Energy Gradients

No New Energy

The first law of thermodynamics says energy cannot be created nor destroyed.

The second law of thermodynamics says that entropy must increase.

At the same time, there is simple reason for systems, such as planet Earth, that have a consistently decreasing entropy.

Money Flows

Hedge fund managers, so long as they aren’t connected to the government in some way and aren’t using passive investing techniques, need to really understand the structure and health of the economy.

And they’ve found that flows, money flowing from places to various places, and the money supply, are much more important than any static levels.

However, since the Lehman shock of 2008, this is nearly impossible to understand.

Chimps

A group of chimps was studied for several years.

One of the interesting experiments they did was to drop a large box of oranges in the compound while everybody was sleeping.

The first chimp to find them was a young chimp, very low on the social hierarchy.

Whenever academics do studies, self reported data is always suspect.

For example, they did a weight loss study, and based on the numbers given to researchers, nothing made sense.

Lying Eaters

But then they secretly followed the participants, they found they were eating much more than they were reporting.

There are, however, cases where people have a high calibrated and measured caloric intake.

They also accurately measure their metabolism.

Strange Science

Paradoxically, even though they are consuming less calories than they are burning, they still are gaining weight.

This is against the laws of science, biology and chemistry.

This is something that is not understood.

Hidden Oranges

What he did was hide them while everybody was still sleeping.

And he remembered where they were, so the young chimp could enjoy them one at time, in secret.

A new emergent system was inadvertently created after 2008.

Shadow Banking System

This is generally referred to the shadow banking system.

Called such is because nobody can understand how the entire structure works.

Which means if this system is broken, nobody will know what’s wrong and how to fix it.

Need To Understand This

However, hedge fund managers are keen on understanding this.

Because if you do understand this, you can make a lot of money.

You can make a lot of easy money.