia and Qatar.
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Consumption will drop by more than 10% in the USA. Consumption by private individuals is commonly thought to be directly and indirectly about 70% of the total GDP. Using this ratio, private consumption will drop 10% between 2012-2015, in large part due to the lack of credit from normal channels, such as credit cards, and credit score related consumption. In a service economy, even a 5% drop in consumption has ultra-serious ramifications. CyberSecurity has reached a tipping point. Needs for securing a mass exclusion in personal devices will become a personal concern. And I foresee, a Cyber Risk Index for business. Predictions for 2012 Breaking News: Chinese penetrate US Chamber of Commerce! October 26, 2012, 2:47 p.m.Obama order would beef up cyber security, a former aide says In a recent speech to business leaders, U.S. Defense Secretary Leon Panetta revealed for the first time how a virus wiped data from more than 30,000 oil company computers in Saudi Arabia and Qatar. Broadening Social & Economic Unrest. Duh. Why would I put this? To remind you that we are all too narrow in our thinking and mapping. Even then, the map, doesn’t equal the territory and this is going to bite us, because of the interdependencies that are unconceivable to the normal person at this time. The entire globe will undergo a period of social unrest, due to such weird-sounding factors as the SUN passing through the Milky Way. Research has shown that solar radiation affects everything, including weather, our attitudes, and our social fabric. This may be the most overlooked forecast I make, and it is has the biggest leverage over time. Shariah Financing will become "relevant" in 2012 as more and more people search for alternatives to what has emerged as "Corporate Capitalism" (my name), fitting with the maturing of the ER/Orange vMEME which is vying for density in the developed world, as an answer to current conditions. Shariah Info Inflammation will become known as the real culprit, or disease behind almost all major killers…? Major developments will occur over the next 18-24 months that will DIRECTLY affect inflammation and all of it’s related maladies. We, who are the first line of defense against incubating diseases, must take up arms against inflammation. WildCARDS. What is driving fear in all forecast markets are "WildCARDS". Futurists are talking about these probabilities as if they are going to be real, and while some may come true, they are accountable for a significant portion of speculation and the "speculation" risks that are evolving –> driving up fear and prices. In other words, a speculation risk is built into all pricing. Speculation, because of uncertainty, will now confound all models of how things work.
Deflation. There isn’t a doubt in my mind that deflation is the concern now in all smoke-filled offices, and the REASON for this is demand. Demand is driven by demographics. In the west, the average household earns around $50k, in China $5k. So, the gap between the demand "dollar volume" in the two sets of demographics is offset by quality and quantity. The question is not whether or not there will be deflation, but how long will it last. If it comes fast, it goes fast (Depression). If it comes slow, it will stay around a LONG time (Japanese Model). Too Many of Everything: Restaurants, Banks, Auto Dealers, Retail, Electronics, etc. This "consolidation" is occurring for a number of reasons. Shopping is changing because of technology, allowing more fractionalization (smaller stores selling what you want). Demographics is shifting demand, along with deflation of money and credit, and this is creating zombie "everything", living, but dead, kept alive by the strange convergence of forces holding onto the old paradigm, work, desperately needed employment, deep discounting and bankruptcy protection. Interdependencies. Because of interdependencies and the "flat world" that has emerged, ‘CORPORATE’ capable of selling globally have decoupled themselves from the ups and downs of the country-culture cycle. Karl Marx! When there is excess labor, labor can’t protect it’s income. Yet, how do we get excess labor? Isn’t that unemployment? NO. Excess labor occurs when paradigms shift and what jobs were a part of and in demand for that paradigm evaporate with the onset of the new paradigm. We have excess labor globally because of the demand for jobs which are much more foundationally sophisticated, requiring shifts in education, skill development, training and re-training, and the recognition by powers that be, that excess labor, not unemployment is the key to understand. We have excess labor because the jobs that existed for our skills match have been taken by people willing to work for less and match up better to the available jobs. The reason we don’t have unemployment and the focus on creating jobs is present, is because the powers at be, don’t understand what has happened and if they try to create jobs for the skills we have now, they will ultimately go to the people who can be employed for the least amount of money and benefits. A great salary mediation is occurring, and as Marx said, we can’t protect our income any longer, we can only re-match our skills to different work. Irreversibility? The ECB said that the Euro is irreversible, and this is not true. Whether it is formal or informal, the euro will reverse itself and strange things will start to emerge as it appears that on one level, the Euro is ok, on other levels, the informal way in which lesser countries will be forced to act will defy irreversibility. The euro was mainly created for Germany, and the trade for neighbor "states" and to confuse it as a world currency. A reserve currency is a big reach when you have what is happening asymmetrically in Europe. The only way the Euro could remain is as a reserve currency…or global currency. What I see as taking place is the world will choose a neutral currency, or make up a new one, which transcends all, but it won’t be gold. Reading List. Start Making a
Reading/Listening List for your planned/timed
sabbatical. Sitting-out the big one? In the
event of chaos, or the edge of chaos and the underlying
re-ordering of society, it might be an interesting idea to sit it
out. Renewing yourself during a period of time where
marginal returns/income may be completely absent, it might be
better to just get ready for the rebound. Water. Not equal to oil
yet, but the focus on water as part of a critical energy pyramid
will finally get to your tap in this period. Water is
becoming harder to get and you will start to see global players
start to reposition themselves with water in mind.
Asian Real Estate? Not just China, but everywhere in the emerging markets where "demand" was created by capital trying to find higher returns! The question is this: will the real-estate crisis in China produce what the real-estate crisis in Japan produced in the late 1980s. Probably not, but it does pose the question, is this part of the perfect storm? Personal Responsibility. This is the hardest prediction I have to make. It involves people moving to a point to where taking personal responsibility will take them "out" of social acceptance and it’s going to happen in several phases. Since this is likely to amplify a lot of other factors, I should spend a few moments teasing it out: all change is wrapped up in denial denial gives way to more and more facts of reality denial shifts into cover-up, because no one wants to be "out" there reality "uncovers" and exposes our errors, rather than take personal responsibility, we look for "outside" factors EVEN though at the root of our failure is our own apparatus… we will continue to jump into the river of blame with everyone else… at some point, when enough people are in the river, massive action will occur if a large group of people, all at once jump into the river, structures will shift If enough people in enough places jump in, the old paradigm will be challenged it is too early to tell whether this will cause
the paradigm to topple, most likely chaos will emerge…and it is
possible that the old paradigm will try to hang on as long as it
can…and in doing so, usher in ultra serious
consequences…before it gives way. Complexity Reigns. The gap between what we know and what we don’t know we don’t know has gone exponential. "These complexities are playing the primary role in generating and sustaining the negative emotions of uncertainty and fear, hampering system operations since uncertainty and fear are largely and liberally applied to unscientific estimations of that erstwhile unimportant counterparty risk." Exponentiality. Non-Linearity is now present in all of our systems: finance, food, flight, and everything else. We just have no real conception of what this means and almost all of our predictive systems are as good as the systems we use for the weather. A Close Look At Exponentiality.
If you did want to play this game, how would you play? Join us for ValuSync to understand how to flex among four interdependent movements. Design your way out of the ignorance and through the complexity in today’s world by engineering your own system driven by design.
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