Adonis Diaries

Archive for January 20th, 2010

Circulating premium Gold-paper currencies (Jan. 24, 2010)

            Classical economists would like you to believe that the crux to overcoming the latest global financial crash is to restitute “confidence” in the monetary system.  If that is the case then let us start by issuing worthy paper currencies.  I suggest printing a category of premium “gold paper currencies” that can be exchanged in any State without undergoing any devaluation because of the intrinsic value of gold it contains.

In these uncertain financial crisis and economical deflation I suggest a psychological incentive for people to recover some sense of value to their currencies.  My idea is to issue hard currencies that are an alloy containing the quantity of gold commensurate to the large denominations.  This currency would be almost as thin as paper money and could not be forged unless the amount of gold is the same as the officially issued currencies. It should be feasible because gold can be made as thin as needed; then if we find a cheap metal or plastic that can add resistance and flexibility to the currency to be folded and handled as paper money then everybody would be satisfied.

            At first, the gold paper-like money could be distributed at a rate of say 1% increase over its real value to recover the upfront expenses in addition to the increase in market value of gold, averaged once a week; these extra expenses would not discourage the use of paper money for those who could not afford the extra cost of gold currencies.  The higher denomination currencies would be larger to keep the same thinness as the other smaller denominations. 

As the value of gold would certainly keep increasing then the government would at interval retrieve the older currencies from the market and replace them, at no further extra cost, with smaller size currencies containing the market value of the amount of gold in the alloy; this is logical because the gold-paper currencies would require less gold as its value increases.  Travelers could then exchange their State own gold-paper money abroad and register them at any bank for Interpol investigations in case of thefts and get exactly the same money value of the respective States. Obviously, all governments that signed in to this system would have to submit to international control when issuing gold-paper money for credibility and quality reasons.

            I believe that with real gold-paper money then the businesses of currency speculations and rate of exchanges should wane and quickly disappear.  Sovereign funds and Central Banks would accumulate gold to satisfy circulation among the favored clients.  The governments would quickly learn to issue enough gold-paper currency to satisfy internal commerce. The superpowers and regional powers would exercise political and military “incentives” on weaker and unstable States to issue more gold-paper currency than needed for inner commerce but then they would have to deliver real gold and good value products to retrieve the surpluses.  The US Administrations do not have real value money or real value economy to horde gold and will not be able to do so for many decades to come; only China, India and the rich oil producing States with small populations would be the major players in currency trade of gold-paper money.

            There are several policies that governments would revisit to manage this new system.  Governments might issues a composite weight of the amount of gold-paper and regular paper money that should satisfy internal commerce.  Either the gold-paper money would concentrate in the hands of the rich and thus reducing commerce to regular money with industries specialized in high quality and luxury products for the rich and industries focusing on lower quality and basic products for the masses; or the little people would not desist from the gold-paper and use them as personal saving account in their homes and thus deflation would hit the economy due to the lack of currency circulation.  Consequently, governments would have choices to either limit the amount of gold-paper in circulation to encourage circulation of regular traditional money or eliminate regular paper currencies to force the masses into liberating their horded gold-paper. 

The same pitfalls and recurrences of the present monetary system would be exhibited but the remedies would be more straightforward to comprehend by the common people. Furthermore, an interesting phenomenon will emerge: cultures where mostly little people horde the gold-papers and cultures where gold-papers are concentrated in the class of the rich.  Well, if there is civilization clashes then this division between the two types of cultures would set the foundations for a new sociology science where the manipulation of hard money is the first principle.

            This system would require many fine tuning but the advantages must far exceed the disadvantages for smaller and weaker States.  Countries with real value-added economies would not be affected by any mischievous financial embezzlement schemes in destabilizing their financial status: the middle classes would have re-learned the value of hard money and desist from speculative schemes for some times.  This re-learning process of the value of real hard money is the fundamental benefit of the new system so that financial history would repeat its cycle of development into this century.  In any case a genuine International Monetary Control and Management Fund would be instituted to focus on the circulation of money within and among States and help in the synchronization of real commerce.

            The crux of this gold-paper currency system is to stabilize growth to a sustainable level for human kind.  Since gold is limited on Earth and its production has reached a limit then wild GNP rate of increases would slow down; redundant and irrelevant consumer products would make room for basic products essentials for the survival of mankind.  The new economical strategies would focus on cutting cost, cutting waste, re-cycling, and vigorously researching for substitute renewable energies for the benefit of all States.

Note: I hope Lebanon will be the first State to initiate gold paper currencies: Lebanon has a sound Central bank with plenty of gold in reserve.  Lebanon will get an unexpected boost as an inventive State.

What did come first? (Jan. 24, 2010)

There is this hellish cycle: a chicken lays an egg to generate chicken; and the cycle continues.  What comes first, nature or nurture…? Human brain is not satisfied with this obvious mechanism: our brain wants to know the origin of the process.  For example, what comes first, the chicken or the egg? Then what? Would this cycle cease to exist if we “resolve” the origin problem? Would any interpretation or conjecture make a difference?

Now suppose we take a different perspective and instead of considering the source we tackle the problem as a medium issue? Let us declare: the egg uses the chicken as a mean to generate another egg.  Would that satisfy human curiosity and drop the origin “idée-fix”?  It makes plenty of sense: an egg is an egg and uses many different mediums (name with me the varieties of fowls that lay eggs; hell, snakes lay eggs!) Sure, the “essence” or nature of the egg is different when hatched but the process is fundamentally the same. Eggs can be hatched without fowls: industrial processes do it all the time. An egg can be altered genetically and generate a diversity of fowls.

Can we claim that it is the process that counts? It appears that the chicken must have come first:  There are more essential components in a chicken that an egg lacks.

Still, human mind would counter: “who created the egg?” or the first kind of egg in the first place? Now we are back to “origins” and creators.  What if it is not the egg that count during the process or mechanism that generated an egg?  

Would the purpose of sciences be based on the study, analysis, and invention of processes that optimize the production of particular products that human need?  Maybe not to survive as mankind, but indeed to live in luxury and opulence while living?

By analogy to chicken and egg cycle, let us consider the cycle of laws and facts (data).  Let us bypass the previous lengthy reasoning and tackle the problematic head on. Let me state: “facts use laws to produce facts.”  There are varieties of natural and social laws that generate facts for the brain to perceive. Actually, the brain is the machine that set the foundations for generating laws in order to perceive facts.

The brain is the eminent scientist: no law can be discovered that the brain had not the potential to recognize or manufacture. The Erica syndrome is common among scientists: a law was in hiding to taunt the hard working and focused scientist to discover it, by using many viewing perspectives and possibilities.

The brain has the scientific mechanism in place to discovering whatever laws or “truths” we are willing to uncover.  We use reasoning methods such as deductive, inductive, and abductive methods (you may read my post “Abduction field”); we use all kinds of plausible logic systems to structure our processes; we have various senses to extend our perception into “seeing” the facts.

Actually vision and hearing go through many filters (processes) in order to be perceived by the brain: they are more complex and richer impressions (distorted perceptions) than smell, taste or touch. All we have to do is to take seriously the “rhetorical” mechanisms (analogy, association…) that the brain is excellent at processing in order to offer us the means to discoveries.

It is time that scientists boldly proclaim that their Ericas were pretty much within the common realm of capabilities of every normal man, if he had the passion and endurance to go the extra mile in whatever could interest his “nature”.

The “truth” is this: the universe is the facts and the brain the laws.  Our brain is just the medium to perceive models of the real universe. If we manage to preserve an adult human brain from deterioration, then the brain will “sees” universes and it will create new facts to amuse and exercise its “curiosity”.  Preserve a new born brain and it will “see” the same incoherent universe (whatever this thing might be) in vivid colors and rich sounds that adult brains have blunted for survival needs: the brain needs outside impressions to form and become an efficient processors of impressions to perceive coherent worlds.

Note: I tend to agree with Umberto Eco that books generate books.  Authors are medium in that process. An author does not have to have read plenty of books to emulate a notion, an idea, a concept, or a process that was not already published.  The human brain is assimilating world data and world knowledge and many “coincidences” are very much “reasonably” plausible. (You may read my post “how the mind acquires knowledge”)

Note 2:  You may read the follow up article

“Abduction field” or a priori “stealing” program; (Jan. 23, 2010)

I am coining the term “abduction field” to describe and explain how people manage to function in their daily routine. People move and act as if executing an “a priori program”: they seem to mentally “pick up” objects and event as they go about. People seem to know in advance what they want to do.  Hazards are just obstacles that the “abduction field” in the brain failed to adjust in a timely manner to redesign the plan.  It might be a good idea to explain what abduction reasoning means before I venture into this topic.

Human mind uses many reasoning methods such as deduction, induction, and abduction. Deductive reasoning is a process that starts from a set of basic propositions (proved or considered the kind of non provable truths) and then prove the next propositions based on the previous set.  In general, a law, natural or social, or a theorem in mathematics guides the demonstration.  Practically, it is like using a function to find the appropriate pieces of data or information that are available on a well drawn path or trend.

Inductive reasoning is a process of selecting samples from a phenomenon or a basket of items and then studying the samples.  If the items are the “same” in each sample then the individual is prone to recognize that a law is guiding that phenomenon. The sample taker is ready to form a law, though he knows that logically, if in the future one sample is wrong, then the law is logically invalid. In the mean time, the sample taker can resume his life as if the law is valid, as long as it is working (more frequently than not).

We call a “paradigm shift” the period when accumulated samples or observations are showing to be “false” and that the law has to be dropped for a better performing law.  The process needs time before the scientific community reaches a consensus for a change in venue, simply because it was comfortable using well-known mental structures.  The paradigm shift period is shortened if a valid alternative is demonstrated to work far better, not just slightly better, than the previous theory.

Abduction reasoning is an “intuitive” process such as having a few facts or data and we manage to find a connection among these facts.  In a way, we got an idea that the facts follow a definite trend.  For example, the astronomer and mathematician Kepler started with the notion that planets move in circles around the sun; his observations of Mars detected two positions that didn’t coincide with any circle. Kepler selected another trajectory among those mathematically described in geometry that might be appropriate.  The elliptical shape accounted for the two observed positions of Mars. Kepler got convinced that planet trajectories are elliptical, but he needed to convince the “scientific community”. Thus, Kepler worked for many years waiting for Mars to cross different positions that he knew would inevitably be on the ellipse anyway.

Most scientific discoveries are fundamentally of the abduction kind reasoning. Usually, in order to describe the discovery process, scientists prefer to introduce as many deductive or inductive reasoning in the explanation so as to avoid sounding that the discovery was a pure fluke of intuition and not hard mental work.

People use the abduction reasoning technique as routine behavior to decide, move, or act. People have implicitly a priori (idea, plan, concept, hypothesis, path, or line of actions) before they get moving.  People move as if they already know what will happen next; they adjust their plan as frequently as obstacles occur.  Thus, abduction reasoning is the rule instead of the exception in most commonly used strategies.

A good way to explaining the abduction field theory is by observing someone who is familiar with a particular supermarket.  The customer moves around and pick up items in a determined manner. A few times, the customer stops and study particular varieties of the “same” items for prices, weight and chemical contents.  The customer might look as if he just woke up or is disoriented, but his action is kind of planned: he behaves pretty “sober” in his decisions.

People move and act within abduction fields of reasoning, otherwise, how can we imagine extending a step forward without advanced planning? The initial schemas of abduction fields are not that well oiled, and many errors and pitfalls occur during the abduction plans.  By the by, the human brain gets adjusted and trained to secure better fit in forecasting next steps and moves.

Highly intelligent people differ from normal intelligence in that, more frequently than not, they consciously apply deductive and inductive reasoning on their initiated abduction fields.  The implicit purpose is to optimize the “abductive field” performance by supporting it with better formal or coded laws among the working laws.

With conscious training and application of the other two reasoning methods, the individual acquire higher intelligence reasoning choices or diversified perspectives to viewing and resolving a problem.

Brainwashing is an application phenomenon of abduction field distortion.  Brainwashing is not so much a process of feeding misinformation or disinformation as in ideologically and dogmatic State-controlled government.  Brainwashing is the process of altering the abduction field so that an individual lacks the objective flexibility to pick up the appropriate objects, tools, or events to place on his “abduction path”:  The individual is picking what is available on his path, including ready-made terminology and definitions, and not what his brain was more likely to select in normal conditions.

When we say “this guy is a one track mind or one-dimensional mind” then we basically means that his abduction field has been restricted by habit: his brain ended up lacking the potential flexibility and versatility to train and develop his abduction field reasoning.

Note: I am under the impression that Spinoza had the same philosophical theory when he wrote: “The movements of our investigative spirit obey real laws”.  If we think well then we are bound to think according to rules that link things one to another.  Kant adopted this reasoning and offered the “a priori” dispositions of the mind.  I think Einstein misinterpreted Kant’s “a priori proposal” because Einstein was engrossed with the deductive processes in resolving the restricted relativity theory.  Einstein was not concerned of how people behave in their daily routines.

Note 1: The abduction field explains the contradictory feeling we have that our actions are determined frequently or following a free-will course of action, occasionally.  For example, if we consciously start with a thief program that is pre-programmed to suit what we want today, we tend to steal objects, events, opportunities on our way.  Otherwise, the default value is the “habit thief program”, and we feel that the day is pretty much determined.

Note 2: The individual “I” is spread all over our organism, physical, genetics, and mental (brain). Decisions are delayed until all the different varieties of “I” reach a working consensus, or a particular I override the other I, depending on which thief program we launched at the start of the day.




January 2010

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