Recent progress on formal and computational model for A. Smiths Invisible Hand paradigm

The recent economic crisis has boosted a very strong demand for quite new tools to analyze and predict the behavior of quasi-free1 markets. The paper presents our effort to build a formal theory of A. Smith's Invisible Hand [5] paradigm (ASIH) and simulation model for a selected case. It proves that ASIH is not only an economic idea, which conflict on ways to govern [16], but something that really exists, for which formal a theory can be built. Moreover, ASIH can be measured [17], and in the future probably utilized for quasi-free market analysis and prediction. In advance, we want to state, that ASIH according to our theory, can generate both correct and incorrect decisions. For this, we use the theory of computational Collective Intelligence [18] and a molecular model of computations [1], [2]. Our theory assumes that ASIH is an unconscious meta-inference process spread on the platform of brains of agents. This meta-process is: distributed, parallel, and non-deterministic, and is run on a computational platform of market agents' brains. The ASIH inference process emerges spontaneously in certain circumstances and can vanish when market situation changes. Since the ASIH platform is made up of brains of agents, conclusions of this inference process affect the behavior of agents and therefore the behavior of the entire market. Our research unveils that ASIH is in fact a family of similar meta-processes; thus ASIHs for different economic eras are different because corresponding models of brains of market agents are different. The paper will present and explain, on the basis of a simulation model, a case of powerful ASIH response at the end of the 15th century due to a blockade (taxes and the Dardanelles sea-route cutoff) of spice trade by Turks and Arabs. ASIH also responded to the discovery of America, the emergence of a sailing route around Africa, the establishment of plantations (sugarcane, spices) and modern galleons2 technology. This case demonstrates how powerful and with far-reaching consequences, ASIH can b

Fractional Reserve Banking as Economic Parasitism: A Scientific, Mathematical & Historical Expose, Critique, and Manifesto

This paper looks at the history of money and its modern form from a scientific and mathematical point of view. The approach here is to emphasize simplicity. A straightforward model and algebraic formula for a large economy analogous to the ideal gas law of thermodynamics is proposed. It may be something like a new ``F=ma'' rule of the emerging econophysics field. Some implications of the equation are outlined, derived, and proved. The phenomena of counterfeiting, inflation and deflation are analyzed for interrelations. Analogies of the economy to an ecosystem or energy system are advanced. The fundamental legitimacy of ``expansion of the money supply'' in particular is re-examined and challenged. From the hypotheses a major (admittedly radical) conclusion is that the modern international ``fractional reserve banking system'' is actually equivalent to ``legalized economic parasitism by private bankers.'' This is the case because, contrary to conventional wisdom, the proceeds of inflation are not actually spendable by the state. Also possible are forms of ``economic warfare'' based on the principles. Alternative systems are proposed to remediate this catastrophic flaw.fractional reserve banking money expansion parasitism capitalism greenspan gold thermodynamics perfect gas econophysics gresham's law stiglitz money supply inflation deflation growth price stability counterfeiting energy radical polemic revolution economic warfare religion doublespeak gdp scarcity fiat blips federal reserve history slavery lassaiz-fair solow keynes keynesianism cancer psychology sociology politics analogy IMF world bank GNP GDP digital cash money laundering pareto mcfadden echelon nsa free market growth conspiracy

The Dominium Mundi Game and the Case for Artificial Intelligence in Economics and the Law

This paper presents two conjectures that are the product of the reconciliation between modern economics and the long-standing jurisprudential tradition originated in Ancient Rome, whose influence is still pervasive in most of the world's legal systems. We show how these conjectures together with the theory that supports them can provide us with a powerful normative mean to solve the world's most challenging problems such as financial crises, poverty, wars, man-made environmental catastrophes and preventable deaths. The core of our theoretical framework is represented by a class of imperfect information game built completely on primitives (self-interest, human fallibility and human sociability) that we have called the Dominium Mundi Game (DMG) for reasons that will become obvious. Given the intrinsic difficulties that arise in solving this type of models, we advocate for the use of artificial intelligence as a potentially feasible method to determine the implications of the definitions and assumptions derived from the DMG's framework

Quantum Economic Theory of Intelligence

The Quantum Economics Intelligence Initiative, spearheaded by Quantum Economist PhDs. Kaiola M Liu integrates insights from seminal thinkers like Einstein, Archimedes, Adam Smith, Nick Land, and Sun Tzu. By applying principles of quantum mechanics, this forward-looking project aims to redefine economic modeling, exploring real-world applications and potential benefits. The initiative encompasses foundational studies, economic model applications, incorporation of quantum computing, and analysis of contemporary economic philosophies. Keywords - Quantum Mechanics, Economics, Technological Advancements, Philosophy

The New Science of Complexity

Deterministic chaos, and even maximum computational complexity, have been discovered within Newtonian dynamics. Economists assume that prices and price changes can also obey abstract mathematical laws of motion. Sociologists and other postmodernists advertise that physics and chemistry have outgrown their former limitations, that chaos and complexity provide new holistic paradigms for science, and that the boundaries between the hard and soft sciences, once impenetrable, have disappeared like the Berlin Wall. Three hundred years after the deaths of Galileo, Descartes, and Kepler, and the birth of Newton, reductionism appears to be on the decline, with holistic approaches to science on the upswing. We therefore examine the evidence that dynamical laws of motion may be discovered from empirical studies of chaotic or complex phenomena, and also review the foundation of reductionism in invariance principle

Adaptive Policymaking: Evolving and Applying Emergent Solutions for U.S. Communications Policy

This Article presents some specific ways that U.S. policymakers should use teachings from the latest thinking in economics to create a conceptual framework in order to grapple with current controversies in communications law and regulation. First, it provides a brief overview of Emergence Economics, with an emphasis on the rough formula of emergence and the unique role of technological change in creating and furthering innovation and economic growth. Second, this paper explicates the general concept of Adaptive Policymaking by governments and includes some proposed guiding principles, an outline of the public policy design space, and an adaptive toolkit to be used by policymakers. Third, this Article discusses devising a policy design space specifically for communications policy, with an emphasis on the institutional and organizational challenges facing the FCC as it seeks to fulfill the suggested goal of furthering More Good Ideas. Finally, this paper explores the conceptual framework for the fitness landscape, including a searching critique of the notion of enabling without dictating evolutionary forces in the marketplace