Bank Of America In Complete Denial Over Foreclosure/Putback-Gate

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Hi Max,

Your Coca-Cola boycott strategy is brilliant. I listened to your most recent interview with Alex and thought that you really nailed it this time (after several previous attempts over the past year or more which I also heard). It was very disappointing that he brushed you off yet again.

I arrived at the same kind of strategy myself after many years of attempting to apply my knowledge of complex systems (I have a doctorate in this field) to society at large, not including the specific target of Coca-Cola. At first I didn’t understand your target choice, but later read your rationale and then viewed a video about how Coke does business in the third world. You also mentioned the connection with Buffett/Munger.

I wish I had a brilliant idea about how to mobilize a boycott. I, too, would focus on Alex as the best way to catalyze a movement. It’s amazing how much influence he now has. He can get any search term ranked number one on Google Hot Trends in a matter of minutes.

But I do want to reassure you that, scientifically speaking, you understand how to move complex systems in a desired direction by identifying a point of maximum sensitivity to applied pressure. All complex systems have such points, where even a small applied pressure is magnified in its effect, sometimes resulting in what scientists label a “phase transition” or socially speaking a “paradigm shift”. These points are usually not nearly as common as insensitive points, where even maximum applied force yields little or no effect.

Locating a sensitive point of influence requires patient study of the system’s dynamics in order to know how much pressure to apply, and when and where to apply it. This is an art as much as a science. With sufficient skill, often only a mere nudge is needed, so slight a touch that it may not even be noticed, because the power to bring about great change is already inherent in the system if unlocked as if by a code (right time, right place, right pressure).

The amplification and propagation effect (sometimes called the “butterfly effect”) is due to the chaotic aspect of the system, whereas the stability, or insensitivity to disruptive influences, is due to the ordered aspect of the system. All complex systems have a dynamic balance between chaos and order, and it is this balance that accounts for the existence of unlocking codes.

These principles apply to systems ranging from ecosystems to social groups to human behavior to all manner of physical systems such as weather, heart beats and even art and music.

You’ve probably heard of the “butterfly effect” as an example of chaotic behavior in weather systems. It is said that a butterfly flapping its wings in China could produce a hurricane in the United States a week later. Although possible, in reality such an extremely sensitive point would be very rare both in spatial position and frequency of occurrence. The trick is to identify the desired latent potential of a system and then find the code that will activate it.

In the case of our current worldwide social system, and how to nudge it in the right direction, I think you’ve nailed it, Max. Please, don’t give up on your Coke boycott idea. I don’t think there’s a more elegant solution.

All the best in your great work,
John

• Interview #243 – Max Keiser

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