11/16/2020 - A Key Ingredient of the Digital Economy

Interoperability And Why It's Important to the Digital Economy -
The Digital Economy requires interoperability to thrive. Different systems working together with common standards, rules & processes. And because the digital ecosystem is highly interoperable, globalists are able to bypass localized nationalism and access global commerce. 

Why you should care? Moving forward, businesses won't simply create stand-alone physical products. Instead, products will be designed to integrate into the global ecosystem with an ability to connect and add value to a networked world.

Adopting modern open API standards, promoting and supporting third party development communities, and establishing systems of self-reinforcing value. They will be designed to connect with the world community. An Internet of Things (IoT).

Startups are Frontier Communities - 
I love Kevin Simler's writing and find his website Melting Asphalt to be a treasure trove of well thought out ideas. His writing has a great flow and commanding use of language despite the complex topics he writes about. This particular essay is a comparison of startups to frontier communities and is one of my favorites. 

"Frontier refers to an area near or beyond a geopolitical boundary. In the case of the American (land) frontier, it referred to the fluctuating area at the fringe of official state control, primarily during the 18th and 19th centuries.

In the startup community, the frontier represents markets and technologies just at the fringe of control by the bigger, more established players."

Why you should care? Why do frontiers matter in a world that is almost fully settled? And why does a comparison of startups to frontiers matter? Mainly because the immersive digital ecosystem that has developed over the past 10 years is a frontier that has evolved in parallel with the physical world. 

Studying past frontier communities, and the startup culture that helped them thrive can provide interesting lessons for what to expect on the digital frontier. Especially as we move towards immersive digital realities that fall outside the confines of government control. 

Corporate Tenants Dump Excess Office Space, Sending Shivers Through The Market -
Big companies continue to unload corporate office space onto the market, creating a supply glut. Many of these companies are locked into 20-year leases and are aggressively trying to sublease their spaces to cover their costs.

As a result of this supply gluts, office space rents are expected to drop in price. The unusual increase in subleases of corporate office space suggests that corporate tenants are pressed for cash. 

Why you should care? If you assume the trend in remote work will continue after the pandemic ends, then corporate real estate trends should be watched closely. The increase in subleased space in a given city seems like it could be a good lagging indicator for tracking remote work trends. 

To be clear, there are many factors impacting the corporate real estate market. And many companies do intend to return to some semblance of regular office life after Covid. But it's becoming clear that many companies won't return. 

"Businesses might be jettisoning space with no intention of leasing it back if they are adopting new workplace strategies. The “unique factor” in this downturn is that “people are realizing that remote work is working better than they imagined and saying: ‘You know what? Let’s get rid of some of our space,’ ” said Mr. Anderson of CBRE."

Deutsche Bank proposes a 5% tax for people still working from home after the pandemic - This is, to put it plainly, a laughably stupid idea. Brought to you from the scandal-ridden international bank that played an integral role in the 2008 financial crisis. The DB proposal frames working from home as a "privilege" that should be taxed to subsidize people that don't work from home. 

Although presented as a way to support the disenfranchised, it's important to understand the context of this report. ie: Deutsche Bank now originates nearly 20% of Commercial Backed Mortgage Security loans. They stand to lose a tremendous amount of money if businesses expand their remote work policies and downsize their corporate real estate needs.

Combined with the Corporate Real Estate supply glut (referenced in the TL:DR above), it's easy to read between the lines and understand the motives of this tax policy.  

Why you should care? So many government and corporate entities will advocate for taxes and regulations to prevent the digital age's progress.

As we move forward towards a post covid world, it's important to have an understanding of the underlying incentives behind the proponents of these new measures. As with Deutsche Bank here, they stand to lose an astronomical amount of money if the corporate real estate loans they've underwritten lose value. 

It's important to gather information about the total picture before blindly accepting policies at face value.

Off Topic But Interesting

NASA Says Galaxy Could Have At Least 300 Million Habitable Planets - LFG! 

The Big Lessons From History - "The irony of good times is that they breed complacency and skepticism of warnings."

Iron and The Soul - "I used to think that it was my adversary, that I was trying to lift that which does not want to be lifted. I was wrong. When the Iron doesn’t want to come off the mat, it’s the kindest thing it can do for you. If it flew up and went through the ceiling, it wouldn’t teach you anything. That’s the way the Iron talks to you. It tells you that the material you work with is that which you will come to resemble."

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