Daily Archives: October 2, 2015

Bubbles Always Burst: the Education of an Economist

BOOK REVIEW

Forgash Plan, Author: Terence McCarthy.
A History of Economic Theories: From the Physiocrats to Adam Smith, Author: Karl Marx.
Theories of Surplus Value, Author: Karl Marx.
Killing the Host, Author: Michael Hudson.
Super Imperialism: The Economic Strategy of American Empire, Author: Michael Hudson.
Global Fracture: The New International Economic Order, Author: Michael Hudson.
Debt: The First Five Thousand Years, Author: David Graeber.

By Michael Hudson – Shifts in the Midwestern water level or climatic disruptions in other countries caused periodic droughts, which led to crop failures and drains on the banking system, forcing banks to call in their loans.

Finance, natural resources and industry were parts of an interconnected system much like astronomy – and to me, an aesthetic thing of beauty.

But unlike astronomical cycles, the mathematics of compound interest leads economies inevitably into a debt crash, because the financial system expands faster than the underlying economy, overburdening it with debt so that crises grow increasingly severe.

Economies are torn apart by breaks in the chain of payments. more> http://tinyurl.com/ofwgtj2

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The Three Major Trends that Shaped the Global Economy for Decades Are About to Change

BOOK REVIEW

Capital in the Twenty-First Century, Author: Thomas Piketty.

By Luke Kawa – According to Charles Goodhart, professor at the London School of Economics and senior economic consultant to Morgan Stanley, demographics explain the vast majority of three major trends that have shaped the socioeconomic and political environments across advanced economies over the past few decades.

Those three would be declining real interest rates, shrinking real wages, and increasing inequality.

The conditions that fostered these three intertwined major developments are nearly obsolete, and this has profound implications for the framework of the global economy in the decades to come. more> http://tinyurl.com/ntyfgd8

Updates from GE

Every Electron Gets a Byte: Digital Power Plant Makes Electricity Smart
By Tomas Kellner – Even trained eyes can’t see anything amiss. But back in the control room, a warning box pops up on the plant operator’s screen.

It’s the data talking.

The plant’s engineers recently installed new vibration sensors on the pumps and they just detected a slight movement that wasn’t there yesterday or the week before. The sensors streamed the data to the control room’s computer, which analyzed it and flagged an anomaly for review. Next, the software automatically took another look at data coming from a temperature sensor, confirmed the finding and reported that things had not yet gone too far out of whack for major damage to have occurred.

And just like that, unlike in the plot of a Hollywood thriller, everything got quietly resolved. more> http://tinyurl.com/oy2tvku

How much of your audience is fake?

By Ben Elgin, Michael Riley, David Kocieniewski, and Joshua Brustein – Increasingly, digital ad viewers aren’t human.

A study done last year in conjunction with the Association of National Advertisers embedded billions of digital ads with code designed to determine who or what was seeing them. Eleven percent of display ads and almost a quarter of video ads were “viewed” by software, not people.

“I can think of nothing that has done more harm to the Internet than ad tech,” says Bob Hoffman. more> http://tinyurl.com/oak4762

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