Europe, the Eurozone Crisis, Complexity and Systemantics


The laws of systemantics are said to be pseudo-science. Fair enough. A few of these laws are listed below. They apply to highly complex systems. Think of these laws and then think of the EU and of the Euro.

  • Le Chatelier’s Principle: Complex systems tend to oppose their own proper function. As systems grow in complexity, they tend to oppose their stated function.
  • A complex system cannot be “made” to work. It either works or it doesn’t.
  • A complex system that works is invariably found to have evolved from a simple system that works.
  • A complex system designed from scratch never works and cannot be patched up to make it work. You have to start over, beginning with a working simple system.
  • The Functional Indeterminacy Theorem (F.I.T.): In complex systems, malfunction and even total non-function may not be detectable for long periods, if ever.
  • The Fundamental Failure-Mode Theorem (F.F.T.): Complex systems usually operate in failure mode.
  • A complex system can fail in an infinite number of ways.
  • The larger the system, the greater the probability of unexpected failure.
  • As systems grow in size, they tend to lose basic functions.
  • Colossal systems foster colossal errors.

via Ontonix – Complex Systems Management, Business Risk Management.

FSA:: Lord Turner’s "paradise" lost


I’ve never met the man but I like the cut of his jib. Perhaps it is the novelty of someone in high (financial) office admitting what his peers feel they cannot…even though, with brief explanation, a child could differentiate good guys from bad!

Lord Adair Turner, the outgoing chairman of the Financial Services Authority and a candidate for Bank of England governor, said last night the FSA had spent its first eight years in a “fool’s paradise” of delusion about financial risk.

via FSA was in fool’s paradise, admits Turner | Herald Scotland.

So the problem is pretty well framed and, dare I say, understood. But WHO IS PREPARED TO LISTEN TO POTENTIAL SOLUTIONS OF THE VARIETY ADVOCATED ANDY HALDANE AT BY BANK OF ENGLAND?

Dilbert does Credit Agencies & Capitalism


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What is it “they” say about learning from history?:: Neil Kinnock (1983)


Of course, in 1983, Neil Kinnock was warning of the perils, if Margaret Thatcher were elected. He was right then but little did any of us know how prophetic these words were now we are dealing with the legacy of the culture “sewn” 30 years ago.

I warn you that you will have pain–when healing and relief depend upon payment.

I warn you that you will have ignorance–when talents are untended and wits are wasted, when learning is a privilege and not a right.

I warn you that you will have poverty–when pensions slip and benefits are whittled away by a government that won’t pay in an economy that can’t pay.

I warn you that you will be cold–when fuel charges are used as a tax system that the rich don’t notice and the poor can’t afford.

I warn you that you must not expect work–when many cannot spend, more will not be able to earn. When they don’t earn, they don’t spend. When they don’t spend, work dies.

Bob Dylan and the evolving role of Social Business in the redistribution of “absolute power”


Complexity to casualtyYou can’t fail to have noticed the sorry demise of some major High Street brands in recent years. It’s true that a lot of the “tales of woe” are as a result of the, immediate impact, of the global financial crisis but that is only part of the story. Because, there have probably been more casualties, large and small, as a result of the far-reaching “aftershocks” and resultant recession. Read more of this post