I guess we're FALLING INTO a recession...

DAX FLASH CRASH! Bonzai! Bonzai! BonZAI!

An Example of Pseudo-Isomorphism and Weak Adjunction in Nabokov's Gift

1. One of the flavours of current math wizards in Category Theory is that beyond the simplifying beauty of their commutative stick diagrams, they appear to be in agreement that not much of their art has any obvious applicability to other parts of life.
Since much of what they do is to find the widest possible brushstrokes -- universal properties -- it is not surprising that it is difficult to find examples in real life where uniqueness can be trusted to serve some general principle. Nevertheless, there is the odd inflection where Nature appears to be a failed or perhaps much more subtle mathematician, hoovering just out of reach of our theories and inviting us to step off the cliff into an abyss. Tempting, or just foreshortened?

Source: http://www.google.co.uk/imgres?q=Nabokov+the+gift&um=1&hl=en&client=safari&tbo=d&tbm=isch&tbnid=2gtZSYEoawJoaM:&imgrefurl=http://www.brainpickings.org/index.php/2011/07/01/nabokov-butterflies/&docid=H5txSi_bq0brTM&w=480&h=665&ei=KZc1To31NYGs8QPSqMWgDg&zoom=1&biw=768&bih=946



Here is an example by Nabokov on how even a reflective symmetry across plant and animal, suggesting communication across thousands and millions of generations is itself unique. This taking some elements of one world and BORROWING them for another world is exactly what Category Theory was originally meant to rigorously capture. The two different worlds remain as they are, and somehow they are transformed by the exchanges into resemblances of each other.

"In my vicinity some witch doctors with the wary and crafty look of competitors were collecting for their mercenary needs Chinese rhubarb, whose root bears an extraordinary resemblance to a caterpillar, right down to its prolegs and spiracles - while I, in the meantime, found under a stone the caterpillar of an unknown moth, which represented not in a general way but with absolute concreteness a copy of that root, so that it was not quite clear which was impersonating which - or why."

Source: Nabokov, Vladimir (1963) The Gift, pp. 116-117.

The beginning of the next line:

"Everyone tells lies in Tibet."

Source: http://www.google.co.uk/imgres?q=rhubarb+drawings&hl=en&client=safari&sa=X&tbo=d&tbm=isch&prmd=ivns&tbnid=fNc9cMBfY__jBM:&imgrefurl=http://daviddrawsandpaints.blogspot.com/2011/04/rhubarb.html&docid=e3qM48rphly6LM&w=609&h=479&ei=75Q1Tp2zKYbE8QOo5p2hDg&zoom=1&biw=768&bih=946

2. Maybe one of the functions of "lying" is to preserve or move towards an image which the liar cannot help but replicate for his own needs and for the sake of preserving his world in the midst of a foreign world.

False Dichotomies & An Aikidoist's Understanding How to Move The Mind of Opposites

1. One recurrent lesson about the US debt crisis, soon to become debt default, is to not underestimate the power of false dichotomies. Expect huge volatilities in US debt related markets--which means anything that sounds like "US Treasury related" will become pariah much like "asset-backed securities" became in 2007 when practically all qualified investors withdrew their support from what they thought was the plague. Imagine the disgust, the frightening laughs of those who would take advantage of such events. An old George Soros comes to mind, trading against the pound...

Source: http://www.metmuseum.org/toah/works-of-art/17.142.3


2. It's so much easier to move the body of another by realising how the "mind" of an individual continuously attempts to right itself in the face of stimuli. Ask an Aikidoist to demonstrate. By holding the edge of your shirt at hip level, she can flip you in any direction by jerking your shirt downwards and understanding that you will naturally try to adjust your balance by moving your body upwards. At this moment, the Aikidoist will help you upwards at which point you will immediately adjust your weight downwards. And it is at this point, the Aikidoist will help you to accelerate downwards so you cannot maintain your balance and down you go like falling timber. However, from your consciousness all the Aikidoist did was lightly tug the bottom of your T-shirt. The first time this happens, it is totally incomprehensible to the one thrown. But after a couple years of being thrown around like a rag doll, comprehension sets in. By being thrown thousands and thousands of times, one gets a feeling of how to throw. And the principle of throwing is reduced to a few words or gestures and becomes incorporated into a repertoire of mind-body behaviours that can be applied generally and to many seemingly different situations.

Source: http://www.bridgemanart.com/Media%20library/Images/News%20and%20Features/EN-US/Artist%20and%20Collection%20Highlights/Aug%2009/Da%20Vinci%20Code%20story_72634-1.jpg

Does Buying Protection Against US Default in the Form of a CDS constitute an Anti-Patriotic Act of Supreme Rationality?

1. Is there such a thing as rational terrorism in the the financial markets? I'd say no. Markets should be left to their own devices, otherwise they tend to bite the arm off of their supposed masters. Let us not try to be too cunning when it comes to the US DEFAULT scenarios. If the markets don't see a realistic plan for BUDGET DEFICIT reduction that can simply be translated into NATIONAL DEBT reduction (please God teach the US Senators, Congressmen and President to use the same interest rate, years, and future values in their NET PRESENT VALUE calculations!) so the biggest systemic risk in the world today does not go crazy by July 28th (technical default coming for sure) and by August 15th (when the US really runs out of money to pay its bills). End of Prayer. Look at the chart below.

Source: http://www.zerohedge.com/news/step-aside-unicredit-and-italy-us-number-one-monthly-risk-bets

The chart means that US Debt is now the target of the speculative short bets. It scores higher than Greece, Italy, Spain. Translated into the Queen's English: Obama and Boehner looking over each other's shoulders, saying simultaneously, "I say, wee Jock, we are in a spot of trouble."

Remember the Market has not yet PANICKED because it cannot believe that the people's elected officials of the Republic are acting like squabbling children of the spoiled Empire.

Bond Markets As Bonzai Pipeline

The more I examined this graph, the more it made me laugh

1. Courtesy of the famous Dick Bove who recommended buying Lehman Brothers 2 days before it crashed:

Source: http://www.zerohedge.com/article/afternoon-humor-dick-boves-histoerical-bank-america-price-targets

2. Look closely at the buy ("B") recommendations. Hilarious, no? Dick Hove's recommendations remind me of brokers' calls shovelling the latest pump and dump. A mature person knows this happens all the time, and laughs it off when the con tries it on.

Best Introductory Lectures on Category Theory - The Catsters

There are 79 (!!) lectures on category theory here: http://www.scss.tcd.ie/Edsko.de.Vries/ct/catsters/linear.php

If you've done a bit of Lawvere & Schanuel on Conceptual Mathematics or Tom Leinster's lecture notes on Category Theory, then The Catsters is a very relaxing listen, except that Eugenia Cheng whispering secrets and emphasizing concepts with the lilt of her voice wake and whip your mind up a bit.

A Collector's Item

83rd Session of Philosophical Foundations of Law and Finance

1. Is social evil organised with malicious intent by a group of people in power (eg, the Exchange Stabilization Fund of the US Treasury sitting inside the New York Fed since 1934) or is social evil simply disorganised incompetence (as St Augustine famously argued in his City of God)?

2. For the 83rd session of the Philosophcal Foundations of Law and Finance we will examine both theses. The ESF has recently been unearthed as the biggie committee behind the dark ops. And for a contemporary view of how to solve the whole host of disorganised structural problems, see http://www.zerohedge.com/article/what-both-sides-are-missing-debt-ceiling-debate.

3. Afterwards, we'll probably pop into the very chi-chi Artisan Bar at the Langham's on Regent Street...hang out for media personalities and very rich Africans, Arabs and Chinese.

Middle Class Anarchy

1. What is the result of Euro risk contagion and US debt politicisation? The failure of institutions which the middle class believes in. The immediacy of anxiety and doubt is compounded with normalcy bias followed closely by angry rejection and then self-piteous cries for help. As Dostoevsky showed in the Grand Inquisitor, the death of the spirit of anthropos corresponded to the Church expanding its pity for the masses which in turn enslaved them by unnatural codes of moral dependency. Since Constantine attempted to bring the secular and the divine together from 800 AD, the spirit of free thought and courage were submerged into the grand euro-ritualisation of symbolic power. These ritualisations reinforced the hierarchy of power through the discourse of discretionary mysticism. What were before humble limited abilities of the human became supernatural constructs of control (eg cults of virginity were simply a form of sacrifice and repression of the intergenerational impulse, racism another grouping which destroyed the individual by resurrecting caricaturisation in place of intelligence, and then of course, money controlled by the theodocy of the elite was perverted into instruments for the prosecution of terror, war, systematic rape and infant-genocide).

2. From the Declaration of Independence, we have known very precisely and can without any appreciable academic effort understand immediately that bad banking is the morphism from business education to war and is the main construct of control in the imagination which binds the middle class throughout the world. Money is the substratum of the stream of middle class consciousness. It feeds on the false and tragic-comic of formal desires of civilisation.

3. Talk to an anthropologist about money, about global phosphorescence on the screens, and she will tell you that such will always be (1) used to short circuit the normal physical trading pathways ("hedge arbitrage is normal amongst traders") and (2) those outside the magic chrematistic circles will treat the insiders as suspect and immoral. And how about government officials in this game? Always "weak, despotic, captured and blamed."

4. So what is THE solution to middle class anarchy? Put differently, how much would you pay to alleviate the pain?

The Big Kahuna - When Ponzi's Unravel

1. I heard the folks in DC have agreed on a $1.5 Trillion debt reduction and the US CDS spread widened to 56 basis points. Oh oh, the jig's up. The market says such measures aren't good enough. If the spread widens further tomorrow after an official announcement that the Republucans and Democrats have kissed and made up, then we are in a PERFECT STORM.

2. Once the bond market no longer believes in debt reduction legislation then we have the beginnings of the great unwind, where promised relief is simply met with violent disbelief.

3. The following are some wavelets in front of the Big Kahuna.

Thanks to zerohedge at: http://www.zerohedge.com/article/us-cds-jumps-highest-february-2010-debt-ceiling-worries

n-Financial Theology: Quantum Clouds and Financial Trading

1. Spooky action at a distance happened with the Fed buying US treasuries. Although Ben Barnanke and Blinder (1988) wrote an academic article that argued the money multiplier effect does not exist where there are external sources of funding, the same Bernanke 21 years later shreds his academic reasoning by doing exactly that which he had argued would not work. To get the economy started, just reduce the fed fund rate (ie overnight deposit rate of the primary banks) and inflate the Fed balance sheet by having the Fed buy US treasuries in open market--the so-called POMO. After $1.6 trillion ($600 billion of QE2 from November 3, 2010 to late May 2011), the open market laboratory Rats and lemmings tests show that interest rates are creeping up and banks and major corporations are simply hoarding about the same trillion plus dollar amount--which amount is probably composed of retained earnings and insanely cheap borrowed capital. See chart below:

2. Why is this a quantum mechanical event? Because in theory (besides Bernanke and Blinder 1988, see Carpenter and Demiralp 2010 at http://www.federalreserve.gov/pubs/feds/2010/201041/201041pap.pdf) and any common understanding of how trading works ("Gee, Bud, how does blowing up the elephant make those flowers blue on the other side of the street?" "Beats me, must be some kind of set up or magic or something.") There is simply no way the buying (and later someday selling) by the Feds of treasuries should instantaneously support the Russell 2000, S&P 500, ES, and all the other major equity indexes around the world. This has happened without any conceivable PHYSICAL explanation except that it is some kind of ENTANGLEMENT. Traders will call it positive correlation. But correlation DOES NOT explain the events which are across markets where no financial instruments exist which would allow some kind of physical coupling of markets! Is there an invisible financial instrument which links all these instruments in various markets together? Plain answer: No.

3. Because of the lack of traditional physical explanation (neither mechanics nor dynamics is sufficient here), we as mirror-neuronal n-categorical carbon based self-replicators need to find at least the lowest level isomorphism of these events, or we will throw the whole series of events into the wheely bin called "an act of God." What we assert with a positive name for that which defies our sense of unique material extension covers up our ignorance of that which must be an intensionality. Intensionality as the lineage of great philosophers have provoked through the centuries is that from which creativity comes. Modernly with a pinch of fractal inspiration, what the common conventional thinking attribute as a given unique thing is an ignorant illusion-- for those things which appear to have primary being are merely transitory vessels of various degrees of emptiness. Look at the clouds and not these words to understand! The pure potentiality of Aristotle, the Demiurge of Timean Plato, the Intelligent Oneness of Plotinus, the dependent co-origination and nirvana of Buddha, these and more are morphisms, adjunctions and natural transformations of n-.

n-Gold as Global Reserve Currency

1. Check the time of my previous blog.

2. Now check this out:

n-Default Invariance in the [B][B]

1. Please note default invariance which is a universal property of the financial markets means we have a morphism across two domains, and where we move from greater structure to lesser structure we have a forgetful functor and where we move from lesser structure to more structure we have a free functor.

2. Yesterday, one of my colleagues whose immediate insights I very much respect challenged me to state something about the financial markets in categorical theory terms that is surprisingly inobvious. Not just fundamental crap, but something you could bet your mother's mortgage on.

3. OK. If default is invariant then since no central bank can ever hope to save entire countries, the following are rather obvious predictions from a categorical theory approach:

(1) Basel III definitions of risk free sovereign bonds will need to be changed as
(2) Countries default, and
(3) All asset classes will need to re-referenced against some mutually agreed to convention

(1) will occur within 1 to 2 years after (2). And as a matter of course, (2) will include the usual suspects, PIIGS and any other country borrowing in fiat without its own energy resources. Such countries only borrow to consume.

(3) is simply gold.

It all sounds so simple now. Happy?

Financial Wars 110712: mirabile dictu murders Euro and rapes 10-year Italian bond

"Video meliora proboque, deteriorate sequor." Ovid Metamorposes vii.20. Medea suddenly understands she should not betray her father and assist Jason, with whom she has fallen hopelessly in love, to gain the Golden Fleece, but she cannot help herself. [See, Morewood, J. (1998) A Dictionary of Latin Words and Phrases, pp. 185-186.]

1. We presume the new head of the IMF Christine Legrande is a highly trained lawyer who carefully chooses her words for rhetorical effect. For what is a lawyer who is witness to the truth and cannot convince the jury of such?

2. Last night, she is quoted as saying, "nothing should be taken for granted on Greece," and the USDEUR immediately lost 60 pips. [See: http://www.zerohedge.com/article/eur-plunges-after-lagarde-intimates-greek-bankruptcy.]

3. On the Italian front, short selling has been curbed after its 10-year bond hit 305 basis points over the comparable German bond. This is a record high spread since joining the Euro. [Ibid.]

4. One more day or so of financial war managed badly by the IMF and the ECB, and you know who the major beneficiary is of all this "n-Lehman-cubed" panic will be? Have you ever heard of the ESF? The Exchange Stabilization Fund? I dare not give you references because it all sounds like nutty fruitcakes. Even without the ESF, the relative-beneficiary of relative-chaos is the good ole USD. Yes, the same one where the theatre of Obama the great conciliator makes the Republicans and Democrats hold hands, kiss, and then do unnatural acts to each other under a raised debt circus ceiling, so in the end the Greatest Ponzi Scheme the World Has Ever Seen can continue a few more months.

5. Moral lesson: curb your exposure to nonsensical fiats and fascistic monetary policies for they kill our children. Do the obvious good thing and perform a random act of kindness today.

n-CDS spreads indicate de facto financial war

Wow, it looks like Europe is under attack. These spreads are braying for regime change.

Good luck, everybody.

N-Default Analysis - The PIIGS Cluster Bomb

With greater than 2/3 national debt to GDP, free trading debt is not exactly what he authors of the Treaty of Rome had in mind.

n-Systemic Collapse - The Most Probable is Driven By New Regulation

1. Anyone who reads the history of banking and systemic collapses knows a few things about the trajectory of human populations, information flows, symbolic exchanges and synchronic alignments of digital beliefs as the last nth step before criticality is breached and the sandpile slips catastrophically in a beautiful avalanche. These drawdown events have been modelled by Professor Didier Sornette, a geophysicist of first rank who sees fractal signals before financial collapse. Check him out: http://www.er.ethz.ch/people/sornette He is part of a growing brood of "econo-physicists" who believes market prices provide something more than a random pattern.

2. Unfortunately, none of the econo-physicists understand the law and none I know have modelled the fundamentals of law and finance. So, here's the trick. If you understand a bit of the law, a bit of deal mechanics so you can see how trades flow in the financial system, and overlay this vision with category theory diagrams so you can be assured that the multi-dimensional mapping you have in mind is at least an isomorphism in substance and therefore, a testable hypothesis with exact determinants in reality, then you can suggest or propose solutions to problems which are only barely perceptible on the horizon.

3. One problem for sure that is at the level of self-crucifixion is the OTC derivatives rules of the Dodd-Frank Act. The said rules know not what they are unleashing on the people. If we take the rules seriously then $200 trillion or so of financial contracts will need to come under the fold of organised exchanges. This will no doubt immediately accelerate the demand for US Treasuries. See: http://www.zerohedge.com/article/real-margin-threat-600-trillion-exchange-derivatives-moving-central-clearing-multi-trillion- And a very large, uncontrollable chain reaction will begin. Tempting to quote Oppenheimer's loose translation of the Vedas. Instead, please, let's not go there--note the distinction: even though default is invariant, systemic collapse need not be.

n-September 18, 2008 -> How a Valuation Rule Can Cause Global Financial Collapse in 16.67 minutes

1. Under Rule 2(a)7, the definition of a money market fund is simply the value of its amortised cost over 12 months. This means each day the MMF must re-adjust its trading books so that it can deliver exactly what it says it is going to be able to deliver in 12 months time. If it is out by 50 basis points then it must report this fact to the Securities Exchange Commission, which constitutes a self-admission of a violation of a securities law. If the MMF is out by 25 basis points, it (the trader) must report to the board.

2. I have been long informed by private sources that August 7th 2008 was the day that all MMF fund transactions stopped, (they unaimously withdrew from the Asset-Backed Commercial Paper (ABCP) market, which in turn, supported ALL the privately issued Real Estate Mortgage Backed Securities (RMBS) markets) and that they stopped for about a day and a half.   That was a $600 billion market screeching to a dead stop.

3. And the following reportage is consistent with the August 7th day of emptiness-- that on September 18th (3 days after Lehman declared bankruptcy) individuals (moms and pops) started to withdraw from the MMFs. Least we forget how the world's financial markets can crash suddenly (that is, in about 63 minutes) I reproduce in part Tyler Druden's blog of February 8, 2009:

"SUNDAY, FEBRUARY 8, 2009

How The World Almost Came To An End At 2PM On September 18
Posted by Tyler Durden at 12:56 PM
LiveLeak has caught a scary moment of previously undisclosed insight by Paul Kanjorski where he reveals some facts that have not been captured by the media previously. At 2 minutes and 20 seconds in the video below, Democratic Representative Kanjorski explains how the Federal Reserve told Congress members about a "tremendous draw-down of money market accounts in the United States, to the tune of $550 billion dollars." According to Kanjorski, this electronic transfer occurred over the period of an hour or two. And it gets worse. Kanjorski paraphrases the following disclosure by Bernanke and Paulson:
On Thursday (Sept 18), at 11am the Federal Reserve noticed a tremendous draw-down of money market accounts in the U.S., to the tune of $550 billion was being drawn out in the matter of an hour or two. The Treasury opened up its window to help and pumped a $105 billion in the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks. They decided to close the operation, close down the money accounts and announce a guarantee of $250,000 per account so there wouldn't be further panic out there.

If they had not done that, their estimation is that by 2pm that afternoon, $5.5 trillion would have been drawn out of the money market system of the U.S., would have collapsed the entire economy of the U.S., and within 24 hours the world economy would have collapsed. It would have been the end of our economic system and our political system as we know it.

We are no better off today than we were 3 months ago because we have a decrease in the equity positions of banks because other assets are going sour by the moment.

Interestingly, Kanjorski, and likely more and more Democrats, are starting to shift to the camp that more time is needed to make a correct decision this time (which may explain Geithner's decision to postpone the "bank-rescue" announcement by one day to Tuesday), instead of rushing into another half-baked plan. Very scary stuff.

Update - for all who claim that Kanjorski is yapping with a few screws loose upstairs, take a look at this clip: http://financialserv.edgeboss.net/wmedia/financialserv/hearing092408.wvx
and fast forward to the 1 hour, 50 minute and 48 second mark.
....Regardless of when it ws announced, the increased guarantee to $250,000 did not go into effect until Oct 3rd...

http://www.fdic.gov/news/news/financial/2008/fil08102.html

http://www.nytimes.com/2008/09/20/washington/19cnd-cong.html?_r=1&hp&oref="

3.  Now, imagine how long will it take a couple High Frequency Trading Algos to disrupt the planetary financial markets.  At 10 to the minus 6 seconds per trade,  for 10 billion trades, the ENTIRETY of the World's Financial Structure would go down in about 16.67 minutes.  OK?  Suppose I'm off plus or minus by 150%?  a 1000%?  Ha, ha, ha.  Hilarious computation.

Italian Risk Is Detonating the Euro

1. If you still haven't figured out how the idiot financial regulators and even more muppet politicians don't understand at all the meaning of the CDO bomb they have fashioned to destroy the Euro, or because the topics of existential finance and political economics are just too boring to bother you, then you need not worry that the lies, deceptions, frauds and particularly bad fiscal and monetary management of Italia is now being translated into the booty of investment bankers and hedge fund arbitrageurs.

2. With certain Italian banks having highly leveraged exposure [greater than 26 times) to Eurorisk, their CDS act like binary flies around a rotting corpse. Despicably but irresistibly delicious to the protection buyers (hedge funds who are shorting the Euro) against the protection sellers (governments, central bankers, and of course, employee pension funds).

3. For some facts and figures on this debacle, see: http://www.zerohedge.com/article/unicredit-stock-halted-after-plunge-reopens-after-more-fears-tremonti-gone.

God Gave Us Fast Twitch Muscles for a Purpose. n-PANIC => [Negative Volatility = Normalcy Bias] = n-[Bailout]-->Default

1. A super analysis on the psychological response to undeniable reality can be found here: http://watarts.uwaterloo.ca/~sreinis/quantum.html. Essentially, the US Fed's action to pump the markets on a given day which in effect is to destroy the whole basis of a free market is so "shocking" that it results in a "negative panic." The correlation of government action to negative VIX (volatility) is strongly positive, and is plausibly explained and isomorphically identified as normalcy bias.

2. In terms of our general theory of the Great Cycles of Default, we are in the 3rd phase of Default Invariance where the population viewed in terms of law and finance moves microscopically from bailout to bailout, or in shorthand notation, [B][B]. [B] is the domain of the morphism of default, or in shorthand, d:[B]->[B], where d stands for the transformation of default. As this micro-structure multiplies, we get n-[B] or an n-Category of bailouts. But as we know an n-Category is simply a finite number of inputs resolving into a single output. How many inputs do n-Bailouts make to produce the final Bailout?

3. The above question is one of accessibility. Consider the state x, is it possible to get into that state, i.e., does there exist a state x' for which a(x') = x? [See, Lawvere and Schanuel (2009) Conceptual Mathematics Second Edition, p. 138.] For our purposes, is there a final state of micro-bailouts such that we move to the next state of financial innovation? And what would that look like?

4. The movement from the third phase [B][B] ("Bailout to Bailout") to the fourth phase [B][I] (Bailout to Financial Innovation) is not a happy time. It will be a confused mess of punctured equilibria where sovereign authorities will be traded into private wealth. Note how the Greek Euro crisis which is purported to be a banking and government de facto default with Moody's and S&P downgrading Greece to the pitch darkness of C-, where default enters the no-game theory territory of 1 in 3 chances of default within a year, the actual beneficiaries of the IMF, ECB, and any other central bank largesse is to simply increase the profits of hedge arbitrageurs. The financial innovators cannot be denied in the [B]to[I] scenario. The ironic, daresay, sarcastic truth of the bailout regime is simply to push more money through the enlarged money pump of the post-2008 state of the world into the charming arms of the big investment banks and hedge funds. The hedge funds have bought the Greek debt, therefore, the Bailout funds (taxpayers money) are being used to pay interest on debts owed to elite
private parties. Of course, if this is the characteristic of the third phase, and there are only four phases, with the first phase being [I]to[I] or [I][I], what are the micro-steps to the [I][I]?

5. The reaction to [B][I] will be new sorts of "revengeful regulations." For example, the Whistleblower Incentives and Protection provisions of the Dodd-Frank Act provide original informants a minimum of 10% of any and all recoveries above $1 million. For billions of dollars worth of recoveries, the whistleblower wins astronomical lotteries. These regulatory rights should incentivise any and all members of the investment banking community "to take arms against a sea of troubles" and fink, rat, out the violators of any of the 1 million plus pages of code written to implement and enforce the 1933 and 1934 Securities Acts. But the [I]to[I] world state is a bit far away. Now, we are definitely in the [B][B], expanding the left [B] to a n-[B] until we hit that transformative macro-default--but this impending macro-Reset button is so hard to believe.

Normalcy bias is the denial of the need to panic. [In Hoohfeldian terms, this is tantamount to the individual's mistaken belief in his disability to exercise his privilege.] Remember in a wild fire and in a tsunami, God gave us fast twitch muscles for a purpose.

n-[B][B] -> Micro to Macro Quantum Market Structure

1. Of course, I'm kidding, right? Market prices are not quantum events, and no way can we conceive of the general structure of laws and finance (that is, anthropogenic rules, regulations and codes plus the world of financial trading) as one redoubtable quantum event? But I say unto you, "Why not?"

2. My argument is simply that there is no absolute boundary between the micro and macro for quantum events, and that information at its core is physical. But note, I mean quantum physical. What does this mean?

3. Take for example the Quantum Mind Hypothesis proposed many times since Shrodinger came out with his lovely wave equation. The quantum physicality of entirely everything "in" the universe forces us to conceive of the universe as a kind of "hologram" where the "real" information so to speak is condensed on the surface of the edge. What the purported individual mind becomes under this view is no less than an n-mind which is surrounded by every possible configuration of information from the surface edge of the universe. Buddha would have loved this sense of individual-to-cosmic entanglement, which he called "dependent co-origination.". The Platonic demiurge, Aristotle's soul, Plotinus' One Intelligence all can be accommodated within the quantum mind hypothesis. And its simplest natural implementation is through the language of category theory.

4. So how does [3] above relate to the current states of the markets? As we have stated previously, the invariance in the global financial markets is default. Any genuine understanding of the markets, its essential information asymmetry, come from recognising the face of default in every potential action of the market. The procedure is to take a Dedekind "cut" and to see the three sorts of infinity at the boundary between pre- and post-default. The Holy Trinity of Infinities from well-behaved and wildly-behaved series sequences are:

[C] Convergent
[DD] Definitely Divergent
[ID] Indefinitely Divergent

Or as one might fondly quip,

The Good
The Bad
The Ugly

To the good convergent infinities we can give simple names with certainty against a specific boundary. The bad definitely divergent infinities are extremely numerous and are bothersome because they may have finite inputs for their identity but they do not necessarily resolve into a single address except in the negative sense that we know that they cannot be pinned down against a boundary. And then there are the ugly monsters of the indefinitely divergent who continuously lie, cheat and steal and absolutely refuse to be confined within well-defined boundaries.

4. To begin to understand the Invariance of default, we first identify and correlate the events pre-default and post-default, categorising the events according to the good, bad and the ugly. Obviously, very few defaults have convergent infinities. And as the event you examine moves from the good, bad and the ugly, information asymmetry builds up towards a complete break, where the incremental cost for insuring against default is greater than the actual expected costs of default. How do we know? We know because it becomes infinitely obvious which parts we don't know compared to the parts that we do know! Most of the so-called "calculations" are simply going on just below the surface, so to speak, but really, much nore precisely and literally, the calculations at the level of quantum entanglement are simply physical and are going on whether we perform the calculations with paper and pen, computer, or by walking and talking, or not. The hardest thing to make explicit is the obvious.

5. As a fun exercise, you might wish to make some doodles isomorphically translating [4] above into category theory maps. You might be surprised to see how risk analysis changes from a single graph to a bi-valued representation. Hint and clue: map [B][B] in terms of the three types of infinities. How many permutations? That is the number of states of the system which government controlled markets can revolve in that particular phase of the Great Cycles of Default.

n-Financial Theology - Demographic Dividends

1. n-Financial Theology is the study of the variants of implementing the divine. In less eschatological terms, what we do when we trade our life's breath for butter, rolls and a Mercs comes under the jurisdiction of a divine metaphysical order. No matter which direction we scan our anthropomorphic landscape, we find the dangers of forced symmetries of priesthoods and enclaves -- the tragically unenlightened materially cursed elite -- who appeal only to the basest vegetive and animalistic images of consumption qua se to eruptions of vomitoria. The dangers I repeat are forced simplistic symmetries. What surrounds the forced symmetries? Fractals in every conceivable direction. What is natural if protected to its core replicates towards immortality. Ex nihil creatur -- Ein archain ho logos. Out of nothingness is creat(ion) and in the beginning is the Principle. Physics is an attempt to give form to the insubstantial and our genuinely insubstantial interiority is a vast search for the absolutely unreasonable effectiveness of the infinite. Somewhere between, sometime in-between, the spark in the terribly limited interval called our life, is the surrounding resonance of all meanings, of all deaths, of all lives, ALL are comfortably bivouacked in a quantum entanglement called love. Love is not just as Artur Rubenstein called "unconditional surrender," but it is the wilful protection of what is naturally recognised as the Good. Now, let us enter the n-Financial Theology.


2. What is n-Financial Theology? It is the conscious recognition of the fundamental principles of why this little world is alive and should be protected in its natural beauty. It is in the deep joy of this moment literally stretched across the fabric of space-time writ eternally as the logos on the lips of eternity. n-finance taken seriously across all possible universes points to a future now which whispers to us herenow. Time as linear construct is a convenience for near-Ptolemiac approximate calculations of train scheduled Swiss autistic cultures. Have you noticed how physical theories "improve" in accuracy as the sense of conventional time is weakened and relaxed?

3. For an adequate linear projection of global supply and demand demographics by Soc Gen see: http://www.scribd.com/doc/59489177/When-Demand-Outstrips-Supply-Copy. A good summary of this
article, see: http://www.zerohedge.com/article/coming-new-world-order-revolution-how-things-will-change-next-20-years-kondratieff-cycle-per

In Response to "Debt Crisis Of Faith"

in response to "Debt Crisis of Faith" http://www.ft.com/cms/s/0/d9cd3e44-a800-11e0-afc2-00144feabdc0.html#axzz1R7WFBrv2, I submitted the following comment:


The Financial Times argument pro Brady bonds completely misunderstands in general the invariance of default and more specifically, the lack of faith in fiat currency. With the decoupling of currencies from the gold standard, the shell game has become one of relative values, and moreover, the collateralisation required for Brady bonds would simply expose and emphasise the degrees of emptiness of the reserve currency in question. Off balance proposals are proxies for government approved Ponzi schemes. We should expect the bailout-default-bailout to continue through Italy, Spain, Belgium, then France and the UK, although the UK may dodge the bullet because its policies appear to allow it to hedge more nimbly than the others. Après Europe, the risk transmission should continue with fury through the US states, and then finally, to the.US Fed and Treasury. Well before that most government employee pension schemes will be pillaged by their respective governments. These problems are obvious and logically predictable since 2008. We are about to experience the climax of the great cycle of defaults.

Fiat Money Cycle -> Financial Tsunami = [B][B]

http://www.thetrader.se/wp-content/uploads/2011/07/fiatmoney.gif

1. The above figure graphically illustrates the structure of the Invariance of Default Principle (see previous blogs) and specifically gives us a bit more details of the government bailout to government bailout third phase of the Great Cycles of Default. Recall in our shorthand notation this is represented as [B][B].

2. The figure above suggests that the [B][B] logic is to simply cover each default with a larger and more credible government authority which can either take over the non-performing assets of the bankrupt entity or simply shut it down and make the taxpayer whoever they happen to be pay for the shortfall. In both cases, the governments in question acts the absorber of residual risk.

3. However, when the entity to be bailed out happens to be the government of the reserve currency, there is no more kicking the can down the road. The global residual risk carrier is the US itself. It faces an August 2nd debt ceiling deadline. This will probably be extended to avoid the mother of all defaults for a while. But the essential strucural problem will not go away, and even with the passage of a law that allows a higher debt ceiling, that ceiling will be quickly approached and breached. The US back in May 2011 was estimated to be paying around $90 billion per month on the servicing of its public debts.

Portuguese Debt Junked - Unravelling of the Euro?

1. Portuguese debt has been knocked 4 notches to Ba2 by Moody's. This means Portuguese debt is worthless, nada, a speculative dead bounce of a dead mouse in a dead cat. See: http://www.independent.co.uk/news/business/news/portugalrsquos-debt-cut-to-junk-in-new-euro-crisis-2307501.html.

2. The Euro crisis is now a war between those who claim to have power(politicos) and those who have a duty to pronounce on the reality of default (rating agencies).

No one wins this war except the media.

n-Financial Theology - The Religion of Credit Rating Agencies And De Facto Default

1. In the previous blog it was asserted that default is a structural Invariance. Just so we are clear: Invariance is a fancy term for what ancient philosophers called 'truth' or something you had personally solved or found and were willing to pass on to the next generation as a matter of inter-generational survival. We might even call it religion, from "re-ligere" to re-tie, to re-link, to re-connect the rules of the heaven and Earth. Religion, the anthropologists tell us, is the original emergence of cosmogony and cosmology. Later this fount of knowledge is abused by the priestly class for the purposes of self-survival...but that is another story. For micro-cosmic purposes de facto default is for all intents and purposes of financial physics and financial theology, the same. For "de facto default," see: http://video.ft.com/v/1036970088001/De-facto-default-

2. The truth guardians of the financial markets are the credit rating agencies. So big is their influence on the way the world works because of a fundamental question they must answer: Is a particular financial obligation X going to be paid in full on time?

3. We, that is, every non-credit rating individual in the world, depend on the credit rating agency to speak the truth. They are the last bastion before the liars and jokers defraud us of our hard earned wealth. If they were politicised, regulatorily captured, conflicted in their conscience, then default as an invariance could be put off forever, and by definition, the reality of default be made into nonsense.

4. To get a flavour of how the rating agencies participate in the ritualisation of market truth, where market truth is the pronouncement of DEATH via default, see: http://www.zerohedge.com/article/ecb-finds-rating-agencies-have-suddenly-found-religion-it-prepares-flip-flop-accepting-greek. Note the title of this article-> "As ECB Finds Rating Agencies Have Suddenly Found Religion, It Prepares To Flip Flop On Accepting Greek Bond Collateral.". Also, see Moody's castration of the Chinese debt in: http://www.zerohedge.com/article/moodys-july-4-bomb-rater-finds-10-chinese-gdp-bad-debt-claims-china-debt-problem-bigger-stat. For the classic anthropological perspectives on the rites of passage and the micro-rites of passage concerning death, see Van Gennep and Robert Hertz. (Hint for the budding social anthropologist: there's a functor between the category of [rites of passage] and [funerary rituals of death].)

5. In simple category terms, let the objects A, B and C represent [actions of any and all market participants], [actions of a credit rating agency], and [default or not-default]. Clearly, the morphisms f:A->B, g:B->C, and h:A->C, where h:gf, form a 1-category. f is in the most general sense the transformation of market noise to market information, and g is the transformation of market information to credit rating, and h is the de facto rating by the markets. So, h:gf indicates the convergence of truth and the approximate truth in C.

Challenge: if you can draw the category in 5 and walk through each of the objects and morphisms, you can see the basic structural paths of financial market beliefs.

Declaration of Independence: n-Crisis: n-CDO and n-([B][B])

1. Surely, July 4th, 2011, 235 years after the signing of the Declaration of Independence by 50 wealthy revolutionaries may give us pause as to how those words affect us today. See: http://www.archives.gov/exhibits/charters/declaration_transcript.html

2. Freedom is responsibility. Yet, our entanglements today in the worlds of personal and governmental responsibilities appear to enslave us in systematic bureaucratic multipliers and enchain us in the fears of unpaid contagions. The resilience of a global system of financial trades is susceptible to the collapse of belief. Belief that trades on reputation and authorities.

3. Money. Billions and billions of individual bilateral trades occur each day using a symbolic code for value. These transactions are aggregated to greater and greater volumes and values by what might be called 'hard transactions' evidenced by contracts and aggregated in a weak sense through the media as comments on the value of a nation's currency and 'bought' by news hungry consumers. Money is not just what you have in hand at the shop for candies and drink, or electronic media that allow you to make or receive monthly payments. Money is the meeting of billions of minds and how those minds are herded, controlled and set into motion all form substantial parts of what might be called the 'theological impertinence of money.' Note how our beliefs as to the value of money appear directly related to edicts or 'ratings' pronounced by agencies beyond the importunities of elected officialdom. Money therefore at the heights of its global social influence and impact is a phenomenon unto itself and contains its own structural integrity, a de facto oligarchic elite are naturally nodes of excessive symbolic power while the masses are fed panem et circenses.

4. CDOs Do Not Create Rights and Duties, rather they generate false Privileges and Immunities. Contractual rights and duties involve the individuals qua individuals, that is, those who can naturally identify each other, set in definable time and space. But to whom does one collect from, plead, negotiate, and most importantly, make a claim against when the very purpose of the transaction is to legally bow out of existence and avoid bankruptcy? Suddenly the signatories to the CDO feel they are above the wherewithal of the law. The CDO sets out a disability against a constitutional freedom, and in this extreme sense is rendered unconstitutional.

5. The Credit Crisis of 2008 evidenced the Invariance of Default, with Default as the dividing line between financial Innovation [I] and government Bailout [B]. In the Great Cycles of Default, we have the following weak rotational symmetry (permutations) in category theory notation:

A = [I][I]
B = [I][B]
C = [B][B]
D = [B][I]

Important note: we have left out the morphism from the left [ ] to the right [ ], although this morphism is 'default.' Default as we know acts as a reset button for the subsystem of private contracts. Default can also be thought of as the 'Men in Black' button that not only resets but also formally re-writes social memory. In category theory terms, there is a forgetful functor from all the trades with and without default to trades without default. Given the primacy of default, one would expect the stickiest object to [B][B].

6. What do we mean by the Invariance of default? It means that there is an appreciable, greater than infinitesimal, and therefore actual actuality of default given any arbitrary period of time. Another way of putting this is that time itself in its discrete essence is demarked in the many billions of discrete transactions between objects A, B, C and D. The structure of A, B, C and D comes from the invariance of default.

7. What is financial stability in the face of the four stage cycle of default? All we can hope for is building shortcuts to the desired state. The Orderly Liquidation Authority in Dodd Frank is a morphism from B to C. And the Whistleblower Incentives and Protection provisions of Dodd Frank are a morphism from D to A. We leave the exercise of determining why these morphisms are so for the reader.

8. Final hypothesis. Note the potential interaction between OLA and WIP. What could this morphism mean? Trial court where these two issues are conjoined.

A Kubler-Ross Analysis of Greek Crisis & Near Death Experience

For the full article, see: http://www.zerohedge.com/article/k%C3%BCbler-ross-model-terminal-keynesian-unwind-or-five-stages-greece

Note the functor between the death of a person and the death of nation. 

"It is oddly comforting that an individual's steps in dealing with terminal illness and the world's approach in dealing with sovereign insolvency are identical. Alas, everyone knows how both finish in the end." [Ibid.]

n-Fascism x n-Ponzi => MANY Wars => ONE Empire Gets Desperate When Money Dies

1. How many de facto wars has Obama on his hands? Six. See: http://www.washingtonpost.com/national/national-security/us-drones-target-two-leaders-of-somali-group-allied-with-al-qaeda/2011/06/29/AGJFxZrH_story.html

2. Are the US Treasury and Fed actions part of a great Ponzi scheme? See Timothy Geithner's letter to Senator Demint in http://www.zerohedge.com/article/obama-redirects-broke-us-government-playing-class-warfare-card-focuses-millionaires-and-bill wherein he implies that the US taxpayer is the victim of a gigantic Ponzi. For a beautiful classic as an object of comparison, see Adam Ferguson's (1975) "When Money Dies - Nightmare of the Weimar Republic," see: http://university.unitedstatesliberty.org/654/textbooks/adam-fergusson-when-money-dies-nightmare-of-the-weimar-collapse/.

3. Our n-categorical analysis tells us to look for the morphisms between objects to find categories, and then the morphisms between categories (functors), and the morphisms between functors (naturality) leading us to adjunction, where the left adjoint is equivalent to the right adjoint. This procedure, while sounding mechanical, is entirely trackable and ensures us that our metaphors and analogies are not entirely baseless, and can be re-conceived as programmes in reality! At a terribly general and abstract level, what we perceive as an object A in reality is transformed in ourselves as an object B, and when the object A is conceived as an object in the mind as object C, this C comes into the mind from the object A. Let's call the morphism from A to B, f. And from B to C, g. And the morphism from A to C, h. The category is defined as the transit round the objects through the morphisms such that h:gf. This is an important result oriented relation. Note also the two steps g and f become in some sense 'equivalent' to h. This basic conjurer step of "2 into 1" replicates one of the greatest fundamental tensions in the deepest parts of philosophy about what do we mean by number, quantity, of quantity being the primus unus of quality, of set theory's fundamental assertion that a singular attribute (intensionality) is equivalent to an impossibly innumerable collection of elements (extensionality) and finally, to the fundamental logical principle that the assertion of a falsehood (the many lies) as premise and implicating a truth (a singular factual and verifiable truth) can imply as an entire statement the truth of such statement. Most of what we "know" is in the form of the latter statement -- whose classical name I forget but hereby name for convenience as "altum fuit," for "he went to the bottom", as opposed to "alta fuit", he went to the summit.

4. One of the practical points of these exceptionally simple abstractions on rhetoric is to see whether we can apply them to guide our actions in life. Can you see the categories, morphisms, isomorphisms, functors, naturalities and adjunctions in your life? The philosophy of the 21st century will be written in the code that programmes, and the programme beyond all programmes will need protection.

Agora - A Film about Philosophia

If you wonder what philosophy is about, this is it. Hypatia the woman philosopher says, "I cannot believe as you believe. I must question and doubt what I believe. I cannot do otherwise."

I use to think you could learn philosophy.

And then I thought you could become a philosopher.

Now I know philosophy is neither what you learn nor some image you can approach.

Rather philosophy is you when and where you are it.

Why did US decide to release 60mill barrels of oil? Answer: Sweet Ain't Sour

The answer is that the loss of Lybian sweet oil cannot be made up with sour (hi sulfur) oil because European refineries can't process the sour stuff.
No conspiracy here. Just the result of bad European environmental policy.
See: http://www.minyanville.com/businessmarkets/articles/International-Energy-Agency-Strategic-Petroleum-Reserve/6/24/2011/id/35359

Euro Crisis => n-Eurocrisis + Peak Oil

(1) The Euro Crisis is an n-Eurocrisis plus peak oil, that is, the Euro is in the process of being dismantled generally (the meaning of "n-" means in many dimensions)and appears strictly correlated to a country's expenditure to oil.

See:
www.zerohedge.com
by blindman
on Tue, 06/28/2011 - 20:59
#1410447

"Here are a few things to keep in mind when you are reading articles about the European Debt Crisis:
– The flow of funds — euros — overseas toward energy producers in the Middle East and elsewhere represents a great portion of insolvent countries’ cash flow.
– That the flow of funds between one European country and others in foreign currency — euros — represents another great portion of insolvent countries’ cash flow. These are the funds swapped for automobiles, auto- related ‘development’ and fuel- guzzling military hardware.
– The funds to energy producers is simply money borrowed then lost. There is no return other than that gained on the purchase/sale of the energy products. Money borrowed from the European establishment likewise produced no lasting effect. Borrowing was for waste- enablers such as luxury cars, new highways, shopping centers, and American- style suburbs rather than capital for productive enterprises. In this light, the euro is a predatory instrument like a sub-prime mortgage.
– The Euro- nations with greater finance access are using this leverage to buy a small amount of time at the expense of their dependent trading partners. Meanwhile, the time- buying
process destroys whatever goodwill the euro experiment earned since the currency union idea
was bruited. Instead of accord, it is devil take the hindmost. What trust citizens had in
their institutions is now a ruin in Syntagma Square crushed by an insensitive and
counterproductive ‘Troika’.
– Ironically, the same countries’ workforces are now accused of being ‘uncompetitive’ by the
same entities that rendered them uncompetitive. If there is a more perverse and diabolical
dynamic it is hard to see what it is.
– The European countries at the edge of default cannot afford to do so. The Eurozone debtors
cannot be compared to Argentina or Iceland as neither countries are energy debtors."
....
Europe’s fuel- driven waste- based lifestyle is kaput, the goods bought and borrowed against
for purchase are useless, the fuel used once then gone: all borrowed to gain this is
noncollectable. The money has been spent and gone, it is ‘Dead Money’."

And see: http://www.economic-undertow.com/2011/06/27/dead-money/
VZCS

2. In May 2010 approximately €100bn was thrown at Greece, and another €120bn is expected to be thrown at it in July 2011. No one expects the Greeks can export, privatise or tax themselves enough to pay for their entire indebtedness which will be somewhere near €900bn.

3. With de facto defaults, how far are we from war? A determined creditor will force the hand of occupation. From embarrassment to insult in non-payment, we see an excuse of confiscating accounts in Switzerland and Luxembourg. How quickly a country descends will be dependent on whether there are bank runs. When letters of credit are no longer honoured from Greek banks, then the local system will freeze, ATMs will stop, and when the salary isn't withdrawable by the third week of the month, and people realise they cannot buy any food or water, and that the electricity has stopped, and most importantly, a bare trickle of petrol is at the pumps, then only the rurals will be able to survive and the major cities will become deserted after the angry fires. This stark vision will be replicated in other energy hungry and debt poor countries. With a failure of money credibility, no energy comes into the country, and a much simpler existence ensues. Nobody wants this to happen so more moral hazard and adverse selection will be thrown into the brew until the system goes pop. More misery, pain and possibly war are coming to Greece unless it opts out of the Euro.

Systemic Risk Solutions under Hohfeld

1. Do you ever get the feeling that the problems of government are just too big to ponder? And that no solutions are forthcoming because the problems themselves are so hard to define? Really? Imagine belonging to a group where you either have to follow or lead. The fact there is a follower or leader does not mean anything at all because of the necessity of the situation. Power is given by one and used by the other with the object that both can survive. This scenario is a semblance of the Prisoner's Dilemma. But should the leader be any richer or wealthier; or that there be any presumption that the power he or she commands makes him or her any better than the other then we have the beginning of fascism. The Prisonner's Dilemma turns into a closed system of self-justifying privileges and immunities for the few, and concomitantly, increased disabilities and negative liabilities for the many. Simple as that. In legal theory, we call this Hohfeldian.

2. Now what is the problem with the US government? It is run mainly by de facto fascists who have translated the power given temporarily by the people into permanent features of privileges and entitlements, de facto immunity from prosecution, and increasing the disability of the people.

3. The only open legal relation, that is, the only legal relation left open for determination is who will be liable for this mess? Liability strikes both ways. It means who will be liable for any munificence if there is any left, and similarly, who will pay for the debt when it comes due. Liability is the way the law talks about the determination of risk. In legal terms where complete order is determined asa form of translational symmetry through time by judicial decisions and the processes thereof or rites, rituals, signs and symbols thereof, corruption is held at bay because the law's structure itself as a whole is invariant. Theoretically, what is invariant allows us to measure, compare, predict with precision and realise with accuracy that which is within the ambit of our consciousness.

4. And what can we see across the governmental landscape of the US? First and foremost, nearly 14.5 trillion in national debt. And a giant military engaged in three wars. And a Medicaid system where the future expected costs are three times more than future expected income of the people. So these are the "problems" which the government must fix to get its house ("oikos") in order ("nomia"--law and order).

5. to fix these problems by legislation, we might listen to:
by Madhouse
on Sun, 06/26/2011 - 16:20
#1403524

6 year one time terms with random confidence votes for the Pres, Sen, Congress. Constitutional ammendment to balance budget and turn the 16 trillion into a 30 year note with a 1/30th sink each year. Cut the defense budget to 2002 levels, taxes back to 2002 levels, get govt completely out of healthcare (i.e. phase out medicare over 10 years) and stop the [expletive deletion] mongering...

All of these goal changes would be very much against the interests of major corporations in the US. So, they would not be readily feasible.

6. Another strategy, long ago conceived by Plato, is to educate the people. Funny that after 2,400 years, the nation state that is currently living well beyond its means is Greece and is the focal point for systemic collapse. As Michala Marcusen (quoted from Zerohedge) od Societe Generale writes:

"Can Greece ultimately avoid default? The sustainability of Greek public finances depends critically on the snowball effect, i.e. the difference between nominal GDP growth and the funding rate and the level of the primary surplus. Greece’s public debt today stands at almost 160% of GDP, with a primary balance forecast at -2.8% in 2011 and nominal GDP forecast at -3.1%. Even with the attractive funding rates provided by the EU and IMF (just under 4% at present), the situation is clearly not sustainable. 

Making a back of the envelope calculation, we find that if Greece can sustain a primary budget balance and enjoy nominal GDP growth that exceeds the implicit interest rate on its debt by 1pp, it would take Greece 100 years to reach a debt-to-GDP ratio of 100%. If Greece in addition could sustain a primary budget surplus of 1% of GDP every year, it would take 50 years.

Theoretically, Greece can avoid default, but it depends critically on the ability to achieve growth, run a primary surplus and achieve a cheap rate of funding. If the rest of Europe wants to avoid Greek default, it seems it may be funding the country for many years to come."

7. So what should we do?

We should teach that Freedom is Responsibility and that Knowledge is earned through constant Discipline (unlike the Foucaultians' views of discipline which for them is really about pernicious stimulus-response conditioning, discipline comes from the concept of one who is capable of learning).

The first implementation of these principles should be in grade school so that balanced budgets become features of the good society. Just so we understand ourselves completely, no one should learn how to do financial derivatives unless they are first tested and cleared of any and all socio-pathologies. Rigorous methods of mass financial creation become weapons of mass social destruction in the hands of determined fraudsters who dress their justifications for such with idiotic solipsistic arguments of regulatory arbitrage.

Quantum Time Reversal Is Normal at Neuronal Level

1. For a long time, I have been looking for an explanation of some "future viewings" I have had in the past.

2. The best explanation I can find after a 30 year search is the quantum brain hypothesis. See, http://watarts.uwaterloo.ca/~sreinis/quantum.html for a partial answer although the authors in this article think "time reversal" is just too weird, it cannot be denied at the neuronal level.

3. here's an anecdotal piece:


[2] by DeadFred
on Sat, 06/25/2011 - 00:48
#1400617
www.zero hedge.com

There's a pretty far out factor to consider relating to speed. When I used to work in neuro-science research I came across a very hard-to-comprehend but highly reproducible phenomenon, time is fuzzy at the nano-second level these algos are working at. Imagine a test subject with probes measuring the firing of some individual neurons. Show the subjects one of three types of photos and measure the neurons firing in response to the photos. The first type of photo is pleasant (fuzzy kitten, rainbow or such). The second type is startling (snake or tarantula for example) the third type is arousing (girl in bikini or the like). Different neurons respond to the different types of photos. The really bizarre thing is that the correct neurons will start to fire BEFORE the photo is shown, even when neither the subject and researcher know what type of photo will be shown. This effect is at the nano-second level, it's real, it incomprehesible, and it's so common I've seen it occur in several neural training research presentations where no one even bothers to comment on it. The best explanation I've heard suggests that time behaves similar to a quantum wave so there is a fuzziness that allows leakage of the future into the past. If you want to boggle your mind let Mr. Google lead you
down this rabbit hole."

3. My technical argument pro-time-reversal has to do with an improvement of a calculation made by Eugene Wigner, who applied the Shrodinger equation to a two state world populated by "nutrient" and "beings". Of course this is very crude, and he managed to show that the survival of beings for most scenarios were improbable to the extreme. He also mentioned that what was lacking in quantum calculations was taking account of "consciousness" since the quantum event obviously affected consciousness, could consciousness affect the event? Anyway, he had no way but to indicate that no complete answer was available unless or until quantum theory could include consciousness.

4. What makes sense to me now is that the neuronal-brain-body complex is a quantum calculator. I prefer to call it a calculator rather than computer because the quantum phenomena is really not at all in any mystical software or esoteric learning, but just simply the result of well reproducible processes. The entanglement of the self-replicator's on-board quantum processes allows for time reversal and thus, greatly increases the chance of its successful replication. Put another way which is the isomorphism of the previous statement, the future leaks to the present.

n-Risk

1. When you put an "n" in front of a word, you are giving it infinite dimensionality.

2. Risk by itself is merely 'change'.

3. But n-Risk (and notice the capital R) is to take risk in it's infinite variegations. You will not or need not stop, and may arbitrarily go on and on.

4. Consider putting an n- in front of every word in the next sentence you say.

5. Where will go then Charlie?

6. Will you be able to breathe?

7. Or, will all those infinities crush you in your bed before you can grab a cup of coffee?

n-Biokiatsu - What art thou?

110620
After having been unintentionally excluded from my FB identity--it felt old, decrepit, constraining like old bark and snake skin--I decided to resurrect a freer identity where James Joyce's Molly Bloom meets Parmenides, Zeno, Plato, Aristotle, Osho, the Aikido Masters, my anthropological stories, and specific razor sharp comments on law and finance (my main disciplines) so that I can lay bare the raw and the cooked provisions of an ever entangled mind beloved of spirit. At the same time, I want to form a cahier--exercise books--in my own signs, songs, rites, meditations, rituals, business quotidian non-seeker, and indecipherable codes--currently it is transforming the monstrous beauty of Lisi's 248 exceptionally simple theory of everything into an even more salubriously simple n-categorical algebra. My job would be complete and I would evaporate to Heaven's gate if I could translate the 248 to a specific smaller number preceding the Categorical. I want to be free to express what pinches my skin without having to calculate whether the Reader's anatomy has been contumed.

Why and what the hell is n-Biokiatsu?

It is the mind-body-spirit of Biokiatsu which focuses on the monadic and dyadic to the many into the one. The Many into the One is exactly the conceptual of n-Biokiatsu. n-Biokiatsu is generalised Biokiatsu, which in itself requires a lifetime to master in glorious detail. Imagine tutor and tutee practising ethereal qualia of incremental infinities of eternal learning. That would be the dyadic supreme. n-Biokiatsu generalises so that any life occurrence in normal coordinates of social-hierarchical construction may be translated into n-Categoric nonsense, and realised as action in n-Biokiatsu determination, certainty, elegance and gracefulness.