Monday, 21 November 2011

n-Financial Theology: Morphisms from Aristotle's Canon -- How to Deal with the Ultimate Epistemologies

1. "n-" stands for "natural" and "many an arbitrary way." So when we say "n-Financial" we mean a natural finance and a finance that has many different forms.

2. Understanding Any Particular Thing Requires Universal Predicates. As Aristitle taught us in his Prior Analytics, expanded in his Posterior Analytics and Categories, with a show of how powerful these sorts of fundamental arguments are in his Sophistical Refutations, any description of a thing that is aligned to a science and therefore, a complete understanding of its causes, will have universal predicates. This is how Aristotle solves his master's (Plato's) conundrum regarding how knowledge is possible amongst human beings. The act of knowledge is an actualisation of the potential 'universal predication' embedded within our specification of how anything we can observe actually works. The particular object of reality has necessary and essential characteristics that are obviously part and parcel of universals. The syllogism for Aristotle is an especially well-crafted 3-lined argument that starts with a description of a particular object predicated by a universal, by clever symmetry, leads to conclusions which are also universally predicated and not anticipated as a tautology of the premises. Modern logicians have argued that logic in a deep and big sense is just an ever-expanding tautology, but this is only in its most trivial sense. If one studies Category Theory, one begins to realise that the relation of identity extracted from tautology and re-engineered onto a system of arrow (morphisms) becomes awfully non-trivial because it is in the assertion of identity-in-morphisms systems that we begin to capture the structure of dynamics. Or, as Whitehead says in his Part V of a Final Interpretation, "the eternity of the ever-changing moving moment." In more modern Law and Finance discourse, this means capturing the form of risk in the system of trades. This could be at the bilaterally symmetric level tinged with Hohfeldian legal symmetries, or it can be at the rotational symmetric level, infinite amounts of fiat currency, debt, credit, on-balance and off-balance sheet financial contracts become aggregated and re-aggregated into affine patterns of interlocking legal memes which on the one hand are the grounds for hyper-evolution of product cycles and on the other hand, butterfly sensitive systemic contagion. This world of law and finance aims at financial stability and with each attempt to grow or brake, it overshoots inevitably towards hard default.

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