February 2016

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See Heart Unravelled

In nature each heart beat is triggered by an electrical signal generated in the right atrium. After the image unravelling produced by clicking on GO, pressing heart beat does the triggering.

The two columns in four colors represent a balance sheet. In the left column are assets; liquid assets are green, illiquid brown. In the right column are liabilities (red) and net worth (blue). See Balance Sheet Money for elaboration.

The two columns in four colors represent a balance sheet. In the left column are assets; liquid assets are green, illiquid brown. In the right column are liabilities (red) and net worth (blue). See Balance Sheet Money for elaboration.

See Balance Sheet Money for elaboration.

Scroll down to Section 11 at Balance Sheet Money for elaboration.

In former times - before the coming of central banks - each bank issued its own banknotes. Banknotes of one bank could be exchanged for those of another using the prevalent 'exchange rates.'

Today exchange rates refer to the price of one national central bank 'banknote' in terms of another. The European Central Bank's banknotes are euros. The U.S. Federal Reserve's banknotes are dollars. On December 5, 2011, 1 euro bought 1.34 dollars.

Scroll down to Section 15 at Balance Sheet Money for further elaboration.

Press PLAY first time:

See depositor put $1 in the bank. Depositor receives checkbook with drawable $1. Depositor's balance sheet remains unchanged by this action.

Bank augments its cash supply by $1. Green goes up by $1. And its liabilities increase by $1 because it is liable for the depositors check writing.

Can see that checkbook = money. This transaction shows that by virtue of deposit of $1 in the bank, there is created $1 more green in the world!

Press BACK for replay or PLAY to continue:

Bank lends $6 to borrowers by giving them $6 drawable checkbooks. Borrowers thus acquire $6 of green (of liquid assets). They also acquire $6 of red - the promissory notes (IOUs) they give to the bank.

Awarding these checkbooks, bank has increased its liability by $6; red increases by $6. In return bank gets IOUs in amount of $6. These promissory notes increase bank's brown (viscous or illiquid assets) by $6 for which borrower gets green or liquid assets of $6.

Bank is enabled by law to lend out a large amount upon deposit of a small amount; reserve banking law. Banks need keep, in ready cash, only a fraction of what their clients could demand. The fraction is called the reserve ratio. Illustrated is a case of reserve ratio = 1/7. In actual fact the reserve ratio has varied between 1/5 to the 1/10 of recent years.

Discussed further in Balance Sheet Money, Section 16.

Exposition at divineneutrality.org

There are five stages in this drivableGraphic: Click on button when it reads: go, continue, play, continue and reStart.

To see the details of the credit card transaction for which this is the aggregate picture, scroll down to Section 12 and its associated graphic in: Balance Sheet Money

It happens that a private entity - a bank, or a manufacturing company - is so large that its imminent bankruptcy threatens economic stability. To prevent bankruptcy the government's treasury either loans the threatened enterprise money or buys shares in the enterprise. It gets the money to do this from the central bank by having that bank buy the government's bonds. That's what is shown in the motion graphic.

The company under threat cannot, itself, borrow what it needs from banks because it is not judged credit worthy. The government then steps in and uses its credit worthiness to secure the rescue funds. Promissory notes (bonds) from the government replace promissory notes from the near failing enterprise. Often the government gets its money back eventually.


From exploring the physical world on a scientific basis this is the elemental finding: the world is made of particles (quanta) that inhabit space and time (spacetime). They move. They collide, perhaps fusing or fragmenting on doing so. The most elementary of such quanta are quarks and gluons, neutrinos and the leptons (electrons and mesons). The quarks and gluons are combined in protons and neutrons - hadrons. Hadrons together with electrons are the stuff of atoms. Atoms are the stuff of molecules. And they are the stuff of rocks, trees, flesh, water and air. Even sound and light occur in quanta; sound particles are phonons etc.

The ideas underlying Heisenberg's Uncertainty Principle forbid us from perceiving particles as we would billiard balls on a pool table where the trajectory of each ball is followed as it moves. The trajectories and the positions of quanta are not simultaneously observable. Quanta have wave properties. Like waves they pervade space. So the passage of a particle is noted in the space around it. The space attribute is the 'wave function' value at the space point. The notion of 'particles rushing around and colliding' is implimented by imagining that every point in space has attributes to which numbers are assigned. Instead of 'particles in space' there is only 'space with attributes'. The signature attributes of space represent a particle passing.


Stern-Gerlach Experiment

See the posting at divineneutrality.org for the exposition on this motion graphic. Figure 6.2 on page 149 of "Primer of Quntum Mechanics", M. Chester (1987) describes how the apparatus works.

The Happens Problem

Anything that happens amounts to a measurement. The environment must contend with what results. It records the result just as an observer records a measurement result. So measurement is not something constrained merely to the laboratory. But standard quantum mechanics treats a measurement event as a break in the flow of the deterministic laws of physics; a break in the unitary evolution of the state of a system. The idea is animated in the accompanying motion graphic. Click on the right and left arrows (→ or ←) for the slide show.That physical law should operate with interminable interruptions is philosophically distasteful. Physicists expect physical law to rule uniformly without exception. Therein lies the Problem.

Entanglement Doesn't Allow Communication

The local pair of detectors may be rotated through an angle alpha about the trajectory line. They need not be aligned as shown in the diagram. But nonetheless each of remote's pair of detectors will register 50% of the time - regardless of the angle alpha.