Science > Physics > Optimization Theory, Inflation (devaluation of the dollar), and Ron Paul
| Topic: |
Science > Physics |
| User: |
"Craig Fink" |
| Date: |
04 Feb 2008 08:06:46 AM |
| Object: |
Optimization Theory, Inflation (devaluation of the dollar), and Ron Paul |
When I was in school, I was taught that some Economist came up with a proof
that some small amount of inflation makes the Economy grow faster. I
accepted this as true and good. Who wouldn't want the Economy to grow
faster, it must be good for society.
Now that I'm older, a Rocket Scientist (of the Aerospace Engineering
variety), and have dealt with optimization theory in my work. I've found
that being at optimal is usually not the best place to be. Optimal for a
Rocket trajectory or optimal for the Economy, optimizes only one thing. It
actually can costs a lot with respect to other parameters that maybe be
important also.
The problem with optimal is that it is a very narrow view of the problem,
optimal for one parameter but not others. Slightly off optimal is actually
better in the majority of cases, because for a very slight cost to the
optimized value, some other parameter is improved greatly. The cost for the
variable being optimized is always small, because the first derivative of
the dependant variable to the independent variable is zero for optimal.
dD/dI = 0.0, moving slightly off optimal costs almost nothing. But the
first derivative of some other important variable may not be zero, dD/dI is
large for this variable.
Even if slight inflation is optimal for economic growth, slightly off
optimal does not significantly decrease economic growth. But being slightly
off optimal can have huge effects on other issues, other than economic
growth. That is exactly what zero inflation would be, slightly off optimal,
but having huge benefits in other areas of our society. Moral implications,
not taking the value of money (stealing) from people's savings, would be
one.
Anybody saving money in the United States today? Not really, and this is an
important parameter when considering interest rates, computerized printing
of money. The lack of savings is probably due to the derivative
dSavings/dInflation << 0.0. while we are at optimal dEconomy/dInflation =
0.0
There are many more ill effects that none zero inflation brings to society.
It maybe be good for the Economy, but it isn't good for the Country.
Ron Paul is the only candidate proposing fixing the dollar, returning to the
Gold Standard so to speak, zeroing inflation, stopping the devaluation of
the dollar. Other candidates are just proposing band-aids to stop our
economic hemorrhaging, bubble and burst economy.
Ron Paul in 08!
--
Craig Fink
Courtesy E-Mail Welcome @
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| User: "Androcles" |
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| Title: Re: Optimization Theory, Inflation (devaluation of the dollar), and Ron Paul |
04 Feb 2008 10:38:23 AM |
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"Craig Fink" <WeBeGood@GMail.Com> wrote in message
news:13qe6vn41bclpd6@corp.supernews.com...
[snip crap]
Optimise the newsgroups you sent your political ***** to.
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| User: "Craig Fink" |
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| Title: Re: Optimization Theory, Inflation (devaluation of the dollar), and Ron Paul |
04 Feb 2008 02:14:43 PM |
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Androcles wrote:
Optimise the newsgroups you sent your political ***** to.
lol,
OK, just thought some of you might look up long enough from your favorite
topic and might possibly vote tomorrow, probably not.
The most focused group in the world, sci.physics.
Have a nice day Androcles.
--
Craig Fink
Courtesy E-Mail Welcome @
.
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| User: "Androcles" |
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| Title: Re: Optimization Theory, Inflation (devaluation of the dollar), and Ron Paul |
04 Feb 2008 04:33:18 PM |
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"Craig Fink" <WeBeGood@GMail.Com> wrote in message
news:13qeshk3h480t2c@corp.supernews.com...
| Androcles wrote:
|
| >
| > Optimise the newsgroups you sent your political ***** to.
|
| lol,
|
| OK, just thought some of you might look up long enough from your favorite
| topic and might possibly vote tomorrow, probably not.
|
| The most focused group in the world, sci.physics.
|
| Have a nice day Androcles.
lol,
When Gymru is recognised as the first state of the union with Caledonia,
Eire, England and Delaware 2nd, 3rd, 4th and 5th, then I'll consider my
right
to vote for who I want for prince. Most Americans seem to favour Jesus
Christ and an indefinite term of office but for some reason his name is
not on the ballot.
The most parochial and least eclectic country in the world, USA, it's
citizens seem to hallucinate they are all of it.
Have a nice optimise of the newsgroups you sent your political ***** to,
Fink.
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