Finding symmetries in an unsymmetrical world ..

Archive for January 2010

There was once a time when you just joined an organization, and all you wanted to do, was to get to that “chair of eminence”, too early . You worked day by day, harder each day, until one day (may be) , you realized what is required is persistence .If you were lucky and deserving (not in any particular order), you got part of what you needed timely .

There seems to be a similar problem with economy. To grow, an Economy must be persistent, and aligned to the interests it is supposed to serve , its denizens .But that hardly is the case. Sooner or later, it becomes a victim of its own beneficiaries .





What typically happens is the other way round – Witnessing the liberal , or the radical reforms , an economy opens up, and there is so much new to embrace, so many unrealized , and all potential ideas , that coping up with Idea Management and harnessing the power of an “Open Economy” gets a lot tougher .

That this picture of “Boom” is overly exaggerated , is seen in the rapid growth, speculation in the stock indices, and a lot of virtual ,exponential and mostly undeserving sources of income . This gives an overall impression of Development , which further adds on to the inflation. Since there has not been any “real wealth” that has been created and with the cost of living actually going high , the standard of living actually falls !

And ,then there are loopholes , which are poked (and exploited) by the Foreign investors, and black Marketers who are quick to pick up these “Gaps in perceptions” , and cash on this virtual money looting and amassing wealth . It happens all the while, just before the bubble busts . This is precisely what money laundering schemes operate on – future growth perspectives to deny/delay the returns of the present gains (i.e. the satisfaction you would get when you “consumed” rather than “saved up” )

So there is a fundamental thing to ask every time you see a “perception” maturing  –

Maths never lies, unless the numbers are made up ! Speak to them, read them, eat them , find the patterns and digest them .

And unlike other “perceptions” , they make sense , for they speak to you on your face , however harsh the truth be .

SEEK IT !


~
ek

Where is your will to be weird ? – Jim Morrison

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There’s an interesting read that says “Money is a token that represents the calories of human energy or labor ” , i.e.. when money changes hands the energies put into producing those goods and services is “exchanged” for other goods or service, or “converted” into other forms of goods or services .

We say that the worth/wealth of any country is the amount goods and services they produce together. Also, we measure the amount of currency that any country can publish notes is measured by the amount of gold reserves it has .But with the flashy money “generating instruments” like credit instruments, we have more and more of virtual money which is effectually giving us the impression of money that is just “perceived to have some value” That being said, shouldn’t it come as natural that there be another alternative “currency” for measuring the goods and services a country produces ?

And what has Math got to do with the DNA of the economic structure , shouldn’t that change wrt the virtual money that any country can leverage this virtual money?

Let us take an example of hyperinflation in which the “prices increase rapidly as a currency loses its value” . This accompanied by a complete loss of confidence in the money and hence the impulse to change it to stable goods and services to prevent further loss , is another type of Virtual money at it best, Simply because the country growth- i.e. the goods and services do not supplement adequately the increase in the supply of the notes.So much so has been Hyperinflation in history that notes were even used to make wallpapers (Germany) , buy 3 eggs with $100 billion banknote (Zimbabwe) .In most of the recessions , it is the virtual money that was overvalued, and at the best of the same, the market correction happens so naturally and flawlessly ,as an means to end.

But valuing the virtual money will more often be riddled by flaws . Simply because there is no concrete Math there. How do I account for an ever-increasing no. of credit cards, which people use all round the month, to pay off theirs debts later in the mid of next month with what they earned “that” particular month ?  The flaw is that the “calories” , or the goods have already been consumed , so there must be a deficit somewhere ! And it is this deficit that gives the impression of a booming currency .


But is that to say to throw the flashy credit instruments out of the window, not take loans for the goods you cannot afford upfront, or conversely, not pay off the returns of “future events” or the rainy day like life insurance? There’s got to be a clique operating internally between saving , consuming , demanding and generating . And this clique balances itself very well . Only when it topples, it is what we see and discredit as flaws in the market instruments . Why not balance in , day in and day out ?

What do you think, how can we catch this pattern, and use to arrive at an equilibrium which  makes the market sentiment flow in a concordant rhythm all the while, giving a reasonable estimate ?

Well there’s another catch there (thus justifying why Economics is so complex) -The catch is that it is all based on (market) Information asymmetry , for we are not ,  aware of the market operating as a unit in an objective way – it is this subjectiveness that hurts .


So go on, Educate yourself, not because Money matters (which it definitely does) – but because it can save us all , and the market that the country operates on future , unnecessary ,and avoidable surprises , nasty ones I mean .

~
ek

We often say “I JUST happen to be at the wrong place, at the wrong time .” If that be it, when are we moving to the right place, if at all, we are !

There are people willing to be led, to listen to you, in the purview of what common interests you have. You just need to reach out, extend your hand, and share your common experiences and passions. People are more willing to listen than to change . This is not to preach to learn to respect others views and personal choices of lifestyle and Maslow’s hierarchy of needs, but to insist how much finding your tribe, sticking on and building an authentic relationships matter .

Amazing things happen when people with common interest meet – Silo’s are boring– get out, and find your place ! There’s one of such , for sure .

Here’s an Awesome read for the flow, and for energizing those creative genes !

If WE can then WE must !

~

ek

Write your obituary. If you don’t like the way it reads, change your life – NOW


Hey there, would be nice to have you around !

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