Does todays dominant economic and financial thinking violate the laws of physics?
Mainstream finance and economics have long been inconsistent with the underlying laws of thermodynamics, which are fast catching up as a result of globalisation! At present, economics is the study of how people transform nature to meet their needs and it treats the exploitation of finite natural resources including energy, water, air, arable land and oceans as externalities, which they are not! For example, we cannot pollute and damage natural ecosystems and their local communities ad infinitum without severe repercussions to their underlying sustainability. It is widely recognised both within the distinguished ATCA community and beyond that exchange rates instability, equity and commodity market speculation — particularly fuel, food and finance — and resultant volatilities as well as external debt are the main cause of asymmetric threats and disruption at the international level manifest as known unknowns, ie, low probability high impact risks and unknown unknowns or black swans. Th
