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The Systems View of the World: A Holistic Vision for Our Time

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Ervin Laszlo
Ervin Laszlo

Ervin Laszlo is a renowned philosopher born on May 12, 1932. His research spans across systems theory, philosophy, futurology, and interdisciplinary studies. Laszlo is known for his work on complex systems and his profound insights into the future of the world. more

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“So the next time you peer into the open window of a Web browser, you might ask yourself: where does "the network" end? Does it cease with the virtual worlds, images, and minds of the Internet, or with the silicon-electronic matrix of computing devices, or with the electrical grid that powers the show with energies extracted from waterflow and toxic atom? Perhaps the network extends further—to the Jacquard looms and American war machines that loosened the historical dynamic that eventually stuck a magic toxic tablet in your hands, to the billionfold packet-switching meshwork of human neurons that shape and submit to information space, to the capital flows that animate the quick hands of young Filipinas who wire up semiconductors for dollars a day. As you contemplate these widening networks, they may alter the granularity and elasticity of the self that senses them, as well as changing the resilience and tenderness of the threads binding that self to the mutant edge of matter and history. I suspect there is no end to such links, and that this immanent infinity, with its impossible ethical call, makes up the real World Wide Web.”

“No politician or party favours waste and inefficiency, and every government tries to reduce both--but tax cuts on the promise of ending the gravy train almost never find enough gravy. Of course efficiency matters, waste must be attacked, and of course it matters how both taxes and spending are organized, but despite the highly publicized incidents of misspending that seem to dominate the pages of our mainstream media and disproportionately shape our perceptions, the numbers about waste never add up, and the consequences of tax cuts on public goods and services are always worse than promised.”

“Take a typical three-hundred-million-dollar CMO. It would be divided into three tranches, or slices of a hundred million dollars each. Investors in each tranche received interest payments. But the owners of the first tranche received all principal repayments from all three hundred million dollars of mortgage bonds held in trust. Not until first tranche holders were entirely paid off did second tranche investors receive any prepayments. Not until both first and second tranche investors had been entirely paid off did the holder of a third tranche certificate receive prepayments.”

“Notice the irony: in a world ideologically dominated by monetary conservatism, and ringing with long sermons about the perils of printing money, the effective money supply had been turned over to privateers [private banks] bent on flooding the markets with money of their own making [ex. CDOs, which act as stores of value + means of exchange]. How did this differ, really, from handing the Fed’s printing presses over to the mafia? There is not much difference, is the honest answer.”

“It was during my explanation to my young daughter that I finally realized why I had been drawn to this particular practice of law. Yes, some of my clients were just gaming the system. They were charlatans no better than the banks they were taking on. But some of mu clients were downtrodden and disadvantaged. They were true underdogs in society and I wanted to stand for them and keep them in their homes for as long as I possibly could.”

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“When the Goldman Sachs saleswoman called Mike Burry and told him that her firm would be happy to sell him credit default swaps in $100 million chunks, Burry guessed, rightly, that Goldman wasn’t ultimately on the other side of his bets. Goldman would never be so stupid as to make huge naked bets that millions of insolvent Americans would repay their home loans. He didn’t know who, or why, or how much, but he knew that some giant corporate entity with a triple-A rating was out there selling credit default swaps on subprime mortgage bonds. Only a triple-A-rated corporation could assume such risk, no money down, and no questions asked. Burry was right about this, too, but it would be three years before he knew it. The party on the other side of his bet against subprime mortgage bonds was the triple-A-rated insurance company AIG—American International Group, Inc.”