light dark mandala Yin dark Bubble bursts Current

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light dark mandala

light dark mandala

Yin (dark) Bubble bursts Current account deficits financial deficits fallacy of composition Asset prices

Yin (dark) Bubble bursts Current account deficits financial deficits fallacy of composition Asset prices ↓ Contagion Deleveraging Govt’s, Firms, Households Deficient demand U↑G↓ Speculation, leveraging, securitization Monetary policy works Excess demand U↓ G↑ Contagion Fiscal policy works Liquidity trap Inflated asset prices Hubris New asset bubble Balance sheet Recession Risk aversion Yang(light) Eventually balance sheets recover Govt’s, Firms, Households Increase demand

GLOBAL DEMAND Outsourcing FDI Consumption Investment Asset prices Sovereign wealth funds FINANCIAL REVOLUTION Flexible

GLOBAL DEMAND Outsourcing FDI Consumption Investment Asset prices Sovereign wealth funds FINANCIAL REVOLUTION Flexible exchange rates Deregulation New asset pricing models Securitization GLOBAL POSITIVE FEEDBACKS 1980 – 2006 (circa) TECHNOLOGICAL REVOLUTION Investment funds Shorter product cycles Pressure to reduce costs Outsourcing

THEME (3) Evolution of being/consciousness

THEME (3) Evolution of being/consciousness

http: //betterexplained. com/articles/understanding-the-pareto-principle-the-8020 -rule/ Pareto distribution

http: //betterexplained. com/articles/understanding-the-pareto-principle-the-8020 -rule/ Pareto distribution

Networks: default state Small world: highly clustered, short path lengths • Degree of a

Networks: default state Small world: highly clustered, short path lengths • Degree of a node is the number of edges (k) connecting it to other nodes. • High degree nodes have many connections (high k); low degree nodes have few (low k) • P(k) probability of degree k follows a power law • P(k) ≈ k – α. . 09/11/2020 robindcmatthews P(k) ≈ Ck – α. . 6

P(k) ≈ Ck – α The internet k = degree of a node; robindcmatthews

P(k) ≈ Ck – α The internet k = degree of a node; robindcmatthews the number of connected edges 09/11/2020 7

y = cx-a Change on all scales is possible Log Probability y FAT TAILED

y = cx-a Change on all scales is possible Log Probability y FAT TAILED DISTRIBUTION SCALE FREE RELATIONSHIP y = cx-a Log size of change x

09/11/2020 robindcmatthews 9

09/11/2020 robindcmatthews 9

ASPECTS OF SINGULARITY power laws, fat tails, self similarity and fractals y x (elasticity)

ASPECTS OF SINGULARITY power laws, fat tails, self similarity and fractals y x (elasticity) = a self similar same on all scales

Fractal 09/11/2020 images robindcmatthewssource http: //www. google. com/images/sdsc. edu 11

Fractal 09/11/2020 images robindcmatthewssource http: //www. google. com/images/sdsc. edu 11

THE EUROZONE

THE EUROZONE

Haldane (2009)

Haldane (2009)

CM AM AF+1 C 4 C 1 AF Figure 2

CM AM AF+1 C 4 C 1 AF Figure 2