Sunday, June 3, 2012

Europolitics & Freedom to Brew Beer on my Own Farm in Maryland


New - Freedom to Brew Beer on my Own Farm in Maryland

Remind you of Europe?  Underwhelmed? So was my son, who wrote from California.

Great! What bothers me about this is how oddly specific it all is. This is not in the spirit of the USA where you're free to do anything not explicitly prohibited. The whole line of reasoning that brings us this law is that you have to meekly ask permission to do anything. We shouldn't have ever needed a law saying farmers are allowed to brew beer and sell produce; they've been doing that since prehistory!

Is this indicative of our times, or what?  But what does it really mean, and how could we productively respond?

Yes. Specific lobbies - basically community squeaky wheels - are always convincing communities to do many things that are illogical and/or blatantly abrogate prior policies or freedoms. Once recognized, they could always be undone, but we have these complications in our legal code called precedent and fairness. Mistakes usually get corrected & bad practices deprecated "from this day forward," not retroactively.

What's always needed is a more activist electorate, to notice & correct things sooner rather than later. Our nation survives by adaptive rate, not just adaptation.

That brings us back to our usual rub - people aren't willing to do much, even think, until something affects them directly. Even then, they usually want the problem to go away, rather than becoming involved in recursively tuning a complex system, i.e., their community culture.

It's always gonna be this way, because no matter what we do, we always spawn even more options.  So how is it that we survive?

Every evolving species - even us - is always breeding populations slightly more predisposed to faster change, but ONLY by generating enough friction to actually reduce the proportion of currently defined Luddites. That's always an ugly, competitive process, no matter what's going on. Any evolving aggregate is stuck with titrating - by trial & error - exactly what adaptive rate is required to survive an ongoing adaptive race.

Tribal societies got VERY good at this, given controlled population sizes. Until they ran out of frontiers to flee to, they had plenty of time to talk, at the pace they were able to fully discuss things at. Small groups could migrate everywhere & become anything, with only the occasional family fratricide to contend with.

Uglier experiences come when aggregates are forced to organize on a larger scale. War is just fratricide on another level. Growth requires transitioning even more people to some adaptive group practices, while getting them all to give up some local practices in order to accommodate & leverage the new stuff. That particular discussion always gets heated, & boils down to close examination of various "Why should I have to ..." questions.

No matter how good a given-size group was at examining & exploring group options, it takes novel tools, feedback channels, tolerance limits, and focus in order for an even larger group to be equally or even more agile. Yet that is exactly what's required just to survive!

We really should teach that simple truth to kids, beginning right in Kindergarten.
It's a helluva conundrum. Larger aggregates generate more options, through indirection, but simultaneously increase the demand for novel coordination methods. The cost of coordination is always the highest cost, and the only thing that outpaces the cost of coordination is the return on coordination.

It's Ye Olde Tiger by the Tail Problem. No population comes out un-bloodied, but some do survive it. It's a nice problem to have, if your aggregate can handle the stress.

We're always waiting for our old Luddites to get out of the way, but no one's willing to let you rush things without absolute proof. While waiting for proof, we always miss more opportunities than it's worth waiting for ... but we learn which ones were not worth missing ONLY BY TRIAL & ERROR! It's enough to make you either pull your hair out in frustration, or stand in total awe at the infinite scalability of our options.

For want of aggregate self-motivation, most of our output and adaptive rate is always being sacrificed - as an output gap (proportional to an Adaptive Rate Gap). No adaptive selection appears until new aggregate potential is adequately sensed. Therefore, our rate-limiting challenge is to enlarge our aggregate perception and situational awareness.

To be group aware, or not to be. Aye, that is the question.

Yet to be more group aware, sooner, or not to be! Aye, that is the even bigger question.


What to do about it? Even thinking about that always brings me straight back to making a few simple changes in education, training & practice - all the way back to Kindergarten. A little change in perspective - or as Warren Mosler says, a change in paradigm - would unleash unimaginable output in this country!

It's not enough to have a subset of people aware. For example:
“The world is not coming to an end; rather, it feels as if we are on the doorstep to another major European integration move.”

That's an admirably optimistic outlook, but - for Pete's sake! - did it really have to require 13 years of increasing, lost output to even start raising the question widely enough?

The fact that some actually think so is an indication of how colossal our waste is, and how blase too many of our policy staff are! The USA asked & answered this question over 200 years ago, and reexamined it with impressive pace back in 1933. I can't imagine why it's taking supposedly educated & aware European populations this long to even start asking the right questions!

And is our breakaway thinking receding back into the European pack?   The recent Maryland ruling on farm beermaking is just an indication of how much like archaic Europe we've become. It's not too late to survive, if that's any consolation.

What could be done to make our electorate more agile, before we throw away so many options that the USA collapses? I'm beginning to think that our only chance is faster/cheaper/better catalysts for OpenSourcing more low-margin stuff. That would help us continually accelerate our focus onto higher margin, aggregate options.

Randy Wray — The Federal Budget Is Not Like A Household Budget: Here's Why


Stephanie Kelton reminds via Twitter of Randy's excellent short piece debunking the government-is-a-big-household analogy.

Read it at the Roosevelt Institute (archived)
The Federal Budget Is Not Like A Household Budget: Here's Why
by L. Randall Wray | Professor of Economics, UMKC
(Cross-posted at Naked Capitalism, February 11, 2010)

Bookmark this for the coming political kerfuffle over the debt ceiling, which now seems to have become obligatory due to fiscal conservative craziness.

Stephanie also reminds us of Randy's Deficits Do Matter, But Not the Way You Think (July 20, 2010, Roosevelt Institute, Cross-posted at Credit Writedowns). Bookmark it, too.





Barry Ritholtz — 10 Year Bonds Around the World

Bianco Research
Read it at The Big Picture
10 Year Bonds Around the World
by Barry Ritholtz
(h/t Scott Fullwiler via Twitter)

Sample the comments for some humor. Example: "Valuation doesn't matter until it does." You know, any day now. I wonder how many of these people are putting their money where their mouth is and going short after so many got burned so badly. Explains why people are willing to take the losing side of a trade. They don't understand valuation.


Marshall Brain — Robotic Freedom


Longish but a good analysis of what to expect in the robotic revolution that is already underway. It's relevant to the discussion of a JG/ELR and the overall MMT macroanalysis, too, since there are going to be more unemployed people as automation increases — millions of them.

Read it at MarshallBrain.com
Robotic Freedom
[Part 3 of the Robotic Nation series]
by Marshall Brain
(h/t Trixie in the comments at heteconomist.com)

Saturday, June 2, 2012

Germany has three months to stem euro crisis - Soros

Reuters) - Germany and its central bank are unlikely to lead the way out of the euro zone debt crisis within three months time, after which it will be too late, U.S. billionaire George Soros said on Saturday.

Speaking at an economic conference in Trento, Italy, Soros said that the euro crisis - which he defined as a sovereign debt crisis and a banking crisis closely interlinked - threatened to destroy the European Union and plunge it into a lost decade like Latin America in the 1980s.
"A similar fate now awaits Europe. That is the responsibility that Germany and other creditor countries need to acknowledge. But there is no sign of this happening," Soros said.
Read the rest at Reuters
Editing by Mike Nesbit

FDR — Private Power versus Democracy


Tao Jonesing —Myths, Laws, Ethics and Hidden Truths

All modern states are based on four things: myths, laws, ethics and hidden truths.....

Once the masses realize that the laws and ethics of society only bind them and not those who truly rule, the masses begin to question their myths. 
And that is when all hell breaks loose.
Read it at Tao Jonesing
Myths, Laws, Ethics and Hidden Truths
by Tao Jonesing

Daniel Gross — Democracy versus the Eurozone

The European Union is a voluntary quasi-federation of sovereign and democratic states in which elections matter and each country seeks to determine its own destiny, regardless of the wishes of its partners. But it should now be apparent to everyone that the eurozone was designed with a very different institutional arrangement in mind. Indeed, that design gap has turned out to be a major source of the monetary union’s current crisis.
Read the rest at Project Syndicate
Democracy versus the Eurozone
by Daniel Gross | Director of the Brussels-based Center for European Policy Studies.

Paul Krugman — The Breakeven Point (Wonkish But Terrifying)

If the ECB can’t change this perception very, very soon — and I think it really is up to them — this goose is cooked.
Read it at The New York Times | Conscience of a Liberal
The Breakeven Point (Wonkish But Terrifying)
by Paul Krugman | Professor of Economics, Princeton University

Not that wonkish, but terrifying.

The politics seems stuck. If the ECB doesn't step up in time, and there's not much time, it may well be over.

New employment bill introduced by Rep, Conyers (D-MI)


H.R. 870, “The Humphrey-Hawkins 21st Century Full Employment and Training Act”

Bill Summary and Status

(h/t Clonal in the comments)

52 co-sponsors.

Steven Spadijer — "The old, the new and the ugly"


Presentation and interview at Prosper Australia
Blaming The 70′S Economic Bust On Oil Is Incorrect
Posted by Karl Fitzgerald
(h/t Senexx at Modern Monetary Mechanics)

Senexx adds that Steven Spadijer is both a Neo-Chartalist and a Georgist.

Rodger Mitchell — “You can’t fire me. I’m on JG”


Rodger attacks what he terms the five myths of the JG.

Read it at Monetary Sovereignty
“You can’t fire me. I’m on JG”
by Rodger Malcolm Mitchell
(h/t JK in the comments)

UMKC makes Playboy


These Rogues of the Dismal Science Have Been Vindicated by the Economic Crash. How Much Longer Can Mainstream Economists Ignore the Heterodox?
(h/t Dan Kervick on Twitter, via Kevin Fathi by email)

RSJ — The Odd Arithmetic of Brad DeLong


RSJ is back for those who follow him.

Read it at windyanabasis

The Odd Arithmetic of Brad DeLong
by rsj

HBR — Honesty Really Does Start at the Top


Read it at Harvard Business Review | HBR Blog Network
The Data's In: Honesty Really Does Start at the Top
by Jack Zenger and Joseph Folkman

Jack Zenger is the CEO and Joseph Folkman is the president of Zenger/Folkman, a leadership development consultancy.

circuit — Canada: Government deficit shrinks, Household sector deficit soars


Sectoral balances.

Read it at Fictional Reserve Banking
Canada: Government deficit shrinks, Household sector deficit soars
by circuit

Dmitry Orlov — Sustainable living as religious observance


How to make religion as an evolutionary, cultural and institutional force relevant to contemporary challenges, based on previous successes and learning from past failures.

Read it at Cluborlov
Sustainable living as religious observance
by Dmitry Orlov
(h/t Energy Bulletin)

Menzie Chinn — China and the Impending Global Slowdown

The slowdown in the BRICs and recession in the Eurozone (and the UK!) highlights the need to avoid the contractionary impact of ending extended unemployment benefits, the payroll tax rate reduction, and the provisions of EGTRRA and JGTRRA.
Read it at Econobrowser
China and the Impending Global Slowdown
by Menzie Chinn
(h/t Mark Thoma)

Friday, June 1, 2012

Dave Altig — What is shadow banking?

In getting to the essence of what the future of shadow banking will (or should) be, I think it is instructive to consider a set of questions that were posed at the conference by Washington University professor Phil Dybvig. I'm highlighting three of his five questions here:

"1. Is creation of liquidity by banks surplus liquidity in the economy or does it serve a useful economic purpose?

"2. How about creation of liquidity by the shadow banking sector? Was it surplus? Did it represent liquidity banks could have provided?...

"5. If there was too much liquidity in the economy, why? Some people have argued that it was because of too much stimulus and the government kept interest rates too low (and perhaps the Chinese government had a role as well as the US government). I don't want to take a side on these claims, but it is an important empirical question whether the explosion of the huge shadow banking sector was a distortion that was an unintended side effect of policy or whether it is an essential feature of a healthy economy."
Read it at FRB Atlanta | Macroblog
What is shadow banking?
by Dave Altig, executive vice president and research director at the Atlanta Fed
(h/t Mark Thoma)

Izabella Kaminska on gold


Credit money, where money use began is based on mutualism, community, solidarity, and trust, all social values. Money itself is an idea rather than a natural "thing," that is, as social construct not found in nature but introduced as a societal institution for facilitating exchange of goods in a way that is more formal than sharing and more convenient than barter.

The more money is divorced from its social context, the more impersonal transactions become. In ancient times, barter and the exchange based on precious commodities such as gold and silver functioning as numeraire took place mostly for trade among communities, where there was little social interaction other than trade.

Hard money was also adopted for payment of troops, again a rather impersonal relationship between soldier and sovereign.

The harder the money the more individualism is emphasized and mutualism submerged, and vice versa. This is played out at the level of individual nations, which historically have acted like adolescents, when trade is based on exchange of precious metals for goods and mercantilism comes to prevail in international relations, overshadowing cooperation and coordination and often leading to wars, and domestic depressions since gold hoarding is deflationary.

One of my early mentors who went through the Great Depression used to say, "What would have happened if everyone just kept doing what they were doing anyway?"

Izabella Kaminska tells the story at FT Alphaville in a series of two posts.

Read it at The Financial Times | FTAlphaville
Debunking goldbugs
by Izabella Kaminska

by Izabella Kaminska

(h/t Andy Blatchford via email)

STop blaming and attacking the jobless. They're NOT taking your money.

I'm sick and tired of these holier-than-thou jerks blaming the jobless for taking their money and being on the dole when it's really the other way around.

IMF, Cease - Forever - Trying to Completely Deregulate Cross-Border Finance


You never know what those wacky 1% at the IMF are STILL up to. Is Jamie Dimon on THEIR board too?

Very interesting commentary on what the IMF has been pushing, and still could get away with "promoting". Still intent on winning Royalty's war against reform?

Historic moment for the IMF

"In the 1990s however, the IMF pushed to ... effectively deregulate global financial flows."

Nevertheless:

"The attempt of the IMF to acquire authority over countries’ capital account was rejected."

And now:

"the institution that pushed for global de-regulation of cross-border finance in the 1990s now says that: capital account liberalization is more of a long-run goal and is not for every country at all times"

Whoa!  Thanks for small favors, at least for now.

Evidence is briefly reviewed, and the authors of this article conclude:

"So, the view that all nations should eventually completely deregulate cross-border finance should be put to rest."

Ya think?  You mean it's not yet?  What good is a sovereign currency if a international bank cartel dictates it's limits on YOUR current-account levels?


Marshal Auerback — A possible remonetisation of gold?

With the ECB ruling out the use of its balance sheet as a means of recapitalising Europe’s increasingly fragile banking system, the search is on for alternatives. The Daily Telegraph ran an article earlier this week looking at Germany’s proposed European Redemption Bonds as asolution to the euro crisis.
Under the proposal southern European debtor states would pledge their gold reserves as collateral under a EUR2.3trn stabilisation plan. The SDP opposition supports the idea and the Greens have said they will block ratification of the Fiscal Pact unless this is adopted. The plan splits the public debts of EMU states. Anything up to 60% GDP would remain sovereign and anything over that would be transferred gradually into the redemption fund. The fund would gradually retire the debt over 20 years. Whilst Germany would suffer higher credit costs – (Jefferies calculates it would cost Germany 0.6% GDP annually) – it would have the security of gold lodged to the fund, and is therefore acceptable to the German public. Germany’s Five Wise Men also say this cost to Germany would be modest compared with the growth that would come from a disciplined economy. The fund would also relieve the ECB of its need to monetise to bail out Europe, again something Germany desires.
Read it at Pinetree Capital | MacroBits
A possible remonetisation of gold?
by Marshall Auerback
(h/t Kevin Fathi via email)

The old gold fetish rears its head out of the swamp of the history of failure and disaster.

More concerning:
"Any “United States of Europe” will in become a de facto ”United States of Germany” if this proposal is a go.

Our Declining Representation Ratio - "Reality Democracy"?


People have harped on our declining representation ratio for over 2 centuries, ever since our 1st Congress "fixed" the # of people one Representative could acceptably represent. The fix began soon after, and has been fixed repeatedly, through a process of fixed dilution.

In many other systems - from neural networks to engineering to ecology to cellular biology - it’s clear that inter-dependency-management has to scale FASTER than the # of components to be organized. Competition dictates that we cut every corner imaginable & use every hack available, even though that creates a messy string of over-adapted hacks.

So how do impossibly complex systems continuously re-tune themselves to changing situations?

It’s called sexual recombination.

We periodically re-connect everything to everything, and then relax into a state of hacks & shortcuts that best maps to that brief situation. When things change, we can’t undo ourselves, so we die & spawn kids to re-connect & do it all over again.

So how do we stay agile enough to periodically re-connect all cultural perspectives? That requires statistical definitions of: 
adequate, real-time sampling;
adequate, real-time cross-talk;
adequate, real-time testing & verification.

We need formal methods for accomplishing those steps, just to continuously remap Public Purpose to changing circumstances.

Do we need more top-down, or bottom-up agility?   I'd argue for the latter.  

US democracy doesn’t require 250 states, as 1st pass thinking suggests.

Comically, the closest we come to dynamic democracy is district gerrymandering! 

We should re-purpose that tactic, and just keep subdividing existing districts into population-segments, and then DISTRIBUTE responsibility for policy decisions to distributed decision-making.  Then our task would map-reduce to constant polling on selectively-vetted issues-of-actual-importance, user-generated & user-vetted.  We could do that now, using cell phones.

What level of division & tiered representation would recapture meaningful responsibility for distributed decision-making, at all policy levels?   You tell me.

Congress should be replaced with an Android app supporting real-time decision-making by our ~150million eligible voters.

We have to do something to re-distribute decision-making.  Otherwise, we’re mathematically condemned to group-policy remaining dumber than our available group-intelligence. That, as a policy choice, is assisted suicide, which – ironically – is already illegal.

Is it always technically illegal to do what we're already doing? No wonder we had to repeal Prohibition along with the rusty Gold Standard. Can we repeal a few other prohibitions too?

Do you know of any "mutant" town, city, county or state in our country testing those waters?  If someone doesn't explore & report on our emerging options, we'll never evaluate them in time to use 'em.

Heck, I'd even settle on a reality YouTube Channel.  "Reality Democracy."

Warren Mosler — How to fix the euro banking system

Cross-posted from The Center of the Universe

How to fix the euro banking system
by Warren Mosler
June 1st, 2012
The banks need, and I propose, ECB deposit insurance for all euro zone banks. 
Currently the member governments insure their own member bank deposits and do the regulation and supervision.
 So to get from here to there politically they need to turn over banking supervision to the ECB.
Let me suggest that’s a change pretty much no one would notice or care about from a practical/operational point of view?
The political problem would come from losses from existing portfolios that, in the case of a bank failure due to losses in excess of equity capital, currently would be charged to the appropriate member nations. 
So under my proposal, for the ECB to suffer actual losses a member bank that it supervises and regulates would have to suffer losses in excess of its capital.
And none of the member governments currently think that their banks have negative capital, especially if they assume member governments don’t default on their debt to the banks.
And this ‘fix’ for the banking system would help insure the member governments don’t default on their obligations to their banks. 
The euro zone has three financial issues at this point. One is bank liquidity which this proposal fixes. Second is national government solvency, and third is the output gap. 
They need to allow larger government deficits to narrow the output gap, but that first requires fixing the solvency issue.
The solvency issue can be addressed by having the ECB guarantee all of the member government debt, which then raises the moral hazard issue. 
The moral hazard issue can be addressed by giving the EU the option of not having the ECB insure new government debt and forbidding its banks to buy new government debt as a penalty for violators of the debt and deficit limits of the Stability and Growth Pact.

John Goldberg — Young Americans ‘so frickin’ stupid’ they shouldn’t get to vote

Appearing in a video published online on Thursday, Jonah Goldberg, editor-at-large for the neoconservative National Review Online website, explains that he believes letting 18-year-old Americans vote is a big mistake that should be taken back....
Young voters were seen as key to President Obama’s victory over Sen. John McCain (R-AZ) in 2008, where they supported the Democrat by a margin of 68 percent to 30 percent. Obama has again made it his goal to court younger voters, stopping at university campuses around the country to promote his student loan reforms, among other policies.
The U.S. voting age was set at 18 in 1971, codified by the 26th Amendment to the Constitution. The amendment was ratified by the states partially in response to youth protest movements driven by young Vietnam War veterans who objected to being sent to fight and die for their country while having no say in its governance.
Read it at Raw Story
Conservative editor: Young Americans ‘so frickin’ stupid’ they shouldn’t get to vote
by Stephen C. Webster

Old enough to serve and die, but not smart enough to vote.

Speaking of idiots


Situation good for stocks, not so good for people? What are the tolerance limits?


Over at Mosler Economics, a recurring theme keeps cropping up, about given market conditions being "good for stocks, not so good for people."  Does that imply a steady-state summary of SNAFU?

see here
and "Payrolls: Bleak with 1 Silver Lining" (upcoming at Warren's site)

Short term problem for "investors" is that stocks may do well, right up until some "local spring" occurs, and locals decide to alter the existing peg between stocks & welfare of the people. The core question reverts to "What are we investing in?"

Long term problem for individuals in aggregates is "good for stocks; not so good for people."


What was that comment about aggregates being irrational longer than members can remain solvent?  And it's inverse corollary - aggregates remaining insolvent even longer than a threshold # of members see the light?

So what's a "normal" amount of AFU?  How do we adaptively manage net-AFU ("NAFU")?

Conclusion: We need a more OpenSource, dynamic model for co-tuning investments in personal & aggregate capabilities - in real time.

Functional Finance & it's evolving MMT operations-set comes closest yet, as far as I know. Small tribal systems accomplish this through persistent affinity tuning, which simply doesn't scale up to our current population sizes. Neither do rules-based systems (i.e., legal codes). Financial models alone sure as heck don't! Their narrowly perceived "impact" is invariably completely orthogonal to our aggregate adaptive path.

Are we trying to enforce convertibility between financial & human-welfare metrics, or do we have to transition to a fiat options-for-the-aggregate policy system? Shouldn't policy float with enough agility to allow optimal pursuit of public purpose?

Stocks vs people comparisons obviously involve dynamic situations with 2, independent variables (yes, each each is the sum of a complex polynomial, but let's just keep it simple for now).

Such situations can adjust in infinite ways - theoretically - but eventually only a few, from "our" perspective. Here are 3.

Plutocrats holding stocks can benefit, & seize control of serfs.

Dynamic stability can pause somewhere, as the Pareto ratio briefly stabilizes anywhere between 1 to 99% disparity.

Serfs rejecting not-so-good stock/people pegs can rise up and financially-guillotine some fraction of the plutocrats, ala the 1776 US Revolution, the 1789 French Revolution, or the 1933 New Deal.


What determines which route current aggregates take, and how do we stay within tolerance limits separating gracious vs wasteful aggregate adjustments?

Some immediate, $100 questions arise, about managing how close we get to some of those important & very dynamic tolerance limits.

1) When manipulating available "aggregate-buffers", e.g.:
__buffer unemployment (serf) stock;
__buffer commodity stocks (oil reserves, etc);
__buffer "money" stock (ill defined, lost between buffer commodity & buffer fiat);
__buffer distribution of individual enablement;
__buffer "net welfare of the people";
__etc, etc, etc ...

... which buffers are most important to manage, how well?

(Depends on whether you have a:
personal-investor-only outlook, spanning any/all aggregates, ala MMR,
or a patriotic, aggregate-options approach, ala Warren Mosler,
or a pan-aggregate eco-approach ala ECT.)




2) Taking the operating-aggregate approach, the buffer metrics in play all sum to a buffer national capability stock (defense/security, competitiveness, etc, etc).
This always involves many uncertainties.  (Combine Heisenberg's Uncertainty Principle with Darwin-Pirsig's static/dynamic value spectrum.)
..How many optional ways of failing can an aggregate choose from?
..What determines whether it can detect & recognize the particular form of suicide it's pursuing, and respond?* 


3) In the USA, do we, or do we not have an adequately accurate model of #2, to guide our actions?
Of course there's no absolute metric, but do we have a currently-adequate model distributed across the group-mind of our electorate?


4) No?  Then do we have a theory, method or process for keeping our nation afloat as it surfs oncoming reality waves?
Or are we already hanging 10million, in a futile attempt to ward off an already-inevitable, aggregate wipe-out?


5) No?  Then do we at least have a service to clean up all the pants being wet as that slowly sinks in?
(You're doing a heckuva job Brownie!  You too, mortgage/car/student loan guys!)


6) The DoD has an old rule of thumb for dealing with irritants.  It's called the "3-i's" of contingency management - can we apply it to ourselves?
Unfortunately, that strategy turns out to be overly simplistic, as demonstrated by the drones in our current NeoConniving policy outlook.

i) instigators - go after the source & stop it (but in this case the residual source is the future, and we can't predict it)

ii) intercept -   disrupt whatever's already in flight or in the works;

iii) impact -     mitigate & survive whatever can't be prevented.

So, do we have an evolving strategy to look even further than the droning, 3-i's approach?


7) Can we use an indirect, end run around the limitations of the 3-i's?  One that involves adapting ourselves?  The "3-a's" - for agile adaptations?
If we work on being all we can be, then:

a) we need fear fewer, if any, automatic reactions to our perturbations;  less paranoia;

aa) we will - earlier on - detect, recognize & accommodate enough things occurring to go on our way, unfazed;

aaa) by earlier/better/cheaper self preparations, we accommodate whatever's ongoing, and go on our way unhindered.


So, back to the question at hand. How do we track how close our population gets to its limits? The ECB, Euro & national parliaments don’t seem very good at tracking that metric … at all.

Does ANYONE have any suggested answers?

Here's a starting goal - just an outlook for alignment. We don't NEED "Super-Economist." In fact, we need to avoid the very myth of pursuing individual prizes, since it's so self-destructive for our aggregate. Instead, we need to encourage success through the quality & pace of distributed decision-making. To achieve that, we need to allow distributed citizens the wherewithal to accelerate the quality & pace of distributed decisions, so they can sum to a more wholesome whole.

To do that, we need our distributed policy thoughts to stay the hell out of everyone's distributed tactics - unless absolutely dictated by proven, aggregate need.

More suggestions absolutely needed.



* [Note: Group intelligence cannot be represented in the output of any pundit, no matter the magnitude of their ego. The Heisenberg Unintelligence Principle proves that the spiral of pursuing a "prize" negates the relevance of what's spewed circa the event. In a curious twist, the super-weak "ego" force causes "matters" to create "not-matters" as an automatic de-stabilizer. :) ]


Romney jobs plan = no jobs plan

Romney "jobs plan." Here's what he said he would do to create jobs.

1. Kill Obamacare
2. Balance the budget
3. More foreign trade pacts
4. Drill, drill, drill

In other words, Romney's jobs plan equals no plan. It's the "Confidence Fairy," combined with expatriating more of our production, combined with poisoning the domestic environment for the benefit of the oil companies.

John T. Harvey — The Horror Movie That Is Fiscal Responsibility

You know that incredibly frustrating feeling you get in horror movies when you see someone exploring the dark, dusty mansion alone, walking from room to room armed only with a flashlight, and you say to yourself, “Noooo! Don’t do it! Get the hell out of there or you’ll be killed!!!” Many economists have that feeling right now. It could not be more obvious that we desperately need an increase in the demand for goods and services, yet both Democrats and Republicans (though not to the same extent) are calling for “fiscal responsibility” in the form of reduced government spending. Idiots. You might as well give Freddy Krueger a key to your house and turn off all the lights.
Read it at Forbes | Leadership
The Horror Movie That Is Fiscal Responsibility
by John T. Harvey | Professor of Economics at Texas Christian University

He says "idiots," we say "morons."