The Ethical Skeptic

Challenging Agency of Pseudo-Skepticism & Cultivated Ignorance

Unethical Employment of Intellectual Property

Should intellectual property holders be allowed to name their patented product, the same exact name as its natural variant? Can one ethically patent a portion of a public domain item, then force the rest of that public domain item out of business – defacto patenting a formerly natural public domain resource?
Moreover, what if that ‘product’ was a pathogen? If I deploy a novel product in such a fashion, which solely as a result of my deployment of that product, threatens the prospective user with harm if they do not thereafter acquire and further propagate that new product – this is called ‘Racketeering’ under 18 U.S.C. § 1961.

In the mid 20th Century, organized crime shifted from its traditional business bases of gambling, prostitution, booze running, drug smuggling, human and weapons trafficking, to more legitimate and prima facia ethical business avenues. As a result, in 1978, Congress enacted the Racketeer Influenced and Corrupt Organizations Act, or RICO Act as it is called, in order to provide prosecutors with new sets of laws effective at combating these newer forms of quasi-legitimate criminal enterprises.1

In one of my past projects, the company I led had developed a new way to fabricate a medical treatment intervention. This new method of fabrication neutralized several defects incumbent with the old version of the treatment, and made it both a much healthier and now permanent and life-long solution to the entailed human malady, alleviating much suffering for the patients who needed this new medical technology. This intellectual property bore patentability, given that it was novel, useful, non-obvious to a practitioner in the art, had not been fairly addressed before, and was teachable and sustainable as a technology.2 As a result, we issued a barrage of intellectual property protections (both internal and external) per the chart on the right.

Subsequently, we approached several business partners to help us deploy this medical technology for benefit inside medical praxis. What I have outlined here of course is an example of an ethical employment of intellectual property. A condition wherein the technology in question is but one small specialized segment of its market vertical, and as well was actually serving to create a completely new market niche out of non-existence (ex nihilo) – and not necessarily displacing naturally occurring versions of itself into oblivion. In addition, our target user was highly interested in our product because of the novel advantage it afforded them; an advantage which they could not obtain through natural means.

But let us consider for a moment, the hypothetical circumstance wherein our technology provided more than simply those two advantages. What if our technology became so ‘beneficial’, dominant-in-practice, ‘virtuous’ or critically valuable (think ‘selling plywood before a hurricane landfall’), that it served to accomplish several of the perhaps more negative potential ramifications of intellectual property? Let’s outline two hypothetical examples of this species of negative IP condition below – in the forms of racketeering, through predation and extortion. We present the predation form of racketeering first, because it helps shed light into the critical issues involved inside how a market metastasizes under an artificial pathogen threat.

 Racketeering Predation

Intellectual Property Metastasizes Market thru Economy of Scale Exploitation

The intellectual property (IP) technology deployed either enables a better cost-inputs efficiency or enables cartel-enforced economies of scale such that it becomes predatory upon heirloom and naturally occurring species, which are healthier but now cost more to produce. When the market metastasizes, this displacement harms genetic stocks through depletion, human health through lack of nutrition and farming economies through loss of ability to affect margin.

In the example below, the FructatoTM displaces all 5 varietals of naturally occurring sweet potato from bearing market viability. Yes, these varietals can be grown, however they are not supported as a technology by the metastasized market, and now must be grown at a much greater cost, because of the economies of scale now incumbent in FructatoTM production and supply. Few real advantages were realized with the FructatoTM; rather its perception was spun by market entities who were able to propel it into a sufficient critical mass of employment, such that it appeared advantageous versus traditional options. Once all heirloom species are too expensive for farmer to grow, then the cartel using the new tech, starts calling the FructatoTM the ‘sweet potato’. Thereafter the cartel slowly raises prices and squeezes farmers into foreclosure and forfeiture to underwritten industrial farms – as is happening now in America.

This is predatory market activity – much like a mega Pet-Mart putting an entire nation of mom and pop pet stores out of business through predatory dog food pricing – employing smart Wall Street money backing to bolster the company during the predatory-loss phase, and then raising prices once all the competition has been eliminated – this is illegal trust activity.

 Racketeering Extortion

Artificial Pathogen Metastasizes Market thru Ironically Its Own Artificial Threat

A treatment (Vapox TM) for the naturally occurring illness Poxolitis, once installed in the human body, causes others around that person being treated, to reside under a threat of developing a similar but artificially induced ailment to the pathogen (Poxolitis) the treatment was designed to counter in the first place. Thereby mandating that family members, classmates and office workers exposed to the person receiving the intellectual property treatment, now are compelled/coerced into having to obtain that same IP from its supplier – because they have inherited an artificial disease exposure risk from the person receiving the VapoxTM treatment for that disease in the first place.

These stakeholders are denied their human right to their own pedigree natural immunity asset which results from Poxolits, and must purchase the intellectual property (IP) version immunity (a predatory product called VapoxTM) in its place. However, this is all enacted under an implicit threat created by the profit-making IP holder, solely because of the artificial variant of the pathogen they have broadcast into the market in the first place.

The key unethical practice here, involves conflating in the industry praxis, both the natural immunity and artificial product symptomatology as constituting the same illness (regardless of how mild) – diagnosed by means of the same medical identifier. Once this has been done, racketeering fraud comes into play.

Do such conditions exist today? In the case of predation, absolutely this exists. In the case of extortion, we actually do not possess enough information to know whether or not that racketeering condition exists. However, one must be reminded that wilful ignorance or Nelsonian obfuscation of information surrounding 18 U.S.C. § 1961 – U.S. Code Racketeering, also constitutes racketeering in itself (Section 35). It is our duty as a society and a medical industry, to find out. The way we find out, is to name and track such natural and artificial maladies by means of separate and non-ambiguous identifiers – mandatory in each instance of outbreak/use. Such litmus conditions serve to place an ethical cap on the ceiling, limiting the rights and conditions claimable by an intellectual property holder. To broach either of the litmus conditions, serves to constitute a legal threshold under the 1978 RICO Act.

The critical essence of this set of ethics involves the naming and market identity conventions employed regarding novel intellectual property.

To mix the identity of naturally occurring and artificial IP variants, constitutes unethical activity.
If the measles vaccine itself can cause measles, then this derivative intellectual property disease must bear a different name entirely and cannot be registered as a ‘measles outbreak’.

Pathoteering – Racketeering by Means of Artificial Pathogen Threat

What these two hypothetical cases of racketeering serve to elucidate is the principle of racketeering by threat of artificial pathogen. My obfuscation of identity between my novel intellectual property pathogen and the naturally occurring variant may constitute Racketeering on my part, if my novel technology, of its own accord, serves to threaten its prospective users or coerce them into compliance with its deployment. The issue therefore hinges on whether or not the threat which makes the purchase or acquisition of product or illegitimate establishment of market power, involves

      An intellectual property device or element of market power which

           1.  has established user or at-risk stakeholder compulsion into its market prevalence or use,

           2.  is not naturally occurring or is a derivative of a naturally occurring element,

           3.  has displaced a plurality or more of the naturally occurring market, through

                a.  illegal forms market predation,
                b.  a threat or implicit threat of harm to candidate adopters, and/or
                c.  requiring its efficacy, safety or confirmation of safety, be confirmed through its adoption by that using community, and

           4.  is ambiguously referred to by the same name as the naturally occurring variant. 

If all four exist, then this establishes the basis for 18 U.S.C. Racketeering.

What we have served to broach here is the critical role of product identity, in the conflation of ethical burdens on the part of companies inside the separate contexts of naturally occurring and synthesized threats. The ethical standards under each circumstance are different. The exercise of enforced medicinals under threat of a naturally occurring pathogen can be ethical. However, once the threat is principally created by a modified/artificial/fabricated agent, then enforcement of that synthesized/derived agent itself, as the solution to a problem which it created in the first place, especially under the auspices of monopoly profit, constitutes 18 U.S.C. § 1961 – U.S. Code Racketeering. Related excerpts from that United States Code follow.

18 U.S.C. § 1961 – U.S. Code – Unannotated Title 18. Crimes and Criminal Procedure § 19613

Section 1951 (Extortion): Interference with commerce by threats or violence

Whoever in any way or degree obstructs, delays, or affects commerce or the movement of any article or commodity in commerce, by robbery or extortion or attempts or conspires so to do, or commits or threatens physical violence to any person or property in furtherance of a plan or purpose…

The term “extortion” means the obtaining of property from another, with his consent, induced by wrongful use of actual or threatened force, violence, or fear, or under color of official right.

Sections 175 – 178 (Biological Harm) : biological weapons

175 (b) Additional Offense.—Whoever knowingly possesses any biological agent, toxin, or delivery system of a type or in a quantity that, under the circumstances, is not reasonably justified by a prophylactic, protective, bona fide research, or other peaceful purpose… In this subsection, the terms “biological agent” and “toxin” do not encompass any biological agent or toxin that is in its naturally occurring environment, if the biological agent or toxin has not been cultivated, collected, or otherwise extracted from its natural source.

(1) – (4) any “biological agent”, “toxin”, “delivery system”, or “vector” which causes “death, disease, or other biological malfunction in a human, an animal, a plant, or another living organism;”

A legislative reality exists in which I am prohibited from litigating the IP-racketeering entity and seeking award damages as a result of their causing my child’s encephalitis or death. I was unable to pursue any recourse on behalf of my child, because the permanent disability encephalitic injury for my son was not able to be confirmed as a diagnosis until he was old enough to be tested for such damage – well past the 3 years of age limitation specified in the National Vaccine Injury Compensation Program. The irony is that he cannot get disability either. He is destined to live a life of poverty, working menials jobs – solely because of the malice, oppression and criminal racketeering activity of the part of the pharmaceutical industry. I will work hard to help alleviate inevitable poverty which my child will have to undergo at the hands of these incompetent elites. But I will be damned if I will be silent about it.

But at-risk families like mine can use racketeering and anti-trust laws to protect their loved ones from harm/coercion into being forced to ingest a possibly harm-potent intellectual property product – even if the entailed racketeering is enacted by society at large – and more importantly, even if we are unsure as to the existence of the four conditions above.

In other words, once a vaccine is no longer reasonably justified as a ‘prophylactic or protective’ agent against a naturally occurring microbe – and is now only protecting its coerced/threatened victims against harm imparted by its intellectual-property-derived imitation/variant – and this is clouded by the coercing entities’ or market’s or society’s conflation of the same name in common between the naturally occurring and genetic/modified/derived variant – then compulsory vaccination under this condition has become an act of Racketeering, under 18 U.S.C. § 1961 – U.S. Code.

I cannot seek damages for my child’s injury or death, nor for pharmaceutical company Racketeering under 18 U.S.C. § 1961 – U.S. Code, precisely because of the NCVIA of 1986 (42 U.S.C. §§ 300aa-1 to 300aa-34) legislation, however

I can seek a protective injunction against Racketeering which employs coercion to enforce use of a product under a threat of implicit harm which meets the above four criteria.

The basic premise resides in this, if the disease against which I am now being vaccinated is, even in a remote possibility and even if we do not know, principally a disease which was invented by the actions of any coercing entity to begin with, and I am not aware of this because the same name is used for both the natural and artificial variants of the pathogen – I do not have to comply to such legal action, by law. I also may seek an injunction of such coercive activity under 18 U.S.C. § 1961 – U.S. Code.

I am testing this as my legal delineation between justified vaccination, and unethical vaccination which induces more harm than good. The ‘risk/benefit’ analysis which everyone keeps talking about, yet nobody actually does. I am pro-vaccine, but there is a viable limitation to such virtue, just as there is a context limit to all virtues. We as a society need to face and fathom these ethical boundaries.

Such is also the duty of an ethical skeptic.

The Ethical Skeptic, “Unethical Employment of Intellectual Property”; The Ethical Skeptic, WordPress, 27 Dec 2019; Web, https://theethicalskeptic.com/?p=42337

December 27, 2019 Posted by | Agenda Propaganda, Institutional Mandates | , | 1 Comment

Carl Sagan was Just Dead Wrong

Information is a market. ‘Extraordinary claim’ and ‘simplest explanation’ are two common buzz-phrases of that market’s huckster, hustler and shyster. Be very cautious of such easy and equivocal disposition, especially as it regards an implicit appeal to truth (value).

During one of my team’s overseas projects, we were tasked with the mission of observing a particular ancient and resurgent empire’s illegal operations inside our host country. The empire had become the de facto ruling entity in the region, despite this site not even being their country nor property at all. These illicit operations were enabled by various foreign and religious insurgent groups-for-hire who had invaded the countryside and conducted a war of terror on the local population. A war of intimidation, compelling the indigenous people into keeping quiet about the entire set of foreign invasion and exploitation activity.

Getting to our objective involved an excursion across a 12 mile trek of terrain bearing an odd set of features. We were outfitted in full pack and had to traverse the entire distance on foot, through thick waist-high beige colored savanna grass. The 12 mile journey extended across an ancient igneous lava dome which was formed of iron-rich magnetite and hematite. In fact, if one dropped a tool upon open hard ground there, its impact produced a curiously metallic sounding thump. A very slight but perceptible difference from standard earth. Various team members fascinated themselves by dropping items to the ground until we needed to assemble for the excursion.

Illegal immigration and insurgency are a Ruling Party’s method of punishing its constituency for having the audacity to attempt to hold it constitutionally accountable.

Numbered among the team of course were guides, familiar with the local trails and access-ways to our destination, and possessing a rapport with the local tribal leaders. As we set up to make our journey, I directed that the team take a formation which was defensive, in the possibility that the savanna grass concealed opportunistic lions. Our guides advised that “The lions will not come here. They are sensitive to the magnetics,” suggesting that the mineral makeup of the lava dome itself, served to repel both prey and lion alike. It was actually both a fascinating and reasonable conjecture to my mind; probably even one which would stand up to scientific scrutiny. Indeed this was not an extraordinary claim by any stretch – easily the simplest explanation.

But this particular context of deliberation entailed a need for more verity than simply an estimation of the most probable, simplest or most likely explanation. The logical calculus in this particular situation, involved critical matters of value and risk: stealth in movement, team safety and state of focus, avoiding placing mission-critical personnel at risk, along with the primacy of the mission itself. The grass was ‘the fog of inquiry’ if you will. No, we were not afraid of being attacked, drug off and eaten. Rather, discharging weapons at or being distracted by marauding lions was not in the cards, as such activity served to place the mission, and more importantly the local allied population, at risk. Such activity was deleterious to value and exposed to risk (two different things).

An insistence upon sacrificing value or placing stakeholders at risk, constitutes the most extraordinary of claims.

So, despite our guides’ recommendation, we elected for the team to take a lion-disincentive formation – people side-by-side in front, and side by side to follow up our column of personnel. We were to present no lone stragglers – no lion tease or entrapment of any kind. Was the formation necessary? I am a skeptic; skeptical that us interlopers possessed the locus of existential knowledge commensurate with such a decision. Our guides regarded our decision as a form of extraordinary claim; one in which we bore no evidence. In the end, I elected to serve preservation of value, along with robustness to risk. Precaution; something well practiced on the high seas, as well as on land. Such is often the circumstance in science as well, especially when value, ignorance or risk are involved in its logical calculus or deployment upon stakeholders.

Ethical

/philosophy : ethics/ : a consistent praxis which is transparently focused upon benefiting its stakeholders in terms of value preservation and attainment, or robustness to risk. One who does not pretend to be everything to everyone, nor seeks to obfuscate any part of value and/or cost.

We made it both to and from our objective without being detected. We placed none of the local indigenous people in harm’s way of being questioned by insurgency squads. We brought back proof of this empire’s illegal activities in stealing from our host-nation’s natural resource wealth. Three days later, a local laborer working on the periphery of that plateau, was killed by a lion.

Now that we have briefly touched on a context example, let’s examine Carl Sagan’s second most famous apothegm, aside from “All things being equal, the simplest explanation tends to be the correct one.”

‘Extraordinary’ is an Evidence-less and Risk-Ignorant Claim to Specific Value

Information is a market. ‘Extraordinary claim’ and ‘simplest explanation’ are two common buzz-phrases of that market’s huckster, hustler and shyster. Be very cautious of such easy and equivocal disposition, especially as it regards an implicit appeal to truth (value).

Carl Sagan is credited with the famous apothegm of social skepticism, ‘Extraordinary claims demand extraordinary evidence.’ And while this truism is a semantic truth, it is not also therefore a logical truth. That is to say, that the principle bears some utility in certain specific circumstances, but also bears the potential of encouraging a mistake of logical calculus when blindly applied in other contexts. In particular, when the apothegm is used to enforce certain conditions and conclusions which violate the precepts of skepticism itself. Ludwig Wittgenstein would have a field day tearing this apothegm apart by its predicates and permissives.

Extraordinary’ is a descriptive which is proffered by our minds most often in advance of knowing anything about a matter of contention. In advance of actually possessing any level of intelligence concerning a subject, one should instead err towards exposure to or conservation of value, along with robustness towards risk. Any claim which poses a logical calculus running counter to these ethics, must come necessarily with extraordinary evidence.

What my experience in developing trading markets (see The Future of Ethical Markets), and leading people under scenarios of risk has taught me, is that it is the ordinary which is most often misleading. And in being regarded as such, is also often the most harm-imparting. Some of our most disastrous case examples in trade, involve very ordinary claims to proof of product or proof of funding. In fact, ‘ordinary’ – or ‘you see it’s simple’ are most often the tradecraft and watchwords of the fraudster – the huckster, hustler, hustle-chain or shyster. The savvy executive and military leader learns lessons to which the scientist or academic is never exposed. There is a preeminent role for extraordinary evidence, which in this first priority has nothing whatsoever to do with addressing extraordinary claims.

Logical versus Semantic Truth

/philosophy : truth : species/ : a logical truth is a statement which is true, and remains true under all reinterpretations of its components or in all contexts aside from simply that of its apperception and crafting. A semantic truth is only true in certain given circumstances.

Which serves to introduce a correction to Carl Sagan’s semantic truth regarding extraordinary evidence.

The Semantic (Unethical) Truth of Extraordinary Evidence: Extraordinary claims demand extraordinary evidence.

Carl Sagan was not just wrong, he was destructively wrong. This abortion of a philosophical principle helped usher in the grand suffering entailed inside the bullet pointed errors below – by focusing skepticism on the wrong issues. Equivocation promoting fecklessness. This apothegm was developed inside the cocoon of academic celebrity, and not through the requisite sampling of the breadth of human experience and exposure to risk.

If one could in theory constrain the equivocal context of the Wittgenstein object ‘extraordinary claim’ to those claims which serve to place stakeholders at risk, or be deleterious to value, then this semantic context might pass muster. But of course, semantically the apothegm is employed as a data filter, useful in squelching anything a fake skeptic finds unacceptable instead. Rendering the apothegm in reality, only useful for unethical activity. The actual principle, under ethical skepticism is expressed in the form of a logical truth as follows:

The Logical Truth of Extraordinary Evidence

Any claim which exposes a stakeholder to risk, ignorance or loss of value – regardless of how ordinary, virtuous or correct – demands extraordinary evidence.

Ghosts, Bigfoot and UFOs don’t cause harm – rather, rolling out untested-risk technologies or lying to large stakeholder populations at risk causes harm – this is what demands extraordinary accountability. Examples of ordinary, virtuous and correct claims – which should ethically have been supported by extraordinary evidence, and were not:

‣ Instructing the obese that they are obese from eating too much and watching too much TV.

‣ Citing as medical authority that diabetes is caused by ‘sugar’.

‣ Citing as medical authority that heart disease is caused by excess serum blood ‘cholesterol’.

‣ Citing as medical authority that tinnitus is caused by exposure to loud noises.

‣ Citing as medical authority that ‘one gets all the nutrition they need, from a western diet’.

‣ Citing as medical authority that ‘supplements are useless and/or harmful’.

‣ Citing as medical authority, without any study whatsoever, that a skyrocketing medical trend is ‘simply a matter of change in diagnosis’.

‣ Rolling out a major change in food technology for every human to eat 3 times a day for life, and then only testing that product on rats for 240 days after you have deployed the technology, and only after the stakeholder population started to complain of new and skyrocketing chronic, autoimmune and intestinal diseases.

‣ Rolling out a 68 event vaccine schedule without safety testing even one single vaccine injection at all, and then only conducting unethical linear affirmation studies of mild statistical observation of absences, in the wrong population of people, only after the population/doctors started observing skyrocketing related maladies in our children.

‣ Despite persistent observation or suffering by millions reporting direct personal or eyewitness experience, instructing the world as scientific authority and without any research, that ________________ does not exist.

‣ Instructing millions of ulcer sufferers that they were the cause of their ulcers, for doing _________________.

The assertions which served to precipitate these large-scale actual events of harm – these assertions constitute the real ‘extraordinary claims’. This is a core philosophy which drives ethical skepticism. It satisfies my soul to be able to apperceive, craft and teach this much needed philosophy.

The Ethical Skeptic, “Carl Sagan was Just Dead Wrong”; The Ethical Skeptic, WordPress, 11 Dec 2019; Web; https://theethicalskeptic.com/?p=41892

December 11, 2019 Posted by | Ethical Skepticism | , | 3 Comments

The Future of Ethical Markets

Ethical markets of the future will need bear additional factors necessary to deflect exploitation by cabal, cartel and mafia entities. Specific components of objective measure for risk, value and currency will need to be brought to bear. Things which serve to disempower those who draw down the majority of a value chain’s margin, yet provide the minority of its actual value.

I am currently involved in the creation of a new marketplace – the Herculean task of one of my development companies. The team which is taking on this challenge has deliberated at significant length and depth over the last few years, as to the ethical components which should be incorporated into this new marketplace’s functionality. This style of trade has not been practiced before, so we must step carefully and deliberately. The marketplace is targeting the Asian and Latin American regions, so not only do we need to be sensitive to cultural differences, but as well our product needs to reflect the particular business practices which are peculiar to those sourcing and demand environments. Accordingly, my team has met with numerous trading entities in an effort to grasp the detailed nature of their material trades; and as well, has conducted trades of their own, in order to understand the nuances, pitfalls and complexities wound up in those regions’ international trade of goods.

Yes certainly the price-to-quantity of the traded component or supply plays critically into any market transaction consideration. Price per quantity indexing and discovery (lower left of the graphic above) are all important functions in a marketplace. However, price and quantity are not the only factors which are actually traded inside a market. The critical value of effort, material or scarcity which is placed into or imbues the traded items, are essential in any pricing play. As well, the ‘skin in the game’ which both the offer and bid makers possess, must be fairly addressed inside any value chain of goods/services. These new market factors are being added into our trading platform, as shown in the graphic above and highlighted by the gold glow around those quantified and managed transaction measures. A utility token for stakeholder risk, and one for value provision – along with a supply chain which ships exactly what the customer has ordered, nothing more/nothing less – these are the critical praxis elements of the value chain of the future. The quality-history of the product in terms of its pedigree and pathway of provenance, these elements are to be traded inside the market of the future, and not simply price and quantity.

If one is placing their season, business or family at risk, then that entity should be rewarded with greater control of the distribution of profits inside their value chain. If one is committing to raw materials or supplies necessary in manufacturing a good, then they should be compensated for this value provision – and not be abused by monopsonistic or exploitative speculators/cartels, who control nothing but market access.

   Crony Driven Entities

   A cartel sells you your market access.
   A cabal sells you social or club legitimacy.
   A mafia sells you your own livelihood and/or life.

Intermediaries, who are simply conducting the equivalent of a phone call connecting two parties (supply and demand agents), or are performing nothing but a low-risk arbitrage/distributorship function in between, should be positioned as a lesser-value play inside a trade, all things being equal.  Today’s reality inside any given trading market is that intermediaries, because of the fog-of-trade on both the demand and supply side, draw down the lion’s share of profit margin available in the trading value chain.

It is the job of a flat ethical price-making market to offer the intelligence to the value provider and risk bearer so that those parties may discern this process:

   1. Know what value is
   2. Know what value is needed most
   3. Choose the highest need of the highest value
   4. Hedge the risk which achieves this.

The Crony creates a Fog of Trade, such that the value provider and the risk bearer cannot discern the above. That way they reap your value and hand you the unhedged risk. This in turn serves to creates a displaced grey market inhabited by the huckster, hustler and shyster. Consisting mostly of poseurs who wish to be real someday, but must cheat a little along the way in order to survive.

For instance, a factory which produces a product may only draw 12 cents of the margin dollar for a given product. Likewise the retailer who sells the product might draw down another 12 cents of its margin value. Intermediaries who simply connect the factory with the retailer, end up drawing down 76% of the available margin, simply because they have a vantage point which allows them to see the landscape on both the supply and demand side of the equation. A sophisticated market of the future will need to level this landscape and allow both the high-value production and high-value demand sides of the value chain to survey the entire market. It is one thing to eliminate the middle-man (in old retail lingo), but when the middle-man is both drawing down the super-majority of the available margin, and as well is obfuscating the information which its partner entities need in order to derive a healthy business on their own, then this backwards structure of market needs to be changed.

Today’s commodity futures markets in the West, as well as many food and bulk trades in Asia and the Americas fall victim to this type of intermediary ruled trade practice. The result is higher prices paid by trading principals, and higher costs borne by their citizens for simply basic products. The future of market trading platforms involves rectifying this imbalance in the value chain.

The Principal Ethic of a Value Chain

Margin performance must follow a provision of value and/or an assumption of risk, or inflation ensues.

Inflation is every bit as much a dilution of economic value, as it is an increase in prices.

When risk and value are ignored, three types of default trading member emerge, whether we want them to or not. The objective of an ethical market is to make value and risk manifest and quantifiable, so that these cabal/cartel/mafia entities cannot pull of their normal exploitation.

Huckster – sells value first and then price. A huckster differentiates or inflates a product value in order to obscure price performance.

Example:  A consumer goods toy manufacturer who only gives a discount if unreasonable amounts of units are purchased by their demand customer, who must then dump that excess inventory to the aftermarket, and subsequently damage their own brand through oversupply. Product dumping inflation ensues. eBay is flush with supplies of that toy as a result.

Hustler– deceives two parties as to value and price, as the go-between in a pseudo-transaction. Misadvertises to both parties that they have a value or price commitment from the other party.

Example: An intermediary tells a chocolate products manufacturer that they have a committed supply of cocoa bean from a producer in West Africa – and tells the cocoa bean producer that they have a proof of funds MT-799 and ICPO from a buyer. Neither is in fact true, and when the parties meet, trust plummets, and subsequently there is a low probability of transaction success. The most likely outcome of a hustle being that each party thinks that the other party, as well as the hustler, are fraudulent players.

Hustle Chain – a chain of agents and/or hustlers who in sequence make representations upline and downline to each other between a putative buyer and a seller (or value provider and risk undertaker). The longer the chain of such entities the more exaggerated or ‘certain’ the representations. A chain of eagerness or greed in which favorable information is spawned and unfavorable information is filtered out, in both directions. Value, capability and availability of the product are exaggerated as the ‘pseudo-offer’ is passed upline, while willingness, demand or ability to pay on the part of the bidder are up-spun as a ‘pseudo-bid’ coming downline. This type of unqualified principal or procedure-less pseudo-trade collapses 99 out of 100 times.

Shyster – sells price first and then value. A shyster blends, shorts, conflates or confuses product in order to obscure value performance.

Example:  A food distributor who delivers CIF shipments which contain a mixed blend of production lots which might or might not fail quality inspection individually, yet overall averages to an acceptable product quality. Human health suffers as a result.

We have all run into these types of entities in our past of course. But in a complex market, their presence and role may be obscured by the intricacies of the trades themselves. Their presence causes market inefficiency, friction and inflation. Their presence causes suffering. These players are the cabals, cartels and mafias who rule our information, news, currency, consumer goods trade, agricultural trade, food trade, electronics trade, material resource, equity markets, etc.

An Example of Exposed Corruption

In one particular former socialist country, now attempting to free itself from the heavy hand of its Bolivar masters, producers were fully unaware that the freight costs they were paying to ship their goods were a full 80% higher than their counterparts in neighboring free trade countries. This placed an extra $8 per unit (or 30%) premium upon their product globally. It made them non-competitive for decades. They were told that the ‘arrogant West just did not like them’ and refused to buy their products. They were unable to see this cost imbalance until they were afforded access (pro bono) to our market package.

This excess cost was strangling them collectively as an industry. Its burden carried by this nation’s producers because the logistics providers were the ‘only game in town’, as authorized by their nepotistic Ministry of Trade – and the fact that one of the ministers wanted to be very rich, at the expense of his nation’s entire group of producers.

There were some rather angry producers as a result of this learning experience. History isn’t kind to men who play god.

These producers bore all the value, as well as all the skin in the game. Meanwhile this Minster and his service-monopsony bore zero risk – zero value. This type of Crony activity is just sick, and boils my blood. I spend much of my life helping to topple unethical entities just like this (think skepticism as well).

This is the future – the ethical exchange of value, the ethical compensation for risk, an understanding of who the stakeholders are in the trade and commerce equation – and which parties constitute the undue and low value influences. Yes, we ‘cut out the middle man’ in some markets over the last 50 years – but we still have a long way to go, in order to make these principles the ethic inside of our broader world.

This revolution will apply to claims to ‘represent science’, medicine and governance in our future as well. A smart and informed stakeholder population is rising fast, and will demand no less. Nor should they.

The Ethical Skeptic, “The Future of Ethical Markets”; The Ethical Skeptic, WordPress, 3 Dec 2019; Web, https://theethicalskeptic.com/2019/12/03/the-future-of-ethical-markets/

December 3, 2019 Posted by | Ethical Skepticism | , , , , | Leave a comment

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