In fluid dynamics, a smooth linear flow developes chaotic turbulent flow when its dimensionless Reynolds number increases over the boundary phase. I think the world monetary flow is developing symptoms of entering a boundary phase, which may end in turbulence and chaos. For example, Ireland's young and religious population catapulted the country into an economic paradise. Irish GNP was higher than the British one. Yet now it appears that the miracle was much based on illusion and even more debt. Ireland is pulling down the euro versus all major currencies. The euro is once more losing its feet. Can the world monetary structure maintain its stability or will it collapse in chaos? What can a small saver do to protect its assets? Many may be weighting the this question these days.
Tuesday, November 16, 2010
Boundary Phase
In fluid dynamics, a smooth linear flow developes chaotic turbulent flow when its dimensionless Reynolds number increases over the boundary phase. I think the world monetary flow is developing symptoms of entering a boundary phase, which may end in turbulence and chaos. For example, Ireland's young and religious population catapulted the country into an economic paradise. Irish GNP was higher than the British one. Yet now it appears that the miracle was much based on illusion and even more debt. Ireland is pulling down the euro versus all major currencies. The euro is once more losing its feet. Can the world monetary structure maintain its stability or will it collapse in chaos? What can a small saver do to protect its assets? Many may be weighting the this question these days.
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6 comments:
The Irish (like the fool I was in earlier days) believed that as the market rewards and punishes according to economic virtue, they had a lead up on the feckless British. Styling themselves the Celtic Tiger at long last they were going to beat the mangy British Lion. They thought they had both Mr Prudence and Ms Fortuna on their side. Little did they realise that the only advantage they really had was relatively cheap labour. One can't parlay that in the long term to a fancy lifestyle. The Chinese have walked away with all the gleaming electronic factories. If you will forgive a little implied blasphemy : the Market giveth, the Market taketh away, blessed be the name of the Market.
From the pop aeronautical accounts I have read, boundary seperation spells trouble, viz stall followed by free fall, the plane has to fall back to a denser medium while the pilot struggles to get back to level flight. As Robert Cray will tell you, the forecast calls for pain.
The Irish thing (like the Greek, Portuguese, etc.) was always an illusion - how did Ireland suddenly go from being one of the poorest countries in Europe to one of the richest, when the Irish were still the same Irish they always were, just a little too fond of the drink? The answer is that they didn't.
K
The Irish thing (like the Greek, Portuguese, etc.) was always an illusion - how did Ireland suddenly go from being one of the poorest countries in Europe to one of the richest, when the Irish were still the same Irish they always were, just a little too fond of the drink? The answer is that they didn't.
K
Every colonial has a bit of Irish blood in him, and every bit of Irish blood has a bit of alcohol in it.
Anon.
Actually J, you are right, and I think that not for the first time in history, the answer to this question of asset protection depends not on economic fundamentals, but an accurate assessment of the consequences of very extensive human interference in the economy, sensu lato.
Who will do what and to whom.
Anon.
I made a few bucks shorting the Celtic Housecat after the results of those not-so-stressful European bank stress tests were announced over the summer.
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