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-.