Heisenberg Uncertainty Principle : In quantum physics, the outcome of even an ideal measurement of a system is not deterministic, but instead is characterized by a probability distribution, and the larger the associated standard deviation is, the more "uncertain" we might say that that characteristic is for the system.
Or in English : It is impossible to have a particle that has an arbitrarily well-defined position and momentum simultaneously.
Applying that to money: By observing or attempting to observe money you alter where it is and/or the velocity at which it is traveling depending on whether or not you are watching with one eye or two. One can either determine how much money there is, where it is at, or the velocity and direction at which it is moving but not all of them at the same time!
This is complicated by the fact that watching is an aggregate thing, not an individual thing. Where money is and how fast it is traveling is influenced by everyone's attempt to watch it.
Too many people are watching Bernanke's helicopter drop right now which explains why money turns up in mysterious places like the pockets of those working for Goldman Sachs rather than blowing in the breezes or floating around in thin air as logic would dictate.
Bernanke, being the hero that he is, has tried hard to defeat this travesty of justice by eliminating M3 reporting but so far it does not seem to be working. There are simply too many people still watching M3 that money does not flow to those who desperately need it.
1 comment:
Waiting for Bernanke to step up and explain this logic.
This keeps up the people that invested in mutual funds via 401k programs will be broke.
Maybe that is how they plan on squaring the subprime fiasco.
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