Thursday, October 10, 2019

Short the Bankers, Traditional Institutions Are Embracing Crypto

When Facebook announced its plan to build Libra cryptocurrency in June 2019, mixed reactions trailed the entry of the social media giant into the cryptocurrency space. On the one hand, many crypto enthusiasts saw Facebook’s entry as proof that cryptocurrency is the future of money. On the other hand, some crypto fans were worried that Facebook’s recent skirmishes with regulators could cause collateral damage to the crypto industry if Facebook becomes the poster boy of crypto.
Irrespective of the reactions, Facebook’s entrance into the crypto space suggests that cryptocurrencies have metamorphosed from being a futurist niche into a mainstream idea. The fact that Facebook also managed to sign up the likes of VISA, MasterCard, eBay, Spotify, Andreessen Horowitz, PayPal, and Vodafone among others heralds the mass-market adoption of cryptocurrency.https://techcrunch.com/wp-content/uploads/2019/07/Libra_Association_Founding_Partners.png?w=551
Unfortunately, PayPal announced its withdrawal from the Libra Association as it chooses to focus instead on its “existing mission and business priorities”. There are also indications that MasterCard and VISA and MasterCard might also be reconsidering their involvement with Libra as its regulatory battle appears to be endless.
Libra, however, says it isn’t worried about such exits as it has a long list of more than 1,500 institutions that are enthusiastic about participating in the project.
 It is refreshing to see Facebook being optimistic about the odds of Libra’s survival. Beyond Facebook and Libra, this piece explores how other institutions are embracing cryptocurrency and its underlying blockchain technology.

Top educational institutions are now offering crypto/Blockchain courses

A Coinbase report on higher education powered by Qriously has asserted that 56% of the top 50 Universities in the world are not offering at least one course in cryptocurrency or Blockchain technology. In 2018, only 42% of the profiled universities offered such courses; hence, there’s a 25% year-over-year increase in standardization of crypto education. Some of the leading universities offering cryptocurrency and Blockchain courses include Stanford, which offers 10 crypto and Blockchain courses. Others on the list include Cornell, MIT, University of California – Berkeley and Columbia University.
https://miro.medium.com/max/1009/1*9ySSgPEMas5A7t2nWAqi9g.png
Interestingly, crypto and Blockchain courses are taught as a cross-functional discipline across the computer science, finance, engineering, humanities, management, and data science departments. Also, computer science professor Cesare Fracassi, who leads the Blockchain Initiative at the University of Texas at Austin McCombs School of Business observes that, “Some of the students interested in this topic are ones who feel mistrustful of the current banking system… they want to create an alternative system where the decision-making process isn’t centralized.”

Challenger banks are starting to offer crypto products

Challenger banks are small and relatively young financial service providers that compete with older and established traditional banks to meet the needs of users that are typically unserved or underserved by the banks. Challenger banks are also called App-Banks because they tend to provide financial services via Webapps, iOS, and Android apps without necessarily having a physical presence in their markets.
In the last five years, the number of digital payment companies now embracing crypto and offering crypto services to their users has increased exponentially. In the U.S., Square is one of the digital payments companies actively supporting the mass-market adoption of cryptocurrencies. In Q2 2019, Square reported that it recorded more than $125 million in Bitcoin sales through its crypto-focused Cash App.
Ally is also actively supporting the growth of the cryptocurrency industry. Last year, the company revealed that it was ready to start offering its users Bitcoin Futures from the CME. After the CME held off the launch of Bitcoin Futures, Ally provided a statement noting that “we will closely watch the Bitcoin Futures market as it develops and continue to evaluate the offering for our clients.”
From the UK, Skrill is one of the leading challenger banks making a concerted effort to support the development of the cryptocurrency industry globally. Skrill is a global player in the financial services industry with a global HQ in London and offices is the U.S. and Europe.
Skrill, which has been operating since 2001 as a platform for making simple, quick, and secure digital payments launched its crypto offering last year. The company noted that wants crypto to become part of its core business offering by utilizing its existing rails. As a part of Paysafe Group Holdings with more than $1.9B in annual revenues, Skrill’s involvement in the crypto market could move the needle for a significant mass adoption.
Skrill allows its users to buy and sell cryptocurrencies through a dedicated crypto tab where it currently provides support for 8 cryptocurrencies while plans are ongoing to add more coins down the road.  Users can buy and sell Bitcoin, Ethereum, Ripple and five other coins through a dedicated crypto tab on Skrill’s web and mobile app. Skrill’s parent company, Paysafe Group also has a working partnership with Coinbase to help the later roll out its cryptocurrency cards in the UK as part of efforts to deepen crypto adoption.

European banking giants are bridging the gap between regulators and the crypto industry

While traditional financial institutions generally tend to maintain an indifferent disposition towards cryptocurrencies, many people suspect that the growing popularity of cryptocurrencies is a source of concern. For one, the aggressive scenario suggests that cryptocurrencies could potentially replace fiat currencies and kick these traditional financial institutions out of business. Yet, even the most conservative predictions suggest that cryptocurrencies will coexist with fiat as the preferred means of exchange in the digital economy.
Interestingly, several traditional financial institutions are embracing the crypto disruption and they are actively looking for ways to participate in the crypto revolution. France’s Société Générale was caught posting a job listing in the search for an “IT developer on bitcoin, blockchains, and cryptocurrencies”. Also, BNP Paribas has been linked to analysts' reports suggesting that it might add Bitcoin to its currency funds. Earlier in 2015, British multinational bank, Barclays announced plans to run a pilot program with Swedish Safello to explore how Blockchain could improve the financial services industry.
Traditional financial institutions are highly regulated and thus they have huge war chests to devote towards lobbying efforts with policymakers. The growing interest of these traditional financial institutions suggests that the cryptocurrency industry might be on the fast track to getting regulatory clarity because these banks won’t dabble in crypto until the regulators have given them the green light to proceed.

Conclusion

There are several other interesting developments that paints an optimistic picture for the future of cryptocurrencies. Samsung is reportedly set to launch a crypto-enabled smartphone which will have a pre-installed crypto wallet among other features. Samsung’s bold play into crypto might, in turn, trigger a crypto war among device manufacturers as they jostle for market leadership in the growing crypto space.
In the final analysis, the growing interest of traditional institutions in cryptocurrencies and blockchain technology can only be positive for the industry. It would be interesting to what the coming years hold in terms of the mass-market adoption of cryptocurrencies.

Tuesday, October 8, 2019

Former CIA Officer: Trump Impeachment 'Hoax' "Very Similar To A KGB Operation"

Via Greg Hunter’s USAWatchdog.com,
Former CIA Officer and whistleblower Kevin Shipp says the so-called whistleblower the Democrats are using to try to impeach President Trump is part of another Deep State hoax.
Shipp says, “This is not a whistleblower. Let’s just start with that. This is a leaker..."
"This person did not have anything to blow the whistle on. Everything written in this document is written not by this leaker, but by attorneys, and it is hearsay. There is no evidence in it whatsoever. It is not a whistleblower complaint. He did not go through proper channels. He went directly to Congressman Adam Schiff, and people have got to understand this is another shadow government Deep State operation actually trying to remove the President. What they did was real sly. If they would have brought this leaker ahead, they would have taken him apart. The whistleblower, or leaker, would have been investigated. Everybody connected with him would have been investigated...
So, what they craftily did was put him under the whistleblower statute so he could not be investigated. The mysterious sources he was using could not be investigated, and that’s their plan. That’s what they did and also actually changed the whistleblower rules to include hearsay, which would have been thrown out of court. This is a Deep State operation like Russia collusion 2.0. . . . This is another criminal operation to impeach Donald Trump...This is very similar to a KGB or SVR operation.
Shipp says this type of hoax could not be perpetrated on the public without the help and coordination of the mainstream media (MSM). Shipp explains,
“What they do when they do these operations, and they are so full of themselves and have used them so many times before, the reason why people don’t realize this is the news media, the arm of the Democrat Party and the Deep State, are lying like Adam Schiff, like CBS and others are lying about the facts. So, people watching these news organizations don’t realize how stupid this is and what essentially is another coup.”
Planners of the first President Trump coup, high ranking rogue FBI employees, used what they called a “Media Leak Strategy” to leak information to the propaganda press and then use the articles written by them to back up their phony narrative. Shipp says this is happening again with the latest CIA leaker. Shipp contends,
“This leaker, plant got this false information and gave it to Adam Schiff, and then they created their own news stories about this. Then this whistleblower used those news stories to try to add credibility to the garbage he’s put in the complaint. That is exactly what they did here.”
Shipp says one of the first to be charged in the Russia collusion hoax, in his opinion, will be former CIA Director John Brennan, and he will roll over and sing like a bird. Shipp says, “Brennan has been known to be spineless..."
"I think John Brennan will roll over on James Clapper. I think John Brennan will roll over on Jim Comey. I think John Brennan will roll over on the coup itself when he’s looking at the rest of his life in prison. . . . He’ll roll over on Obama. This comes down to saving his own skin. Does John Brennan, former Director of the CIA, want to be in a cell with Billy Bob for the rest of his life? Heck no. Self-preservation will always come first with these people, and, yes, he will roll.”
Speaker of the House Nancy Pelosi says the impeachment inquiry “will be worth it” even if the Democrats lose the House of Representatives in 2020. What?? How can an amateurish phony whistleblower story, they are using to try to impeach President Trump, be “worth it”? Shipp says, “It’s going to be worth it because it’s going to keep a lot of them out of prison and reveal the extent of this."
"It goes all the way to the former President of the United States Barack Obama, George Soros and globalism. It all leads to that, and they know it. It is more important for them to stay out of prison than win the Election of 2020. They are going to dramatically hurt themselves because this is going to come out. Trump is going to win in a landslide, and a lot of them are going to lose their seats. Pelosi does not care about that. What she cares about is what is really going on behind the scenes, and it’s this deep dark criminal globally-connected operation, including the Clinton Foundation, that they are trying to cover for.”
Join Greg Hunter as he goes One-on-One with former CIA Officer and whistleblower Kevin Shipp, author of the popular book “From the Company of Shadows.”



Saturday, September 28, 2019

September Snowblast 2019: Weather Modification out of control


(Global Intel Hub – 9/28/2019) — Charlotte, NC — While Canadians have nothing better to do than march and protest ‘climate change’ there is an ongoing massive weather modification program that’s creating storms, droughts, floods, and other ‘natural’ events.  Recently we exposed the modifications of major Hurricanes, such as the recent Hurricane Dorian that ruined the Bahamas and amazingly just ‘scraped’ the U.S. coastline.
Now, there’s a record early winter Blizzard heading for Colorado that’s going to wreak havoc on the other side of USA.
Source: Weather.com
Early fall snowstorms are often destructive.  The combination of heavy, wet snow and strong winds this weekend will likely lead to widespread tree damage, power outages and blizzard conditions in parts of Montana, according to the NWS.  Travel in parts of central and western Montana, possibly into northwestern Wyoming, is likely to become dangerous, if not impossible, especially over mountain passes and in open areas where blizzard conditions could quickly reduce visibility. Road closures are likely in some of these areas.  NWS-Great Falls compared the potential of this snowstorm to another storm in late September 1934, which produced over a foot of heavy, wet snow in both Cut Bank and Great Falls, Montana, and over 6 inches of snow in Helena, Montana.  More recently, an early October 2017 snowstorm dumped over a foot of snow, leading to widespread power outages and downed trees in northern Montana, including the city of Havre.  High temperatures are likely to be 10 to 35 degrees below late September averages this weekend from Northern California and northern Nevada to Idaho, Montana and Wyoming.  Daytime temperatures holding in the 30s, 40s or 50s could set daily record-cold highs Saturday through Tuesday in parts of the northern Great Basin and northern Rockies.
Just another storm you say?  It’s because of Trump, right?  It’s because Trump is not participating in the fake climate change program, another hoax perpetrated by Demorats in order to suck idiot voters into another scam fighting fake problems that don’t exist.
For a moment let’s talk about the Why’s and the Politics of weather modification, later we’ll discuss the how’s.
First there is a huge economic benefit, as buildings are mostly not suited for extreme climates whether it be Hurricanes, Earthquakes, extreme cold, snowstorms, rain, etc.  Buildings need to be rebuilt, it’s great for the real estate market.
Second, there is a control mechanism built into weather that we need to discuss.  Pressure can affect human behavior.  UV conditions cause cancer.  90% of the population doesn’t realize how bad Ultraviolet (UV) radiation is, and that it’s natural.  But actually you can get UV reports from most weather services, they will have a measure of the “UV Index.”  But who cares about a few radioactive rays, right?  ‘Specially in the South.
Third, you’ve got to look at the food cycle which is inexplicably intertwined with the weather.  Crops need water and sun to grow, and extreme storms whether they are Hurricanes or freak Blizzards like the one we are experiencing now, are not good for food.  Of course, Monsanto will have a GMO product that will grow in any conditions, for a price.
We’re not going to get into how the combination of 5G, UV rays, dry air for weeks on end, or extreme heat or cold, combined with eating GMO foods, can affect DNA; impact your health – but more importantly – twist your DNA so that you give birth to a mutant hybrid child that’s dependent on the artificial life cycle (Earth, Rain, Food, Water).
When you look at Weather Modification through this lens, it’s very obvious what are the incentives for companies like Raytheon (RTN) to work with Monsanto (MON) and companies like LabCorp (LH).  Interestingly, LabCorp (LH) is involved in a massive fraud involving DNA material from mostly poor people:
The basics of this narrative are that the US Government is being defrauded and is the biggest victim here, as they are not only paying the bill of the fraud but also receiving the liability of claims that they are allowing to happen in US courts.  Ultimately, counties and cities get the power from the states which gets power from the US Federal Government so while it is the local municipalities which are allowing this to happen, as Harry Truman famously said “The Buck Stops Here.”  Also we want to note that while we are exposing the fraud of LabCorp (NYSE:LH), this is a much deeper global fraud which is a black market of the worst kind, involving illegal organ trading, baby ordering, baby snatching and fraudulent adoptions to families that can’t have children, DNA harvesting, and genetic surveillance.
How are all these things connected?  Is there a form of Genetic Terraforming going on here on Planet Earth?
The weather certainly can be a factor here, and remember also that there are only a few organizations on Earth that can defend themselves from the weather, one being the US Government.  Individual families do not have the resources to prepare properly for continued planetary chaos, so this is another tool in the control spectrum, whereby Citizens must rely on big business which is doing business with the US Government.

The Facts (And Evidence)

Everyone asks – isn’t this a ‘conspiracy theory’ ?  Well, here are the facts.  You can start by reading the 400+ page Congressional Report or watch these videos:

In recent years, the US military’s HAARP research programme has sown a blizzard of theories about how this secretive Alaskan facility has manipulated weather patterns with its investigation of the ionosphere. If HAARP really was so successful, it would probably not be closing this year.  The argument that if we grasped how to control the climate then evildoers would already be doing it doesn’t hold water with conspiratorial thought, however. Some believe the weather is already being shaped by “chemtrails” – aeroplane contrails deliberately laced with toxic chemicals – and mysterious weather warmongers are, for reasons unknown, making the eastern US unbearably chilly and California stricken by drought. Climate scientists dismiss such theories and evidence such as the long list of patents for climate-altering tools tends to demonstrate the boundless scope of the human imagination rather than the more limited reach of operational technology.
A pair of major reports on geoengineering, “Climate Intervention: Reflecting Sunlight to Cool Earth” and “Climate Intervention: Carbon Dioxide Removal and Reliable Sequestration,” were published last week by the U.S. National Academy of Sciences, and the CIA was purportedly a major backer.  So, can the weather be used as a weapon? The answer is…it’s been tried!  “Operation Popeye” was a highly classified weather modification program used in Southeast Asia during the Vietnam War. Conducted by the U.S. government from 1967 to 1972, “cloud seeding” was utilized to extend monsoon season by generating rainfall.
Weather modification will become a part of domestic and international security and could be done unilaterally… It could have offensive and defensive applications and even be used for deterrence  purposes. The ability to generate precipitation, fog, and storms on earth or to modify space weather, … and the production of artificial weather all are a part of an integrated set of technologies which can provide substantial increase in US, or degraded capability in an adversary, to achieve global awareness, reach, and power. (US Air Force, emphasis added. Air University of the US Air Force, AF 2025 Final Report,
http://www.au.af.mil/au/2025/ emphasis added, original link removed)
The HAARP facility in Gakona Alaska was closed down in 2014.
Is it time to stock up on supplies or head to the hills?  Certainly, you might want to reconsider that Miami beach property.
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We Work Fraud Exposed

We Work Fraud Exposed


(PreIPOSwap -- 9/26/2019) New York, NY --  We get asked often about fraud in Private Equity as it's an Over the Counter (OTC) market and not exchange traded.  Our answer is the classic answer - the majority of the risk lies in the underlying asset, i.e. the stock you're buying, not the secondary market counterparty.  Fraud exists in Pre IPO as in any industry but is easy to detect especially when transacting with regulated counterparties.  Like the FX market, which is completely unregulated and untamed, the majority of counterparties in Pre IPO are regulated investment banks, broker-dealers, or Venture funds with substantial capital (they may be exempt, but they are highly regulated due to their size).  When dealing in SPVs, the administrators and custodians where they are held are typically large custodians that have insurance which often is superior to SIPC and FDIC.  The fraud risk would be, someone posing as one of these institutions but really wasn't.  This was the scam method used by classic ponzi scammer Trevor Cook, who created US based Dummy Corporations with the exact name of the legitimate Swiss "Crown Forex."  Understanding and learning about past frauds enables us to better detect possible frauds in the future.
So it comes as a great source of consternation that we read and post this damaging information about WeWork, potentially the first Pre IPO Fraud.  Why fraud you say, WeWork is everywhere in NYC?  WeWork is a real company, it's not a ponzi scheme?
Remember that Enron was trading in energy markets and many other markets, and lots of investors made money in Enron.  It was a fraud, but it wasn't a complete MLM Ponzi scheme - Enron had a real business.  They just crossed the line of using their capital and market influence to manipulate markets which is illegal.  What's the definition of Fraud:
In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law, a criminal law, or it may cause no loss of money, property or legal right but still be an element of another civil or criminal wrong.
So here, we aren't stating that WeWork is a fake company, clearly not.  Many of us have worked in or visited WeWork offices.  We are stating that based on evidence we are including here below, which summarizes intentionally misleading statements made by WeWork founders and executives; that WeWork is a fraud based on deception, inflated projections while hiding liabilities.  They covered this intentional misleading deception by having an aggressive marketing push, and involving celebrities like Ashton Kutcher who would make soft statements like "It's not about the numbers anymore - it's about how WeWork can impact the world."

The real product

Anecdotally, we are looking at office space in NYC, New Jersey, Charlotte, Boca Raton, and Atlanta, for Crediblock.
Not really knowing about WeWork, we contacted Regus and the usual suspects one would for quick to setup office space without leases (or flexible terms at least).  With all the WeWork in NYC we contacted them as well and did a comparison.  Dollar for dollar, we're not really sure what the allure is to WeWork - is it all branding?  Free beer, stylish furniture?  Really?  Is that what the $47 Billion valuation is based on?  See this simple comparison from Tyler (Zero Hedge) -
WeWork vs IWG
We: loss $1.9BN
IWG: profit $0.5BN
We: 29 countries; 528 locations
IWG: 120 countries; 3000 locations
We: valuation $10BN - $47BN
IWG: $3.7BN valuation
We have to mention that we have used Regus in the past and the cool thing about it is that as you travel you have access to their worldwide network which you may pay for but anyway it's very useful, to have an office in Boca Raton should you need a quick conference room to do a power point presentation at the last moment.  120 countries is really a lot of countries.  One big negative, the smaller the lease term the higher the rate, just like for an apartment.  Perhaps they have a more realistic tenant approach than WeWork?  From the perspective of the renter - we looked at WeWork ONLY because of the discounted no-lease option.  While this is obviously beneficial for small businesses and entrepreneurs, it's not clear how this can be positive for WeWork.
We're not jumping on the We-dumping here just stating our observations as potential customers of WeWork.  And in the process of asking others how they like the WeWork, some of the 'weworkers' told us 'it's all about the networking' where the tenants we knew said they never communicated with any of the co-workers and they were in 'their own world's' - certainly NYC is not in need of more networking events, offices are places to escape from events and get work done.  But the networking fit into the WeWork branding model, just like any great MLM needs great branding, WeWork needed a great story, and it had.
Fortunately, we never bought any WeWork and didn't transact in it.  Strangely, there were ROFR issues surrounding the company and rumors about brokers that were 'cousins' of the founders that could pass ROFR but we didn't see any transactions happen in the secondary market. They did happen, and there was a market for it, we just didn't transact in it.  So for now, we're writing this as a Post Mortem report that we can move on to productive and exciting things we have going on such as Blackwatch DigitalTransparentBusiness, and seeing what Palantir has up their sleeve this fall.

Research & Articles referenced

Here's a collection of the top research articles on the topic, read and come to your own conclusions.

Friday, September 20, 2019

Sustainable Investing as a Strategy

Sustainable Investing as a Strategy


PreIPOSwap.com - 9/19/2019 -- The world is becoming unstable, volatile, and scary.
Being sustainable isn’t a do-gooder philosophy.  The reason Ponzi schemes blow up is because they aren’t sustainable.  Sustainable means solid, consistent, over the long term.  So when someone uses the phrase, be aware of the connotations and varied interpretations on what sustainability really is.  Environmental sustainability is a term which could be called a sub-term of the overall concept of what is ‘sustainable.’
Why does this matter?  If you are investing, nothing else could be more important.  Being a fund manager and investor for 25 years, this is the one important question to ask a manager when evaluating their track record: Can it continue?  (And subsequently, what are the risks?  What are you doing to prevent them?)
A great example of a system that was not sustainable was the Soviet Union.  A great idea, an egalitarian utopia where all classes are one (but your life is decided by the personality of the Dictator…) – but it was unfortunately unsustainable and collapsed in 1991.
Another thought on sustainability is looking at what’s NOT sustainable, such as the New York City taxi system.  And so we have the Pre IPO Unicorn and now the public company Uber.
Same thing with a trading strategy.  If you are looking at investing in a CTA program, they can provide excellent above Alpha returns, a couple examples are Alpha Z Advisors and Aleph Strategies two options trading strategies we work with.  The question any investor should ask themselves, is can this continue?  Is this model ‘sustainable’ – meaning can it continue to perform after a long time period?  That’s what Venture Capital (VC) firms look for, sustainability.
This concept is probably the most important concept in investing, and it has nothing to do with the environment.  However, the issue with the environment has the same theme – if we abuse the environment we cannot take resources from it anymore.  Uses like pit mining, oil as an energy source, are not sustainable because once it’s gone it’s gone.  Solar energy is sustainable because the sun replenishes the energy every day.
How many sustainable companies are there in the world?  We can say any company that has been in business for more than several hundred years, we can say is sustainable.  Like it or not, the US Government is sustainable.  Other countries have risen and fallen in the short history of the United States.
The Château de Goulaine is the 3rd oldest commercial enterprise in the world, and the oldest winery in the world:
While it is not clear exactly when the estate vineyard started producing wine for commercial use, rather than just family consumption, the millennium during which the estate of Château de Goulaine has been producing wine makes it the oldest known wine business still in existence;[6] It is believed to be the third oldest commercial enterprise in the world.[6][7] It is considered the oldest European family owned business.[8] The castle estate is one of the last Châteaux de la Loire to still be producing wine.[2]  In addition to producing a Muscadet, Château de Goulaine also produces a Sancerre and Vouvray as well as what is believed to be the first commercial Chardonnay in the western Loire Valley. The estate also grows some Folle blanche.[2]
chateau1
Source: TripAdvisor
1,000 years isn’t a lot, if you consider the cosmos, and the age of the Earth itself, or the Sun.  If you get into Quantum Physics and the multi-verse, our life is but the blink of an eye.  “Sustainable” doesn’t necessarily mean to last for 1,000 years or 1,000,000 years, the concept is inert.
For business, we aren’t necessarily looking for something that will last 1,000 years, times change and so do wants and needs.  What we are looking for is something that isn’t going to be phased out with a new fad, something that isn’t going to be knocked down by wind and water, something that is going to continue to perform year in and year out regardless of the circumstances that test the model.
A great example of something that is not sustainable is Kodak.  They popularized the phrase “Kodak Moment” Which was that moment when you needed a camera to capture special memories and save them; a child’s first birthday party, a friend’s new puppy.  But the “Kodak Moment” has morphed into a new meaning – it’s the moment that your product is no longer needed.  Digital cameras in smartphones led to the demise of Kodak.  Kodak’s real “Kodak Moment” was the moment when no one wanted Kodak anymore – they all had a camera on their phone.
So these examples contrast what Sustainable really is and to understand the Gestalt of the word.