Showing posts with label context. Show all posts
Showing posts with label context. Show all posts

Monday, June 1, 2015

Aristocracy Is Dead ... So Why Isn't Orthodox MacroEconomics Gone Too?

  (Commentary posted by Roger Erickson)

Having studied biology for years before ever paying attention to economics, I immediately wondered where the heck orthodox economists get their many, strange ideas.

Nothing made sense until something plausible dawned on me:
Orthodox MacroEconomics is an extension of Aristocratic "Court Politics" 
and is at heart a management theory for how an upper class can best rule "the masses."

To me, that explains nearly everything about orthodox macroeconomics and its inane list of things that human behavior "should" include. It's an unfortunate set of vague myths blindly promulgated by groups as diverse as aristocrats, property owners, cattle herders, and capitalists. Meanwhile, we always knew that human behavior can evolve as fast as new contexts arrive (at least so far). There's a fundamental dichotomy here. Peasant reality is that we have zero predictive power. We only know that recombination on all levels works, with few bounds.

What are the implications? A rare, honest person states one aspect of the obvious.
Aristocracy is Dead
So why is orthodox macroeconomics still kicking us while it holds us down? We're only down because we're LETTING a dead-man-walking hold us down.

Well, that, and also partly because too many dimwit escaped serfs only want to be Aristocrats themselves, if given the chance. Doh!

Meanwhile, as always:
Actual Human Behavior Makes A Mockery Of Orthodox Economic Models  
... (but Rulers Don't Care To Notice)
Ya think? So there's yet another another flaw in orthodox economics: the presumption that emerging aggregate outcomes should be logical? Really? Why doesn't this invalidate the entire field? There's a seemingly obvious answer.
"Thaler began to keep a list of things that people did that made a mockery of economic models of rational choice."
Well, that's yet another indicator that orthodox macro-economics grew out of aristocratic politics, not tribal common sense based on trial-&-error progress.
"Logic" is just a body of perceived patterns, which we use when trying to extrapolate from past experiences to future predictions.
Biology, chemistry, physics, etc, etc have amply proven that the past order of any system does NOT predict all of it's future options.

Aggregate degrees of freedom are a function first of aggregate inter-dependencies - which grow factorially with system growth - PLUS any changes in external context, which may or may not change at seemingly fixed or unpredictable rates, but always change nevertheless.

Orthodox macro-economics has become an increasingly impossible yoke to live with. This is one parasitic baby we'd do well to throw out with the accumulating bathwater.

Call it "Marie's Dilemma":



Sunday, January 4, 2015

More Semantic Confusion. What's "Good" for U-Michigan Is "Good" For The State Of Michigan?

(Commentary posted by Roger Erickson.)


"Michigan, where paying Jim Harbaugh $40 million may sound obscene but, in fact, is a very sound investment."
For whom? For the general welfare of the people of Michigan? Can't such authors finish a conjecture, by placing it into a context? Haven't they heard that data is meaningless without context?

To his credit, the author does include this immortally inane quote summarizing a quite common athlete's view of education.
“Why should we go to class if we came here to play FOOTBALL,” he tweeted ... “We ain’t come to play SCHOOL, classes are POINTLESS.”
Then there's the following paean to reality.
The untold part of the story is this: For every program like Michigan, which can easily afford to pay a coach millions, there are at least four times as many schools trying to compete at the top level of NCAA football that are drowning in red ink. There are 128 schools playing at the Football Bowl Subdivision level. Perhaps half of the 65 in the power conferences are making millions each year. The rest break even — or worse. 
The University of Maryland recently had to eliminate seven nonrevenue sports because it had so much debt — created by overspending on football. That debt also caused Maryland to bolt from the Atlantic Coast Conference after 60 years to join the potentially more lucrative (because of a better TV contract) Big Ten.
Had to? A pronouncement from Empress TINA no doubt. While he's getting on the right track by now, the author doesn't even bother to mention the social impact of all the U-Michigan students now saddled with socially constraining student loan debts.

If we can afford to spend significant chunks of our disposable income watching illiterate people run and jump like cavemen, why the heck can't we just provide ourselves with enough extra income to pursue more innovative interests as well?

Managing - or balancing - fiat is meaningless without aggregate adaptation to context. Does that help?



If you have to ask what public fiat is, please consult your own dictionary, before opening y'erble mouth.



Saturday, November 15, 2014

Eurozone Instability & Austerity: Policymakers Still Discussing It To Death In Greece

   (Commentary posted by Roger Erickson)


Eurozone Instability & Austerity: Policymakers Still Discussing It To Death In Greece

Will this turn out any different than the parallel conference that Bill Mitchell is attending?
How to SANELY govern Europe?
If you read the Italy agenda throughout, it looks like a set-up & cover-up.

There will be token acknowledgement of people like Bill Mitchell on a panel, but the main topics & speakers are already set to "answer" the wrong questions. The whole conference outcome is already co-opted.

If these conferences are mainly about the right way to capitulate to the ECB NeoLiberals, then it's all over except the dwindling shouting.

The only possible outcomes are slow defeat ... or a riot at one or more of these conferences?

I'm just looking for signs of when the inevitable enough is finally enough. Parasites always drive adaptive aggregates to a phase shift in their organizational state - to either death or sweeping adaptive change. It's only a matter of time.

That will be the point where aggregates remind themselves that all contexts are transient, and that there is no fixed thesis.

We need no timeless thesis or antithesis, only unending synthesis.

Actually, we should honor and laugh at social parasites, for their service in driving our constant adaptive responses. Even if we get tired of swatting mosquitoes after the fact, and eventually drain whole swamps, we just generate novel new crops of our own parasites, as a fundamental outcome of our own social diversification. Diversity & self-parasites are dual aspects of autocatalysis.

The NeoLiberals will one day be dead. Long live the parasites!

Meanwhile, history repeats itself. Who could predict that modern Greece would be felled by a Trojan Bourse?


Thursday, October 23, 2014

How About Fiat Currency Operations 101, For 5th Graders? Or "Context-101" For All Citizens?

   (Commentary posted by Roger Erickson)

"Recent accounts of athletes falling into financial distress have spurred some business schools to create specialized MBA programs for [athletes]"


? Business Schools?

Why not start long before that? With citizens? With an ounce of cheap prevention, instead of a MiddleClass flesh-pound of expensive repair? Especially since the repair so far is grossly too little, too late. [Yes, because of the lame fear that we've "run out of fiat."]

And no, an MBA wouldn't save us. They're among the dingbats saying that we're out of fiat. :(

How about mandatory, early Citizen Schools, for all citizens? Wow. Wotta concept! :)

To do something that simple, it seems that we have to STOP doing a lot of dumb stuff - but that list of dumb does NOT include constraining Public Initiative. Just redirecting MORE of it, to exploring more of our constantly emerging new options.

How much? As much as is needed to improve the quality of distributed decision-making ... because that ALWAYS pays for itself, by definition.

We need more - many more - reasonable people with context awareness.

Marriner Eccles types?

Luther Gulick types?

Beardsley Ruml types?

Warren Mosler types?

You know, people with common sense, and the audacity to simply insist on using it.


Gotta Be Honest First, Or Math Is Useless.

   (Commentary posted by Roger Erickson)


Because there's no logic without "lo".

Bill Mitchell: "Still sinning … a German economist who cannot face facts"

Those that just can't - or simply won't - see, never put 2+2 together.

No wonder they don't - or won't - get to 5th grade math. Gotta be honest first, or math is useless.

You do the calculus of honesty.

The residual is that data is always meaningless without context.

You can IMAGINE any context you want, but that doesn't help when it comes to helping fellow citizens survive REAL context.





Monday, September 15, 2014

Perceived Injustices Are Meaningless Without Context ... Surviving Reality Requires Continuous Exploration of Response Options

(Commentary posted by Roger Erickson.)



Injustice?


This one misses the point, even if technically plausible. Better to define optimal tuning options, rather than ONLY define current injustices.

Problem? The rich are given, and are hoarding, immobilized, an outsize proportion of present fiat?

Suggested alternative? Why bother confiscating it? Just alter the ratio of feeding it (excessive hoarding) vs feeding dynamically distributed fiat. The huge hoards of unused fiat would wither as fast as they accumulated - or become irrelevant.

Why? Because today's net public fiat is always dwarfed by tomorrow's. It's been unstoppable for 4.5 Billion years!

How Public Initiative (fiat) used is NOT. That depends entirely upon the quality (including tempo) of OUR distributed decision-making.

Here's a suggestion. Participate, yourself, in defining your own local and your own country's distributed options.

If you don't, some deranged economist will!

And that will only constrain the rate of exploring our cultural options.

Then you'll have to deal with the PRINCIPLE OF PRIOR PLAUSIBILITY, where an initial hypothesis builds outsized institutional momentum, SOLELY for lack of early opposition or alternatives. The statistics of phenotypic persistence dictate cultural agility. If we want to adjust quickly, then we have to end some cultural habits as fast as we start other ones ... or be far more selective about which ones we start!

Hence Leonardo's famous maxim.
"It is easier to resist at the beginning than at the end." Leonardo da Vinci
He might just as easily have said "be selective," rather than just "resist."
And an immediate corollary?
"Democracy works better when practiced every minute, instead of trying to repair it every four years."  RGE :)
Call it the "Broken Democracy" approach. :( The prize to keep our eyes on is our own, constantly increasing Cultural Adaptive Rate. That's the best way to prevent the crime of innocent fraud.


ps: If we question the adaptive value of human fat, why don't we question the cultural utility of obese wallets that immobilizes people in gated communities? A fatty liver is bad for personal health. A fatty wallet is bad for cultural health. Anything beyond 0.1% having fatty wallets is an epidemic of unhealthy demand leakages, i.e., sloth.

(effects of liver cirrhosis)



Stages of cultural damage?
  From healthy culture (distributed decision-making)
  To cultural financial fibrosis? (bought politicians; "yellow" NeoCons)
  And on to cultural liquidity cirrhosis? (free tradeforeign adventures?)

Any artists care to illustrate a cirrhotic Wall St. poisoning American policy agility?



Wednesday, August 20, 2014

Outcomes Based National Evolution - Measured by Nominal Metrics Like GDP, Or By Real Outcomes? (Why Must We Ask The Obvious?)

   (Commentary posted by Roger Erickson)




There's a reason why homo-econo-ignoramus doesn't appear on this chart. All those pompous Nobel Prize winners simply don't matter, any more than the methane coming from livestock.

Does GDP correlate with general welfare of the people ... or with national Adaptive Rate?

More to the point, what do we do with all our increasingly possible leisure time?

Oh, maybe quit trying to tell people what to do and how to do it, and instead leave exploration of our expanding options up to their increasingly distributed ingenuity?

Ya think?

Did every one of the soldiers working with General Patton have a defined job? No and yes. Their JOB was to cooperate ingeniously in navigating their dynamic context, AS AN AGGREGATE! The best way to survive as an aggregate is to NOT assign arbitrary jobs to all members, and to instead invest in distributed freedom to increase the net adaptive value of distributed decision-making.

GDP? Jobs? Really?

There are more relevant questions to ask. Start with the fact that no amount of humans is ever "necessary," except in the viewers perspective. Do we know who or what will be asking these questions? Not yet we don't.

The only known reason for separate classes within any species or culture, is as a tool for extending dominance hierarchies, i.e., to use your neighbors before they use you.

To see that, all you have to do is perceive "the value that dominants gain from suppressing their subordinates" - which is right out of biology-101, and presupposes a perspective where competition for over-subscribed static resources exists. What if that perspective itself no longer applies? How? Once an aggregate transitions to a state where the importance of dynamic assets is finally recognized as far outweighing the importance of static assets. That's always been true, of course, ever since the first "better way" was first recognized. It's just that most humans STILL don't recognize that tautology!

Relevant answers, and the data to support them, depends on who defines context, and why. Without a useful definition of our changing context, we don't arrive at an optimal definition of "value." For instance, is the ratio of static vs dynamic value changing rapidly, as the ability of humans to transcend biological niches continues to expand? Unfortunately, you won't hear that question posed in many, if any, economics textbooks, simply because the very perspective of orthodox economics is too primitive to even keep up with the existing range of other human disciplines.

Again, these observations about dominants suppressing subordinates - and WHY - are right out of biology-101, and have been documented out the wazoo, for many social as well as non-social species (despite what these particular authors claim, that it's been proven ONLY for meerkats - they're likely just posturing for tenure in some academic department :( ).

For example, in most "pack" animals, from meerkats to lion prides to wolves, the dominant male & female completely prevent subordinates from reproducing (often over 90% of the time), so all you really have to follow are the boundary conditions - i.e., who's offspring do & don't survive. You can see the same dynamics at every level of the phylogenetic scale, from viruses to human beings. The core system dynamics don't change very much, but the accumulated methods sure do.

Same thing occurs in upper class vs lower class humans and other primates - e.g., chimpanzees. Lots of poor people scrimp on their own child rearing or forgo reproducing, while working to help rear the children of rich people. Offspring of chimps less dominant in their packs don't get the same perks that "yuppie" chimp kids do. But there's a clear reason for that, as long as access to static assets is a point of competition.

Once you look, do you see any difference whatsoever - once you compare fungi, meerkats or humans? (Note also that continual revolutions - in all species - illustrate frequent turnover among which phenotypes are dominant, and which are suppressed. There's no guaranteed permanence, at least not out on the cutting edge of an evolving species or culture.)

But now we're talking about a whole new layer of opportunity, never before exposed (at least to this extent) by any species except human cultures! What happens if OUR context changes markedly, and the prior relevance of dominance hierarchies becomes less relevant, or completely irrelevant? How long would it take humans to even notice, and re-adapt?

If there are countless machines around to solve increasing proportions of support tasks .... then there is a point beyond which there is no longer any previously recognized gain to be had from suppressing subordinate humans!

Duh!

We've been discussing teamwork, military resiliency, and democracy for over 2000 years, and still not really catching on. So no, human cultures don't instantly re-orient to altered context. Perhaps it's finally time to automate the production of cultural return-on-coordination. How? Perhaps by subtly adjusting K-12 education? It'll take practice, not predictions.

If our survival pressures switch from reproduction of humans to reproduction of increasingly more adaptive human cultures, then the "moment" of adaptive pressure moves even further away from inter-personal competition and towards aggregate coordination, a complete transition in perspective that has actually been underway throughout biological history.

Yes, past transitions equal or greater in scope have already been documented. Apparently, you're not required to learn about them in order to get a degree or even a prize in economics. There have been multiple "singularities." In the big scheme of things, that topic is actually quite passé. We're just taking the upcoming one rather personally, due to our very constrained perspective on context. :)

Here are just some of the known transitions, or past singularities.

1) Transition from "inorganic" chemistry to self-replicating organic molecular assemblages (there may have been prior ones, this is just an arbitrary start to our list, for now; and don't forget quantum physics & the prior Big Probability Events; they're candidate singularities too)

2) Transition from self-replicating molecules (autocatalysis) to self-replicating template structures (i.e., appearance of condensed methods for "directed" construction; e.g., protein catalysts and the incredibly old rna-based ribosome enzyme)

3) Further transition from partially to fully template-driven self-replication - i.e., the dna/rna/protein based replication sequence common to prokaryotes, archaeryotes & eukaryotes

4) Even further transition from unicellular to massively multicellular template-driven self-replication
("layers" of self-replication, where only "germ cells" replicate, and trigger the build-out process we call embryogenesis)

5) Yet another transition is known? Yes! Various "social" - and very few "Eusocial" - species already exhibit various stages of passing another transition, where "germ members" dominate replication to various degrees (including humans), and the rest of an entire social culture divert increasing proportions from hyper-local to more indirect reproductive efforts.

Many people are asking what the next transition might be, and how soon?
There's no freaking way to know! The race is to PARSE what's happening, and adjust while it happens, not to predict it.
Compared to the known history of biological diversity, the entirety of economics writing is just pure BS, incredibly boring, noise, of no adaptive consequence whatsoever.
The truth is, Economics Lacks Imagination.
We gotta be on our toes, and think harder about what's coming down the pike OUTSIDE of the brain-dead dung-box we call orthodox economic theory. It's always time to move on, or we won't be among those moving on.

At what point is the entire human species "needed?" Depends on who or what is asking, and how the questioners define need. If robots become self-replicating, will it actually be far easier to advance "culture" by doing away with humans altogether. SciFi folks have been imagining & discussing that for many decades.

However nothing yet, from dying planets to SuperNovas to the BigBang has extinguished biological evolution, so it's doubtful that anything we can imagine can hold a candle to the real options. Consensus is that some variety of carbon life would undoubtedly colonize and live off/in/within any robotics we can build.

Relevance is obviously a moving target.

Jerrit Erickson writes:
"Ten billion humans are no more or less necessary than any humans, or
life itself for that matter; we don't know why we're here, if there
even is a reason. That hasn't stopped everyone from acting like
there's a plan up to this point."
Precisely. The whole point is aggregate resiliency through net diversity, either static or generated on demand. Hence, in our human cultures there are countless competing plans, each becoming obsolete as fast as contexts change.  Plus, all our plans are soon replaced by even better plans, which are made obvious just by observing unpredictable change. So a corollary point is to never stop SELECTING from all those proposed plans.

We navigate contexts by reacting and adapting, and NOT just by blithely predicting.

Zero predictive power, seemingly unlimited adaptive power (so far, at least), that's what we have.

What would General Patton have said about telling people HOW to manage GDP, or to "get a job?" Here's my 1st guess: "@#$%^&*! Don't be a fool, Cultural Soldier! Now what's our situation?"

Tuesday, July 8, 2014

Setting Net National-Context-Awareness As A Desired National Outcome

   (Commentary posted by Roger Erickson.)




How about an electorate learning how to lead it's own culture? Can that group-quality be developed by studious group-reflection and group-practice? The answer is obviously a resounding yes, if evolving cultural history is any guide.

How do we the people, as an aggregate, go about DOING that, in a pragmatic, objective way?

There's too much to possibly discuss in just one beginning, so I'll only touch on one facet, indirectly brought to light by a review of the rather forgotten Korean Civil War of 1873-to-today (if not older).*

Rather than getting sidetracked in the wealth of details, please consider what this EXAMPLE means to us, and it's implications for what has and is happening to our own culture.

First off, there are SO many insightful observations on our own, multi-faceted context floating around - from political operations to fiat currency operations, and beyond ... but all of them are under-distributed, under-utilized & hence under-leveraged by we the people, as an aggregate.

When inundated by indicators, the classic solution is to summarize, and discriminate KEY indicators to coalesce around, while letting all others float within local tolerance limits. Yet that presumes that there is always some reference to orient group behavior to. Is it cultural survival? If we are what we-the-people practice, as a whole, then surely we should practice being more systemically aware of what we are, as a group, practicing, so that we can monitor, assess, judge and actively shape what we are becoming, rather than just finding out, after the fact.

Is the answer always more information? How many people will EVER read ANY scholarly bestseller - soon enough to matter? Enough to be statistically significant for real-time policy formation OR for continuous pursuit of an adequately "informed" electorate? Obviously not, since available data always scales faster than the data generators.

Walter Shewhart's words are prophetic.
* Data have no meaning apart from their context.
* Data contain both signal and noise. To be able to extract information, one must separate the signal from the noise within the data.
Obviously, we can't keep all people fully informed. That would reduce to a failed attempt to have clones, and it would destroy the very diversity which we depend upon. Plus, as Shewhart and others showed, the endeavor would be meaningless. We have to keep our diversity and use it too.

To keep evolving our own culture, it seems that we continuously need new cultural models, which must be preceded by new methods, appearing at a faster rate.

What kind of cultural models?

1) Constantly changing models for consciously managing the adaptive rate of our culture, and electorate.

2) Does that mean objective models and metrics for assessing the group-context-awareness of our electorate? Yes?

3) Does that mean setting national-context-awareness as a Desired National Outcome - and then usefully defining "National Context"? At a minimum? As one necessary but not sufficient aspect of an "adequately informed" electorate? Surely? Isn't that what Democracy does - when we let it work?

4) Does that also mean defining National Adaptive Rate as a necessary correlate of rate of change for an ongoing polynomial?
a) Rate of usefully re-defining National Context.

b) Rate of setting new Desired Outcomes worthy of our evolving culture;

c) Rate of adjusting milestone goals accurately defining successful pursuit of those Desired Outcomes.

d) Rate of adjusting our entire, cascading spectrum of policies, strategies, tactics, methods and tools ... in agile pursuit of our constantly evolving goals and summary outcomes.
So when can we see a, b & c spelled out throughout both our cultural outlook AND our K-12 curricula, so that it becomes incorporated into our growing list of guiding principles for all of our subsequent endeavors?


***


*Some of the fascinating insights that this book offers are rarely heard details about the fateful steps circa 1950 that led us to abruptly turn a de-militarized US economy into the Military Industrial Congressional Complex (MICC) which still defines us - and how that sudden reversal also aided the backlash to the 1930s pragmatism and the return to archaic Monetarism and excessively simplistic forms of Conservatism, bordering on Ludditism. It's a sobering reminder that our chosen actions dictate who we become. As we tried to police the world, the world changed us. It's not at all clear who is the victor in that exchange. It doesn't seem to be us.

This book is by Bruce Cumings. Those familiar with the Chicago school of NeoCon, NeoLiberal & Monetarist economics will be surprised that Cumings is on the faculty of that same school, in the History department. Go figure. Maybe there's still hope for the USA, right in the NeoCons front yard!

Cumings' data reveals a long history of Koreans bitterly divided between factions that profitably collaborated with the occupying Japanese between 1910-1945, and those of many stripes who obstinately insisted on either liberty or death. The actions & words of the opposition should have been familiar to Americans, but they weren't recognized, and hence weren't respected.

The paperback version I read is a bit chopped up, since it is condensed from his much larger 2-volume set, but it is still a fascinating read, since it largely details how fundamentally misguided our Korean policy has been, from start to finish, and most of our entire Asian policy too, after 1950.

Aside from the MICC, the book's other parallel to America today is the description of growing alienation and polarization between an Upper Looting Class and a comparatively destitute lower class, with no Middle. Are we listening?



Monday, June 2, 2014

Increasing Labor Productivity Is Not A Problem - It's A Benefit To Be Leveraged

(Commentary posted by Roger Erickson)



Looking Closer At More Causes of Current Economic Inequality

Mitchell's context-specific points echo my own systemic conclusion.

Historically, any improvements in productivity only freed distributed populations to explore even more distributed innovations.

(No one person domesticated crops, circumnavigated the globe, created nuclear power or sent people to the moon. Persistent teamwork did. And that return-on-coordination always completely swamps all other returns. There's no competition.)

Traditionally, we accepted all productivity improvements and just immediately set our sights higher - or at least that's what we used to do. Now our biggest failure seems to be a failure to set worthy challenges for ourselves. Face it. We're bored, and resorting to hoarding existing assets instead of going after bigger and insanely greater assets.

In social species, more distributed innovations just allow us to immediately set bigger/better/leaner aggregate goals & achievements. Why aren't we doing that?

As aggregate production steadily rises, it's amazing that we're again seeing the rise of unprecedented personal hoarding.

Ye Olde Analogy is generals hoarding all the advanced weapons from the distributed soldiers, and still thinking that they are securely protected by a functioning army. History has always shown that to be a losing strategy, and one long past pointless.

A social species either distributes all available tools, teachings & responsibilities ASAP ... or it wastes it's greatest leverage, unused.


Tuesday, May 27, 2014

We're All Studying The Wrong Things

   (Commentary posted by Roger Erickson)



Or at least too much isolated detail, and too little context.

What'd Walter Shewhart say? "Data is meaningless without context."
Take our aggregate fiscal policy ... please!

The details in this essay by Bill Mitchell are depressingly astounding.

How Two Nations That Drove The Renaissance Eventually Joined At The Hip And Then Purposely Shot Both of Their Own Feet

I'll mention just one. "France was determined to stop Germany ever invading it again."

So, armed with that fixation, France ended up guaranteeing that German export industries would invade France, armed with THEIR fixation on a pegged Fx. And now they profess surprise.
Have A Steady Stream Of Changing Contexts
And Won't Explore Them Without Prejudice?*
Humans have been "Context Nomads" since before we were modern humans. Given that long habit, it is simply amazing that countries with such a history of brilliant physiologists, physicists and chemists can't figure out the rudimentary demands of the dynamic system we call a currency supply.

For heaven's sake! Amoebas figured this out a billion years ago! Even bacteria did. Just follow the damn operations, and keep them going, and evolving?

What should we be studying? How to systematically control the frictions that cause entire human cultures to take one giant step backward for every two aggregate steps forward.

Otherwise, how do we manufacture adaptive Public Purpose? Not just randomly diverted consent?


* We are Context Nomads: human nomads migrating through contexts with UNPREDICTABLE characteristics. Just explore without prejudice? Life is no more difficult than Kindergarten, where we first learn OBT&E


Monday, May 19, 2014

David F. Ruccio — Languages of economics

Wallace-Wells appears to be concerned that economics language is squeezing out other languages and ways of viewing the world. My concern is a bit different: it’s that the hegemony of one economic language serves to marginalize other economic languages. Because that’s the point: there is not a single language of economics, but rather multiple languages. And when the language of mainstream economics is predominant, the ways of looking at and intervening to change the world are confined to a small box.
Occasional Links & Commentary
Languages of economics
David F. Ruccio | Professor of Economics University of Notre Dame Notre Dame

Tuesday, May 13, 2014

"Learning To Navigate Context" ... vs "New Culture Is Always Putting An End To Much Of Older Culture"

   (Commentary posted by Roger Erickson)



A really interesting article here (below).

In general, this navigation essay touches on how much of the cultural-baby to throw out with the cultural-bathwater, with every, asynchronous step in generational turnover. Yes, there's always more ritual than most appreciate, which can theoretically be shed, but differentiating cultural baby-fat from a pound of cultural flesh, and when to shed it ... can easily get to be rather dangerous.

One has only to study embryology to appreciate the 2-stage art of recombination PLUS fabrication. We all know that lemons occur, despite all efforts at assembly line control.

That's before some people even realize that human culture is in a state of continuous, interleaved cultural-embryology. 

Many things not necessary for adults are QUITE necessary for different stages of development, whether during early embryogenesis or during childhood. In general, the more you know, the less you need ... but ONLY after you've learned that much. :)

Then, finally, you realize that WE need recombinant kids just to parse the unpredictable things your aggregate will need next.  That occurs even though you no longer personally need kids, and you eventually realize that at some point, your aggregate no longer needs YOU!

Get over it.

Hence, "oops" occur every generation within groups, and every singe time groups meet and merge. That's why large, current cultures spend as much or more time looking back as we do looking forwards. Recovering from our own mishaps is a large part of cultural as well as individual survival. Eventually, every individual metaphorically hammers their own thumb hanging a picture ... and every culture shoots a million of it's own feet. It's how we recover & adjust that counts.

In the end, we're all still Context Nomads, individually & culturally, and there are endless, unique tricks & shortcuts to optimally dealing with every context. The glory of survival really does go to those who re-orient and re-adapt soonest. That process goes on regardless of which individual or distributed thumb was hammered, or which pound of component or cultural flesh was usefully or harmfully shed.

(hat tip Kevin, in a prior comment)



Tuesday, April 15, 2014

Yet Another Claim That The US Is An Oligarchy, Not A Democracy: So Much For Rational Agents Having Access To ALL Necessary Pricing (or other) Data! :)

   (Commentary posted by Roger Erickson.)



US Is an Oligarchy Not a Democracy, says Scientific Study

Although it always worries many when a study group goes to the length of stating that they ran a "scientific" study.

Semantics.

Everything is "scientific," so just look at the details of the study terms and weigh relevance for yourself.

Note, that it can seem problematic when articles in peer-refereed research journals are "leaked" to the public ahead of actual publishing (since it's not clear if all the reviews are in). When is that crossing the borders between politics, PR and double-blind research studies? Sometimes when it's politically convenient? Sometimes when the TEMPO of discussion outweighs worries about validity? C'est la Vie. There's no reliable answer.

OpenSourcing the article in question to the lay public, for full AND TIMELY public review, certainly helps the rate of dissemination of public discourse, and public learning from the diverse components of itself. Overall, that's why most of nature openly broadcasts most data, and then races to recognize new patterns and discern their implications for new contexts.

In this case, we have both occurring, though asynchronously. The authors of this study are Martin Gilens and Benjamin I. Page, and their article is eavailable from their edu website as a pdf, entitled:
"Testing Theories of American Politics."
So why bother with subsequent publication in a peer-reviewed journal operating behind a paywall? One reason is simply the layers of tenure-track processes that this publishing process involves, for both authors and reviewers. University academic operations are quite as due for a systemic overhaul as our banking system is. Most people outside of academia simply aren't familiar with the arcane, outmoded operations involved in University management.

Given all that, go get 'em, USA. How do YOU spell "D.E.M.O.C.R.A.Z.Y?"

Personally, I think this article should be discussed by every classroom & household in the country. We'll worry about how scientific it is throughout the ongoing discussion. Whether oligarchy or democracy, the big point to remember is that success tracks the quality (including tempo!) of distributed decision making. That reminds us that it's always a war between Central Planning (by any other name), and effective Democracy.

Sunday, April 13, 2014

Why The Gritty Details Of Operations Matter - While Pondering The Madcap Effort To "Balance" Fiat

   (Commentary posted by Roger Erickson)



One simple example:

Functioning militaries prefer not to send soldiers into the field, until they can, proverbially, disassemble & reassemble their weapons in the dark. One of several reasons is that without that detailed familiarity, they won't know the limits of what their tools are and aren't capable of in different contexts, when there's a need to push them to survivable limits.

In general, every functioning system known - from physics to biology to human cultures - is incredibly densely engineered, and is rife with useful shortcuts & hacks. The next iteration of any system is built by those who can navigate the DETAILS of the prior iteration.

Here's another useful insight into why given operations matter, and how much, in given contexts.





We need more tables analogous to this, for other contexts and disciplines.

Such tables could be very useful, even for economic theorists. Any suggestions?

As just one application for the table given, you can look at the details of why these operational issues mattered to the software running competing computer-networking protocols, and which ones survived.

http://en.wikipedia.org/wiki/Berkeley_sockets
http://en.wikipedia.org/wiki/DECnet
http://en.wikipedia.org/wiki/Excelan

So how on Earth did orthodox economists (& religious ideologues) end up presuming that banking operations don't matter, only pure theory?

Whatever the obtuse explanation is, the real issue is how to correct that flaw. Rather than telling people HOW to do that, let's leave it up to distributed human ingenuity. My only prediction? Orthodox macroeconomics is NOT going to survive the demands of reality.

(Either that, or we'll kill ourselves trying to make it work. Bill Black pictured that in a group email several years back - something to this effect. "If one country seemed to thrive by balancing it's budget and being a net exporter, then we'll all be better off if EVERY country was a net exporter, with a balanced budget, right?" Is that why several countries are discussing bases on the moon? To accommodate the excess exports, while the orthodox achieve Earthly gridlock, by "balancing" aggregate fiat?  That or pinning themselves down with one or a few fixed, Pyrrhic tactics, while ignoring any & all ways of actually achieving a Desired Outcome.)


Thursday, April 10, 2014

How A Family Went A Year Without Sugar - Could An Industry Lobby Go A Year w/o NeoLiberalism?

   (Commentary posted by Roger Erickson.)



How An Australian family went a year without sugar
There are those who cannot instantly reason by analogy. So let's challenge them to simply practice doing so, in small steps.

Start off imagining that NeoLiberalism is synonymous with Corporate Welfare.

After all, even Albert Einstein said that imagination was far more important than knowledge, or even logic.

Now, imagine the MICC keiretsu surviving a year w/o ... well, all the MICC policy incest!

Go ahead, just imagine something along those lines. See, you can do it. It won't break anything. Now imagine many things, and then start selecting any of those novel thoughts which actually are unexpectedly supported by available evidence. It's called pattern recognition.

See! You're actually THINKING!!! Anyone can do it. Even writers from San Francisco with PhDs. :)

Now just do a equally simple exercise every morning, with your yoga. Start small and ramp up, so you don't overload your amygdala and panic. Before you know it, you'll be able to easily & instantly model changing circumstances, dynamic systems .... EVEN CHANGING CONTEXT!!!

Can't hurt to try. You may eventually even see your animosity to change transformed to open curiosity. Acquiring the habit of quick thinking is what all teamwork begins with, regardless of what those team skills are applied to.

Now back to the subject. Why can't some country today go a year without NeoLiberalism? Why not OUR country?


Wednesday, March 26, 2014

Keeping Up With FULL Context: OpenSourced Hardware AND Software As One Key To Distributed OBT&E

   (Commentary posted by Roger Erickson)




I wonder if ARM licensees can keep up? Or other CPU mass producers. Maybe CPU will also soon become Open-Sourced commodities, rather like grass for cattle, or ants for insectivores. :)

Regardless of hardware vendors, cheaper data-intensive hardware will allow more distributed access to serious data-crunching and complex model simulations.

Full context simulations? We're nearly there with sophisticated gaming, even though developing gaming technology is still mostly applied to culturally trivial distractions.

Sophisticated, full-context modeling could nevertheless soon follow. Simply by using real-time, real data feeds, instead of only artificial-reality imaging engines.

This will slowly make it more feasible for more people in all settings and all disciplines to begin to model their entire supply chains or "eco-systems" - as well as the full context (the whole that grows as less/equal/more than the sum of all sub-eco-systems).

The "Singularity" is more likely to accelerate human coordination. Enslavement of humans by their smart-phones/watches/glasses still seems improbable. :)

Keeping up with context is how all organizations reduce internal frictions to low enough levels that all sub-members aren't simply fighting one another. That's what OBT&E is all about. Outcomes-Based-Training-&-Education, aka, cultural evolution.

Making it harder for citizens to work at cross-purposes is always a function of processing key data flow. Just running enough model simulations (i.e., thinking) to even keep recognizing minimal-data short-cuts for given contexts is itself a considerable task.

Distributed awareness of full context - aka, an informed public. It's not just the data that matters. Without context, any amount of data is still meaningless. So getting slowly improving, full-context models in front of more people is the name of the game.

Real-time, full-context awareness, across full groups? That requires:
streaming even far more data flows, in real-time, 
RAPID pattern recognition within and across more data flows, 
massively parallel testing of distributed tuning steps (local actions), 
and most of all ... an ongoing ASSESSMENT model ("Public Purpose" as the agile, floating Desired Outcome).
All inter-linked, through massively parallel feedback data flows, of course. No, corporate owned advertising & propaganda channels will NOT suffice. Don't even ask. It's already just in the way, and a significant paywall obstacle that is slowing the evolution of the USA.

How about personal "Citizen Dashboards" able to serve distributed citizens as well as the cockpit data displays serve airplane pilots? That should help +320 million people run a more agile culture and country. It might even save our collective butts. The aggregate return on coordinating REQUIRED distribution of nearly all available info to nearly all "tribal" or citizen members ... will be a far higher return than ANYTHING any individual can currently imagine. Even legendary King Midas - or anyone else from 2000 years ago - couldn't imagine the distributed wealth we argue over today. Why should we constrain even our own, following grandchildren, let alone the 7th generation yet unborn?

Why NOT OpenSource our survival ... the challenge is wide open, and not yet sourced. Supposedly, none of us is as smart as all of us, so lets just figure out ways to USE all of us?

As Ben Franklin (and every tribal member throughout history) said, it seems we still must all hang together, or we'll surely experience a common demise.


Thursday, February 6, 2014

Fascinating Reads: John Boyd And Orienting to Context (i.e., Driving Adaptive Rate)

   (Commentary posted by Roger Erickson)




For those who know, there's a unbroken, inter-disciplinary link between:

Wallace_&_Darwin => Walter Shewhart => W.E. Deming => Toyota Production System => John Boyd

There's too much to discuss or read in one post, so here are some references just about Boyd, to start with. One can work backwards from there, just as Boyd did.
On The Making of History: John Boyd and American Security
http://www.usafa.edu/df/dfh/docs/Harmon54.pdf

BOYD ON AL QAEDA'S GRAND STRATEGY
http://globalguerrillas.typepad.com/globalguerrillas/2004/05/journal_boyd_on.html

Boyd: The Fighter Pilot Who Changed the Art of War
http://www.booknotes.org/Watch/158365-1/Robert+Coram.aspx

John Boyd’s Art of War
http://www.theamericanconservative.com/articles/john-boyds-art-of-war/

Introduction to the Strategic Theories of John Boyd
http://chuckspinney.blogspot.com/p/compendium-colonel-john-boyds.html

ps: Paradigm, of course, refers to the set of methods which an aggregate (molecular, CNS or culture) uses while attempting to orient - successfully or not - to context, as the backbone of Adaptive Rate.

ps: ps: Shewhart's PDSA cycle looks at mfg adjustments post policy decisions, a method which Deming tried to push into policy & governance itself, and which Boyd re-named from the policy/goal/outcome perspective as the OODA Cycle or OODA Loop.



Friday, January 31, 2014

The Campaign to Neuter Our Fiat

   (Commentary by Roger Erickson)



Neuter our Fiat?
May the gods, universe and our own MiddleClass please take pity upon these sad people for their lack of insight, and lack of situational awareness.

This is a growing, ironically "well funded" and strangely distorted campaign. These folks do NOT grasp semantics OR fiat currency operations.

Over 2000 years ago the Sophists "proved" - using a linguistic loophole since named semantics - that if you owned a cat, and that cat was a mother, that it was therefore "your" mother. Ergo, we all have a responsibility to neuter our mothers.

It took over 2000 years before Walter Shewhart noticed the depth of the resulting problem, and publicly declared that


Seriously, I'm more than half afraid that the Neuter-The-Fiat campaigners might endorse the same faux "logic" - and start neutering their mothers.

After all, just because the process by which a nation creates it's own, sovereign fiat currency is referred to by accountants as a "nominal," fiat debt, and is an expression of Public Initiative or "fiat," .... semantic sophism dictates that the nominal fiat accounting "debt" is OUR real "debt," right? Weepin' Erbles in a Marriner Eccles trap! Is that the best we can do here in the USA, in the year 2014?

Hence, a foolish population and it's public fiat are soon neutered, and hoisted on their own semantics. Worst, the emasculating campaign is funded, ironically, by the very people most desperate to maintain the buying power of their hoarded fiat currency. They desperately want to stop the flow of what they want! What can you do with such simpletons? Send them back to highschool?

Maybe the people running the Neuter-The-Fiat campaign will fall for a dose of their own logic? Fine. I hereby suggest that they maintain their cranial blood pressure by tightening a tourniquet around their neck, one twist per day, until their middle section gives up the battle & dies. They'll succeed, by stopping the flow of what they want.

Maybe it'll werk fer thum!



Thursday, January 9, 2014

Five Appalling Lies You Should Swallow, about Cutting Social Security? You Decide.

   (Commentary posted by Roger Erickson.)












Please get involved in this issue. This cannot stand.

Five Appalling Lies You Should Swallow, about Cutting Social Security?

Five Outright Lies Are Being Spread About Social Security - to promote significant cutbacks in eldercare and unemployment benefits.

These people are not just wrong, they're misguided to the point of being deranged, and are half way to destroying their country. This is no longer just Innocent Fraud due to ignorance, it's bordering on willful treason and sedition.

They must be stopped. Please consider forwarding the following links, and posting them at the website linked to above.

ps: Maya MacGuiness, director of CRFB reportedly receives a salary of $360,000 per year to work on reducing YOUR Social Security benefits. She's funded by billionaire Peter G. Peterson, who's been obsessed for decades with disenfranchising the Middle Class.

*** 

[I posted this comment at the CRFB website. Let's see if it survives their "moderator."]

Ed Lorenzen and the CRFB are starting from a false premise. They flat out miss a simple but critical point.

"Data is irrelevant without [full] context." Walter Shewhart

First: FICA taxes for elder & unemployment benefits aren't necessary for any other policy, or for Corporate Welfare. So they aren't for SocSec either. Just another regressive policy, reflecting 80 years of cruel, class warfare.
“I guess you’re right on the economics. They are politics all the way through. We put those pay roll contributions there so as to give the contributors a legal, moral, and political right to collect their pensions and their unemployment benefits. With those taxes in there, no damn politician can ever scrap my social security program. Those taxes aren't a matter of economics, THEY'RE STRAIGHT POLITICS. Franklin D. Roosevelt
Second: No fiat currency issuer ever has to balance "fiat." If the population (and/or economy) is growing, we have to rightsize non-zero inflation, just to maintain adequate liquidity for growing numbers of people & more transactions/year.
We Need a Bigger Budget "Deficit" - William Vickrey, Nobel Prize
&
Fifteen Fatal Fallacies of Financial Fundamentalism (see fallacy #6)

Third: Taxes are Irrelevant for ANY amount of fiat, no matter the policy.

Fourth:
 "Almost everybody talks about budget deficits. Almost everybody seems in principle to be against them. And almost no one, literally, knows what [they are] talking about." Robert Eisner, The Misunderstood Economy, p.90;


Fifth: Lorenzen and CRFB are completely out of paradigm when it comes to the very operations they are trying to discuss.
"Save Social Security From Its Saviors" - Robert Eisner

***

Sadly, Lorenzen, MacGuiness & Peterson think we're still on the gold standard. That paradigm hasn't existed since 1933. We've come a long way since then. We can't go back, without destroying the USA.