Babies Get It

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Man Bites Man! Even Steven, Babies Get It?
There is no news like old news, it is said. We all want better for ourselves, to be sure. However
self-interest has a precariously fine balance engaged in our determinations of friend and fiend
when engaged in, Getting Our Mastodon. Fairness, empathy and compassion are essential traits.
All communities seek our moral behaviour. Our sense of fairness is innate to our minds as
behavioural psychology of babies has shown in experimental results. The impulse for ethical
behaviour and truth usually extends at least until we are four years old before we determine lying
can be useful as white lies become a necessarily useful peacekeeping device. But, damned lies
remain the province of practising felons we must treat as criminal. The ethical challenge has
been at the base of economics because of self-interest confused deliberately for the ‘Invisible
Hand’ a bias made falsely and more useful than Physiocrats ‘productive class’ self-appointment.
The Theory of Moral Sentiments is where Adam Smith began his propoundments in economics,
just as Charles Darwin found it is our ethical group behaviour aimed at cooperation and cohesion
allows our success acting in groups over other groups and species. Spenserian self-interest is
what muddles both in our political economic debates as we scheme to deceive for personal gain
from common creation of good. As Darwin said long ago, the most cohesive and cooperative
groups generally beat the groups of selfish individualists. We must so do for our common good.
Putting false ideas into economics by 140-character and sound-bite negative cartoon debate are
profoundly close to war by other means in this political season, just as Clausowitz opined.
Behavioural economists are beginning to weigh the issue for its positive and negative impacts:
“morality is the extraordinary human capacity that made civilization possible ...we evolved to live
in moral “matrices,” which bind us together around sacred values and then blind us to the truth ...
Partisans may be simply unable to stop believing weird things. The partisan brain has been
reinforced so many times for performing mental contortions that free it from unwanted beliefs.
Extreme partisanship may be literally addictive.”
“We’re not always selfish hypocrites. We also have the ability, under special circumstances, to
shut down our petty selves and become like cells in a larger body, or like bees in a hive, working
for the good of the group. These experiences are often among the most cherished of our lives,
although our hivishness can blind us to other moral concerns. Our bee-like nature facilitates
altruism, heroism, war, and genocide.” – Jonathan Haidt, The Righteous Mind, 2012.
""What really mattered was if someone else got a better reward, not that they wanted a better
reward." Sarah Brosnan, 2007.
"You hypocrite, first take the log out of your own eye, and then you will see clearly to take the
speck out of your neighbor’s eye. (Matthew 7:3–5).
“what is morality based on? One is reciprocity … a sense of fairness, and the other one is empathy and
compassion.”– Frans de Waal, 2011.

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These cartoon debate tools are not aimed at keeping the peace. Felony is where they have dared
to go seeing no other course possible to win. Last May the policy impact record of each side was
clearly analysed, by Bloomberg, whose marshal of the facts was found unassailable, to the point
the partisan right could not redress in any other way than just turn to denial without accurate
rejoinder. Advertising ‘communication’ skills of ‘Mad Men’ resort to trump the real facts.
This is pathological altruism put to work Haidt and many others have pointedly identified for its
consequences. Such forms of altruism are pathological, social disasters, just as moral compass of
both emotion and reason are abandoned. Neither facts supporting reason or moral intuition then
matter. The felonious lie is made partisan sacrosanct tool in the cartoon debate, with the volume
cranked. It works. We have seen this ruin democratic debate before, and increasingly often since.
Such is the history of a generation. One bright boy, still too young to even cast a vote, then
forced to fight on front lines for six years survived. He reflected, “The only freedoms we have
are those our neighbour will fight to defend. Fear politics.” It is fortunate he survived all of the
nine mortal woundings he suffered. As Verne Atrill awed, “He has seen more war than anyone
who had survived.” Moral compass is essential to our politics and economics. Babies know this.
As Adam Smith made clear his concern the moral context is vital to the Invisible Hand working
for our reaching agreement. Ernst's recent http://riskwerk.com/2012/10/27/the-nash-equilibrium-its-stock-price/
post for modelling "The Nash Equilibrium & Its Stock Price" is heartier diet on the Invisible
Hand of agreement achieving common interests. The Modal Geometry brings method to
establish the worth of trading connections as We the People act with altruist belief in what we
see as the virtuous business idea and plan, to share of its benefits. So we must opt for common
good, acting in moral altruism when we reach agreement in our trades on valiant balance sheets.
The corporation is a eusocial concept, intending on getting our mastodon. Even our babies know
this 'drill' and thrive because of it. Clearly there is evident cause to celebrate the intuition that
gives us our guidance even as babies negotiate their way in this world, where their reason will
fail to offer them a path forward. Moral compass is essential to our political and economic lives.
As the political season waxes to strident full volume the canards are sent on stage quacking
rhetoric of gold standards, household deficit as national economy, and fiat money restraint. One
tide came with the kickoffs of GOP candidates’ repartee. Jekyll Island references revived with
scare mongers supposing Mr Hyde resides on Constitution Avenue. Metallism is an aberrant idea
having caused more havoc than economic salve. False rhetoric lays in politics’ deceits seen as
useful tools. Truth is victim of its arguments. Is not such why Socrates resigned to drink the
hemlock, as expedient false rhetoric had greater political effect than finding truth?
The political rhetoric is confused by the substitution of gold for what it represents is fetish. The
hobby horse is representation for the child of its horse, no longer a mop. Opinion subsumed fact
seen in the Napoleonic Wars in the mid-1800’s debate on gold. Gold can control where
agreement can be reached becoming restraint on trade contracts increasing the social cost. The
outcome in ruined farms and mines is the storm shadow on the American West Frank Baum

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exposed in The Wizard. Be assured there was no gold involved in the clearing of malarial
swamps for the Panama Canal or its recent widening; endogenous money was used in contracts.
Credit contract agreements exchanged in trade long existed before coin arose as useful cipher for
them. Clay cuneiform tablets recorded these contracts, 5000 years ago. Coinage was invented
about 700 BC, half millennium after events told in Homer's Illiad and still a century after written.
The biblical shekel is reference to a measure of wheat, not a coin as scriven in 500 BC. As coins
appeared they raced as new invention throughout the trading globe, a useful median value
between shells and credit contracts. Yet coin did not displace scripting of endogenous money.
The majority of codices surviving in the coin hoarding by Bishop Banks at monasteries recorded
such script money. Such example survived in late Roman papyri. Many fewer were interesting
poetry of ancients or histories of palace plunder victors as seen worthy of transcription.
Without gold-bar tortoises support "all the way down" they claim there will be inflation. A close
study of history in lieu of fact reveals strident bias for the palace coinage taxing the labours of
others, preferably slaves, infests the rhetoric and debate from the time of Hellenic first household
formulations of oikonomia, "management of a household, administration". Consider that as ethos
of a plunder and palace economy where coin enabled tax on market transactions value. Nations
are collections of households but in aggregate of much greater value than those parts, as
corporations are greater in aggregate force due worth added by their trading connections.
Doubts emerged of gold’s real economic function following the evident utility of distributed
paper bank note contracts had been invoked by needs of war and industrial commerce, even as
Bank Reform was formulated concurrent with the creation of the modern corporation legislation.
This confusion arises by substitution of gold for what it represents. Just as the hobby horse as
representation works for the child; it is artifice no longer a mop. Menger could not see past that.
Such confirmed delusions have continued and inspire most unfortunate pursuit of economic
theory substituting rhetoric for science. As near Giffen Good gold in history undermines supply
and demand models. The fallacy roots surreal in the foundations of economic thought from the
Physiocrats forward through Walras to even Minsky. There is greater wisdom at work as mothers
tell their children to, “play nice, now” though some will not. When trading connections of any
corporate enterprise agree to "play nice" and then so do, that entire body-politic achieves power
far beyond its sum of force. It creates greater worth than the sum of its parts. Canals are built to
humbly pass pyramids, conquer malarial swamps, while our railroads can span continents.
Too bad the Super PACs, fueled on tax subsidy welfare, have not read Plutarch's Lives, or
Junius. Suicide by self disembowelling did not defeat any palace tyrant, even as civil war was
their defense of self-serving elite claiming ‘democratic rule’ over a 40% slave population. Cicero
would have his own death avenged by his son claiming Liberatores, disbatching one tyrant for
another palace tyrant. Such rhetoric from biased historicism is never kind. Cato and Cicero both
were practising republican declamers fully engaged in palace and plunder economics. Policy
does ‘spin on a dime’ as it can on word, or sword their way. Self-interested babies intuit better.

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These self-interested egoists just do not ‘get it.’ They reject the moral altruism of eusocial
collaboration. Such is the moral altruism, by the willingly co-opted to benefit the enterprise by
investing in the virtuous business idea and plan. The Ayn Rand naïf egoist focus is on their claim
for exploitation of the wealth that our eusocial collaboration creates, investing in corporations.
The fictitious person was not the subject of Liberal Democracy or the American Constitution
experiments we strive to actualise. The fictitious person had not been invented. Natural persons'
voices and rights were the subject from St Augustine forward through Reformation, to the
Enlightenment and Rights of Man, and should remain so. The deceit of super-PACs as fictitious
persons will suborn the voice of "We the People" unless they are engaged for deceit.
Active falsity is exposed by facts. Material facts of unlawful practice were concealed and only
finally exposed by serendipity long after the Supreme Court was compelled ruling on the sole
test case arising from Montana without those facts. These Super PACs functioning before 2004
elections were formed and fuelled by tax subsidy corporate welfare to diminish the rights of
natural persons to favour fictitious persons. Better enforcement is needed to corral the felons
behind these fictitious persons engaged in such electoral fraud to their life sentences.
Intractable facts have not restrained their rhetoric. Factual measures of job growth, GDP and
corporate profits show the real economy has advanced further and faster under Democrat than
under Republican policy. Not by small but significant margins measured leaving Fox and Forbes
mumbling. Obama's first three years had reversed and recovered the entire Bush 43 record of
losing 600,000 net jobs on his eight year watch. Republican administrations had even installed
greater cost of government offices, not less. These are intractable facts enraging the partisan to
casting buffalo-chips, like bad monkeys. They are refusing bipartisanship democracy needs.
Fairness, empathy and compassion are essential to our national economic health. Who knew? We
all have known, even our babies do, innately demonstrating eusocial behaviour.
Our reasons for having any equity in our portfolios are clear, concise and consistent. The equities
we will hold are “likeables” tending to gain 67% of the time. We do not make stock prices but
can reasonably respond to stock price tendencies, by our knowing the price of risk, the downside,
and buying and holding accordingly. That is new fundamentals from theory we have put into
policy obtaining 29% IRR average. Know What You Have. Have What You Know
Our view is risk averse. Of course we require a fee for doing that. Mail us for our help.
Ernst and Hans Goetze,
Architypes Inc and StockTakers Limited
Head Office
76 Midridge Close SE
Calgary, AB
T2X 1G1
72 Cornwall Street
Toronto, ON
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351 Chemin Boulanger
Sutton, PQ
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450 538-1270

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