The “Moses” Parallel, R&D Anathema And The Technological Golden Calf

A lot of people get things misconstrued about money and science. People tell themselves (in order to establish their self-imposed “belief system”) that science isn’t about money, but in reality, it truly is about the money. How does one go about starting a new company without the money? You can harp on all you want about how the U.S. needs to have more engineers and scientists starting new companies in order for the U.S. to regain the top spot as an economical giant in this global economy. The problem with that is that with developing and emerging States the likes of China and India, the U.S. is hopeless. You can’t march headstrong into the 5th-level economy (R&D) with this country’s flailing education system. Some of you have trouble spelling the word E-D-U-C-A-T-I-O-N. Why should I, an American entrepreneur, seek to hire idiots? Because they’re American, like me?

I do not particularly like doing sales; I do not like staying up to 4:30 a.m. five nights a week trying to figure out how to market PIR; and, admittedly, I’m not all that good at it. If I could do just the science, smooth…but, it’s my intention to lead this company into the 5th-level economy, so I really don’t have all that much of a choice. I could choose to let someone else be the captain of this ship—but then, the ship will sink I go that route. I say that because initially I actually tried to find someone with the experience of leading a company to the Promised Land yet after coming contact with several people that do (or did) have that experience, they all told me that I should be that person. I should be that leader. So, I’m the “Moses” of HL. That’s nifty and all, but how is Moses going to get any funding? How am I (“Moses”) going to convince institutional investors, high net-worth individuals (celebrities included), self-involved, self-important venture capitalists, “Silly Coon Valley” Silicon Valley know-it-alls, contrarian punks, and the collective hand of foreign investors to fund this R&D startup? Yes, HL is an R&D startup. Some say that it’s foolish to be an R&D startup because if you were to invest most of your funds in R&D then no one buys your product. My answer to that issue is the fact that I have continuously ad nauseum quantified HL as a scientific R&D startup, but the products that we’ll be developing are technology-oriented. Technology-oriented for a beneficial and substantial purpose. It’s not my intended goal to entertain people; it’s not my intended goal to develop a product and introduce that product to global consumer markets at such a high price that only Americans, Canadians and kangaroo-loving Australians are able to afford it. Seriously. Say I have a product that I want to sell at a price of $1,580 USD, and I want to sell this product on a global scale–who is going to pay that price for the product when someone in a developing State–such as China or India–can go buy the same exact product at a lower cost [and a lower price] from elsewhere?

You have to ask yourself this puzzling question: “What is $1 worth?” Answer: It is worth $1 in goods and services. If you have $10 and there are $10 in goods and services, then what is $1 worth? Answer: It is worth $1. You have $5 and there are $10 in goods and services. What is $1 worth now? Answer: It it worth $2. There is an established relationship between currency and the value of goods and services produced. 10 units of goods and services divided by 10 units of currency equals 1 unit of currency. The values of goods and services remains unchanged while it is the value of the currency that changes.

200 billion units GDP / 80 billion units of currency = 2.50 units of currency (Real Deflation)

200 billion units GDP / 110 billion units of currency = 1.82 units of currency (Real Inflation)

Most States use some measure of GDP in determining the total value of goods and services; the money supply is then adjusted to the GDP. If the GDP is measured at 200 billion units and you have 200 billion units of circulating currency then the value of one unit of currency is 1. From the example up above, I’m selling a good that is one currency unit, and you’re going to give me 2.50 currency units? You can’t possibly be that crazy because you have lost 1.50 currency units. In order to correct the situation, if I have to lower the price of the unit to establish an equilibrium so that the value of the unit remains at 1, therefore the cost of the unit [to you] is 1. In the real world, this is what is known as real deflation. The value of the goods and services is not declining rather the value of the currency increases. Folks, this is how the world [outside of the United States] operates. With that said, say I’m from Somalia and I have 2.50 units of currency and some high-tech startup over in “Silly Coon Valley” Silicon Valley came up with some pointless “augmented reality” device that intrigues me. Yet, that high-tech startup wants to sell their little “augmented reality” device/gadget/whatever at a high price of $1,580 to someone over in Somalia with only 2.50 units of currency to spend? Are you serious? That “Silly Coon Valley” Silicon Valley high-tech startup [that some “genius” VC firm funded] just economically crippled themselves because they cannot sell their little “augmented reality” crappy device/gadget/whatever to anyone over in Somalia, Angola, Chile, wherever on the global scale because no one in those markets can afford the the overly exaggerated price of $1,580. Now, that high-tech startup from “Silly Coon Valley” Silicon Valley has to settle for mostly domestic markets within the United States that are willing to fork over $1,580 for their product and might luck-out on a few more markets from Canada–and don’t forget the curious markets from Australia as well that don’t want to miss out on the fun of forking over $1,580 [instead of doing like the rest of the world and wait for the price to drop, dramatically].

There’s a difference between starting a high-tech startup that develops products based off of fantasy and bewilderment and a scientific R&D startup that focuses on developing products that are technology-oriented with the purpose of being beneficial and substantial to people in general. In the interest of HL, allow me to put a little definition  to “technology-oriented”; HL is a startup that focuses on employing both conventional and unorthodox methodologies of research in order to develop products based on scientific principles. HL is a scientific R&D startup, effectively taking its place in the 5th-level economy. A high-tech startup is centered mainly on technology. Being placed firmly in technology effectively would make that high-tech startup 4th-level economy. This is where the United States is and has been [stuck in] for the last 60+ years. You hear all the time about “automation”, yeah? If [high-tech] companies were to fully automate what do you get in return? Answer: Surplus labor. Now, where will that surplus labor go? Here’s an answer to that inquiry based in reality: back in the mid-1990s, the U.S. was supposed to have already moved into the 5th-level economy, which is Research and Development–full-on Research and Development. Yet, you didn’t–and now, nation-States the likes of Norway, out-competes the U.S. when it comes to investing in R&D. Do realize that there are more people living in Cook County, Illinois than the entire population of Norway. You can harp on all you want about IBM spending $6 billion in “R&D”; these motherfuckers are investing in high-tech startups/companies–that’s a 4th-level economic activity; not 5th-level economic investing. Folks (i.e., “investors”) shun core R&D and by “core R&D” I’m not referring to the one or two or three R&D divisions at Facebook, Google or Microsoft. No, I’m talking about a company solely dedicated to core R&D. Investors, despite how milquetoast they are with their investment decisions, typically don’t go for core R&D companies but the reasons why they don’t won’t make sense to someone like myself since HL makes technology-oriented products based on scientific principles that can easily be marketed to markets on a global scale. You’d think that would entice someone to grow an interest to the nature of this startup. They’re interested in the ROI and how soon they’ll receive that ROI; they’re interested in the profit margins. Okay, so rather than investing in a startup like HL, investors the likes of VCs out of “Silly Coon Valley” Silicon Valley are going to invest in something that they perceive will “go big” and in turn, give them ROIs high off the roof. You can’t get mad at that, however, a company that will sell their product for a $5 profit will see the following numbers:

$5 profit * 400 million loud-mouth Americans, slow-in-the-head Canadians and child molesting Australians = $2 billion in profit

$5 profit * 6,000 million people that aren’t entrapped by Western culture = $30 billion in profit

I don’t know about you but I’d venture that $30 billion is more than $2 billion, but with the education system here in the United States, I’m not going to hold my breath. Common sense would say that as an investor, I’d make more off of my investment by pouring money into a company that can produce a $30 billion profit–and a company that wants to sell a product to someone over in Somalia with 2.50 units of currency at a price of $1,580 (for a $5 profit). But, I’ll leave the choice up to them. Technology is the golden calf in the United States. Technology makes your trophy children complacent; uninformed; without knowledge or skill; hopeless; damn hopeless. What’s the point of spending taxpayer dollars on “education” [in the U.S.] when those in school (high school, college/university) are incompetent and too daft to comprehend anything that would be developed into an applicable skill? How on Earth do you expect your “best and brightest” to gain any upward mobility when you have colleges and universities allowing remedial math to be taught on their campuses? If you ask me, there are a lot of kids going to college that should have never been allowed to set foot on a college campus in the first place. One largely visible problem that the U.S. has is this fascination with social issues. You put so much focus on wanting to be liked. One of the reasons why kids from China and India excel so much is because in China and India they focus more on academics and global competitiveness. Also, the kids over in China, India and specifically to wit, sub-Saharan Africa, aren’t technology-laden like the typical American. Those kids have to go to schools where there isn’t any running water; no computers, heck, no electricity at all, yet when they come here to the U.S. to pursue their doctorates at institutions the likes of Stanford, MIT, etc.,(after they’ve already attained their undergraduates in the countries they hail from) they end up wiping the floor with your “best and brightest”. I can say, with all confidence, that a country such as India (and yes, India is a country comprised of 23 States) will move forth into its 5th-level economy long before the U.S. will, if the U.S. ever will move into its 5th-level economy. I’ll add on, if the U.S. wants to move into its 5th-level economy, where every manufacturing job that has been lost will be replaced by a high-paying R&D job, people will need to have the Department of “Education” to remove itself from the education system by getting rid of guaranteed student loans. But, will the U.S. do such a pertinent thing? Of course not, because every child deserves a chance. You have all of these turds taking up space and wasting resources on college campuses across the country and your initiative is to increase the number of turds on those college campuses?

Let’s try this social experiment: you have Country A that treats those in pursuit of a Ph.D. in physics as if they are a burden on the economy, and then there’s Country B that treats those in pursuit of a Ph.D. in physics as if they’re a treasure to the world. As long as the U.S. is Country A, let’s see where the U.S. is [economically] by 2025. There’s only so much you can do until you realize how stuck you truly are in the 4th-level economy until it caps out and you have all of that surplus labor with no where for it to go because you do not have the proper education or training to handle any profession in the 5th-level economy, which is R&D.  In addition to that, you have no current industrial platform from which you can transition into the 5th-level economy. You also have to deal with your celebrity-wannabe-venture capitalists that are too daft and reluctant to shift capital in the direction of core R&D because the “ROI just isn’t all too appealing”. If Americans want to play stupid and toss R&D into the mud, go right ahead but don’t complain when 2025 or whenever rears its ugly head and you’re left toying with the reality that China and India has surpassed you. But hey, at least you’ll have your democracy, right? I guess that’s fitting for you since democracy includes the fundamental right to be stupid.

Being “Moses” has nothing to do with amounting oneself as an equivalent to the Biblical depiction of the mythical character. Rather, you should see yourselves as “Moses”, leading people that have a similar interest in 1). surviving; and 2). being in key positions in order to perpetuate newer generations and supply them with the resources that they’ll need. You’re “Moses” leading people that have a similar interest in the goal that you’re trying to attain, however, what comes with the cost of that “similar interest”? I ask that because a “similar interest” isn’t enough to assure development of a new economy of scale can be substantiated, especially when you find yourself dragging in the dregs from a dying economy. See, you’re not “Moses” just because you’ve led people away from the grips of pharaoh, you’re “Moses” because you’ve brought people out of the stagnation of the 4th-level economy into the 5th-level economy. That’s the Promised Land. The problem is, however, that you’ve brought the wrong people with you. The people that you brought with you to the Promised Land, that is the 5th-level economy, are the surplus labor from the 4th-level economy and no one that functioned in the 4th-level economy (Technology) have the requisite skills to handle any profession in the 5th-level economy (Research and Development). As “Moses” cannot nurture the grounds of the Promised Land with people who formerly thought they had it good in pharaoh’s corner of the world. The reason why is because those people are going to bring the traditions that they’ve adopted into their lifestyle [think of this in parallel to the “education” people are getting these days] with them to the Promised Land. The people that you, “Moses”, hath brought with you will later on show you how incompetent they are once they’ve become comfortable and without order. People who love technology can’t do without technology. They’re psychologically affixed to their golden calf. Therefore, in order to restore order, you [“Moses”] have to cast down law, written in stone, upon the image of the golden calf. Doing this, once again, in parallel to today, will exemplify to the world how you differentiate between a 4th-level economy and a 5th-level economy by coming out of the 4th-level economy. You cannot go into the Promised Land and bring people with you who are irrationally attached to the traditions they picked up back in Egypt, and rather instead of going through years of Exodus, as a “Moses” [of the 21st Century], I have constructed the parameters by which individuals will be tested in order to be a part of both building the foundation of this company (HL) and going headstrong into the 5th-level economy. Realize though, that I can only be “Moses” to those who choose to work at HL. I can’t be the medium through which a “God” utilizes to part the Red Sea for everyone to cross while pharaoh and his army (i.e., the dregs of the 4th-level economy) chase us down.

Desmond

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