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My One Prediction for 2023
My One Prediction for 2023
The question that should be on our minds is: how are my household’s buffers holding up?
Lists of predictions for the new year are reliably popular. Here’s 10 predictions, there’s 17 predictions, over here we have 23 and a half… let’s strip it all down to one prediction: everyone’s predictions will be wrong because 2023 isn’t going to follow anyone’s script.
There are several reasons for this. One is that the vast majority of predictions are based on historical comparisons to previous eras. If the current era is unique in its combination of dynamics and instability, previous pathways are not going to accurately predict what happens next.
Recency bias leads us astray. The past 50 years of relatively mild weather, the past 40 years of Bull Markets, the past 30 years of financialization and the supremacy of monetary policy–all of these offer a warm and fuzzy confidence that the future will be comfortingly similar to the recent past. This assumption works pretty well in stable eras but fails dismally in destabilizing, transitional eras.
Stability and instability are not evenly distributed, so every cherry-picked bias can be supported. You predict slow sales? Here’s an empty shopping mall. See, I’m right! You predict a return to the good old days? Here’s a crowded street fair. See, I’m right!
Those who happen to be living inside an island of coherence are inside a bubble that they mistakenly think encompasses the entire world. This is especially prevalent in the top 5% who shape the narratives that influence the rest of us. If real estate is sinking in their little corner of the world, they predict real estate will crash everywhere.
If everything’s rosy in their protected enclave, they predict a mild recession and steady growth, blah blah blah.
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How Systems Collapse
How Systems Collapse
This is how systems collapse: faith in the visible surface of abundance reigns supreme, and the fragility of the buffers goes unnoticed.
I often discuss systems and systemic collapse, and I’ve drawn up a little diagram to illustrate a key dynamic in systemic collapse. The key concepts here are stability and buffers. Though complex systems are never static, but they can be stable: that is, they ebb and flow within relatively stable boundaries supported by reserves, i.e. buffers.
In ecosystems, this ebb and flow is expressed in feedback loops between the weather, environment and plant/animal species which inhabit the ecosystem. Ideal weather/food conditions may spark a rise in an insect population, for example, which then enables an increase in insect-predator populations (fish, birds, frogs, etc.) which then increases the consumption of the insects and reduces the impact of the higher insect population.
Fluctuations within this dynamic generate feedback that tends to reduce extremes and restore dynamic equilibrium.
In the human sphere, ideal weather increases crop yields which then enables a larger human population. When lean years replace fat years, the populace suffers from a lack of calories and births decline and deaths from disease rise as weakened individuals are more vulnerable to infections, etc.
In this example, reserve supplies of water and food are buffers that smooth out periods of want and instability. Suppose the populace depends on a river for irrigation and human consumption (cooking, bathing, etc.). If the river runs low, the populace relies on wells for reserves of water. In good harvests, grain is set aside for lean harvests; the wells and grain stores are buffers which can be drawn down to restore stability to a stressed system.
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