Showing posts with label economists. Show all posts
Showing posts with label economists. Show all posts

Thursday, April 12, 2018

22 months after Brexit all the "geniuses" are shocked that the U.K. economy is fine. It's what I said at the time.

Before and immediately following the Brexit vote back in 2016, I said that the U.K. economy would not be harmed and that the pound would recoup all of its losses if selling were to happen.

In contrast, all of the "geniuses" i.e. the economists, market pundits, hedge fund idiots and especially, the entirety of the business and financial media, said the opposite. They were all wrong. I was right.

Here are some videos I made at the time.

"Brexit and the British pound."

"British pound will recoup all post-Brexit losses"

"I told you: Whatever the initial reaction to Brexit was it would be wrong."

"Buy signal. Jim Rogers says Brexit will create worst bear market."

MMT understanding. Market savvy. Mental Game.




Monday, May 4, 2015

2 Nobel prize winning economists look stupid when asked about the economy

H/T to Tom Hickey for this and Lars P. Syll.

Watch this. These guys are Nobel Prize winning economists. After viewing this if you don't think that this profession is not loaded with the most useless examples of human stupidity then there is something wrong with you.
WHAT. FUCKING. MORONS.



Thursday, December 18, 2014

How To Get Economists Off The Back Of Humanity? Develop A More "Informable" Electorate.

(Commentary posted by Roger Erickson)






Sanjeev, from India, writes: "How do we get [India CB Head] RR off our backs?"

Well, the root cause of every addiction lies in the user base. So start by sending this article - and my commentary - to every department head of every university department in the world, and to their Deans too. Seriously.
It's obvious that economists aren't paying much attention to the obvious ...
... (even now, not just for the past 200 years, or even all the way back to before Alexander the Great & Hannibal formally glorified the dynamic power of organization; not that it hadn't been documented before, for those with the wit & experience to discern it).

Plus, send it to the equivalent of your Military Officer & Troop Training institutions. Ask them what it'd be like if citizens arrived to military service already understanding teamwork. Doh!

Quite seriously. One obvious suggestion would be to formally fuse Econ-101, Biology-101, Ecology-101, Sociology-101, Ethics-101 and Governance-101 as a start, so that no member of any those professions could again be so grievously ignorant of so much of our expanding and evolving context.

Maybe Accounting-101 and Banking-101 too, so people wouldn't forget what THOSE professions are for.

A minimal step back towards the rudiments of a Broad Education?

What could be more obvious?

Here's what: If our future citizens don't learn this expanded perspective on human culture by ~age 10, we're dooming ourselves to be far less than we could be. We can't stay in an Adaptive Race without going back to our own basics, and maintaining a more "informable" electorate.


Thursday, May 22, 2014

Curious That Physical Scientists Can Grasp Fiat Currency Operations ... While Most Economists Can't, Don't or Won't

   (Commentary posted by Roger Erickson: hat tip to Warren Mosler)



Maybe it's the mist?
Federal budget process: What did Leon Panetta mean? 

"Like most Washington public servants, Mr. Panetta holds the old-fashioned view that federal budgets should be balanced and the magnitude of deficits is an important metric for the economy. This view is appropriate for households and businesses that have limited financial resources. However, the federal government issues the nation’s currency and is not constrained by financial resources. It has all the financial resources it needs and is constrained only by the nation’s productive resources. 
Both political parties are dominated by the false view that the federal budget must be balanced. The only difference is that conservatives think the government has a spending problem and liberals think it is a revenue problem. Both are wrong and it is hurting America’s competitive global advantages."

The authors of this article?

Duane Catlet, retired career Ph.D chemist & materials technology manager.
Dan Metzger, retired Ph.D physicist & engineering manager



Wednesday, October 3, 2012

How To Explain Return on Coordination to Economists?

commentary by Roger Erickson

It seems obvious once said. Return on coordination = teamwork?

It's amazing how many people ask me for "the original reference."

Is there an original reference for 2+2=4? Why does anyone accept it otherwise? :(

Anyone who's ever learned coordinating customs such as "stay to the right" appreciates the cost of coordination, and the consequences if they can't. Humans even do that natually - given adequate feedback.  Return on coordination is the consequence of investing in that cost. Achieving that insanely great return is what drives all social species.

"It seems odd but it's true that often the most obvious things are the most difficult for people to see. Imagine showing fish what "water" is and explaining to them how it works. They may have an implicit sense of water but they have no explicit knowledge or understanding of it. Translating the implicit to the explicit so that they can see and understand as you do is your job as a writer!"
Derryl Hermanutz

True.  So how do you explain air to 6 year olds?

There are many quick tricks, like asking them to blow on the back of their hand, or sneeze, or yell, etc, etc.  I try to remember such methods and lessons when talking with economists.

If a picture is worth a thousand words, a shared sensori-motor experience is worth a million, and a shared cultural experience a billion words ... or more.

Obviously, written text is still a paltry medium compared to the full bandwidth of face-to-face communication, and even less useful as a replacement for full group experience & feedback, let alone the distributed motivation that follows actual development of group affinity. The more people you know well enough to care about, the less stuff falls through the cracks of a culture.

With growing group numbers, it's unpredictable what few patterns of shared signals will produce optimal group agility in given situations. Efficient messaging is discovered only with group practice, which is one reason why unemployment kills economies. Lack of group practice costs more than all other imagined costs.  It's a failure to invest in the cost of coordination, and it precludes any return on coordination.  Stupid, of course, since that's always the greatest return of all, by far.

So, how does one explain return on coordination to economists? :)

Please list your tricks and suggestions in the comments.

Example: Ask a group of orthodox economists to huff and puff at the same time, and blow an unemployment form off a table (when any amount of hot air from one alone won't suffice).


Wednesday, September 5, 2012

Why Economic Policy is Too Important to Be Left to Economists

commentary by Roger Erickson

Thank goddess someone in geospatial science finally spoke up! It takes a non-economist to see the obvious.

The Fable Of The Marbles And The Teacher

Please send this to every politician in the USA. Heck, to every citizen whatsoever. We have some missing marbles. Can we map the distribution of missing marbles as a negative potential, and find it interleaved among diverse specialists who don't talk to one another, and therefore concentrated in elected politicians ... who talk only to people who don't talk to one another.

Where's that leave politicians? In a race to the least marbles?

Thursday, June 28, 2012

Next Steps for OpenSource Social Media, Inter-Connectivity and OpenEconomics


Take all the economic doom & gloom as one example. As another example, take all the kerfluffle about the Artificial-Intelligence "singularity", and fears that we'll be conquered by our own Borg machines.

Not to worry. As anyone experienced in Operations vs pure theory will probably appreciate, what matters above else is adaptive agility, and how to build more of it, cheaper/faster/better.

The way all "selection" occurs is through ontogeny - the rebuilding from scratch of complex systems, rather than the constant, recursive tuning of systems already to densely engineered to context. The desperate race to densely engineer JIT/JAN* solutions to fleeting contexts, dictates that endless hacks must be utilized. So many hacks are eventually used that all system hacks, from genes to fore brains to gold-std Central Bank operations, are first built on top of old hacks, and eventually completely replaced. They are rarely, if ever, redesigned.

* (Just in time / Just as needed)

Ontogeny works via agile recombination. NEVER underestimate that. Ontogeny means semi-random regeneration, where everything is reconnected to everything, and ONLY THEN relaxed to the minimal connections, data exchanges & inter-dependencies needed in order to map system function to a given, fleeting context.

There's a reason why all known complex species generate planned obsolescence into their members. Most lifetimes are tuned to the recent rate of context change that cannot be handled by plasticity of member behavior. Instead of endlessly hacking older systems, it's safer to re-launch updated models after intervals dictated by accumulating experience.

In the case of economics of nation states, it's not about the static assets tracked by economists & accountants. Rather, it's about the group intelligent agility quotient (GIAQ) that a given electorate can muster as contexts keep changing.

Design-build in construction is a practical analogy for those not familiar with biology. Decades ago, architects & builders recognized the divergence of what can be designed, vs what can actually be built, in sequence. Rather than the high cost of re-building with increasing frequency, a logical solution was formed. Design & construction were fused, basically dictating that only the skeleton of a design was constructed, before anyone attempted to finalize the more superficial design details. The same logic is followed in various forms of "Agile Programming", where initial function is tested before trying to nail down all superficial features & interdependencies.

Cultural evolution is no different in principle than physiological evolution. As contexts change, how quickly can a given culture reinvent itself & explore as many of it's available options as possible? What social catalysts can it invent - and how soon - to accelerate the process of re-connecting all old & expanding numbers of citizens? Then, how quickly can the same or different catalysts work in reverse to allow an enlarged population to relax into the minimal connectivity patterns allowing it to tune to a new context? And, how does it perform both steps WHILE ALSO retaining the intrinsic capability to do it all again, as soon as needed?

At the end of the Civil War, Joshua Chamberlain famously said: "We know not of the future and cannot plan for it much. But we can ... determine and know what manner of men we will be, whenever and wherever the hour strikes ... ."

Today, we must ask of ourselves and country a more distributed question. We still cannot plan for a completely unpredictable future. Yet we can, indeed, determine what multi-level, adaptive rates our citizenry & diverse processes can muster - when the micro-second strikes.

We can do that by developing the social instrumentation to connect everyone to everyone, upon demand, JIT/JAN. We can also allow most people to settle into the practiced routines that allow us to optimally adapt to a given context. When that context changes, however, we must have a populace previously and fully aware of the need to rapidly meet demands for radically adaptive change, and expecting to meet that challenge sooner or later. A population comfortable with change, and trusting it's ability to change, will be the superior "Context Nomads."  A population not prepared, will be less likely to successfully migrate across successive, changing contexts.

Can we retain a Context Nomad culture? Of course we can. We're already over-able to accomplish such maneuvers, as our various military, sports, theater, music, charity and business entities amply prove. All we're missing are two subtle requirements to scale group agility nationwide. First, incorporating "adaptive change at any moment" more fully into our teaching, training and practice habits. Second, selecting the social catalysts that allow us to practice responding to whatever changes we advise ourselves to prepare for, including surprises themselves.

We're mostly there. We've always had social mobilization methods, and are well on our way to formalizing them in virtual forms capable of supporting data throughputs previously unheard of !

In the case of the AI "singularity," it's far fetched. Who's going to rewire millions of new cpu models every 9 months or less? Who's going to redesign and rebuild all the "catalyst" machines that will redesign hardware? And what reference survival purpose will that hardware be aligned to?

What's seems inevitable is an inflection point in human GIAQ. Once our populations are better "instrumented," and can rapidly parse all OpenSource info across large populations - to converge to what matters most in any context - then large human aggregates will "know what they all know," upon demand, and be prepared to use it with agility too. After that, it's entirely a matter of practice.

Our cultural challenge is rather like that of the ~70 trillion cells in your body having their cake, and being able to wield a credit card, refrigerator, table, plate, knife & fork too - before someone else eats our lunch - and us - first! Tempo is always part ofan  agility equation. With group practice we can eventually even link, stage & sequence ingredients, utensils & ovens.

What proportion of available data is passed between your 70 trillion cells at any instance in any context? Amazingly little. Only what absolutely needs to be. 70 Trillion is a very large number. In comparison, with only 312 million members in the USA (2012), we have one helluva inflection point to go through ourselves.

There's still an additional subtlety that Economists & IT people don't fully appreciate from biology. It follows a thread that Walter Shewhart stated back in the 1920s - "Data are meaningless without context." We also know that most data are also irrelevant even within a given context. What we always face, therefore - in our adaptive race with tempo-driven milestones & frequent choke-points - is that all historically known instrumentation systems are under two types of unrelenting pressure. First, to converge to reduced bandwidth just minimally necessary for the RANGE of contexts we encounter. Secondly, and simultaneously, to retain the ability to adjust that range - through rapid recombination - to the changing demands of new contexts.

By studying the envelope of data exchanges required over time, we can evolve social media channels tuned to the minimally productive bandwidth which allows adaptive group agility.  We can do that WHILE retaining the capability to change any bandwidth, as needs change.  Developing the tools to change anything even faster is the real adaptive race.

The bandwidth point is consistent with all known sensory systems. All of our known physiological senses are constrained to the particular visual/auditory/tactile/olfactory/taste/vestibular BANDWIDTHS describing the minimal envelope of challenges we've recently faced. We've learned we don't NEED most data, and so don't need to collect, parse, separate or use most of it. That saves a LOT of overhead, and is an intrinsic part of agility, ontogeny & evolution. We can augment our data bandwidth at will, but will waste time doing so UNLESS and UNTIL it's actually required. 

As an aside, investors may think of the differing rates-of-change of multiple social-media data bandwidths as analogous to 2, 20, 50 and 100 day moving averages. In social media, however, the bandwidth of each data channel can drift with time, based on full-group feedback about group outcomes.

Rigorous bandwidth tuning will apply to all our emerging, OpenSource social media channels. There's an urgent need to "cut down the useless chatter" when short-term group agility is needed. The signal/noise ratios required for specific group maneuvers is a dynamic property defined entirely by context-specific group practice - called OutcomesBased practice. More to the point, to tune social communications upon demand, we'll need to describe, define and invent social sub-catalysts specific for the task of tuning social-media catalysts upon demand.  OpenSource social media already demands nested levels of catalyst & sub-catalysts.

We're just starting the process of applying OutcomesBased training to social media. Once practiced, the outcome will be astounding, compared to our previous abilities.

Only then will we be able to replicate agile social ontogeny, and drive the Adaptive Rate of the USA at a tempo ensuring not just survival, but also insanely great accomplishments we can't possibly predict or even imagine.