From a yet to be released presentation “Classical Economics is a Voodoo Religion” on Feb 20th, 2015. See also Trust is the currency of success.
About Georges van Hoegaerden
I am an entrepreneur unafraid to reinvent the outdated religions influencing human performance. Let's talk if you are eager to learn how I can fundamentally improve the performance and longevity of startups, corporations, investment firms, asset management and governments with new economic policies strengthening the evolution of mankind.
Entries by Georges van Hoegaerden
For a company to become sustainable it must first-and-foremost adhere to the inevitable principles of human evolution.
From an answer provided to the question What exactly is Economics? To which I answered on Quora what Economics should be.
From a question and answer session on the subject of economics on Quora.
From a discussion related to “How to fix Twitter“.
The pursuit of equal pay is evidence of a meritocracy we don’t have. My comment to an HR representative at one of the largest infrastructure technology companies in the world.
CalPERS ought not tap into a deeper optimization of hindsight to expect to drive returns of foresight.
Comeuppance on Croatia joining the Eurozone, as predicted in “The Eurozone is on the wrong side of Evolution“, written December 12, 2012. Quote is paramount to the establishment of technology (“How to fix Twitter” and “The bitcoin before the Horse“) and macro-economics as well.
From a discussion about the future of Croatia, and as referred to in “The positivity that kills us” written September 17, 2013.
From commentary received on “CalPERS change; a new shtick or a new stick?” from December 24th, 2014.
For Twitter to survive it must adhere to the preeminent rule of evolution, implemented by the economic principles of a meritocracy.
The desire for more predictable foresight stipulated in CalPERS’ new mantra cannot be fed with an investment philosophy steeped in the optimization of hindsight.
From my answer posted on Quora about Why VC’s are so negative? on Sept 16, 2014.
As discussed on September 9th, 2014 at a LinkedIn speaker panel #LinkedInRaleigh
HBR’s article hides a sinister and lasting side-effect from the continued under-performance of venture capital.
The long of Facebook is in danger because the economics of its social system violate the most rudimentary principles of a free-market mechanism.
From the upcoming presentation: What makes you TIQ? First published August 7th, 2014.
More on How is freedom working for you?, published July 31st, 2013.
Venture capital has turned subprime, which opens up a fantastic opportunity to turn it prime (again). This narrated presentation explain how.
Subprime venture capital causes a fallout of tremendous proportion. But the Triple Threat Founder leads the way in misappropriation of venture capital and risk.
Referring to our self-induced malaise in How is freedom working for you?
Yes, venture capital has changed. Downstream, with the aid of government interference, perpetuating its ever sickening and convoluted economic consequences. But it does not need to be this way.
Heavy reliance on data leads to the systematic confounding of consequence and cause, and worse, a systematic depravity of reasoning. No need to be an economist to understand how.
Nothing quite sums up the opinion of Horizon 2020, a large new European government program for innovation, better than a plea from its most powerful member state for me to get involved.
The lack of a meritocracy is the cause of the fanatical pursuit of diversity as a well-meaning but misplaced consequence. As covered in The Double Entendre of Silicon Valley Tourism, on June 11th, 2014.
The real contributors to evolution are amongst the recalcitrant tourists of its subpriming.
Read The Depravity of Reason from June 2014.
Read The Depravity of Reason.
Confounding consequence with cause is the reason why we build disheveled systems that are incompatible with our ability to produce. It also deprives from our most basic human right, universal freedom.
We have created a fantasy world, running out of inspirational character. We must breathe new life in the brave world we envision. So the world we want to escape to, is the world we actually live in.
It does not take a genius to fix Symantec, it only takes a truth-finder ready to re-align with the booming demand in internet security.
The constitution of The United States of America was not designed to serve as a framework for the diverse needs of freedom that inspires the world. So, we designed a new one.
Technology’s immature operating systems yield more oligarchic governance than its “analog” precedent. With populism cheering on the naïveté of its purported power.
Social networks must change if they want to survive and become a driving force of good. And all it takes is the removal of social from socialism.
Freedom itself must be freed from its current narrow definition and outright misplaced control, if we want the bravery of its pursuit to be responsible for the invention of a much brighter future.
Broken ideologies break the spirit and the opportunities of all people. We need a new master ideology that treats all people with the respect they deserve, and maintains a healthy equilibrium with nature.
Freedom is the hallmark of American society, an attraction that led me to this country to begin with. Little did I know then, I would have to define the economics of freedom myself, if I ever wanted to live amongst it.
Courtesy of WhiteHat Security comes a new browser (in beta) that promises to offer new levels of “out-of-the-box” protection to anyone surfing the internet. A worthy and wholesome proposition we should all pay very close attention to.
The game of soccer, or most sports for that matter, deploys better economics than the self-proclaimed “experts” have prescribed for us. To understand the need for robust economics, one does not need to be an economist. A rudimentary understanding of sports will do.
Bitcoin, as the best known non-fiat online crypto-currency is more frequently portrayed as the magic potion of a thriving new economy. Not so fast, say I, as Bitcoin will just aim to make the world flat again.
Thanks for the Windows phone, Apple. Was a comment left by a friend that reflects my opinion exactly. Yet for much more fundamental reasons than the many opacities of a white background one can imagine.
I agree with Jack Dorsey. Except that one cannot use our current economic systems to assess such value. Twitter’s limitation is the outcome of economic naiveté so common in technology companies.
To copy Silicon Valley the way it operates today would be extremely foolish. To take its advice, as the guiding principles in the exploration of new ideas that shape our future, would equate to outright stupidity.
Populist positivity amidst serious economic consequences is a charade. A pageantry of false positivity, even seeping through Larry Summers’ short letter to the President.
I subscribe to exceptionalism. The kind that serves as a glowing inspiration to the world and secure a more respectful and more reliable proxy of global freedom.
Thumper has been proven wrong. We all said nothing, because we had nothing nice to say. Look what economic mess that got us in. It is time for some honesty to break up the sub-priming of economics. Stay tuned, or forever hold your peace.
Google is making the exact same macro-economic mistakes Microsoft made, with its partners following dutifully in its finite slipstream. The similarities are astounding, and if unchanged, will offer a fantastic opportunity for another Apple to emerge.
Recently I got asked why, with a large social following ourselves, we don’t follow anyone on Twitter. My summary answer is that Twitter should be ignored, because of its barking dog syndrome. But it does not have to be that way.
The use of the phrase “Free Market” by the NYSE Euronext suggests it has a fundamental economic advantage over other exchanges. Nothing is farther from the truth. We must stop these kinds of misleading pretenses from taking control of our future.
Oprah Winfrey’s wise rhetorical relationship-advice comes to mind when reading about the daily abuses of finance, as reported by the media. It is time for us to learn from our mistakes and focus on the infinite evolution of our financial “games”.
I am perhaps the most optimistic person the world will soon learn more about, and not just because I spent about $1M of my own money on identifying a solution to our systemic problems. I made that investment over the last eight years as I painstakingly traced down the single root-cause of our self-induced destruction. […]
Now that I have repurposed the role of modern economics pursuant to the rules of nature’s household, the challenge in developing its “operating system” is in its relativity.
Apple has just today been found guilty of e-book price-fixing, and I urge Tim Cook to deploy a new vector of innovation Steve Jobs (admittedly) could have never envisioned.
The only war we need to fight – right now – is to protect the renewable evolution of mankind. An internal war aimed to rid our systems from proverbial pirates who ride the waves of the dysfunction we built. If we win this war there will be much less need to impose our will on others.
The term economics has been used and abused in many shapes and derivatives, few one might argue to the improvement of its relevancy and success. I intend to change that.
The economic arbiter that holds our world hostage needs to be reinvented, and only a fool would wait for its purveyors to do so. You are free to ignore me, but the world – as the beneficiary hungry for change – does not.
John Doerr’s purported admission and video interview with Forbes, on the sluggish performance of KPCB, makes him about as believable as Lance Armstong. And that, including his new actions, projects a sad state of affairs from the emperor of venture capital.
Literally anyone with a basic understanding of law can debunk our foundational systems and theses. We must begin to realize that if we want the world to follow our lead in harmony, we should first apply some new rigors of excellence to ourselves.
Mark Suster’s keynote at Venture Alpha East was revealing, but not in a good way. The video demonstrates how a bunch of technocrats should no longer blindly be given the keys to the kingdom of the evolution of mankind.
From The need to reinvent economics, published April 16, 2013.
At the starting point of the definition and purpose of economics begins the most important differentiation between the prevailing economics of today and the Renewable Economics™ I describe in my upcoming book.
From For our economy to succeed, classical economics must die, published March 22, 2013.
Classical economics perpetuate the absence of a meritocracy in finance, but worse, it provides the protection of failure we, as its implementors, allow to flourish.
Venture capital, as the arbitrage of innovation, is the poster-child of greater-fool economics. And groundbreaking innovation that spawns immediate global impact deserves so much better. Less apparent is how greater-fool economics haunts us all.
From How top-quartile is running out of merit, published March 14, 2013.
Top-quartile wins my proclamation as the most ridiculous way to measure VC performance, or any financial firm for that matter. And none of us should be surprised that innovation cannot reach maximum potential, with such meritless accountability of its arbitrage.
Top-tier Silicon Valley venture firm Kleiner-Perkins-Caufield-Byers (KPCB) admitted poor performance as reported in a recent article posted on Reuters PEHub. Normally, I would leave that kind of news for what it is, as I have described the symptoms of venture capital’s economic incompatibility with innovation in great detail here for years now, and I would […]
From Apple’s finite Loop, published February 14, 2013.
As a 20-year Apple user who has “infected” almost everyone close to me, it hurts me to have to group and introduce the reasons why I think Apple’s loop, after Steve Jobs’ passing, is turning gradually finite. I want Apple to grow up, to become the responsible economic
A 2013 venture capital outlook video interview with the National Venture Capital Association reminded me why no self-respecting venture firm or institutional investor should be a member. Especially when it blames the government for the lack of IPOs rather than …
The recent news about the reduced investment pace by venture capital in 2012 cannot come as a surprise to those who can separate the mindless cheerleading for a better future (we all want) from our own responsibility to clean-up its Neanderthal economics. We should not stare blind at the quarterly reporting of how fast the […]
I spent some time with Congress and The Senate on The Hill (in Washington, DC) last December discussing the deplorable performance of venture capital (VC), as detailed in my blogs, the preeminent video on The State of Venture Capital and in my new Infographic on The State of Venture Capital. One arrow in my quiver […]
From The Eurozone is on the wrong side of evolution, published December 21, 2012.
There is a reason why I left Europe more than 17 years ago. I always despised socialism. The socialism that is incompatible with finding the outliers of (any kind of) innovation that can encircle the world, and thus the source of placing artificial limits on the opportunity for Europeans to play a more prominent and […]
Click to enlarge the info graphic above, and check out the come-to-Jesus in the preeminent video of The State of Venture Capital for more details. Then head over to Renewable Economics™ for a rebirth of sorts, where we shed light on how venture capital has merely inherited its flaws from the poorly defined macro-economics. To correct […]
I will be giving the keynote speech to the Angel Venture Forum showcase event on December 12th, 2012 at the National Press Club in Washington, DC (the site of many a Presidential roast). I agreed to do so because this event promises to be unlike the many “flea-markets of innovation“, and we plan to make […]
Kenneth Rogoff, a professor of economics at Harvard University wrote an article about internet entrepreneur and political activist Peter Thiel with former world chess champion Garry Kasparov on the subject of their new book covering the collapse of advanced-country growth and their proposed remedy with a new innovation policy. Given the passion I have for straightening out our […]
In a recent article another victim of Tim Draper’s (founder of VC firm DFJ) delusion of positivity spreads the word about the “Draper Wave”. The recurrence of the wave by which Tim describes the purported cyclical nature of investing, is a desperate tool to keep Limited Partners from fleeing the asset class altogether and sell the pipe dream […]
Now that the presidential election is over, I have decided to give our President and our country one of a series of selfless gifts. Number one: the discovery of the greatest lie of all. The lie that prevents us from finding a permanent solution to our economic malaise. The same lie that prevents us from […]
As most of my readers know by now, I am a fervent supporter of Apple products for some 25 years. Not for some fuzzy nostalgic reason but because Apple has a completely different focus than other computing companies. I realized way back when Apple built QuickTime directly into the operating system the company had set […]
I mentioned both the term upstream and downstream in some of my previous blogs and quite a few of my readers asked me to explain the intended meaning, importance and their differences within the context of innovation in more detail. I am more than happy to do so since both terms apply to the way […]
Sunday I tried playing music through my Apple TV locally connected to my MacBook Pro that acts as the iTunes server with my music on it. It could not connect to the iTunes store, which it apparently had to. Alas, no music today. Today the weather got nippy, and I logged into my mobile nest […]
Venture capital has failed to earn its stripes as the most effective custodian of groundbreaking innovation, underperforming consumer adoption rate of technology (minimum 7%), delivering mediocre socioeconomic value unable to make a dent in feeding an 80%+ adoption greenfield and instead abusing public trust (with 2-year post-IPO values severely under water), and being blown away […]
According to the publication Pensions & Investments, Joe Dear of CalPERS ($200B+ Total Assets under Management) is said to have redefined the meaning of emerging managers, no longer allowing age-old fund-of-funds to finagle themselves to comply to that definition and rake up an endless chain of (usually) smaller funds. Instead now allowing only first or […]
That was the most prominent question every asset manager, venture capitalist, politician (Nigel Farage, European Parliament and UKIP) and taxi driver asked me during my one-on-one meetings with them in London last week. The fear is palpable. Action equals reaction The answer to that question is a function of the change you intend to […]
Maybe I am just a misfit (aren’t all entrepreneurs) but the new Apple Earpods ($29), albeit much better than the previous rendition of standard earphones that come with many Apple music products, still do not fit snug enough in my ear to run with them, nor deliver a well-balanced tonal range to displace the Bose MIE2 (granted: […]
It was striking how today’s The Wall Street Journal covered Heineken’s attempt to redesign its beer bottle to increase sales on the same page with Hewlett-Packard’s new CEO, Meg Whitman, efforts to change the look of its PCs to increase sales. Now, there are some similarities between the two businesses. Both have been in business […]
iOS apps hardly produce innovation that drives venture capital style returns, but that does not mean some of them are not utterly amazing. Plane finder is an amazing little iOS application (also available in a desktop browser) that shows you every commercial plane in the sky and tracks its movement in real-time. And people are […]
From multiple readers of my blogs I got independently forwarded a recent article describing how celebrated Silicon Valley angel-investor-turned-venture-capitalist (VC) Dave McClure rips the other VCs in the ecosystem as “f***ing arrogant and stupid a**holes”. And sans expletives I agree wholeheartedly with many of Dave’s assessments of the overwhelming dysfunction in VC, his assessment of […]
The illusion proposed by the cloud is that it offers tremendous business benefits, but along with that enthusiasm and (as technologists) our ability to quickly deploy such a technical infrastructure, comes a new set of business risks a cloud prospect needs to think carefully about. The move to the cloud (usually from a local intranet), […]
CalPERS, the country’s largest pension fund with $235 billion in assets under management, has given up on investing in in-state private equity and venture capital as first published by Pensions & Investments last week, and some $2.7 billion (of already heavily reduced commitment) in venture capital will be taken off the table and redistributed to […]
From The big venture capital mistake, published July 13th, 2012.
When you think about how 99.4% of venture capital firms fail and how currently 80% of the new money raised is doled out by asset managers to only five (5!) venture capital firms, those of us with a pulsating brain and a beating heart combined with a desire and passion for a brighter future have […]
I get many questions about the role of China in the venture business and I respond to a description of activities deployed by the Chinese government to boost innovation, received from a Chinese engineer (his comments listed near the bottom) residing in the U.S. who manufactures his product in China. While our implementation of venture […]
The vast majority of venture capital firms fail to produce consistent venture style returns to their limited partners, as a renowned money-manager representing prominent limited partners as the investor in venture capital firms adamantly proclaims that number to be less than 35. From knowledge about those 35 firms, the majority of which reside in Silicon […]
Getty Images is on the chopping block again, according to the Financial Times. This time for a purported $4B by sale or IPO. Amazing, considering we first wrote in 2005 that the company’s stronghold on the sale of digital images is not nearly as solid as the company has portrayed it to be, and we […]
The NVCA and Cambridge Associates are fighting back against the scathing report of the Kauffman Foundation in which VC is characterized as its own enemy, by publishing new performance numbers that attempt to prove the VC performance is inching back. I commented publicly on an article published by Reuters PE Hub, and for the purpose […]
On June 15th 2005, some 7 years ago, I came publicly to the conclusion from having worked in Silicon Valley for 17 years with many startups, that Venture Capital is broken economically (and argued the semantics of “broken”), created numerous blogs on the subject since, and produced The State of Venture Capital, now viewed by […]