Schema Frequency & the Rabbit Hole



QUESTION: Martin, Thank you for staying alive and moving forward with Socrates!. I am a big fan of yours. I read your blog everyday and I have reserved to attend your Princeton conference this year. I hope I make it as I think it will be good for me to hear you in person as I consider you a mentor.

Here is a question I have about your schema frequency. I will ask you now via email so I do not have to ask you in person at the conference. But you may probably not answer as I know you said you do not like to write about your schema frequency. But here is my question: you keep the mysterious schema frequency a secret because it holds the key to understanding human-behavioral-economic cycles and there are too many dishonest people trying to get their hands on it to make money. (Btw, I wonder if any of these dishonest people will be at your conference?) You have written that the schema frequency is the “dna” of human economic cycles. Yet at the same time most people cannot help but be on the wrong side of the trade because this is what creates market tops and bottoms, manias and panics. So even if you revealed the mysterious schema frequency to the world, would it not make a shred of difference to how the cycles move?Humans are doomed to repeat history and the vast majority of people would probably not care about the schema frequency, not believe it, could not understand it, or not use it even though you make it public and most would continue on in their manias and panics? Making the schema frequency public would only matter to those who really are hungry enough for the knowledge to already pay for your services?

But, as I wrote in a previous email to you, if you are keeping the schema frequency secret so as to sell your services so that you may have business and relevance to the world in this way, I absolutely respect that. Please forgive me, I was a journalist who always asked questions to everyone: CEO’s, ambassadors, community leaders, etc. I am just very curious. But now I am an investor. Hope to see you in November!

ANSWER: The problem I have encountered is not that individuals would want such a code to trade by, for in that respect no matter what the model might be human nature dictates that the learning curve will always provide two groups and it would be impossible for 100% of the people to follow a single concept. Thus, there will always be two groups and revealing such a frequency is by no means going to alter society.

My concern has been with those who seem to be interested in ruling the world. Under no circumstance will the cycles change. However, I do believe that you can impact volatility. Therefore, if you were to concentrate at a specific point in time, it may be possible to increase the amplitude of a move to destabilize an economy, which is similar to what the Troika is attempting in Greece, as well as what Obama has attempted in Russia.

I do believe that it is equally possible to reduce the amplitude of the business cycle to better manage our economic environment. Instead of trying to manipulate the business cycle as in Marxist and Keynesian theory, what if we moved with the cycle as did Joseph in his advice to the Pharaoh?

Yes, there have been the greedy types who have tried to get the code for themselves. They have attempted that ploy on me countless times. They have tried to use women to get to me. They have sent people undercover to try to work for the company. There have even been attempts to hypnotize me by gradually lowering their voice (a common practice in hypnosis). I cannot even begin to list all the attempts, which include office break-ins to the demands of the clandestine contempt of court, where they had every intention to let me die in prison but that plan was sabotaged once the Supreme Court agreed to hear my case.


So my concern in releasing the Schema Frequency has not been about those trying to trade; it has been with those who want to rule the world. You can create nuclear power or nuclear weapons, but it all centers on the motives of he who holds the reins of power. These people have attempted to lure me into their fold – a rabbit hole where you may never return.