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Tag Archives: Financial Thermodynamics
God’s Utility Function
Lets Make a Mess Life’s purpose is entropy maximisation. Here is a video of a geek (who has successfully applied the aforementioned principle to his own face) explaining extremely clearly why this is so.
Financial Equilibrium, Regime Change and Unreliable Money
In the previous post I noted that the 40 year high in market serial correlation implies that we are approaching the financial of equivalent of thermodynamic equilibrium. Negative serial correlation implies that todays returns tend to be the opposite of … Continue reading
S^4: Correlation and Heat Death, Part One
In order to bring this series of posts on entropy and finance to a temporary close I refer you to this article at FT Alphaville. The article quotes a Chris Cole from Artemis Capital Management: “All we have left to … Continue reading
Posted in Financial Thermodynamics
Tagged Economics, Financial Thermodynamics, Reality
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Bring the Noise!
Ah, perfect timing! An outfit called Nanex have created this chart. They say:
The Red Shift of the Price Level
In the prior post on financial entropy I outlined the source of macroscopic information loss in our financial system and how it arises from the creation of informationally insensitive money (bank debt) from a wide range of informationally sensitive debts … Continue reading
Posted in Financial Thermodynamics, Society
Tagged Financial Thermodynamics, History, Society
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S^3: Work, Inflation and Information
Getting to the Point This post now introduces our financial system in terms of the entropic, thermodynamic basis outlined for the underlying civilisation in prior posts and sets out a hopefully fundamental model to understand the links between our financial … Continue reading
S^2:Potential
Recap In the previous post on entropy(S^1:Expansion), I proposed the following simple model
Fractal Markets Visualised
Steve Keen, bless his soul, has an absolutely fantastic presentation on fractal markets, chaos and equilibrium (swear word as far as Steve is concerned), which I have linked below. WARNING – THIS WILL
S^1 : Expansion
Bullshit Alert As promised here I want to visit this issue of how entropy applies in our socio-economic system. Doing so is going to be tricky, because much bullshit has been written on this topic
S
Entropy, S This post is about entropy, a subject that has a bad reputation amongst those who frequent online forums since it is often the subject of long, tedious and misinformed debate. That said, the notion of entropy is directly … Continue reading
