Sunday, January 09, 2011

Federal Reserve & Monetary Policy: Groupoids

Subtitle: If I have the money I’ll buy Gold, Part 2

Have you figured what this creature is (Elasticity of a Function) in relation to groupoids ??? Groups are symmetric operations and groupoids are symmetric operations without an identity (starting point). Elasticity of Groups is a fractal. Think about it: Elasticy of a Function can be thought as a magnification about a point. Elasticity of Groups needs to be valid as a quotation space. Partitioning a group by another group or in the case of fractals, partitioning a fractal that produces the same pattern at a different scale.

Using a time as a parameter, in effect, allows the system to run at a different rate. Hence, the directed product with respect to time is another action. Self- Similarity is what gives Economic Elasticity the ability to have “History Repeat Itself”. See NeoClassic.... blog

The chaotic behavior of society comes from the interaction of society. Probability Space is the total space one is interested in, the events in that space and the probability of those events. In global economics, the probability space are the countries of interest. In other words one is taking the unions of each of the country’s probability space which are not interacting. Once one looks at the interaction of these spaces, one must follow the rules of coordinate changes. Blow apart one county’s probability distribution and convert the part that is interacting to the new coordinate system. With respect to firms this is all that is needed, however, with respect toward a country’s society there is the left over parts. Recent Noble Prizes in Economics have pointed toward the fact the Maximum Likelihood of a probability distribution is pushed toward the lower Maximum Likelihood. This is what the convolution theory of work forces predicts.


Pushing the Maximum Likelihood (of the US of A’s labor forces’ wages as indicated by the probability densities‘ of each sector) toward a lower Maximum Likelihood point of other counties like China and India will result in deflationary pressures. I would avoid “Darlings of Wall Street” like healthcare stocks and bonds. The “Darling of Wall Street” healthcare companies do not have an overseas operation in which a weak dollar can translate into profits.

Avoid US of A’s Debt. A “Divided House” is going to force the “Scums of Wall Street” to pressure treasury prices lower in order to punish those House members who do not support the increase in the US of A’s debt ceiling.

Viva La Revolucion!!!!