Chaos and Economics
Published in 2000; updated on June 27 2019
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Chaos Quotes
Johann Wolfgang von Goethe (1749-1832): "Conversations of Goethe with Eckermann and Soret;" Thursday, February 24, 1831.
"The difficulty in nature, is to see the law where it is concealed from us, and not to be misled by phenomena which contradict our senses."
●
In Lanker, B. (1989) "I Dream a World: Portraits of Black Women Who Changed America." Stewart, Tabori Chang, NY, p. 164.
Septima Clark: "I have great belief in the fact that whenever there is chaos, it creates wonderful thinking. I consider chaos a gift."
My Fragments - From my personal point of view
For the complete list, please see Tamari .
MF17: Our words are the clothes for our soul and our clothes are the words of our body. Added 10 August 2010.
MF21: Give me a nail and I will hang my God. (In the spirit of Archimedes.) Added 1 August 2013.
MF22: When the money illusion stops, the Gresham Law starts to operate. Added 28 July 2014.
MF30: Chaos is order mixed up in time machine. Added 27 March 2017.
To those interested in this website:
This website is directed at people who are interested in dynamic systems in everyday life, especially with regard to economics. Most of the material written in this website is innovative and original. The approach here is entirely personal and NOT academic; you are invited to read it and judge for yourselves.
Many of you will understand a small fraction of the website's content, and a few will understand a great deal, but the website is meant to interest a wide range of people. Those lacking the relevant education will get something out of the photos and graphs that speak for themselves. Those with the relevant education will enjoy the content, which is straightforward and yet quite abstract and challenging.
For example, the Tamari Attractor is a system of equations that, the author believes, describes the economy of every country. It is possible, using this system of equations, to analyze each nation's own specific parameters and predict its economy, and compare one state’s economy to another’s on the same basis.
The website is written in a condensed manner, introducing only what is essential. Readers who wish to delve deeper into these subjects may refer to the many relevant books and links presented in the website, or use Google, Britannica or Wikipedia.
The website consists of ten pages. The first page (home) is introductory; the last page introduces the author. The remaining eight pages deal with various subjects in the two categories of chaos and economics. Each page functions as a separate, stand-alone unit, and presents the author's contribution to the subject. Since the content of this website is basically theoretical, it has been made as simple and user-friendly as possible.
The eight pages:
Chaos
The Attractors page
shows the main attractors in chaos literature (from an empirical point of view),
including the economic attractor ; Tamari attractor.
The Dreams page presents the human body, the head and brain, and also discusses dreams from the fractalization point of view.
The Metaphors page shows the importance of mental pictures in creating new ideas.
The Patterns
page shows patterns and phenomena of fractals in nature.
Economics:
The Ecometry page presents the writings of Ben Tamari, and his method of analyzing and forecasting countries’ economies.
The Cycles page relates to economic/trade/business cycles, through only empiric findings.
The Economic Simulator enables the study of a country’s economy using the
Eco software program.
The Stocks page introduces speculative cycles, which are empirically present in stock markets.
Introduction
Chaos theory is a popular name for the theory of Dynamical Systems (DS), mainly in non-linear systems. (Scientifically, a chaotic DS is characterized by sensitivity to initial conditions. This sensitivity allows only for short-term forecasts and no more – such as predicting the weather, even though we are dealing here with deterministic systems that are describable through mathematical equations. As such, they should appear as orderly systems but actually appear to lack order; i.e., as being chaotic.) The theory covers many aspects of the life of DSs. They all share the same characteristics of being born, living and dying.
Note 1, 31 August 2018 Note on Democracy and Globalization
Democracy and Globalization:
There is a direct link between democracy and globalization – and it’s a
favorable one. The problem lies in democracy’s slow reaction to the side effects
of globalization – mainly concerning the distribution of national wealth. Every
small instance of leverage grows larger with globalization, i.e., globalization
magnifies the leverage; thereby disrupting the distribution of national wealth.
Money (like water) naturally wanders from a place where it has low value to a
place where it has high value (whereas gravity causes water to flow from a high
location to a low location). The medicine in either case is tax-ology/terrace-ology
– the taxation of surplus leverage (similar to terraces that level out
the ground and mitigate the effect of gravity). Unfortunately, democracy is not
immune to lobbyism; removing lobbyism from democracy would immunize the state
against globalization’s negative influence on democracy.
https://www.haaretz.co.il/magazine/the-edge/.premium-1.6382882
Note 2, 31 August 2018 Note on Physics and Economics
The inherent possibility of choice is the common denominator between economics
and physics (quantum theory). According to Neil Turok, “Everything, every
particle, is exploring all of its possible positions all the time.”
“Choice” is the (theoretical) bridge between economics and physics, whereas
economics is physics with pricing or, alternatively, physics is economics
without pricing. “Pricing” is what enables the choice of each particle and each
person. We know
how
the individual “prices” his choices, and we don’t yet understand how the
particle does it.
human reproduction from a bird’s-eye view in 50 minutes:
N
Note 3, 27 June 2019
Note on Virtual Money, Currency and Fraud
1.
Money [in its modern form]
is a deed of ownership [according to its denomination] over economic output; a
kind of floating registry (if chess simulates war, then the game of musical
chairs simulates the market). Just as no one [who’s not a crook] would dare
establish an alternate land registry to the [land and apartment registration]
authorities, coining alternate money as a virtual currency that does not belong
to the authorities is an act of fraud.
2.
Currencies like Libra
and Bitcoin are not actually money but coupons [or chips]. Only the government
has the right and duty to issue currency that is called, and used as, “legal
tender” in each sovereign nation. The entire globe is covered with currencies
[that are legal tender in their countries] according to the nations issuing them
(up until a few decades ago, counterfeiting currency was punishable by death;
today most countries settle for incarceration).
3.
Just like a casino
[which issues chips], a community [which issues coupons], a supermarket [which
issues stored-value cards] or various e-commerce sites [which issue virtual
“currency” of different types], all of this “illegal tender” is profitable and
will continue to exist as long as the customers – that’s us – are losing money.
4.
Governments don’t have
alternates – not for their flags, their lands, their laws or their currencies –
unless you’re a pirate and have conquered part of the kingdom at your disposal
[e.g., ISIS – what radical Islam did to Syria and Iraq, the coiners of virtual
currency are doing to the world’s central banks…and those being robbed just keep
on sleeping].
5.
Electronic money: Money
[legal tender] is as much a mainstay of human society and culture as flags,
laws, languages and currencies. The medium used as money has gone through many
incarnations [corresponding with the evolution of writing, and not
coincidentally] – products such as livestock, animal skins, copper grains,
silver and gold, metal coins and paper – and now the time has arrived for money
ownership to be electronically identified and marked. Some e-money is legal
tender [like in a bank account] and some e-money is chips [defined as property
by the tax authorities], the presentation of which for commercial trade
purposes—as if they were legal tender—is pure fraud, even though legislative
bodies have not yet pronounced it so.
6.
“It [Facebook] received a
tool for printing money” (https://www.themarker.com/technation/.premium-1.7406334).
Wrong – it received a tool for defrauding its customers.
Books
Auyang, T.S. (1998). "Foundations of Complex-System Theories in Economics, Evolutionary Biology, and Statistical Physics." Cambridge: Cambridge University Press.
Bak, P. (1997). "How Nature Works: The science of self-organized criticality." Cambridge: Cambridge University Press, p. 31.
Banks, J., Dragan V. and Jones A. (2003). "Chaos: A Mathematical Introduction." Cambridge: Cambridge University Press.
Burger, E.B. and Starbird M. (2005). "Coincidences, Chaos, and All That Math Jazz." New York: W.W. Norton Company, .
Chapman, R. and J.C. Sprott (2005). "Images of a Complex World." Including CD, World Scientific.
Capra, F. (1996). "The Web of Life." New York: Anchor Books.
Ching-Yao, Hsieh and Ye Meng-Hua (1991). "Economics, Philosophy and Physics." New York: ME Sharpe.
Darvas, G. (2007). "Symmetry." Basel: Birkhouser.
Edwin, A.A. (1884). "Flatland." Princeton: Princeton University Press 1991.
Feder, J. (1988). "Fractals." New York: Plenum Press.
Frame, and Mandelbrot, Eds. (2002). "Fractals, Graphics, and Mathematics Education." The Mathematical Association of America.
Gleick, J. (1987). "CHAOS - Making a New Science." New York: Viking.
Gleick, and Porter (1990). "Nature's Chaos." New York: Little, Brown and Company.
Hall, N. (Ed.) (1991). "Exploring CHAOS." New York: W.W. Norton and Company.
Hilborn, R.C. (1994). "Chaos and Nonlinear Dynamics." Oxford: Oxford University Press.
Holden, A.V. (Ed.) (1986). "Chaos." Princeton: Princeton University Press.
Kauffman, S.A. (1993). "The Origins Of Order." Oxford: Oxford University Press.
Kelsey, D. (1988). "The Economics of Chaos Or the Chaos of Economics." Oxford University Press: Oxford Economic Papers 40.
Lesmoir-Gordon, N. (2004). "The Colours of Infinity: The Beauty, The Power and the Sense of Fractals." Inc. CD: Clear Books.
Levin J. (2002). "How The Universe Got Its Spots." Anchor Books New York.
Lorenz, Edward N. (1993). "The Essence of Chaos." Washington DC: University of Washington Press.
McCouley, J.L. (1993). "Chaos, Dynamics, and Fractals." Cambridge: Cambridge University Press.
Marks-Tarlow, Terry (2008). " Psyche's Veil: Psychotherapy, fractals and complexity." London: Routledge.
Mira, C. (1987). "Chaotic Dynamics." World Scientific.
Mirowski, P. (1989). "More Heat Than Light: Economics as Social Physics, Physics as Nature's Economics." Cambridge: Cambridge University Press.
Moon, F.C. (1987). "Chaotic Vibrations." New York: John Wiley & Sons.
N Orrell, D. (2018) "Quantum Economics: The New
Science of Money." Icon Books Ltd. Kindle Edition.
[
Quantum vs Relativity approach in Economics, you can compare this book to Ben Tamari 1997
"Conservation and Symmetry Laws and Stabilization Programs in Economics."
]
Ott, E. (1993). "Chaos in Dynamical Systems." Cambridge: Cambridge University Press.
Pickover, C.A. (1990). "Computers, Pattern, Chaos and Beauty." New York: St. Martin's Press.
Pickover, C.A. (1999). "Surfing Through Hyperspace." Oxford: Oxford University Press.
Prigogine, I. (1980). "From Being to Becoming." New York: W. H. Freeman and Company.
Reichl, L.E. (1992). "The Transition to Chaos." New York: Springer-Verlag.
Rucker, R. (1977). "Geometry, Relativity and the Fourth Dimension." Mineola: Dover.
Sardar, Z. and I. Abrams (1998). "Introducing Chaos." Cambridge: Icon Books.
Schroeder, M. (1991). "Fractals, Chaos, Power Laws: Minutes from an Infinite Paradise." New York: W. H. Freeman and Company.
Scott, A. C. (2007). "The Nonlinear Universe: Chaos, Emergence, Life." Springer-Verlag.
Seydel, R. (1988). "From Equilibrium To Chaos." New York: Elsevier.
Shaw, W.T. (2006). "Complex Analysis with MATHEMATICA®." Cambridge: Cambridge University Press.
Sornette, D. (2006). "Critical Phenomena in Natural Sciences." 2nd ed., Springer.
Tvede, L. (2006). "Business Cycles." 3rd ed. Chichester: John Wiley & Sons, Ltd.
Ward, M. (2001). "Universality, The Underlying Theory behind Life, the Universality and Everything." London: MacMillan.
Weeks, J.R. (2002). "The Shape of Space." 2nd ed. New York: Marcel Dekker, Inc.
Wegner, T. and B. Tyler (1993). "Fractal Creations." 2nd ed, Corte Madera: Waite Group Press.
Wiener, N. (1954). " The Human Use of Human Beings." Boston: Da Capo Press.
Zaslavsky, G.M. (1985). "Chaos in Dynamic Systems." Translated from Russian by V.I. Kisin, New York: Harwood AP.
Links
Index sites
http://www.fractal.org/Bewustzijns-Besturings-Model/Fractal-Links.htm
http://mathres.kevius.com/art.html
http://mathforum.org/library/view/62158.html
Learning
http://en.wikipedia.org/wiki/Fractals
http://en.wikipedia.org/wiki/Chaos_theory
http://classes.yale.edu/fractals/
http://www.chaoscope.org/links.htm
http://www.fractalfoundation.org
http://math.bu.edu/DYSYS/dysys.html
http://math.rice.edu/~lanius/frac/
http://ww2.kqed.org/mindshift/2014/01/09/10-innovative-ways-to-bring-stem-to-schools/
Mathematics
http://hypertextbook.com/chaos/
http://klein.math.okstate.edu/IndrasPearls/
Science
www.around.com/chaos.html (Gleick)
http://www.gutenberg.org/files/20417/20417-h/20417-h.htm
www.math.uwaterloo.ca~wgilbert/FractalGallery/FractalGallery.html
http://mathworld.wolfram.com/Chaos.html (Wolfram)
http://nlds.sdsu.edu/index.html#restoration
http://users.math.yale.edu/mandelbrot/
