Showing posts with label nominal. Show all posts
Showing posts with label nominal. Show all posts

Thursday, July 23, 2015

Perhaps It's Time To Just Call A National Dumb Conference.

   (Commentary posted by Roger Erickson)

On 2nd thought, make that "International." We'll need auto-spewers capable of attracting more attention than all Murdoch media combined, but with actual links to reality, for those able to tread propaganda.
Brian Romanchuk ‏@RomanchukBrian
"JPY Slides After IMF Warns Debt Is "Unsustainable"" -Zero Hedge: Doubling down on stupid. http://www.zerohedge.com/news/2015-07-23/jpy-slides-after-imf-warns-debt-unsustainable …

Roger G Erickson ‏@rgeOps
@RomanchukBrian I'd say it's past quadrupling down, Brian. They're going for fixer than not broken, which is always expensive to repair. :(
Fiat is unsustainable? When nominal exceeds IQ, there's hell to pay?

I am not making this up. Lily's axiom is still true. 

This is the vaunted IMF we're talking about here. When they make warnings ... people [used to] listen. Perhaps that organization has the same fetish for countries that Dominique had for maids? Has anyone pulled the curtain back yet?

Anyway, it's a deluge, time to call in Noah's Bark.

How does an expanding aggregate stay ahead of it's own stupid?

Do they keep their Fx afloat by hoping it's bark is worse than it's bite? At this point, we might as well say anything, and see how the Sophists decide to interpret it.

Perhaps they're thinking that a flood of wrongs will miraculously produce a right? Shall we just retire to the porch and wait for a stoolpigeon sighting?

Perhaps it's time to just call a National Dumb Conference.

We can partner with the Darwin Awards, and offer to judge prizes for different size aggregates?

And an associated essay contest as well, in honor of Fiaticus A. Lynch, mythical hero in "To Make a Killing, Nerd!"

That will work, of course, only if it's backed by a country with a strong fiat currency. Let's ask Putin.


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?"

Saturday, January 25, 2014

A Rigged Game. Pathetic. Played Only To Drain The Wrong, Unregulated "Reserves." :(

   (Commentary posted by Roger Erickson)



IDEAS Fantasy Economics league, a new game housed by the Federal Reserve Bank of St. Louis. It ranks living "economists" by ego? Useless diversion.

BI's hype for The Nerdiest Fantasy Sport Ever -- Fantasy Economics.

The players don't even know what charade they're making a pale imitation of.

What would Marriner Eccles & FDR think? Not much.

A game "matters?"
   How much?
   And to whom?

Only to those who don't participate in setting the rules "others" can play by ..... while the real "players" play by their own rules?

While it seems to matter a lot - nominally - to the gullible rubes, reality is that it doesn't?

While reality doesn't matter to the fake rules publishers ... the nominal scores seem to matter tremendously, to them. Merely as a divide & conquer diversion?

The deeper causality between all the fiat fills & drains?

It's all just a reserve drain of sociopathy!

Mon fiat! For JJSixpack's sake! There is a better way. 

You can't convince me that the entire population of the USA is this ignorant, dumb & listless. It's past time to put a stop to the excess nonsense & distracting games, America. It's no longer just nominal, and has spilled over into constraining our own reality.





Tuesday, December 17, 2013

It's called Democracy

hat tip to Scott Fullwiler

The HIP (Human Impact + Profit) method of investment analysis

The very fact that we have to keep restating the obvious is itself an illustration of why we keep failing.

Personal level.
There's ample evidence that narrow pursuit of wealth defines neither the "best" adults, nor the "best" and most enduring families. After all, how many people would sell their kids, spouses or kin ... for any amount of currency? [Yes, everyone defines "best" differently, and differently each year. Nevertheless, when push comes to shove, currency possession never tops the defining traits of healthy individuals, or their families.]

Corporate level.
There's another article every year or so, documenting that companies which have wider goals than simply profits are sustained - on average - for much longer periods.

National level.
There is, of course, also ample data that nations that have wider social goals than just dog-eat-dog personal profits ... also endure and prosper better than those without general welfare of the people as their goal. It's called Democracy. Odd that the USA, of all nations, would forget that.

Yer doin' a heckuva job, Wall St.!
However, at the end of each day, whatever Wall St's nominal "job" is, it sure as hell doesn't correlate very well, at all, with our individual, corporate, or national REAL work and purpose. Certainly not with Public Purpose. And that bit about doin' the work dictated by one or more gods? Get real! (Not just nominal.)

As Warren Mosler keeps repeating, the entire finance industry long ago became more trouble than it is worth. Isn't it obvious, once again, that OUR responsibility is to change our own trivial, accounting industry, sooner rather than later? So that it can be a useful tool aiding OUR adaptive rate, rather than a parasitical burden, on OUR nation and culture?



Sunday, December 1, 2013

What An Obscene Concept - The NAIRU Straight Jacket

(commentary posted by Roger Erickson)

NAIRU Straight Jacket

It was malformed from the start, by starting from the unacceptable position that NOMINAL is equatable to REAL.

Hint to Uncle Milt. Try starting from an axiom based on the unceasing demand for unpredictable adaptation, rather than mal-adaptation. NAIRU is what you get if a rentier takes a stab at redefining reality.

An offshoot of Creationism?

How did Economic Creationism become "mainstream?" When Luddite rentiers made a stab for uber-merchant supremacy over nominal vs real policy? And the tail-end "succeeded" in wagging the Middle Class dog? (And thereby began to kill the Middle Class.*)

Watch “OECD NAIRU stupidity” on YouTube.

Then consider reconsidering EVERYTHING about how you vote.

For our Adaptive Rate to stay the same (or preferably increase), everything must change? Why? In order to adapt to unfolding reality ... NOT just to arbitrarily nominal imagination, or merchant preferences (which obviously must float, in order to continuously chase unpredictable reality).


* Note, a tail wagging a dog is equivalent to a parasite wagging the host it lives within. The parasites only real choice is to let both live, or kill both. Everything in between is tilted one way or the other.

Wednesday, October 30, 2013

Chasing the Ignoble Prize of Economic Form Over Real Function

   (Commentary posted by Roger Erickson.)



Nominal has been promoted as equal to real, all along, in orthodox economics. Yet reality is re-discovered daily, while supposedly accurate, nominal form insists on "stable prices." Therefore, the two constantly diverge. That's the original sin pursued by the non-science of economics. It just doesn't work to formally presume, and insist, that nominal and real are equally relevant, equally stable, and equally predictive - even though we have zero net predictive power, and only adaptive power.

Take Iowa's world food prize. Please!

First created, then quickly perverted.

What's next?
  World air prize?
  World water prize?
  World SuperfundSite prize?

Or just roll 'em all into a World Functionally OutOfControl Capitalism Prize?

How did the function of evolution get taken over by the form of capital-ism?

Same way democracy got taken over by international "free" trade among merchants?

The excessive practices of our own merchants abroad, which we let build to significant momentum, soon come to constrain us domestically, through the claims of precedence.
   (Commentary posted by Roger Erickson.)



It started with the Church of Capitalism, with it's high priests, the Eco-Gnomists hired by aristocrats to further their class-based aims. The Eco-Gnomist name was later shortened? Like all formal religions, they came to argue that church & state should always remain objectively separated, except for THEIR church, which should become a state religion, guarded over by bevies of ideological lobbyists. Isn't it ironic, that formal religious bureaucracies always exist paired to a narrow class of those who benefit more than others in seeing that particular bureaucracy expand?

Capitalism, as now over-promoted by the rich, has become a Secular State Religion, promoted by the high-priests of mercantilism, er .. hyper-capitalism?

Perhaps we now need to enshrine a new doctrine. Separation of Capitalism and State?

The meaning of life proposed by our current orthodox economists, mumbling their incantations, is to sequester financial capital from your neighbors and sit on it, to make sure it isn't used for group evolution? The purpose of the secular religion of capitalism is to glorify the nominal over the functional? What happened to the old form of community capitalism?

Even the word sequester has now been perverted. In politics, it is now defined as a process for depriving your co-citizens of a minimum threshold for group resource distribution, similar to the one "successfully" practiced in the European Monetary Union, against formerly free & dynamic nations from Greece to Ireland. If this had caught on in our military, our generals would have hoarded all the weapons, and sent soldiers out to do battle with no shoes, let alone functional weapons. Our MICC has always been treading close to that state as it is.

If we can't discriminate nominal from real, we'll wake up one morning and wonder "Who stole our fiat?"

If someone claims nominal control of your quite real fiat, individual or group, just exercise your prior claim of ownership (by usufruct, or ownership by use), and thereby reset the relationship between nominal and real to it's natural relationship, of tool to toolmaker.

In his day, it was revolutionary for Tom Jefferson to say: "I do not find in orthodox Christianity one redeeming feature." Yet his outlook was terribly needed, due to the excessive intolerance practiced by European state religions of the day.

Today, it is no less needed to say: "I do not find in orthodox Economics one redeeming feature."

That outlook today is necessary precisely because of the excesses practiced by our merchant-state-religion, foisted on us by uber-capitalists running amok, proselytizing form over function. Can we just get back to setting Desired Outcomes for our nation, and being pragmatic about achieving them? Instead of telling ourselves that we've run out of fiat?