LFT: How to exploit neoliberal economic bubbles.

LFT: How to exploit neoliberal economic bubbles.

LFT – Lift Fair Trade www.lftaustralia.com. By Reuben Castro

1. Bubbles in chaos: Solutions beyond traditional banking. By applying this process to real-life issues we found innovative ways for us to (1) own a house sooner by reducing years of mortgage repayments; (2) reduce debts that can cripple rural economies, and (3) create communities of collaborating consumers, talented people and investors. LFT-Australia hosts a website from where you can learn with free education systems -or you can upgrade your participation, if you choose.

2. LFT: A project coordination system to profit from chaos. Feeds faster connections for a key trio of (a) investors, (b) property owners and (c) job-seekers, fostering synergies under fair-trade formats. Today it's an online system of education and follow-ups where members can trade fairly, reducing pressure, fear, anger and suspicion.

3. Debts: When it comes to help pay your debts, Einstein is useless. There are no equations for it. On top of this, information dispersion is  becoming a real issue in our time. LFT attempts to provide a simple solution, best described by a real-life example were my late mother’s farm was saved in the 1990’s.

4. Solution: Enable multiple crowdfunding sources to raise capital. How: Job-seekers brewed better jobs through the networks of property owners and from the support of investors to build an LFT-based-solution. When employed, the former job-seekers paid back for this service then emergency funds were created. What: from microcredits to microskills, we used skills as credits that could be paid in the future (as capital raising).

5. The problem: My bedridden mother facing debts and poverty. The first Trio consisted of (1) a property owner in a debt crisis, -my mother, (2) an unemployed job seeker -that was me, and (3) a micro-lender.

6. The opportunity: Properties facing debt crisis. Designing a system to reduce risk while increasing resilience was awaited by generations. LFT started with real estate but it grew into other types of properties such as digital and virtual after the 2007 GFC.

7. Technicalities: Filters and coordinations. (1) The algorithm filtered inefficiency from real-time actions. (2)  Information was only available for those actively involved in the system. (3) With LFT's basic coordination practice the trio reduced bottlenecks by filtering time wasters, red tape, useless data, trouble makers, traitors, careless dreamers and lazy people; making reasoning faster and effective.  

8. Collaborative view: Efficient coordination. (1) The trio started negotiations for a fair-trade contract to protect them. (2) Thanks to the investor, a program was built; the property owner opened a network; and the job-seeker helped to crowdfund. (3) Each one promised full collaboration to help one another.

9. Axis: Creation of robust leverage to survive. An epistemological review of Archimedes' lever was conducted, Give me a fulcrum, and I shall move the world. There are 3 parts of a lever system: (1) the lever arm, (2) the fulcrum -pivot point, and (3) the load. A coordination system or ‘tool’ was needed.

10. Tool: Communicate efficiently with one another. We took principles of fair-trade one step further, making it possible to (1) reduce debts, (2) attract investors to cover coordination cost, (3) invite individuals to use the program as a jobs-hunting tool. (4) obtain 10% from the key trio if the program proves useful; and (5) in this way, create  an “emergency fund” (a self-sustainable system) to help the property owner.

Material Effects that were achieved

11. Results: Openness and collaboration. The trio worked together in a fair way making it possible to (1) rescue the property owner giving her 10 more years of life, (2) find job experience that helped the job-seeker land a job -who then travelled the world as a digital investor, and (3) provide returns to the micro-lender, jumping her initial $750 up to $2,625 (350% increase).

12. Applications: Time, collaboration and poverty focus. (1) The creation of employment in rural areas; (2) diversification of economies following fair trade systems, (3) liberation of closed systems inhibiting knowledge; and (4) impacting on the arbitration platforms for foreign debts that keep 'poor countries' poor.

13. Implementations of gained leverage: Above beliefs and miseries of Neo-Liberal and globalisation policies. Its AI (artificial intelligence) horizon evolved, nano-Economics was actually growing into macro-Economics! To earn more credibility and legitimise the process, I accepted invitations from 5 different bodies: (1) a group of 150 cooperatives, from whom I obtained my first general manager job; (2) an university council of 8 countries, which increased the implementations in a market of over 10 million people and greatly helped the property owner; (3) international cooperation groups linked with German agencies, The UN's Economic and Social Council (ECOSOC), The International Red Cross and Scientific Societies; (4) a government's Ministry of Economics, which obtained Europe's attention for us, and eventually the curiosity of (5) trade fair businesses, such as Messe Frankfurt GmbH, 'one of the world's largest trade fair companies with 537M Euros in sales'. Only then did real cash start to come in. The rest is history, a coordination history!

14. Evolution: LFT is based on biocybernetics and genetic algorithms. Among others, it includes epistemological and systemic works from Santiago Ramon y Cajal, Ignacio Ellacuria, Aaron Swartz and Srinivasa Ramanujan. A neuroscientist, a theologian, a programmer, and a mathematician who inspired the “inverse wall street program” at LFT-Australia: ‘funding rural business innovation’ in an infinite expression, creating 'emergency funds' through the 'trio model'.

15. Coordination: Finding the best trio connection is the key. By 1994, the collaborative trio of participants increased their leverage through the production of legal documents protecting the participants’ involvement and using what was going to become the online LFT-Australia’s coordination system, a pivot point for people keen to work together. Fast forward to 2009 - real estate properties worth many millions of dollars, started to request support using LFT. They sought to be linked with the right trio options. It eased their path to finally manage their financial issues by supporting the other part of the 3 players who had projects, software, virtual and digital ideas/properties.

16. Farms: LFT founders decided to retire from the global arena. We work with the middle of those major issues in Australia. We deployed it into the basics: “work with local farms and traditional groups who agree with supporting talented people and fair trade investors”. At the time of writing this article (June-2016) farmers are using LFT-Australia as their main tool to avoid debts or pay debts down.

To learn how to reduce your debts and achieve liberation from them go to www.lftaustralia.com. View glossary for terminologies.

GLOSSARY

Some terminology linked to this article – mostly from Wikipedia:

Algorithm: in mathematics and computer science, an algorithm is a self-contained step-by-step set of operations to be performed. Algorithms perform calculation, data processing, and/or automated reasoning tasks. The words ‘algorithm’ and ‘algorism’ come from the name al-Khwārizmī. Al-Khwārizmī (Persian: c. 780–850) was a Persian mathematician, astronomer, geographer and scholar.

Biocybernetics: an abstract science and is a fundamental part of theoretical biology, based upon the principles of systemics. Is the application of cybernetics to biological science, composed of biological disciplines that benefit from the cyber application including neurology and multicellular systems. It plays a major role in systems biology, seeking to integrate different levels of information to understand how biological systems function.

Chaos theory is the field of study in mathematics that studies the behavior of dynamical systems that are highly sensitive to initial conditions—a response popularly referred to as the butterfly effect This behavior is known as deterministic chaos, or simply chaos. The theory was summarized by Edward Lorenz as “Chaos: When the present determines the future, but the approximate present does not approximately determine the future”.

Cybernetics: relevant to the study of systems, such as mechanical, physical, biological, cognitive, and social systems. It is applicable when a system being analyzed incorporates a closed signaling loop; that is, where action by the system generates some change in its environment and that change is reflected in that system in some manner (feedback) that triggers a system change, originally referred to as a “circular causal” relationship.

Economic bubble: sometimes referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, a speculative mania or a balloon is trade in an asset at a price or price range that strongly deviates from the corresponding asset's intrinsic value. It could also be described as a situation in which asset prices appear to be based on implausible or inconsistent views about the future.

Epistemology: studies the nature of knowledge, the rationality of belief, and justification. It centers on four areas: (1) the philosophical analysis of the nature of knowledge and how it relates to such concepts as truth, belief, and justification, (2) various problems of skepticism, (3) the sources and scope of knowledge and justified belief, and (4) the criteria for knowledge and justification.

Fair trade: the trade between companies in developed countries and producers in developing countries in which fair prices are paid to the producers.”    

Foreign debt: is the total debt a country owes to foreign creditors, complemented by internal debt owed to domestic lenders.

Genetic algorithm: is a search heuristic that mimics the process of natural selection. This heuristic (or metaheuristic) is used to generate useful solutions to optimization and search problems.

Infinitary logic: infinitary logic is a logic that allows infinitely long statements and/or infinitely long proofs. Some infinitary logics may have different properties from those of standard first-order logic. In particular, infinitary logics may fail to be compact or complete. Notions of compactness and completeness that are equivalent in finitary logic sometimes are not so in infinitary logics. Therefore for infinitary logics, notions of strong compactness and strong completeness are defined.

Infinite expressions: in mathematics, an infinite expression is an expression in which some operators take an infinite number of arguments, or in which the nesting of the operators continues to an infinite depth. A generic concept for infinite expression can lead to ill-defined or self-inconsistent constructions (much like a set of all sets), but there are several instances of infinite expressions that are well defined.

Macroeconomics: the branch of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.

Nanoeconomics: is defined as the economic theory of single transactions. The term was proposed by Kenneth J. Arrow in 1987. The term has also been used to describe a level of analysis below traditional microeconomics, and to describe the economics of nanotechnology.

Predatory lending: is the unfair, deceptive, or fraudulent practices of some lenders during the loan origination process. While there are no legal definitions in the United States for predatory lending, an audit report on predatory lending from the office of inspector general of the FDIC broadly defines predatory lending as “imposing unfair and abusive loan terms on borrowers.”

Systemics: In the context of systems science and systems philosophy, the term systemics refers to an initiative to study systems from a holistic point of view. It is an attempt at developing logical, mathematical, engineering and philosophical paradigms and frameworks in which physical, technological, biological, social, cognitive, and metaphysical systems can be studied and modeled.

Acknowledgements

Santiago Ramón y Cajal (1852–1934) was a Spanish pathologist, histologist, neuroscientist, and Nobel laureate. His original pioneering investigations of the microscopic structure of the brain have led to his being designated by many as the father of modern neuroscience.

Aaron Hillel Swartz: (1986-2013) was an American computer programmer, entrepreneur, writer, political organizer, and Internet hacktivist. He was involved in the development of the web feed format RSS and the social news site Reddit.

Ignacio Ellacuria: (1930-1989) Ellacuría’s academic work was an important contribution to “Liberation Philosophy”. It focuses on liberating the oppressed in order “to reach the fullness of humanity”. Ellacuría was also a strong supporter and contributor to Liberation Theology.

Srinivasa Ramanujan: (1887-1920) During his short life, Ramanujan and indian mathematician, independently compiled nearly 3,900 results (mostly identities and equations).Nearly all his claims have now been proven correct, although some were already known. His original and highly unconventional results, such as the Ramanujan prime and the Ramanujan theta function, have inspired a vast amount of further research.