Duties of Regulators - Role of Bankers

Duties of Regulators
Role of Bankers
2010 04 17
Solvere Lim Swee Keng SM(MIT), MBA(Law)
Margaret Li Zhong Qi BEcon(BeijingU), PhD(NTU)
http://blog.163.com/solvere@yeah
http://solvere.blogspot.com

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2010 03 19 Singapore’s Business Time “Lots to Worry About Despite Recovery” Prof Barry Eichengreen, Professor of Economics at the University of California, Berkeley talked to Vikram Khanna, Associate Editor of Business Time.
The thoughts presented at this interview are inadequate in depth and breadth, weak in logic and reasoning.
For us to overcome this crisis, progress without recurrence we need greater wisdom.

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Summary

On Roles
Banks are lubricant for capital flow between supply and demand.
Banks are not significant wealth generator. If they are, most likely it is through distortion, exaggeration, fabrication.
Shared with Late DBS President Richard Stanley (2008 11 19) and Bank Negara Chief Dr Zeti Aziz (2009 05 09) agreement come spontaneously.
Regulators are responsible for ensuring banks toll the line, and serve this very purpose faithfully.

On Innovations
The first of four requirements for any invention is it must be simpler than existing solutions.
If one is making simple more complex it is not an invention.
The last requirement for invention is it must not cause harm to the society.
These are the crystallization of human wisdom; failing to comply will result in grave harm to society.

Innovation in finance industry must comply more faithfully than engineering invention.
Not only because assets held in banks are the more liquid asset, can be easily manipulated, it is also because there is no law of nature to governed it, we need man and law to govern it, which are weaker than the immense forces of nature.
If money is misused, all transactions affected, everything lost their anchor.
It impacted the whole society, the world, whether they are a party to it does not matter at all.

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State of World Economy

The severity of this economic crisis was defined by Allan Greenspan and Ben Bernanke. They are defined in greater and greater measure, clearer and clearer tone. By 2009 07 26 this crisis is defined as more deadly (“virulent” both uni-vocally used) than the Great Depression.

Great Depression without being resolved constructively ignited the worst destructions in human history. Even after two nuclear bombs detonated that ended WWII, calamities of Korean and Vietnam wars extended that destruction to last beyond 3 decades.

This lasted longer than the great depression itself until electronics industries bring world into recovery, peaceful prosperity.

Therefore, the resolution of this crisis peacefully is of paramount important. Serious studies into the cause and effect, solutions and actions must be performed with vigor and rigor, commit and speed.

Any wishful thinking, without proven foresight, logical insight, sound reasoning reminds me of Chamberlain.

Economists can afford to do so, but not governments, especially governments of nations vulnerable to international crisis, conflicts, like Singapore. Comparing to her population size, Singapore suffered one of the most brutal events in WWII.

Prof Barry Eichengreen provided a concise summary of what economists around the world have stated over and over again. But he has not answered key questions that governments raised:

2009 07 26 Mirror - Queen Elizabeth “Why it is so big, no one detected it”
2008 10 11 New York Times - Warren Buffet “Beware of Geeks bearing formula”
2007 08 08 After the market closed, the quants (financial engineers who quantified financial parameters, the more technical way of calling Geeks) gathered at One World Financial Center, Merrill Lynch, New York wondering where did they go wrong?
Three years on, the Geeks yet to provide logical answer.

Academics, including Prof Garicano at London School of Economics:

“at every stage, someone was relying on somebody else and everyone thought they were doing the right things…”
Queen Elizabeth described this as “awful”

Mirror.co.uk 2009 07 26

For such awful thing to happen even after many leaders inquiries, something must have really gone wrong, gone badly wrong.
Prof Eichengreen interview reaffirmed these wrongs are not addressed.

First, Prof Eichengreen said double dips, here, there, everywhere without explaining why it can end at double dip and why not single dip, why not three or more dips?
This is like seeing pendulum swinging without seeing the string holding on to the lobe, and whether the string can hold on to the lobe, when the lobe is getting bigger, heavier, as more labors, brains (not just China, India…) joining the same economy without new industry, new jobs!

Who do not know this is big trouble?
Scholar is to provide root causes of this trouble, even better, solutions.

On one of the igniting factor of this crisis - financial innovation, Prof Eichengreen said such should be allowed:
1. without giving reasons what these innovation really serve,
2. why these innovation are needed,
3. where has these innovation gone wrong.
These are inadequate statement, can only be accepted by the non-thinking, useful only to people without responsibility.

Financial Innovation

Finance is not the most difficult topics to comprehend, even children can be trained to managed their pocket money.
It is nothing more than number, all values must be converted to number.
It does not involve physics, chemistry, evolution.

Human has gained great wisdom since industrial revolutions.
Innovation, for that matter, invention, has been clearly, wisely defined in Patent laws.

There are four requirements for new ideas to be qualified as a patentable invention.
The very first requirement is an invention must be simpler than prior arts.

How can Economists do not realize what is simpler? What simplification actually is?
Globalization of economy is the most significant innovation in recent time.
A real, significant benefit everyone enjoyed is making complex banking transaction instantaneous, accurate, reliable, secured and available to everyone, transparent to regulator.
This is how technological innovation made global economy tick at simply a click.
How can Economists do not realize what a real innovation is?

Making simple into complex is definitely against the first principle of invention.
Financial innovation, initiated by Paul Sameulson using the Thermo-dynamics model to described market behavior. This evolved into Black, Merton, Scholes Derivative models. They lump what can be detected, quantified, accounted for, into complex, modifiable, impossible even to count.

Since then, bigger, more complex wrongs were made by famed economists.
Therefore accountants are guided away from the first principle of accounting – measurable, accountable and transparent.

It is the failure of engineers in educating economists on the basic of modeling; grave errors were allowed to happen.
It is the failure of accountants to stand firmly to their ground in face of famed economists, quantifiable accounts become alchemist’s formulation.
With astonishing failure so fundamental, Financial Innovation failed the last of four requirements for patent – Not Harmful to society.

It is a regret that economists, instead of soul searching, coming forth to provide unproven opinions to regulators.

Nobel Prize for Economics should be renamed Nobel Prize for Economy.
Else, fervent competition among scholars to create most unwieldy formula not only do not help the economy, it indeed aggravate weak economy into global crisis – these made economists no different from alchemist, the rapid act of vaporizing wealth of nations is it not similar to arson?

Any Economists who still insist on freedom of innovation must be reminded this – Booby traps, Weapons are not allowed for patent filing. Every effort is made to eliminate Nuclear weapons.

Can financial innovations that are proven so destructive, be allowed?
I attended only few classes of Economics, when I was doing my Master in Mechanical Engineering, major in System Modeling at MIT. I am sympathetic with the Economists, many latter became Financial Engineers. We must help them out in a constructive way, before more destruction is engineered.

“for my dear Friends who are Financial Engineers”
page 47, “Post Industrialization Dynamos” ISBN 9810 833558

It is a regret that economists, instead of soul searching, coming forth to provide unproven opinions to regulators.

Duty of Regulators

The above provides fundamental understanding of what went so badly wrong in economics study.

Therefore, the key for handling capitals must be emphasized again.
Capital is the most liquid form of all classes of asset. What regulators need to do is to ensure the three principles of accounting – measurability, accountability, transparency.

Any attempt to fool regulators by going against these three principles, they are likely to be fabrication, destruction, if not felony in the making.
Any regulators seeking advice from Economists without seeking Modeling experts from Engineering, bound to fail due to seeking the wrong doers on work already shown to be wrong.
With such simple, rock solid anchor of accounting, only the less competent would say:

“the loan officers of those institutions knew far more about the risks involved…. than even our best regulators at the Fed capable of doing.”

Testimony of Alan Greenspan
Before the committee of Government Oversight and Reform
2008 10 23

Regulators must be competent to understand subject matters before they are qualified as regulators.
If they failed in competency, they must improve their competency than leaving it to those to be regulated.
This is the fundamental requirements of gate keeper, quality control….

Role of Bankers

Now we come back to the subject regulators regulating – Bankers.

Immense jobs and wealth generated when engineers invented semiconductors, IC, computers, communications. Many companies gained public listing around the worlds, billionaires a handful.

Investment bankers who assisted in these public listings gained high reputation; soon they are considered as banks.

2001, Solvere detected technology no longer adequate to drive world economy. Over abundance wealth cumulated over the technology boom found no real opportunities for investment - Interest rate will go negative. This is new fabrication by man, therefore there is no existing law to govern it.

“Real Economy, Realities of Economy, Economic Realities” 2001
http://cognose.blogspot.com.2007/08/real-economy-realities-of-economy.html
Compiled in “Cognose – Recover the Lost Key to Infinite Wisdom” 2005 Winter ISBN 9810 513757

Because there is no law to govern it, the impact will be unprecedented. This was immediately shared with a person whom Solvere felt may be needed to lead a sovereign fund. So they happened.

Technology powered boom propelled the investment bankers to become the biggest earner having biggest profit margin.
But when technology innovation stagnated, fewer new public listing took effect. Major industries are reporting less than 1% profit or making big losses, how could investment banks still reported high revenues, high profit margin?
Clearly, these are no longer real wealth generated.
These are wealth fabricated through exaggeration, manipulation.

We must go back to the very basic of what is the role of a bank.
The Bank is a lubricant for market economy - it helps liquidity move faster, more efficiently between real supply and demand for capital.
The banks should not be, cannot be, can never be a wealth generator.
If they are, most likely, the value is through distortion, manipulation, exaggerations, fabrications.

If bankers know their role, they can live happier by managing their greed better, resisting the temptations when their peers lost the wisdom, sacrificed their chaste.

These were shared with late DBS CEO Richard Stanley (2008 11 15) and Bank Negara Chief Dr Zeti Akhtar Aziz (2009 05 08), they concurred spontaneously, without a shadow of doubt.

Conclusion

It is through wisdom we alerted ourselves from wrongdoing.
It is through understanding the basic role of each party, the basic requirements for managing wealth, doing invention, can we avoid investing in great wrong, self-destruction.

Investment Bankers are not bankers.
Bankers are lubricant for liquidity flow, not a wealth generator.
Even investment Bankers cannot create wealth; they can only catalyst, facilitate, concentrate, expedite, intensify, proliferate wealth creation.

Regulators must know the key role of banks, and basic requirements of innovation.

Human are full of creativity.
We need only few good inventions, the rest are mostly marginal improvement, if not irrelevant, if not harmful, destructive. Most inventions are forgotten.

this article is sent to Finance Minister, Singapore, Chief of Monetary Authority of Singapore and Prof Barry Eichengreen

Forever Glorious

for Samina Khalid representing her nation in London
March 19, 2010

Glory is the emission of light
Though light is from strength deep within
Strength must be nourished by love beyond

Nourish the land
Sow love among man
Even deep in desert storms
True friendship shall bring peace in you

Now
problems, hardships, tragedies abundant
you are tormented
Wondering when Glory will return

Reaching across continents
Sow love not hatred, unite not divide
Even setting sun will certainly rise again
Glory certainly
will return

May we hold loving hearts God already blessed us
Wisdom, Strength will come
Glory will
last

3 Keys to Nations’ Success - Pride, Hardship, Simplification

3 Keys to Nations’ Success - Pride, Hardship, Simplification
2010 03 10
solvere.blogspot.com
Solvere Lim Swee Keng

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Summary

3 Keys

Many nations study Singapore story of success.
Lee Kuan Yew, one of the founders, pointed two important points for success – Pride and Hardship.

However, Singapore does not escape the greatest world economic crisis.
There must be some extra wisdom, over-riding wisdom that the world need, Singapore yet to cognize.
This wisdom is Simplification - the key that governs all inventions.

Simplification - Overriding Priority

Only through simplification, are we able to solve bigger, more complicated, more difficult problems.
Only through simplification, can we afford good, affordable housing, education, health care for the people.
Only then can we be confident we will be served by loving, capable, devoted people of own land, after shocked by retarded services in advanced nations' hospitals.
There is no time longer than that thousands miles of flight.
There is nothing more precious than own country, own nation, own people, own family.

Richest, most powerful must recognize their well beings depends on people willingness to serve them.
Their happiness depends on whether the people around them are credible, capable, loving, devoting!
These are not in the numbers, indices, models, even Nobel Prize winning equations.
Love, capabilities, credibility, devotion are more tangible than money, numbers, yet they are suffocated by misplaced priorities.
Such immense misplacement can only be the result of human nature misunderstood.

Simplification can be achieved only after comprehending the realities correctly.
Simplification resulted in effective, efficient, elegant solutions.
This is the manifestation of advancement of wisdom.

Therefore, Simplification is not just an indicator, it is the overriding priority, ultimate importance.

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3 Keys to Nations’ Success - Introduction

3 Keys to Nations' Success - Introduction
2010 03 10
solvere.blogspot.com
Solvere Lim Swee Keng

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Introduction

To succeed is everyone’s desire, even though success means different things to different people at different occasion.
But for sure, history tells us success will not come by, come by just through any change, reform, freedom, election even revolution.

Post World-War II, many new nations formed, only few industrialized, among them even fewer succeeded with clear recipe like Singapore.

Many nations studied Singapore story of success.
Lee Kuan Yew, one of the founders, pointed two important points for success – Pride and Hardship.

Today, the world is facing more deadly crisis than the Great Depression.
2009 Mar 11 “… most virulent since the 1930s” Greenspan ex-US Federal Reserve Chairman.
2009 Jul 26 “… more virulent than the great depression” Bernanke, US Fed Reserve Chairman
2010 Feb 23 “… the greatest financial crisis globally ever” Greenspan

After nations pumping in unprecedented Trillions Dollars, there is no creation of significant employment, there is no clear sign of recovery – Singapore included.

Pride and Hardship are necessary, but inadequate.
We need added wisdom, for sure.

Civilization progresses through endless inventions.
Invention is not limited to sciences, technology.
Every progressive step needs invention, spanning from Statues in Law to dynamic Social order.

Simplification is the first requirement for an invention.

Principles behind International Patent Law crystallized wisdom from centuries of scientific research, technological innovation - putting Simplification first ahead of others.
Simplification is the first and most important requirement for an invention, any invention, all inventions.
This is an unambiguous demonstration of its paramount importance.

Examining today crisis, this crisis was partially created by bankers.
They made simple, direct, quantifiable assets into complex, derived instruments with more than six decimals point accuracy - yet that are in fact impossible to be quantified.

This pointed clearly that the west has failed in the very anchor that governed all their thoughts - logic and reasoning.
They also eliminated the golden rules of discipline and accountability, efficiency and transparency.

The west has abandoned the very key for their success in the name of creativity.
They even abandoned function and purpose for the sake of profits, so that profits can be easily manipulated.
Human wit manipulated these beyond way to verify, means to ascertain, even by the best experts, all the Nobel Laureates.

Within few centuries of disciplined research, the west surpassed all others in organization, sciences, technology.
Yet the west abandoned discipline, ignored its preeminence, even failed to recognize it after disasters turn virulent.

It is a sad moment for the west.
This prolong crisis pronouncedly reminding the west they cannot preach freedom freely without real facts, sound logic, strong reasoning.
Even with these they still have to support with verifiable real facts, consistent and verifiable real facts.

Simplification improves efficiency, reliability.
Simplification also makes every wrong move surfaces, becomes transparent, naked earlier - disaster can be detected, mitigated before becoming virulent.

Cognizing NOT the criticality of Simplification, preaching of free market is baseless.

On Sep 2, 2009 at LKY at LKY School’s forum, expressed concerne on the immense costs of regulation – so immense that the world may only be able to afford regulation after economy recovers.

How could we heal a sick without arresting the cause, an important cause, the root cause?
It therefore demonstrated clearly this is the very important key Singapore yet to cognize!

How could the world go on, when freedom of market is for players to freely exaggerate, fabricate, manipulate at the expense of effective, efficient, expedient transaction between real supply and demand?

Therefore we need to regulate, we can regulate, we must regulate immediately and effectively by removing complication artificially introduced by the witty unwise fools.
We must simplify, make direct, make measurable of all tradable.

The purpose of this writing is not to praise or condemn any political systems.
It is to highlight, deliberate, emphasize the importance of Simplification.

With simpler solutions, everything is made more efficient, resources more nations can have timely access to, all nations therefore have more chances to succeed – which is the purpose of this writing.

This long introduction detailed how big is the error, where is the error, how error was made, how error till today is not yet properly understood.
This is based not on high ideals of socialists, nor motivation of capitalists.
It is built on the foundation of improved understanding of human nature that shaped history, that determined our future.
With these, we can go to fruitful, detailed discussion of the three keys - Pride, Hardships, Simplifications.

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1st Key to Nations’ Success - Pride

1st Key to Nations’ Success - Pride
2010 03 10
solvere.blogspot.com
Solvere Lim Swee Keng

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Pride

My Colleagues and I are determined that no one – neither the Japanese nor the British – had the right to push and kick us around.

We were determined that we would govern ourselves and bring up our children in a country where we can be a self-respecting people

Lee Kuan Yew
First Prime Minister of Singapore
The Singapore Story
A poster displayed at the Changi Chapel and Museum

Solvere visited on Jan 22, 2010
Short, cold, empty conversation with the person in charged
A young Australian, who is not a veteran, nor has the wits of Brits, nor rigor of Japs
A middle-aged Singaporean lady served with smile, warmth and commit to visitors

Pride, is the second most important elements that the living things’ desire, after survival.
Pride is needed to race, to hunt, to court, to mate.
Unforgiving laws of nature determined that those lesser have reduced access to pair, to mate, to father.

We need pride to stand while ceaselessly learning from others, working and competing with others.
We need pride to hold ourselves together to overcome failures that certainly come occasionally.

We take the most recent examples well comprehended by scholars, leaders – Asia Four Dragons.

Koreans were brutally treated by the Japanese before and during the world war.
Forged into them are the will and determination, the discipline and fire to compete head on with Japanese in every field they compete. Koreans become world leaders in electronics, handphones. Contrary, Sony, the Champion of Japan sought westerner as leader, and joining hand with once world leader Sweden’s Ericsson. Headway they made little, struggling they are in markets.

Taiwanese were better treated by the Japanese during the same period.
Not all Taiwanese are sure they are Chinese. Some named Japanese as their best friend. Even Taiwan had immense reserve, Nobel Laureate, effective bureaucracy. Important brand names Taiwanese hold one or two, but certainly not even one is clearly leading the world.

Residents of Hong Kong were so well managed by the British, through out century long of colonialism. When come to appointing Governor, no one challenged Her Majesty.
Can they stand proudly on their feet to offer the best of themselves, products, services to the world?

Today, how often do we pick up something with Hong Kong brand name, or merely just “Made in Hong Kong”?
Can HSBC stand tall without special rights, immense market from China?

These are facts on the surface.
We need to explore deeper into human behavior.

Bicycle was an important asset in old day’s Singapore.
During a street riot, Lee Kuan Yew observed a person carried his bicycle quickly up the stairs.
Everyone cherishes his precious asset, so Lee Kuan Yew noted.
Decades of concerted effort commenced to provide everyone an affordable flat to own, to live in.
Singaporeans became good, responsible workers.

Success of a nation relies first on the leader.
Successful leader, such as Lee Kuan Yew, motivated his people, inspired many leaders.
He brought Singapore ahead in competition and her economy therefore prospers.

For common person, some capital assets like vehicle, house, are important.
For nations, Gross Domestic Product, nations’ reserves are important.
But are not affordable housing and health care, education and skill training critical to secure cost competitiveness in a globalized market?
Winning competition make good economy, good economy is the end result not the cause, nor an adequate, comprehensive indicator.

No one can win by compromising oneself - even the rewards may seem promising.
Singapore entered a union to form Malaysia. No sooner was Singapore expelled.
This is remembered.

but how many cognize this is repeatable?
Recognize it is repeating?

Can any major investor dilute her character, employing agents to win edge in investing in others?
Berkshire Hathaway won better term for investment in General Electric.
Warren Buffett proudly proclaimed he could be greedier.
He did a global effort to find successor, he found none.
His son Howard Buffett is named the successor. The name of Warren's father is Howard Buffett.
Any major investor who has immense values to offer can pay lesser for what is priced much higher.

China won entry to learn the operations of Rothschild. China decided to withdraw.
Having strength is not enough.
Together with self-confidence, Chinese come and go at own timing.

Any big investor who has nothing significant to contribute, leaves the running of the company to the management, are nothing different from small-timer, casual punters, speculators.
They failed as significant investors, they merely buying, not adding values, not providing multiplier effect, not enabling breakthroughs, not opening new frontiers.
Worse, they do not gain new wisdom, added strength for themselves in the process.
They are ignorant of the agency theories.
This is like an animal parting a piece of its flesh to a carnivores and hope soon a bigger piece of lamb will come back as a reward.

Money cannot buy pride.
When commercials, donations, betting became more rewarding than the sports itself, Chinese soccer team decimated.
Even those with spiritual purpose, Monk gain over the rim donations, he kept a horse as a pet – before long he lost his path as a monk.
When doctors, nurses, care givers addressing patients, handicapped, as “clients” – we need no President Obama to tell system is falling apart!

When money becomes the primary objective, sole measure, every piece of work is for sale, everything will be done for more money, nothing will be done for the real purpose – nothing real will be accomplished, everyone falls.

Thinking immense monetary rewards can motivate people for real good, is an ideology, a failed ideology as proven in history, from ancient time till tomorrow.

Any nation that does not have pride will not succeed.
Any people who cannot govern themselves definitely will be decimated!
Even though American Indians were nomads, holding fast not to any land. But history witnessed them warmly welcomed others to their land without caution. They ended up as drunkards cornered into barren tiny little slump, away from the vast, rich land – land once their horses freely galloped, candors soared beyond clouds in sky!

The first Prime Minister made the right observation and pleaded the right pledge - stellar success he accomplished during his rein –generations of Singaporeans appreciated his effort.

Sharing these achievements, LKY School of Public Policies was set up. Not only proudly stating the name LKY, also expanded beyond merely Government (e.g. Kennedy School of Government) into all policies for public good. This is pride manifested, wisdom shown.

Ever this pledge be forgotten, the tide shall turn immediately.
Can a nation progress, children not disperse?

This is not ideology!
Repeated lessons recorded in history tell us what matters most in this real world.
Those who forgotten this ended up at the receiving end of brutal outcome.
Can we find any exception?

We were determined that we would govern ourselves and bring up our children in a country where we can be a self-respecting people

Lee Kuan Yew
First Prime Minister of Singapore

This wisdom resonate easily in any town hall meetings, any elections, any nations.

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2nd Key to Nations’ Success - Hardship

2nd Key to Nations’ Success - Hardship
2010 03 10
solvere.blogspot.com
Solvere Lim Swee Keng

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Hardship

“Singapore had succeeded in the past because it had a generation of people who grew up in hardship, were prepared to take risks and tackle challenges.”

Lee Kuan Yew
Senior Minister of Singapore
Poster found on the inside of a boy toilet cubicle door in North Light
a school for the less academically inclined

Great wisdom often found in humble places.
Less academic inclined, even shipyard workers, peasants became leaders, Presidents, even Emperors.

Leaders are those who lead the herd, overcoming challenges.
When severe challenges come, leaders have to unite all, select the best alternative and fight against all odds.
No alternative is perfect, every choice bound to fail at one point or another; improvisations are made all the time.
Even though not all leaders live to taste the fruits, the herd eventually shall see the victory, enjoy the success, as their pride pressing them on, leading them through crisis after crisis.

A nation already determined its failure when leaders are manufactured through express streams that subjected to lesser test, not solving real problems, enjoy bullying the weaker, soon they become disconnected with realities, truth, virtue, never mind the masses, ……

Those who are elected to serve are called Advisors.
Advisors merely advise, do they feel they are responsible to the outcome?
They needed no execution, will their wisdom progress in the process?
Youth, inexperienced, simple minds can becomes advisors – what relevant wisdom they have to offer?
They should be called Responsible Persons, Perons-In-charge.

A bureaucracy failed when those shouldering heavy responsibilities are called Super Scale.
They scale the super-surface without even looking for root causes - resolving small problems, communal quarrels, attending meeting, writing blogs becomes their important tasks.
What about setting direction, trimming wastage, improving efficiency, enhancing competitiveness?
What about nourishing successors?

Ministers are called ministers because they have to nurse sicknesses, minister solutions.
Grass roots are called grass roots because they nourish others with humility in order to keep the grass green, for leaders to harvest.
Civil servants are neither civil nor serving the greater good, the society will become brutal and broken.
Civil servants should be named as entry level, apprentices, light scale, heavy scale, immense scale….

Otherwise, when problems come, “Haze will go when monsoon come”, “dengue will go when dry season come”, “more, deeper drains”, “that University is privatized”, “the resignation I was not consulted”, “I do not know there are so many foreign workers”, "the greatest drug to invent is one that improve human memory" were heard loudly.

Those who said the above, you need not feel embarrassed.
You just need to recognize your responsibility is immense.
You just need to set high priority to understand the problem, ceaselessly improve your understanding.
You need to seek right solutions, to implement and improvise them.

Do not communicate to your electorates - Communicate with them.
Do not tell them they are not Ang Mo, Ang Mo solutions certainly work.
Even the greatest contemporary leader LKY's words can be found in the toilet cubicle door - who are you to say your brethren's has less wisdom than you, know the situation less than you?

And even God was sent to be crucified.
Who can manipulate everything at will?
Who can conceive even one flawless solution?
Even the most powerful, the smartest leaders in history did not attain it?
Ignorant, do not know the right solutions are natural.

One of Singapore founders, Goh Keng Swee recalled he had to exercise in order to have the access to inspect the nation’s vault.

A great nation is in the making, when leaders’ children are sent to the front, saving people trapped in dangerous spot, overcoming most pressing crises, fighting wars against mightiest enemy.

How to expose to hardship when time is peaceful, economy is prospering?

Young Singaporean men are required to serve two or more years of full time national service. Then they are required to serve up to about 40 years old as reservist.

I personally participated in the conversion of lay back, obese reservists into highly motivated, organized, trimmed and swiftly operation ready troops.

This conversion took less than five years.

Now, within less than few hours, we are able to mobilize civilians across the island and form into battalions of operationally ready soldiers, swiftly, confidently.
Security we sense, brighter future we shall hold.
We accomplished this through artificially created hardship with a purpose, a convincing, worthy purpose.
These fortified the strength, the will of Singaporeans even in their daily life, their work ethics, their values to investors.
We see students working part-time to pay the high tuition fees, we never see before.
We see old men and women taking first bus to work earlier than school children, riding motobike home latter than clubbing youth.
Chinese workers despised Singaporean for not allowing these elders to retire!

Singaporeans are able, devoted, never ask for higher pay, longer holidays, lessons in fine cooking.
Those who blamed Singaporean elders not able to work in over weekends are not human.
Those who do not discover Singaporean can work hard, are disciplined, are not interesting, are choosing the wrong segment of Singaporeans as peers, as workers, as officers -therefore setting the wrong curriculum, agenda, and over labor themselves.

Human basic attributes do not differ so much, every race has fair share of champion and laggards.
Leaders make the decisive difference - even layback can be motivated, obese can become trimmed and fit.

If the masses already took extra miles, leaders have to take much more, to be ahead in order to lead. Otherwise Champion can blaze their tails into delinquent.

Leaders cannot be functioning by eloquent speeches done, technology most advanced, spending coffer undone.
Leaders must be cultivated through challenges in real world, able to identify priority, do more with less, solving with effectiveness, efficiency and elegance.

They then gain insight and foresight, continue their journey with vigor and rigor, for an unwavering purpose of serving all people on the public front, and securing their regimes in their private feeling, deep in their hearts.

Serving can be beautifully said, but serving need solutions, what are good solutions?

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3rd Key to Nations’ Success - Simplification

3rd Key to Nations’ Success - S
2010 03 10
solvere.blogspot.com
Solvere Lim Swee Keng

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Simplification

Leaders cannot be functioning by eloquent speeches done, technology most advanced, spending coffer undone.

Leaders must invent more effective, efficient and elegant solutions.

Solution, inventing good solution is the key.
What is an invention?

What is an invention?
An invention is one that has fewer components, simpler, smaller; perform more, bigger, faster, easier.
This is the first principle of invention – well known requirement for filing patent.
This is shared among nations, with no exception.
This is not ideology; this is wisdom crystallized from centuries long scientific research, technological innovation.

Drainage systems is one of the most ancient invention, drainage maintains its primary importance even in most modern metropolis today – wisdom of our fathers dictated that no drains should be concealed.

However, Technology, Machineries make digging drains a breeze.
Therefore, more drains are dug. They are dug deeper, concealed, until it consumes more imported sand, cement, granite than building a house, the road.
They also becomes so difficult to maintain.
This is a common error in drainage design committed not just in rich metropolis, it happened even in remote fishing villages like Balai, Indonesia.

If the corridors on the second floor of ENV buildings got flooded - sending canteen operator sweeping in the storm is not a solution.
Flooding on second floor of Autobay in Bedok, built years latter certainly is no surprises - more, bigger floor trap, bigger inlet while keeping the drain pipe horizontal, without slope is not a solution either.

This is not the most costly mistake, a major mistake even after cost of labors, sand, cement skyrocketed.
Action is further taken to complicate, intensify matters - by expanding the cavity under the cover so that man can enter, access and perform cleaning and maintenance.

Make simple complex, make obvious concealed, adding many to one.
These are enlarging, propagating what is already wrong – can wrong not be multiplied, magnified, proliferate everywhere?

There will be no ending to this wasteful approach.
No coffer can support such costly expedition.
But the worst is human brains are left idling while lips asking for more land for drains, bigger budgets, more shopping trips.

This is a Technology crisis, it is parallel to Financial Crisis – inventing derivatives from what is already direct and measurable …
Financial Crisis resulted in few billionaires committed suicide. But it does not take away life directly.

Technology crisis impact not just market, systems, corporations, also life and safety.
Technology crisis is indeed a bigger crisis.

To solve this crisis, to keep the excessive brains, labors fully employed in constructive work, is to demand every idea, solution, machine, instrument, policy, law to be simplified, solve with fewer, smaller, lighter, everything made concise, easier, faster, less energy use.

The very first requirement for Invention is therefore Invention must be simpler than prior arts.

With this approach, computer used to be bigger than a train cabin, over 40 tons, consume 15 kilowatts, own by Defense department, operated by experts to make only Hydrogen Bomb.
Today, even less brainy know how to operate computers by dragging, clicking mouse and playing with his children at home thousands miles away.

This is the most important yardstick, not only more nations can afford simplified solutions, many difficult problems found simple, affordable solutions.

This will not just expand the economy, reduce the cost of living, it also inspires all the brains to engaged in elaborate considerations of every aspect of natural sciences and human behaviors.

With this sharing, I hope the world will start to evaluating everything at hand, and trying to simplify every aspect of all machines, construction, market, methods.

“Post Industrialization Dynamos” Autumn 2009, ISBN 9810 833558 detailed four key improvements encompass all aspects of machines, markets, societies.

The explanation here is adequate for policy maker to take position and set direction for technocrats to elaborate and implement, verify through experiments in real life.

One proven implementation is by rally forces inherent in water flow to concentrate and elevate flotsam to an easily accessible collection point and drip dry – there is no machinery, no power needed yet the filter is always clear, the flotsam so easy to collect – even by less agile, aged workforce.

This is one of the ways to address aging population - design jobs for the aged.

“Effective Separation, Easy Maintenance” Jointly invented with Leung Chi Lam. Solvere shared with Public Utility Board since 2005, Patent jointly filed with Leung Chi Lam IPOS200806192-4, partially implemented by Ch2M at Kallang River.

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Cloud Computing - Market Characteristic Must First be defined

referring to Ed Sperling's Cloud Computing Heads South of the Borders Forbes 2010 02 15

In 1980, Solvere witnessed at MIT the Athena Project. This project moved from Mainframe, Mini towards distributed computing on networked CPUs.

Some experience i need to share.

We have to understand what is the operations requirements we are addressing.

For Banks, unless they are doing complex modeling of derivatives, that is CPU intense. But today, we know this modeling led to collapse of financial market, so is there CPU intense work anymore for banks who want to be successful?

That remain with transaction based computing. This demands massive data handling, and low on CPU usage.

In this case, network speed, communication is of supreme consideration.

Is cloud computing advantageous in data intensive operations?
Today, data storage come in more than we need at affordable price, also we do see computer sending results over network than sending raw data over for computation.

Today, is 25 years after Athena project.

Biofuel is Not Bio-diesel, Bioethanol

It is wrongly understood by energy expert that biofuel is biotehanol, Bio-diesel.

Volatile like ethanol, diesel are needed, because of the rapid explosion demanded by Internal Combustion engines (ICEs).

1. ICE needs high purity, highly combustible liquid, gas.
ICE is highly complex, heavy, exploding instead of burning, resulting in high temperature, that even nitrogen also oxidize into pollutants, that need catalytic converter to break them down.
ICE must be replaced.

2. Volatile biofuel is fermenting sugar, celluloid into volatiles e.g. diesel, alcohols.
It uses only small part of bio produce while throwing away massive waste which are carbon rich, and generated a lot of carbon dioxide during the fermentation process. Even pure sugar, C12H22O11, when it converted to ethanol, C2H5OH, half of the 12 carbon is oxidize to CO2 during the fermentation process.

This is costly, unproductive.(the energy produced may be equal to the fuel, fertilizer, put into them, what about irrigation, labor.....)

This was highlighted in Singapore by Solvere to MIT Energy Team led by MIT President Susan Hockfield on Jan 22, 2009 in Singapore, 2 Days after Obama inauguration. The team concurred, but MIT need to keep the world informed and avoid major mistakes, costing not just the mother earth, but every penny, every drop of water, every grain of our food.

Solutions:

With rapid advancement of motors, generators, low voltage applications, we need not use ICE anymore. We can use turbo-electric generators for heavy duty, long distance transportation. With Turbo- we can burn low grade bio-waste directly, even without boilers.

Micro-turbine, as proposed by MIT Epstein is possible, if we use an Invention "Direct Thermal Transport" DTT to form high speed, high directional cyclone combustion to burn at lower temperature(no Nitrogen Pollution), even wet municipal waste(cyclone will dry up and prepare these for final combustion), to drive turbine directly (high speed, high directional exhaust) may not need steam boiler.

Posted on Comments to Report on Forbes
Building A Better Biofuel Bug
Jonathan Fahey, 02.11.10, 07:30 PM EST
Scientists have engineered a new bacteria strain that spits out biodiesel.

http://www.forbes.com/2010/02/11/biodiesel-engineering-microbe-technology-ecotech-biofuels.html?partner=technology_newsletter#readerComments

Direct Control Active System - DCas

Dear TR
Dear President Obama who recently commanded MIT to solve Energy issues.

We now witnessed the advancement of lighting in Haiti's relief. We must do more than this.

China has initiated using LED for road lighting, why America has not started this despite the biggest road network, the most advanced technological enterprises in the whole wide world?

Americans, you have to take leadership in making things direct, removing intermediaries, improving efficiency, expanding application to gain economy of scale. This is the only way you can maintain your position as world's leader.

Americans must leap frog ahead of China, by designing most appliances to run at low voltage Direct Current, so that you can tap weak energy source, such as wind, solar, waste heat, water flow to drive micro generators - this is much easier than making semiconductor, integrated circuits.

This has no limitation of physics, stringent demand for purity of wafer fabrication, etc. The technology is matured. You just need to have a breakthrough in ideas such as listed in Direct Control Active Systems (DCas).

This enable distributed power generations due to miniaturization, due to its ability to tap on low grade energy source, due to closest to the demand, minimal transmission/transforming up and down losses.

This is like moving from handful Mainframe to billions Notebook.

This is the more proactive approach, immensely bigger return, than making power grid smarter!

This is what President Obama can help to create new industries to catapult America ahead of the rest of the world.

This was how MIT, EE&CS, Athena Project. Silicon Valley, Route 128 overtook Akio Morita, Konosuke Matsushita, convert the hard time of Regan to joyful moments of Clinton.

Do aim higher, then America deserve the leadership, by leading the world charging forward.

Do integrate all wisdom, including here from Singapore, than divide a states that was united.

Detailed is filed as "Direct Control Active System" at Singapore Patent Office. This is not a sales pitch, but a sharing of wisdom to help the world away from civil crisis when energy, environment, economy tail spin.

Engineers take leadership in Leading the overcome of the most virulent crisis since the Great Depression.

Engineers move Away from inventing price models , fabrication non existing wealth.

Engineers, take leadership in Invention!

Solvere Lim Swee Keng
Solvere.blogspot.com
ideas@cts-ideas.com
Singapore

Post Industrialization Dynamos - Solving this Greater Depression

Solvere is honored to be invited by Frost and Sullivan to present at their world conference APAC region on the nature of today crisis, the root causes, the magnitude, impact, the wrong solutions, and the solutions on Oct 13, 2009 at Kuala Lumpur, Malaysia.

Click http://www.frost-gil.com/ to find more information and register today.

“the current financial crisis could be even more virulent than the Great Depression.”

Jul 26, 2009 Federal Reserve Board Chairman Ben Bernanke said

All experts, including all Nobel Laurates, are still treating this as only financial crisis
All policies are for mitigating damages

This speech, declare that

to overcome this crisis we need to
1. create new industries bigger than electronics,
2. must include rural industries, must solve energy, environment issues together with economic problems.

Solvere will be pointing out four key directions
1. 3 major new industries,
2. 1 reform
for the world as the dynamos to drive the economy again.
This strategy uses only proven technology, supported by many patents.
These are accomplished through new understanding of how civilization progress - our history, our technological trends.

-------------------------------------------------------------------------------------
Below is more about this crisis (prediction, analysis, etc)

Nature of Crisis

Bernanke has not comprehended this crisis adequately.
This is not a financial crisis.
Finance industries is not the only sector impacted, the only cause, the root cause !!

The great depression in 1930s, without effective solutions - Led to Second World War, Korean War, Vietnam war…..
Until Konosuke Matsushita, Akio Morita, Intel-Microsoft, Network-Mobile Phones, bring recovery, prosperity, and billionaires a plenty.

------------------------------------------------------------------------------------
Solutions must

Creating massive employment through innovation has been, always be the solutions.

----------------------------------------------------------------------------------

Wrong Solutions

Pumping more than 1 trillion from all nations, 1 trillion can purchase more than 20,000 units of 737
while Boeing only produced 6,000 737 in the last 40 years, 1 trillion yet to create jobs noticeable
Myopic, partial understanding of this crisis – damage escalation, social chaos, brutal conflicts, wars can only be the outcome

Experts failed to predict, forewarn, yet to explain.

This crisis is so big, must take time to form, must have manifested somewhere long before its explosion.
Not any Nobel laureates, Greenspan, finance ministers, predicted, provided reasons, magnitude, spread of this crisis till today.

England
Queen Elizabeth asked why to experts at London School of Economy, they answered after months of consultation “Sorry, Maam, we did not see it coming….”

MIT
Jul 2009, Solvere met up with scholars returning from MIT, the inventors of Derivative (Black, Scholes, Merton under guidance of Samuelson.)
They attended countless seminars, interacted with the famed, still pointing fingers to finance industries, without explaining why CDO is wrong.

MIT, the main source of modern industries.
MIT did not notice creating new industries as the solutions, the only solutions that brought the world out of many recessions, depressions, peacefully.
This is an even greater danger !!

--------------------------------------------------------------------------
Solvere Prdicted, Reasoned, Now Providing Solutions

By June 2001
Detected the root causes of this crisis are intensifying, and an analysis, its impact, spread and direction of solutions was shared with one whose character, ability is needed to lead Temasek Holding of Singapore.
“Real Economy, Realities of Economy, Economic Realities”
compiled in “Cognose – Recover the Lost Key to Infinite Wisdom” ISBN 9810 513757
recommended to reduce holding in technology, while waiting for emergence of new industries
to be first to detecting market movement, Temasek must hold the pulse of economy(retails, banking, telcos operators, media)

On May 18, 2006

“The world has Lost Direction – Reason & Solutions herein”

formalized solutions in a Special Strategy Paper
for The Visionary & Pragmatic Leader, A Politician & Experimental Sociologist
was presented to HE Minister Mentor Lee Kuan Yew of Singapore


On Sep 9, 2007
shared with Steve Forbes at his press club meeting, Raffles Hotel that
1. Technology innovation has come to stagnation.
2. Technological innovation has cumulated Over Abundance Wealth (OAW)
3. In a market with OAW, injecting well governed sovereign funds into free private hands, speculation will spread from non-key factor of production (financial instruments, real estate) to key factor of production (energy, commodity).
4. This will pull the carpet of survival under all industries, when only energy and banks are making big profit, rest are making low profit, losses.
5. Economy will collapse.
6. America must repeat and take the leadership, to create massive new industries.(specifics were given)
“Dynamite Economy, it is not a bubble, it is the worst challenge” Aug 13, 2007
http://www.cts-ideas.com/G0813DynamiteEconomy.pdf

On Nov 12, 2007
1. With the size of injection, with the weakness of whole economy
2. Oil will hit $120 in a few months time, together with all commodities skyrocketing
3. Market start to collapse once this point is crossed.
“Dynamite Economy, Proliferation, Wrong Solutions, Resolutions” Nov 8, 2007
http://www.cts-ideas.com/G1108DynamiteEconomyProliferation.pdf

subsequently shared with HE LKY that oil price will collapse before $150.
Oil hit cross $120 on May 5 2008, and peaked at $147 in Jul 12 2008
Collapse of world economy become obvious

Solvere Lim Swee Keng
SM(MIT) MBA(Law)
Engineer, Inventor, Philosopher

CtS Cognoscere Tenuse Solvere
Cognize beffore Happening
Solving beyond Root Causes
http://www.cts-ideas.com/

Q&A Aug 16 at Lagnaa Bare Foot Restaurant

It was a Full Moon Night, Aug 16, 2008
Two questions important to modern generations

Two Mexicans studying at Lee Kuan Yew School of Public Policies asked:
"What can i say to my Mother Land, so far away?"

Mexico is the belly of the Moon, as the word says.

Mexico is the craddle for ancient civilization
Even many wisdom has lost
Remains as the Moon in the sky, our hearts lighting up
Even thousands miles away from home
at the belly of the moon, our hearts are linking to

Mother, you have no lacks
You have no lack in silvers even many has brough away from your chest

Your children here
thousands miles away, even learning the wisdom from modern Asian
it reminds us of many folk lores, many stories told when we were in the cradle
the world, even moving faster, are connected closer to each other
the world, even competing harder, are cooperating tighter with each other

Mother, i shall share with my friends, under the gentle light of you
the wisdom i still remember
Mother, when i come back to you
i shall devote my time to recollect those that are lost
that we shall share the riches
with our brethrens all over the world

There were many conflicts and wars
There were many courageous warriors
But the greatest of all are those that unite the people
and bring them Peace and Happiness

May you bless your children, here
bring us the wisdom and the connection
that we shall be bridges for the people around the world
blissful as sitting on the belly of the moon

(rewritten Aug 26, 2008)

A group of Ladies asked
"How to do IT"

Today
technology has brought harsh work to be done by machine
engineers have designed machines that ladies can easily operate

Today
Human are made aware of the importance of cooperations, order and mutual respects
Wars and Conflicts, Exploit and Rape though can be wide spread, are contained

The need of strong muscles of man to labor, to protect, to conquer, to possess
no longer, no longer so frequently needed.

So many ladies like to gather with each other, comforting each otheer
This is only natural

But to do it to each other as man to lady
is a shallower understanding of relationships, of feeling of ladies

Ladies, have more sensitised sensors
Ladies, have more complex needs

What Ladies yearn for
is to have companions trusted
is to have companions caring
to do it is a small part of ladies yearning
to journey together, to care for each other
to cheer and to comfort
is what is more important
is what is more lasting
is what she and you will find happiness, and longing
even when some strangers may enter your circle

(rewritten Aug 26, 2008)

"Answer the Unanswered" Q&A - May 30 2008 @Arts House, Old Parliament Bldg

Ai 爱 Love Modern Simplified Character

Modern Chinese Character for Love is protect friends from the claws

claws of fowls, beasts, human

Ai 愛 Love tradictional Character

Ancient Chinese belief that you must first protect your heart from the claws

while walking on top of wisdom, collected by culture, heritage

zhao 找 find

To find, is to use hand to seek the ge, an ancient weapon

wo 我 me

when you found the ge, and hold together, then you have yourself.

Only when you found yourself,

has ability to hold yourself together, then you have yourself.

Else do not bother about who you are.
This is for individual, is it the same for nations?

During the formation of America, she has inadequate naval strength

so the British Empire boarded American Merchant ships, detained people.

US Secretary of State – Madison (latter President) raised issues, as it is against international maritime law.

UK Foreign Secretary Harrowby made the following statement:
"The pretension advanced by Mr. Madison that the American flag

would protect every individual sailing under it on board of a merchant ship

is too extravagant to require any serious refutation."

Lord Harrowby ’1804

When you have no strength, gain strength is your first, only priority.

Questions asked:

Asked a researcher:

If wisdom is described by frequency, what is your frequency?

Wisdom and strength come from rally with others
Great wisdom
is when you can rally with others
Greater is one who can discern and
adjust accordingly

i attempt to adjust my frequency with the environment

discern and resonate

then reason, run harmony

strike a harmonious resonance

Asked a person who witnessed brutalities amidst major campaigns:

How to make the rich and powerful less greedy, less destructive?

Animals, eat, play, rest

Human, even well fed, over provided

must keep themselves busy, occupied

Without benevolent pursuits

exploits and bully is only natural way

by those who has the means

The only way out, effective way out

is to provide them with alternatives

practical, effective alternatives

Alternatives that will sink their vigor

to derive profits, profit promising

resulting in effect benevolent

This apply to poor people as well

i believed there are crimes

but there is no criminals

there are only those unfortunate ones

who has no wise counsels

inadequate wisdom

to manage their situation, reources

asked a researcher :

If Lao Tze is alived, and you can ask only one question, what would I ask?

May I journey with you for a while?

asked a diplomat: Do we have a mission in life?

Every living things has mission in life - Survival

However

when society get cooperating

secure securities

human is not threatened with survival

Keeping everyone busy is important

The wise, the able must help

to device avenues to keep everyone busy

busy with doing things

that is not harmful to the mass

to the environment

We, you and i, have the special gift

So we must help to point out directions

how this could be done

We must provide tools and methods

to busy them to accomplish

what ought to be done, quicker

Today, We are blessed with over abundance

abundance of resource, tools, ideas

We can then rally more forces of nature

to attain more

with less resources

yet attain happiness

beautify effortlessly

asked a Mother from HongKong, met at Lagnaa, Jul :

Should I guide, with firm directions, my child growing up?

We are human

We have limited wisdom

We know nothing fully

Everything full of unknowns

Your Child is human

He has common sense and pure heart

He can discerns what adults may not

When we guide our child

We must not assume we know all

and he knows nothing

We must help our child interact, integrate with other

While together building up discerns, strength and devotion

We must discover our inadequacy and admit it
We must discern changes and alter our plans
We must observe strengths in our child

that may be even superior over us

We must not assume this is a one way lead and be led

This is a mutual cooperation

then together, adult, child

jointly progress