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.

Niall Ferguson: An Evolutionary Approach to Financial History (via Catagenesis)


The Lorenz attractor is an example of a non-li...

Image via Wikipedia

There is very little I can add to this (that I haven’t already said before on numerous occasions!):

…Ferguson references Schumpeter as well as other pioneering thinkers on the intersection of the natural world / evolutionary processes and the monetary/economic/financial worlds.

Those who recognize that markets & economies are complex systems, who also understand what complex systems are and how they work, are really the only people who are even getting close to an approximation of reality.

Embedded below is a short clip from a FORA.tv video of a lecture given by Harvard economic historian & theorist Niall Ferguson.  Ferguson discusses many topics which are of interest to this blog – non-linear dynamics and complex systems in the realm of money, finance & economics. Looking at the economy & financial markets through the lens of evolutionary processes provides valuable insights.  For example, Ferguson references Schumpete … Read More

via Catagenesis