Cash on Nash to Lash at Communism but it's not making a Dash despite the Bash!

I haven't watched or read 'A Beautiful Mind' and hence when someone told me that John Nash and his wife met with a fatal car accident I just joined in a collective gasp. Only later did I learn that Nash was the genius behind the famed 'Nash Equilibrium'. My tryst with Nash's work was during management studies and my respect grew when I found the man's work helped various fields from economy to psychology. May their souls rest in peace and equilibrium.

John Nash won the Nobel memorial prize in economic sciences in 1994 despite his contributions primarily had to do more with mathematics than economics. He had very less interest in economics too. Then why economics? Well could be because Nobel prize didn't recognise mathematicians (Alfred Nobel supposedly lost his lady love to a mathematician) and hence economics, as a centrist would tell you. Or because Nash's work helped in economics the most than other fields as a conservative would tell you. Or because it was all a big fat conspiracy by the western world as a communist would tell you.

Why is it a conspiracy some might wonder? Well the reason is though the work itself was devoid of any particular politico-economic ideology it was used to further the 'capitalism is best' idea. 

The crux of the Nash Equilibrium in layman's terms can be defined as - when two or more person strategise rationally for his/her own benefit taking into account the others' decisions they are said to be in an equilibrium and would tend to achieve the most optimal result. Extending this to economics one might conclude that if each player is selfish and is after his/her own betterment then each would achieve optimal performance (wealth). Thus it was arrived that capitalism and free markets were good. Businesses compete in a free market for their own selfish goals and eventually making the market a better place to live in for all.

Uh huh but, Houston, we have a problem! Not all humans can be expected to be rational in this age. In today's cut throat competition, businesses employ hook or crook methods to make money. Bribes are freely given and taken, competing businessmen not companies are eliminated, cartels are formed, resources, environment and the unassuming, innocent, Homo sapiens are exploited. The term for all this in vogue is crony capitalism. But by definition it's a free market, no one is stopping the others from doing all the above and they are well within their right of being selfish!

And not just that! Inequality, a serious problem engulfing the world, is feature of this capitalism says a new age economist who has done some serious research. He has compiled his work into a book 'Capital in the Twenty-First Century ' which incidentally is a best seller (I keep falling asleep while reading it, promised myself to get back after finishing Gone Girl). He is a Frenchman with a very French sounding name, Thomas 'no not Friedman' Piketty. 

This video though dated gives a clear understanding of Inequality in the USA which sells the American dream

And it makes sense. Can someone start with millions or even billions of the green back from the best of Wall Street and aim to compete successfully against the likes of Costco or Walmart in their own game? They may disrupt them with an alternate delivery channel like what Amazon or eBay does but in their own game of brick and mortar behemoths? Not unless they have really shitty management. Even in the alternate channel the success of the disrupter lies in the failure of the disrupted. If Google waked up to the potential of a social network earlier, I doubt Facebook would even exist today.

Thus in a capitalist economy, the haves have a clear advantage over the have nots and some government intervention is needed to bring about a level playing field.

And Mr. Piketty isn't quite finished yet. He comes with his analysis on previous revolutions like the French and Bolshevik goes on to make a scary formula

Where, r is rate of returns from capital, g is the growth rate and boom is a boom - a revolution that could overthrow capitalism and in turn democracy as we know it.

It is high time we get something to replace Capitalism. Communism may not be the answer, but a hybrid socialism could very well be the optimal solution.

Are we entering a period of USA 'neutral' Superpowerdom?

When the 'Nobel' committee decided to award US President Barack Obama the Nobel Peace Prize in 2009, I was one among the many people who criticized their collective wisdom. Here was a man who was commander-in-chief of the most powerful army in the world, involved in two of the most deadliest conflicts in the 21st century and who has proved nothing with less than one year into his presidency. What I didn't know then was the almost psychic power of the committee to look into the then distant future.

In his two terms of presidency, the commander-in-chief has many peace initiatives as badges up his sleeves.

Troop Draw down was one of his poll promises and he made good of it, due to poll compulsions or not, and it has shown good results in security situation in Iraq and Afghanistan from the American perspective with less war casualties.

Iran was another bone of contention. At one point it looked like invasion was imminent and stories of 'leaked' battle plans doing the rounds. Then there was Stuxnet, a complex worm which disrupted fast spinning centrifuges, sending the Nuclear program of Iran back by several years. The president stood his ground against the hawks in the war department and chose financial sanctions instead of firing Tomahawks. Now it emerges a deal would likely be clinched limiting the Iran Nuclear program.

With Syria on the boil, it emerged Syrian President al-Assad used banned chemical weapons against his own population, a la Saddam Hussein. The policeman of the world was furious and calls for punishing the Syrian state was in the air. However, sense prevailed, largely thanks to the efforts of Russian Tsar President, Vladimir Putin.

When the Ukraine protest movement gained a critical mass resulting in its President Yanukovych fleeing to Russia and the annexation of Crimea by Putin, Obama did a balancing act of reassuring his allies and repudiate Russia through economic sanctions.

Finally the talk of lifting of the United States embargo against Cuba, a communist state right next door confirms USA has been making peace with most of the world.

Not just buying peace with enemies, the US seems to be cold shouldering its allies too.

Israel, the Jewish state on whom USA's middle east policy is based on and whose security it views as most important next only to its own has been cold shouldered off late. Be it the controversy surrounding Israel's expanding settlement policy or Iran Nuclear standoff, the Israelis weren't taken along.

Saudi Arabia, the next important US ally in the middle east had got a similar deal. Not being taken along in the Iran Nuclear deal, they have turned to Pakistan, a nuclear power. There are talks of how the Pakistanis have even pledged to deliver the Saudis, nuclear weapons, all for a price. Saudis also feel by not providing the Syrian opposition forces with more powerful weapons the Americans have let gone a golden chance to cripple the Saudi's regional rival duo - Iran and Syria. The Iran Nuclear Deal only cements the suspicion of the Saudis.

Japan is scrambling for defense ties with India and Australia to offset a possible US dormant position as China is asserting itself with new air bases and infrastructure in the South China Sea. United Kingdom the most trusted and closest ally, next only to Israel, recently went ahead and joined the China-led World Bank slayer, Asian Infrastructure Investment Bank (AIIB). Most European allies have joined AIIB. Eastern European allies are kept in the dark as well. Poland and Czech Republic were promised a missile cover which never came to fruition. Georgia and Ukraine still await their NATO membership.

All this seems to suggest that USA would enter a period of consolidation - economical and political. The shale reserves, favorable demographic situation, though shaken not flattened transparent markets, innovative and enterprising, highly skilled immigrant welcoming community, all allows for this consolidation to happen. This may not result in a multipolar world as envisioned by Putin but would result in a 'neutral' almost pre-WW2 United States.

Unless there is a Republican victory, which could change everything.