Friday, October 10, 2008

Intended Consequences

Modeling for Stability

Notice how volatile markets are. Hardly the model of stability.

If you are managing your savings, your capital, for the highest return based on, as we are told, that the highest return is in equities, then there is likely to be a high volume of savings in equities.

While stocks have the highest return on investment, it is volatile. The hedge fund manager--the person that angles to leverage a 30+ percent return--hedges the risk on the return by causing volatility--by market manipulation with volume. Since a 30+ percent return cannot be had through economic growth without causing competition (pluralism of the marketplace) which would diminish the power of consolidating (use of volume to manipulate prices), the return is leveraged from your savings, about 40 percent so far.

If you want to "share" in the wealth, you MUST deconsolidate the capital.

The current political-economic model in operation, the Hamiltonian model, promises to ensure stability. Its legitimacy is that by always providing for the welfare of the highest income class in priority causes stability.

For the highest imcome class, the elite, the model very reliably provides the means of gaining power and keeping it. It is verifiably stable. It always produces the intended consequence--the highest return on the investment with reliable efficiency (falsely referred to as the efficiency of markets).

This model is called, the elitist model of power.

For non-elits, it is the model of instability. The volatility--the micro/macro stochastic oscillation that is naturally predictable--is the business cycle you are "subjected" to, and because the cycle has this "natural" characteristic of predictability, the subjugation, the exploitation, is a natural determinism. The subjugation of the ruled to the rulers is a "dictate" of nature that persists despite whatever imaginary, Jeffersonian notion there may be for The Natural Rights of Humanity.

We cannot escape our natural condition. It exists independently of our imaginary ideals. If we foolishly try to transcend what subjects us to reality, the consequences are reliably determined to be instability, and according to the neo-conservative elements of our global society, the cause of our current instability can be nothing but the foolish attempt to defy conservative principles and values, the laws of nature, the proper and efficient elitist model of power.

The elitist model is, of course, verifiable nonsense, right up there with the flat earth at the center of the universe.

That we continue with this idiocy is a complete tragicomedy.

The McCain/Palin ticket is laughable! Combined with the current economic crisis, a complete tragedy!

Let's get real for much, much needed change.

Obama/Biden 2008!

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