Gold Bullion

The obsolescence of Hedge Funds & the rise of digital agents

There was an idea I had last night relating to neural nets that I thought was really cool. While watching a documentary on global economics being “too complex” to manage for any person to understand or comprehend, which made me immediately think of  automated neural networks.

(for more information on the particular series of videos, check out the “Meltdown” series on Al-Jazeera

I believe our solution to these global financial meltdowns, are sovereign wealth funds like those used in the Nordic economies, however they aren’t perfect yet.

Imagine just for a second, the Nordic economic nations (Denmark, Holland, Etc.) that have sovereign wealth funds and how they’re currently managed.
These funds have fund managers which are people, and as people they’re fallible and corruptible. In my opinion, people should not be entrusted with such an important infrastructure. The reason we as a global economy currently go into booms – bust trends (and are affected by the fallout), is due to individual fallibility. My current neural network framework could quite possibly enable nations to trade their commodities and stocks nationally and internationally at very close to near the real value of the commodity or stock which would make speculation bubbles essentially impossible.

This economic policy change would slowly grow, nation by nation.  Each nation that enabled such an infrastructure would able to communicate directly with other national smart agents, and this process would continue due to the obvious extreme interest in global economic stability.

At this point I hope you can now imagine a world where speculators, traders, and hedge fund owners would very rapidly become obsolete professions. Obviously when you upset the current power structure at their bank accounts, it’ll start a war, and I’m not quite sure how it would be avoidable.

I would love to hear your opinions on the matter, we’re rapidly approaching a time when this will not only be feasible (which it is today), but it will be nearly mandatory as the stability it would give our global economy would be a much needed benchmark.