ARE AKADEMI
A Nordic
COLLEGIUM EUROPAEUM FOR TRANSDISCIPLINARY DIALOGUE
on Critical Strategy and Social Epistemology for the Creation of Values and Conversion of Knowledge-to-Competence in Life and Health, Society and Science, Culture and Arts, Business and Economy
* * * AreScope * * *
a Critical Observatory of Present Society in view of a Better Future
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This website is discontinued and no longer updated. Please be redirected to the new Arescope.
The AreScope is an integration instrument to spot the confluence of trends, critically evaluate current events and comment on policies for the future of our knowledge society. A key focus is on searching how to elaborate on the Nordic values that can help developing a new leadership and consolidate European identity towards functionality in a global context. You are invited to contribute your critical observations and participate in a truly integrative transdisciplinary dialogue.
Our observatory intends to selectively review current trends in global strategy and provides a place of trust to developing independent critical evaluations of global policies. It aims at an assessment of the ethics and performance of public authorities, private and non-governmental organizations as well as commercial corporations acting in open society. We focus on the relevance of their decision-making and strategic cognition to the future of the socially responsible welfare state and the conditions of individual freedom for creative talent across disciplines - and keep an eye on the context of Scandinavian identity and the role of European value in the broader scope extending from its archaic roots to emerging visions.
Candidating collegiates are welcome to comment relating to ongoing dialogues. Please demonstrate a record of merit of a pyramidal competence profile. You are invited to evidence a top expertise in one field. In addition we expect you to use your inherently integrative talent for applying a cross- or transdisciplinary knowledge dimension (of an interdisciplinary experience) to the solving of real and social life value problem. Enclose an account of how your practical and theoretical activities intersected in previous work and of how they will be usefully combined in your preferred area of project or program. Relate your background to at least three of the following categories, creative arts including authorship, sciences including medicine and engineering, philosophy ethics and theology, leadership or business management, entrepreneurship or inventorship, social and/or political innovation. Mail your application for a collegial partnership in form of a selfevaluation both critical and constructive, together with your project proposal and a foresight strategy in preparation of a grant competition, to ARE AKADEMI Collegium Europaeum at coleur (at) gmail.com.
Bypass directly to the new site of the Arescope. This continues our former blog at AreScope. Further reference at startpage and links.
CAVEAT: We are currently pursuing a revision of the website. This implies that the content might no longer correctly represent the opinion of the author(s). In addition, facts and observations might be subject to temporal limitation and do not necessarily present the most current nor contemporary view or image of reality. The crucial arguments of salient lines of conclusion might need to be reconsidered under new conditions or by including previously unknown facts, in order to obtain the status of sufficient objectivity of integrated or compound knowledge. As science progresses new knowledge must be processed through transdisciplinary dialogues in an orderly and epistemologically structured way in order to produce a solid basis for safe and reliable decision.
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A FEW OF OUR STRATEGY & POLICY QUALITY LINKS FOR THE OBSERVATORY
Center for Security Studies (explore links from CSS metasites at ETHZ), Peterson Institute for International Economics (PIIE), Studieförbundet Näringsliv och Samhälle (SNS).
On the same issue, EU Commissioner Margot Wallström, in "EU:s tre reformpaket bäddar för skärpt global finanstillsyn", in DI 17 June) presents the forthcoming policy-driven changes to the financial markets, as if it where primarily a question of moral rules: To her readable points I would add that the development and sustainability of deeper-layer value perceptions, and bases anchored in personality, are primordial, and the moral only an effect that comes to fore in the encounter with other actors on the market. There need to be a solid theoretical foundation, in financial psychology and relating to the paradigms of evolving market dynamics through the bubble-and-bust history, in order for a regulatory system to function optimally, to strikethe balance between fairness by rules and freedom of action that serves the economy, and promotes growth prospects, in the long run.
Martin Wolf's reading of sources (Barry Eichengreen and others, in FT June 17) shows "How today's global recession tracks the Great Depression". It is certainly a good start for the new parlamentarians in Brussels to read and reflect around. I hope there are dialogue arenas around in EU that can fruitfully raise these problems in an interdisciplinary manner.
(June 14, 2009): Swedish prime minister Fredrik Reinfeldt and finance minister Anders Borg present their programme for the Swedish 6 months EU presidency, in a Financial Times article (June 4), identical to "The main tasks for Sweden's European presidency" republished at the homepage of the Swedish Presidency of the European Union (www.se2009.eu). Priorities are set to focus on (1) implementation of further remedies to the financial crisis ("economic and financial affairs of Europe"), managing the efforts to combat the downturn starting from the "current agenda of growth, competition and employment" by "restoring the functioning of, and confidence in, financial markets, and countering the negative influence on employment and growth." The two measures they mention, imperative to a quick return to sustainable growth, will address the problem of restoring credit supply and tackling dramatic increase in unemployment, respectively, by further design of schemes for remedy to financial ailment and by pursuing the Commission's initiative of active labour market policies including retraining workers to start up their own businesses.
(2) A new structure for financial market supervision and regulation will be established to reduce the risk of recurring harm to future generations, in line with recent Larosière and Commission reports, enhancing "ability to detect threats to financial stability", evidently an early warning system.
(3) Budgetary discipline, is a more courageous issue raised by the team, defining the bold target of how member states need to start reversing their huge budget deficits to get in line with the stability and growth pact and be prepared for further demographic challenges.
Other issues briefly touched in the policy draft are the transformation of the Union into a position that allows it to reap the benefits of globalisation. Europe needs a revitalised strategy, as envisioned in the Lisbon strategy, and needs to make its longterm economic prospects become more promising by means of (a) investment in human capital and research, (b) advancing external and internal openness (although the implementation of this point might clash with the new agenda for security control), (c) optimizing environment for business and innovation. The ministers believe the goal of the Lisbon strategy is more likely to become real by "more efficient benchmarking and evaluation, and robust institutional frameworks underpinning increased productivity and longterm growth."
We hope to be able to come back to comment and provide our independent report from a genuinely European and transdisciplinary perspective on how these constructive ideas can be made drivers in development by means of the dialogues and conventions held during the Swedish leadership of the EU Presidency to commence on July 1, 2009 and lasting until Dec 31 same year. Until then there are a few homepages to explore for the ones who want some deeper insight into the policy process on the Swedish arena, both closely linked to the government, Globaliseringsrådet and Finanspolitiska rådet, with a lot of important documents, links and files. These are the supporting bodies behind the scene.
Welcome to Sweden: here things are never as they appear to be, and it is always something else not mentioned on the agenda which is the main course for someone in agency. The Swedish summer has its clouds, but also its charm. Forgive us, and them, for they might not know better.
(June 31, 2009): On this sunny Sunday most inhabitants were walking along the city's waters, Stockholm for once appeared to merit itself for being labeled the Queen of Scandinavia and it was surely one of the most beautiful days during the year. On island Djurgården I met and talked to my dear friend Sture Linnér. Among the cultural personalities of Sweden he is the foremost. Not many of that caliber are left among us since Ingemar Bergman left the scene.
(May 28-29, 2009): It is obviously a key question how Swedish society can succeed in mobilizing and managing its competence resources to avoid controversy with the silent opponents that Gilles Briatta of the French administration warned of, at the preparatory gathering "Swedish Presidency 2009 - Finding Solidarity in the Face of Crises", organized at FHS/Anna Lindhs library by SIEPS and Utrikespolitiska Institutet (The Swedish Institute of Internationa Affairs). Changed a few words with Bo Lundgren, head of Riksgälden, told him of my communication with Soros and asked about the recent 50 bn SEK governmental allowance for currency positioning in the event of further deterioration on the markets. Lundgren simply said we will try to earn some money. And on Monday, June 1, the SEK appreciated considerably. Still, it might be wise to hedge oneself until the stormy summer is over.
(May 27-28, 2009): A much too unknown pioneer, Dr. Erich Franzke, Austrian-born psychoanalyst and nestor of Swedish psychotherapy education, international guest lecturer, leader who established a ighly respected seminar series in Kronoberg County, Växjö, visited our collegium for two days. His talks remind me of the lack of depth and serious commitment in present leadership and pinpoint the severe consequences of the emptiness and lack of core values in what we can be called personal governance, also among those who take on the responsibility to govern other people by reference to a representative mandate. We had in depth discussions on what triggers personal maturation, on the cross-fertilization of individuation and social adaptation as a precondition for a healthy process of personality growth - and we were able to exemplify how failures in personality maturation lead to severe disturbances and unnecessary cost in the management of our representative political democracy. So, obviously, the experience and competence resulting from a long life in service of peoples' health, interactive functionality and quality of life, their productive and creative faculties, is highly relevant and needed in service also of society and its political governance.
(Feb 20, 2009): Today, the first winner of Birgit Nilsson Prize awarded by the Birgit Nilsson Foundation was announced by Professor Rutbert Reisch on visit to Stockholm from Vienna. I had a meeting of Dr Reisch at Grand Hotel today, a site where I conducted my dialogues with the Nobel Laureates in 2001. Details on my contact and communication with Birgit Nilsson to be revealed later in autobiographical essays.
(Feb 18, 2009): A new university, Linnéuniversitetet or Linnaeus university, will be created on Jan 1, 2010 by fusion of Växjö universitet and Kalmar högskola. Here is the public short version of a strategic proposal for a new transdisciplinary academy at the site of Italienska palatset, at lake Trummen, across the Teleborg campus in Växjö, entitled "Linneuniversitetet och Italienska palatset behöver ny akademi", published by Smålandsposten (Smp Debatt, Lobbyn, 23.1.09). In a letter to the coordinator of the Linnaeus university, Lars Haikola, Dr. Areskoug suggests three overarching goals entailed in the concept suggested for discussion (In Swedish): "Det rör sig om ett förslag med syfte att förstärka den för högskolan centrala kvalitetsfunktionen med tre komponenter: (1) en arena för ökade inslag av kritisk och social dialog, (2) kompetensbaserat nyskapande och kreativa verksamhetsformer som slår broar mellan konst, vetenskap och vård och (3) konstruktiva tvärvetenskapliga tillämpningar med entreprenörskap i sikte." (Feb 18, 2009). A more detailed proposal was submitted to the chariman of the board of Italienska Palatset, Professor in entrepreneurship Bengt Johannisson, and will be published in due process at this site at a later point in time.
(Feb 15, 2009): NEW SIGNS OF POPULIST VALUE DETERIORATION IN SWEDISH CULTURAL POLICY-MAKING: * * *. The governmental bureaucracy, the Swedish department of culture (Kulturdepartementet), just launched another fatal attaque on conditions for serious cultural production. A policy document (SOU 2009:16) proposing a thorough reform of the Swedish cultural sector while anxiously avoiding to anchor itself on defining the grounds for such key notions as quality and creativity. The fobic avoidande of concepts like quality, creativity and competence, is a clear symptom of where policy processes are heading in modern bureaucratic governance. This withdraws the fundament for any solid conclusion based on real opportunities for a cultural life to grow and mature in the next future. Creative processes at the base of cultural production cannot be reduced to a question on budgetary reorganization without loosing the essential point. The risk of further quality deterioration and a loss of unknown opportunities increases dramatically in a society urgenty in need of improved cultural coherence and value-based coordination. History is the sole judge.
(Feb 2, 2009): WHAT ARE THE WAYS AND OPTIONS AT HAND TO REDESIGN A GLOBAL FINANCIAL SYSTEM AND RESTORE MARKET FUNCTIONALITY? We have suggested a model of value conversion as a new basis (Our project Financial Interpretation Research, FIR). Its advantage is that it caters to the needs of more kinds of values and more stakeholder interests and above all to a common perspective of aggregate social need than most conventional models...
(Feb 1, 2009): EXECUTIVE SUMMARY - ROOTS, PERSPECTIVES AND PROSPECTS OF VALUE-ORIENTED STRATEGY IN GOVERNANCE AND LEADERSHIP STRATEGY - CONTEMPORARY STATUS AT WEF 2009:
Consensus can be good or bad. And there are two kinds of bases of consensus: it can gravitate towards basing itself on populism or on elitism. Unfortunately it is not that populism is good and elitism is bad, as is the previling governance in countries like Sweden, and not the reverse either, that elitism is only good, that was the prevailing ideology in US until the present crisis made us rethink values. In democracies, people are rising to leaders by means of consensus populism; then they become part of the elite they always resented. Or in the now tainted paradise of private power, the American dream, you rose by being and acting with your sole force and on the wings of the established elite, carrying Ikaros to dangerous hights. Now the wings melted and Ikaros is falling. It is more complex than that: you have the democratic majority of a consensus of the people, of the many, and this consensus can be good if it is a "we". Then, if you are elected, you are representing a consensus populism, but in a talented way. That can be good. The best part of the Scandinavian model works that way and in none other. But there are also the knowledgeable, whose good ideas are misunderstood or not listened to; they are the true elite. They may remain selfish and selfcentered if excluded. Or they may be included by the wisdom of the people, if the people has learned to listen, not if the people is merely shouting its own populist "me", "me". Then the individual talents will form elitist communities, defend themselves against the populace, and establish elite consensus, which is good only if in the service of mankind. But political leaders have a responsibility that they often deny, they are not there only for the quick fix, for the immediate gratification of the people, to secure their own power; but to ensure that an open arena for the best ideas is kept vital where talents can play and where ideas are exchanging places with capital holders unhindered by political narrowmindedness. There, a few problems of the implementation of good leadership in our times is addressed.
In Rebooting the Global Economy, Nobel Laureate Economist Stiglitz raises the question on social value: what is the moral of throwing good money after bad onto sinking banks - already at this point we do not know what we are getting into when we paid to banks sums of an amount the same of which had been able to secure social services in the US for 100 years. The Swedish solution were in a small country where the debt could be measured and handled and does not apply as a solution on a global scale. In another session, Swedish premier Reinfeldt failed to raise to the global perspective in recommending the homemade solution in an entirely different context. Nationalisation on a large scale can become a disaster if secondary effects cannot be managed and controlled which is, probably, possible only within borders. After cleaning up the first round there will be more assets to detoxify without automatically to get banking to lend again. To bridge tha gap of drying credits, I suggest a new private-public partnership, a lending bank purely, could be created to boast socially motivated spending and investing.
This years top meeting in the Alps reflects a clear shift in leadership of the world. The "heros" across all sessions are the outstanding Wen Jiabao of China for his qualified and balanced assessment of the global situation and PM Taro Aso of Japan, building on the values of freedom and prosperity, both with strong policy programs despite the coupled downturn in their countries. The chief of ECB, Mr. Trichet appears with a strong grasp and and integrative handling of EU economic policies. But the greatest hero on scene is Professor Schwab for his timely moderacy and a finetuned intermediary role in the Middle East conflict; his Global Governance Initiative is perhaps the most promising event in the sky for the next generation. He makes the most possible out of dialogue opportunities and make people feel reasonably relaxed while at the same time teasing them friendly and wittily with challenges without forcing them to step over their lines of governmental mandate.
The powerful moral message is: we can become great again, because everyone who can serve is great. It is about finding the way back to enlightened selfinterest, life is about we not about me.
ARE THE VALUES WE WANT TO LIVE COMPATIBLE TO THOSE OF CAPITALISM? (Jan 31, 2009): Tony Blair does not see the end of capitalism nor the end of free market enterprise, but we have reached a point of reflection. This is the new world but we have been taught the old system. The enlightened selfinterest is an old lesson we have to relearn and we need values to become the underpinning of enterprise. The concept of a wider interest should be the driver. The problem is that the global integration has run ahead of policies. Globalisation does work only if based on shared values of justice. It takes both leadership and courage to revive the concept of free entrepreneurship, stakeholdership, and of global values to drive the process of integration across continents. "Values are key to shareholder value" and culture translates to longterm success of a business, says Steve Forbes. Capitalism is about creating suplus but is modified by regulation and competition, and corporations need to performe with a sense of purpose. Simon Peres, with private permission from Schwab to remain an optimist, thinks of capitalism as a system for distribution of wealth, freedom - we have to think of how to create wealth not distribute it, science is free. Keynes said economy is about concepts, capitalism liberalism communism etc, equality upon freedom - Ford made better than Lenin. Social democracies bases on trust and welfare, but when we gave full permission the success killed the successors, the managers distributed lighthearted. It has to do with the implementation not with concepts of economic theories. We have to create wealth but do not know enough to do that. The world is free and individual people can create such great companies, as Gates. In industry you build, in nature you grow, along with time. Maybe we can learn to grow with knowledge in nanotechnology. New industries are independent. Unfortunately, oil is supporting terror, and is not unlimited. In Israel the idea was to build not to distribute because nature had nothing to distribute, only the water of Jordan river - so we learned to save irrigation water by recycling technology. You double the water by letting a computer measure the thirst of a tree. Teaching is a growing industry and needs to be up to date - it is the best way to distribute wealth, the bases of new industries are new technologies and it is only a good and promising beginning. Only the values of the ten commandments or the Torah remain. The crisis is also a spiritual crisis of selfregulation, we trusted the invisible hand too much so the invisible hand left us. Gandhi's seven deadly social sins arises to ones mind. We need to rethink purposes of business, the social conscious of business has been on sidebar. The sidebar needs to be guiding principle, the key question is, how does this crisis change us? (Jim) At the point of loss of trust, credibility and confidence because we did not deliver on our promiss, we need to look forward how that can be restored: do we have the right leaders in business and in government to deliver at a very critical period, we do need a new process and system of selfregulation, because we paid a high price of not adhering to values, by underpricing risk. We need new sciences and attract the right kind of talent. Regulatory framework must correspond to what is felt from inside, authentically. Steven, stressing regulation and values, but also putting metrics on the values is a challenge and brings a concreteness to the values of the top, but the hard metrics is needed at this time without straitjacket. Do we need a broader voice, a core of values for global leadership? Do present leaders have the courage? Tony hopes so. One major aspect of this crisis is the fact that it is global - and it requires courage to decide on progressive environmental policies used to revive enterprise to prevent us falling back into a model that was revealed to be obsolete.
WHAT GLOBAL GOVERNANCE INITIATIVE IS NEEDED? (Jan 30, 2009): The necessary capacity to optimize quality of leadership for the purpose of a global governance includes a critical selfreflection that needs to be more elaborated in order for it to meet the more complex challenge implied in integrating globally a variety of stakeholder perspectives derived from particular national interests. It order for this to become possible, we would need to use a phenomenological diagnosis of the quality and features in the cognitive reasoning that the leaders in power embrace. I have earlier suggested in my paper how knowledge integration across a few disciplines might help bringing forth a solid platform for such evaluations to become aired on a transdisciplinary arena for dialogue and thereafter accepted by the different parties. The reluctance to use sophisticated methods is costly because it delays progress and denies deeper conflicts that need to be addressed. Singapore, Qatar and Switzerland stands behind the project which will engage experts to generate a proposal of this timely initiative, to be presented at WEF 2010. A preparatory Global Agenda Council had made suggestions produced in a book whose members repeat from macro to micro the same mantra. To say one will look at the problem holistically is easy, especially if you are not challenged to define what that means nor obliged to present the epistemic grounds for the key concepts you need for this. Macroeconomists with firm belief in equilibrium and invisible hand theories run the world and we see and suffer the result of their lack of integrative notions. The top level coordination needed should counter fragmentation and transparency by communication and clarity. Education of national politicians was seen as necessary in view of the malignancy of the global imbalances that have been revealed in the wake of the crisis. In a session on the future of the financial system, again Trichet lays out the road to restoring confidence to get a more resilient economy designing the key role of G20. Correcting procyclicality and ensuring transparence are among the avenues to fight against shortterm myopia; the industry needs to adhere to longterm responsible goals. Peer reviewing of IMF and of all measures are underway. IMF has the global responsibility for surveyance. The kind of reform we need of financial governance in EU is coordinative of all central banks and surveyance bodies (BSC etc) in the same way as needed on the global level. ECB depends on the mandate given by governments which can be expanded. While experience of reality shows that central banks did not use their possibility to withdraw excess liquidity this is an important measure to be either anticyclical or at least not procyclical - because market themselves are procyclical in upswings; interest rates is not a suffcient tool in the toolbox. The introduction of a central counterparty to credit debts and derivatives is another innovation to balance markets. Dr. Tony Tan Keng Yam of Singapore worries that remuneration and incentive disparity between public and private sectors in US and Europe drains competence from important public institutions and governments. There are two possible options raised in a question, banks might be reduced by regulation to regulated utilities or understand that they are in a risk industry. But Trichet does not favor permanent utilities: the system needs cushons and airbags in case of chocks, buffers for exceptional situations. Should there be an international treaty to harmonize and coordinate national regulations to a common standard which need to meet international requirements, asks Walter Kielholz at Credit Suisse. Only smart regulation will rebuild trust? Trichet sees an emerging consensus on achieving political backing to the multinational institutes which are essential.
Fresh Solutions for Food Safety were searching remedy for a billion in hunger, famine and starvation viewing dire consequences for humanity and governments if not urgent action implemented. Kofi Annan states we have both shortterm problems to address and longterm strategies to install. Alliance for Green Revolution in collaboration with Bill and Melinda Gates Foundations engages scientists and governments, encouraged to join in projects to improve irrigation and grain cultivation. Money can be made in agriculture in Africa. Season fertilizers need to be at place in time, and other practical supply problems solved. Farmers can buy weather index insurance, as in India. The business sector is encouraged to working partnerships. Farmers are often hardworking women. Price volatility is a severe problem and can become catastrophic if commodity prices implode unpredictably. Food shortages depend heavily on distribution and price competitions, or lack of incentives and the history of famines demonstrates that hunger is not necessarily in places where agricultural infrastructure is immature. In some areas farmers learn to provide themselves through multiproduct production. Soluions require governments, businesses, NGOs, civic societies and intermediaries work together. Agra is a particular company working with a collaborative intention. How do you incentivize farmers and foster an entrepreneurial spirit to help making small businesses viable, is a key question in the focues of Michael Treschow.
WORLD COMPETENCE FORUM (Jan 29, 2009): A number of webcasts and documents from World Economic Forum merit consideration. Presentations show the urgent need of implementing in a more systematic mode the idea of the "holistic" approach often addressed by the WEF founder Professor Klaus Schwab. The world is in need of developing seriously the notion and ccognitive methodology of Integrative Competence anchored in a personal commitment to shared core values. Leaders are in search of solutions to the Crisis aiming at "Shaping the Post-Crisis World". In a session on The Economic Governance of Europe, replies to the question on coordinated governmental response to the financial crisis. Trichet holds that institutions de facto have responded adequately and functioned in response to the crisis, in solving immediate problems, but adds that the longterm calls for structural reforms are more important: he foresees an increasing effort to monitoring the financial industry by linking ECB more closely to the surveillance of banks, all in the interest of securing the resilience of the system. Resilience of banks can be improved with the supportive cooperation of EU; part of the remedy is already enacted or underway in form of recapitalisation, but one has to be careful not to overdo this. The correct policy is to find an appropriate level of recapitalisation, not to augment the level. These issues are discussed in the Basel forum in view of designing the policy requirements that will best meet future difficulties. With respect to the question on the credit crunch in Europe, one has to be cautiously attentive to the situation of individual cases. The effect of decisions already taken is not priced in - and those who face a shrunk horizon will get back on track while ECB is in effect commited to refinancing all commercial banks in Europe. Despite the bond spread reflecting the intracommunity tension, the euro is "not at stake", and it is not aberrant to take time to adjust in a correction such as presently in the Baltic countries which have recently gone through a change from centralized to decentralized economies. Following Barroso, the global crisis is unprecedented in its size but we are in a better position to defend the interests of our citizens: it will increase the europen dimension and the trend for coordinated global action. An evidence for the stabilizing effect of the euro in point is the case of Island versus Ireland, where the community's currency was able to provide a shield of protection for Ireland thanks to the "anchor of stability" that the euro is capable of exerting.
Valerie Jarrett of the Obama administration stresses transparency, respect and accountability to launch a recovery plan for the long term stability of growth in US. Global financial responsibility to stand up for values that represent democracy, dignity, respect and opportunity is on the screen. Klaus Schwab replied about the spirits of Chicago, universal values, to be vibrant and creative, and hopefulness, also expresses the idea of WEF in its commitment to global cooperation.
In a brainstorming session the first question - What is the policy assumption that created the mot damage to the global economy? - it is silently assumed that a policy assumption on the intentional arena of imaginary ideas can be effectively causative on the level of real economy. Were it just so simple, then the reversal of good ideas, the prescribed remedy to the ailment would also be immediately effective as a remedy, without the burden of test and proof that other drugs on the pharmaceutical market have to go through.
In a timely published proposal George Soros provides a highly readable model of remedy to the ailing financial market functionality, an update ("A Global Rescue Plan", FT 29 Jan 2009) to his The New Paradigm for Financial Markets - The credit crisis of 2008 and what it means (2008). It builds on the recognition of three system failures that make up his diagnosis. The system has allowed a number of hidden risks that when converging make it virtually imploding. One, there is an asymmetry of risk/reward ratio in between being long or short in the stock market, two, the seller of credit default swaps (CDOs) is allowed to take on practically unlimited risk since diversifying risk does not reduce it, and, three, misinterpretational bias in the pricing of stocks the fundamental value that was supposed to be adequately reflected in the stock price is affected through the emerging (self)-reflective circuit of mispricing which allows for destructive "bear raids"; these steps lead to a market collapse. The measures of regulation necessary to prescribe in order to resuscitate the market through intensive care, comprise (1) recapitalization of the banking system to get it work again, (2) orderly reduction of debt to reduce the cost of mortgages and foreslosures, and (3) preventing deflation at all cost. Soros suggests putting a floor on the oil price to keep it above 70 USD. The power distribution in the financial system must be reformed to upgrade the role of the periphery countries which are now suffering the sins of American self-indulgance. Although many market commentators, including authorities, are also favoring coordinated efforts to assist peripheral governments to engage in couter-cyclical monetary policies, and most suggested measures have been earlier proposed, Soros provides a hands-on grasp on the causal functionality that offers a much more credible explanation (by his reflexivity concept) than the ordinary scholastic "efficient market hypothesis" which once again proved severely inefficient to the present needs of globally connected societies.
URGENT COMMENTARY (on Jan 26, 2009): The governments are funneling huge amounts of cash to refinance the existing system: a chief of EADS urges the German and other governments to immitate the French experiment. But there is a lack of prioritization based on deeply rooted values. This is a dangerous way for European governments conserving an obsolete industrial structure. Instead, finance ministers should learn from elite entrepreneurs and market gurus who earned their money despite the friction of the markets: Ingvar Kamprad and proven survivors among the great industrial management families, the Wallenbergs and Söderbergs; as well as from the economic historians, top investors and market wizards such as Marc Faber, Nouriel Roubini, Robert Shiller, Jim Rogers, George Soros, and Warren Buffett. These guys are not cynical market players, but their insight is hard-earned and solid, proved of withstanding harsh resistance. Transparency in open society also speaks for an open policy that declares its grounds. These grounds can be shortterm reactive actions, midterm tactical measures or longterm strategic goals that will set the direction of the broader societal evolment with greater impact on the course of history. The problem is that politicians under pressure will ask for the opinion of experts who are assessing the situation and the options for policy decision under much too constraint and narrow conditions. While macroeconomics, and certainly the European version of Nationalökonomie (nationalekonomi) is far from a science, nobody would dare to say that it is an art either. The epistemic basis of the economic disciplines, whether technical, fundamental or economic, are poorly understood. The people in the game show no sign of critical selfinsight incongruent with their selfinterest.
Young people will again feel inclined to question the bases of the 'whole' economic system which put social and human values on a shaky ground. The ground for societal cohesion of values, human values of life and safety cannot rely on the measures made by stock market operators. The principles of valuation for material value are different from what people need as social beings in society. The shaky value grounds of the whole "MBA concept" will need to be scrutinized and probably replaced by a more solid foundation for value-oriented business and investment. Trust is the new and sole currency to rebuild global economies upon. That can be achieved only by a profounder reconsideration of the deeper value basis of the whole agenda and basic structure of the programmes of the business schools. It is the cynical and superficial approach to human and social value, and the undue simplification and monodimentionality in thinking that needs revision. If things are so connected and complex as they now seem to be then reductionism is foolish and other academic disciplines, those that cultivated reflection on values and human predicament and learned from the history and culture of human society, might well be consulted to form a new core of a European business education program. It should become global not be means of heavy marketing efforts but by its inherent merits and sustainable epistemic models for a sound socioeconomic thinking in a new global context. It is clear that this new ideal for fostering a young generation and preparing them for economical life can no longer build on the American dream. It was a shallow dream that turned out to produce one bubble after the other and to a considerable cost to humanity. The centerpoint of global economic life will now shift geographically, but more essentially, it is a shift in mindset - towards a more humane paradigm for mutual sharing and exchange of the limited values available on this globe. "Politicians are the new stars at Davos" is the headline in IHT today, and "Perhaps schools are partly to blame?" introduces the global MBa rankings of FT, but finally, one can only hope that Valerie Jarrett, a confidante of Obama and his Michelle, gets the take home message written inbetween the lines of what Roubini and Shiller will convey at their Friday night session on "The power of fear in times of uncertainty" at Davos; this message ought to be that of sense and seriousness, and a broader and deeper competence respecting peoples' needs and values, heralding a new era for the benefit of humankind.
FIRST "SNAPPHANE" CONVENTION (on Jan 16, 2009, Sällskapet, Stockholm): We enter a process of dynamic exchange with the creator of the Philosophical Park in a talk with Prof. em. Gunnar Adler-Karlsson at the dinner table: On the Agenda (in progress): (1) The core philosophy of GAK - the Alphamale over Population (A/P) quotient minimization as driver of the history of human society (in the sense of Hegelian world-spirit) on the basis of Darwinian evolution in nature - and society in view of the status and future of evolutionism in social sciences (on the occasion of the Darwin bicentennial 2009 - link to the FWC Areschoug centennial 2008 and Bengt Lidforss), (2) the prospect for an integrative science and causes of resistance against its establishment in society.
POLICY ON COMPETENCE LEVEL OF EU GOVERNMENTS
The importance of personal competence among ministers in European governments is underestimated. One way forward would be to incite a process that introduces legal requirements of higher education as a prerequisite for a postion as a minister in a EU government. This would likely improve the reputation of EU as a political power on the global playing ground. There will be massive resistance against such a proposal and due to national and cultural traditions around the 'party politics' the idea would probably be silenced quickly if it reached at all any public awareness in media. Therefore, it is more pragmatic to envision a growth of awareness of this problem on the central spot and public opinion making radiating from Brussels and NGOs who understand the issue of competence for the future of society. (080109)
NEW YEARS EVE 2008 - A 2009 FORESIGHT Spot Confluence Reflexion
We added the red lines above, a bold statement indicating that there is an urgent need for a new critical site of in depth based opinion making as the market collapsed and the public institutions succumbed to the temptation of cheap marketing methods in their political opinion making. The consequences of such a twofold deterioration of the structures of societal trust beyond the drivers of narrow private interest can hardly be underestimated. This theme would need substantial explication that will have to be provided in public presentation.
The state of society and of societal institutions, as the politically imposed processes of knowledge application disintegrated, is worrying indeed. Lower level talents who manipulated their way through the mud reached the towers of power and use the methods of uninhibited power manipulation to reach their goals.
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YTTRANDEFRIHETEN HOTAD I SVERIGE - Läs om könsdiskriminerande censur i Dagens Industris online forum. Tidningen DI online publicerad en artikel med titeln "Sverige är bäst för mammor". Dr. Nils-Göran Areskoug, docent, genmälde "...och sämst för pappor" och skickade sitt inlägg till DI. Redaktionen censurerade och raderade inlägget. Läs docent Areskougs inlägg här nedan. Areskoug kontaktade DI:s redaktion per telefon och förhörde sig om anledningen till censuren och om redaktionens inställning till svensk yttrandefrihet. Därefter insände han en förkortad version utan länkar till andra sidor som redaktionen menade ett inlägg inte får innehålla. Men även den snällare versionen refuseras och fördes aldrig in i online forumet. Det gapar tomt på inlägg nr 32. Läs här nedan vad du inte får veta genom svenska presscensurens ingripande.
FREEDOM OF SPEECH - Yttrandefriheten sätts på spel i Dagens Industri - The following comment was refused and removed from the public debate space (forum) where readers are invited to give their comments to published article (Dagens Industri, DI online). Article's headline: "Sverige är bäst för mammor".
"Sverige är bäst för mammor" (det har Rädda Barnen konstaterat i sin lista). Här kunde Are inte avhålla sig från kommentar nr 32. Du får gärna kommentera mitt inlägg och betygsätta det online om du vill:
Jo det kan nog stämma att Sverige är bäst för mammor. Åtminstone om man ser till mammornas egenintresse. Det betyder dock inte att det är bäst för barn och unga. FNs rapportör om hälsa och mänskliga rättigheter gav en hearing i riksdagshuset (som ingen minister enl uppgift besökte) och hade nyligen en del att säga om det i ett reportage i Läkartidningen. Sådant är seriöst och tystas därför snabbt ned i media för att vår egen hemmagjorda 'socialfascism' inte ska avslöjas. Den yttrar sig t.ex. i att mer än 200.000 barn har bristfällig kontakt med sina pappor och mer än 10.000 ser honom aldrig. Skadorna på uppväxande generationer är lika gigantiska som skandalens omfattning. Internationell medicinsk vetenskap och beprövad erfarenhet kommer att fälla en hård dom över vårt land. Och vårt statsskick - som bäst kan betecknas med termen 'konsensuspopulism' - riskerar att alltmer präglas av en ohöljd 'femifascism' som breder ut sig i spaltkilometrar av pappersmassa. Media reducerad till miljöförorening. Det är ett definitivt självmål av ett land som sedan länge befinner sig i utförsbacken. Läs Pär Ström om kvinnors maktmanipulation.
Om du är ung man och vill bilda familj - välj ett annat land. För saklig bakgrund om feminismens politiska övertramp (med familj och pappor som måltavla), dess socialmedicinska risker i form av skador hos barn och unga - anbefalles benäget studium av ALLIANCE FOR THE CHILD hemsida. Läs och begrip innan ni går lös med okunniga kommentarer och slag under bältet. Länkar: Blog: http://arow.blogspot.com and Website: http://coleur.googlepages.com/pas (skrolla ner en bit på sidan till alla länkarna under ALLIANCE FOR THE CHILD och informera er innan ni yttrar er i det offentliga rummet. Vi har nog med dumheter i atmosfären. Keep it clean.
sign "Are"
"Sverige är bäst för mammor" (det har Rädda Barnen konstaterat i sin lista). Här kunde Are inte avhålla sig från kommentar nr 32.
Jo det kan nog stämma att Sverige är bäst för mammor. Åtminstone om man ser till mammornas egenintresse. Det betyder dock inte att det är bäst för barn och unga. FNs rapportör om hälsa och mänskliga rättigheter gav en hearing i riksdagshuset (som ingen minister enl uppgift besökte) och hade nyligen en del att säga om det i ett reportage i Läkartidningen. Sådant är seriöst och tystas därför snabbt ned i media för att vår egen hemmagjorda 'socialfascism' inte ska avslöjas. Den yttrar sig t.ex. i att mer än 200.000 barn har bristfällig kontakt med sina pappor och mer än 10.000 ser honom aldrig. Skadorna på uppväxande generationer är lika gigantiska som skandalens omfattning. Internationell medicinsk vetenskap och beprövad erfarenhet kommer att fälla en hård dom över vårt land. Och vårt statsskick - som bäst kan betecknas med termen 'konsensuspopulism' - riskerar att alltmer präglas av en ohöljd 'femifascism' som breder ut sig i spaltkilometrar av pappersmassa. Media reducerad till miljöförorening. Det är ett definitivt självmål av ett land som sedan länge befinner sig i utförsbacken. Läs Pär Ström om kvinnors maktmanipulation.
Om du är ung man och vill bilda familj - välj ett annat land. För saklig bakgrund om feminismens politiska övertramp (med familj och pappor som måltavla), dess socialmedicinska risker i form av skador hos barn och unga - anbefalles benäget studium av ALLIANCE FOR THE CHILD hemsida. Läs och begrip innan ni går lös med okunniga kommentarer och slag under bältet. Länk: http://coleur.googlepages.com/pas skrolla ner en bit på sidan till alla länkarna och bilda er innan ni yttrar er i det offentliga rummet. Vi har nog med dumheter i atmosfären. Keep it clean.
sign "Are"
I STÄLLET FÖRESLÅR JAG ATT FÖLJANDE FÖRKORTADE SNÄLLVERSION INFÖRS SOM KOMMENTAR NR 32
The space at no 32 is as empty as is the freedom of speech in Sweden. Is it seriously threatened. I think so.
THE PROTECTION OF HUMAN RIGHTS OF THE CHILD IN SWEDEN
Debattinlägg av "Docentläkare", 11 feb 2007, efter Göran Harnesk, BRIS, utspel i Agenda, svt.se - här
MANIPULATION IN THE STOCK MARKET
A warning issued against Handelsbanken Capital Markets for their way of manipulating volatility of their emitted warrants in OMX Stockholm stock market evidenced by comparison with other emitents.
A SANCTUARY FOR THE ELITE
What it is? Not what you think. Not excluding anyone who is sufficiently capable. But we have a quite demanding competence concept that you need to measure yourself against.
