We are continually being challenged to beat the odds. Headlines about lotto wins raises the possibility "Why not me?" despite the odds. The pokies are an easy way to pass the time that hopefully will throw out some cash - to the lucky few. Scratchies and lotteries attract a bevy of hopefuls. Many of those who go to the races hope that they will back enough winners to pay for the outing. But it is the bookies who have the odds on their side
Putting money into superannuation in order to have a pleasing retirement is not seen to be a gamble. It is called an investment. Gambling is frowned on by many in the community but investment is regarded as a fair way to make, rather than earn, money. The Melbourne 'Age' even has a section on Wednesday devoted to that topic. It is a good prospect whilst the economy is growing but the odds have changed following the GFC. Of course, the financial advisers continue to make money by taking their cut for the service, good or bad, that they provide.
Many people are enjoying a comfortable retirement as the result of a growing economy during their working days. The politicians providing seemingly convincing arguments that the current sovereign debt problems in the financial market will be overcome by their decisions. Thousands of Americans, Greeks, Cypriots, Irish, Italians, Spanish, Portuguese wonder how the dice manged to get things so wrong for them in recent times.
Many pundits proclaim how it is possible to have lucky runs. They have this belief because they do not understand that there is no connection between the spinning of a wheel and the previous one. They should toss a coin. Suppose the tossing produced three heads in a row. Some people think that heads are having a run so the next toss is likely to be a head. Others will quote the 'reversion to a mean' and expect a tail to be more likely. Neither is right! The result of the next toss cannot possibly be predicted. A complex mathematical model could calculate the dynamics of the spinning coin but it would not predict the outcome because the impulse applied was unknowable so could not be input to the model.
Entering into tipping competitions has become popular as people cannot resist the endeavor to show how smart they are in a harmless pastime. Some, with a mathematical bent, devise methods that use statistical principles in the expectation that this approach will produce better tipping performance than what tipsters relying on their skill can achieve. In soccer games with three possible outcomes, home win, draw or away win, good tipping could well have a success rate of 60 to 70 per cent. This rate will depend on an unknown combination of skill and luck because the outcome of matches is unpredictable to a large extent. A mathematical method may be good enough to out perform the vast majority of skilful tipsters so the mathematicians believe they can beat the odds and win the competition. That is spurious logic as the performance of a method will have an unknowable degree of luck. So will all the many skilful tipsters. Some will be very lucky and so have an unexpectedly and unrepeatable high success rate. The mathematicians will learn the hard way that their methods cannot beat the odds.
Naturally, many people know how to beat the odds. They embrace a fugal life style enhanced by family and friends in close knit communities. They obtain satisfaction by using their personal skills in gardening, cooking and repairing things, often for others. Without using the term, they embrace the 'precautionary principle' even though their governments do not.
Featured Post
Entropy production delusion
It is common in knowledgeable circles to talk about the development of civilization in terms of entropy discussion. The term 'entropy...
Saturday, April 20, 2013
Beat the odds
Labels:
Americans,
bookmakers,
Cypriots,
financial advisers,
gambling,
Greeks,
investment,
Irish,
Italians,
luck,
making money,
Portuguese,
precautionary principle,
soccer,
Spanish,
superannuation,
tipping,
toss up
Friday, April 19, 2013
Technofix delusion
It is amusing to read of the belief in the ability of technology to solve emerging problems of civilization. Machines are being invented to ease the mining of natural resources as they become scarcer. Cars, trucks, trains, airliners and ships are considered to be indispensable forms of transport for trade, tourism and everyday life even though they all have limited lives and they are using up irreplaceable fuel and materials. Cities provide a wide range of what the populace regard as indispensable services by using irreplaceable natural resources and producing pollution of land, sea, air and all organisms, including us. Most city dwellers can take shelter, food, water, electricity and sanitation for granted - for now. Avast range of electronic devices have increased the ability for social discourse, online purchase of goods and conduct of financial matters. iPods and the like are deemed by the young to be a necessary accessory. These electronic devices are also made of irreplaceable natural resources, use up energy and have limited lives. They are, like cars, airliners, container vessels, doomed species. Society will find it hard to cope with the withdrawal symptoms.
Society is addicted to all these facets of the technofix. They cannot imagine how they will make do without them! They hold the inventors in high esteem. They believe these inventions form the basis for the sustainable progress of our civilization. The masses are encouraged to believe this delusion by big business chasing the dollar and politicians promoting economic growth - regardless of the ecological cost or the deleterious consequences. Very few, even amongst scientists, understand that all science and technology has ever done is make use of some of the potential of the natural forces that have existed for eons. Technology has never created natural forces or natural states.
The media reinforces this common view as they highlight all signs of advances in knowledge by scientists and all innovative devices. They never mention the role of technology in using fossil fuels, so producing the emissions that have initiated irreversible climate change. The damage done to biodiversity by many technological systems does not make headlines. And toxic wastes produced by technology is harming land, sea, air and organisms, including humans.
The scientists who capture the headlines are those who appear to be advancing the frontiers of knowledge. The populace at large do not realize that the recent findings of scientists in many fields are really accentuating how little understanding we have of how nature has operated for eons. Technology has produced many innovative products by using natural forces in innovative ways, with unintended consequences.
Society is addicted to all these facets of the technofix. They cannot imagine how they will make do without them! They hold the inventors in high esteem. They believe these inventions form the basis for the sustainable progress of our civilization. The masses are encouraged to believe this delusion by big business chasing the dollar and politicians promoting economic growth - regardless of the ecological cost or the deleterious consequences. Very few, even amongst scientists, understand that all science and technology has ever done is make use of some of the potential of the natural forces that have existed for eons. Technology has never created natural forces or natural states.
The media reinforces this common view as they highlight all signs of advances in knowledge by scientists and all innovative devices. They never mention the role of technology in using fossil fuels, so producing the emissions that have initiated irreversible climate change. The damage done to biodiversity by many technological systems does not make headlines. And toxic wastes produced by technology is harming land, sea, air and organisms, including humans.
The scientists who capture the headlines are those who appear to be advancing the frontiers of knowledge. The populace at large do not realize that the recent findings of scientists in many fields are really accentuating how little understanding we have of how nature has operated for eons. Technology has produced many innovative products by using natural forces in innovative ways, with unintended consequences.
Information overload swamps understanding reality
The extremely rapid increase in information in recent times due to the phenomenal development of the ability electronics to store vast amounts of information in a digital form and process it at astounding speeds is overwhelming. A few companies, such as Google and Palantir, provide information processing and search services for the community at large as well as for government bodies.
Many people bless this easy access to information and associated visual and aural recordings for entertainment, social discourse, management and education purposes. Others are overwhelmed by the rapidity of the growth of virtual civilization as they find it hard to learn how to handle passwords and the many other novel essential issues to be crammed into the memory.
The media makes a lot of how scientists are advancing the frontiers of knowledge often with the help of the greatly improved ability to handle vast amounts of information, control major experiments and run complex mathematical models. There is no doubt that science and technology has underpinned the high standard of living that many people now enjoy.
However, society has a myopic view of the development of civilization. They welcome the advances without really understanding of how it has come about. The reality is that the systems of civilization irreversibly use up limited natural resources and produce irrevocable waste during their limited life time. Technology only makes use of natural forces to produce goods and services. It has never created any material even when it has enabled the production of many novel items that society happily use without understanding the basic physical principle limiting what civilization can deliver.
Ironically, the information revolution is not helping society to gain the wisdom of knowing that the operation of civilization is unsustainable. The vast amount and complexity of this information hides the simple physical principle that the demise of industrial civilization is certain within this century. And scientists are so preoccupied with their specialties that they do not provide the populace with understanding of the holistic malaise that is the operation of industrial civilization. The slow awakening to the damaging impact of using fossil fuels to supply energy is now awakening society to some extent. Irreversible rapid climate change is one unintended consequence of that lack of understanding.
Many people bless this easy access to information and associated visual and aural recordings for entertainment, social discourse, management and education purposes. Others are overwhelmed by the rapidity of the growth of virtual civilization as they find it hard to learn how to handle passwords and the many other novel essential issues to be crammed into the memory.
The media makes a lot of how scientists are advancing the frontiers of knowledge often with the help of the greatly improved ability to handle vast amounts of information, control major experiments and run complex mathematical models. There is no doubt that science and technology has underpinned the high standard of living that many people now enjoy.
However, society has a myopic view of the development of civilization. They welcome the advances without really understanding of how it has come about. The reality is that the systems of civilization irreversibly use up limited natural resources and produce irrevocable waste during their limited life time. Technology only makes use of natural forces to produce goods and services. It has never created any material even when it has enabled the production of many novel items that society happily use without understanding the basic physical principle limiting what civilization can deliver.
Ironically, the information revolution is not helping society to gain the wisdom of knowing that the operation of civilization is unsustainable. The vast amount and complexity of this information hides the simple physical principle that the demise of industrial civilization is certain within this century. And scientists are so preoccupied with their specialties that they do not provide the populace with understanding of the holistic malaise that is the operation of industrial civilization. The slow awakening to the damaging impact of using fossil fuels to supply energy is now awakening society to some extent. Irreversible rapid climate change is one unintended consequence of that lack of understanding.
Monday, April 15, 2013
Bitcoin games
With the chaos in the financial market causing so much concern, it is not surprising that there is a move to adopt a financial system that is not subject to the manipulation of governments and banks. Bitcoin is deemed by some to be the answer to the predicament posed by the growing booms and busts associated with global currencies.
However, the expectations of the proponents of bitcoin are not being realized. The volatility makes it almost useless while ,as may be expected, numerous rogues are scamming the system to gain unfair advantage of its lack of resilience.
It is amusing to contemplate the arrogance of those people who believe they can invent laws to handle intangible symbols of value in a sound systematic manner. They have this belief because they are used to complex natural systems that behave in a sound systematic way and they think that humans are clever enough to be able to emulate natural forces. The operation of organisms, including humans, provides them with examples of the wonders of nature. Scientists are renowned for advancing the frontiers of knowledge when what they are really doing is acknowledging that there is still a lot they do not know about how natural systems operate after eons of evolution. To top this lack of understanding off, there is widespread belief in seemingly informed forums in the ability of mathematics to describe natural operations. Mathematics is a system devised by humans to roughly describe some natural operations.
So the bitcoin concept is based on a foolish misunderstanding of the ability of to develop a complex resilient system rapidly from scratch. The current financial market has its inherent weaknesses but its development over centuries has resulted in a degree of responsiveness, acceptance and resilience that bitcoin cannot possibly attain, despite the efforts of its proponents.
Denis Frith
However, the expectations of the proponents of bitcoin are not being realized. The volatility makes it almost useless while ,as may be expected, numerous rogues are scamming the system to gain unfair advantage of its lack of resilience.
It is amusing to contemplate the arrogance of those people who believe they can invent laws to handle intangible symbols of value in a sound systematic manner. They have this belief because they are used to complex natural systems that behave in a sound systematic way and they think that humans are clever enough to be able to emulate natural forces. The operation of organisms, including humans, provides them with examples of the wonders of nature. Scientists are renowned for advancing the frontiers of knowledge when what they are really doing is acknowledging that there is still a lot they do not know about how natural systems operate after eons of evolution. To top this lack of understanding off, there is widespread belief in seemingly informed forums in the ability of mathematics to describe natural operations. Mathematics is a system devised by humans to roughly describe some natural operations.
So the bitcoin concept is based on a foolish misunderstanding of the ability of to develop a complex resilient system rapidly from scratch. The current financial market has its inherent weaknesses but its development over centuries has resulted in a degree of responsiveness, acceptance and resilience that bitcoin cannot possibly attain, despite the efforts of its proponents.
Denis Frith
Friday, March 22, 2013
drugs
The use of drugs to enhance the ability of sports persons is grabbing the headlines. These drugs influence the ability of sports people to win. Lance Armstrong grabbed the headlines for a while but many addictions, including alcohol, have embraced by those who could afford the legal and illegal bolsters to their capabilities.
These drugs are substances that affect bodily and mental operations of the consumer in a way that is generally understood. Most people accept that they can be useful with moderation. Ironically, most people have views on these drugs while they ignore drugs that do much more harm.
The infatuation with the drug that is money is a very common affliction that is spreading rapidly to the emerging middle class in developing countries. It entails the consumption of natural resources without paying the ecological cost, the divestment of natural material wealth. It invariably results in the production of material wastes that pollute land, sea, air and organisms, including us. Society hold the rich in high esteem even they are the ones that have the greatest leverage of money to devastate the environment which is our life support system.
The global financial crisis has reduced the savings of many people and the withdrawal symptoms are hitting hard.
These drugs are substances that affect bodily and mental operations of the consumer in a way that is generally understood. Most people accept that they can be useful with moderation. Ironically, most people have views on these drugs while they ignore drugs that do much more harm.
The infatuation with the drug that is money is a very common affliction that is spreading rapidly to the emerging middle class in developing countries. It entails the consumption of natural resources without paying the ecological cost, the divestment of natural material wealth. It invariably results in the production of material wastes that pollute land, sea, air and organisms, including us. Society hold the rich in high esteem even they are the ones that have the greatest leverage of money to devastate the environment which is our life support system.
The global financial crisis has reduced the savings of many people and the withdrawal symptoms are hitting hard.
Wednesday, March 20, 2013
Black Swan event
Nassim Taleb coined the term 'Back Swan event' to describe events that are unexpected by people. This definition needs to be qualified as to who finds the event to be unexpected. The earthquake that hit Japan a couple of years ago was not expected by the residents. It was a 'Black Swan' event as far as they were concerned. But it was not to the scientists who were aware of the fault lines in the region. They could not predict when an earthquake would occur but they knew one was likely.
Many well off people lost money in the GFC (global financial crisis) of 2008. It was a Black Swan event as far as they were concerned. But it was not to bankers and investors who understood that the boom in the financial market was likely to bust. They made money!
Society, particularly those in government and industry, believe in economic growth. They do not understand that all the technological systems that provide the goods and services society is addicted to using irreversibly use up the limited natural material capital. That view is a characteristic of Myopia. What is actually happening is the characteristic of the Real world. Climate change and the depletion of natural resources is a Real symptom of what Myopia has done wrong. Unfortunately, society will have cope with what they consider to be a Black Swan event because they have been educated to believe that Homo sapiens make sound decisions.
Many well off people lost money in the GFC (global financial crisis) of 2008. It was a Black Swan event as far as they were concerned. But it was not to bankers and investors who understood that the boom in the financial market was likely to bust. They made money!
Society, particularly those in government and industry, believe in economic growth. They do not understand that all the technological systems that provide the goods and services society is addicted to using irreversibly use up the limited natural material capital. That view is a characteristic of Myopia. What is actually happening is the characteristic of the Real world. Climate change and the depletion of natural resources is a Real symptom of what Myopia has done wrong. Unfortunately, society will have cope with what they consider to be a Black Swan event because they have been educated to believe that Homo sapiens make sound decisions.
Labels:
addiction,
Black Swan,
earthquake,
GFC,
Japan
Sunday, March 17, 2013
The Ten Laws of Ecolodynamics
The Ten Laws of Ecolodynamics
I assert that
The operations of materialistic
civilization entail the irreversible consumption of limited irreplaceable
natural material resource capital, an unsustainable bio-geo-chemical-physical process
sums up what is happening to the infrastructure of our
civilization, Tityas, and its life-support eco systems in Gaia. It is a novel assertion although
it is based on sound scientific principles backed by irrefutable arguments and experiential evidence. It
is not yet a theorem (established principle) but this is because of lack of
understanding of how natural physical forces always control what happens in
operations involving materials. It is not even widely recognized in scientific circles. In fact there
are a number of seemingly authoritative people who attempt to repudiate it. The
purpose of this essay is to provide reasoned argument, for consideration by skeptics, backing this and the other assertions . This one can be regarded as
the First Law of Ecolodynamics as it relates to the dynamics of the operation of complex technological and ecological systems.
1. Consumption of natural material capital
The well-known Laws of Thermodynamics embrace some aspects of what happens in natural and industrial materialistic (physical) processes. They originally covered only energy flows (fluxes) but their applicability has been expanded in some scientific considerations to cover the tendency of systems and organisms to go from order to disorder as the processes seek equilibrium with the surroundings during development. The prior operation leading to order and the consequent potential (to subsequently go to disorder) is not embraced by the Second Law of Thermodynamics even though there are many well-known examples of that up and down process. The growth, maturity and then senescence of the human body is an example.This definition would clarify the circumstances where the term ‘negentropy’ is used by some authorities. The tendency for a system made of materials to increase in order, through the input of materials, some of which supply energy, from the surroundings, should be regarded according to Georgescu-Roegen as the Fourth Law of Thermodynamics. It would be more appropriate to call it the Second Law of Mass dynamics where the First Law is the well known conservation of mass.
A corollary to the First Law is:
Technological systems introduced
into civilization often bring into play physical and chemical forces in an
innovative and irreversible manner that in many cases have had unintended deleterious
and irreversible consequences.
This is deemed here to be the Second Law. The prime example
of the application of the Second Law is the contribution of the emissions from
fossil fuel combustion to the rapid climate change and ocean acidification.
Seven others that are being seriously examined by environmentalists are the
ozone layer, freshwater use, movement of nitrogen and phosphorus, land use for
crops, aerosols (haze and particulates), chemical pollution
Another corollary to
the assertion (potential theorem) above is
The components and structures of
materialistic civilization have limited lives as they are continually subject
to natural destructive forces such as wind, rain and friction. Their existence
constitutes a commitment to consume natural material capital for their
operation and maintenance as long as that is possible. This also is an
unsustainable physical process.
This can be considered to be the Third Law of Ecolodynamics.
What will inevitably happen to the multitude of global cities and associated
infrastructure is one issue impacted by the Third Law.
A Fourth Law is that:
Human beings have a natural
capability to reproduce. This reproduction capability, as with all organisms,
has evolved. However, in recent times human reproduction has become
unsustainably parasitic because of the predatory usage of natural resources and
associated devastation of the environment coupled with a fallacious belief in the
supremacy of the human race.
Population growth is causing concern in many quarters even
as it is stimulated by economic growth and lack of understanding of the
long-term consequences.
Another corollary (potential theorem) is
Natural laws have always
determined (and will continue to do so)
what tangible materialistic operations in nature and in the systems of
civilization are possible. Intangible information can only activate some of
these potential tangible operations.
This, the Fifth Law, identifies the role played by
information in activating operations. It is analogous to the brain sending
messages to parts in the body. An extension of that Law is
The decisions made by humans
about materialistic operations are constrained within the limits imposed by the
tools and services provided by the systems and infrastructure of materialistic civilization.
The achievements of the decision-making process will decline as the potential
capabilities of materialistic civilization declines.
This can be considered to be the Sixth Law of Ecolodynamics.
These decisions are largely based on financial market forces for now because
the physical limitations have yet to strike home. The elite of society will
probably find it harder to cope with the consequences of the Sixth Law than the
disadvantaged global masses. The elite are currently able to take the goods and
services provided by the infrastructure for granted. The First, Second and
Third Laws will ensure that all and sundry, including the elite, will have to
power down.
The Seventh Law of Ecolodynamics contributes to the list of
laws governing the both the constructive and destructive operation of
civilization.
The human race has been endowed
through evolution with unique, decision-making
capabilities lacking in sound self-organizing and self-regulating
attributes
There is nothing novel in that assertion but it needs to be
taken into account in any holistic examination of what is happening and why. The
Fifth, Sixth and Seventh Laws are on the other side of the balance sheet to the
first four. They currently govern the operation of society as the first four
laws are not yet common knowledge but that lack of understanding will diminish
as impact of the stark, physical reality grows.
A corollary is:
Circumstances have enabled a
proportion of society to be predators who prey on the masses as well as the eco
systems. Their operations are akin to a
cancer in society and act as an ecological parasite.
This Eighth Law identifies one of the holistic factors
having a major impact on what is happening and why. Past colonial powers have
been usurped in recent times by military and financial hegemony but the degree
of predation has not been markedly reduced. Treatment of this cancer requires
the emergence of a degree of wisdom that appears to be foreign to human
nurture.
This lack of wisdom is illustrated by the impact of the
Ninth Law
Many of the activities initiated
by humans have had unintended consequences due to lack of understanding of how
some of the immutable natural laws influence materialistic operations
The use of fossil fuels to provide energy has had the
unintended consequence of causing rapid climate change. That is but one example
of the impact of the Ninth Law due to lack of knowledge. Another is the
pollution of land, sea, air and all organisms be the material wastes produced
by the operation of the systems of civilization
Finally, the Tenth Law states a simple physical reality that
constrains what can happen
Governments, economists, media commentators espouse the
virtues of growth, a process that is unsustainable for simple reasons that seem
to be beyond their comprehension.
Continuing growth of the materialistic systems comprising Tityas is not
possible for simple, physical reasons (First and Third Laws). Continuing
population growth, despite reproduction, is also not possible for ecological
and social reasons (Fourth Law). Continuing intangible monetary growth is
possible but not the associated value of the money. Information growth will
continue as the electronic devices profligate – for a while. But the wisdom
content will not as society strives to cope with what has gone wrong.
The Laws cover the constructive and destructive influences
on the operation of civilization. The changing balance of these forces
represents a tug-o-war that the tangible destructive forces will eventually
win. Materialistic civilization is entering its senescence while its
inhabitants, human and others, are being forced to power down with the
disadvantaged leading the way.
Denis Frith
Subscribe to:
Posts (Atom)