Lifeboat Foundation

I got this tweet today, as a part of a larger conversation that technological breakthroughs could help predict disruptive economic times. During the past 10 days or so, the US and global financial markets have taken a deep plung, as a result of, well, according to the CIOs (chief investment officers) and politicians, we don’t know. The new industry pins the almost unanimous economic decisions of sell sell sell, to the latest new is geo-political interactions and/or financial specific news.

We see headlines like “Downgrade Ignites a Global Selloff” at the Wall Street Journal, referring to the Standard & Poor’s downgraded credit rating of US treasuries, which by the way soared during the selloff of equities, because of their relative strength.

Continue reading “The Technological Catalyst behind the Frequent Financial Market Capitulation” »

Dear Lifeboat Foundation Family & Friends,

A few months back, my Aunt Charlotte wrote, wondering why I — a relentless searcher focused upon human evolution and long-term human survival strategy, had chosen to pursue a PhD in economics (Banking & Finance). I recently replied that, as it turns out, sound economic theory and global financial stability both play central roles in the quest for long-term human survival. In the fifth and final chapter of my recent Masters thesis, On the Problem of Sustainable Economic Development: A Game-Theoretical Solution, I argued (with considerable passion) that much of the blame for the economic crisis of 2008 (which is, essentially still upon us) may be attributed the adoption of Keynesian economics and the dismissal of the powerful counter-arguments tabled by his great rival, F.A. von Hayek. Despite the fact that they remained friends all the way until the very end, their theories are diametrically opposed at nearly every point. There was, however, at least one central point they agreed upon — indeed, Hayek was fond of quoting one of Keynes’ most famous maxims: “The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else” [1].

And, with this nontrivial problem and and the great Hayek vs. Keynes debate in mind, I’ll offer a preview-by-way-of-prelude with this invitation to turn a few pages of On the Problem of Modern Portfolio Theory: In Search of a Timeless & Universal Investment Perspective:

It is perhaps significant that Keynes hated to be addressed as “professor” (he never had that title). He was not primarily a scholar. He was a great amateur in many fields of knowledge and the arts; he had all the gifts of a great politician and a political pamphleteer; and he knew that “the ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is generally understood. Indeed the world is ruled by little else” [1]. And as he had a mind capable of recasting, in the intervals of his other occupations, the body of current economic theory, he more than any of his compeers had come to affect current thought. Whether it was he who was right or wrong, only the future will show. There are some who fear that if Lenin’s statement is correct that the best way to destroy the capitalist system is to debauch the currency, of which Keynes himself has reminded us [1], it will be largely due to Keynes’s influence if this prescription is followed.…

Continue reading “On the Problem of Modern Portfolio Theory: In Search of a Timeless & Universal Investment Perspective” »

Perhaps the most important lesson, which I have learned from Mises, was a lesson located outside economics itself. What Mises taught us in his writings, in his lectures, in his seminars, and in perhaps everything he said, was that economics—yes, and I mean sound economics, Austrian economics—is primordially, crucially important. Economics is not an intellectual game. Economics is deadly serious. The very future of mankind —of civilization—depends, in Mises’ view, upon widespread understanding of, and respect for, the principles of economics.

This is a lesson, which is located almost entirely outside economics proper. But all Mises’ work depended ultimately upon this tenet. Almost invariably, a scientist is motivated by values not strictly part of the science itself. The lust for fame, for material rewards—even the pure love of truth—these goals may possibly be fulfilled by scientific success, but are themselves not identified by science as worthwhile goals. What drove Mises, what accounted for his passionate dedication, his ability to calmly ignore the sneers of, and the isolation imposed by academic contemporaries, was his conviction that the survival of mankind depends on the development and dissemination of Austrian economics…

Austrian economics is not simply a matter of intellectual problem solving, like a challenging crossword puzzle, but literally a matter of the life or death of the human race.

–Israel M. Kirzner, Society for the Development of Austrian Economics Lifetime Achievement Award Acceptance Speech, 2006

Continue reading “On the Problem of Sustainable Economic Development: A Game-Theoretical Solution” »

The existential risk reduction career network is a career network for those interested in getting a relatively well-paid job and donating substantial amounts (relative to income) to non-profit organizations focused on the reduction of existential risks, in the vein of SIAI, FHI, and the Lifeboat Foundation.

The aim is to foster a community of donors, and to allow donors and potential donors to give each other advice, particularly regarding the pros and cons of various careers, and for networking with like-minded others within industries. For example, someone already working in a large corporation could give a prospective donor advice about how to apply for a job.

Over time, it is hoped that the network will grow to a relatively large size, and that donations to existential risk-reduction from the network will make up a substantial fraction of funding for the beneficiary organizations.

In isolation, individuals may feel like existential risk is too large a problem to make a dent in, but collectively, we can make a huge difference. If you are interested in helping us make a difference, then please check out the network and request an invitation.

Please feel free to contact the organizers at [email protected] with any comments or questions.

It’s easy to think of people from the underdeveloped world as quite different from ourselves. After all, there’s little to convince us otherwise. National Geographic Specials, video clips on the Nightly News, photos in every major newspaper – all depicting a culture and lifestyle that’s hard for us to imagine let alone relate to. Yes – they seem very different; or perhaps not. Consider this story related to me by a friend.

Ray was a pioneer in software. He sold his company some time ago for a considerable amount of money. After this – during his quasi-retirement he got involved in coordinating medical relief missions to some of the most impoverished places on the planet, places such as Timbuktu in Africa.

The missions were simple – come to a place like Timbuktu and set up medical clinics, provide basic medicines and health care training and generally try and improve the health prospects of native peoples wherever he went.

Upon arriving in Timbuktu, Ray observed that their system of commerce was incredibly simple. Basically they had two items that were in commerce – goats and charcoal.

Continue reading “Cell Phones in Timbuktu” »

Originally posted @ Perspective Intelligence

Two events centered on New York City separated by five days demonstrated the end of one phase of terrorism and the pending arrival of the next. The failed car-bombing in Times square and the dizzying stock market crash less than a week later mark the book ends of terrorist eras.

The attempt by Faisal Shahzad to detonate a car bomb in Times Square was notable not just for its failure but also the severely limited systemic impact a car-bomb could have, even when exploding in crowded urban center. Car-bombs or Vehicle-Borne IED’s have a long history (incidentally one of the first was the 1920 ‘cart and horse bomb’ in Wall Street, which killed 38 people). VBIED’s remain deadly as a tactic within an insurgency or warfare setting but with regard to modern urban terrorism the world has moved on. We are now living within a highly virtualized system and the dizzying stock-market crash on the 6th May 2010 shows how vulnerable this system is to digital failure. While the NYSE building probably remains a symbolic target for some terrorists a deadly and capable adversary would ignore this physical manifestation of the financial system and disrupt the data-centers, software and routers that make the global financial system tick. Shahzad’s attempted car-bomb was from another age and posed no overarching risk to western societies. The same cannot be said of the vulnerable and highly unstable financial system.

Computer aided crash (proof of concept for future cyber-attack)

Continue reading “New Terrorism: Five days in Manhattan” »

Many years ago, in December 1993 to be approximate, I noticed a space-related poster on the wall of Eric Klien’s office in the headquarters of the Atlantis Project. We chatted for a bit about the possibilities for colonies in space. Later, Eric mentioned that this conversation was one of the formative moments in his conception of the Lifeboat Foundation.

Another friend, filmmaker Meg McLain has noticed that orbital hotels and space cruise liners are all vapor ware. Indeed, we’ve had few better depictions of realistic “how it would feel” space resorts since 1968’s Kubrick classic “2001: A Space Odyssey.” Remember the Pan Am flight to orbit, the huge hotel and mall complex, and the transfer to a lunar shuttle? To this day I know people who bought reservation certificates for whenever Pan Am would begin to fly to the Moon.

In 2004, after the X Prize victory, Richard Branson announced that Virgin Galactic would be flying tourists by 2007. So far, none.

A little later, Bigelow announced a fifty million dollar prize if only tourists could be launched to orbit by January 2010. I expect the prize money won’t be claimed in time.

Continue reading “The Lifeboat Conversation” »