Finance Must Abide By Nature

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I have always been interested in the root cause of things, much to the chagrin of people who are not. Just do your job, obey, make money, and fit in is what you are told from when you are young, and then repeat after me: “I am free.” None are more hopelessly enslaved than those who do not question the rules set before them, is the change I apply to Goethe’s venerable quote on freedom.

“None are more hopelessly enslaved than those who falsely believe they are free” — Goethe

The impending enslavement to unquestionable manmade make-believe always haunts me. As I believe we humans, as arguably the most intelligent species on earth, must succeed in outliving a common fly. We must do better than subscribe to manmade fairytales and conjecture, and instead rely on the evolving excellence of discovery of nature to design the best proxy of our dynamic equilibrium with it. Foregone truths must continually be challenged so that finance can become a rebel with a cause.

 

Unchange

Critical thinking, of the right kind, is bound to unravel our stale and foregone conclusions. It is, therefore, often treated as unpopular and described as negative. For it exposes and jeopardizes the fortresses of the oligarchy purpose-built to resist change and preserve the status quo. And worse, while it rebuffs change, the oligarchy continues to narrow its carefully curated standard-deviation of merit, chockful of collusion and steadily increases its complexity with endless suboptimizations. Thereby limiting the adoption of new blood and managing to separate the status of the fortunate haves – the compliant-  ever further away from the unfortunate have-nots – the non-compliant.

 

Nature Opposes

The result of this laissez-faire predicament is that we emphasize and reward uniformity and compliance, while the very rules of nature predicate the opposite. Indeed, we have become sheep to unquestionable dogmas. A carefully constructed evolutionary death trap, considering humans are indeed well over ninety-nine percent the same, yet with a critically unique sampling of a tiny part of our, DNA is what makes us all look, act and behave differently.

The appraisal of our differences, not our commonalities, leading to the strengthening and longevity of our species. So, to confide in our dogmas is to induce an anthropogenic cascade inducing the shortening of our lifespan on earth. Indeed, any stale and unquestionable interpretation of a manmade construct to manage ourselves harms humanity.

Have I got your attention?

 

Pivot

Finance plays a pivotal role in society, for all societies use money as the promise of trust in value. The only problem is that said assignment of value in our current construct is by laissez-faire implementations left in the eye of the beholder, and often not correlated at all to the fiduciary obligation of humanity.

A person would be considered a success if they managed to sell a new version of sugar-water to the world, cunningly making money off what seduces people, not quite the same as to what people need. Such an endeavor yields merely artificial wealth distribution away from the interest of our collective long towards the selfish vile-maxim of short, with the cost of a devastation anthropogenic cascade we all pay a significant price for.

Not unlike we now all pay a hefty increase in healthcare insurance premiums from compounding consequences of respiratory diseases derived from smoking, as the third leading cause of death to Americans.

 

Arbitrage

As demonstrated above, the theory of finance is crucial in establishing the renewable strengthening of humanity. For finance is the arbitrage of innovation. Finance must therefore not be left free to invest where it wants, but must itself be guided to where human strengthening is sorely needed.

Finance must be subjugated to an evolutionary policy that guides and protects the renewable excellence of humanity. And not be left to self-regulate with a placebo of ESG or “impact investing” correlated to the oxymoron of sustainability, in violation of the evolutionary principles as we recognize them today.

 

The road ahead

The incredible opportunity for finance today is to take advantage of our political emphysema and the gaping holes in our constitution to construct a policy in finance that most accurately tracks the fractal of the expansion of human ingenuity and capacity. A purpose neither ESG, impact investing, or the other fancy terms for the same dysfunction resolves.

I have developed such a theory from the principles of nature’s evolution, proven over 4.5 billion years; we simply have to acknowledge, adapt, and implement.

 

Nature’s alpha

The expansion of our universe (at an accelerated pace) with a reduction of global resources available to us determines the alpha that leads to our dynamic equilibrium with nature amidst those changes. With renewable alpha that can only be derived from a theorem that resembles the theorem of nature. And thus, it behooves every firm in finance to conform to the principles of nature to stave off the government control and societal damage that is otherwise forthcoming.

You are lucky we saw this coming, spent the last eight years developing a new normalization of evolutionary truth, and have prepared an exit strategy from asset management mediocrity for you. We look forward to welcoming you.

 

Georges van Hoegaerden
Georges van Hoegaerdenhttps://www.method41.com/georges
Georges is the Founder and Managing Director of method41. From analyzing the workings of policy, capital, and innovation, determining the fractal of human expansion, Georges discovered how these siloed, manmade manacles are woefully incompatible with nature's principles dictating the longevity of our species. By believing in a better world with better people, Georges set out to reinvent the theory of humanity that determines what can be discovered.
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