Blame Game

"Political Parties pretend to fight thus providing entertainment and distraction from the real issues." -- Ed Seykota "Govopoly In the 39th Day"*

Ed Seykota is an investor and a trader. He happens to enjoy helping other people grow and prosper and achieve the right livelihood.

Contrary to the widely popular book "The Big Short" by Michael Lewis, in which bankers, traders are being depicted as corrupt, greedy, and root of the evil bunch; here is a man, started as an engineer/a scientist, who made his mark on Wall Street as one of the most successful money managers of our time, and in the process, metamorphoses into a writer, a philosopher, a psychologist and a musician (yep, he has a band called Trading Tribe Band). If that's not enough, Ed speaks several foreign languages. Not until the publication of the book "Market Wizards" by Jack Schwager do people start to be curious about Mr. Seykota. Ed started a FREE trading tribe in 2003 and the site becomes a mecca for those who understand "seek and ye shall find." Though the site gains followers from every corner of the world, the conversations and Ed's teaching shuns away from anything flashy and egotistical. How a person accomplishes so much and still remains "under the radar" by the conventional standard is something I find it fascinating. Ed succinctly summarizes his path, "It is a happy circumstance that when nature gives us true burning desires, it also gives us the means to satisfy them."

But a word of caution. Despite his serious pursuit in life, Ed's facetiousness and dark humor are bar none. When people call him "a genius" or "a guru", his answer simply is:

"GURU = G(G)ee, You(U)Are(R) You(U)"

For those who expect to find the magic formula to getting rich quickly through Ed's teaching, you may be disappointed. Ed encourages people to align their inner psychology with their outward goals in order to achieve happiness and financial freedom. Taking up the torch from "father" of System Dynamics, his MIT professor, Jay Forrester, Ed shares the dream: to persuade K-12 schools to teach System Dynamics. He wrote the book "Govopoly in the 39th Day" which was published in 2013; combined with forty years' sweat, labor and love, Ed incorporates indisputable scientific data, common sense, and inexorable humor plus around 350 pictures and illustrations. Mr. Seykota may have partially achieved the goal because the book is easily readable by a 5-year-old to a 100-year-old. In the book, Ed is precise and prophetic about the direction of our country and the cycle of history. Without understanding the principles of System Dynamics, the world is a dim place.

Ideas are flat and linear, society revolves between comic and tragic mode, and human lives are perpetual juvenile and plagued by constant fighting and finger-pointing.

However, Mr. Seykota encourages us to be optimistic. Instead of fear and anger, Ed encourages us to understand the system dynamics, celebrate uncertainties so we may be able to survive and possibly thrive among the chaos. But don't hold your breath that the book will be on New York Times bestseller list anytime soon; many may find it hard to swallow. Luckily, Mr. Seykota is a philosopher, a truth seeker. Popularity to him is like a butt-naked emperor surrounded by imposters. To paraphrase Mr. Seykota,

Life is fair and everybody gets what they want out of life: some people play to win and some play to lose.

Here is the conversation between Ed and me, a student searching for life's answers from someone who has found wholesomeness in life. And this is just the beginning.

Me: Dear ED, it is interesting that you include Youtube's "All wars are bankers war" in your most recent conversation. Though the content of the video is visceral and horrifying, I am surprised by how few viewers saw it since it was published in 1996. The video reminds me of your "no conspiracy" in your book Govopoly. After I finish reading Govopoly I am relieved that how much time I have saved by ignoring news and propaganda on all sorts of media platforms. I learn to focus on the most important things in order to have the right livelihood.?I can't thank you enough.??

Here is my question: based on your teaching of a system model for dynamic behavior, a situation is mostly too complex or too interrelated for simple answers. Everything influences everything else. If there is no one cause for any event, why does the video only convey one message??That is to blame bankers for all the evil acts of war and instability of the world. You teach us to be intelligent beings with multidimensional thinking. System dynamics is not about being right and wrong or being one the left or one the right. Blaming is linear thinking which is shallowly placing causality over responsibility. In system dynamics, everyone is responsible. Do you agree that the video "all wars are bankers war" is too banal and obvious??If all filthy rich bankers are evil, does that mean the masses are innocent and angelic?

If so, the revolution is inevitable and justified, isn't it? Please advise.

Ed Seykota:

Thank you for raising the blame issue and for caring to think deeply about it.

I include the banker’s-war video on my site to?present additional information about many of the?events that appear in Govopoly. I do not include the video?to vilify (or deify) specific groups – such as the banking sector.

System dynamics aims to identify and verify?structural relationships and how they explain?associating behaviors.

Govopoly presents a structural model and?a step-wise simulation of the evolution of our economy that explains many of our current directions; it does not place blame on any one element or sector.

In my experience, people do not generally think in terms of system dynamics; they think in terms of cause-and-effect and assigning blame.?

For example, you might notice a recent increase in crime and violence in some of our inner cities.

Govopoly suggests this associates with the disappearance of the Free-Competition Sector. Free Competition provides opportunities for individuals to employ their energy and talents in productive ways. Absent these opportunities, individuals may turn to alternative forms of livelihood.

Our modern media frequently employs the cause-effect-blame model. In this case, it blames?the rise in inner-city crime and violence on guns. This kind of thinking?supports of?anti-gun legislation even though such legislation may act to further suppress the Free-Competition Sector.

For?another example, Jack, an alcoholic, lives with his wife, Jill an enabler. They form a system in which Jack drinks and?irritates Jill. Jill responds by?complaining; her complaining irritates Jack who responds by drinking.

Both parties blame each other; neither party appreciates the underlying?dynamics or their role in it; they do not have a model that supports their working together to restructure the way the pressures interact within the system.

For yet another example of the prevalence of cause-effect-blame thinking, as you point out, the banker’s war video?places blame on the banking system.

At this point, in our cause-effect-blame society, you might even notice a?temptation to?blame causal thinking !

An approach more consistent with system thinking merely observes and models the dynamics, without judgment, and then aligns an investment portfolio accordingly.

In our current case, you might notice the continuing assimilation of the Free-Competition Sector by the Govopoly System.

This indicates a continuing decrease in the overall standard of living, including a decrease in manufacturing jobs, an?increase in dependency on government, continuing inflation and volatile moral-hazard markets.

*To learn more about Govopoly, please click here:

https://www.edseykota.com/conversion/home/home.php