Dalio, again

Moral: Wherein we consider other views of the Fed.

Forgetting the particulars of Janet, we can discuss Ray Dalio's take. In an earlier view (Feb 2014), we looked at his model of the economy. And, we suggested that people watch his video with which he presented his mechanistic model (see image).

Aside: For Ray's view, "mechanistic" is used purposefully to align the conversation toward science. We all know that the dismal-ness of economics can be, in part (small part), lessened with better science. However, as we know, too, the mechanical view is a rough order-of-magnitude approximate to the relativistic look (which, by the way, is not complete - to be filled in, eventually, through consideration of things left out, for now, due to the troublesome-ness).

Now, Dalio has accommodated us with  more of the same in a talk with James Freeman: Soul of a Hedge Fund 'Machine' (WSJ Sat, 6/7/14). In fact, Dalio admits that he runs his people as if they were machines which is something that we will get back to.

For now, we will say that people lining up to be driven by machines, if they are remunerated properly for doing so (and are doing so voluntarily), is just another example (perhaps) of human nature (consider, though, Smart and its money, we have barely touched upon that).

On the other hand, what has ensured with out-housing and computational overlays is the onslaught of the privileged, can-do-it-cause-they-can upon the hapless. Yes, anyone who sits at a computer and drives human affairs ought to give themselves some time to pause and reflect.

Actually, I would propose this: such driving types, please go down and work those same processes, for more than a few minutes, and see how you can bear up.

You see, the whole framework of the economy is an endless supply of hapless people who can work, be exploited, and produce for their time (until they are spit out like an empty bottle). And, technology allows this since exploiters can bop from continent to continent finding new suckers (and local, corrupted lords who allow their people to be thusly mis-used).

Aside: It is nice that the uppers of the military (for the most part - 90-day wonders as an exception) came through the ranks (however, the academy experience is not sufficient - the O-series ought to spend some time (to be defined) in the enlisted ranks (walking in their shoes).

Dalio (talking to Freeman) says that the Fed's game is incomplete. There is another thing that they ought to be able to do (oh yes, consider the savers, please), besides the interest (knob and lever) and printing (say, QE?). What would that be? Dalio does provide us some relief due to his timely intrusions.

But, we're being brief for now and will return to Dalio's comments.

Remarks:  Modified: 01/02/2016

01/02/2016 -- Dalio used in Quora.