Investing: Policy Synchronization Coefficient/Legibility Pressure Index tracking
PSC tells you how global & how fast the rulebook is converging. LPI tells you how hard the evidence bar is.
A) One-line definitions
PSC — Policy Synchronization Coefficient
How fast and how tightly rules/controls converge across jurisdictions and platforms (governments and gatekeepers like Apple/Google/MSFT/AWS/banks).LPI — Legibility Pressure Index
How hard buyers/regulators demand admissible evidence (identity, lineage, rollback, revocation) baked into systems — “policy as parameters.”
Meta-lens: incentives > ideals; control > fairness; stability > truth. Read revealed preferences (app store Acceptable Use Policies, bank memos, procurement templates), not speeches.
B) Scoring templates (0–100 each)
PSC score (weight / signal / how to read)
Cross-jurisdiction copy speed (25%)
0 = isolated pilot; 100 = US/EU/UK publish near-identical text within 90 days.
Data: date deltas between official texts, regulator circulars.
Platform alignment (25%)
0 = no platform move; 100 = Apple/Google app-store + AWS/Azure + major banks ship new Acceptable Use Policy (AUP)/policy templates globally.
Data: AUP diffs, SDK/API deprecations, wallet/app distribution rules.
Standards crystallization (20%)
0 = blog posts; 100 = named standards (e.g., C2PA, FIDO, ISO, FATF) mandated in Requests for Proposals (RFPs) or certification regimes.
Data: RFP language, certification checklists.
Procurement harmonization (15%)
0 = bespoke Statements of Work (SOWs); 100 = shared master templates / mutual recognition of audits.
Data: identical clauses across agencies; “mutual recognition” language.
Enforcement readiness (15%)
0 = guidance; 100 = fines, delistings, traffic-shaping, payment blocks begin.
Data: first penalty, takedown SLAs, bank risk bulletins.
PSC ≥ 70 = global rulebook convergence is live. Compliance-first vendors scale internationally.
LPI score (weight / signal / how to read)
Evidentiary verbs in law/RFP (30%)
0 = accuracy talk; 100 = attest / prove / trace / authorize / revoke / rollback / retain / explain are mandatory.
Data: verb counts weighted by bindingness.
Court/agency precedent (25%)
0 = none; 100 = cases/fines where lack of lineage/explainability kills evidence or triggers penalties.
Data: rulings, consent decrees, regulator notices.
Platform provenance requirements (20%)
0 = optional; 100 = provenance/watermarking required for distribution/ads/payments.
Data: app-store/CDN/ad-platform policies.
Buyer spend mix shift (15%)
0 = “move-fast analytics”; 100 = line items for audit, lineage, governance grow >20% YoY.
Data: RFP budgets, vendor SKUs.
Rollback/kill-switch acceptance (10%)
0 = absent; 100 = explicit revocation/rollback controls in contracts.
Data: SOW clauses, DPIA/PIA artifacts.
LPI ≥ 70 = evidence bar is high. Only platforms that emit signed, court-grade artifacts win and renew.
Quadrant logic (what to own/avoid)
PSC: High
LPI: High
Reality: Synchronized, evidentiary enforcement
What wins: Palantir (lineage OS), MSFT (Entra/Compliance/Purview), PANW (policy-grade cyber)
What dies: “Move-fast” AI, point analytics without governance
PSC: High
LPI: Low
Reality: Rules align, weak evidence bar
What wins: Payment rails (V/MA), basic KYC, cheap compliance wrappers
What dies: Heavy governance stacks (overkill); niche privacy toys
PSC: Low
LPI: High
Reality: Strong evidence demand, fragmented rules
What wins: Local champions with audit depth; consulting + compliance hybrids
What dies: Global “one-size” without localization
PSC: Low
LPI: Low
Reality: Sandbox phase
What wins: Speculative infra, pilots
What dies: Anything betting on near-term mandates
Trade principle: Buy fear → Monetize clarity. Accumulate when PSC/LPI rise but headlines scream “overreach/backlash”. Trim/overwrite when consultants/indexes finally bless it.
D) Trigger verbs & artifacts
PSC verbs: adopt, harmonize, align, mutual recognition, standardize, mandate, require.
LPI verbs: attest, prove, trace, retain, authorize, revoke, rollback, explain.
Non-government PSC: any global Acceptable Use Policy or SDK change by Apple/Google/AWS/Azure or Tier-1 banks = PSC up, even if no statute moved.
E) Field examples
PSC↑: AI provenance: C2PA moves from “nice-to-have” to distribution requirement in app stores/CDNs; EU/UK/US push aligned language within a quarter.
LPI↑: Court excludes AI-generated output lacking dataset rights + decision lineage → agencies update RFPs to require prove/rollback/retain.
F) Weekly routine (30–45 minutes)
PSC sweep: scan new laws, app-store/bank/cloud AUPs, FATF/ISO/FIDO/C2PA updates; timestamp copy speed across US/EU/UK.
LPI sweep: scrape RFPs and recent rulings for evidentiary verbs and rollback clauses; log first fines.
Score & delta: update PSC/LPI 0–100, track 4-week trend.
Act:
PSC↑ & LPI↑: add to PLTR/MSFT-Gov/PANW; sell calls on clarity pops.
PSC↑ & LPI↓: overweight payments/KYC wrappers.
PSC↓ & LPI↑: pick localized compliance winners.
Both ↓: hold core; wait for a fear catalyst.
G) Portfolio translation
Core long: PLTR (policy OS with lineage/rollback), MSFT (identity/compliance default), PANW (policy-grade security).
Hard assets outside the system (Bitcoin, Gold).
Tactical: Buy into backlash hearings and “overreach” op-eds (PSC/LPI rising under noise); sell some into “clarity” PR waves.
H) Common failure modes (avoid)
Mistaking speeches for PSC. If Apple/Google/banks didn’t move, PSC didn’t move.
Buying “AI accuracy.” If it can’t prove/trace/rollback, it won’t pass procurement.
Underestimating ratchets. “Pilots” in low Gross Consent Product regimes rarely sunset. Price in durability.
Bottom line:
PSC tells you how global & how fast the rulebook is converging.
LPI tells you how hard the evidence bar is.
When both climb, policy-grade, court-ready platforms monopolize, renewals entrench, and multiples justify themselves. Your edge is seeing the PSC/LPI climb before consultants can put it in a deck — and trading the fear→clarity cycle with discipline.
None of this should be considered investment advice.