Saturday, January 31, 2009

Obama's First Stumble

It had to happen.

It's kind of a relief.

Nobody's perfect.

The bailout/stimulus proposal which came out this week won't work!

It's not Barack's fault. He needs to rely on his advisers even as he occasionally transcends them.

It's really not their fault either. They don't know any better. No one told them that their failed models need updating.

But it'a too important to ignore. Between the Federal Budget and potential stimuli/bailouts, there are trillions of dollars at stake. More importantly, there is the opportunity to transform the economy into one that is sustainable and more just.

We are at the edge of a precipice that we created, and we only get one chance to step back and save the economy.

Does it make sense to continue to spend government money based on analysis which has proven to be wrong so many times?

Would it make sense to allocate a small portion of new government spending on the development of a new structure for public policy analysis which has proven itself many times?

The answers are obvious.

There is a team of the best minds in the fields of particle physics, complexity science, actuarial science, and computer science ready to be assembled. They can build a model with the best data mining, enterprise risk management, dynamic financial analysis, data visualization, demographic, probability, and management analytics available.

Such a model can supplement existing economic, financial and public policy models in determining where spending will have optimal effect, what the uncertainties are, how to make adjustments dynamically, how to handle interactions, and all the other factors existing models ignore or miss.

The best minds in Washington are doing their best, but is isn't good enough. Some of the programs proposed will have some positive impact, but no one knows how much, or whether more innovative approaches would have much more effect.

What if we find, that using the best analytics possible, the impact of bailout and stimulus activity can be increased 100 fold or more over the next decade?

Should we at least consider it?

The global economy is collapsing.

Social Security is effectively bankrupt.

The healthcare system is crumbling under its own weight.

The deficit is dangerous, particularly if forecasts of the future US economy are distorted.

None of these issues are adequately addressed in proposals made to date.

The Federal Budget, along with all bailout and stimulation activity is a complex system which impacts a web of other complex systems. Government spending impacts the healthcare system, the infrastructure system, the prison system, the retirement system, the welfare system, the education system, and a variey of other systems, not to mention foreign relations.

Each of these systems has subsystems like housing, transportation, energy, goods, services, environment, medicine, and so on.

No model in place in Washington can deal with the interconnections, demographics, uncertainties, management, and data requirements of such a complex network.

We can transform the economy successfully . We can evolve into a country with sustainable and just results.

We have the intellectual resources.

We have the technical resources.

Yes we do.

Lee

Friday, January 30, 2009

The Math of String Theory

If there is to be a "Theory of Everything" for the forces of nature, string theory at the moment seems to have a good chance of playing a major role. Everything that happens in the physical universe may be ultimately represented in a single, elegant equation.

The mathematics of string theory gives hope to the dream of a resolution of some of the problems in the current model of particle physics. By adding dimensions to the framework, string theory provides new avenues to mathematical consistency.

Of course, if some version of string theory holds , as was the case with quantum mechanics, our world view will have to be altered dramatically. In addition to matter and energy, space and time themselves will cease to have their commonsense characteristics.

On a conceptual level, string theory uses one dimensional strings rather than zero dimensional particles in developing the formulas. The way these strings "vibrate" determines what type of particle emerges, and ultimately, what kind of universe emerges.

Just as the strings of a piano have resonant frequencies, so do the vibrating strings of subatomic reality. Whereas the strings of musical instruments produce notes, string vibrations produce particles.

The forces of nature also emerge from string vibration patterns. As a result, all matter and forces known become notes on a universal string.

Particle properties are a manifestatinof resonant pattterns of string vibrations as well.

Stretching the metaphor, there is a school of thought that this framework can be brought to bear on the more complex systems which have emerged in our universe, including life and consciousness.

While chaos theory and complexity science show new laws come into play as system compexity increases, there is a belief that those new laws may ultimately be found to be consistent with the deeper mathematics of string theory.

It takes a while to digest even the conceptual, much less the mathematical, framework of string theory. If right, it posits a multidimensional labyrinth of interconnected structures mysteriously intertwined with our notions of space and time.

In conventional physics, events occur in four dimensions. They can be undersood in the context of four factors.

In quantum mechanics, the microscopic properties of space become dissimilar to the analogous properties in classical physics. The notion of a violent quantum foam versus the smooth surface of relativity causes and results in mathematical incompatiblity between the theories.

The standard model of particle physics posits a world of pointlike objects. String/Superstring Theory unveils a cosmos emerging from a microscopic landscape of strings whose vibrations emerge as symphony of reality.

Everything in the universe emerges from vibrating strings.

When strings and their vibrations are fundamental (rather than point particles), the incompatibility of microscopic spatial structures between relaivity and quantum physics vanishes.

Supersymmery is part of string theory. Fermions and bosons are paired, symmetric, in a supersymmetric universe, and the mathematics becomes more elegant as dimensions are added.

Fundamental properties of the universe depend on the number and structure of dimensions in which the fundamental strings vibrate.

In supersymmetry, Hamiltonians commute with supercharges and Lagrangians are transformed to produce mixed bosonic and fermionic fields. Dirac and Pauli matrices are utilized in the representation, and a supersymmetric Lagrangian emerges.

A particular class of six dimensional spaces known as Calabi-Yau spaces have the geometric struture required to meet the mathematical properties of the theory

The mathematics of string theory is important in its own right. Even if it is found that string theory doesn't fully describe our universe, the underlying mathematics has blazed new trails of understanding.

As Robert Pirsig said in Zen and the Art of Motorcycle Maintenance,"...the stream of national consciousness moves faster now, and is broader, but it seems to run less deep...Some channel deepening is called for."

There are a number of cosmic and subatomic implications of the math of string theory. These will be explored throughout my blogs.

Like a Beethoven Symphony, or Mozart Concerto, our world is a labyrinth of elements which emerges in a much more beautiful form than could be predicted from an assemblage of the parts.

The solution of a wave equation can be written in terms of a superposition, a Fourier expansion. The symmetries of the Lagrangian, the energy momentum tensor, and the Hamiltonian which governs time evolution of the worldsheet are elements of the classical analysis of strings.

The quantum extension of classical theory involves covariant quantization and Virasoro constraints. At this point there are 26 space-time dimensions.

Conformal field theory is used in peturbative string theory. A conformal transformation maps a region of the complex plane onto a more workable space.

In T-duality, open strings with Neumann boundary conditions are transformed to those with Dirichlet boundaries.

Spacetime supersymmetry involves superfields, superspaces, Grassman coordinates, and Green- Schwarz formalism.

In conclusion, string theory develops a mathematical framework by which to model the essence of all subatomoic activity. It shows that at the deepest level, reality may be interconnected and multidimensional. This has profound philosophical implcations.

This concludes our blogs on the mathematics of subatomic interactions. (whew!)

The next blogs in Mathematical Universe will deal with the mathematics of larger systems, up to and including the global economic system.

Lee

Tuesday, January 27, 2009

The Math of Quantum Field Theory

This is the third in a series of blogs on the mathematics of reality.


It is not about the math! It is about getting a feeling for some of the words and methodologies underpinning the scientific advances of recent decades. It is those advances that have hailed the dawn of a new era of understanding.

We met many of the concepts that will be in this blog in the prior one on quantum mechanics. Quantum Field Theory is essentially just an extension of quantum mechanics.

In quantum mechanics we saw that mathematical operators function as observables. The Schrodinger wave equation gave the motion of a particle in one dimension and that structure can be extended to handle multiple particles.

No wave equation we have met so far, however, can be used in both relativity and quantum theory. Attempts to merge realtivity and quantum mechanics were attemped in the equations associated with the names of Klein-Gordon and Dirac, but it was the introduction of fields for wave equations that allowed the theory to truly advance.

The Dirac equation is like the Schrodinger with a modified Hamiltonian. Dirac fields satisfy the Klein-Gordon equation and relativistic relations among energy, mass and momentum.

Solutions to the Dirac equation can be found in momentum space using a Fourier expansion.

The Klein-Gordon equation emerges from a substitution of the quantum mechanical operators for energy and momentum into the Einstein special relativity energy, mass, and momentum relations. By viewing the equation in the context of a field rather than a particle, creation and annihilation operators are allowed to arise.

Lagrangians play a major role in all theories of mass and motion. A Lagrangian equation can be constructed by taking the difference between the kinetic and potential energies involved.

In classical mechanics, Lagrangians (Euler-Lagrange equations) are used in deriving equations of motion. In field theory they are used to derive field equations.

A Hamiltonian equation can be derived from the Lagrangian and momentum representations.

Symmetries leave the form of the Lagrangian and equations of motion invariant.

Path integrals allow for calculation of amplitudes of quantuim transitions. In classical mechanics, the path is deterministic. In quantum mechanics , there is no trajectory per se, only path integrals.

In classical physics, there were two components, objects and the fields which linked them. Quantum physics tells us that particles are mere manifestations of fields.

Like many findings in quantum physics, this has deep philosophical implications. At the core of reality is not a thing, but a connection. Everything is connected, and elements have no meaning in isolation.

In quantum theory, predictions involve calculating probability amplitudes. The S-Matrix is one of the tools used. Feynman Rules allow for fairly straightforward calculation of amplitude/probabilities. Feynman Diagrams show particle actions (scattering, decay...).

The mathematics of group theory formalizes symmetry structures. Unitary groups (U1) are important because unitary tansformations leave probabilities for transitions among states unaffected. Unitary operators commute with Hamiltonians.


SU(2) symmetries are important in electroweak interaction work, and SU(3) symmetries are important in strong force/quark study (QCD).

The standard model includes QED and QCD. Quantum Electrodynamics (QED) works with electromagnetic interactions. Electromagnetic forces arise from photon exchangeof electrons in an em field. Feynman Diagrams illustrate QED processes.

QED explains the behavior of charged particles in an em field within the framework of quantum theory. Chemistry rests on the behavior of the electrons surrounding the nucleus of the atom.

The number of particles which had been detected by physicists by the mid twentieth century was large, not unlike the number of elements which Mendeleev was able to classify for chemistry.

In the 1960's, Murray Gell-Mann and Israel Ne'eman were able to classify particles. into patterns based on qualities called charge, spin and strangeness.


Initially the particles were grouped into eight patterns, and the name given to the system was the Eightfold Way. Particles in the nucleus, neutrons and protons, were actually found to be made up of more fundamental entities called quarks.

After a good deal of mathematical gymnastics, involving symmetries, Yang-Mills equations, Abelian Theory, renormalization, and the Higgs Mechanism, we came up with Quantum Chromodynamuics(QCD).

In QED. gauge invariance (U1) involves a Lagrangian for the em field, a Dirac Lagrangian, and an interaction term.

The combination of QED and QCD gives rise to the standard model of physics which describes the entire particle world, the nature and interactions of fundamental particles. Remember that in particle physics, particles have wave as well as particle characteristics.


The three fundamental interactions (forces) in the standard model are electromagnetic (em), "weak", and "strong".

Each force is manifest in a "particle". For each interaction there is a field. The generators of the field come from the unitary group which describes the field symmetries.

Elementary particles develop mass in their interaction with a mathmatical formalism called a Higgs Field. While no such field has been found, it is needed for the math of the standard model to describe the fundamental entities in our universe and their interactions. It is often the case that mathematics predicts the existence of an element of reality before our experiments can detect it.

Adding gravity to the standard model has not been accomplished. Relativity and quantum mechanics are mathematically incompatible. String theory, which we will visit in the next blog, is one attempt to create a theory that encompasses all four forces.


In the next blog, on the mathematics of string theory, we will attempt to bring together the philosophical and mathematical implications of discoveries in particle physics.


Lee

Sunday, January 25, 2009

The Math of Quantum Mechanics

As was the case with relativity theory, there is a structure to the mathematics of quantum mechanics.

A good starting point is the Schrodinger Wave Equation. A wavefunction gives information about the "state"of a particle. The Schrodinger equation describes particle behavior over time.

Because in particle physics the place and velocity of a particle cannot be simultaneously determined (due to the basic wave-particle duality of fundamental entities), it is the probability of finding particle in a particular space that is determined by the wave function.

Particles interact as waves, but arrive probabilistically as particles in space and time.

Another way of arriving at a picture of quantum processes is to arrange observables in a matrix.

Perhaps the most intriguing insight of quantum mechanics is that at the most fundmental level, reality is connected. This means the interactions, the events, the processes are what is real, not the entities.

This one insight responds to centuries of metaphysical speculation about the nature of reality. Combined with the ideas of entanglement and nonlocality, this takes us to a place where metaphysics and ethics may intersect.

Is it possible that being responsible for our environment and fellow citizens is hardwired into our nature? That when we diverge from this ideal we go against the grain of our being and cause injury to ourselves?

Admittedly this a lot to digest if you are not familiar with quantum physics. Basically what particle physicists have found is that at the most fundamental level, nature is neither mass nor energy, but a "combination" of both.

When we talk of quarks, electrons, strings, and other subatomic entities there is no mental picture possible. Only mathematical formalism which leads to abstract metaphors.


The names associated with the developments of quantum mechanics include Schrodinger, Heisenberg, Planck, Bohr, Dirac, deBroglie, Pauli, and Einstein.


They all developed significant parts of the theory and performed amazing mathematical wizardry in the process.

Schrodinger's wave function was accompanied by Heisenberg's matrix, Bohr's atom and deBroglie's duality. Heisenberg Uncertainty, Pauli Exclusion, Dirac's Sea, and Bohr's Complementarity were critical perspectives.

The fact that the extension of the wavelength described by the Fourier Transform cannot be made arbitrarily small is another way of viewing Heisenberg Uncertainty.

Uncertainty, probability, is built into the very structure of nature as we see it. Wave intensity is linked to probability and wavelength is linked to momentum. The very nature of particle position and movement is ethereal and fuzzy.

Before going too deeply into particle physics, it is instructive to visit aspects of classical mechanics.

We should consider how Newton's laws bleed into quantum mechanics.

Newton's Second Law of particle motion relates force, mass and acceleration. Classical particle dynamics rests on this law. The Euler-Lagrange Equation generalizes the law for particle motion. Hamilton's Principle provides for the simplification of the math of particle trajectory.

Hamiltonians and Lagrangians are key elements of the math structure of classical mechanics and they are key to quantum mechanics as well. They provide for robust evaluation of particle dynamics and field theory.

The Lagrangian determindes the amplitude of a particle's wave and therefore the probability of tha associated particle's existence.

Feynman diagrams allow us to visualize the results of particle interactions.

A system of n particles is described by 3n differential equations. Hamiltonians simplify multi-dimensional calculations.

Finding the probability that a particle is in a region of space involves integrating the wave function. The time indepenent Schrodinger equation has an eigenvalue form.

The Hamiltonian can be used to determine the possible results of the measurement of the energy of a wavefunction. The eigenvalues of the Hamiltonian are the energies of the system.

The trajectory of an electron is determined by position, speed, and force. Interactions between matter and light involve em fields and photons.

Operators are critical components of the math of quantum mechanics. Operators work on wavefunctions and assist in the measurement of values. Observable events, those involving position and momentum are represented by operators.

Eigenvalues of a matrix which represents an operator give measurement results. Eigenvalues of matrices representing Hamiltonians are possible energies of wavefunctions. Eigenvectors of a Hermitian matrix can be utilized in developing simlarity transformations.

A particle's motion can be represented in either position or momentum form. Fourier transforms relate these two forms. In quantum mechanics much of the activity occurs in mathematical spaces like Hilbert Space.

In state space, functions take the role of vectors. Spaces of any number of dimension are mathematically constructable.

For a vector space, the number of vectors in a basis gives the dimension. To make basis vectors orthonormal, the Gram -Schmidt procedure is employed.

Eigenvalues and Eigenfunctions of Hermitian Operators acting on functions of continuous variables provide additional imformation on particle behavior.

Wave mechanics can give a complete theory of events in the absense of relativity. Dirac equations allow for relativistic and field effects. Fourier analysis gives particles freedom by releasing confinements inposed by wave equations.

Studying atoms and molecules involves working in three dimensions.

Again, this all sounds a little abstract if we don't keep our eye on the prize...that all this math ultimately tells us what is going on deep in the heart of nature, ourselves, and in others. That knowledge can lead us to a deeper understanding of the mysteries of existence which have puzzled philosophers for millenia.

Lee

Saturday, January 24, 2009

The Mathematics of Relativity

This blog is meant for readers with a modicum of interest in the mathemtics of reality.

While no mathematical background is necessary to enjoy this blog, mathematical interest is.

This particular blog will discuss the mathematics of relativity. Later blogs will discuss the mathematics of quantum mechanics, quantum field theory, string theory, complexity science, economics, finance and actuarial science.

Descriptions like that which follows can be found in many relativity publications. In this blog we will be following the formalism laid out in Relativity Demystified.


The mathematical structure of relativity is as straightforward as it is complex. Einstein's special and general theories of relativity change the way we think about our world. Many phenomena of common sense fall within the mathmatics of relativity.

The basic idea flows from a series of mathematical relationships. In 1865, physicist James Clerk Maxwell published his equations which posited that electromagnetic (em) waves exist, and move at the speed of light. Electromagnetic fields can be shown to satisfy wave equations using simple vector calculus.

This is important, because wave equations are used extensively in physics to model physical events. It is important in the context of relativity because it can be shown that em waves (light) always travel at the same speed. It is the constancy of the speed of light in all frames of reference which leads to many of the unique elements of relativity theory.

In Newtonian physics, distances and times are fixed. When it was discovered that waves don't need a medium in which to travel, a mathematical tool called a Lorentz Transformation was applied to explain the results.

Newton used two equations to describe gravity. The first describes the path of a particle through space. The second describes how mass acts as a source of gravity.

Einstein's equations have similar form. In general relativity, the energy-momentum tensor acts as a source of gravitation, and relates to the curvature of spacetime via the Einstein equation.

Symmetries lead to conservation laws. In relativity, Killing vectors can be used to tease out symmetries. The motions of particles and light waves in spacetime involves Lagrangian methods which we will deal with in the math of quantum mechanics blog.

In terms of these blogs, it is important to note that understanding the mathematics of relativity is not just an abstract exercise. Harmonious Universe posits that a metaphysics based on mathematics and science is at least a possibility.

From the mathematics of relativity, particle physics, chaos theory, complexity science and actuarial science, patterns can be seen which point to the possibility that all of reality can be understood at a deep level. The evolution of the universe itself is mathematiclly derivable.

These ideas can be followed without understanding the math, but understanding the math enhances the insights.

Getting back to the math of relativity, now that we have a basic framework, we can begin to build the mathematical structure. The study of relativity involves what most physics does, the analysis of events.

In physics, events occur in a framework. That framework usually involves space, time, matter, and energy. Elements of matter and energy interact in space and time and reality emerges from these interactions.

Galilean Transformations were used to study how phenomena appear to different observers in Newtonian Mechanics. In Relativity Theory, Lorentz Transformations apply.

Among the tools used in developing some of the key elements of Relativity theory are, vectors, tensors, metrics, and manifolds.

Vectors are simply symbols which represent magnitude and direction. Tensors map from vectors to the real numbers. Metrics describe three dimensional space. Manifolds are continuous spaces of points that can be curved globally, but locally are Euclidean.

Many tools of mathematics have as their primary role the simplification of calculation and analysis. Transformations often accomplish this quite directly.

One example is a gauge transformation which is quite prominent in quantum theory, and is used in relativity to tease out wave equations.

In relativity, much of the theory is nonlinear, but can be worked on using linear methods which are much more manageable.

Lie derivatives, Killing vectors, Riemann tensors, Ricci tensors, Cartan Equations, and Einstein's field equations are all in the relativity tool box.

The most famous equation of all, e=mc**2 came out of these elements


From relativity theory came a new vision of the world and a new way of living.

Einstein's relativity theories changed the landscape of the human enterprise. Combined with advances in particle physics, it changed metaphysics itself.

Lee

Thursday, January 22, 2009

Organic Universe

The idea of deep ecology is intriguing.

It is especially intriguing if there is evidence that the cosmos is an organism in the sense that all its parts are working together.

Like the human body, if all the parts are in synch, the cosmos is operating at peak efficiency. If some parts are out of synche, optimality is compromised.

Like a perfectly symmetric universe, a perfectly organic universe might not be as interesting as the one we inhabit. There may be a middle ground, however, where there can be optimal happiness while diversity and mystery continue to abound.

When we talk about our part of the cosmos, the earth, the discussion becomes more immediate. On the planet there are a number of ecosystems which support the quality and nature of our existence. The atoms which make us up are the same as those which make up every other element of he universe. They also may be entangled with every other atom.

The rocks, trees, animals and lakes resonate in some sense to the same rhythms as our bodies.

To the extent we destroy any part of this web, we diminish some aspect of our being.

Balance, The Golden Mean, The Golden Rule, all notions to help us navigate in these tricky waters.

The time honored goals of beauty, justice and truth emerge from a truly integrated physical, mental, and spiritual being.

Lee

Dimensions of Science

This is my science blog, and it is a good time to put out some ideas which can be explored more deeply in the future.


In Fire in the Mind, George Johnson explores the search for order as reflected in scientific and religious speculation. He compares and contrasts views of the scientific and spiritual communities, particularly in the area around Santa Fe, New Mexico.


The way we carve up the world determines how we perceive it. Physicists see quarks, electons, waves, fields, symmetries and fractals as part of the scaffolding on which our experienes are based. The more we try to contain reality within our perceptual structures however, the more it resists.


Like the scientists who labor in the New Mexico laboratories and look for clues about the existence of everything, so the Tewa labor and wonder. The Tewa "...have woven a tight web of concepts..." into a worldview as well.


We are all trying to make sense of a world which began in mystery and which is connected in ways we cannot yet grasp.


What the scientists in New Mexico and other places have found is that there are patterns which are common to simple and complex systems as well. This gives credence to the notion that there is an overall web of harmony in which all reality is embedded.

Since mathematics is the best tool we have for discerning these patterns, and since mathematics, even aided by advanced computer science, is very crude way of uncovering patterns of systems more complex than the atom, there has been uneven progress in the quest for an overall understanding of reality.

Can Schrodinger Waves be extended to apply to superatomic phenomena?

Can Heisenberg Matrices make the output of experiments on complex systems meaningful?

Can the universality buried in fractal structures explain social phenomena?

Is there a Dirac Sea from which social and economic phenomena emerge?

Certainly worthy questions at least.

In The Quark and the Jaguar, Nobel Prize winning scientist Murray Gell-Mann, gives us a glimpse of his ideas which build from subatomic structures like quarks to complex systems like jaguars.

Gell-Mann is the man who made sense of the "particle zoo" which had been vexing particle physicists in the mid twentieth century. He was also one of the founders of the complexity science movement in the 1980's.


Complexity science is a term which has come to be associated with a movement which brought together thinkers from all areas of thought to probe deep questions. In the process they found commonalities among what were thought to be distinct disciplines.

Economics had uncovered patterns which were also apparant in physics. Biology overlapped with chemistry and physics. Sociological patterns bore resemblance to physical patterns. Patterns of aesthetics often mirrored those of nature.

If we can build a metaphysics which can encompass all phenomena, not just physical phenomena, we will be on the path to a level of understanding which could lead to world harmony.

The tools are emerging.

We are ready to interpret their findings

Lee

Silent Spring

"There was once a town in the heart of America where all life seemed to live in harmony with its surroundings."

So began one of the most influential books in the history of our nation.

When Rachel Carson wrote Silent Spring, few Americans were aware of what has since become known as the environmental crisis. For the first time Americans were informed that economic activity can have consequences which are not foreseen in economic calculations.

A few years earlier, John Kenneth Galbraith had raised the alarm in a slightly different way in his book, Affluent Society.

"The shortcomings of economics are not original error, but uncorrected obsolescence."

Galbraith decried the lack of value put on "public goods" for which there may not be effective markets at a point in time, but which are essential to society's meaningful survival.

Charles Reich took up the mantle a decade later with The Greening of America.

"There is a revolution coming. It will not be like revolutions of the past. It will originate with the individual..."

These words are eerily apt today. A revolution began anew on January 20, 2009 and its echoes will be felt for generations.

In his last campaign, Bobby Kennedy said, "Too much and too long we seem to have surrendered community excellence and community values in the mere accumulation of material things...Our Gross National Product...counts air pollution,...the destruction of our redwoods and the loss of our natural wonder..."

"Yet the Gross Natoinal Product does not allow for the health of our children, the quality of their education, or the joy of their play......the beauty of our poetry...neither our wit nor our courage..."

The common thread in all this musing is that traditional economic thinking accounts for only a part of the nation's quality of life. Yet our economic and financial models still ignore anything considered unmeasureable.

Are we ready for a real economic transformation?

Are we ready for a sustainable economy?

Are we ready for govenment spending, bailouts, stilmuli, and regulatory activity which increases the long term welfare of our citizens?

Are we ready to use the best minds and technologies to solve our problems?

Can we do it?

Yes we can.

Lee

The Metaphysics of Harmony

As our official philosophy blog, Actuarial Universe will explore issues of ultimate reality.

There are many ways to approach ultimate reality. Many of them may be right. Some converge upon unity as the ultimate "value."

What is striking about the unity perspectives is that science and mathematics now lend support to that idea.

From Plato to Kant, Shakespeare to Locke, the idea that ultimately all is one prevails.

Now, the deepest calculations and consternations of scientists and mathematicians go there.

The Standard Model of Particle Physics gives the entities and interactions which define reality at the subatomic level. The particles and waves are virtual and probabilistic. They exist in a web of connections, called fields, and appear to be entangled.

They may emerge from dimensions beyond those our intellects and senses can perceive. When the clouds of energy within the nucleus "interact" with the electron clouds surrounding it, atoms emerge.

When the electrons of these atoms "interact "with those of other atoms, molecules emerge.

From molecules emerge the objects of chemistry and biology.

As we move up the ladder of complexity, the original elements become part of a framework which doesn't seem to reflect their origins. Only recently have scientists begun to uncover connections among complex objects which have patterns similar to those at the subatomic level.

Words like chaos, fractal, and self-organization begin to emerge from this haze of super-atomic reality.

The fact is that there is now a metaphysical scenario, supported by a partial mathematical structure, which portrays a universe in which everything is connected.

From the Big Bang to eternity, there is an underlying symmetry which connects everything at creation. The symmetry at Creation was perfect. It broke as the world cooled and structures which eventually emerged into us emerged. At the core of everything however is the primordial connection.

There are many ways to slice ultimate reality. One is the way that education has been divided. Philosophy, science, art, politics, history, economics, all part of a tapestry of human understanding.

From a scientific point of view, reality is the things we see and feel and their constituents. Nature, humanity, society, the cosmos, all part of a tapestry which scientists explore.

Reality can also be looked at as the sum of human intellectual activity. Plato's Forms, Kant's Categories, Shakespeare's Complementarities, Smith's Invisible Hand, Rousseau's General Will, Pirsig's Quality, Heisenberg's Uncertainty, Dirac's Sea, Schrodinger's Wave, Mandelbrot's Fractals, Mozart's Harmonies, a mosaic of truth and beauty.

Another perspective on ultimate reality is as the envelope of realms. There is a cosmic realm, a philosophical realm, a complex realm, an economic realm, a chaotic realm, a classical realm, a subatomic realm, a human realm, all creating a vision for our minds and bodies to experience.

Stay tuned.

Lee

Wednesday, January 21, 2009

Morning has Broken

"Nineteen Sixty-Eight had the vibrations of an earthquake about it. America shuddered.History cracked open..."

So began Time magazine's exploration of the last year of hope before now in America and the world.

American history has endured many tragedies and triumphs. Among the latter are the forming of the union, the wisdom of the Founding Fathers, Abraham, Martin, John, and Bobby, and now Barack and Michelle.

In 2009, we are on the edge of a knife. On one side is the end of the American dream. On the other, a transformed society positioned to continue the journey begun in 1776.

For 40 years we have wandered in the wilderness. Bogged down by senseless wars, erratic goverment policy, fiscal irresponsibility, hypocrisy and ignorance, we have landed on the edge of a cliff.

We can back away. We can find a way to expand the economy in a sustainable way.

The Obama team has identified the core problems and is poised to fix them. They are also faced with intransigence, diminished resources, and vast debt.

To walk through the minefield on the other side of which is a new America will require the best minds and resources. America has them, but they have been hidden for decades.

Complexity and Actuarial Science, Quantum Mechanics, and Economics provide tools by which to direct government activity into the areas which will avoid the mines and expand the economy in a sustainable way.

We need an economy which will support our promises to those who are in poverty through no fault of their own, to the sick, to the retired, and to others in need.

We need an economy which provides opportunity to all who are able to work, and which is sustainable.

We need a society with liberty and justice for all.

Yesterday's Inauguration was the first step in the journey. Just as Washington, Jefferson and Lincoln found the path from despair to hope, so can Barack.

He has asked for our help. Can we respond?

Yes we can.

Lee

Monday, January 19, 2009

Paradigm Actuaries and The Secret

The Secret is that the truth is not as elusive as we thought.

In a world of poverty, suspicion, ignorance, hypocrisy and irony, the deeper reality is that we are closer to an understanding of true being than ever.

Physicists "looking" into the nucleus of the atom have discovered that the fundamental "thing", the core of everything is an interconnected web of virtual energy.

The atoms which make up all nature, from trees and oceans to rocks and people, are part of a larger tapestry, a tapestry which eludes our instruments and intellects.

Plato, of course, sensed this in his Forms, as did Kant in his Categories and Hegel in his Spirit. Pirsig sensed it in his Quality as did Martin in his dream.

The difference is that, until now, there was no solid mathematical and scientific foundation for a worldview which embraces unity and harmony.


The metaphors of particle physics and complexity science, the waves, quarks, fields, spaces, groups, uncertainty, complementarity, exclusion, entanglement, fractals, emergence, symmetries, topologies, dimensions...all elicit a sense of connectedness, transcendence, holism...

This holism is the basis for a new metaphysics grounded in the mathematics which propels the metaphors.

Philosophy, science, politics, economics, art, and proper public policy all emerge from the idea that, at its core, reality is connected and transcendent. This idea makes all prior metaphysical speculation coherent.

It also gives us a path to a brighter future.

Yes we can.

Lee

Sunday, January 18, 2009

Hunter, Matt & Lee

In the current issue of Rolling Stone, Matt Taibbi says to a clueless "W " who doesn't understand why people don't appreciate his service...

"OK, here it is.You're the child of two emotionally abscent aristocrats who denied you any kind of love and affection..



You grew up resentful and lacking completely in any natural gifts or curiosity...You were aided in (this) quest by a bunch of narrow-minded lackeys...who...manipulated your obvious Oedipal resentments...



...you're about to spend the rest of eternity pondering your now-official legacy as the worst and most pigheaded leader in the history of Western democracy, a man who almost single-handedly sank the mightiest nation on earth by turning the Presidency into a $50 trillion therapy session that ended in two disastrous wars, a financial crisis...and a legacy of corruption on a scale not seen since the Borgias..."


Of course, Matt is gentle when put beside Hunter Thompson who, in Generation of Swine said about poppa Bush..."It is difficult for an ordinary voter to come to grips with the notion that a truly evil man, a truthless monster with the brains of a king rat and the soul of a cockroach, is about to be sworn in as President of the United States..."


Now, since the point of my blogs is that there is hope in America to restore the dream of our Founding Fathers, I don't want to dwell too much on the dark side.


In a world of Platonic Forms, dancing waves of inter-connected energy, and fields of harmonic resonance, there is much about which to be hopeful.

A true leader is to be sworn in tomorrow. He will be in a position to transform the country not just economically but spiritually. The values of life, liberty and true happiness can be combined with courage, integrity, compassion, truth, justice, beauty and wisdom to create a tapestry of hope not seen since 1968.

The American spirit as manifest in the lives of Washington, Jefferson, Lincoln, Martin, Bobby and now Barack has never been more healthy. We can overcome the obstacles which have arisen in recent years.

Yes we can.

Lee

Saturday, January 17, 2009

The Obama Economic Plan-An Agent Based Model

Our new President will be sworn in Tuesday.

His first priority will be to "fix the economy".

Unless someone in his circle knows about agent based modeling and other complexity science and actuarial tools, he will fail.

The current plan appears to consist of the following as the next "phase" of the "stimulus/bailout":

$550 billion for infrastructure, science, energy, and education programs over two years.
$275 billion in tax cuts for businesses and consumers.

Sounds good.

But has anyone done a cost-benefit analysis of how this spending in conjunction with the other $2.8 trillion in government spending will transition us toward a sustainable future of fiscal wealth and harmony?

We want it to be easy. Just pick out a few programs and, boom, economic nirvana.

Not.

We've tried that.

Now we are $60 trillion in the hole (Don't forget Social Security, Medicare, Veterans benefits...), are adding about a $ Trillion a year, and GNP is tottering as global resources decline.

If some measure of GNP doesn't start to grow dramatically, game over.

Happily, there is hope. In the labs of Los Alamos, Santa Fe, Batavia, Champaign, Ann Arbor...models have been developed which can definitively show how expenditures can ripple through a global economy and which can test alternative approaches.

We can use these models to find stimulus and bailout programs which could actually create an engine of economic growth for the U.S.

These models didn't exist in the 1930's, so trial and error had to happen in the real economy. We can now simulate the economy and test various scenarios. That way we can have a sense of long term welfare effects of whatever expenditures are deemed worthy.

Isn't it worth the effort?

The alternative is to keep randomly throwing money at a system which has proven itself incapable of meaningful transition.

Our production systems, housing systems, transportation systems, healthcare systems, financial systems, education systems, welfare systems...are all interconnected.

All must be transformed simultaneously for real change to occur and real welfare to be increased

Are we up to the task?

Yes we are.

For more go to paradigmactuaries.com

Lee

Thursday, January 15, 2009

Putting People First

Putting People First (PPF) was the "plan" Bill Clinton and Al Gore published in 1992 to "...fight for what Americans deserve".

How'd that work out?

Since we have been kind of hard on the man who succeeded Clinton, it behooves us to look at how Bubba did. After all, by 2000 the American public was so disgusted with Billary that they elected a total moron to lead the free world.

The plan (PPF) involved "...good jobs, world class education, quality healthcare, and safe streets and neighborhoods."

"Our national strategy will reward the people who work hard and play by the rules. "

WOOPS!

"Increase corporate average fuel economy standards from the current 27.5 mpg to 40...45..."

TRIPLE WOOPS!

What happened?

Within days of entering the Oval Office, Bubba was being coopted by the Republicans. He started making deals with the devil immediately, and after the blue dress incident totally rolled over.

Now except for Ken Starr and a few other voyeurs, nobody really cared what Billy did in his spare time. God knows that to the extent Republicans have sex at all it is weird sex.

Unfortunately, Bill's propensity to deny his otherwise normal sex drive made it impossible for him to govern once he was outed.

In fairness, notwithstanding his moral cowardice Bubba did make government work better than had daddy Bush.

And in retrospect, it was heaven compared to "W".

But should that be our standard?

Kinda reminds me of Gary Hart's 1983 campaign book, A New Democracy, where he begins,

"America's character is being tested..."

How'd that work out?

Now compared to Newt Gingrich's cancer deathbed present to his first wife (that he wanted to leave her for his second wife who he later dumped for another...) the Democrataic pecadillos are hardly worthy of mention. Unfortunately, the way Dems handle getting caught condemns them to eternal fury from hypocritical, self-righteous Republicans who periodically emerge from the closet to condemn others.

This all sounds a little negative.

Well guess what?

In a few days we will have a President who seems to have character, intellect, integrity, wisdom, and a bunch of other good traits. And we shouldn't care what he does in private as long as he moves the planet toward peace and harmony.

Yes we can.

Lee

Wednesday, January 14, 2009

George & Laura (G&L)

The Bush's are a gift that keep on giving. From Sr. & Babs to Jeb & George, nothing but wisdom and sacrifice.

G&L's going away present is to let us know how lucky we are that they have led us for the last 8 years. Notwithstanding the destruction of the world and U.S. economies and ecologies, the grinding up of the American war machine, hundreds of thousands of dead and disabled world citizens and soldiers sacrificed to a phony cause, the end of America's leadership in the world, budget deficits that will haunt all future Americans, and a general malaise caused by a decade of hypocrisy, they are going back to Texas proud of their legacy.

If we've learned anything from this disaster of a Presidency, hopefully it is never again to elect a President who neither reads or writes. A President with no values and no understanding will never be able to rise to the level of vision needed to deal with the problems faced by the occupant of the office (can you say Palin?).

This year we had a choice, and we made it. Our new President has wisdom, humility, integrity, and the courage of real convictions. He reads and writes and thinks before acting. Like Bobby Kennedy and Martin Luther King, he believes in justice and pursues the truth.

If there's anything to be grateful for in America today it is that the long nightmare of Republican rule is at least temporarily ended. If the Democrats can resist the temptation to become their usual dopey selves, we may have a chance for a few years of governmental sanity. That could actually put us back on the path to harmony.

Lee

Quantum Universe

The notion of a quantum universe brings into metaphysics the metaphors of quantum mechanics. This means that the fields, waves, quarks, dimensions, electrons, uncertainties, entanglement, complementarity, and spaces which pop out of the mathematics of particle physics can be put in a philosophical framework.




This is important, and largely unreported. The fact that Plato's Forms, Aristotle's Chain, Kant's Categories, Bacon's Idols, Hegel's Spirit, Shakespeare's Complementarity, Rousseaus's General Will, Smith's Invisible Hand, Newton's Mechanical Universe, Sartre's Existence, King's Dream, and Pirsig's quality can now be put into a mathematical and scientific framework allows us to transcend prior philosophical dead ends.




Much of the substance of recent findings in particle physics points to an interconnected, interdependent, unified world. The particles which become atoms which become molecules which become cells which become us are ethreal, probabilistic (in our three dimensions of space), fuzzy, connected clouds of virtuality.




As we move higher up the chain of understanding we find fractals, symmetries, emergence, and webs, which ultimately describe nature and humanity.




Plato couldn't have known of this structure. He didn't have the mathematical, scientific, technological and philosophical tools which have arisen in the last century. Neither did Newton, Kant, Nietzche or James.




All the musings about mind and body, permanence and change, universals and particulars, empiricism and rationalism, appearance and reality, idealism and materialism, classicism and romanitcism, chaos and order, skepticism and belief, and other dialectical pairs are transcended and superseded by the findings of modern particles physics.




Modern particle physics demonstrates with mathematical structure how reality emerges from its fundamental constituents. From that core evolves a whole new metaphysical structure which contains all prior structures.




The dualities of Quantum Mechanics transcend those of classical metapyhsics. Wave-Particle, Matter-Energy , and Space-Time all point to an ultimate reality which is connected, transcendent and holistic




When the mathematics of particle physics is combined with that of complexity and actuarial science, a full standard model of everything can emerge.




Lee

Actuarial Universe

This entry in each of my blogs will outline the blog structure.

The blogs are:

Name; Content; Address

Huffingtonpost; General; huffingtonposta.blogspot.com
Art of Hardball; Politics; slatea.blogspot.com
Quantum Universe; Science; rollingstonea.blogspot.com
Mathematical Universe; Math; paradigmactuaries.blogspot.com
Actuarial Universe; Philosophy; dailybeasta.blogspot.com

My website is paradigmactuaries.com

Lee

Monday, January 12, 2009

The New Structure of Mathematics

Our blogs will now become somewhat specialized.

Huffington Post will be a general site...Harmony.

This blog, Mathematical Universe, will deal with the underlying mathematics of Harmonious Universe...truth.

Quantum Universe will deal with the underlying science...beauty.

The Art of Hardball will deal with the underlying politics and economics...justice.

The new structure of mathematics will build up from the deep structures of pure and particle mathematics through the cobbled structures of economics, finance and actuarial science.

The unifying structures will be those of complexity science. At it s most basic level, complexity science is the application of the most advanced computer and analytical structures to the most advanced problems of society.

It is the structure which emerges when the best scientists apply their deepest wisdom to the deep problems they attack.

No one will have to go back to school to follow this blog. A major point of the new structure of mathematics is that it be coherent to a general audience.

That doesn't mean sacrificing analytical robustness. It merely means organizing and explaining the tools better.

The new structure itself naturally starts with pure mathmatics. This involves mathematical structures that don't necessarily relate to anything we observe.

It should be noted that much of what is originally considered pure mathematics is ultimately found to apply to real problems. Similarly, much applied math (ie. that being developed in string theory) is often found to be pure.

The first level of mathematics beyond pure math is that being used in particle physics. One doesn't have to be able to manipulate Lagrangians, Hamiltonians. Hermitians, Laguerre's, Legendre's, Fouriers, Path Integrals, Hilbert Spaces, Lie Groups, Topologies, or Tensors to know that Schrodinger Waves, Dirac Seas, Feynman Diagrams, Pauli Exclusions, Planck Lengths, Heisenberg Uncertainties, and Maxwell's Equations help us understand how fundamental particles waves and fields become atoms, molecules and us.

The mathematics of particle physics points us to the mathematics of chemistry which in turn points us to biology. Neurology and psychology are on the same trajectory . Now society itself is in view mathematically.

This is where complexity science really shines. Along with some of the structures of chaos theory (fractals, universality...), complexity science is cobbling together a mathematics of everything.

Skeptics will say that humanity and its institutions are too complicated to approach mathmatically. There is some wisdom in that skepticism if not taken to far.

Remember that if we don't use the best math, we will use an inferior one, like the math behind the models which have missed all the recent global meltdowns.

What we are saying is that complexity science gives us a conceptual framework by which to combine the best math and computer science being used in the labs and universities with that being used in business and government. By considering connections among econometric, actuarial and financial models with those of Quantum Mechanics, String Theory and Relativity we will find better ways of connecting mathematics and our realities.

That will put us in a better position to anticipate problems and resolve them so as to optimize human welfare.

Is that not a worthy goal?

The journey begins.

Lee

Tuesday, January 6, 2009

Quantum Education

A new worldview calls for a new structure for education. How can 2000 year old categories still be best for 2009 realities?

Not that there's anything wrong with art, science, philosophy, science, government, economics...as areas of learning.

It's just that by learning them as separate areas of thought, we miss their essence.

Unlike Plato, Kant, Shakespeare, Newton, and Adam Smith, we know the essence of reality. Physicists have (more or less) (mathematically) found what exists in the nucleus of the atom, and how the atoms interact with other atoms to build up to the objects we sense.

Scientists have also found mathematical patterns whichc explain much reality at the human and societal level.

Since the aim of education is ultimately to find truth, it is incumbent on us to be sure that at some point that is happening. The truth is that, at its core, reality is a fuzzy cloud of ethreal mathematical metaphors.

OK, that's a mouthful.

But if true, it certainly calls for a rethinking of K-12 and college level curricula.

Not that there's anything wrong with students and adults contemplating the age old questions probed by Plato, Shakespeare, Rousseau, and Sartre.

It's just that we can go deeper and farther.

If reality begins as a swirl of multidimensional fields and probability waves which ultimately ( and mysteriously) emerge as entangled atoms, molecules, substances, cells, genes, neurons, and us, we need some new learning structures to allow this knowledge to enter our culture.

If the natural world is better described by fractal sturctures than classical, that should be part of the educational paradigm as well. And if complex structures (like us) which emerge from simpler stuctures (like quarks) cannot be mathematically compared with those simpler structures, we should be aware of that.

Now if you made it this far, you must be thinking, "Wow, that sounds deep".

Sure, but not necessarily difficult to make part of our national curriculum.

Here's how it might go:

Grades

1-6

Reading, Particle Physics, Writing, Mathematics, Arithmetic, Complexity Science .... ....

7-12

The 3 R's, Calculus for Dummies, History, Deep Science for Dummies, Sociology, Entanglement
Government, Chaos, Economics, Complexity, Arts, Transcendence .... ....

Higher Education

Liberal Arts, Physics, Business, Science, Engineering, Art, Economics, Ultimate Concepts
Government, Complexity II, Arts, Actuarial, Law, Public Policy, Unity ... ...

Of course, detailed course content will be critical to a transition to a joint classical-quantum curriculum. Particle physics as introduced to gradeschoolers will be conceptual...what are fields, waves, particles...at an understandable level.

Deep science for junior high and high schoolers will involve beginning to see the connection between the matenatical and scientific structures whihc have ben found to remarkably represent the reality at the core of the atom.

Philosophy at the college level will probe the relationships between metaphors utilized by classical thinkers (Platonic Forms, Kantian Categories, Hegelian Spirit, Sartrean Essence, Smith's Invisible Hand, Rousseau's General Will...) and the metaphors of modern science and mathematics (fields, waves, groups, spaces, fractals, particles, dimensions, lagrangians, symmetry...)

Yes we can.

Lee

Monday, January 5, 2009

A new (2009) Start

Today we will start the process of making this blog coherent. After 38 blogs, it is time for structure. Let's start with a summary of where we are.

The first few blogs focused on the global financial crisis and the fact that policymakers are not aware of or utilizing the best tools available by which to detect and resolve such crises.

Models which have been available for decades could have headed off and mitigated the current crisis if policymakers had had the wisdom and foresight to use them.

These models are being used in places like Santa Fe, Champaign, Ann Arbor, and Boston to solve deep problems. As opposed to the simplistic assumtions used by the Fed and Citibank, these models use the mathematical and computer structures developed in the most complex analysis being done, those being utilized in the area of particle physics.

Rather than assuming a simple world of normal curves and linear relationships, these models can allow reality to define itself. What we find is that much of reality is nonlinear and nonnormal. (As Dick Cheney might say, "Big time non normality and non linearity").

Not that we want to eliminate the use of Modern Portfolio Theory and its components like Black-Scholes and CAPM. Nor do we suggest that traditional econometric modeling has no place. It's just that without the refining power of complexity and actuarial science, they are pretty worthless, as recent and not so recent events have shown.

The next few blogs are kinda fun. The lack of logic used by talking heads and politicians is subjected to a case study, the (hopefully) successful nomination of Caroline Kennedy for New York Senator. The hypocrisy of the political class, particularly Republicans (and their spiritual leader, Tim Lehaye) in expanding government debt and obligations without paying for it is chronicled.

The Great Conversation from Plato to Pirsig is discussed in the context of recent findings in string theory and quantum mechanics. Saintly figures like Martin, Gibran, Jesus, Gandhi, and Wiesel (can you believe Madoff ripped HIM off?) are quoted for their wisdom.

Above all, this initial set of blogs is meant to show that the search for truth, beauty and justice is not only still alive, but well, and that we are closer than we have ever been to the true understanding which is needed for the ultimate unity to become manifest.

The next few blogs will provide structure for the ongoing conversation. We will look at education and how it can be reconstituted to provide real wisdom. We will do the same for politics, sports, and economics.

Then we will begin the journey to truth as laid out in Harmonious Universe...see paradigmactuaries.com.

Lee

Saturday, January 3, 2009

paradigmactuaries.com

The website noted in the title to this blog is complementary to the blog. They are vehicles for communicating a new vision of reality.

The book, Harmonious Universe, still to be published, describes a worldview emanating from discoveries in particle physics, complexity science, and actuarial science which provides a roadmap to unity.

Starting with the fundamental constituents of nature, the waves, fields, particles, and other components of the atom, we build up to society and its institutions with mathematics and metaphor.

This is part of a conversation which began before Plato, and will continue beyond us. It is about the eternal notions of justice, truth, beauty, love, and being.

The website describes the book and some related thoughts. Included are descriptions of analytical stuctures which have been developed to better understand our economy.

We now have 36 blogs discussing various aspects of the new perspective. Some, like Republican Think Tank are satirical. Some, like The Science of Philosophy, are academic.

In all cases, the idea is the same, probe reality to discover truth from which justice and beauty can emerge.

In Abraham, Martin and John, we look at how Martin Luther King and Kahill Gibran probe truth and set the stage for positive aspects of the 1960's.

In The Edge of Chaos, we talk of an Economic Manhattan Project to get the US economy back on track.

In The Math of Reality, we consider how institutions like the New England Complex Systems Institute and the Santa Fe Institute are moving science toward more holistic modeling. By combining the new data mining, data visualizaton and analytical structures with those of actuarial science we see how traditional modeling relative to public policy issues can be enhanced and made more valuable.

The remaining blogs continue to expand the vision . The goal is to have the blog address all issues of Harmonious Universe and put them into a lasting perspective.

Along the way we hope to find some truth of our own.

Lee

Friday, January 2, 2009

Abraham, Martin & John

Martin said, "An individual has not started living until (he) can rise above the narrow confines of (his) individualist concerns to the broader concerns of all humanity..."

He also said, "Love is the only force capable of transforming an enemy into a friend."

Kahlil Gibran said, "Life is that which we see and experience through the spirit; but the world around us we come to know through our understanding and reason."

He also said, "We are naught but frail atoms in the heaven of the infinite...If we suffer, the pain lies not in our wounds but in the very heart of Nature."

Are we ready for such words of wisdom...inspiration after decades of dreary platitudes?

Abraham, Martin and John made us feel hopeful, joyful, alive.

The dream died in 1968, but seems alive as we enter 2009.

Can we dream of a world of compassion, wisdom, truth and hope?

Will our new President repair broken world alliances, ecosystems, economic webs, minds and bodies?

Do we have the will to restore the American dream which was launched by the sacrifices of George, Thomas, and Benjamin?

Can we show the courage to leave the world a little better than we found it?

Yes we can.

Lee

Thursday, January 1, 2009

The Edge of Chaos

The Edge promotes the third culture which is asking whether science can help solve the economic crisis.

Would an "Economic Manhattan Project" result in a new conceptualization from which solutions could be found?

In an e-book titled "Risk Management, The Current Financial Crisis", the actuarial profession addresses the same notion.

"The current dominant methodology for banks...asessing their capital needs ...is based on estimating the value at risk (var)...one typically fits a distribution to possible returns and works out the implied var..."

The problem is in choosing a distribution which will reflect future reality. Black Swans, as opposed to standard events, are becoming more the rule in the global economy.

Particle Physicists have spent decades studying the behavior of subatomic particles. In the process, they have developed mathematical and computer structures which can model amazingly complex behavior. These structures are available to be applied to systems more complex than the atom.

Likewise, actuaries have spent decades studing the mathematical behavior of contingent events and their financial consequences. From data reflecting the results of injuries, lawsuits, weather, disease, death,...actuaries have discerned patterns which emerge from human activity.

Combining the power of actuarial and complexity science structures with classical ones, models of the global economy and its constituents can be developed which will supersede and transcend existing ones. In the process we will come closer to undersatnding the deep, underlying causes and potentional fixes of economic and financial dislocations. That understanding will lead us to policies which can successfully transform the American and global economy so as to increase human welfare while developing a sustainable future for our children.

What do we have to lose?

We used to say, "If we can put a (man) on the moon..."

Now we can say, "If we can develop mathematical and computer structures which can model the behavior of ethreal waves and fields..which interact in multidimensional spaces to produce the world of our intellect and senses...and actuarial structures which model complex aspects of the results of many aspects of human activity...can't we find structures which will help us develop policies which will result in a future for humankind better than those now in use? "

Yes we can.

Lee