The stories we tell ourselves are the illusions that shape our reality and steer our destiny.
I found myself on the second floor of a converted motorcourt on Hollywood Blvd, wondering how many people knew the difference between a motel and a hotel? How many understood economics without money?
One of my best friends had recently moved to the City of Angels, to be closer to the ocean and the film industry, following a lifelong dream of living in Los Angeles.
They were busy, and preferred to remain anonymous, so I had time to sit back and relax.
That was when the preacher strode into the motel courtyard, dressed in red, glittering with gold and diamonds. He was a music producer looking for good Christian girls. He’d play his music, sit close, rap about Jesus, all while looking for that social media exposure that might help his talent gain traction.
The girls would respectfully nod their heads to the music, close their eyes, and feel the spirit. But it was usually a no-sale when it came to sharing his single on social media.
The girls understood indirect reciprocity, the new economy rising out of the collapse of fiat currencies. It was reputation based economics, the idea that people help others based on their reputation, not just on direct personal interactions.
The girls might share his latest hit if the preacher’s reputation (q) is greater than the cost of helping (c) divided by the benefit of helping (b).
q > c / b
A subjective social credit score, where you are the currency. Where your social standing is based on the value added to your network over time.
It was nothing new, yet it signalled the end of the short-lived, fiat currency experiment.
#iloveLA