[GJM] http://kheper.net/essays/Transfinancial_Economics.html

[viktor zolotenko]

http://kheper.net/essays/Transfinancial_Economics.html

dear searle, i had a quick read of your paper.
at a general level, i agree with the intent of
your paper i.e., things could be a lot fairer
at a global level.

in order to convince people [e.g., g.soros or similar]
i think you must BUILD a model of a global economy
such that u take into account the key variables that
impact on an economy.

start simple, with a single state economy with local &
overlapping functions. a good place to start is a book
by j.blatt called "economic dynamics".

with a design u can simulate what could happen and
stress test for IMPACT events [some thing less than
ww3 or a comet strike etc...]. further, people/players
adapt to rules and the legal frame work must be
consistent with 'your' model[s]. it is very hard to
get legal systems change [lawyers would lose
money&power].

HOW would u implement change?

further, the role of 'potential value' & the role of
info/data is central to a complete model. modern
economic theory has made big strides at a theory
level, without being able to 'do it'.

thus, while i agree with some of your key ideas, to be
convincing in your views & models [i do not see a
formal model in your paper].

i must admit i am a bit more hard-headed when it comes
to eco-models & computer software/hardware: does it
work?

further, when does the hard ware+software fail & how
can the system recover after failure? who pays the
pain?

a crucial aspect for 'changing the way economies work'
is having people who have integrity [i.e.,
honest+humble+competence] in positions of power i.e.,
they can make decisions AND make those decision work
based on 'trust' of leaders.

in order to build trust, the masses need an education
system that has a COMMON basis in the idea of "fair"
play & pay. hence, i focus on lit&num in business
ethics and governance=management.

decision support systems that are reliable [give a
result under stress & strain of random 'events'],
timely [i.e.,as soon as possible] and accurate and
valid,
are crucial to any business or social life.

who are the best people to design such a system?
electrical and chemical engineers are best, IFF they
have process control experience in a practical setting
under 'extreme conditions'.

why? many of the design issues that arise in the
design of a power distribution system for electricity
[or chemical-physical processes] arise in economics.
further, coming from 'outside' a [closed] economic
paradigm [such as 'free market economics], they more
easily see the problems while imposing a discipline on
system design that economists lack. most economists
have NEVER solved a practical problem worthy of
description.

i have designed three treasury management systems from
'scratch' & sold/tested these systems in a practical
setting. a treasury management system must handle a
huge array of types of financial instruments and is
subject to random shocks - a treasury system has all
the features of a telephone phone billing system [this
is NOT a problem that has been solved e.g., i know of
a telco who spent 10 years building a system & then
started all over again!].

so, why am i on the bones of my butt? my systems were
the best AND corp players simply stole the code and
re-packaged nad then told me to go jump!

as they say, business is business. small players have
no way to defend against theft [ the rules are biased
for big players who are happy to play hard-ball]. this
problem is made worse via corrupt pollies who play the
corp greed side before the 'small' inventor.

as it turns out, i did NOT release my complete systems
[my complete systems are a management accounting and
reporting system - see "a mathematical analysis of the
balance sheet].

further, i have developed a valuation algorithm for
the valuation of a options, such as the valuation of
forrests & other natural resources e.g., oil or coal
fields [plus financial instruments].

so, i am familiar with eco theory at the high end and
practice. it seems to me that many people who work in
the 'green' area [with whom i agree with about the
"facts"], but they lack design skills of a PRACTICAL
[=deliverables in terms of hardware+software] results
[this MUST include a set of education tools for the
'common person].

so, a crucial step is the basics of 'home economics'
at schools [i suggest "the art of war", peguin delux]
and a basic course to all on the internet that suits
the need. most account systems are a little on the
silly side [see john cleese on the balance sheet] -
this is true across the globe.

BOTTOM LINE
choose a good set of pollies as a FIRST STEP for the
purposes of transition - two countries have done so:
russia & china - the pollies in other states have got
sh*t for brains AND lack integrity, humility and
strategy based on the idea of fair play [e.g.,
blair/brown/gwb/howard/merkel etc...

so, who should choose DESIGN engineers who have no
vested interest in legacy systems, who have good
RESULTS!

most pollies are incredibily stupid and are in a
closed system with a strong dependence on the 'string'
pullers behind the scenes. it is VERY unlikely that
some thing along your lines will see the light of day
[even if it was/is viable].

so, a [THE] MAJOR issue is that our polly systems are
corrupt and the quality of pollies is VERY low in the
general area of 'design'. further, behind the scenes
we have the string pullers & media & education
"experts" with self-interest as their social focus.

the best place to build a new eco-system is in a place
like china or russia or ukraine. why? there is no
inertia from legacy systems [except a 'new' set of
greedy elites], basic education can be changed QUICKLY
[one of the reasons i suggest "the art of war" for
lit&num in business ethics].

the most likely is china [india is a mess and lacks
the ability to IMPOSE change & has a CASTE system &
systemic sexism/genocide]. china does have a serious
issue with 'sexism' & the lower status of females -
this has the potential for a MASSIVE social disaster
[some thing that china's leaders seem well aware
of=that means they can do some thing about it].





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