Monday, December 08, 2008

Federal Reserve and Monetary Policy: Made in the US of A.


This is a future as projected by current events.

The Unknown Rebel — This famous photo, taken on 5 June 1989 by photographer Jeff Widener, depicts an unknown man attempting to halt the PLA's advancing tanks near Tiananmen Square.

This event can also become a United States of America event. It does not matter if a country becomes a dictatorship from the “Socialist/Communist” or the “Nazi Ideology and Fascist Dogma” point of view. A dictatorship is a dictatorship. The US of A’s identity is becoming that of a low wage, third world country.

The way Wall Street has taken over the argument in the demised of GM, Ford and Chrysler insures the rich will get their money by robbing the poor. There is no middle class in these United States of America. Wall Street has this my-optic view of China’s role in the US of A: “They are the Calvary that would be riding to the rescue”. The US of A’s vanishing of the middle class is the result of Wall Street’s greed.

Where’s the Math???

It starts with convolution of two probability densities. (See Convolution of 2 Densities) If the peaks of the densities represent the most likely-hood of wages in a sector then the convolution shows that one wage is suppressed while the other wage is elevated. India can be an example of this result. In some sectors, there is a high turn over in the labor force. If the wage is not allowed to change, as in the case in China, then there is no benefit. I do not believe a DAMM thing China’s Communist Government says. A command economy is a command economy. The US of A’s economy is becoming a command economy.

A Rational Expectationist would say “Don’t Worry, Be Happy”!! However, I am not a Rational Expectationist. I know there is a clash of government policies and one can explain this with a Bose-Einstein type argument. Remember, Risk to Reward is a Groupoid and this has a higher order Lie algebra on to itself. This algebra allows time to be a fundamental variable. How markets change is a question of policy(ies).

If one does not understand how to make a Bose-Einstein type argument of this problem then one can start by studying Markov Chains and hidden Markov chains. Study neural nets to get a basic idea how to represent certain “physics” terms into some sort of representation to the problem at hand. Some basic knowledge of statistical mechanics would be helpful. The above path would get one to a point in which one can begin to understand the following: Statistical mechanics of complex networks Section Bose-Einstein Condensation PDF page 39.

Viva La Résistance Toward Government Bailout Without Full Accountability!!!

Viva La Revolucion!!!!