In my opinion, Internet businesses will be far better off than almost all other niches from this depression. As the Truth becomes more and more unavoidable, people will seek it (so that they can be set free), and thus will flock to the web.

With that in mind, Silicon Valley as we know it will collapse. It is a part of the old world. The venture model that finances Silicon Valley -- the engine that makes it grow -- is part of the Federal Reserve controlled world of money, which is going to collapse. This is fine; it has outlived its usefulness anyway, as evidenced by how dramatically startup costs have fallen.

The future is in web startups sharing their large fixed costs, so those fixed costs can be amortized across many small businesses. These businesses must be somewhat standardized -- meaning they must adhere to the technical standards that will enable fixed costs to be shared. At the same time, we know that data portability is becoming increasingly important, and that it too requires standards. The end result of this will be a network of small businesses with its own government -- a government that determines what standards will be adhered to and what "taxes" will be, so that fixed costs can be amortized to maximize return on investment for all participants, and so that standards for data portability can be established.

I know that's a mouthful, especially if you are not fluent in the language of technology business to begin with. But I do think this is the future of business, the future of how the market-state replaces the nation-state, the future of moentary policy, the future of governance.....the 2012 revolution, to put it in Mayan calendar speak.

A long response to the article below! -- KM


Why Silicon Valley Should Be Worried — We have short memories in Silicon Valley, which is both a blessing and a curse. We forget the bad times as quickly as we forget the good times. — At the turn of the century, everything went to hell with the dot-com bust.

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