What happens when you destabilise a suboptimal system? It implodes.

The death of John and Alicia Nash on 23 May brought attention to game theory and the Nash Equilibrium, which offer insights into resolving the problems of today’s world. As The Economist succinctly says: “In the real world of less-than-perfect competition, a “Nash equilibrium” may well be stable, but not optimal.”   Game theory shows that …
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The foxes have taken over the hen house!

Big business is secretly lobbying government to pass laws that give the rights to determine what we eat, irrespective of health or environment, as long as it makes money for them! Maybe that sounds too fantastic to be true, but it’s happening.  Maybe you’re in big business and you think it can’t be that bad …
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The problem with carbon trading

While I appreciate the positive aspect of carbon trading – that it draws attention to the problem of overconsumption of energy, in particular fossil fuels – it is a distraction from focussing on the real problem of changing the way we do things. A new report of carbon trading articulates the increasing risks of focussing …
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Sovereign wealth funds: much ado about some money

Sovereign wealth funds: much ado about some money by Charles Kovacs* The first sovereign wealth fund (SWF) was established by Kuwait in 1953,[1] and was followed by many others from 1973-4, after the first oil crisis.[2] Since then, each major jump in oil and gas prices increased the number and size of SWFs; after 2000, …
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At last, real veg allowed back in to the EU.

The EU bureaucrats have finally wised up to the waste and frustration of regulating the shape and look of fruit and vegetables. We know from our garden how weird they can be, naturally. Like this one … It was a ludicrous regulation when it was brought in and it’s sad that it’s taken 20 years …
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A crisis of protectionism will escalate the economic crisis.

Protectionism has a track record of harming economies. It is harmful to those that implement protectionism and those that are targets of protectionism. It is contrary to the beneficial lessons of the past decades. It is the ideology of failed regimes such as North Korea and former Eastern Block countries. Protectionism exacerbates a downward spiral, …
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Chinese Yuan XR volatility – Q and A

Reuters published an interesting analysis of the recent depreciation of the Yuan here, including implications, dangers and analyst expectations.  It’s copied here below. If depreciation is market driven, a big if, then the depreciation may be appropriate and help revitalise Chinese exports and in turn western consumption.  Whether or not the value has been engineered, …
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Africa insulated from financial crisis.

As contended in our Financial Crisis 2008 notes, it is likely that Africa will not suffer the same fate as Western economies in this implosion of the financial markets. In this report the BBC asks Can Africa gain in the credit crisis? I see a number of issues in Africa’s favour: It is coming from …
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GM safety scandal 10th anniversary – the scandal continues

Here is copied a letter from Dr Arpad Pusztai to GM Watch on the 10th Anniversary of the GM Safety Scandal.  GM contamination of nature and our food continues to be covered up by irresponsible people. Dear Claire and Jonathan, I thought that I should write to you on the 10th anniversary of my 150 …
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