Investing
090308
Economics, 090603


My investment strategy can be boiled down to this: I want to be sure that I can get a little now and I want to be sure that I can get something later on. I appreciate that I am living, breathing and taking pleasure in this very moment and that instant gratification is not the silver bullet. A little of both and a cup of tea of tao?

I have spent a lot of time the last few months learning the basics about economy, stocks, funds and all that jazz. From my studies, following understanding has formed in me head. I think of the economy as the intangible force that is created by the participants interaction with each others. It seems to me as the survival of the system is highly related to and dependent on the continuous flow of interaction between participants. Force feedback-loops seems to be a vital part of the system ensuring its growth and sometimes this mechanism causes volatility. It seems to me that the system is ultimately based on the battle against entropy, and that one can safely assume that there will always be those circumventing rules or otherwise trying to exploit the system.

It seems to me as though the way to become rich, is to embody the essence of the system. Perhaps you can not become a coin, then try become a banker. Perhaps you can not become a unit of fiat money, then become a king or a high politician of some sort. So if you embody a key part of the system, you ensure your own wealth. Then again some principals of the system are more stable then others and who can tell what will be the most vital part the system tomorrow?

What parts of the system can be replaced and what will be the replacement? The way servers relay information and connects computers, banks relay money and connects sources of money. Banks enjoys the benefits of centralization. What will replace the banks? Where can I get some of that? Perhaps our ancestors traded with fire, something that has since long been replaced by the knowledge of how to make fire from two sticks of wood. Most certainly gold replaced fish and meat. Most certainly credit money has replaced gold. What will replace credit money and where can I get some of that today? What is a key to survival for the system in the future and where can I get some of that?

- Aramis

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