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Ethos

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Ethos

Ethos - shared fundamental traits: the fundamental and distinctive character of a group, social context, or period of time, typically expressed in attitudes, habits, and beliefs.

Josef Wieland
Professor of Economics at Konstanz University, focused in his speech on the organizational prerequisites to implementing the Declaration. He clarified that not only companies are targeted by the Global Business Ethos, but all economic stakeholders: owners, investors, management, unions, consumers, NGOs, etc. Wieland said, “The principles must be reflected in the management system, which should provide incentives and support for the realization of moral demands in everyday society.” To feed the principles into day-to-day business life, the leadership culture, individual leadership style, business culture, and the way and means of communication, must all be structured adequately.

In his speech, Klaus M. Leisinger, President and CEO of the Novartis Foundation, presented tangible provisions for ethical management. “Morality – or lack of morality – is introduced to a social system by the people, their values and level of integrity,” he said. As it is not possible to recruit only “saint geniuses”, it is therefore key to develop an integrity and compliance management that incorporates moral values and rules into daily life of business transactions as well as a management development scheme that gives the right signals. To do this, Leisinger proposed three institutional measures. Firstly, the incentive systems must not only reward the objectives, but also the path towards achieving them. Performance appraisals must not only contain a credible value component, but – in areas where it is tempting to let precedence to what is beneficial in the short term over what is sustainable and socially acceptable – also break down targets into short, medium and long-term components. Secondly, ethics training should be a compulsory part of internal training and education. It should, however, not only be theoretical but include real case-studies, so that potential moral problems and their solutions can be identified and applied to real business life. Thirdly, Leisinger proposed to introduce minimal intervals between promotions to avoid giving someone higher responsibility who used illegitimate means to ‘look good’ in the short term.

Leisinger concluded: “The promotion of a normative corporate culture and normative structuring of management instruments pays off not only in a reduction of transaction costs through confidence-building, not only in the avoidance of damaged reputations or even fines as a result of activities either perceived as illegitimate or even illegal, and not only in greater security of expectation for customers and stakeholders, but also in a greater appeal for present and potential employees with an affinity for ethical situations. This leads to a positive selection of applicants and ultimately a workforce that supports and enhances an ethically motivated corporate culture. All this suggests that to integrate moral elements into the decision-making process and apply corresponding criteria when selecting managers is also a rational choice from an economic perspective.”

Sentiment / Socionomics
The Daily Sentiment Index in %BULLS as of October 19th (Thursday's Close)
Instrument % BULLS - RAW 5 DMA 10 DMA 21 DMA
T-Bonds 51.0 52.8 49.2 50.1
T-Notes 36.0 35.6 35.7 35.1
EuroDollars 43.0 43.0 43.0 43.0
S&P 84.0 83.6 83.2 80.1
Nasdaq 81.0 81.8 79.6 69.6
Vix 18.0 15.2 17.6 22.8
CHF 31.0 32.6 34.3 40.5
Euro 60.0 55.4 53.8 56.6
JPY 54.0 55.8 56.2 56.6
GBP 41.0 42.6 41.0 48.0
CAD 61.0 58.2 58.7 63.6
AUD 56.0 52.0 47.2 50.6
NZD 17.0 22.8 19.7 26.2
DXY 66.0 65.6 63.0 52.9
MXN 25.0 16.8 14.3 25.1
Crude 72.0 72.8 67.1 71.2
Heating Oil 68.0 70.4 66.0 65.7
RBOB Gasoline 67.0 63.0 57.9 56.1
Nat Gas 18.0 17.6 16.3 18.4
Gold 37.0 40.8 39.9 37.2
Silver 58.0 57.8 54.9 46.2
Platinum 46.0 49.8 48.1 43.5
Palladium 73.0 78.0 79.5 76.9
Copper 74.0 79.6 73.7 63.0
Corn 15.0 15.6 15.0 17.0
Wheat 15.0 17.2 19.1 28.0
Oats 67.0 62.0 55.8 51.7
Soybean 44.0 49.0 47.1 43.6
Soybean Oil 39.0 36.0 31.8 28.3
Soybean Meal 26.0 30.4 28.8 26.8
OJ 68.0 67.0 71.9 68.8
Coffee 27.0 23.6 25.2 26.3
Cocoa 73.0 65.4 64.9 58.2
Sugar 34.0 35.0 35.2 35.9
Lumber 85.0 88.6 88.9 88.1
Cotton 43.0 47.2 49.6 51.0
Live Cattle 58.0 60.4 65.1 59.7
Lean Hogs 40.0 35.0 29.6 21.4
CRB Index 68.0 66.0 59.9 62.4
Nikkei 81.0 81.4 73.7 63.4
The contrary investor studies crowd behavior in the stock market and aims to profit from particular conditions where investors act on their emotions rather than reason. Such extremes of fear and greed are often seen at major market turning points, providing the astute contrarian with opportunities to both enter and exit the market. The DSI or Daily Sentiment Index is a proprietary sentiment indicator from MBH Commodities in Chicago. The DSI shouldn’t be used as the start and end of a trading plan; Market sentiment is a component to a trade set-up / program. In other words, it is not a direct nor specific call to action but rather a sentiment based indicator that alerts traders to potential action - a timing trigger.
What's New
"Vox Populi" - The Voice of the People

TAG 'fav' House Cat Bahramji, 'Dreamcatcher'

 

Detach from the outcome ~  Relinquish your rigid attachment to a specific result and live in the wisdom of uncertainty. Attachment is based on fear and insecurity, while detachment is based on the unquestioning belief in the power of your true Self. Intend for everything to work out as it should, then let go and allow opportunities and openings to come your way.
 
A TAG favorite ~ La Desiderata ~

Go placidly amidst the noise and haste, and remember what peace there may be in silence. As far as possible without surrender be on good terms with all persons. Speak your truth quietly and clearly; and listen to others, even the dull and the ignorant; they too have their story.

Avoid loud and aggressive persons, they are vexatious to the spirit. If you compare yourself with others, you may become vain or bitter; for always there will be greater and lesser persons than yourself.

Enjoy your achievements as well as your plans. Keep interested in your own career, however humble; it is a real possession in the changing fortunes of time.

Exercise caution in your business affairs; for the world is full of trickery. But let this not blind you to what virtue there is; many persons strive for high ideals; and everywhere life is full of heroism.

Be yourself. Especially, do not feign affection. Neither be cynical about love; for in the face of all aridity and disenchantment it is as perennial as the grass.

Take kindly the counsel of the years, gracefully surrendering the things of youth. Nurture strength of spirit to shield you in sudden misfortune. But do not distress yourself with dark imaginings. Many fears are born of fatigue and loneliness.

Beyond a wholesome discipline, be gentle with yourself. You are a child of the universe, no less than the trees and the stars; you have a right to be here.

And whether or not it is clear to you, no doubt the universe is unfolding as it should. Therefore be at peace with God, whatever you conceive Him to be, and whatever your labours and aspirations, in the noisy confusion of life keep peace with your soul. With all its shams, drudgery, and broken dreams, it is still a beautiful world. Be cheerful.

Strive to be happy.

 

Socionomics - Most economists, historians and sociologists presume that events determine society's mood. But socionomics hypothesizes the OPPOSITE: that social mood determines the character of social events. The events of history - such as investment booms ands busts, political events, macroeconomic trends and even peace and war - are the products of a naturally occurring pattern of social mood fluctuation. Such events, therefore, are not randomly distributed, as is commonly believed, but are in fact probabilistically predictable. Soconomics also posits that the stock market is the best available meter of a society's aggregate mood, that news is irrelevant to social mood, and that financial and economic decision-making are fundamentally different in that financial decisions are motivated by the herding impulse while economic choices are guided by supply and demand...

To survive, we need a temperate client to live within. DEFLATION or INFLATION can kill an economy. Empires do not die by HYPERINFLATION – that is reserved for the fringe. When an empire dies, it historically has ALWAYS been by DEFLATION. How. Real wealth is driven from the ABOVEGROUND economy into the UNDERGROUND economy where it is hoarded and tucked away. This is why we find hoards of Roman coins. This reduces the VELOCITY of money and commerce is reduced. This is ALWAYS AND WITHOUT EXCEPTION how empires die. This is why there was scrip issued in the United States during the Great Depression. The VELOCITY of money came to a halt. The British Empire did not die of HYPERINFLATION. The pound collapsed in value. It did not inflate into oblivion. The British Empire simply rolled over and died. The decline of the sterling silver penny of England was no different a path than the decline and fall of Rome. The United States will follow the same path - Martin Armstrong

“Capitalism was an economic system in which the private sector drove the economic process through saving, capital accumulation, and investment. The government’s role was very limited. The United States has not had that kind of economic system for decades… Almost all the major industries are subsidized in one way or the other by the government and almost half the households receive some kind of government assistance… the economic system is no longer driven by savings and investment. Instead, it is driven by borrowing and consumption. This is not capitalism. Market forces no longer drive the economy. The current system is government- directed, but not planned… deficit spending and fiat money have allowed the government to satisfy all those competing demands for more than a generation.”– Richard Dunca

So it is with monetary debasement, as Keynes understood deeply (so deeply, in fact, that it?s ironic so many of today's crude Keynesians support QE so enthusiastically). In 1921 he said:

By a continuing process of inflation, Governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some …. Those to whom the system brings windfalls …. become “profiteers” who are the object of the hatred … the process of wealth-getting degenerates into a gamble and a lottery .. Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose

Hayek has made the difference between the effects of deflation and inflation crystal-clear: “… but it is not that certain that in the long run deflation is more harmful than inflation. Because moderate inflation is always pleasant as and when it is happening, whereas deflation is direct and painful. There is no need to take precaution against a situation whose unpleasant effects can be felt immediately and sharply; however, precaution is necessary for a measure that is immediately pleasant or helps alleviate problems but that entails a much more substantial damage which can only be felt later. The difference is that in case of inflation, the pleasant surprise comes first and is followed by the reaction later, whereas in case of deflation the first effect on business activity is depressive.” ~~ F.A. Hayek, “Verfassung der Freiheit” (The Constitution of Liberty), seen in (Problems of the established central bank system – free banking as alternative?), Wolf von Laer

 

“By the Law of Periodical Repetition, everything which has happened once must happen again, and again, and again -- and not capriciously, but at regular periods, and each thing in its own period, not another’s, and each obeying its own law ... The same Nature which delights in periodical repetition in the sky is the Nature which orders the affairs of the earth. Let us not underrate the value of that hint." -- Mark Twain