The Perverse and the Reverse

Financial-risk analysts have been describing the perversity of the “new normal” for a lot of years now.

Mathematicians describe it as reversion to the mean, which is a property readily observed in nature (which is an “appeal to the natural aesthetic” by default, as I describe it). The observable phenomena is measurable equivalence, and the phenomenon is a coercive influence that “causes” the effect, which is the descriptive yield that defines objective reality (i.e., what is normal).

Even in nature we tend to describe a method to the yield. Engineers manipulate natural processes to derive what does not otherwise exist, but since it is a derivative value it always really existed, it just had not been actualized until it was demanded. On demand, the yield is “forced” to occur, and in the realm of political economy I call this Equivalent Coercive Value (having the natural, expected yield of ECV-symmetry by default, appealing to the natural aesthetic, on demand by natural design).

(See other articles by griffithlighton on ECV-symmetry published on the World Wide Web.)

Many risk analysts like to refer to ECV-symmetry as “the zero-hedge effect.” The effect, referring to its naturally coercive value, is always present and things always revert to it, as mathematicians describe it.

The zero-hedge effect is very similar to what Kant described as the categorical imperative. It is also like what Thomas Hobbes said is the natural identity of the sovereign power, saying that the power of kings and queens is derivative and thus subject to equivalence by natural design. Later, Enlightenment philosophers turned this emergent property of conceptualized, measurable equivalence into the practical philosophy of natural rights, supported by equivalent properties observed in nature (appealing to the natural aesthetic and existing on demand, like in a free market).

When it comes to the “new normal,” any risk analyst expects a reversion to the mean, which is why I mentioned the dip in the DOW the other day.

The fear index (the VIX) became more volatile because, you see, by natural design, there is a natural tendency to reverse the perverse.

With income inequality at record levels, what is the expected derivative value (the yield) that will actualize from the method by natural design (appealing to the natural aesthetic by default).

A 3% drop in equity values isn’t much compared to the record rise due to record income inequality.

Like engineers say, when their creations are behaving like they intend, the object is “normally malfunctioning.”

Maintaining what can be described as normal, and thus naturally derived, depends on how you read the signs. It is a transactional interpretation, which is a method yield that will always yield to the natural aesthetic (as the “creators” know very well) by design.


About griffithlighton

musician-composer, artist, writer, philosopher and political economist (M.A.)
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