Sunday, April 13, 2014

The College Faculty Crisis

The public colleges and universities that educate more than 70 percent of this country’s students were burdened by rising costs and dwindling state revenues long before the recession. They reacted by raising tuition, slashing course offerings and, sometimes, by cutting enrollment.
They also cut labor costs by replacing full-time professors who retired with part-time instructors, who typically have no health or pension benefits and are often abysmally paid, earning in the vicinity of $3,000 per course.
The part-timers are often considered “invisible faculty,” because they rarely participate in academic life and typically bolt from campus the moment class ends. That researchers still know little about them — or how well they do their jobs — is especially startling given that a little more than half of all college faculty members are now part-timers, and they far outnumber full-time faculty members on most community college campuses.
The portrait of these instructors that emerges from a new study by the Center for Community College Student Engagement, a research center at the University of Texas at Austin, is alarming. The report, based on survey responses from more than 71,000 teachers, found that part-timers face many challenges. Because they are treated almost like transient workers, they are given little reason to make an investment in the institution.
They often learn which courses they are teaching just weeks or even days before the start of the semester, so there is almost no time to prepare. They often lack office space or administrative or technical support and are rarely given any guidance on how to do their jobs effectively. According to the report, they are implicitly told: “Just show up every Thursday at 5 o’clock and deliver a lecture to your class. Give a midterm and a final exam, and then turn in a grade, and the college will pay you a notably small amount of money.”
The colleges expect little of these teachers. Not surprisingly, they often act accordingly. They spend significantly less time than full-time teachers preparing for class, advising students or giving written or oral feedback. And they are far less likely to participate in instructional activities — like tutoring, academic goal setting or developing community-based projects — that can benefit students.
This situation is terrible, especially for students from disadvantaged backgrounds whom community colleges typically attract. On those campuses, nearly two-thirds of the students arrive needing remedial instruction in math, English or both, and often lack the basic competencies they need to move beyond remediation to a degree.
The community colleges have to do a better job of screening the part-time instructors they hire, and developing their skills, which means providing mentors and career paths that give them the opportunity to engage with campus life.
All of this will require more money for higher salaries and professional development. College degrees worth having don’t come cheap. Public officials who determine community college budgets should know full well that colleges, like other institutions, only get what they pay for.

Three Expensive Miliseconds

Paul Krugman
Four years ago Chris Christie, the governor of New Jersey, abruptlycanceled America’s biggest and arguably most important infrastructure project, a desperately needed new rail tunnel under the Hudson River. Count me among those who blame his presidential ambitions, and believe that he was trying to curry favor with the government- and public-transit-hating Republican base.
Even as one tunnel was being canceled, however, another was nearing completion, as Spread Networks finished boring its way through the Allegheny Mountains of Pennsylvania. Spread’s tunnel was not, however, intended to carry passengers, or even freight; it was for a fiber-optic cable that would shave three milliseconds — three-thousandths of a second — off communication time between the futures markets of Chicago and the stock markets of New York. And the fact that this tunnel was built while the rail tunnel wasn’t tells you a lot about what’s wrong with America today.
Who cares about three milliseconds? The answer is, high-frequency traders, who make money by buying or selling stock a tiny fraction of a second faster than other players. Not surprisingly, Michael Lewis starts his best-selling new book “Flash Boys,” a polemic against high-frequency trading, with the story of the Spread Networks tunnel. But the real moral of the tunnel tale is independent of Mr. Lewis’s polemic.
Think about it. You may or may not buy Mr. Lewis’s depiction of the high-frequency types as villains and those trying to thwart them as heroes. (If you ask me, there are no good guys in this story.) But either way, spending hundreds of millions of dollars to save three milliseconds looks like a huge waste. And that’s part of a much broader picture, in which society is devoting an ever-growing share of its resources to financial wheeling and dealing, while getting little or nothing in return.
How much waste are we talking about? A paper by Thomas Philipponof New York University puts it at several hundred billion dollars a year.
Mr. Philippon starts with the familiar observation that finance has grown much faster than the economy as a whole. Specifically, the share of G.D.P. accruing to bankers, traders, and so on has nearly doubled since 1980, when we started dismantling the system of financial regulation created as a response to the Great Depression.
What are we getting in return for all that money? Not much, as far as anyone can tell. Mr. Philippon shows that the financial industry has grown much faster than either the flow of savings it channels or the assets it manages. Defenders of modern finance like to argue that it does the economy a great service by allocating capital to its most productive uses — but that’s a hard argument to sustain after a decade in which Wall Street’s crowning achievement involved directing hundreds of billions of dollars into subprime mortgages.
Wall Street’s friends also used to claim that the proliferation of complex financial instruments was reducing risk and increasing the system’s stability, so that financial crises were a thing of the past. No, really.
But if our supersized financial sector isn’t making us either safer or more productive, what is it doing? One answer is that it’s playing small investors for suckers, causing them to waste huge sums in a vain effort to beat the market. Don’t take my word for it — that’s what the president of the American Finance Association declared in 2008. Another answer is that a lot of money is going to speculative activities that are privately profitable but socially unproductive.

You may object that this can’t be right, that the invisible hand of the market ensures that private returns and social returns coincide. Economists have, however, known for a long time that when it comes to speculation, that proposition just isn’t true. Back in 1815 Baron Rothschild made a killing because he knew the outcome of the Battle of Waterloo a few hours before everyone else; it’s hard to see how that knowledge made Britain as a whole richer. It’s even harder to see how the three-millisecond advantage conveyed by the Spread Networks tunnel makes modern America richer; yet that advantage was clearly worth it to the speculators.
In short, we’re giving huge sums to the financial industry while receiving little or nothing — maybe less than nothing — in return. Mr. Philippon puts the waste at 2 percent of G.D.P. Yet even that figure, I’d argue, understates the true cost of our bloated financial industry. For there is a clear correlation between the rise of modern finance and America’s return to Gilded Age levels of inequality.
So never mind the debate about exactly how much damage high-frequency trading does. It’s the whole financial industry, not just that piece, that’s undermining our economy and our society.

Your Inner Fish: Book and PBS documentary on Tiktaalik and Neil Shubin.

Your Inner Fish: Book and PBS documentary on Tiktaalik and Neil Shubin.:



 "We all know the Darwin fish, the car-bumper send-up of the Christian ichthys symbol, or Jesus fish. Unlike the Christian symbol, the Darwin fish has, you know, legs."



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Love Kills

Giorgio Moroder - Wikipedia, the free encyclopedia

Giorgio Moroder - Wikipedia, the free encyclopedia:



 "Giovanni Giorgio Moroder (Italian pronunciation: [dʒoˈvanni ˈdʒordʒo ˈmɔːroder], born Hansjörg Moroder, Urtijëi, 26 April 1940)[1][2] is an influential Italian record producer, songwriter, performer and DJ."



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Friday, April 11, 2014

Slowdown?

JPMorgan just lost three dollars per share at opening!



They knew by February 15 this was coming. They cut corners in their expenses, they work for the bottom line, day in and they out.

How are these bankers going to lead us to prosperity?

They cannot.

JPMorgan Earnings Fall 18.5% on Slowdown in Trading and Mortgage Lending - NYTimes.com - NYTimes.com

JPMorgan Earnings Fall 18.5% on Slowdown in Trading and Mortgage Lending - NYTimes.com - NYTimes.com:



 "JPMorgan Chase reported an 18.5 percent slump in first-quarter earnings on Friday, as the nation’s largest bank grappled with dual challenges: sluggish revenue from trading and lackluster mortgage lending."







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Thursday, April 10, 2014

Michael Lewis: By the Book - NYTimes.com

Michael Lewis: By the Book - NYTimes.com:



"What kind of reader were you as a child? And what were your favorite childhood books? 



 The first books I really ripped through were the Hardy Boys mysteries. Around age 11, I began to resist the books that my teachers required me to read, in favor of books I suspected my teachers would disapprove of. I read “Rosemary’s Baby” before “To Kill a Mockingbird.” I learned of the existence of masturbation from “Portnoy’s Complaint” — which I read only because I sensed my parents had tried to hide it. Philip Roth still occupies an unusual place in my heart."



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Edwin Lefèvre - Wikipedia, the free encyclopedia

Edwin Lefèvre - Wikipedia, the free encyclopedia:



Lefèvre was born George Edwin Henry Lefèvre on 23 January 1871 in Colón, Colombia (now Republic of Panama), the son of Henry Lefèvre (1841–1899), who was for many years the general agent of the Pacific Steamship Company American forPanama; he was born in the Jersey in the Channel Islands and emigrated to the United States in his youth. Mr. Lefèvre sent his son Edwin to the United States when he was a boy and he was educated at Lehigh University where he received training as a mining engineer. However, at the age of nineteen, he began his career as a journalist and eventually became astockbroker, as well. Following his father's death, he inherited some wealth and became an independent investor; and while living in Hartsdale, New York a collection of Edwin Lefèvre's short stories were published (1901) under the title "Wall Street Stories." This was followed by several novels about money and finance until 1908 when Lefèvre and his wife Martha and their children moved to a country estate in East Dorset, Vermont. During the 1909–1913 presidency of William Howard Taft, Lefèvre served as ambassador to a number of countries including Italy, Spain, and France.[citation needed] Lefevre did work as a broker on Wall Street and was the financial writer for the New York Sun newspaper. He later returned to his home inVermont where he resumed his literary work, providing short stories for magazines such as The Saturday Evening Post and writing novels.



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Poverty and Violence Push New Wave of Migrants Toward U.S. - NYTimes.com

Poverty and Violence Push New Wave of Migrants Toward U.S. - NYTimes.com:



 "HIDALGO, Tex. — Border Patrol agents in olive uniforms stood in broad daylight on the banks of the Rio Grande, while on the Mexican side smugglers pulled up in vans and unloaded illegal migrants."



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Wednesday, April 09, 2014

Dark Matter?

Read the article below.

Neat Gamma Ray Dot in the center of the lower graph.

Navarro-Frenk-White (NFW) profile.

Argentinian, Mexican, and English.

32.25 GeV Dark Matter Particle

Usually ; here we get a steeper core. Dark matter is proved by these gamma ray measurements. Given that the Milky Way, is the closest galaxy (we are inside!), it stands to reason that the core here insinuated, could be used for the Universe as a whole. It will be interesting to find in future textbooks, that we know the Universe better, because we know our Galaxy. This would be the ultimate: Know Thyself!


"There are signfi cant reasons to conclude, however, that the gamma-ray signal described in this paper is far more likely to be a detection of dark matter than any of the previously reported anomalies. Firstly, this signal
consists of a very large number of events, and has been detected with overwhelming statistical signi ficance. The the excess consists of  gamma rays per square meter, per year above 1 GeV  (from within 10° of the Galactic Center)."

"Within 10° of the Galactic Center, this model predicts that millisecond pulsars should account for ~ 1% of the observed diffuse emission, and less than ~ 5-10% of the signal described in this paper."


"In this study, we have revisited and scrutinized the gamma-ray emission from the central regions of the Milky Way, as measured by the Fermi Gamma-Ray Space Telescope. In doing so, we have confi rmed a robust and highly statistically signifi cant excess, with a spectrum and angular distribution that is in excellent agreement with that expected from annihilating dark matter."

" In   particular,  a dark matter particle with this cross section will freeze-out of thermal equilibrium in the early universe to yield an abundance approximately equal to the measured cosmological dark matter density."

 "In light of these considerations, we consider annihilating dark matter  particles to be the leading explanation   for the origin of this signal, with potentially profound implications for cosmology and particle physics."

[1402.6703] The Characterization of the Gamma-Ray Signal from the Central Milky Way: A Compelling Case for Annihilating Dark Matter

[1402.6703] The Characterization of the Gamma-Ray Signal from the Central Milky Way: A Compelling Case for Annihilating Dark Matter:



Past studies have identified a spatially extended excess of ~1-3 GeV gamma rays from the region surrounding the Galactic Center, consistent with the emission expected from annihilating dark matter. We revisit and scrutinize this signal with the intention of further constraining its characteristics and origin. By applying cuts to the Fermi event parameter CTBCORE, we suppress the tails of the point spread function and generate high resolution gamma-ray maps, enabling us to more easily separate the various gamma-ray components. Within these maps, we find the GeV excess to be robust and highly statistically significant, with a spectrum, angular distribution, and overall normalization that is in good agreement with that predicted by simple annihilating dark matter models. For example, the signal is very well fit by a 31-40 GeV dark matter particle annihilating to b quarks with an annihilation cross section of sigma v = (1.4-2.0) x 10^-26 cm^3/s (normalized to a local dark matter density of 0.3 GeV/cm^3). Furthermore, we confirm that the angular distribution of the excess is approximately spherically symmetric and centered around the dynamical center of the Milky Way (within ~0.05 degrees of Sgr A*), showing no sign of elongation along or perpendicular to the Galactic Plane. The signal is observed to extend to at least 10 degrees from the Galactic Center, disfavoring the possibility that this emission originates from millisecond pulsars.



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Monday, April 07, 2014

Antony Valentini

Wikipedia

Recently at The New Scientist, this Clemson University Physics Professor, was mentioned.

He proposes that the Universe reached thermal equilibrium very early in its history. What we call infinitesimal scales are composed of corpses. Nothing happens there, those objects have reached the Heat Death, predicted long ago by Lord Kelvin.

According to Thermodynamics useful work occurs only up to a point. When Entropy is maximum, only random processes occur. We lose as much as we gain, with a net gain of zero. If the Universe is finite, as it is, energy bounces from walls, or never reaches them if they move at the speed of light. Initially the Universe was very small, as proven last month by BICEP2 observations in the South Pole. Therefore everything moving at the speed of light reached thermal equilibrium. Those were Infinitesimals. Inside the scales of the Quantum World, the Universe is Dead. That, according to Valentini, could be an explanation for Quantum Behavior, which I could call rigged behavior, just like Michael Lewis, explained in his new book, Flash Boys, an investor puts a slow order, fast operators detect his move and steal his money. In the same way, these dead Infinitesimals, detect our slow motions, and very fast react leaving us befuddled.

Incidentally, Amir Alexander, just published his thesis, that an intellectual war in Europe produced what we now know as Infinitesimal Calculus. The book is: Infinitesimal.

Hobbes fought against French intellectuals, with the idea that Kings must rule, he thought, that he had proved that geometrically. Either a continuous line was made of other lines ad infinitum, or the process stopped.

It is clear to me that this philosophical idea cannot be resolved by introspection only, it needs experimental proof, and if we are to believe Valentini, the process ends in a heat death,

Sunday, April 06, 2014

Friday, April 04, 2014

[1404.0070] DD Calculus

[1404.0070] DD Calculus:



 "This paper introduces DD calculus and describes the basic calculus concepts of derivative and integral in a direct and non-traditional way, without limit definition: Derivative is computed from the point-slope equation of a tangent line and integral is defined as the height increment of a curve. This direct approach to calculus has three distinct features: (i) it defines derivative and (definite) integral without using limits, (ii) it defines derivative and antiderivative simultaneously via a derivative-antiderivative (DA) pair, and (iii) it posits the fundamental theorem of calculus as a natural corollary of the definitions of derivative and integral. The first D in DD calculus attributes to Descartes for his method of tangents and the second D to DA-pair. The DD calculus, or simply direct calculus, makes many traditional notations and procedures unnecessary, a plus when introducing calculus to the non-mathematics majors. It has few intermediate procedures, which can help dispel the mystery of calculus as perceived by the general public. The materials in this paper are intended for use in a two-hour introductory lecture on calculus."



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INFINITESIMAL by Amir Alexander | Kirkus

INFINITESIMAL by Amir Alexander | Kirkus:



 "In the mid-17th century, debate raged over a mathematical concept of the infinitely small—and nothing less than modernity as we know it was at stake."



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Michael Lewis’s Crusade - NYTimes.com

Michael Lewis’s Crusade - NYTimes.com:



 "There is always something just a little frustrating about reading a Michael Lewis book. On the one hand, Lewis’s core point — whether it is that left tackle has become the second most important position in football (“The Blind Side”), or that the stock market has become rigged by high-frequency traders, as his new book, “Flash Boys,” claims — is almost always dead-on. His ability to find compelling characters and tell a great story through their eyes is unparalleled. He can untangle complex subjects like few others. His prose sparkles."



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Amazon.com: Infinitesimal: How a Dangerous Mathematical Theory Shaped the Modern World (9780374176815): Amir Alexander: Books

Amazon.com: Infinitesimal: How a Dangerous Mathematical Theory Shaped the Modern World (9780374176815): Amir Alexander: Books:



The epic battle over a mathematical concept that shook the old order and shaped the world as we know it

On August 10, 1632, five leaders of the Society of Jesus convened in a somber Roman palazzo to pass judgment on a simple idea: that a continuous line is composed of distinct and limitlessly tiny parts. The doctrine would become the foundation of calculus, but on that fateful day the judges ruled that it was forbidden. With the stroke of a pen they set off a war for the soul of the modern world.
     Amir Alexander’s Infinitesimal is the story of the struggle that pitted Europe’s entrenched powers against voices for tolerance and change. It takes us from the bloody religious strife of the sixteenth century to the battlefields of the English civil war and the fierce confrontations between leading thinkers like Galileo and Hobbes. We see how a small mathematical disagreement became a contest over the nature of the heavens and the earth: Was the world entirely known and ruled by a divinely sanctioned rationality and hierarchy? Or was it a vast and mysterious place, ripe for exploration? The legitimacy of popes and kings, as well as our modern beliefs in human liberty and progressive science, hung in the balance; the answer hinged on the infinitesimal.
     Pulsing with drama and excitement, Infinitesimal will forever change the way you look at a simple line—and celebrates the spirit of discovery, innovation, and intellectual achievement.



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Thursday, April 03, 2014

The Universe is Rigged

I just read the great book: Flash Boys. After a stint at the CME Group, it was a fascinating read. So far I have seen some crocodile tears from the usual suspects. We are not crooks! Who am I to judge them, I rather change the subject, to something I understand better: Theoretical Physics.

Brad Katsuyama saw his orders disappear from the screen like if there was a conspiracy. Somebody knew what he was thinking, and they were ripping him off!

That is how I feel about Quantum Mechanics.

Two events can be related instantaneously, but if you try to look, there comes the ghost of Werner Heisenberg, and hides the connection. No it didn't happen says he.

I feel cheated, just like Brad!

This is the whole Universe, not some penny robber at the stock exchange. This is cosmic, man!

Maybe there is some more likely explanation than, that is just the way things are.

Hereby I promise: I will follow my new hero, and I will find out who (or what?), is ripping us off.

Quantum Theory at the Crossroads: Reconsidering the 1927 Solvay Conference: Guido Bacciagaluppi, Antony Valentini: 9781107698314: Amazon.com: Books

Quantum Theory at the Crossroads: Reconsidering the 1927 Solvay Conference: Guido Bacciagaluppi, Antony Valentini: 9781107698314: Amazon.com: Books:



The 1927 Solvay conference was perhaps the most important in the history of quantum theory. Contrary to popular belief, questions of interpretation were not settled at this conference. Instead, a range of sharply conflicting views were extensively discussed, including de Broglie's pilot-wave theory (which de Broglie presented for a many-body system), Born and Heisenberg's 'quantum mechanics' (which apparently lacked wave function collapse or fundamental time evolution), and Schrödinger's wave mechanics. Today, there is no longer a dominant interpretation of quantum theory, so it is important to re-evaluate the historical sources and keep the debate open. This book contains a complete translation of the original proceedings, with essays on the three main interpretations presented, and a detailed analysis of the lectures and discussions in the light of current research. This book will be of interest to graduate students and researchers in physics and in the history and philosophy of quantum theory.



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[1310.1899] Long-time relaxation in pilot-wave theory

[1310.1899] Long-time relaxation in pilot-wave theory:



 "We initiate the study of relaxation to quantum equilibrium over long timescales in pilot-wave theory. We simulate the time evolution of the coarse-grained H-function Hbar(t) for a two-dimensional harmonic oscillator. For a (periodic) wave function that is a superposition of the first 25 energy states we confirm an approximately exponential decay of Hbar over five periods. For a superposition of only the first four energy states we are able to calculate Hbar(t) over 50 periods. We find that the decay of Hbar saturates after about 20 periods, with a residue (exceeding 10% of the initial value) that shows no sign of decaying in the subsequent 30 periods. Possible cosmological implications are discussed"



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quantum heretic | research and creative discovery | Clemson University

quantum heretic | research and creative discovery | Clemson University:



 "In the warm winter sunshine, a distinguished man stands on the curb outside a local bank, wearing a casual jacket, his dark, curly hair stranded with silver. He watches with fascination as a taxi driver demonstrates how to fling a poison­ous snake off into the grass using a stick. Antony Valentini shakes his head a little and wonders, aloud, if anyone would believe him back home. Poisonous snakes are foreign to him—as foreign as the big black king snake he found sunbathing in his back yard."



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Flash Boys for the People - NYTimes.com

Flash Boys for the People - NYTimes.com:



"THIS week’s publication of “Flash Boys,” by the journalist Michael Lewis, has turned a harsh spotlight on the world of high-frequency trading. Mr. Lewis has joined a chorus of critics who say that the booming field, in which computers buy and sell stocks at lightning speed to take advantage of minute changes in prices, has essentially rigged the market against small investors."



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Rube Goldberg Survives - NYTimes.com

Rube Goldberg Survives - NYTimes.com:



 "Clearly, there’s a lot of work ahead, and we can count on the news media to play up every hitch and glitch as if it were an existential disaster. But Rube Goldberg has survived; health reform has won."



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Under Icy Surface of a Saturn Moon Lies a Sea of Water, Scientists Say - NYTimes.com

Under Icy Surface of a Saturn Moon Lies a Sea of Water, Scientists Say - NYTimes.com:



"There are a couple of proposals for that already, including one by Peter Tsou, a retired scientist from NASA’s Jet Propulsion Laboratory. Dr. Tsou devised a way to capture comet particles and bring them back to Earth for NASA’s Stardust mission and has been suggesting a similar method for a spacecraft that would fly through Enceladus’s plumes and then return to Earth for scientists to examine."



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Enceladus - Wikipedia, the free encyclopedia

Enceladus - Wikipedia, the free encyclopedia:



 "In April 2014, evidence published in the journal Science showed that the existence of a subsurface liquid-water ocean beneath the south pole had been confirmed using doppler-shift data from the Cassini probe. The ocean is approximately 10 kilometers deep (existing at a depth of 30 to 40 kilometers below the surface), is salty, and may extend as far as the northern pole.[82][83]"



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Wednesday, April 02, 2014

Consciousness and Capitalism

 I am reading two books: Mike Lewis's Flash Boys, and Stanislas Dehaene's Consciousness and the Brain. 

In the first, Brad Katsuyama  is the principal character. He was recently on TV on CNBC. Yesterday he won the debate. 

It was the fight that stopped trading on the floor of the New York Stock Exchange—IEX's Brad Katsuyama vs. BATS Global Markets president William O'Brien on high-speed trading and 'rigged' markets.

I believe there are rogue elements who are rigging the market.

Is this populism, or are we entering a cleaner market?

Previously I read Scott Patterson's Dark Pools. Then I had a good opinion of Dave Cummings, who unfortunately is not running BATS anymore. Now I do not feel the same with the company he founded. I hope that Brad doesn't sell IEX anytime soon.

After a few months as a contractor at CME, now I know more about the financial world.

I basically finished Mike Lewis's book. Here is my two cent worth of wisdom on the matter.

Capitalism is based on human instincts, what Dehaene calls unconscious phenomena. Neuroscientists like him, have demonstrated, in the past few decades, what Sigmund Freud publicized, and was already stated by Hippocrates many centuries before: We have an unconscious mind, cohabiting the brain with the so-called conscious mind. If society, in this case the SEC, among others, does not limit predatory behavior, boys will be boys, and will  rip us all off. I highly recommend the recent Martin Scorsese movie: The Wolf of Wall Street, to illustrate the point.

Now 0.1% of Americans own a good chunk of the wealth produced, there is "Wealth Inequality." I believe this has to do, partly with the practices discovered and corrected by Brad Katsuyama. In a nutshell, in the most traditional oligarchical manner, a small group of rogue operators rigged Wall Street.

A brief explanation of these rogue practices follows:

This description by no means substitutes the reading of Lewis's book. I highly recommend it.

Spread Networks set itself to bring the straightest path possible from New Jersey to Chicago, to house fiber optics, in secrecy. When they were finished, a small group of stock manipulators, rigged the system. By having orders known to them, a few fractions of a second before anybody else, they could get a profit, from their private use of infrastructure, sometimes in public lands. This practice is not that different, from Chapo (Shorty) Guzman, now in jail in Mexico, to build tunnels under the border to bring drugs to the US. With this advantage, which they sold to insiders at a high price, they milked regular investors to the tune of billions of dollars.

When Katsuyama discovered this, he had the option to join, with the support of the Royal Bank of Canada, where he then worked, or fix it. He chose the second alternative, and if you do want to invest in the stock market, I recommend that you do it, through his company, IEX. 

In conclusion:

To understand consciousness we need to consider Information. The digital revolution has allowed tremendous advances in the correct use of this knowledge. Information is basic to understand computers, networks, and its foundation, mathematics. Knowledge is neutral; we can produce a better life for the bigger number, or concentrate the resources in a few oligarchs. Brad Katsuyama represents the best technologist in this story, but we have to be vigilant with the future evolution of his company, or any other enterprise.

There is a Digital divide, and a Knowledge divide in the world right now. We need a moral compass to use this power..

Current Economic Situation

IEX trading started a trend. Brad Katsuyama saw a difference between his expectations as a trader, and what he saw at the screen of his computer. There was another timescale he was not conscious about. He started a process to reconcile those expectations and what he saw. At the end, he discovered human agents using code, and electronics to legally take his money away. Mike Lewis just published a book about the experience. It is called Flash Boys a Wall Street Revolt.  This shows how greed can affect capitalism, both positively and negatively. But more important is the question: What next?
One can ask if Marx is still relevant?

The recent US presidential elections, with their rhetoric of the "1%" and the "47%" (the proportion of the population Mitt Romney claimed didn't pay taxes) are a good example, as is the debate about austerity politics in the UK and in the EU, phrased in terms of government debt, although really about which social groups will bear the costs of economic restructuring.

In 1867 Karl Marx published Das Kapital.

In Capital: Critique of Political Economy (1867), Karl Marx proposes that the motivating force of capitalism is in the exploitation of labour, whose unpaid work is the ultimate source of profit and surplus value. The employer can claim right to the profits (new output value), because he or she owns the productive capital assets (means of production), which are legally protected by the capitalist state through property rights. In producing capital (money) rather than commodities (goods and services), the workers continually reproduce the economic conditions by which they labour. Capital proposes an explanation of the "laws of motion" of the capitalist economic system, from its origins throughout its future, by describing the dynamics of the accumulation of capital, the growth of wage labour, the transformation of the workplace, the concentration of capital, commercial competition, the banking system, the decline of the profit rate, land-rents, et cetera.

The debate is current, as one can read in the new book by Thomas Piketty: Capital in the Twenty First Century.

One main difference, illustrated in Lewis’s book is that Engines have changed nature: In the eighteenth century they were steam powered, and now they are information powered. To apply Marx’s, or similar ideas, to the current world, we need a Theory of Information, to take the place of Thermodynamics. It is important to state that Entropy is a connecting concept.

The idea of "irreversibility" is central to the understanding of entropy. Everyone has an intuitive understanding of irreversibility (a dissipative process) - if one watches a movie of everyday life running forward and one of it running in reverse, it is easy to distinguish between the two. The movie running in reverse shows impossible things happening - water jumping out of a glass into a pitcher above it, smoke going down a chimney, water "unmelting" to form ice in a warm room, crashed cars reassembling themselves, and so on. The intuitive meaning of expressions such as "don't cry over spilled milk" or "you can't take the cream out of the coffee" is that these are irreversible processes. There is a direction in time by which spilled milk does not go back into the glass.

Claude Shannon, started the theory working at Bell Labs in New Jersey. It is interesting that New Jersey, is the current battleground of the story told by Mike Lewis. Here I give the theory to the extent I understand it.

Irreversibility describes the complex world we experience. The one Brad Katsuyama worked to understand, so he could start  his company: Investors Exchange. In both cases capitalism went to a change of state. One was defined, by the multiplication of muscle power which steam engines produced then, and the other, by the multiplication of brain power which information engines produce now.

Epic Debate!

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