Tag Archives: central planning

Which One Wins: Central Planning or Adaptive Networks?

The global economy is in the midst of a grand experiment pitting centralization (Central Planning) against the evolutionary model of adaptive, self-organizing networks. Centralization is the dominant dynamic of the Status Quo everywhere: the economies of China, Japan, Europe and the … Continue reading

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If “Everybody Knows the Economy’s Doing Better,” What Is That Information Worth?

One investment truism holds that information known to everyone has no value.The reason is that there’s no trading edge in information everyone knows. Trading edges result from information asymmetry, when a limited set of traders has information that is unavailable … Continue reading

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Is the Market Rational After All?

For the past decade, attempts to explain the psychology of markets have been dominated by behavioral economics: rather than being rational actors as presumed in classical economic models, humans are often profoundly irrational and prone to cognitive distortions and errors … Continue reading

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When Authorities “Own” the Market, The System Breaks Down: Here’s Why

Panicked by the possibility of declines that undermine the official narrative that all is well, authorities the world over are purchasing assets like stocks, bonds and mortgages directly. Central banks are explicitly taking on the role of buyers of last … Continue reading

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It’s Not Just Japan That’s Failed; The “Asian Miracle” Model Has Also Failed

The inevitable result of the centrally planned Asian Miracle Model is credit bubbles and the crippling misallocation of capital in Building Bridges to Nowhere. Japan’s extraordinary rise from the ashes of World War II created an “Asian Miracle” template that … Continue reading

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