WEBVTT 00:00:00.000 --> 00:00:02.299 Okay, I have to be honest. When you sent over 00:00:02.299 --> 00:00:04.940 this document, Bridging Financial Paradigms, 00:00:05.000 --> 00:00:08.240 I was expecting, you know, dry quarterly forecast. 00:00:08.720 --> 00:00:11.279 Instead, it feels like I'm reading a cyberpunk 00:00:11.279 --> 00:00:14.099 novel written for CFOs. It's pretty wild, isn't 00:00:14.099 --> 00:00:16.440 it? It reads less like a financial report and 00:00:16.440 --> 00:00:19.179 more like, well, a manifesto. A manifesto, yeah. 00:00:19.300 --> 00:00:21.739 But if you kind of strip away the sci -fi language, 00:00:22.079 --> 00:00:25.559 the central idea is actually terrifyingly relevant. 00:00:26.039 --> 00:00:28.199 And the big hook here seems to be that the economy 00:00:28.199 --> 00:00:30.359 has changed states of matter. We're not doing 00:00:30.359 --> 00:00:33.159 discrete transactions anymore. No, we're in continuous 00:00:33.159 --> 00:00:35.960 hydrodynamic flow. Okay, so what does that actually 00:00:35.960 --> 00:00:38.219 mean? Well, think of the old way discrete transactions. 00:00:38.420 --> 00:00:40.560 It's like carrying buckets of water. You buy 00:00:40.560 --> 00:00:42.439 something, you sell something, you report it. 00:00:42.479 --> 00:00:45.200 It's choppy. Got it. Hydrodynamic flow argues 00:00:45.200 --> 00:00:47.500 the modern economy is like a pressurized pipe 00:00:47.500 --> 00:00:51.060 system. It never stops. And the report calls 00:00:51.060 --> 00:00:54.539 money, energy, and computation isomorphic variables. 00:00:54.859 --> 00:00:57.280 Isomorphic. So basically they're all just different 00:00:57.280 --> 00:01:00.340 forms of the exact same thing. Exactly. A dollar, 00:01:00.500 --> 00:01:03.439 a kilowatt of energy, a cycle of computing power. 00:01:03.560 --> 00:01:06.560 It's all just flow. And, you know, the argument 00:01:06.560 --> 00:01:08.500 is most financial leaders are still carrying 00:01:08.500 --> 00:01:10.599 buckets while the market is flooding the room. 00:01:10.840 --> 00:01:13.959 Which sets up this character arc in the document. 00:01:14.200 --> 00:01:18.000 Leaders have to evolve from the clerk. to the 00:01:18.000 --> 00:01:20.359 sextant. Right. The clerk is where most people 00:01:20.359 --> 00:01:22.939 are now. They're behind what the report calls 00:01:22.939 --> 00:01:26.140 the wall. Looking at historical data. Yeah. Last 00:01:26.140 --> 00:01:28.700 quarter's sales, reporting what happened. It's 00:01:28.700 --> 00:01:31.390 completely reactive. And the sextant. the sexton 00:01:31.390 --> 00:01:33.829 is the engineer they operate in phase three what's 00:01:33.829 --> 00:01:36.310 called the rose they aren't looking at what did 00:01:36.310 --> 00:01:39.090 happen they're manipulating the flow to control 00:01:39.090 --> 00:01:41.189 what will happen they hit a high resonance score 00:01:41.189 --> 00:01:43.030 right where the company's financial structure 00:01:43.030 --> 00:01:45.450 is perfectly synced up with its strategy okay 00:01:45.450 --> 00:01:48.069 let's ground this the report uses nbc universal 00:01:48.069 --> 00:01:51.010 as a big case study for this resonance it's a 00:01:51.010 --> 00:01:54.129 great example so nbc universal created spinco 00:01:54.920 --> 00:01:56.879 A clerk looks at that and just says, oh, they're 00:01:56.879 --> 00:01:59.579 spinning off dying cable channels like USA Network. 00:01:59.879 --> 00:02:02.760 But a sextant sees what? Yeah. Total integrated 00:02:02.760 --> 00:02:05.819 management. They see optimization. They separated 00:02:05.819 --> 00:02:08.560 the steady, slow growth cable assets from the 00:02:08.560 --> 00:02:11.360 capital hungry streaming side like Peacock. It's 00:02:11.360 --> 00:02:13.479 about having two different engines for two different 00:02:13.479 --> 00:02:15.580 tracks. And how do they manage that? With what 00:02:15.580 --> 00:02:18.740 they call agentic AI. agentic meaning the ai 00:02:18.740 --> 00:02:21.979 has agency it actually does things it takes action 00:02:21.979 --> 00:02:25.000 the report mentions a system that unifies tv 00:02:25.000 --> 00:02:28.080 planning in seconds just removing all that manual 00:02:28.080 --> 00:02:30.460 friction but it's not all just cold data right 00:02:30.460 --> 00:02:32.680 no they balance it with a dual engine strategy 00:02:32.680 --> 00:02:36.400 they know that something like 56 of b2b decisions 00:02:36.400 --> 00:02:39.900 are emotional you need the data from cnbc sure 00:02:39.900 --> 00:02:42.759 but you also need the raw emotion of sports and 00:02:42.759 --> 00:02:45.060 entertainment to actually you know move the needle 00:02:45.060 --> 00:02:48.129 speaking of emotion Let's talk about Molson Coors. 00:02:48.650 --> 00:02:51.569 The report describes their layoff 400 people 00:02:51.569 --> 00:02:54.830 in a very specific way. Kinetic capital release. 00:02:55.009 --> 00:02:57.349 Yeah, that is a heavy, heavy euphemism. It is. 00:02:57.409 --> 00:03:00.349 But in this framework, employees, cash, factories, 00:03:00.550 --> 00:03:02.889 they're all just forms of energy. Molson Coors 00:03:02.889 --> 00:03:06.490 didn't just cut costs. They released that capital 00:03:06.490 --> 00:03:09.469 to fuel their beyond beer strategy. Energy drinks, 00:03:09.629 --> 00:03:12.250 spirits. And what about spatial sovereignty? 00:03:12.750 --> 00:03:14.650 That just seems like a fancy way of saying move 00:03:14.650 --> 00:03:17.370 everyone to Milwaukee for the tax breaks. I mean, 00:03:17.469 --> 00:03:20.469 yeah. But it's about minimizing friction. If 00:03:20.469 --> 00:03:22.469 you want the really avant -garde stuff, though, 00:03:22.550 --> 00:03:27.069 we have to look at the project called HA .YV3N2030. 00:03:27.310 --> 00:03:29.050 This is where I thought I was hallucinating. 00:03:29.319 --> 00:03:31.960 Project Vibe E. This is really the edge of the 00:03:31.960 --> 00:03:35.159 map. They're using lithography like high end 00:03:35.159 --> 00:03:38.460 printing to create physical collectibles that 00:03:38.460 --> 00:03:41.060 actually back digital assets. So mixing old school 00:03:41.060 --> 00:03:43.919 manufacturing with crypto economics. But why? 00:03:44.120 --> 00:03:46.340 For cognitive sovereignty. This is the part with 00:03:46.340 --> 00:03:48.840 the air gapped AI and the mixed reality headsets. 00:03:48.960 --> 00:03:51.919 Yes. The fear is something called algorithmic 00:03:51.919 --> 00:03:55.069 groupthink. If every CFO and trader is using 00:03:55.069 --> 00:03:57.349 the same cloud -based AI, everyone makes the 00:03:57.349 --> 00:04:00.530 same trades, and then you get a crash. So they 00:04:00.530 --> 00:04:02.310 want their operators physically disconnected, 00:04:02.509 --> 00:04:04.750 using headsets to see data differently, just 00:04:04.750 --> 00:04:06.909 so they can have an original thought. Precisely. 00:04:06.909 --> 00:04:09.349 To be a sexton, you have to think outside the 00:04:09.349 --> 00:04:11.449 algorithm. Let's bring it back to Earth for the 00:04:11.449 --> 00:04:15.370 final example, UPS. How does a delivery company 00:04:15.370 --> 00:04:18.779 fit into this hydrodynamic world? UPS is trying 00:04:18.779 --> 00:04:21.699 to stop viewing spending as a sunk cost, you 00:04:21.699 --> 00:04:24.980 know, money that's just gone. They see it as 00:04:24.980 --> 00:04:27.620 an investment in speed. They want a four to one 00:04:27.620 --> 00:04:30.519 return on their digital transformation. The report 00:04:30.519 --> 00:04:34.420 says they're gliding down the reliance on e -commerce 00:04:34.420 --> 00:04:37.939 giants. That sounds like code for breaking up 00:04:37.939 --> 00:04:39.740 with Amazon. Or at least seeing other people. 00:04:39.819 --> 00:04:42.939 It's about margin. Amazon is volume, but it's 00:04:42.939 --> 00:04:46.040 low profit. So UPS is shifting to high yield 00:04:46.040 --> 00:04:49.180 services, health care, small businesses. They're 00:04:49.180 --> 00:04:51.800 choosing resonance over raw volume. So if you're 00:04:51.800 --> 00:04:53.120 listening to this and you're staring at your 00:04:53.120 --> 00:04:54.680 own spreadsheets. You have to ask the question 00:04:54.680 --> 00:04:57.339 from the outro. Are we building a report or are 00:04:57.339 --> 00:04:59.779 we building the volume? Basically, are you just 00:04:59.779 --> 00:05:02.279 writing down history or are you actually engineering 00:05:02.279 --> 00:05:04.399 it? Because if you're just sitting behind the 00:05:04.399 --> 00:05:06.920 wall of last month's data, you might already 00:05:06.920 --> 00:05:07.379 be obsolete.