Wednesday, July 11, 2012
Pretty Much What I've Been Saying - A "Gold Std" is Distracting Bullshit
Living Cells Show How to Fix the Financial System
Although this is pretty superficial. They had to dumb it down for Bloomberg audiences.
Basic message is that developing systems repeatedly adapt by connecting everything to everything, and then settling into the simplest system-state that allows agile net responses to a given situation or context. In biology it's called "ontogeny" and goes on through a process of sexually recombinant replicas.
The first trick for a given culture, market or system of any sort, is to add enough instrumentation to automatically TRIGGER reconnecting everything to everything - as fast or faster than contexts change. Then, once each highly plastic system-state is achieved, the next trick is to to automatically TRIGGER rapid re-settling to yet another new state, complete with endless hacks too complex & context specific to bother replicating. We refer to the second process as the dead-end of "maturity." It's always easy for an outside observer to see what SHOULD occur, but something entirely different for a complex system to actually initiate & execute re-equilibration fast enough to matter.
The real race is always to make more "tunable" systems, not to say what they should do. What to do is the easy part. How to actually "get'r done", fast enough, is all that really matters. Adaptation = a system that automatically triggers it's own re-organization, fast enough to keep up with changing context.
In Warren Mosler's words, "How do you get people to explore their options?" That's the key. The options almost don't matter. Developing teams & populations that will aggressively explore whatever group options come along is - in practice - all that matters.