Adam Smith was missing something from the whole picture.
http://www.upenn.edu/pennnews/article.php?id=1035
This is the swerve, the clinamen of Epicurus. This is what Louis Bachelier and Adam Smith didn’t know about motion.
You cannot have one invisible hand bringing the market into equilibrium. You need TWO HANDS. The money needs to observe equilibrium in order to be stable.
This is the motion of things that are self movers. When there is an asymmetry. Human beings are self movers, and this is the most basic of self movers, a tiny object that is longer in one direction than another.
Money itself needs to be smooth like Brownian motion and it is not!
As said by my friend Sin Trenton: The invisible hand snatches your money and gives you the finger when it can.




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November 9, 2009 at 7:06 pm
Hypatia Callisto
a last interview with Milton Friedman, towards the end, he talks about his perfect money.
http://www.econtalk.org/archives/2006/08/milton_friedman.html
November 9, 2009 at 7:11 pm
Hypatia Callisto
to control the market, control your desire
to control the money, control the government’s desire
to have a free market, control your desire
to have a free government, control the flow of money
November 11, 2009 at 4:46 am
Hypatia Callisto
Rethinking Brownian Motion With The ‘Emperor’s New Clothes’
http://www.sciencedaily.com/releases/2009/07/090727191300.htm