Author Topic: Understand Everything Fundamentally  (Read 783 times)

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Travis Patron

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Understand Everything Fundamentally
« on: February 14, 2015, 02:37:29 AM »
The following is a great article on the 'entropic force' that characterizes economic law.

Historic and recent scientific developments add to our understanding of how the entropic force from physics may govern everything in nature, including ecosystems and economics. This can be applied to fundamental analysis of potential political outcomes, macroeconomics, and paradigmatic epochal shifts, e.g. the current shift from the industrial to the knowledge age.

The following actionable points will be explained.

Due to Coase’s theorem, the EU crisis (and China and USA) will resolve in more gold and silver fiat price inflation, not the deflation of unsocialized defaults. This will continue until the global financial system is backed with gold.

Passive investing (bonds) are peaking and when the global reserve sovereign bonds ultimately die, i.e. US Treasuries, the ‘wealth’ in the current system will disappear (or be severely devalued or constrained to devaluation by capital controls), and the global financial system will be restarted with gold backing. Thus, the only way to short US Treasuries in the end game, are physical precious metals.

We are entering the end of the passive capital intensive industrial age, and the beginning of a knowledge age. This will require changing your thinking about what ‘investing’ means.
Resource shortages are the symptom (effect) of society’s ubiquitous pooling of capital, and not a fundamental cause of the current crisis. Resource needs will be resolved by the coming knowledge age. Arguably, this pooling of capital was perhaps necessary during the capital intensive industrial age.


Read the full article Understand Everything Fundamentally.

Li

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Re: Understand Everything Fundamentally
« Reply #1 on: June 02, 2015, 08:50:18 AM »
Seems likely that a new global system will be backed by a basket of commodities, no?