I wonder if anyone has seriously studied the roots of the crash every 52-56 years in national markets. I suspect it has to do with complexity and the tendency of all energy to build up behind a venturi effect.
Mike Spencer might say Im mixing metaphors but I dont think so. Whenever you have a smaller opening the energy that flows through it is very fast and the energy behind it is latent and filled with nasty side effects. Think of the emotional energy behind an automobile accident that has wiped out all but one lane of a six lane highway. That energy is not all simple human choice. Its a part of the situation and the fact that one cannot get out of it. I think one could study the relationship between certain kinds of regulation and the flow of funds on Wall Street. Also, competition is an energy source and when something slows the energy down, like a Venturi, then the hot shots caught in the back up, all begin to invent ways to get out of it. Change the rules. Fanny and Freddie for example. Bundle those mortgages and sell them off and trash the system that has blocked up. I dont think this metaphorical. I think it is an actual psycho-physical process that has rules and that can be regulated if one knows the process well enough to adjust it. I suspect this is what the Chinese are trying to do with their regulations. Keep the door wide enough and keep the people moving enough to deal with the physics. The first person to really point this out to me on the creative mischief behind a venturi effect in management was John Warfield after we had hit the wall during an arts and economics workshop in Washington in 2004. The problem with the Arts was Patronage. There was and is, a huge venturi at the top of all Arts organizations around funding. Warfields work on this, in what he called the Science of Complexity, was pretty well ignored in the U.S. except for the DOD which used his stuff, some Congressional committees and a few corporations like Ford which used his Integrated Structural Modeling (ISM) in the development of their hydrogen engine. His protégé Ben Broom has also done a lot on the energy of Venturi effects in conflict resolution notably in the ongoing Greek and Turkish dispute in Cypress but generally America is in love with other stories about complexity tied to density or as we say in music thickness and thinness. Warfield was about the processes in time and competence in systems. Who is using Warfields work these days? Who has written the most about his work in their technical papers and are using it in their factories? China. For Warfield complexity is between the ears. It has to do with competence. Nothing is complex if you know how to do it. [A little rule from virtuosity in the music business.] The big block in money as Wall Street sees it, is not the wealthy but the government. For them, the government is the venturi effect. They believe regulations and government departments are the block that holds them back. Privitize everything. Free the money! But is it? Are they wrong about the source of the block? Is the issue really that they are incompetent at the issue of designing a modern society where they can escape the boom/bust cycle. Is more funds and less regulation just enabling their incompetence and stimulating an incoherent policy based on simple greed? The root of my knowledge of the Venturi effect is the human larynx and the art of singing. The same processes of chaos builds up behind the larynx when the balance between tension and respiration is not ideal. As a result the heart and blood pressure is also involved as well as the psychology and hysteria of the person trying to sing. We even have a word for the freeze that happens as a result. Its called Hysterical Aphonia. Its not a metaphor, its a parallel process across the human experience. Unfortunately for us, there are no serious economic critics hired by the newspapers to examine the success or failure of performance in all of these important areas. Most business writers are shills like carnival barkers. A critic is a gatekeeper who demeans incompetent dilettantes and protects the purity of the virtue-osity. REH From: [email protected] [mailto:[email protected]] On Behalf Of D and N Sent: Thursday, December 23, 2010 3:13 PM To: RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION Subject: Re: [Futurework] Stimulus package: a model Sorry Ray, I must be a bit tired from all the lawn cuts this week. I got confused with the 'breaks' in the post. I think HSBC may be the same where ever they may be but governments do still pretend to have some control. It would be interesting to find out if it is the same in other countries or if this is an N.A. business attitude. But this 3rd party thing still has an unknown aspect. The banks used to to do the transfers from their own machines for branch-to-branch and from bank-to-bank but that has changed over the past few years and I do not know when it occurred. Just another of those things that should not have been allowed but ws. Darryl On 12/23/2010 9:51 AM, Ray Harrell wrote: Thats correct Darryl and I was the one who brought it up. I dont whether Keith has that same situation in England or not. REH From: [email protected] [mailto:[email protected]] On Behalf Of D and N Sent: Thursday, December 23, 2010 12:26 PM To: RE-DESIGNING WORK, INCOME DISTRIBUTION, EDUCATION Subject: Re: [Futurework] Stimulus package: a model Just a short note for those who missed this sleight-of-hand. The 2 to 3 day period is within the same 'banking institution' (branch to branch) and 7 days between banks. BUT there are differences. To place a 'cheque' into one's account for -- say-- HSBC, one does not gain access to that (except through credit lines OR if the accounts are at the same branch and it must be cashed at the teller for immediate access) for a period of 7 'working days' -- essentially it is available on the 8th day, BUT the transfers of cheques (even from one branch to another in this example) is handled by a 3rd party now. I do not know if this 3rd party is an arm's length corporation from the financial institution or a separate entity but, YES, someone is making money off of our money and no 'bank' is offering a decent interest for any accounts these days. This may be a growing greed from those who now operate the ubiquitous bank machines. A further quandary I have is which financial institution shows these monies on their daily balance sheets? Has this become another shell game that shows higher than 'real' or 'actual' flow and balance for each institution? Would a cheque from A to B show no loss from book for A for the 7 to 8 day period? While at the same time a gain will show to the book for B as soon as it is presented to a teller or a machine (whether or not access is made available to the recipient of the cheque as it is placed in one's account but is not accessible)? Thus providing a better day-end or month-end for each financial institution. At least on paper since there are not enough gold reserves held by any institution to cover the 'book holdings'. And, now with a 'third party', which 'party' is being allowed to claim this money in the interim period of exchange? This financial entity that no one seems aware of? Who is gaining from this? And how was this passed through government? Because it will be these 3rd parties which are re-investing these capitals (which are likely in the millions of dollars (or whatever currency) per day -- and in what are they investing? It could be in anything since this is a largely unknown entity and very likely (as such) is under-regulated or not regulated at all. There are some investigators on this list who should be able to ferret out some answers. Pull some strings with those closer to the action. What is going on with this angle? Darryl On 12/22/2010 9:58 PM, KSH wrote Also, what is the difference between what the town did with the money and the kind of short term loan that the banks do by capturing our checks and holding payment for two or three days and using the interest and capital? The checks go through electronically immediately but they hold the cash for several days and use the interest for business. Would you call that the food? _______________________________________________ Futurework mailing list [email protected] https://lists.uwaterloo.ca/mailman/listinfo/futurework
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