What do Ellen Pompeo, Warren Buffet, Jamie Dimon, Jeff Bezo understand that outcome-based, legacy style systems (conglomerates and more) signal they don’t yet understand?

In terms of power » it all moves like healthcare now » first ‘do no harm’…

we see harm often begins with a lack of self-awareness » which breeds self-deception » which leads to hammering away and other selfish behaviors » this ‘self-deception cycle1‘ moves in known patterns; first gradual, then suddenly…

[dear receiver (dr):2 all links are relevant…]

tactical insights =

∞1 Ms. Pompeo, Messrs. Buffet, Dimon, and Bezo have demonstrated they understand how power in the physical world moves

∞2 the effectiveness of the legacy style of power (outcome-based order and more…) is rapidly evaporating » most recently exampled by conglomerate news…

∞3 we sense a new spontaneous order is surfacing through an emerging mesh peer environment which is filling the power vacuum being created by the outcome-based order’s departure.

∞4 what is an outcome-based individual, institution, or industry to do? we find honing one’s tactical signaling skills a great place to start…

∞1 changing context calls for updating personal worldview

Do you ever feel like your world is more and more, at an increasing rate, like a box that is collapsing in on you? The “box” is that set of internal rules and accepted norms we all create to make life simpler. Sometimes called your worldview; these rules are often undefined, unstated, and only implicitly recognized as even existing. The tentative creation of these rules come from repeated observations and perceived patterns that appear to have passed the multiple tests and acceptance of time. The new rules are then added to the existing rule set to create a personal worldview.

These rules are incredibly useful for short cutting the decision process and making life simpler. For example, take the rule that if it is 30 degrees F outside, you should grab a winter jacket on your way out the door. Once you have adopted this rule, you have simplified the decision process to just monitoring the weather. Once the temperature criteria has been reached, your decision is pre-determined and automatically made without further thought. Similar rules are created to make life simpler in the business world. One such rule is to avoid owning or selling bonds when interest rates are low.

Both the jacket and bond examples are obvious rules the validity of which few of us would disagree. However, we have all developed many not so obvious rules that have been adopted with the same degree of certainty by the holder of the rule. Such an example occurs when one ponders the intelligence of our current President of the United States. The country seems equally divided as to the rules that should be applied to assess President Trump’s intelligence and that the other side’s rules are invalid. Regardless of your political position, the biggest mistake made by many is failing to recognize when new data and observations conflict with the old rules. The biggest challenge for people is to admit when new data and observations compel abandonment of old rules and creation of new rules.

There is a general sense that change is coming, but the next step is far from clear. Agnetic realizes that fear is created when there is a conflict between beliefs already held (rules) and the reality being observed. Instant communications, networks of people and machines, the internet, and the security of blockchain technology make conflict an inevitable event. These technological changes have caused the speed of decision making to increase many fold, relationships to move from sequential one to one interactions to simultaneous interactions with a network, and the diminished need for 3rd party trusted sources. Old rules and processes are falling apart with these new realities; new rules are clearly needed.

∞2 as new rules surface, the power of old rules evaporate…

Time ∞ space ∞ power…the basic relationship

The basic relationship between these three fundamental interactions has flipped, is flipping and will continue to flip ‘uncontrollably’ on their own » and that’s OK » it’s the way the world has always worked » as for us humans, we can utilize the OODA Loop3 to create value for us as individuals, as institutions, as industries, and more…

This is a holistic approach to interacting with power by holding the No Malice℠

synthesizing of the interactions of time ∞ space ∞ power

separate from

analysis, or the quantification, of new stuff that rises and old stuff that dies off resulting in the

flipping of time ∞ space ∞ power.

At this fundamental space a relevant first question is: Where do interaction rules come from? For many around the world they come from the school they attended. Many of these schools train their students to interact with the physical world in the classic linear ‘learn » understand » act’ sequential process.

Among the many problems with this classic approach4 education, we see it places people out of step with the physical world, and traps us hammering away within this legacy groupthink, serial style of learning and outcome-based planning problem-solving.

power decoder: to see an intense example of legacy groupthink and the problems it causes » look for “Christopher Steele” below…

∞3 so what to do?

To make room for new human interactions and fact patterns forming through developing 1) data streams, 2) mathematics (algorithms…), 3) artificial intelligence and more…, we suggest to hold space for something more than the industrial age, outcome-based worldview groupthink on how the world should work and adopt what has proven to work every time it is tried.

‘It’ is known by many names, most broadly as ‘common sense’. It’s a tacit understanding, an unabashed wisdom that understands how power moves in the physical world. We don’t define it, it defines us as we come alongside and get in step.

So how does it work?

by design…

power decoder: “by design” we mean: The gathering of balanced data ∞ perception ∞ decision ∞ action making.5

demos, not mere examples…

We strive to demonstrate or show how power moves, not illustrate a static rule or example. When dealing with the physical world there is a profound significance to be found in such subtle differences.



∞4 time » seen moving (signaling) with the physical world developments we see…

from Ellen…

  • the effective use of “active patience” or the ability to direct one’s energies to defeat an adversary and survive6

  • an individual from the fringe making her way to the center of power, where that center of power continues to use an atmosphere of gentility to both mask a collective climate of self-deception, and ignore the development of multiple variants of selfish behavior among individuals, institutions, and industries.7

  • she then created a space in time, and a place to work out for herself, what does and does not work. This space was created so she could wait for those power fundamentals to shift ever so slightly, even though she had no direct individual control or indirect shaping influence, so she could do something about it.


∞5 time » seen ‘hammering away’ developments we see…

the “abcd club” of grain traders8

  • a prime example of ‘missing something’:

    • how their unique position in 20th Century ‘supply chains’ could have been, may still be, able to establish a healthcare industry leadership position by, inserting new thick ∞ big data centric value creations…
      • timeless is the one characteristic that is found in all types of harassment.
        • we think former U.S. Deputy Assistant Attorney General, Department of Justice James Griffin expresses it well:

          “initially the harm is felt by the initial “purchaser, farmers but ultimately at some level, every one of us “feels/”felt the pinch” of this cartel…” » more here

      • how this type of harm carries no timelines and can be felt and/or acted upon more broadly in ways other than first expected is seen in other areas of the harassment spectrum…

more broadly across other agricultural and food sectors affected by the 2018 Farm Bill**


tactical insights in terms of time interacting with the physical world and seen hammering away

∞1 harassment’s spectrum is so wide, it can be hard to spot  »  it can range from the intensely powerful on the personal level (physical, sexual and emotional) to the indifferent and mild at the institutional level, it becomes so much a way of life for many people » to the level, not to partake as humans, was thought of as missing out » with today’s omnipresent smartphone’s ability to ’see something ∞ say something’  » this is no longer the case…

∞2 an important tactical power theme we see is Ellen did not have to resort to “leverage”, or at least the the direct power form of leverage and “personal platform” most  in today’s society understand the term to mean…

∞3 throughout the article there are times when Ellen found injustice or situations where she did not have enough individual power to make her move. In each case, where she could not directly control, she didn’t roll over, or collapse in acceptance.

∞4 In Agnetic’s terms, she “harnessed the power of active patience” to develop a set of tactical responses and actions she could implement when the overall environment, which previously would have locked her in place, changed. Thus, creating for herself the agility to move with the changes in such a way that increased her ability to move in the physical world.

∞5 Grocery Manufacturers Association’s (GMA) in similar fashion with the global grain traders »  over the last ±40 years, as the cost of data generating technology dropped and the amount of streaming data, information and wisdom wove together, power through data management flipped from humans to software. New power confluences formed. 

At the basic level, the speed and intensity of the data streaming in has had captivating implications. This has happened before, and will again, as two supply firms form opposing sides.  

a) Those closest to the physical world, in this case the branded food companies, are caught in a ‘double-fix’ situation of their own making.  In order to meet the leveraged financial obligations used to secure manufacturing facilities large enough to reach efficiencies of scale, used data streaming for defensive purposes. In short, they built in an inability for change. They leveraged financial and logistical power, which in turn, virtually eliminated the direct power interaction with the consumers.

b) Those closest to the consumer’s world whose environment included regular, if not daily, interactions with the consumer: grocery, restaurants, and more… These firms used the data streaming power flip to create consumer interaction environments that reduced, at least from the consumer’s point of view, friction and waste. 

Interesting enough, as has happened before, and will again, a third party that originates outside classic 20th Century supply chain ‘snake and mongoose’ power relationship of ‘supplier’ and ‘consumer’, and the ‘zero sum game’ that comes with such atmospheres, has ’unexpectedly developed, and ‘come out of nowhere’, and ‘isn’t following the rules’ and other ‘anticipated historical events’. 

We are referring of course to Amazon buying whole foods. Amazon entering into healthcare (yet another classic ‘snake and mongoose’ 20th Century ‘supply chain’ power pattern) is, in agnetic’s worldview, at the most basic power level ‘an anticipated historical event’ in that a 20th Century ‘supply/value chain’ player is bypassing the waste and friction of financial and logistical (direct) power and leading with analytical, biological and social (indirect) power to aggregate consumer demand, so as to update industry capabilities, not to mention the business model/operating system’s perception, decision and action making or ‘rules’, and more…

what do you see?



∞6 space » seen moving (signaling) with the physical world developments we see…

from Ellen

  • “Here’s the thing: You have a choice. You can hold actors down and try to control them, but it kills their spirit and they resent being there. When I’m directing an episode, as soon as I get the script, I give it to the actors. They usually don’t get them until the table read, but of course they want it sooner. Then I let them come to the casting sessions and make them feel part of the process; I get so much more out of them that way.”
    • agnetic’s take: Ellen had ‘designed active patience’ » a necessary precursor to being able to move quickly when the opportunity presents (when power moves…)

Farm-to-table comes to a Louisiana jail

  • “The warden said since the prison started feeding farm vegetables to inmates, the jail has spent less on medicine for hypertension and diabetes. And, she said more inmates have signed up for things like GED and anger management classes. She can’t prove those changes are entirely due to the farm, but the warden believes they’re directly connected.”
  • “Olivier is 32 and finishing up a sentence for possession of a firearm. That’s illegal because he was previously convicted of a felony. Seeing other people eat what he grows feels really good, he said. A bigger impact is how the farm has changed how he sees everything. “I’ll be riding down the road, going back to jail, and see trees and wonder how long they’ve been there,” he said. “Makes you think. It’s all living things. Comes from nothing really.” He said it makes him consider getting a book to “find out where everything really comes from.”

Our working number for under-deployed working capital is $3 Trillion. It’s a classic ‘how fast’ compare and contrast tactical dilemma that flips the value of an asset from ‘valuable’ to ‘commodity’ status faster than institutional decision and action making cycles…

  • U.S. tax overhaul may drain $2 trillion from foreign projects: U.N.
    • like a weather system that gathers over one region of the earth, and then interacts with a second region of the earth to effect yet a third region’s climate, this tax overhaul has global implications
    • specific example – Cisco: We’re moving our $67 billion cash pile to the U.S.

      “Another mountain of money is being brought home to American shores following the new tax law — and much of it will end up in the pockets of investors.” [dr » and then what?…]

  • Private Equity’s Capital Avalanche

    • “A total of 921 funds secured a combined $453 billion in investor commitments — a figure that Preqin said could grow by up to 10 percent as more information becomes available.”

      The previous fundraising record was set in 2007, when 1,044 groups raised $414 billion. Investors have been shoveling increasing amounts of money into the asset class over the last three years, and dry powder — underployed committed capital — snowballed to $1 trillion-plus for the first time in December. [dr: emphasis agnetic]

  • When Apple’s Cash Comes Home*

    • “While multinationals may be less inclined to sell their corporate bonds, at least initially, the impact could be more acute, analysts say. In recent years, firms such as Apple and Oracle Corp. have become some of the top buyers of company debt. Apple alone holds over $150 billion in the bonds, exceeding even the world’s biggest debt funds. The market itself is also less liquid, which means it takes far less to move the needle. Big corporations could dispose of a “few hundred billion” dollars of their total debt investments, said Aaron Kohli, strategist at BMO Capital Markets.”
      • [dr » here we use the article’s title used in the January 22, 2018 Businessweek magazine » the online version is entitled “Beware the $500 Billion Bond Exodus” » our review shows the same content is used for both the online and paper magazine version…]

∞7 space » seen ‘hammering away’ developments we see…

The Real Reason the U.S. Has Employer-Sponsored Health Insurance”

  • “Most insurance in the first half of the 20th century was bought privately, but few people wanted it. Things changed during World War II. In 1942, with so many eligible workers diverted to military service, the nation was facing a severe labor shortage. Economists feared that businesses would keep raising salaries to compete for workers, and that inflation would spiral out of control as the country came out of the Depression. To prevent this, President Roosevelt signed Executive Order 9250, establishing the Office of Economic Stabilization.”
  • “This froze wages. Businesses were not allowed to raise pay to attract workers.Businesses were smart, though, and instead they began to use benefits to compete. Specifically, to offer more, and more generous, health care insurance.Then, in 1943, the Internal Revenue Service decided that employer-based health insurance should be exempt from taxation. This made it cheaper to get health insurance through a job than by other means.”
  • “Without much pressure for change, it’s likely the American employer-based system is here to stay. Even the Affordable Care Act did its best not to disrupt that market. While the system is far from ideal, Americans seem to prefer the devil they know to pretty much anything else.”

Who is Christoper Steele?

  • “and show how badly the FBI got snookered.”
    • “To be sure, the FBI should have known better. Even if Mr. Steele had previously been helpful, the bureau had every reason to be wary in 2016. This wasn’t like prior collaborations. He was coming to the FBI as a paid political operative, hired by Fusion, as a subcontractor for Hillary Clinton’s campaign. Opposition researchers are not retained to present considered judgment. They are retained to slime an opponent and benefit a client.”
    • “But rather than proceed with caution, the FBI swallowed the whole package.”
    • “The FBI also had reason to view his research with skepticism—on grounds of its tabloid-like allegations, and also on the near-fantastical claim of skill that underlay it. To wit, that a man who had been out of official spy rings for seven years was nonetheless able, in a matter of weeks and with just a few calls from London, where he lives, to unravel an international conspiracy that had eluded the CIA, FBI, MI6 and every other Western intelligence agency, all of which have access to the globe’s most sophisticated surveillance tools.”

The $10 million question: Who put Muncie schools into a tailspin?

  • “”If I would have sensed a desire or willingness to fix the problem, I may have stayed,” he said. “The magnitude of the problem was not the reason I left. It was the players and the attitude of the community, such bitter resistance to hearing what I said. They didn’t believe what I said. Obviously, I know what happened since then. Reality has smacked them all in the face.”
  • “State Board of Accounts audit reports show the district had $14.3 million in cash in all 120 or so funds on June 30, 2014 (the end of the district’s fiscal year). But $9.9 million of that cash was from just one fund: the bond issue.”
  • “In a separate interview in December, Burkhart said of the bond revenue, “I think the issue is, it’s being used by the district for cash flow … At some point, when the general financial condition of the district is stabilized, that $9.3 million will be available to spend. Let’s say over the next couple of years that cash balance builds up and the negative balance is eliminated, there would be access to that $9.3 million.”
  • “In the early 1990s, enrollment in the district was 9,223, and district employment was 1,974. When Burkhart retired, enrollment was 6,115 and district employment was 1,381. In other words, during Burkhart’s four decades at the school district, it downsized as the city’s industrial base withered, enrollment declined, property tax caps were enacted, and the state changed the school funding formula. But according to Michael Hicks, a Ball State economist, the district failed to “right size.””
  • “The district’s financial woes continued to worsen after Burkhart’s exit. The cash balance in all funds dropped to $8.3 million on June 30, 2016, and to $4.4 million on June 30, 2017. There remained more than $9 million of capital projects waiting to be started on those dates. The work still hasn’t started as of today. The financial picture actually looks worse than that. According to a biannual financial report Burkhart would have filed with the state, the district’s expenditures for the year ending June 30, 2013, topped receipts by about $5 million. Receipts exceeded expenditures by about $1 million in fiscal year 2014, but in fiscal year 2015, Burkhart’s last, expenditures again eclipsed receipts, by about $4 million. Burkhart told The Star Press that at the time of his retirement, the district had 100 or more funds. “You would not have 100 different checking accounts,” he explained. “It’s not practical. You have one major checking account for most if not all funds. That is a common practice.” But on page six of the school board’s April 8, 2014, resolution authorizing the $10 million bond issue, there is a paragraph that reads, “The proceeds of each series of bonds shall be held in a separate account of the School Corporation and all interest earnings on such proceeds shall be transferred to the Debt Service Fund and used to pay interest on the bonds.””
  • “Backers of Superintendent Baule say his predecessors ran up the school district’s deficit while he is the one being run out of town — due to his aggressive efforts to tackle the budget deficit, including school closings and hard bargaining with the teachers union. The union has accused Baule and the current school board of “slash-and-burn” deficit reduction tactics. There was a campaign led by a retired MCS educator to get Baule fired. Baule’s three-year employment contract ending June 30, 2018, was not renewed by the emergency management firm. “Dr. Baule has been a great change agent,” the latest CFO, Bob Coddington, wrote in his letter of resignation recently. “It is disappointing to see the programmed, systematic character assassination of him.”
  • and more…

tactical insights in terms of space interacting with the physical world and seen hammering away

∞1 in general #1: we see what Harvard University’s Professor Steve Pinker sees: “The U.S. was founded on the Enlightenment ideal that human ingenuity and benevolence could be channeled by institutions and result in progress. This concept may feel naive as we confront our biggest predicaments, but we can only understand where we are if we know how far we’ve come.” and “The Enlightenment is working. Our ancestors replaced dogma, tradition and authority with reason, debate and institutions of truth-seeking.”   » we also see something more…

∞2 in general #2: we see the changing context is key as more and more people are updating their world view when it comes to relying on institutions to update themselves  » hardest hit are those who personal worldview rulebook holds institutions as infallible and always worthy of being given the benefit of the doubt  » when public scrutiny is the pruning many institutions failing-to-keep-up need.

∞3 Louisiana jail food: do these food ∞ medication links need to be analyzed? » yes » but does anyone think the inmates shouldn’t be eating their vegetables in the mean time?

∞4 the implications of ±$3 trillion dollars seeking a place to invest #1:  Yes, that is a Trillion with a capital “T”. It is hard for anyone to comprehend that much cash hitting the marketplace. Even the most successful of the old “aggregation of power through the aggregation of stuff” investment model are currently being seen investing in new ways, with new partners, so as not to be seen ‘missing something‘.

∞5 the implications of ±$3 trillion dollars seeking a place to invest #2:  In our view, this is a flip in the prevailing atmosphere of the investment power pattern of scarcity to bounty .. happening at a pace most conventional institutional investing climates don’t yet comprehend » this institutional level ‘missing something‘ increases the likelihood of the effectiveness of the conventional individual investment environments, also known as the ‘aggregation of power through the aggregation of stuff’ will be overtaken (done under, lose out to, implode, be swept away, collapse, and more…) by the rapid rate of these large amounts of under-employed capital coming into the federal, state and local economies. 

∞6 the implications of ±$3 trillion dollars seeking a place to invest #3: With the above power insight, one begins to understand why Messrs. Buffet, Dimon, and Bezo has joined IBM, IMF, CBOE, Goldman Sachs and more ‘to get out ahead of what’s coming. By moving out of their conventional box early, they won’t drown in the flood of power unleashed by the never before seen combination of distributive technologies and the ±$3T coming at their inadequate box of institutional conventions, and more…

We see self-deception as the key friction involved. How does it work? What does it look like? Good questions, but not yet relevant. What is relevant is how does all this move? 

It moves in known patterns of how power moves in the physical world:

“the dynamic flux of surges, purges, progressions and more…”

Or as Ernest Hemingway wrote of going bankrupt: “gradually and then suddenly.”

∞7 employer healthcare is an example of an over-reliance on static rules that made sense, but have failed to keep up  » in this case “static rules for static jobs…”

∞8 the FBI’s handling of their interaction with Christopher Steel is yet another “people over-relying on 20th century institutional rules as being sufficient in today’s world, and more…”

∞9 Muncie school system: the tactical focus here is the affect the extended timelines in each of the many phases in all “gradually, then suddenly” power system collapses has on the individuals, institutions, and industries involved…

what do you see?



∞8 power » seen moving (signaling) with the physical world developments we see…

Ellen’s power moves

  • notions: she used technology’s quantitative data to provide a new perspective on her (social) relationship (“what she deserved”) to her financial role (id’d Disney’s profits in ratio to her compensation). She used one factor (analytical) to “see better” the relationship of two other factors (financial and social). She had the interactions of all three to use in her negotiations.
  • She gained a self-awareness through the observations she had while being an active participant in the cycle of self deception and selfishness (“It was a lot of rivalry (on the set), a lot of competition. It starts with actors behaving badly, and then producers enabling them to behave badly. And, by the way, I’m guilty of it, too. I mimicked what I saw.”). When she became a producer/director (could make decisions and act) she saw she had a choice on how she would relate to the actors. She chose coming alongside of them as peer designers.
  • Opportunity to introduce transparency in the right context as a power move. “Actors typically hate discussing their paychecks in the press, but Pompeo, a married mother of three, has chosen to do so with The Hollywood Reporter now in the hope of setting an example for others as women in Hollywood seize a new moment of empowerment and opportunity.”

∞9 power » seen ‘hammering away’ (signaling) developments we see…

  • holding space for ‘hammering away at the margin’ vs pruning the center to hold space for growth…
    • typical of 2nd and 3rd generations

      Nearly 24 years has gone by9 and not much has changed in terms of how power gets done within the agricultural production and processing industries that touch most people on the planet.

      The people have most certainly changed10, and the way they deal with their operating environment has changed11 » it is obvious the one thing that shareholders, workers, farmers, automobile drivers, eaters, and others who count on the industry for their livelihood, need the most, sadly, has not change all that much » do we really want the people who brought us high fructose corn syrup, ethanol, and more, plus view themselves as “feeding the world” >> » to keep hammering away?

      1. might say an overall atmosphere lacking in self-awareness » most noticeably in the digital environment » resulting in an institutional climate of self-deception12. Once again, we see an example of the use of debt to buy-out a rival, not as a leading move of strategic strength, but rather as an ‘oh-oh we better jump on this and fast (anybody remember the failed GrainCorp bid?) before we miss something knee-jerk style of decision-making, and there is more…

wait for it…

wait for it…

wait for it…

  • Self-appointed monarchs (in this case yet another set of conglomerates13in the middle leveraging their self-anointed privilege to act as if they are not being seen by others » in the smartphone enabled 21st Century no less…
    • “An arrangement that sees Glencore take Bunge’s North American business, say, while ADM carries off Latin America, might create value for both bidders.”
      • …and there it is, we have been waiting for it, “an environment of selfish behavior of an individual, institution, industry”.
    • More ‘man with hammer‘ examples:
      • “Juan Luciano, ADM’s chief executive, has in the past year raised doubts about expanding his company through big-ticket acquisitions. “We have the balance sheet to do acquisitions. We just don’t feel that the acquisitions today are priced at the point that we will make the proper returns,” he said at a conference last May.” [dr: Financial Times Newspaper’s paywall linked article here.]
      • “Just three months ago, though, ADM chief Juan Luciano said the company would reduce capital spending on oilseed crushing and increase spending on higher-margin businesses, such as food ingredients, “in support of the growth portion of our strategic plan.”
        • Even to the casual observer, much less an institutional investor, this has to be received as a power signal that is not to be ignored…
        • So is this a “tactical step” or “signal a strategic shift”?
        • Such is the position one finds themselves in every time ‘outcome based planning’ is tried when encountering the physical world…
      • …”Condensing the agricultural trading market from four major players to three sounds like antitrust poison.” [dr: Indeed!] “Yet it’s not necessarily a killer.”
        • [dr: similar to the debate over the effects of how glyphosate, the chemical tied to GMOs, affects microbial soil life’s health, the potential toxicity to the human interactions within the company will continue to stagnate information, interactions and innovation, both within the company and those needed to help the company overcome the frictions to their structural waste.]
      • the answer to any problem seems to be the over-reliance on an outdated notion of the power of ‘super efficiencies’ to mitigate risk vs data centric tactical and strategic decision flows to guide power moves…
        • “What’s clear is that an ADM-Bunge blend could cut costs – and it would need to. Farmers’ habit of storing grain rather than selling it at the going price is making it more difficult for big traders to generate a proper return.”
          • Betting on operating cost cuts to effectively deal with strategic structural shifts in the market place like the rise of on-farm storage, big data, the Internet, not to mention the major human interaction shifts on the horizon via the blockchain is, well…
      • we agree with Craig Pirrong…”Why Are ABCD Singing The Blues?
        • “So, I am not satisfied with the conventional explanations for the big ag traders’ malaise during a time of plenty. I conjecture that the traditional players have been most impacted by changes in the spatial pattern of production that have reduced the derived demand to use their assets, which are more heavily concentrated in legacy production regions facing increased competition from increased output in newer regions.”

          [dr: Indeed!]

      • Over leveraging leverage

        • Buying Bunge would allocate a big chunk of capital to a business with declining revenue and minuscule profit margins. In a sale, Bunge likely would cost more than its current market capitalization of $11.5 billion, perhaps a lot more if ADM and Glencore get into a bidding war. And ADM likely would have to borrow most if not all of the purchase price, dramatically increasing its $6.6 billion in long-term debt. Acquisition financing would increase annual interest costs by a few hundred million, putting more pressure on ADM’s narrow profit margin.” [Emphasis agnetic » More here…]
    • Taking a closer look at the “A” in “the ABCD Club” (Archer Daniels Midland)
      • has the structure of ADM’s 20th century leverage-based, logistical domain (stuff over data) conglomerate 14style business model out lived its usefulness as seen in other conglomerate15 structured companies like ITT, GE and more…?
        • How GE Went From American Icon to Astonishing Mess

          » in GE’s case “That long, proud run may have come to an end. It happened, as Ernest Hemingway wrote of going bankrupt, “gradually and then suddenly.”

        • GE’s Big Appetite for Acquisitions

          • the self-deception cycle at work?16

          • “The Jeff Immelt era tested General Electric’s long-held belief that with the right training, its managers could run anything. A series of disappointing acquisitions wasn’t the only thing leading investors to declare the notion a failure, but it certainly didn’t help.”

      • With $3 Trillion dollars of capital hitting the market there is plenty of cash seeking a place to create value » so the moat around the company named ‘we are too big, too complicated to break up’ dries up…

  • Hammering away‘ power moves are not limited to 20th Century companies fighting over stuff using ancient ‘aggregation of power through the aggregation of stuff’ methods » check out


tactical insights in terms of time interacting with the physical world and seen hammering away

power in the physical world is constantly changing » we often get distracted by this dynamic morphing–the constant movement from one shape to another, to another and more—here are interrelated power movements we see that are moving concurrently:

the key to surviving the waste and frictions inherent in the conglomerate[1] business model, is to have enough cash during down cycles. It’s one thing to have conglomerates[2] slugging it out in the market place, but it’s a game changer when sovereign players enter your market  » and they too have troubles (China’s COFCO makes painful cuts in drive to lead global food trade)  » so who do you think has more ‘staying power’? the Chinese government or this ABCD player?

∞ power in the physical world, by design and sustainability, often moves with no single point of leadership » this is frightening for some  » experienced physical world power players understand that fear and use it to discover the next ‘evolved version of themselves, and others…’  

» so what does this look like?…

  • Emergence: ”What happens when there is no leader? Starlings, bees, and ants manage just fine. In fact, they form staggeringly complicated societies — all without a Toscanini to conduct them into harmony. This hour of Radiolab, we ask how this happens.”
  • “We begin in Thailand, watching fireflies glow in glorious synchrony, lighting up miles of mangrove trees like Christmas trees.”
  • Fireflies don’t just flash on and off randomly like in North America, the flash together, in sync, [dr: by design…]
  • The Invisible Hand
    • “In 1776, writer Adam Smith came up with a theory: when lots of buyers and lots of sellers get together, the resulting “market price” that emerges through all that buying and selling is in fact the work of an “invisible hand.” He meant god. We think he really meant “emergence.” This segment, we go looking for invisible hands in a variety of places: at an ox-guessing contest in Plymouth, England, in the roiling mass of traders in the “pit” of the New York Securities and Exchange, and also in the secret recipe that makes Google such a great search engine. Author Steven Johnson explains the art of Google-bombing. Producer Ben Rubin presents the bottom-up organization of stock trading in sound.”
  • The Unconscious Toscanini of the Brain
    • “How does the brain produce a thought? For neuroscientists, this is the Mount Everest of questions.”
    • [dr: this is a great place to go and learn how spontaneous order works…]
  • “What Do Skating Rinks, Ultimate Frisbee, and the World Have in Common?”
    • “When he talks about “how this whole thing works out,” Dan Klein is talking about the skating rink, on a micro level – but on a macro level he’s talking about… well, the world.”

              “It’s a very complex problem but as it turns out it goes quite, you know, swimmingly as we know. And so if you had to sort of pitch this idea to someone investing in it, you’d have to explain how you think this is going to work. And it’s in that explanation that I think we can enhance our understanding of how things work in society generally.”

    what do you see?



    ∞10 confluence

    so what can any individual, institution, or industry do? either on their own or in concert with others?

    First, recognize the we are all vulnerable to the slow, then sudden collapse found in all self-deception cycles.17

    As the gradual collapse of more and more conglomerates turn sudden, and billions and billions are written off, we find a new ‘mesh peer environment’ forming to fill the vacuum. Not all the rules of this new power system have surfaced.

    We find find an interesting phenomena, that has been core to our success, at the heart of the surfacing mesh peer environments: a constant honing of tactical signaling with the physical world (both receiving and sending) skills. Which not coincidentally we find also to be the key to not collapsing.

    What is tactical signaling? Five Eyes Are Better Than One, is an article we found helpful. It describes just how basic catching signals from the physical world is, how it begins and its value.

    Sometime, in dealing with the physical world and what it has been signaling, is signaling and will continue to signal is so bluntly simple and straight-forward it hurts—in a good way…

    Where do you begin? That’s for you to decide. We found looking up from our screens was a great place to start.

    ‘Looking up and out’, to catch tactical signals from the physical word (like how others are handling similar challenges), and then signaling to them we would suggest to come along side, a great starting point.

    Sometimes connections are made. Sometimes not. But we always learn something. As with amazon.com‘s Bezo’s we find having a ‘beginner’s mind’ to be important, as we see Ellen did.


    1. “agnetic understands how an atmosphere that lacks self-awareness leads to climates of self-deception, which in-turn leads to environments of selfish behavior of the individual, institution, industry”. 
    2. “dear receiver” is our way of expressing the following equally ranked items:

      ∞ in similar context and focus of wikipedia’s dear reader

      ∞ our use of ‘dear receiver’ is striving to show what we see being signaled from the physical world so others can tell us what they see » all as a preliminary signals exchange » these interactions come before any transactions.

      ∞ much like the base premise of wikipedia as a great starting point for any research project, and definitely not intended to be an all to end all; our articles should be understood as a starting point…

      ∞ links with paywalls are included » we sympathize with the difficulties incurred…

      ∞ the links we provide in our articles are a courtesy » links in general may prove difficult to maintain as the digital connections morph and degrade over time » when they do, we will not be going back to correct…

      ∞ while the links may degrade or behind ‘paywalls’, the validity of the tactical power insights, and more…, remain timeless.

      ∞ it’s this ability to remain relevant over long periods of time, even in today’s temporary age of humans getting used to the new role distributive technology plays in our lives, is at the heart of why we present the items we do… 

    3. [dr: the value mentioned here is how to effectively, efficiently, and at scale reduce the friction to waste of all kinds: information, interaction, innovation and more…

      » Out of the hundreds of resources, we find The Tao of Boyd: How to Master the OODA Loop to be a great place to start…] 

    4. power decoder: one can google ” education reform” and be hit by a title wave of world views on the subject » instead, in terms of preparing humans to interact with the physical world sector of power » we suggest starting with the following article because its focus is not what education is or what education does. The focus of the article is how well, or not, classic education prepares humans to interact with today’s physical world.

      ∞ this is what we see ∞ what do you see?

      A Case Against Education*

      1) “For many students, college is mostly about jumping through hoops on command to show potential employers you’re ready, willing, and able to jump through hoops on command.”

      2) “What, then, explains such a fat premium for people with college degrees? One possibility is that people who get degrees tend to be more capable and would earn more even without going to college. Another reason—the one Caplan focuses on—is that the diploma conveys useful information to employers who can’t afford to probe each job applicant in depth. It tells them that the prospect, in addition to being reasonably intelligent, is willing to slog through four years of arduous and often boring classes and knows how to fit in.”

      “Notice this signal has nothing to do with what he or she may have learned. The signal to employers—of diligence, persistence, and conformity—is just as strong whether the applicant studies Sanskrit or cement mixing. Notice, too, that signaling is a zero-sum game. Earning a college degree sends a message to employers only if other people don’t have college degrees. If everyone gets a bachelor’s, you need to earn a master’s or a doctorate to stand out, even if the job doesn’t require one. This rat race leads to overeducation and the devaluation of credentials. (High school really was considered high in the past.)”

      [emphasis agnetic’s]

      3) why isn’t there a Kahn Academy for college education? Oh wait, maybe there is. Could it be Western Governors University ?

      • magazine title = “A Case Against Education”, Bloomberg Businessweek, January 22, 2018, p. 12.

      • online title = “A Case Against College”; accessed, February 2, 2018

    5. ∞ our use of the word balanced*, as in all things we say and do, is with No Malice℠ » click here for more on no malice…

      ∞ in the mean time…

      ∞ here we specifically refer to both the “taking everything into account; fairly judged or presented: accurate and balanced information.” definition of the word and “(of a person or state of mind) having no emotion lacking or too strong; stable: a balanced personality.” definition of the word. » nothing more, and nothing less.

      ∞ we mean both thick data » which is that data that comes from humans interacting with other humans, is hard to quantify and comes before » data that can be easily quantified in an algorithm, a spreadsheet, a powerpoint, or a word processor, known as big data » ensure you are not ‘missing something’ by watching Tricia Wang’s TEDTalk…


      • balanced | ˈbalənst |

      adjective

      keeping or showing a balance; arranged in good proportions: she assembled a balanced team.

      • taking everything into account; fairly judged or presented: accurate and balanced information.

      • (especially of food) having different elements in the correct proportions: a healthy, balanced diet.

      • (of a person or state of mind) having no emotion lacking or too strong; stable: a balanced personality.

      • (of an electrical circuit or signal) being symmetrical with respect to a reference point, typically ground.

      • New Oxford American Dictionary 3rd edition © 2010 by Oxford University Press, Inc.

    6. often those that lead do so first out of pre-verbal instinct to ‘figure out what works and what doesn’t work’. Often, unbeknownst to them, these ‘zero-to-one’ movers are following a timeless pattern of tactical power making that has existed since humanity first walked this planet » Here are a couple of references that may help:

      The Tao of Boyd: How to Master the OODA Loop

      OODA Loop ‘also source of “the ability to direct one’s energies to defeat an advisory and survive”; accessed February 2, 2018

      The Art of War (Amazon Books)

      The Art of War – Wikipedia

      The Art of War – MIT 

    7. in this case the multiple variants we see span the

      financial, logistical, analytical, biological, social

      time ∞ space ∞ power spectrum. 

    8. In this industry, and the associated inbound supply/value chain seed, fertilizer and banking of agricultural inputs industries, the repercussions of mistakes are revealed very, gradually.

      Timelines in the physical world, at the most simple, basic level are inherently elongated to at least one growing cycle. More often than not, these cycle are at least one full year.

      Exasperating inherently long decision » action » result timelines are structural funding systems, the US Farm Bill and more, humanly contrived to stabilize large quantity production of protein, fat and carbohydrates for a underfed world, but due to groupthink and other self-deception cycle components now present friction to information, interaction and innovation needed to effectively deal with waste in these industries and other increasingly hyperconnected industries: primarily food and healthcare.

      Each industry’s components (seed, fertilizer, soil, banking, grain and more) are so interconnected, and intertwinedand woven what happens in one capital intensive industry directly affects the other.

      The 20th century risk management structure formed to deal with contrived connections each healthcare sector (production agriculture, processing agriculture, food processing, and human health) has been the conglomerate.

      As distributive technologies move the gathering of data, perceptions, decisions and action making from humans to machines the usefulness of the conglomerate structure diminishes in the same way Hemingway wrote of how bankruptcy happens: “gradually, then suddenly”.

      An interesting phenomena of the conglomerate risk management ‘structure’ is how, during the ‘suddenly’ phase, what was seen as a source of risk management acumen collapses into one play in a very thin playbook: industry consolidation.

      Consolidation, in and of itself, is not, in our view, a bad thing. But in this case, across the agriculture (soils) ∞ food ∞ healthcare spectrum we are seeing a type, an intensity, of consolidation among conglomerates that in our view, to borrow a phrase from the airline industry negates the timeless advice of Boeing’s Ed Wells “”Be careful how long or how short you make the landing gear.” Which is code for “The underlying point, as form Boeing CEO Condit sees it: “Make sure there is room to incorporate the future.””

      Because of MIT’s Charles Fine’s timeless work (“Clockspeed” ), and more, we can anticipate what happens next.

      What happens when this society decides it has enough of contrived agricultural ∞ food ∞ healthcare economic systems that in the end has flooded us with GMOs, ethanol, fructose and more…?

      Effectively dealing with what happens next in an increasingly hyperconnected agriculture (soils) ∞ food ∞ healthcare sector and the natural growout of said hyperconnectivity fostering new business systems is the focus of this article…

      This is what we see ∞ what do you see? 

    9. ∞ Dear Receiver: in the spirit of full disclosure nearly twenty-four years ago, for eleven years, I worked at the “A” of the ABCD club » from straight out of college to youngest Vice President in history » in & out in eleven years » originating (procuring and merchandising) raw ingredients » supply chain management » hedging & arbitraging and the risk management » marketing » sales in eleven countries » moving six times, including the first American in the company to be stationed full-time in the Asia-Pacific region » which company? » the Archer Daniels Midland Company (ADM). 
    10. ∞ when I worked there, the company’s decision-making came from what is now referred to as ‘The Greatest Generation’ » for the most part these people’s childhood were shaped by hardship (The Great Depression, World War II, and more…) » and their straight-forward engagement of life showed it… 
    11. ∞ there is a movie, a book and countless articles about what life was like at ADM when I was there (for more google: “the informant”) » and while things may have been a bit more intense at ADM, in terms of power models and power playbooks, not much has changed in the agricultural production and processing sectors since » ‘people hammering away’ at old playbooks with just a single play in the book » in this case the form of groupthink and the self-deception of individuals, institutions an industry that, in this case is known as ‘follow the leader’ and ‘don’t step out of line’ » pretty much covers what is considered within the industry as ‘innovation’…

      ∞ of course all that was long ago » for an update (for more…goggle: “archer daniels midland ethics” and “archer daniels midland fired” but pay no attention to this, this, or this » is there more to come? » at this time, nobody knowns, but that is always in the characteristics involving the timelessness of human interactions*…

      • human interactions =

      ∞ human interacting with human

      ∞ human interacting technology

      ∞ human interacting with the physical world 

    12. “agnetic understands how an atmosphere that lacks self-awareness leads to climates of self-deception, which in-turn leads to environments of selfish behavior of the individual, institution, industry”. 
    13. ∞ For the record this is not a bashing of ‘big’ anything’ » not ‘big corporations’ » not ‘big food’ » not ‘big Ag’ » not even conglomerates » not even even ‘big government’

      ∞ this is about how the value delivered by conglomerates has diminished, is diminishing, and as you will see elsewhere does so as Ernest Hemingway wrote of going bankrupt, “gradually and then suddenly.”

      ∞ take a look at the definition of conglomerate below…

      ∞ did you notice the part about ‘the [industrial style of] putting of stuff together to form a whole’ part? » rather than, as is the focus in any business sector (healthcare and more…) designed to move with the physical world a ‘growing’ or ‘grafting’ or a ‘synthesis of part’s…

      ∞ we are suggesting that given the human interaction* advancements isn’t it time we update, take the reason, logic and X we found in The Enlightenment, to the next level?

      ∞ how about putting all farming, food safety and healthcare data, (scrubbed of individual’s data, etc.) paid for by the federal government and put it on to the blockchain?

      ∞ such a large data pool is ‘moonshot’ worthy of Americans to lead the rest of the world in the way we do best: “if we can do it » you can too » in your own way, and timelines…”

      *human interactions = 1) human-to-human, 2) human-to-technology, 3) human-to-the physical-world.


      conglomerate

      noun | kənˈɡlämərət |

      1 a number of different things or parts that are put or grouped together to form a whole but remain distinct entities: the Earth is a specialized conglomerate of organisms.

      • a large corporation formed by the merging of separate and diverse firms: a media conglomerate.

      2 Geology a coarse-grained sedimentary rock composed of rounded fragments (> 2 mm) within a matrix of finer grained material: the sediments vary from coarse conglomerate to fine silt and clay.

      adjective | kənˈɡlämərət |

      relating to a conglomerate, especially a large corporation: conglomerate businesses.

      verb | kənˈɡläməˌrāt | [no object]

      gather together into a compact mass: atoms that conglomerate at the center.

      • form a conglomerate by merging diverse businesses.

      ORIGIN

      late Middle English (as an adjective describing something gathered up into a rounded mass): from Latin conglomeratus, past participle of conglomerare, from con- ‘together’ + glomus, glomer- ‘ball’. The geological sense dates from the early 19th century; the other noun senses are later.

      • New Oxford American Dictionary 3rd edition © 2010 by Oxford University Press, Inc.

    14. ∞ For the record this is not a bashing of ‘big’ anything’ » not ‘big corporations’ » not ‘big food’ » not ‘big Ag’ » not even conglomerates » not even even ‘big government’

      ∞ this is about how the value delivered by conglomerates has diminished, is diminishing, and as you will see elsewhere does so as Ernest Hemingway wrote of going bankrupt, “gradually and then suddenly.”

      ∞ take a look at the definition of conglomerate below…

      ∞ did you notice the part about ‘the [industrial style of] putting of stuff together to form a whole’ part? » rather than, as is the focus in any business sector (healthcare and more…) designed to move with the physical world a ‘growing’ or ‘grafting’ or a ‘synthesis of part’s…

      ∞ we are suggesting that given the human interaction* advancements isn’t it time we update, take the reason, logic and X we found in The Enlightenment, to the next level?

      ∞ how about putting all farming, food safety and healthcare data, (scrubbed of individual’s data, etc.) paid for by the federal government and put it on to the blockchain?

      ∞ such a large data pool is ‘moonshot’ worthy of Americans to lead the rest of the world in the way we do best: “if we can do it » you can too » in your own way, and timelines…”

      *human interactions = 1) human-to-human, 2) human-to-technology, 3) human-to-the physical-world.


      conglomerate

      noun | kənˈɡlämərət |

      1 a number of different things or parts that are put or grouped together to form a whole but remain distinct entities: the Earth is a specialized conglomerate of organisms.

      • a large corporation formed by the merging of separate and diverse firms: a media conglomerate.

      2 Geology a coarse-grained sedimentary rock composed of rounded fragments (> 2 mm) within a matrix of finer grained material: the sediments vary from coarse conglomerate to fine silt and clay.

      adjective | kənˈɡlämərət |

      relating to a conglomerate, especially a large corporation: conglomerate businesses.

      verb | kənˈɡläməˌrāt | [no object]

      gather together into a compact mass: atoms that conglomerate at the center.

      • form a conglomerate by merging diverse businesses.

      ORIGIN

      late Middle English (as an adjective describing something gathered up into a rounded mass): from Latin conglomeratus, past participle of conglomerare, from con- ‘together’ + glomus, glomer- ‘ball’. The geological sense dates from the early 19th century; the other noun senses are later.

      • New Oxford American Dictionary 3rd edition © 2010 by Oxford University Press, Inc.

    15. ∞ For the record this is not a bashing of ‘big’ anything’ » not ‘big corporations’ » not ‘big food’ » not ‘big Ag’ » not even conglomerates » not even even ‘big government’

      ∞ this is about how the value delivered by conglomerates has diminished, is diminishing, and as you will see elsewhere does so as Ernest Hemingway wrote of going bankrupt, “gradually and then suddenly.”

      ∞ take a look at the definition of conglomerate below…

      ∞ did you notice the part about ‘the [industrial style of] putting of stuff together to form a whole’ part? » rather than, as is the focus in any business sector (healthcare and more…) designed to move with the physical world a ‘growing’ or ‘grafting’ or a ‘synthesis of part’s…

      ∞ we are suggesting that given the human interaction* advancements isn’t it time we update, take the reason, logic and X we found in The Enlightenment, to the next level?

      ∞ how about putting all farming, food safety and healthcare data, (scrubbed of individual’s data, etc.) paid for by the federal government and put it on to the blockchain?

      ∞ such a large data pool is ‘moonshot’ worthy of Americans to lead the rest of the world in the way we do best: “if we can do it » you can too » in your own way, and timelines…”

      *human interactions = 1) human-to-human, 2) human-to-technology, 3) human-to-the physical-world.


      conglomerate

      noun | kənˈɡlämərət |

      1 a number of different things or parts that are put or grouped together to form a whole but remain distinct entities: the Earth is a specialized conglomerate of organisms.

      • a large corporation formed by the merging of separate and diverse firms: a media conglomerate.

      2 Geology a coarse-grained sedimentary rock composed of rounded fragments (> 2 mm) within a matrix of finer grained material: the sediments vary from coarse conglomerate to fine silt and clay.

      adjective | kənˈɡlämərət |

      relating to a conglomerate, especially a large corporation: conglomerate businesses.

      verb | kənˈɡläməˌrāt | [no object]

      gather together into a compact mass: atoms that conglomerate at the center.

      • form a conglomerate by merging diverse businesses.

      ORIGIN

      late Middle English (as an adjective describing something gathered up into a rounded mass): from Latin conglomeratus, past participle of conglomerare, from con- ‘together’ + glomus, glomer- ‘ball’. The geological sense dates from the early 19th century; the other noun senses are later.

      • New Oxford American Dictionary 3rd edition © 2010 by Oxford University Press, Inc.

    16. “agnetic understands how an atmosphere that lacks self-awareness leads to climates of self-deception, which in-turn leads to environments of selfish behavior of the individual, institution, industry”.

      • human interaction = agnetic ‘code’ for all of the following interacting within themselves and together:

      1) human-to-human interactions

      2) human-to-technology

      3) human-to-physical world 

    17. “agnetic understands how an atmosphere that lacks self-awareness leads to climates of self-deception, which in-turn leads to environments of selfish behavior of the individual, institution, industry”.