Just one more point: I really mean to say a negative amplification effect….I think.

think that I dimly understand them. In the example of interest rate hikes, you are right, that is a negative feedback, exacerbating the outcome

from the feedback, and therefore is in fact, positive. I have been using negative feedback loop to describe capital injections into banks, which

are ‘positive’ in the sense that they may be costly, but do no harm (in contrast to hiked interest rates). However, because the capital

injections do not address the real disease – excessive debts – the feedback loop is negative.

Thank you for your attention….

Ann

politicians!

If only the mathematics of exponential growth and compounding interest on interest were understood…

With lots of

sighs,

Sabine
Publisher, Online Petition
“Stop the Cash Crumble to Equalize the Credit Crunch” http://tinyurl.com/666rwd

Organiser, Forum for Stable Currencies

“Once

again central bank governors are exacerbating the disease at the heart of this economic crisis: excessive credit that is now being deleveraged

chaotically. By these actions central bank governors are guaranteeing that healthy businesses and households are weakened and bankrupted thereby

turning the disease into an epidemic of defaults and bankruptcies. Ironically it will be the defaults of corporates, small businesses and

households that will, through negative feedback loops, further destabilise the financial system.”

I make this comment with the understanding

that if the input to the feedback loop is negative and the resulting outcome from the feedback is even more negative, this consequently is in fact

positive feedback.

Output caused by negative feedback is an inversion of the input to the feedback loop. This clearly has not happened with

the remedies implemented by central bankers and governments around the world.

This raises the fundamental question are the financial

institutions monitoring the incorrect signals or are the feedback loops badly designed?

Personally it is a case of flawed economic model

designs and consequently economies are impossible to control to achieve stability. Central bankers and governments are simply employing faulty

tools that are used to assist in making extremely important decisions that affect the lives of many, in particular the most vulnerable in society,

and of course these decisions also impact biodiversity enormously.

It will be a challenge to change these flawed economic model designs for

this will require a significant change in mindset.

I agree, the capital injections have a negative amplification or damping effect but do not effect the true cause of

the situation. This results in a false sense of control which in reality results in the most vulnerable people around the world and the natural

world absorbing the outcome of these flawed economic remedies.

This leads back to my fundamental question and my comment as to what is

required.

You are probably more knowledgable about the financial system than any financial or economic expert that is paraded in the media.

Your book ‘The Coming First World Debt Crisis’ is evidence to this fact and your slight misinterpretation or misdescription of feedback loops is

an oversight. What I and many others should be more concerned about are those media paraded economic experts and those similarly trained who are

employed by financial corporations and government institutions, do they understand feedback loops. Obviously not judging by the effects of their

remedies!

Adrian