Wednesday, December 30, 2020

Managing the Herd With Digital Compliance - Vaccines Required to Open Bond Markets - Digital Platforms and Blockchain Will Eliminate Politicians (Except as "Window Dressing") - Governments Will be Handed Over to IBM, Oracle and Cisco - Human Capital Performance Bonds

Editor's note: One of the long term consequences of this global Covid fake pandemic under the rubric of the WEF's "Great Reset," is a restructuring of global capital markets. If you begin tracing the money back through predatory philanthropic organizations and their connections to major think tanks, corporations including technology firms and foundations, and who sits on the boards of these organizations, the outline of these new financial instruments called "human capital performance bonds" can be understood. All of this was well planned out many years in advance like for example Bloomberg setting up smart cities and Gates running the militarized narrative on vaccines.

Bloomberg Philanthropies to assist govt in selecting smart cities; work to begin soon

This is all part of this digital surveillance of the poor with these systems being dependent on digital identities that aggregate interoperable data. Interoperable data for example, would be your subsidized housing circumstances and how that impacts investments. Data is the new commodity. It is becoming clearer Covid will be used to scale up global surveillance systems using vaccines and biometric passports. The outlines of the coming biosecurity state are coming into clear focus.

The important part about these human capital performance bonds is that there exists no viable market for them. This means that a market will have to be "seeded" in order to sustain them. Economic conditions are moving to the point now that there will be no other option than to accept what is being set up here. There is so much money under control of these foundations and predatory philanthropic organizations, that in order to keep the capital moving they have to create markets. Once all those "good on paper investments" created all those toxic investments related to the real estate market that crashed, a new market was needed. That new market will be humans. The problem is the slave class cannot possibly purchase enough to keep this massive amount of capital flowing that is held by the top 1 percent associated with these corporations and central banks. The largest investment outside of real estate will be humanity so they need to turn humans into a bond market. 

These human capital performance bonds are being run through all the central banks. These bonds will then be tied into a global digital ID system. This is the shift we are seeing to digital currencies so that humans become investment commodities. It is likely the consequences of this are that people will no longer have agency over their own actions in the context of public good. The cities (usually under control of Democratic mayors) the slave class live in will be investing in these bonds will try to fix your socially destructive behavior like a drug addiction that will be called "pathways." 

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Let's say there are a people in a city with addictions to drugs. They will be placed on an "addiction pathway." Maybe it will be weight loss, so you are placed on a "weight loss pathway." Same with alcoholism or whatever your "problem" may be, you will be placed on a "digital pathway." Your compliance to whatever "pathway" you may be on will be forced through digital wearable technology that will lead to payback for global investors. These global investors aren't individuals, they are pension funds, Goldman Sachs, JP Morgan, the Saudi Sovereign Wealth Fund and the Vatican Bank. Can we honestly say that if a person is on a "drug addiction pathway" their behavior will improve to get off the drug addiction?

The key to unlocking these markets for these human performance bonds are the vaccines and the vaccine passports (digital identity) related to privatized social circumstances. The vaccines are really about establishing the structure of this digital tracking system under cover of this global faked Covid pandemic. The concerns about vaccines are certainly legitimate but the overriding motivation here is to open these bond markets. Like we mentioned earlier these bond markets have to be created and then seeded. All of this is related to the UN's sustainability program and what are the 17 SDG (Sustainable Development Goals) goals. If you take a look at the first three goals: no poverty; no hunger; good health, these will be tied into what are "social impact bonds."

All of this has to be placed on digital platforms otherwise the data cannot be scaled for each goal for the human capital markets. What happens if you are a political dissenter and are put on one of these "pathways" then offered up to impact investors? What we are seeing here is the incarceration of the entire world under this coming "Fourth Industrial Revolution" (4IR) and its "Great Reset." The world's population is being placed into a giant open air digital prison system with their related surveillance technologies including vaccines, transhumanism, biotechnology, A.I., IoT and robotics.

Once this data driven government is brought into existence it doesn't matter who is elected. The technocrats have long wanted to eliminate governments and replace them with technocratic systems like blockchain technology and digital surveillance platforms run by A.I.. The distribution of resources will come down to data fed into advanced algorithms. There is something coming down the technocrats "Great Reset" tech pipeline what are called a "Decentralized Autonomous Organization" (DAO).

DAOs are corporations written in computer code to carry out specific tasks according to the code. Once the DAO is coded it runs autonomously meaning that foundations and corporations can run on DAOs. What happens when there exists a private and public partnership and the partner is a computer? These DAOs will exist on the blockchain and all contracts will be known as "smart contracts." These smart contracts are a precursor to eliminating governments. All of these smart contracts that will be structured will at some point be mediated by A.I. technology.

In the following paper written by Steve Rothschild, what we read is mostly marketing and advertising flaunting the "benefits" of these bonds. Rothschild doesn't discuss the real beneficiaries: large investment pools; private equity firms; Vatican Bank; Goldman Sachs. These human performance bonds and social impact bonds were first introduced into the US by Michael Bloomberg through Rikers Island Prison (plans are to close Rikers Island Prison in 2026) as a test case.

As financial instruments they were too complex and burdensome. They mostly failed because not enough capital could be plowed into this test case. Apparently, what is going on here is connecting a profit center to a social problem. In other words, social problems of poverty, misery and crime are not sustainable. These plans will never work because what they are attempting to do is expand that social problem, profit off it and therefore only exasperating social problems.


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Human Capital Performance Bonds

Invest in Outcomes 

The concept of the "new normal" has infiltrated the thinking of policymakers, employers, and service providers. Brought about by demographic and technological changes, the new normal demands change: business as usual will no longer work.

For human service providers, the new normal poses some big challenges. Faced with tighter budgets, federal, state, and local governments are cutting back on discretionary programs, often human services. Ironically, these same human services, funded appropriately, could help remedy public budget imbalances over the long run because they deliver preventive measures and social change. Numerous studies have shown that the best human services programs deliver more in benefits than they cost: for example, early childhood learning, workforce training, post-incarceration programs, chemical dependency treatment, supportive housing, and counseling for long-term caregivers.

Social impact investing provides an answer to the question: How can we identify and fund those human services that improve the health of our communities over the long run and pay for themselves? Like traditional investing, it recognizes that certain social interventions provide financial gains to investors. Unlike traditional investing, it also provides improved social and financial outcomes to clients and taxpayers.

So far, activity is limited to a few places, and each place is moving forward with its own version of social impact investing. Great Britain launched its effort in 2010 with investments in its Peterborough prison. New York City recently began a pilot in its Rikers Island prison. Both Massachusetts and Minnesota have passed legislation for pilot projects, although implementation has yet to commence. Others, from Connecticut, Ohio, and California in the US to Australia, Germany, and the UK are developing other pilots. There are a variety of models of social impact investing, including variations on the social impact bond (SIB) and the human capital performance (HUCAP) bond. The HUCAP bond has two key design features that distinguish it from SIBs: (1) payment to social enterprises is based on their performance, and (2) it uses bond funds for capital.

In 2011, the Minnesota legislature passed the "Pay for Performance Act," which authorized the sale of $10 million in annual appropriation bonds to finance a HUCAP pilot project.

HUCAP bonds are based on the premise that many social enterprises create financial value from the social benefit they create. This financial value can be measured, captured, and used as a source to attract market-rate investors such as pension funds, 401k plans, and insurance companies to buy bonds.

Origins of the HUCAP Bond

The Minnesota HUCAP bond model is based on experience from a 15-year Pay for Success (PFS) contract between the Minnesota Department of Employment and Economic Development (DEED) and Twin Cities RISE! (TCR!), a workforce development nonprofit that provides intensive education and training services to difficult-to-employ individuals.

TCR! is paid only when a client is placed in a job earning more than $20,000 per year and where the change in their income is at least $10,000. The amount of TCR!'s payment is directly related to the economic value that the change in income created from higher income and sales taxes and lower public costs for low-income health care, child care, subsidized housing, and incarceration costs. TCR! is paid half at placement and half after one year of retention on the job. Over the last 15 years the state has enjoyed a return on investment (ROI) of more than 600 percent.

This long-term arrangement suggests that social outcomes can be defined, economic data can be measured, and providers can be rewarded on the basis of the financial value they create for the state from their successful interventions. It also suggests that high-performing social enterprises would benefit from this PFS arrangement.

HUCAP Bond: Starting with Performance

With the HUCAP bond, the government enters into contracts with service providers. The payment is not a fixed amount, but varies with the performance of the provider. The more financial value human service providers create, the more they are paid. Meanwhile, the state sells conventional bonds to create a pool of cash for paying the human service providers when they perform. As the state begins to reap the financial benefits, it sets these aside to pay interest, amortize the principal, and cover administrative costs (totaling approximately 13 percent per year for a 10 year bond). Because service providers get paid only if, and not until, outcomes are substantiated, a separate working capital fund will be established from which they can borrow.

Paying providers for the value they create encourages them to continually improve performance. The mere creation of a tool to measure ROI has workforce training providers asking, "What's my ROI?" Ideally, best practices will become known and disseminated to help all providers improve their ability to serve their clients.

Moreover, the common problem of "cherry-picking" (choosing to serve only the easiest cases because the payment doesn't vary) is diminished. Because providers are paid for their value-added, they will be compensated more for good results with harder to serve clients. In workforce training, for example, the outcomes are more dramatic for clients who have been out of the workforce longer, or incarcerated, or heavily reliant on public benefits.

Infusion of Capital into Human Services

The HUCAP structure is designed with state bonds1 for one primary reason—to facilitate the largest pool of capital investment, which is market-rate bond investors. By using a government bond, investors do not have to conduct due diligence about the service providers, or indeed, have any concern about their performance; it is the government's credit rating they care about. The use of state bonding takes advantage of existing structures for rating agencies, underwriters, and bond sales. This enables the HUCAP bond to minimize transaction costs, keep the cost of capital low, and scale-up to levels of investment commensurate with the opportunities identified. There are $3.7 trillion of municipal bonds outstanding in the US.

Major Shift in Budgeting Practices

The HUCAP bond also creates a major shift in the way governments budget. Using bonds to finance human services is an implicit recognition by the state that benefits often accrue over a number of years. For example, we don't educate five-year-olds because we hope they’ll be contributing members of society by the time they are seven. Government currently tends to underinvest in social services, because budgeting rules only recognize short payback periods. A 10-year bond enables human services to invest for the highest long-term social and financial return.

Budgeting also tends to take place in silos—that is, government budgeting is usually done at the agency level, without taking into account the costs or benefits from their activities that accrue to other departments. As the workforce training example suggests, costs and benefits can be spread over many agencies. With conventional budgeting, Minnesota's DEED pays for the services. But the Departments of Human Services and Corrections see reductions in their spending as a result, and the government's coffers grow from increased tax revenue. The HUCAP bond provides a way of accounting for all of these costs and benefits by accumulating all new revenue and cost savings across government agencies. The HUCAP bond will help public agencies see and act on the bigger picture impact of human services.

Third, the focus shifts from activity to outcomes. How can we identify and fund those human services that contribute to the health of our communities over the long run? Government budgets are notorious for funding activities (such as seat time for school children) rather than meaningful outcomes (such as how much did they learn or did they graduate). Part of the problem is that defining and measuring outcomes can be very difficult. It's no easy task, but it can be done, and part of the HUCAP bond pilot program will be developing and testing such a measurement system for a variety of areas.

Finally, the focus shifts from cost to value. There is a tendency to underinvest in more intensive services because they are more costly. Such budgetary decisions ignore the other side of the equation—what benefits are being created? Analyses of workforce training programs in Minnesota, for example, showed that programs offering more intensive services tended to produce superior outcomes. By measuring ROI instead of cost, the focus shifts to providing services with the highest returns to the individual, society, and taxpayers.

Read more at the PDF file
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Here comes the sales pitch. Rothschild was talking about the "new normal" back in 2011.


    

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