Complex Derivatives transcript
Complex Derivatives -- When economics encounters
cosmology.
A 1 and a 2 and a poopidoo -- u re on the
air (peels cover from lense)
I'm not on air -- psssshewwwww
I'm on electrons ...
Ho Robots! The electron is the intelligence
....
Live long and prosper
OK You got a little problem, huh?
I could label it but -- I'm not a good wype
over there --
You're having a little development with your
"complex derivatives" ...
Now, this kind of thing starts to leave banking
and starts to get into cosmology
Now s'um,
ok um, what we're dealing with is economic
instruments.
now, uhh, this kind of economic instrument
is what a lot of people love to refer to as
evolution
as always
but you see, what's happening is, um, if you
understand the link of this stuff uh, it's
come upon being in the advent or the principle
of the advent of computation --
you see, I'm an artist so I'm used to seeing
my problems butter-salt with times but 's
uh money isn't everything so this is where
everything skootses off, but I realize all
you guys have to pay bills but
I had a chance to get out and see a few things
before this happened.
I was, you know, I had a time premonition
about it so, uh, I boogalooed on out to the
middle of the country uh where they were building
luxury housing for $350 thousand each -- probably
a bargain compared to, like, California
ok now, what we need to do is coordinate this
so you guys can stop going broke all the time!
ha ha ha ha
I care. you know... um, s'thinking --- hhhh
if we uh step back from it all -- wanna startfrom
the beginning & blah blah blah
but I'm going to "cut to the chase", here,
um -- regardless of all the complexities and
the complexes and all this, the basic, simple
thing is -- and this is something when you
guys don't understand -- with -- of this stuff
-- pick up the baggage of an education -- is
that, um, um, what- what happens is, it is
an um, an offshoot or a spur development of
computation.
So, what you're dealing with, here, is -- you--
you're not able to tto -- to um, pin down
an asset for what it is.
okay.
you're not able to PIN the asset --
now, you probably have a good economic term
for that, probably, you know, ---
because these - these uh, "derivational" uh
economic instruments tend to uh, abbberate
into little spurs and details -- so, let's
cut to the chase, now
what you've got here, is, you have human beings
trying to do what a computer does best!
It's like you need to get the book-keepers
outa there and put in an ECONOMIC ENGINE.
now, uh, Mister Greenspan and his mentor,
Ayan -- you know, they had an approach that
the market was able to um, regulate itself.
Now, that. That's PARTIALLY there. My -- from
my end, the aspect is -- and I knew this since
I was about ah, five years old --- things
at the economics tend to keep itself "in trim"
-- you know, um, but, ah, we'll get into that
later.
Here's , here's where we're going with this:
uh, these computers -- and you know even hand-held
-- you know, I don't even have... -- I've
got a Nokia. I don't even have a razor or
one of these new ones: a Blackberry or any
of this other stuff.
But, now, Hah. You're using I -- you're already
using pads so both of the pilots don't need
any paper on any of the jets, pilots are finding
out you don't have to bring any paper maps.
Probably a good idea to bring along some paper
maps anyway.
they don't have to bring out those jets out
there, if both the pilots and the co pilot's
I Pads fails they just fly down, pop up the
extra struts -- not struts but the extra,
you know you know.these new Boeings and I
think, the Airbusses they have -- they're
actually bi-planes: they can actually become
bi-planes, in a way -- they can get extra
lift by changing the wing structure. Was that
pretty cool.
They're starting to get the hang of it. Um.
hmmm.
Ok. So what 
you've got here is: this is something that
has to be done on a computational level. So
you got a -- you got to open the doors; you
know: the brokers and the economists, they've
got to SCOOT OVER and let the the, the - um
- computers be shared with the uh, uh, uh
the uh um -- um-- COMPUTER SCIENTISTS.
You have to devise ah, a SEARCH ENGINE. And
once -- once you have the open search engine
in place -- this is AN ECONOMIC SEARCH ENGINE
-- so what is does is, is not only does it
locate the derivative in FLUX, buddy, piece
of cake for a search engine, but now also
it ATTRIBUTES A VALUE to it.
Now, once you have the STATISTIC of these,
but now it also attributes a value to it -- now
once you have uh, the statistic of the investment,
the status of the investment, and the value
of the investment in various aspects --- it's
COMPARATIVE VALUE, IT'S INTRINSIC VALUE and
other things: the assigned values ... uh:
THE PROBLEM'S OVER. -- the problem's over.
I mean, oh -- you're looking at getting Sheerson-Lehman
back on ... Aw c'mon, boys, come on back ... Don't
jump. :) Ah, we love you. You got talent.
It's like, you know: this bank, The Bank of
America, which I call "The Spank" ...
UM, um ah, you've got to know human nature,
hence it's got a -- like a "dark side" -- don't
expect with them, that a flash light would
turn into a light saber, you know ... So,
u, you're going to have "the ups and downs"
because people will try hustling, you know?
now, I could say the market takes care of
itself but, man! I don't know... this is not
my bag. But you. You need to hook this up
to the search engine.
Now, what you need to do is, uh, give one
of those -- you're not going to get a big
hub going. Start those banks: THOSE MEMORY
BANKS. Start getting your terabytes, buddy:
start getting terabytes; start plugging in
your ah, your HUBS, Whatever you call it,
hub bub ...
and it, uh -- now, you've got no problem.
You see, all right: this is -- this is as
sure as the law of nature; the law of gravity;
the laws of physics. Once there is a suitable
value IT CANNOT GO SOUTH, as it were.
Okay?
Intrinsic value. You know. hmmm. and uh, hey,
we. we're primitive. It's like -- just like
"Planed of the Apricots" :) you know -- what's
his name? You know, that astronaut that comes
in and says "my God! They're -- they're jumping
around".
Well, pull your head together and get back
out there because there's a whole bunch of
little popping jack recessions coming up,
uh, you know. So, um, you know what? Uh, education
is, uh, -- you say it's a good thing, I'm
saying "pshhh ! Say what?"
But regardless of opinion, in order to really
make all this stuff work: all these things
-- education is not enough, buddy: you have
to have VISIONARIES. Have geniuses, have visionaries
-- you know, you cannot have a society that
DESTROYS your visionaries. It's like you --
What. What do you want? I worked with a genius
once who worked at the airport, for crying
out loud. He was the one who taught me "local
running": running suitcases from a jet to
the uh, you know, the -- you know the check
out, The uh, I always had trouble with that:
the place where they had the "carouselles"
and we'd get it there in five minutes.
But the guy was a genious, an inventor, a
scientist! He would come in late and they
fired his butt. But you know, that's your
visionary out there snagging suitcases from
a jet!
You know, I've met others from -- you know,
they're garage mechanics, they're teachers,
they're this, they're that, but you've got
and establishment that takes your visionaries,
your geniuses and shhhhhruhpsss squashes them
down to -- you know. Ah, you, you have a way
of of ah, of -- what do you call it? cheat
your resource, here...
Look: the first thing you want to do in order
to have a successful market, is to what: ESTABLISH
YOUR PSYCHOLOGICAL RESOURCES -- your intelligence
resources, you know?
you, you -- THESE GUYS, you know? You can
go ahead and have you -- you know, your but-kissing
to the whole pecking order going on -- you
know: that's -- that's the failing of human
nature; it's going to happen. But you better
make sure that you find every one of your
geniuses -- every one of your visionaries.
Sometimes they're -- you've got a visionary
that's like a Forrest -- a Bubba Gump Shrimp,
but you know that's what I'm trying to say:
because otherwise, you're sassafrass, buddy.
Just like you did before.
This' uh, this whole thing fails. Now you
know: the genious and your search engine,
you know, your computational devise. And -- and
the reason why -- why this thing IS FAILING
IS BECAUSE uh, ok, everybody says it should
be policed - it should be backed-up and ta-da
da da. I don't know about that: I would tend
to say yeah ...
But basically what's happening is you got
a human being in there, say, a human being
-- is BLOCKING the COMPUTATION FLOW. Now,
what you do is you have a human being not
blocking but is like that so the flow goes
past like that and they watch it as it goes
through in REAL TIME. And I don't mean just
"The Big Board".
The New York stock exchange and the London
and everything else, The Heng Sing, the All-Ordinaries,
the Japanese one, I forgot -- You have to
ASSUME IT TO BE PRIMITIVE. Say, Okay, we each
need to go from there.
Um, uh, ok. Now, we're talking albeit, you
know, five hundred, eight hundred trillion
-- boys and girls, STOP THINKING TRILLIONS.
You guys have got your head out of the trillion
um, pavilion!
So, um, well, what's the next one up? The
next one up is uh, quadrillion. You know?
Then, what is it? Quintilian? I don't know,
I mean, kids, we don't know how to count yet.
We're thinking millions.
Now, alright so, the first step, once you
get that, the "cruncher" up there and something
besides -- I know you probably already have
something, I'm not privy to this, but you've
got to have something like THOUSANDS of times
bigger than that.
-- something like a -- a thousand times bigger
than Google itself. You know.
Hey, you take, you know -- GET THE STOCK EXCHANGE
OUT OF THE ANTIQUE PAVILION, for God's sake!
Gosh, that is sooooo 20th century, man. 's
sake.
Big deal. Might as well get it out of New
York City. Pssshht. I -- I don't know where
you could jam that thing probably some -- I
don't know ...
the thing is, what you've got to do is get
that search engine on the move. And uh, the
search engine will be able to extend to and
pull in all that derivative stuff. AND CHANGE
that thing from what people call "toxic".
It's not toxic! Toxic is um, you know, like
dioxin at uh, uhm, "The Love Canal". We're
not -- we're not talking about something that's
landed -- that's happened on computers faster
than human beings can keep track of it! so
you've got a bunch of human beings who have
pushed the other people down with their "Shruggie"
mentality.
You know, what, what is a "Shruggie"? A shruggie
is somebody who is changing what would be
"a model of efficiency" (and really, they're
totally incompetent: they can't even do their
own laundry with a laundry mower) okay,
So you need computational power first. You
say, "well, we dont -- we -- we already have
that" No! Uh, uhho
YOU DIDN'T ALREADY HAVE IT, you haven't any:
you haven't even tried it! You've got to go
way beyond this.
You know? Way beyond --
And then when you get the search engine going
it can TRACE the derivatives' HISTORY. And
it's not a toxic asset, it's a functional
asset IN REAL TIME and it is a -- what do
you call it? -- FLUID!
A fluid is like water; pouring water. we got
something else: this is more like a lightning
bolt -- this is like a -- a arc convectuity.
It's arcing -- let's call it arcing. It's
an arc spark; it's -- this thing is like going
through a predetermined path and changes constantly.
It follows grounds; it's doing an electrical
thing; it, it has an electrical nature without
even a circuit up there! And -- and what HAPPENED
is: you guys! IT PROBABLY DIDN'T FAIL! It
might not even be a failure!
All these guys out saying blah blah blah,
Greenspan was saying "oh, it's totally wrong"
blah blah. Well we could say, possibly: they
tried it first to get the complexity --
But you see, now, the thing about Greenspan
is: he has go a very, very -- his mind is
-- is functional: somewhat similar to, shall
we say -- Einstein and others.
And they got the electricity working, there.
But then the -- the human being itself, in
there, can't even FOLLOW IT because electricity
has the 'spin' wha-- I could say it -- it's
got a mind of it's own. So, uh they ---
But I could step back as an artist and see
this visual forming out here! And I got up
a four this morning and I took a look at this
and snap -- WAIT A MINUTE -- gosh. Forget
the bad guys, you know? Forget the good guys.
This is just -- what happened is, the human
being emulated the flow of electricity, here,
and THE DERIVATIVES ARE NOW DOING A COMPUTATION-TYPE
THING.
It's self computational! It's -- it's uh,
It's a burgeoning computational a -- a uh,
"computationalictomy".
Now, this thing is SNOWBALLING UP THE HILL
because you got A HYPERCANE pushing it! It's
-- you've never seen anything like this before.
You got a wind and and you going to be -- yeah.
You got your "surfboard" on a um, a Tsunami,
there, kid!
look: obviously uh, [claps]. Yeah, forget
quadrillion -- that's like, I would say, ah,
83 quadrillion, that's not bad: it's like
-- what is that? 's you got 500 trillion -- forget
it!
how, how -- how much shhhh ... lets get out
of quadrillion! I'm going to take you to DECILLION.
Now, go ahead and Google it: decillion. And
then -- let's go for QUINTDECILLION.
That isn't even an official term yet, because
- you know, people have not counted that big.
I, I -- I mean, look: you know, we can go
ahead and touch this derivative thing with
the visionary aspect we need and say aye -- phhhhooooo!
I'll bet ya. -- I'll have a cup of coffee!
What you got -- what you got in this coffee!
and get away from "ah but I have more a chance
than you and you can't do something and tell
me what to do..." Now: and you're going to
see the toxic waste the government bailed
out -- would be enough to wipe out the National
Debt a couple of thousand times. [clap]
That -- hey you know, the thing is, the rich
guys are paupers! That's the whole problem.
I'm telling you. And and, and uh, you've got
these ---- Look, I can't get into that now,
you see. I'm going to lose my audience. I've
got like, maybe -- oh I can see one person
out there ...
I can't -- yet -- I mean, you want to get
me a team; put something together. But um.
You know, your visionaries are out there working
-- these guys are overachievers and once you
start stereotyping them into "cattle" --- my
God! You know, maybe cattle are smarter than
that. You know: then you've lost your visionaries;
you've lost your geniuses.
That's what's happening in the United States
and I think that's human nature, so it's going
on all over the world, so I can tell you what:
the country that goes through all of these
places, every town -- checks up on the kids,
follows up on the kids as they grow up and
says: "Uh, now look, Nancy, we saw you one
of those pictures, we saw you out here today.
We want you to just come over here we'll give
you a job in the -- you know, like um the
stock exchange. Look Billy ..." I mean, so:
I don't know how you're going to do it but,
you've got to culture your geniuses. You can't
just have education -- a magic bullet -- it
doesn't exist: there is no such thing as a
free launch. You can quote me on that.
You need to go ahead, dig out these people
who are geniuses and quit trying to cram them
into, like, being in "local runner" at the
airport, running baggages ... Running suitcases;
tossing them ... or, or snagging carts at
the Mart or some other thing.
You've got to have your visionaries, your
geniuses ... You know, I think what happened
is before people abused their freedom to take
freedom away from everybody else -- "oh, that's
happening in America, blah blah blah" -- Well,
you know, look: that's no conspiracy theory.
There is a basic understanding of human nature:
before that happened we had a little -- one
fleeting moment we had jets that flew at mach
2 and people that landed on the moon, you
know...
Well, you can still do that again, but you
you know, the thing is you need a basic understanding
of your limitations. And one of the severe
limitations is ah, this terrible character
assassination that has been going on.
That is -- that is the reason -- the epitome
of this last crash was character assassination
in all ways. And the they're resurrecting
this poor little lady who stood up and said
"No, you've got to police these guys". She's
right.
However the other guys were right in their
own way, but NOT RIGHT ENOUGH! Not right enough
to right the ship.
That stuff is still out there! They're floating
out there! You get the search engine together,
you'll be able to trace the history -- YOU
WILL BE! That's how it works.
You know? Um, now I could get into other things
-- I think we'll let it go. I'm just going
to summarize this up.
Hey, even something the size of a Google search
engine. You know? I'll tell you what: if The
United States Government wanted to have -- you
know: you've got the Republicans, the Democrats
and they're at loggerheads -- one says, "look
you police this too much, you're going to
be a wet blanket" and the other says, "You've
got to be kidding me! We want to make sure
we don't get crims in there, the last time
that happened we had a disaster" ...
Well, even before they were criminals they
were real people. I mean I guess that's pretty
steep.
But you know, what you've got to do if the
government could get on it is start a tracking
history -- I think you'd, I'm pretty sure
at this point -- now you might think "oh,
Paul, you're just showing your ignorance,
here".. Hey, don't blame me, man. I have all
these disabilities, nobody at college figured
I deserved to get a college education. I could
have stayed in the art school except Uncle
Sam wanted me for -- what? -- either the Vietnam
Conflict to protect the world from their domino
collapse or was it just to line the pockets
of some poor aberrant bunch of people who
thought armament production needed a stimulus.
Probably neither one, it's probably something
in the middle or ---
so we're telling you: the government could
do this search engine -- or you got a compromise
situation: you're not policing, you're not
-- uh.... you see what you're doing, then
is you're doing this, uh, Greenspan notion
of letting the market take care of itself.
You see, you're allowing the market to do
something by itself by TRACING THOSE DERIVATIVES
-- ELECTRONICALLY -- search engine.
And I think what you'll find is they have
not gone south: the only thing that has gone
south is the uh, a lot of properties have
depreciated. Um, but we're not even talking
depreciation, here. Depreciation is a surfactous,
spurriocity. What we're talking about is intrinsious.
Intrinsionnatta; the intrinsic.
Now, what you've got here is you don't have
the house falling apart from people squatting
in them, You've got the land the house is
on, you've got not a surface, you have the
down underneath. You have everything.
You see, the "intrinsic" ... So, um, I'm thinking.
Yeah. At this point, you get the engine together,
track those derivatives, you'll find out instead
of being "toxic", they'll end up being going
from about 500 billion, you know? it's like
-- yeah. That's not unbelievable, buddy. That's
reasonable; that makes sense that it would
be like that, that it would jump up like that
with the ability to COMPUTATE THE VALUE..
so, you'll probably find out that it's going
to go on to 8 or 9 hundred quadrillion -- and
then maybe octillion, I think it is, or novillion
or maybe let's say a decillion, here.
Now, the government found itself having to
bail out these banks and these banks. I don't
know if it's got rid of it's assets yet, you
may find out the government owns enough assets
to pay off the debt and to rescue every failed
state on the face of the Earth.
Piece of cake.
I -- uh -- we are in a flow of electrons THROUGH
THE UNIVERSE. The mind is a part of it. I'm
looking at these pygmy ants here, you see,
these tiny little pygmy ants on the table
top. I don't know if you can see those little
babies, look at them go!
those guys -- I'll tell you what: you go ahead
and do that search engine and you're going
to up the ante. You see how that little ant
is moving around looking for food on the table-top.
They have little minds going. They have -- it's
the electron -- That's what I'm telling you.
Ho! Robots! The electron is the intelligence.
Now. We'er going to "harness" the electron
to serve man? It's going to -- it's better
than that. It's going to be a symbiotic co-operation
of man with the universe. You're going to
find out that instead of -- you're going to
be conservative, you're not going to waste
things, but at the same time, there's more
than enough for everybody.
There's this abundance in the universe. A
flow of abundance, man! So let it flow!
It's like: it's not the end of the world yet,
you guys got to be a lot richer than this
before the world's going to end.
So. I thought I'd help you out. I don't know
if it's going to do any good, I mean:
Get the engine together. Hey. Send me an email,
I'll help.
You know, the whole thing is: regardless of
people's theories or their political beliefs
or opinions, they all -- everybody -- needs
to be financial.
So we can agree on that.
Alright. On THAT note: bye!
