Sunday, January 4, 2015

Handwaving the universal inventory theory

Basically I give a bird's eye view of how distributed counting works.

1) The banker is a few lines of code.  It is modelled as a geodesic sphere with facets coming in pairs, the saving face and the lending facet.  These facets are the teeth in the worm gear, and the banker rotates locally in a congested environment, each rotation selects a different pair of complementary facets.  The act of rotation causes balances to compound discretely (finite order).  So rates and term length are cojoined.  The number of facet pairs the geodesic banker has is the no aerbitrage order, and it is set by the congestion level of its environment.

2) The agents, the users of the system will be in the approximate senter of the bankers rotations.  They will be a finite order, discrete power spectra describing a the uncertain center of the circle.  So the lagrange point that we all know and love becomes a finite order power spectra instead of a point. 

3) The no arbitrage moment occurs when the motion of the bankers rotations and the power spectra of the center match.

4) This insures local conservation of the congested environment.  The banker adjusts to maximize the divergence in its current location, estimating Pi.  When the no arbitrage condition is maintained, the banker moves adiabatically, it will not shoot off and lose its bearings. 

5) So, a quick review.  Ergodic, entropic, conservation and adiabatic are now connected. I think that is the theory of everything.  It should work for both atoms and solar systems.  In solar systems we should treat the collection of Lagrange points as a power spectra describing the motion of multiple bankers in orbit, for example. In the atom, the nucleus should be a finite-dimensional Lagrange surface. Fibonacci ensures local conservation, Lucas makes degrees of motion, Hyperbolics converts this to the sphere model, and Shannon makes maximum entropy. 

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