October 25th, 2014
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ECONOMICS, PHYSICS, AND THE RECENT FINANCIAL MELTDOWN

Readers of my books, and in particular, Babylon’s Banksters, will know of my fascination for the field of “econophysics,” the field of economics as modeled by physicists who entered that discipline ca. the early 1980s, using their techniques of modeling in quantum mechanics and applying them to economic systems. IN my researches over the years, one of the things that has repeatedly stuck out like a sore thumb to me in reading ancient texts and studying ancient monuments from the point of view of an engineer or physicist (and I am neither by the way), is the persistent presence in those texts and structures of feedback loops organized in complex systems. Well, with that in mind, here’s an oldie (two years old) but a goodie:

Predicting Economic Crises With ‘Econophysics’

One of the things that immediately leaped out at me were these paragraphs:

“In spring 2008, long before Lehmann Brothers defaulted, socio-physicist Dirk Helbing with colleagues James Breiding and Markus Christen were pointing out that the financial system had undergone changes that made it inherently unstable. Using the theory of complex systems, they argued that most analyses of the financial and economic system were too simple-minded, as they underestimate the importance of feedback loops and cascading effects. Things played out much as they predicted. A few months later, the financial system would have collapsed, had the European central bank and the Federal Reserve in the US not taken bold measures to provide exceptional amounts of liquidity.

“Econophysicists agree, but also think that this is just aesthetic surgery. They claim that the pillars on which economic theory is built are fundamentally flawed. In a recent letter to George Soros, they point out that, in contrast to what mainstream economics says, markets are not stable, efficient, and self-regulating by nature, but would tend to stray far from equilibrium (as bubbles and crashes illustrate). Their models — inspired by years of success in understanding the rich dynamics of many physical systems — explain extreme events such as financial crises as emerging naturally through interactions and feedbacks among market participants. Upheavals in financial markets, these models suggest, should be almost as difficult to respond to as earthquakes, unless the structure of today’s market interactions is changed.”

Feedback loops, non-equilibrium systems…I was reminded of the systems kinetics model of the Brusselator and the pioneering work on non-equilibrium thermodynamics of Ilya Prigogine. These, the article is implying, are the models and concepts being successfully used by econophysicists to predict various bubbles and bursts.

Notably, this was disclosed in a letter to George Soros, indicating something else I had written about in Babylon’s Banksters, namely, the close, though largely hidden, relationship between systems of finance and systems of physics, a relationship that, in my opinion, goes back millennia and can be attested by the relationship between ancient temples, their astronomical and astrological significance, and their close relationship with money-changing. In that respect it is significant that the article concludes by observing that Soros, in response to the letter, founded  the Institute of New Economic Thinking (INET) with a substantial endowment to advance understanding of the new models in relationship to that favored meme of the corporate financial elite: “sustainability.” In short, nothing has changed in the millennia, except perhaps the mathematical precision with which such things are now being modeled.

…and for those readers who read Babylon’s Banksters, we are still a far cry away from that grand socio-economic-physical unification that was attempted by Edward Dewey and his Foundation for the Study of Cycles. Those readers will also recall that some of Dewey’s cycles, as outlined in that book, would enter a period of profound economic downturn…ca. 2008…

See you on the flip side….

14 Responses to ECONOMICS, PHYSICS, AND THE RECENT FINANCIAL MELTDOWN

  1. bla bla…
    to comprehend economics is to KNOW ,….THE SUN the earth….congrats you are a master.

  2. I’ve read BBanksters… it scratches the Surface, and bears No Awareness of “What $ ISI$. … Two Poles Of Creation – “BAD COP” & “GOOD COP.” (Note: I recently assisted a retired ex-Marines/Police sniper – admits he killed many people – “I’m a hunter of men,” he said – last official act before an accident that retired him, was to shoot a ‘black drug-dealer’ in the face: stated this was his “memorable satisfaction” for his disablement.) Each Pole Is A Killer – Galaxies Consume Galaxies – Check Mom-Nature, study Her ways in life: Implacable “Consumation.” In Energy, this may be Energetically Perceived as “Continual King of The Mountain,” WITH An Ancient ELemental Force Above The Peak. “Hue-mans” Are “The Produce” In-Between The Two Poles (since the term, “Dual,” is too nebulous for this pseudo-intellectual crowd). GUARDIANS – GUARDS – GARDEN(ERS). Huemanity Is “Harvested,” with Three (Trinity) Prime Products – Flesh, Energy, Distillate. You Feed Huge Systems With your Un-to-Semi-Conscious Precipitated Density-Focus. Cash & Carry. Guess Who The Players Are – Who Consume the pieces (you & you & you x7Billion)? The elite are mer “drivers/tenders/crop-sharersss.” Don’t kNow? Because of the “Matter Spell” which produces “Sleeping In Blind UnKnowing.” When the Ape awakes, it’ll be to it’s Ultra-Loss. Enjoy (“Live Consumption Can Be Fun”). … There Is No “Escape” in the “Afterlife” Rest-State (ReCharge). You’ve Been LIED To. … (PS – In ThE CORE, The Dual Pole Aspects Are Blended Into Oneness, Becoming “The FYre/5th-ELement That Consumes But Does Not Destroy: This IsIS WHAT ISIS Been Hidden From.com The ‘Naked Ape.’ CREATORESS(Impetus) – PRESEVER(Forcex2) – DESTROYER(Entropy). ) System LOCKDOWN IsIs Being Implemented kNOW. (Three DoOoRS Appear At ImpLementation.)

  3. Babylon’s Banksters infers the elite are aware of the cyclical nature of economics (ala systems theory) And that it eerily tracks astronomic events. If that’s the case, what do they have install for us this time around?

  4. It appears to me the financial architecture that grew out of the complex relationships that you describe in Babylon Banksters, has been intentionally set on a path of self-destruction by “rogue insiders” and against the best judgement of those inside who knew the creation of complex derivative products would only spell the end of the debt-based money system (fiduciary).

    The system has been poisoned… or the parasite is killing the host. I am afraid we will be treated to an antidote soon in the form of a “gold standard” , but the groups holding the antidote have nothing to do with the “bullion brokers” you describe in Babylon Banksters.

    The parasite was planted in the early 90’s, it became of a critical mass in late 90’s and the post 9-11 global easy money policies fed the reach its current critical mass.

    It’s beyond the point where complex econophysics would yield any control back to the “bullion brokers”.

  5. Mechanistic systems are Doomed to Fail. This Is The Lesson of “Life.” The “human being – naked Ape” (Daily Bell usage) remains trapped in it’s own quandary of materialistic beliefs & skepticisms. Hidden in “Cosmic War” & “Babylon’s Banksters” were Two Clues to the Principle of the System’s Malevolent Dominance. The author had no Clue… he & likekind were busy running on Life’s Treadmill of Illusion. Don’t forget to L I S T E N – be S I L E N T. Talk-talk. Know How to Make A Whore Moan? – Don’t Pay her. … $erpent On The Pole (Cross).

  6. I cannot claim any knowledge here, but . . . .

    The problem I have with any ideas about “modeling” economics using physics, is that it is obvious that intentional manipulation of the entire financial system across the world has been going on for centuries.

    “Intentional manipulation” means there is nothing to “model.” It is all planned, every bit of it.

  7. Money, it turns out, is dependent upon faith. For money is like a religion of long ago. Those who controlled the priest of long ago, control the FED, European Union Troika, IMF, World Bank, ect., of today. Babylon Banksters was and is an outstanding work of scholarship & interpretation. In that work, the seeds of financial control were established long, long ago.
    Fast forward to today and the ‘physics/mathematics’ are playing-out (in part) in derivatives of mass destruction, and other instrumental methods to a madness/genius – that is all about control.
    These, are in turn, funding a breakaway civilization that could, in turn, be benefiting all.
    Closed systems vs open systems.
    The more ‘open’ memes that are being generated in a ‘knowing difference’/between the good, the bad, and the ugly
    – the better off all of us become.

  8. Your comments reminded me of Paul LaViolette’s Subquantum Kinetics, A Systems Approach to Physics and Cosmology. Based on the Brusselator, or Belousov-Zhabotinskii reaction — an archetypal reaction-kinetic oscillator.

    Implications for financial feedback cycles……….

  9. Religious constructs control the ignorant simpletons. Financial constructs can control the more sophisticated and politically powerful. The preist/educated class used religion on their subjects and financial on their foreign competitors. Problem with religion is that insane fanatics can potentially wrestle control away from them when the people are kept too ignorant. Scientific controls through economics, social/behavioral sciences, and vital resource control is much more stable. Don’t want the average Joe too educated or he will out wit you but you don’t want him too ignorant or the most insane among them might become their new leader.

  10. In spite of all the [bad] news, many are spending [money]
    as if it [money] is going out of style.

    What do they know ?
    Is it ?