Is There Life After Debt?

Sudden Debt:

Fact: The debt crisis is global – and, yes, this includes the so-called creditor nations, such as China. After all, in our fiat currency world it takes a debit in order to create a credit.



The way we got into this mess is well known: the West foolishly (even criminally, if you ask me) gave up its industrial/manufacturing base and the high earned-income jobs it generated, replacing them with services and low value-added jobs. However, it didn’t lower its consuming and spending habits to balance the losses, instead it piled on debt from vendor nations, and constructed Rube Goldberg asset bubble contraptions that attempted to generate “wealth” out of thin air (e.g. real estate, derivative-based bonds, etc.).

Information Is Cheap, Meaning Is Expensive

The European:

The European: A computer “is a simple mind having a will but capable of only two ideas”, you have said.Does it make sense to think of a technical apparatus in biological terms?

Dyson: The quote comes from an illustration of a circuit diagram that Lewis Fry Richardson produced in 1930. It was a very prophetic idea, like most of the stuff that Richardson did. He had drawn this diagram of an indeterminate circuit, so it was impossible to predict which state the circuit would be in. Maybe those are the origins of mind: A simple and indeterminate circuit. The significance of Richardson’s idea was that he broke with the assumption that computation had to be deterministic, because so few others things in the universe are deterministic. Alan Turing was very explicit that computers will never be intelligent unless they are allowed to make mistakes. The human mind is not deterministic, it is not flawless. So why would we want computers to be flawless?



The European: The ultimate indeterminate process on Earth is evolution. Yet evolution doesn’t really require input and commands, it sustains and develops itself. That seems fundamentally different from the way we think about technological evolution…

Dyson: Biological evolution is a bottom-up process. There are differences between the two realms, but there are also similarities: In both biology and technology, things develop into structures of increasing complexity. That’s what Nils AallBarricelli saw right away. He tried to understand the origins of the genetic code and apply that to the development of computers. The question was whether you could run computer experiments that allowed increases in systemic complexity to happen. And very quickly that stopped being an experiment and codes began evolving in the wild—not by random mutation, but by crossing and symbiosis, exactly as Barricelli prescribed.

History and Evaluation of the Policy Response to the Great Recession: Summers BGP-266M Crisis Economics Syllabus

Larry Summers @ Harvard

Course Overview: This course will examine the American policy response to the recent financial crisis
and associated Great Recession. The objective is to illuminate (i) the changes in macroeconomic thinking necessitated by recent events (ii) the relationship between analytical macroeconomics, finance and policymaking in a political context (iii) lessons of recent experience for public policies directed at preventing crises in the future and responding to them when they come. The lectures will draw on the professional economic literature to the minimum extent necessary to facilitate understanding of the issues involved. The primary focus will be on the process of policy choice and the factors entering into actual policy decisions. Each lecture after the first introductory lecture will cover a different aspect of the policy response to the crisis. Sections will take up relevant analytical economic aspects.

Project Black Mirror upgrades Siri from voice recognition to mind reading

Simon Sage:

Some hobbyist hackers have rigged up an iPhone 4S to collect brain wave patterns from some simple ECG pads, translate them into synthesized speech, which is in turn pumped through the 3.5 mm headphone jack, and recognized by Siri as a usable command. Besides pressing the home key to initiate Siri, all you have to do is think your command, and your iPhone 4S will hop to it. The engineers expect that they’ll even be able to eliminate the need to press the home key, making it fully automatic. So far, the guys at Project Black Mirror have been able to link 25 brain wave patterns to specific Siri commands. Of course, right now the project is a bulky Arduino test board hooked up to a Macbook, which also occupies the headphone jack, and makes the user look like he belongs in Clockwork Orange, but these guys are putting up a Kickstarter page shortly to get funding and turn this thing into a real product.

Finally, a Judge Stands up to Wall Street

Matt Taibbi:

Federal judge Jed Rakoff, a former prosecutor with the U.S. Attorney’s office here in New York, is fast becoming a sort of legal hero of our time. He showed that again yesterday when he shat all over the SEC’s latest dirty settlement with serial fraud offender Citigroup, refusing to let the captured regulatory agency sweep yet another case of high-level criminal malfeasance under the rug.

The SEC had brought an action against Citigroup for misleading investors about the way a certain package of mortgage-backed assets had been chosen. The case is very similar to the notorious Abacus case involving Goldman Sachs, in which Goldman allowed short-selling billionaire John Paulson (who was betting against the package) to pick the assets, then told a pair of European banks that the “designed to fail” package they were buying had been put together independently.

This case was similar, but worse. Here, Citi similarly told investors a package of mortgages had been chosen independently, when in fact Citi itself had chosen the stuff and was betting against the whole pile.



This whole transaction actually combined a number of Goldman-style misdeeds, since the bank both lied to investors and also bet against its own product and its own customers. In the deal, Citi made a $160 million profit, while its customers lost $700 million

20 Years of Gadget Reviews

Walt Mossberg:

Consumer technology has come a long way since that day. Digital gadgets—then too often designed by techies for techies—have become essential to our lives, and much easier to use, even if we still need the Geek Squad and the Genius Bar more than we should. And the pace of change has been mind-boggling.


In 1991, most consumer computers didn’t have built-in audio beyond just the ability to beep. Most lacked any way to communicate with the outside world—even via a slow, dial-up modem. The Internet wasn’t available to most people. Search engines and social networks didn’t exist.


Mobile phones were huge bricks. Digital cameras for consumers cost a fortune and took monochrome pictures. Digital music players and video recorders, e-readers and tablets were nowhere to be found.


So, this week, I decided to take a look back at some of the game-changing products that appeared in this column over the past two decades and propelled us from that primitive landscape to today’s interconnected digital world. This list of milestones is just a sampling; yours might differ. Also, since I write for average consumers, the list is weighted towards consumer products, not gadgets for geeks or corporate use.

U.S. Government Glossed Over Cancer Concerns As It Rolled Out Airport X-Ray Scanners

Michael Grabell:

On Sept. 23, 1998, a panel of radiation safety experts gathered at a Hilton hotel in Maryland to evaluate a new device that could detect hidden weapons and contraband. The machine, known as the Secure 1000, beamed X-rays at people to see underneath their clothing.

One after another, the experts convened by the Food and Drug Administration raised questions about the machine because it violated a longstanding principle in radiation safety — that humans shouldn’t be X-rayed unless there is a medical benefit.

“I think this is really a slippery slope,” said Jill Lipoti, who was the director of New Jersey’s radiation protection program. The device was already deployed in prisons; what was next, she and others asked — courthouses, schools, airports? “I am concerned … with expanding this type of product for the traveling public,” said another panelist, Stanley Savic, the vice president for safety at a large electronics company. “I think that would take this thing to an entirely different level of public health risk.”

The machine’s inventor, Steven W. Smith, assured the panelists that it was highly unlikely that the device would see widespread use in the near future. At the time, only 20 machines were in operation in the entire country.

These devices are increasingly used at domestic airports. Airline crews and airport employees use the old metal detectors…. I opt out.

World power swings back to America

Ambrose Evans-Pritchard:

The American phoenix is slowly rising again. Within five years or so, the US will be well on its way to self-sufficiency in fuel and energy. Manufacturing will have closed the labour gap with China in a clutch of key industries. The current account might even be in surplus.

Assumptions that the Great Republic must inevitably spiral into economic and strategic decline – so like the chatter of the late 1980s, when Japan was in vogue – will seem wildly off the mark by then.
Telegraph readers already know about the “shale gas revolution” that has turned America into the world’s number one producer of natural gas, ahead of Russia.

Less known is that the technology of hydraulic fracturing – breaking rocks with jets of water – will also bring a quantum leap in shale oil supply, mostly from the Bakken fields in North Dakota, Eagle Ford in Texas, and other reserves across the Mid-West.

Immelt on America going “all-in”

Chrystia Freeland:

I had breakfast this week with Jeffrey R. Immelt, the chief executive of General Electric, and the main dish on the menu was tough love. In an interview before a packed hall in Times Square, the boss of the more than a century-old $177 billion global behemoth told me that Americans can still win in the global economy — but that they need to fight harder.

“We are not trying that hard,” Immelt said. “We haven’t really tried as hard as we can to compete, educate and sell our products around the world and I think we can do better.

“The world just plays harder than we play,” he said. “Whether it is on exports or whether it is on foreign direct investment, the rest of the world plays for keeps. And we just don’t have a similar philosophy.”



Chancellor Angela Merkel of Germany has her own reasons for feeling grim, but she can take some comfort from the fact that Immelt pointed to Germany, whose version of capitalism Americans are accustomed to dismissing as plodding and inflexible, as one nation that is outselling the Yanks.

“Chancellor Merkel flies from Berlin to Beijing, there’s 25 German C.E.O.’s that get off the plane right behind her. And they connect the dots. They play hard, they play to win, they play for exports,” Immelt said. “We’re not all-in the same way that the Germans are all-in.”

The Germans certainly play the world much better than we Americans.