Blubber

Fat is a much-maligned substance in the twenty-first century world we find ourselves in; exhortations for it to be burnt or exhumed from one’s diet abound from all sides, and indeed entire industries are now founded on dealing with the unwanted stuff in one form or another. However, fat is not, in fact, some demonic hate figure designed specifically to kill all that is good and beautiful about our world, and since it is at least relatively interesting I thought it might be worth investigating a few bits and pieces surrounding it over the course of a post.

All fats are based upon a molecule called glycerol, or propan-1,2,3-triol to give it its technical IUPAC name. Glycerol is a very interesting substance used for a wide range of purposes both in the body and commercially; it can be broken down to form sugar, can be used as a laxative, is an effective antifreeze, a useful solvent, a sweetener, is a key ingredient in the production of dynamite and, of course, can be used to store energy in fatty form. Glycerol is, technically speaking, an alcohol, but unlike most everyday alcohols (such as the ethanol upon which many of our favourite drinks are based) each glycerol molecule contains not one but three alcohol functional groups. In a fat, these alcohol groups act like sticking points, allowing three different long-chain carboxylic acid molecules known as ‘fatty acids’ to attach to each glycerol molecule. For this reason, fats are also known as ‘triglycerides’, and precisely which fat is formed from this structure depends on the structure of these fatty acids.

Fatty acids consisting of shorter chains of carbon atoms have less atoms with which to interact with their surroundings,  and thus the intermolecular forces between the fatty acid chains and other molecules are weaker for shorter-chain acids. This has a number of effects on the properties of the final product, but one of the most obvious concerns its melting point; shorter-chain fatty acids generally result in a product that is liquid at room temperature, and such products are designated as ‘oils’ rather than fats. Thus, not all triglycerides are, technically speaking, fats, and even triglycerides are part of a larger chemical family of fat-like substances known as ‘lipids’ (organic chemistry can be confusing). As a general rule, plants tend to produce oils and animals produce fats (presumably for reasons of storage), which is why you get stuff like duck fat and olive oil rather than the reverse.

The structure of the fatty acids is also important in an important dietary consideration surrounding fats; whether they are saturated or unsaturated. In chemistry, carbon atoms are bonded to one another by covalent bonds, consisting of a shared pair of electrons (each atom providing one electron of the pair) that keeps the two atoms bonded together. Most of the time, only one pair of electrons forms the bond (known as a single bond), but sometimes the relevant carbon atoms have a surfeit of electrons and will create another shared pair, forming a double covalent bond. The nature of double bonds means that the carbon atoms involved can accept more hydrogen atoms (or other electrophiles such as bromine; bromine water is a good test for double bonds) whereas a molecule made up entirely of singly-bonded atoms couldn’t accept any more and would be said to be saturated with hydrogen. Thus, molecules (including fats and fatty acids) with only single bonds are described as saturated, whilst those with double bonds are known as unsaturated*. A mixture of the food industry and chemical fraternity has developed a whole host of more specific descriptive terms that give you more detail as to the chemical structure of your fats (stuff like monounsaturated and such), and has also subdivided unsaturated fats into two more categories, cis- and trans-fats (the names refer to the molecules’ arrangement in space about the double bond, not their gender orientation).

With all these different labels, it’s no wonder people have so much trouble remembering, much less identifying, which fats they are ‘supposed to avoid’. Saturated and trans-unsaturated fats (which occur rarely in nature due to enzyme structure and are usually manufactured artificially) are apparently bad, mono-unsaturated (cis-) fats are good, and poly-unsaturated (cis-) fats good in moderation.

The extent to which these fats are ‘good’ and ‘healthy’ does not refer to the effect they will have on your waistline; all fats you eat are first broken down by your digestive process, and the resulting calories produced are then either used to power your body or turned into other sorts of fat that take up belly space. This process is the same for all types of energy-containing food and I shall come onto a few details about it in a paragraph or two. No, the relative health risk of these different fat types refers instead to the production of another type of lipid; cholesterol, which has such a complex, confusing structure and synthesis that I’m not even going to try to describe it. Cholesterol is a substance produced intentionally by the body and is very useful; it is used in the production of all sorts of hormones and vitamins, is a key ingredient of bile and is used in helping cells rebuild themselves. It is transported through the body by two different substances known as LDL (low-density lipoprotein) and HDL (take a wild guess) that carry it via the bloodstream; and this is where problems arise. The precise mechanism behind it is not known, but an increased consumption of trans-fats and other ‘bad’ triglycerides leads to an increase in the amount of cholesterol and LDL in the bloodstream. If this stuff is allowed to build up, cholesterol can start to ‘stick’ to the sides of one’s blood vessels, slowly reducing the effective size of the blood vessel until it is almost completely shut. This greatly reduces the flow of blood through these vessels, and this can have particularly dramatic consequences if the large, important blood vessels close to or supplying the heart are affected, leading to coronary heart disease and a greatly increased risk of heart attacks. HDL, for some reason, doesn’t apparently contribute to this affect, leading HDL to be (misleadingly, since it’s not actually cholesterol) dubbed ‘good cholesterol’ and LDL as ‘bad cholesterol’.

Clearly, then, having too much of these ‘bad fats’ can have some pretty serious consequences, but public realisation of this has lead all fat to be considered as a disgusting thing to be shunned. Frankly, this is just plain old not true, and it is far easier to live a healthy life with a bit of meat** on the bones than to go down the super-skinny angle. Fat is a vital body tissue, required for insulation, vitamin transport, to store energy, to prevent the disease and provides many essential nutrients; omega-3, the ‘essential oil’ (meaning it is not produced by the body) found in fish that is thought  to play a role in brain development and other bodily functions, is nothing more than an unusual fatty acid.

If you want further evidence as to the importance fat plays in one’s body, I refer you to a condition known as lipodystrophy, in which one’s body cannot produce or store fat properly. In some cases this is localised and relatively harmless, but in incredibly rare cases it manifests itself as a hereditary condition that causes abnormal bone and muscle growth, facial disfigurement and requires an incredibly strict diet (in direct contravention of the massive appetite the condition gives you) in order to control one’s levels of cholesterol and carbohydrate intake. In many cases, sufferers of this horrible condition will not live past twenty, if they even get that far.

*Vegetable oils tend to be more frequently unsaturated than fats, as this is another factor that reduces their melting point and makes them liquid. A key process involved in producing margarine involves taking these vegetable oils and adding hydrogen to these double bonds, a process known as hydrogenation, in order to raise their melting point and make the margarine solid and spreadable. Chemistry!

**Although, as anyone who likes their bacon skinny will tell you, fat is most certainly not meat. In fact, it’s not even alive.

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Poverty Changes

£14,000 is quite a large amount of money. Enough for 70,000 Freddos, a decade’s worth of holidays, two new Nissan Pixo’s, several thousand potatoes or a gold standard racing pigeon. However, if you’re trying to live off just that amount in modern Britain, it quickly seems quite a lot smaller. Half of that could easily disappear on rent, whilst the average British family will spend a further £4,000 on food (significantly greater than the European average, for one reason or another). Then we must factor in tax, work-related expenses, various repair bills, a TV license, utility & heating bills, petrol money and other transport expenses, and it quickly becomes apparent that trying to live on this amount will require some careful budgeting. Still, not to worry too much though; it’s certainly possible to keep the body and soul of a medium sized family together on £14k a year, if not absolutely comfortably, and in any case 70% of British families have an annual income in excess of this amount. It might not be a vast amount to live on, but it should be about enough.

However, there’s a reason I quoted £14,000 specifically in the figure above, because I recently saw another statistic saying that if one’s income is above 14 grand a year, you are one of the top 4% richest people on planet Earth. Or, to put it another way, if you were on that income, and were then to select somebody totally at random from our species, then 24 times out of 25 you would be richer than them.

Now, this slightly shocking fact, as well as being a timely reminder as to the prevalence of poverty amongst fellow members of our species, to me raises an interesting question; if £14,000 is only just about enough to let one’s life operate properly in modern Britain, how on earth does the vast majority of the world manage to survive at all on significantly less than this? More than 70% of the Chinese population (in 2008, admittedly; the rate of Chinese poverty is decreasing at a staggering rate thanks to its booming economy) live on less than $5 a day, and 35 years ago more than 80% were considered to be in absolute poverty. How does this work? How does most of the rest of the world physically survive?

The obvious starting point is the one stating that much of it barely does. Despite the last few decades of massive improvement in the living standards and poverty levels in the world in general,  the World Bank estimates that some 20% of the world’s populace is living below the absolute poverty line of surviving on less than $1.50 per person per day, or £365 a year (down from around 45% in the early 1980s- Bob Geldof’s message has packed a powerful punch). This is the generally accepted marker for being less than what a person can physically keep body and soul together on, and having such a huge proportion of people living below this marker tends to drag down the global average. Poverty is something that the last quarter of the century has seen a definitive effort on the part of humanity to reduce, but it’s still a truly vast issue across the globe.

However, the main contributing factor to me behind how a seemingly meagre amount of money in the first world would be considered bountiful wealth in the third is simply down to how economics works. We in the west are currently enjoying the fruits of two centuries of free-market capitalism, which has fundamentally changed the way our civilisation functions. When we as a race first came up with the concept of civilisation, of pooling and exchanging skills and resources for the betterment of the collective, this was largely confined to the local community, or at least to the small-scale. Farmers provided for those living in the surrounding twenty miles or so, as did brewers, hunters, and all other such ‘small businessmen’, as they would be called today. The concept of a country provided security from invasion and legal support on a larger scale, but that was about it; any international trade was generally conducted between kings and noblemen, and was very much small scale.

However, since the days of the British Empire and the Industrial Revolution, business has got steadily bigger and bigger. It started out with international trade between the colonies, and the rich untapped resources the European imperial powers found there, moved on to the industrial scale manufacture of goods, and then the high-intensity sale of consumer products to the general population. Now we have vast multinational companies organising long, exhaustive chains of supply, manufacture and retail, and our society has become firmly rooted in this intense selling international economy. Without constantly selling vast quantities of stuff to one another, the western world as we know it simply would not exist.

This process causes many side effects, but one is of particular interest; everything becomes more expensive. To summarise very simply, the basic principle of capitalism involves workers putting in work and skill to increase the value of something; that something then gets sold, and the worker then gets some of the difference between cost of materials and cost of sale as a reward for their effort. For this to work, then one’s reward for putting in your effort must be enough to purchase the stuff needed to keep you alive; capitalism rests on the principle of our bodies being X% efficient at turning the food we eat into the energy we can use to work. If business is successful, then the workers of a company (here the term ‘workers’ covers everyone from factory floor to management) will gain money in the long term, enabling them to spend more money. This means that the market increases in size, and people can either sell more goods or start selling them for a higher price, so goods become worth more, so the people making those goods start getting more money, and so on.

The net result of this is that in an ‘expensive’ economy, everyone has a relatively high income and high expenditure, because all goods, taxes, land, utilities etc. cost quite a lot; but, for all practical purposes, this results in a remarkably similar situation to a ‘cheap’ economy, where the full force of western capitalism hasn’t quite taken hold yet- for, whilst the people residing there have less money, the stuff that is there costs less having not been through the corporation wringer. So, why would we find it tricky to live on less money than the top 4% of the world’s population? Blame the Industrial Revolution.

Desert Bus

Charity is, as has been well documented, the most competitive industry on the planet. The trouble is that there are many, many things wrong with this world, and lots of people who believe that all should get the same thing- but nearly all of them are going after the same target demographic (the rich middle classes who can afford to give to them), and there are simply so many of them competing for people’s time, energy and, most importantly, financial support that many get drowned under the weight of competition. This has lead to many charity events in recent years attempting to break out from the mainstream collection ideas, focusing on charitable enterprise or other such concepts in order to be different and identifiable. However, when preparing for one such event that is happening in the very near future (hence why I’m publishing this post a day early) I saw an opportunity to combine the topic of charity with blogging and an old favourite fall-back topic, gaming- but to start with, I’m going to talk about magic, so sit in for a story folks.

In 1975 a pair of American magicians delivered a show in Minnesota that would quickly become the first of many. With another co-host, the duo built their reputation with a regular show that lasted until 1981, before moving to New York to start their own off Broadway shows. By 1985 these were garnering them some top reviews, so as the 90s approached they turned their act to Broadway proper. During the 1990s they were appearing regularly on chat shows, doing US national tours and making TV cameos, firmly establishing themselves as possibly the most famous magicians on earth at that time (and possibly the present day too). Their names were (and are) Penn & Teller.

By 1995 their career was reaching a zenith; famous both nationally and around the world, they were the closest the magical world had to global superstars. And with stardom came all the trappings of fame, including incessant requests from various publishers and agents asking to be allowed to use their name to plug something, and presumably in late 1994 one such offer from Absolute Entertainment was accepted; to allow Penn & Teller to be the subject material for a videogame.

The game in question was to be called Penn & Teller’s Smoke And Mirrors; the console, the Sega-CD (an add-on for the Sega Mega Drive that was at the time fighting a furious console war with Nintendo’s Super NES). The game itself consisted of a series of mini-games, in a similar way to how a magic show is comprised of individual tricks- or at least, that was the idea. Each game was a trick you had to master, a little bit of slight-of-hand/controller that you had to learn before inviting your friends over and thrashing them since you knew how the trick worked, as a form of payback against those friends “who come over to your house, eat your food, drink your soda, play your games and always beat you” (Penn’s words, not mine). Many have since voiced the opinion that videogaming was a rather odd choice of platform for this idea, but whether this would have impacted sales was never discovered, as Absolute Entertainment went bust after (conveniently) they had completed the game’s development, but before they got a chance to ship it and pay Penn & Teller back the licensing money they were owed. Under the terms of the contract, this rendered all deals regarding use of Penn & Teller’s likenesses and intellectual property null and void, meaning Absolute Entertainment’s owners (Skyworks Interactive Inc.) couldn’t sell the game, and all the copies they produced presumably sat in a corner gathering dust somewhere. However, before the studio went under another player entered our story, by the name of Janet Reno.

At the time, Janet Reno was Attorney General of the United States under Bill Clinton’s leadership, and at the time in question she chose a particularly opportune moment to join the chorus of voices against the violence in videogames. Reno’s argument partially centred on the idea that these games were unrealistic, and should try to depict life as it really was rather than clouding the mind’s of the nation’s children (or something), so as a rather sly joke Penn & Teller slipped one more minigame in, the only one that wasn’t a magic trick. A little minigame going by the name of Desert Bus.

Desert Bus was described as being designed to be an example of ‘stupefyingly realistic gameplay’, and in it you played as a bus driver. Your job was to drive between two US cities, Tucson, Arizona, and Las Vegas, Nevada, at no more than 45 miles per hour (presumably the bus was electronically limited), in real-time, right across the Great American desert. The scenery was fairly unchanging (the odd tree or bus stop goes by), there is no traffic coming the other way, the graphics are about as good as could be expected from that generation console, there are no people to pick up, and the journey takes 8 hours to complete in each direction. After 5 hours, a bug hits the windscreen. This is considered a highlight.

However, there were three things that turned this from a rather interesting statement by the game developers to a simultaneously evil and absolutely hilarious game, depending on whether you were playing or just hearing about it. Firstly, there is no ability to pause; pressing the pause button merely activates the horn, so you’re in for the long haul. Secondly, the bus lists to the right, meaning one cannot simply tape down the accelerator and leave it for eight hours- it requires one’s constant attention (and repeated turning left) to avoid crashing. If you do crash, and stay still for 15 seconds, a tow truck comes to take you back to Tucson- again, in real time, and at 45 miles an hour. Thirdly, if you reach Vegas, you get one point- and 15 seconds to decide if you want to try for another one by heading back to Tucson. The game has a limit of 99 points, never achieved without the use of an emulator. This is the world’s greatest endurance test- Penn & Teller even had plans, had the game been released, to set up a competition for who could get the most points, the prize being a luxury trip in ‘the real Desert Bus’, a few nights in a luxury Vegas hotel and tickets to their show, but of course the game never exactly received widespread coverage.

That is, however, not until 2007, when two more players enter our story- Penny Arcade and LoadingReadyRun. Penny Arcade is probably the most famous webcomic in the world, written by a couple of games nerds for games nerds (I should probably say at this point that I’ve never actually read it, but ho hum), and very much acting as a voice for the gaming community. It’s founders, Jerry Holkins and Mike Krahulik, have become successful enough to start their own gaming convention (PAX), and in 2003 they embarked on another project- Child’s Play. Designed with the view in mind of a gaming charity, a chance for gaming culture to give something back to society and to improve its negative image as being violent and uncouth, it aims to deliver toys and videogames to sick children in hospitals worldwide, in order to make their lives a little more bearable. Some have said that it’s message is perhaps not as righteous as that of, say, Oxfam, but these people are kind of missing the point of charity and it is nonetheless charmingly sweet in concept. Penny Arcade’s prominence among the gaming community is such that many key industry figures have got behind it and the charity has so far raised over $12 million, nearly one million of which has come thanks to the work of a group of Canadians behind an 8-year old internet sketch comedy series called LoadingReadyRun.

You see, in 2007 the guys behind LoadingReadyRun decided that they would try to use their small but devoted hardcore fan base to raise some cash for such a good cause, and so decided to organise a charity gaming marathon in aid of Child’s Play. Casting around for a suitable game to play, they decided that ‘the most boring game in the world’ would form a good backdrop whilst they danced, pissed around and generally humiliated themselves on camera to get donations, and so they plumped for Desert Bus. As they slotted a copy of the game (don’t ask me where they got it from) into a borrowed Sega CD, they hoped to try and raise $5,000 dollars, the plan being that their strategy of ‘the more we get the longer we play’ would last them about a weekend. They made four times their target, and the following year did the same thing again and hit $70,000, forcing them to play for nearly 4 days. By the next year their comedy had reached a wider audience after being picked up and hosted by The Escapist online ‘magazine’, and they broke $100,000 for the first time; last year they made $383,125.10, and hope to bring their sum total to over a million this year. Desert Bus For Hope 6 starts tomorrow, at 5am GMT (or 9pm PST), it’s for a great cause, and it should be entertaining to watch the kind of challenges they get up to- they are professional sketch comedians after all. The website’s here, and the list of people ringing in is here (spoiler- the list includes Notch), and a far more entertaining history of the game is here. If you’ve got the time free, give them a watch. It’s for the children.

Big Pharma

The pharmaceutical industry is (some might say amazingly) the second largest on the planet, worth over 600 billion dollars in sales every year and acting as the force behind the cutting edge of science that continues to push the science of medicine onwards as a field- and while we may never develop a cure for everything you can be damn sure that the modern medical world will have given it a good shot. In fact the pharmaceutical industry is in quite an unusual position in this regard, forming the only part of the medicinal public service, and indeed any major public service, that is privatised the world over.

The reason for this is quite simply one of practicality; the sheer amount of startup capital required to develop even one new drug, let alone form a public service of this R&D, would feature in the hundreds of millions of dollars, something that no government would be willing to set aside for a small immediate gain. All modern companies in the ‘big pharma’ demographic were formed many decades ago on the basis of a surprise cheap discovery or suchlike, and are now so big that they are the only people capable of fronting such a big initial investment. There are a few organisations (the National Institute of Health, the Royal Society, universities) who conduct such research away from the private sectors, but they are small in number and are also very old institutions.

Many people, in a slightly different field, have voiced the opinion that people whose primary concern is profit are those we should least be putting in charge of our healthcare and wellbeing (although I’m not about to get into that argument now), and a similar argument has been raised concerning private pharmaceutical companies. However, that is not to say that a profit driven approach is necessarily a bad thing for medicine, for without it many of the ‘minor’ drugs that have greatly improved the overall healthcare environment would not exist. I, for example, suffer from irritable bowel syndrome, a far from life threatening but nonetheless annoying and inconvenient condition that has been greatly helped by a drug called mebeverine hydrochloride. If all medicine focused on the greater good of ‘solving’ life-threatening illnesses, a potentially futile task anyway, this drug would never have been developed and I would be even more hateful to my fragile digestive system. In the western world, motivated-by-profit makes a lot of sense when trying to make life just that bit more comfortable. Oh, and they also make the drugs that, y’know, save your life every time you’re in hospital.

Now, normally at this point in any ‘balanced argument/opinion piece’ thing on this blog, I try to come up with another point to try and keep each side of the argument at an about equal 500 words. However, this time I’m going to break that rule, and jump straight into the reverse argument straight away. Why? Because I can genuinely think of no more good stuff to say about big pharma.

If I may just digress a little; in the UK & USA (I think, anyway) a patent for a drug or medicine lasts for 10 years, on the basis that these little capsules can be very valuable things and it wouldn’t do to let people hang onto the sole rights to make them for ages. This means that just about every really vital lifesaving drug in medicinal use today, given the time it takes for an experimental treatment to become commonplace, now exists outside its patent and is now manufactured by either the lowest bidder or, in a surprisingly high number of cases, the health service itself (the UK, for instance, is currently trying to become self-sufficient in morphine poppies to prevent it from having to import from Afghanistan or whatever), so these costs are kept relatively low by market forces. This therefore means that during their 10-year grace period, drugs companies will do absolutely everything they can to extort cash out of their product; when the antihistamine drug loratadine (another drug I use relatively regularly, it being used to combat colds) was passing through the last two years of its patent, its market price was quadrupled by the company making it; they had been trying to get the market hooked onto using it before jacking up the prices in order to wring out as much cash as possible. This behaviour is not untypical for a huge number of drugs, many of which deal with serious illness rather than being semi-irrelevant cures for the snuffles.

So far, so much normal corporate behaviour. Reaching this point, we must now turn to consider some practices of the big pharma industry that would make Rupert Murdoch think twice. Drugs companies, for example, have a reputation for setting up price fixing networks, many of which have been worth several hundred million dollars. One, featuring what were technically food supplements businesses, subsidiaries of the pharmaceutical industry, later set the world record for the largest fines levied in criminal history- this a record that persists despite the fact that the cost of producing the actual drugs themselves (at least physically) rarely exceeds a couple of pence per capsule, hundreds of times less than their asking price.

“Oh, but they need to make heavy profits because of the cost of R&D to make all their new drugs”. Good point, well made and entirely true, and it would also be valid if the numbers behind it didn’t stack up. In the USA, the National Institute of Health last year had a total budget of $23 billion, whilst all the drug companies in the US collectively spent $32 billion on R&D. This might seem at first glance like the private sector has won this particular moral battle; but remember that the American drug industry generated $289 billion in 2006, and accounting for inflation (and the fact that pharmaceutical profits tend to stay high despite the current economic situation affecting other industries) we can approximate that only around 10% of company turnover is, on average, spent on R&D. Even accounting for manufacturing costs, salaries and such, the vast majority of that turnover goes into profit, making the pharmaceutical industry the most profitable on the planet.

I know that health is an industry, I know money must be made, I know it’s all necessary for innovation. I also know that I promised not to go into my Views here. But a drug is not like an iPhone, or a pair of designer jeans; it’s the health of millions at stake, the lives of billions, and the quality of life of the whole world. It’s not something to be played around with and treated like some generic commodity with no value beyond a number. Profits might need to be made, but nobody said there had to be 12 figures of them.

What we know and what we understand are two very different things…

If the whole Y2K debacle over a decade ago taught us anything, it was that the vast majority of the population did not understand the little plastic boxes known as computers that were rapidly filling up their homes. Nothing especially wrong or unusual about this- there’s a lot of things that only a few nerds understand properly, an awful lot of other stuff in our life to understand, and in any case the personal computer had only just started to become commonplace. However, over 12 and a half years later, the general understanding of a lot of us does not appear to have increased to any significant degree, and we still remain largely ignorant of these little feats of electronic witchcraft. Oh sure, we can work and operate them (most of us anyway), and we know roughly what they do, but as to exactly how they operate, precisely how they carry out their tasks? Sorry, not a clue.

This is largely understandable, particularly given the value of ‘understand’ that is applicable in computer-based situations. Computers are a rare example of a complex system that an expert is genuinely capable of understanding, in minute detail, every single aspect of the system’s working, both what it does, why it is there, and why it is (or, in some cases, shouldn’t be) constructed to that particular specification. To understand a computer in its entirety, therefore, is an equally complex job, and this is one very good reason why computer nerds tend to be a quite solitary bunch, with quite few links to the rest of us and, indeed, the outside world at large.

One person who does not understand computers very well is me, despite the fact that I have been using them, in one form or another, for as long as I can comfortably remember. Over this summer, however, I had quite a lot of free time on my hands, and part of that time was spent finally relenting to the badgering of a friend and having a go with Linux (Ubuntu if you really want to know) for the first time. Since I like to do my background research before getting stuck into any project, this necessitated quite some research into the hows and whys of its installation, along with which came quite a lot of info as to the hows and practicalities of my computer generally. I thought, then, that I might spend the next couple of posts or so detailing some of what I learned, building up a picture of a computer’s functioning from the ground up, and starting with a bit of a history lesson…

‘Computer’ was originally a job title, the job itself being akin to accountancy without the imagination. A computer was a number-cruncher, a supposedly infallible data processing machine employed to perform a range of jobs ranging from astronomical prediction to calculating interest. The job was a fairly good one, anyone clever enough to land it probably doing well by the standards of his age, but the output wasn’t. The human brain is not built for infallibility and, not infrequently, would make mistakes. Most of these undoubtedly went unnoticed or at least rarely caused significant harm, but the system was nonetheless inefficient. Abacuses, log tables and slide rules all aided arithmetic manipulation to a great degree in their respective fields, but true infallibility was unachievable whilst still reliant on the human mind.

Enter Blaise Pascal, 17th century mathematician and pioneer of probability theory (among other things), who invented the mechanical calculator aged just 19, in 1642. His original design wasn’t much more than a counting machine, a sequence of cogs and wheels so constructed as to able to count and convert between units, tens, hundreds and so on (ie a turn of 4 spaces on the ‘units’ cog whilst a seven was already counted would bring up eleven), as well as being able to work with currency denominations and distances as well. However, it could also subtract, multiply and divide (with some difficulty), and moreover proved an important point- that a mechanical machine could cut out the human error factor and reduce any inaccuracy to one of simply entering the wrong number.

Pascal’s machine was both expensive and complicated, meaning only twenty were ever made, but his was the only working mechanical calculator of the 17th century. Several, of a range of designs, were built during the 18th century as show pieces, but by the 19th the release of Thomas de Colmar’s Arithmometer, after 30 years of development, signified the birth of an industry. It wasn’t a large one, since the machines were still expensive and only of limited use, but de Colmar’s machine was the simplest and most reliable model yet. Around 3,000 mechanical calculators, of various designs and manufacturers, were sold by 1890, but by then the field had been given an unexpected shuffling.

Just two years after de Colmar had first patented his pre-development Arithmometer, an Englishmen by the name of Charles Babbage showed an interesting-looking pile of brass to a few friends and associates- a small assembly of cogs and wheels that he said was merely a precursor to the design of a far larger machine: his difference engine. The mathematical workings of his design were based on Newton polynomials, a fiddly bit of maths that I won’t even pretend to understand, but that could be used to closely approximate logarithmic and trigonometric functions. However, what made the difference engine special was that the original setup of the device, the positions of the various columns and so forth, determined what function the machine performed. This was more than just a simple device for adding up, this was beginning to look like a programmable computer.

Babbage’s machine was not the all-conquering revolutionary design the hype about it might have you believe. Babbage was commissioned to build one by the British government for military purposes, but since Babbage was often brash, once claiming that he could not fathom the idiocy of the mind that would think up a question an MP had just asked him, and prized academia above fiscal matters & practicality, the idea fell through. After investing £17,000 in his machine before realising that he had switched to working on a new and improved design known as the analytical engine, they pulled the plug and the machine never got made. Neither did the analytical engine, which is a crying shame; this was the first true computer design, with two separate inputs for both data and the required program, which could be a lot more complicated than just adding or subtracting, and an integrated memory system. It could even print results on one of three printers, in what could be considered the first human interfacing system (akin to a modern-day monitor), and had ‘control flow systems’ incorporated to ensure the performing of programs occurred in the correct order. We may never know, since it has never been built, whether Babbage’s analytical engine would have worked, but a later model of his difference engine was built for the London Science Museum in 1991, yielding accurate results to 31 decimal places.

…and I appear to have run on a bit further than intended. No matter- my next post will continue this journey down the history of the computer, and we’ll see if I can get onto any actual explanation of how the things work.

Why we made the bid in the first place

…and now we arrive at the slack time, that couple of weeks between the end of the Olympics and start of the Paralympics where everyone gets a chance to relax, wind down a little, and take time away from being as resolutely enthusiastic and patriotic as we have been required to for the last two weeks (or a lot longer if you factor in the Royal Wedding and Queen’s Jubilee). However, it’s also an undoubtedly good time to reflect on what have been, whatever your viewpoint, a very eventful last couple of weeks.

To my mind, and certainly to those of the Olympic organisers, these games have been a success. Whether you feel that it was all a colossal waste of money (although how anyone can think that of an event featuring the Queen parachuting out of a helicopter alongside James Bond is somewhat puzzling to me), or the single most amazing thing to grace the earth this side of its existence (in which case you could probably do with a nice lie down at the very least), its motto has been to ‘Inspire a Generation’. From a purely numerical perspective, it appears to have worked- sports clubs of all sorts up and down the land, even in niche areas such as handball, have been inundated with requests from enthusiastic youngsters after membership, and every other sentence among BBC pundits at the moment appears to include the phrase ‘the next Mo Farah/Usain Bolt/Ben Ainslie/Chris Hoy’ (delete as applicable).

However, I think that in this respect they are missing the point slightly, but to explain what I mean I’m going to have to go on a bit of a tangent. Trust me, it’ll make sense by the end.

So…, what is the point of sport? This has always been a tricky one to answer, the kind of question posed by the kind of awkward people who are likely to soon find an answer flying swiftly towards them in foot-shaped form. In fact, I have yet to hear a convincing argument as to exactly why we watch sport, apart from that it is for some unexplained reason compelling to do so. But even if we stick to the act of participation, why do we bother?

Academics and non-sportspeople have always had a whole host of reasons why not, ever since the days that they were the skinny, speccy one last to be picked in the dreaded playground football lineup (I’ve been there- not fun). Humans are naturally lazy (an evolutionary side-effect of using our brains rather than brawn to get ahead), and the idea of running around a wet, muddy field expending a lot of precious energy for no immediately obvious reason is obviously unappealing. Then we consider that the gain of sport, the extent to which it contributes to making the world a better place is, in material terms at least, apparently quite small. Humankind’s sporting endeavours use up a lot of material for equipment, burn a lot of precious calories that could be used elsewhere around the world to help the starving, and often demand truly vast expenses in terms of facilities and, in the professional world, salaries. Even this economic consideration does not take into account the loss in income presented by the using up of acres upon acres of valuable land for sports facilities and pitches. Sport also increases the danger factor of our lives, with a heavy risk of injury ranging from minor knocks to severe, debilitating disabilities (such as spinal injury), all of which only adds to the strain on health services worldwide and further increases the ‘cost’ of sport to the world.

So why do we bother with it at all? Why is it that the question governments are asking themselves is “why aren’t enough kids playing sport?” rather than ‘why are so many of them doing so’? Simple reason is that, from every analytical perspective, the benefits of sport far outweigh the costs. 10% of the NHS’ entire budget is spent on dealing with diabetes, just one of a host of health problems associated with obesity, and if just half of these cases were to disappear thanks to a healthier lifestyle it would free up around an extra £5 billion- by 2035, diabetes could be costing the country around £17 billion unless something changes. Then there are the physical benefits of sport, the stuff it enables us to do. In the modern world being able to run a kilometre and a half in four minutes might seem like a pointless skill, but when you’re being chased down the street by a potential mugger (bad example I know, but it’ll do) then you’d definitely rather be a fit, athletic runner than slow, lumbering and overweight. Sport is also one of the largest commercial industries on earth, if not on a professional level then at least in terms of manufacture and sale of equipment and such, worth billions worldwide each year and providing many thousands or even millions of jobs (although some of the manufacturing does admittedly have a dubious human rights record). The health benefits of sport go far beyond the physical & economic too, as both the endorphins released during physical activity and the benefits of a healthy lifestyle are known to increase happiness & general well-being, surely the ultimate goals of all our lives. But perhaps most valuable of all is the social side of sport. Whilst some sports (or, more specifically, some of the &%^$£*)@s involved) have a reputation for being exclusive and for demoralising hopeful youngsters, sport when done properly is a powerful force for social interaction & making friends, as well as being a great social equaliser. As old Etonian, heir his father’s baronet and Olympic 110m hurdles finalist Lawrence Clarke recently pointed out in an interview ‘On the track it doesn’t matter how rich your family is or where you’ve come from or where you went to school; all that matters is how fast you can get to the finish line’ (I’m paraphrasing, but that was the general gist). Over the years, sport has allowed mixing between people of a myriad of different genders and nationalities, allowing messages of goodwill to spread between them and changing the world’s social and political landscape immeasurably. This Olympics was, for example, the first in which Palestinian and Saudi Arabian women competed, potentially paving the way for increased gender equality in these two countries.

Clearly, when we all get behind it, sport has the power to be an immense tool for good. But notice that nowhere in that argument was any mention made of being the physical best, being on top of the world, breaking world records because, try as one might, the value of such achievement is solely that of entertainment and the odd moment of inspiration. Valuable though those two things surely are, they cannot begin to compare with the incalculable benefits of a population, a country, a world united by sport for the good of us all. So, in many respects, the success of an Olympic games should not be judged by whether it inspires a new superstar, but rather by how it encourages the guy who turns up with him at that first training session, who might never be that good a competitor… but who carries on turning up anyway. The aim of top-flight sport should not be to inspire the best. It should simply be to inspire the average.

The Great Madiba*

I have previously mentioned on this blog that I have a bit of a thing for Nelson Mandela. I try not too bring this up too much, but when you happen to think that someone was the greatest human who has ever lived then it can be a touch tricky. I also promised myself that I would not do another 1 man adulation-fest for a while either, but today happens to be his ninety fourth (yes, 94th) birthday, so I felt that one might be appropriate.

Nelson Mandela was born in 1918 as the son of a Xhosa tribeschief, and was originally named Rolihlahla, or ‘troublemaker’ (the name Nelson was given to him when he attended school). South Africa at the time was still not far out of the Boer war, which has been a difficult one for historians to take sides in- the British, lead by Lord Kitchener of the ‘Your Country Needs You’ WWI posters, took the opportunity to invent the concentration camp whilst the Dutch/German descended Boers who both preached and practiced brutal racial segregation. It wasn’t until 1931 that South Africa was awarded any degree of independence from Britain, and not until 1961 that it became officially independent.

However, a far more significant political event occurred in 1948, with the coming to power of the National Party of South Africa, which was dominated by white Afrikaners. They were the first government to come up with apartheid, a legal and political system that enforced the separation of white & black South Africans in order to maintain the (minority group) whites’ political power. Its basic tenet was the dividing of all people into one of four groups. In descending order of rank, they were White, Coloured, Indian (a large racial group in South Africa- in fact a young Mahatma Gandhi spent a lot of time in the country before Mandela was born and pioneered his methods of peaceful protest there) and Black. All had to carry identification cards and all bar whites were effectively forbidden to vote. The grand plan was to try and send all ‘natives’ bar a few workers to one of ten ‘homelands’ to leave the rest of the country for white South Africans. There were a huge number of laws, many of which bore a striking resemblance to those used by Hitler to segregate Jews, to enforce separation (such as the banning of mixed marriages), and even a system to be up- (or even down-) graded in rank.

Mandela was 30 when apartheid was introduced, and began to take an active role in politics. He joined the black-dominated African National Congress (ANC) and began to oppose the apartheid system. He originally stuck to Gandhi’s methods of nonviolent protest and was arrested several times, but he became frustrated as protests against the government were brutally opposed and he began to turn to more aggressive measures. In the early sixties he co-founded and lead the ANC’s militant (some would say terrorist) wing, coordinating attacks on symbols of the Apartheid regime. This mainly took the form of sabotage attacks against government offices & such (he tried to avoid targeting or hurting people), and Mandela later admitted that his party did violate human rights on a number of occasions. Mandela was even forbidden to enter the United States without permission until 2008, because as an ANC member he had been classified a terrorist.

Eventually the law caught up with him, and Mandela was arrested in 1962. Initially jailed for 5 years for inciting workers to strike, he was later found guilty of multiple counts of sabotage and sentenced to life imprisonment (only narrowly escaping the death penalty, and once turning up to court in full Xhosa ceremonial dress). He was transported to the imfamously tough Robben Island prison and spent the next 18 years, between the ages of 45 and 58, working in a lime quarry. As a black, and a notorious political prisoner, Mandela was granted few, if any, privileges, and his cell was roughly the same size as a toilet cubicle. However, whilst inside, his fame grew- his image of a man fighting the oppressive system spread around the world and gained the apartheid system notoriety and hatred. In fact, the South African intelligence services even tried to get him to escape so they could shoot him and remove him from his iconic status. There were numerous pleas and campaigns to release him, and by the 1980s things had come to a head- South African teams were ostracised in virtually every sport (including rugby, a huge part of the Afrikaner lifestyle), and the South African resort of Sun City had become a total pariah for almost every western rock act to visit, all amidst a furious barrage of protests.

After Robben Island, Mandela spent a further 9 years in mainland prisons during which time he refined his political philosophy. He had also learned to speak Afrikaans and held many talks with key government figures who were overblown by both his physical presence (he had been a keen boxer in his youth) and his powerful, engaging and charming force of personality. In 1989, things took a whole new turn with the coming to power of FW de Klerk, who I rate as the South African equivalent of Mikhael Gorbachev. Recognising that the tides of power were against his apartheid system, he began to grant the opposition concessions, unbanning the ANC and, in 1990, releasing Mandela after nearly three decades in prison (Mandela holds the world record for the longest imprisonment of a future president). Then followed four long, strained years of negotiations of how to best redress the system, broken by a famous visit to the Barcelona Olympics and a joint awarding, in 1993, of the Nobel Peace prize to both Mandela and de Klerk, before the ANC got what it had spent all its years campaigning for- the right for black citizens to vote.

Unsurprisingly Mandela (by now aged 75) won a landslide in the elections of 1994 and quickly took apart the apartheid regime. However, many white South Africans lived in fear of what was to come- the prospect of ‘the terrorist’ Mandela now having free reign to persecute them as much as he liked was quite terrifying one, and one that had been repeated multiple times in other local African nations (perhaps the best example is Zimbabwe, where Robert Mugabe went from the first black leader of a new nation to an aggressive dictator who oppressed his people and used the race card as justification). Added to that, Mandela faced the huge political challenges of a country racked by crime, unemployment and numerous issues ranging from healthcare to education.

However, Mandela recognised that the white population were the best educated and controlled most of the government, police force and business of his country, so had to be placated. He even went so far as to interrupt a meeting of the national sports council to persuade them to revoke a decision to drop the name and symbol of the Springboks (South Africa’s national rugby side, and a huge symbol of the apartheid regime) to try and keep them happy. His perseverance paid off- the white population responded to his lack of prejudice by turning a boom in international trade caused by apartheid’s end into a quite sizeable economic recovery. Even Springboks became unifying force for his country, being sent off to coaching clinics in black townships and being inspired to such an extent by Mandela and his request for South Africans of all creeds to get behind the team that they overcame both their underdogs tag and the mighty New Zealand (and more specifically their 19 stone winger who ran 100m in under 11 seconds, Jonah Lomu) to win their home World Cup in 1995, igniting celebrations across the country and presenting South Africa as the Rainbow Nation Mandela had always wanted it to be. Despite his age, declining health he would only ever sleep for a few hours every night (claiming he rested long enough in prison). donated a quarter of his salary to charity on the grounds that he felt it was too much, and had to juggle his active political life around a damaged family life (his second wife having divorced from him & his children having some disagreements with his politics).

It would have been easy for Mandela to exact revenge upon his former white oppressors, stripping them of their jobs, wealth and privilege in favour for a new, black-orientated system- after all, blacks were the majority racial group in the country. But this is what makes Mandela so special- he didn’t take the easy option. He was not, and has never been, a black supremacist, nor one given to knee-jerk reactions- he believed in equality for all, including the whites who had previously not extended such a fair hand to him. He showed the world how to ‘offer the other cheek’ (in Gandhi’s words), and how to stand up for something you believe in. But most importantly, he showed us all that the world works best when we all give up thoughts of vengeance, and petty selfishness, and we instead come together as a brotherhood of humanity. Mandela’s legacy to the world will none be of his brilliant political mind, nor the education, healthcare or economic systems he put in place to revive his country, or even the extraordinary dedication, perseverance and strength of will he showed throughout his long years behind bars. Nelson Mandela taught the world how to be a human being.

*Madiba was Mandela’s Xhosa name, and he is referred to affectionately as such by many South Africans

The Hidden Benefits

Corporations are having a rather rough time of it at the minute in the PR department. This is only to be expected given the current economic climate, and given the fact that almost exactly the same feelings of annoyance and distrust were expressed during the other two major economic downturns of the last 100 years. Big business has always been the all-pervasive face of ‘the man’, and when said man has let us down (either during a downturn or at any point in history when somebody is holding a guitar), they tend to be (often justifiably) the main victims of hatred. In essence, they are ‘the bad guys’.

However, no matter how cynical you are, there are a couple of glaring inconsistencies in this concept- things that can either (depending on your perspective) make the bad guys seem nice, make nice things seem secretly evil, or just make you go “WTF?”. Here we can find the proverbial shades of grey.

Let us consider, for instance, tourism. Nobody who lives anywhere even remotely pretty or interesting likes tourists, and some of the local nicknames for them, especially in coastal areas for some reason, are simultaneously interesting, hilarious and bizarre. They are an annoying bunch of people, seeming always to be asking dumb questions and trailing around places like flocks of lost sheep, and with roughly the same mental agility- although since the rest of us all act exactly the same when we are on holiday, then it’s probably better to tolerate them a little. Then there is the damage they can do to a local area, ranging from footpath erosion and littering to the case o the planet Bethselamin, “which is now so worried about the cumulative erosion of 10 billion visiting tourists a year that any net imbalance between the amount you eat and the amount you excrete whilst on the planet is surgically removed from your body weight when you leave- so every time you go to the lavatory there it is vitally important to get a receipt” (Douglas Adams again). The tourism industry is often accused of stifling local economies in places like Yorkshire or the Lake District, where entire towns can consist of nothing but second homes (sending the local housing market haywire), tea shops and B&B’s, with seemingly no way out of a spiral of dependence upon it.

However, what if I was to tell you that tourism is possibly the single most powerful force acting towards the preservation of biodiversity and the combating of climate change? You might think me mad, but consider this- why is there still Amazonian rainforest left? Why are there vast tracks of national path all over southern Africa? We might (and in fact should) be able to think of dozens of very good reasons for preserving these habitats, not least the benefits to making sure that all of our great planet’s inhabitants are allowed to survive without being crushed under the proverbial bulldozer that is civilisation, and the value to the environment of the carbon sink of the rainforests. But, unfortunately, when viewed from a purely clinical standpoint these arguments do not stand up. Consider the rainforest- depending on your perspective this is either a natural resource that is useful for all sorts of namby-pamby reasons like ensuring the planet doesn’t suffocate, or a source of a potentially huge amount of money. Timber is valuable stuff, especially given the types (such as mahogany) and sizes of trees one gets in the Amazon delta. Factor in that gain with the fact that many of the countries who own such rainforest are desperately poor and badly need the cash, and suddenly the plight of the Lesser Purple-Crested Cockroach seems less important.

And here tourists come to the rescue, for they are the sole financial justification for the preservation  of the rainforests. The idea of keeping all this natural biodiversity for people to have is all well and good, but this idea backed up by the prospect of people paying large sums of money to come and see it becomes doubly attractive, interesting governments in potential long-term financial gain rather than the quick buck that is to be gained from just using up their various natural resources from a purely industrial point of view.

Tourism is not the only industry that props up an entire section of life that we all know and love. Let me throw some names at you: Yahoo, Facebook, Google, Twitter. What do all of those (and many other besides) have in common? Firstly, that all are based on the internet, and secondly that the services offered by all three are entirely free. Contrast that against similarity three, that all are multi-billion dollar companies. How does this work? Answer, similarity 4: all gain their income from the advertising industry.

Advertising and marketing is another sect of modern business that we all hate, as adverts are always annoying by their presence, and can be downright offensively horrible in some cases. Aggressive marketing is basically the reason we can’t have nice things generally, and there is something particularly soulless about an industry whose sole purpose is to sell you things based on what they say, rather than what’s good about whatever they’re selling. They are perhaps the personification of the evils of big business, and yet without it, huge tracts of the internet, the home of the rebellion against modern consumer culture, would simply not be able to exist. Without advertising, the information Facebook has on its hundreds of millions of users would be financially useless, let alone the users themselves, and thus it would not be able to exist as a company or, probably, an entity at all, let alone one that has just completed one of the highest-value stock market flotations in commercial history. Google would exist perhaps merely as a neat idea, something a geek might have thought of in college and never been able to turn into a huge business that deals with a gigantic stake in web traffic as well as running its own social network, email service and even the web browser I am typing this on.

This doesn’t make advertisers and tourism companies suddenly all angels in the light of the world, and they are probably just as deserving of all the cynicism they get (equally deserving, probably, are Facebook and Google, but this would ruin my argument). But it’s worth thinking that, no matter how pushy or annoying they start to get, it may be a small price to pay for the benefits their very existence lends to us.

OK, this WILL be the last money post…

First up, an apology for lateness- I know I said that this post would be up on Saturday, but had forgotten at the time that I would be spending my Saturday doing an 80km hike (18 and a half hours, if you want to know- it hurt). My feet have thankfully recovered since then, and since I really CBA to do a Six Nations Post given that there was only one game at the weekend (France-Ireland), it was a draw (17 all) and I only saw the last half hour, I thought I would give it a miss and concentrate on wrapping up my recurrent theme of money.

To quickly summarise what we’ve covered so far:
1) Money is an arbitrary human situation to give us a reference point for relative value
2) The economic system is based upon the world’s value being increased by doing work on raw materials, and people making money from it by the difference between the value the workers increase the raw materials by, and the amount they get paid [This differential is partly a necessary artificial creation, and is partly due to the price of labour being effected by the workforce’s size and attitudes itself- see point 4]
3) The process of people buying stuff in an economy almost invariably leads to inflation. A low level of inflation is indicative of this- a high level indicates an economy getting desperate, and a negative level a stagnant one
4) The process of value increase and inflation is necessary to balance out the human race’s resource consumption (for living resources we have reproduction- for finite ones, economics)
5) The fundamental rule of economics- when supply goes up, or demand goes down, the price drops.

I want to proceed from point 3, with a quick (and possibly overly simple and completely unnecessary) detour into exactly why economists and politicians want people buying more stuff. The explanation is simple really- every time something is bought, a process of value-increasing is completed. The money you pay for anything will always be greater than the total cost of supplying, making, processing and serving it (serving here meaning everything from customer support and IT to the bloke behind the counter taking your money), so when stuff is bought the company who made it makes a profit. This is the bottom line that demonstrates the process of value-increase and provides the money for more of it. Thus, people buying things means, in the long run, that the value of the economy as a whole gets increased. This is what causes economic growth, and thus growth is vital for our way of existence.

This is the classical way that businesses, and economies, make money- people buyin’ stuffs. There is a fairly well-accepted model for the stages industry goes through to make money in this way. Primary industry concerns the acquisition of raw materials (so farming, logging or mining), secondary is manufacturing, tertiary is the service industry (so selling things to you) and quaternary is basically R&D- the development of new products to push companies forward. In addition to this, modern-day business has a huge sector dedicated to helping the business function properly- this is why you have the IT, HR and customer services departments, whose aim is to ensure that other companies do not get the edge on theirs in competency.

However, in the last 400 years or so, with the advent of more organised, larger-scale and less geographically restricted business (think the East India Company or modern-day multinationals), a new form of business has risen up- that of the stock market. The idea is fairly simple- instead of companies building and saving up their profit over time in an effort to gain money and grow slowly, they persuade other people to give them money in exchange for a slice of the profits, as a way of picking up some fast cash. This as a concept at first seems rather flawed, as it basically involves gambling on the individual skill and potential success of both business and businessman, but it is often a far more preferential strategy. For smaller businesses, accruing some serious cash, or getting past the point where meeting rent is a struggle, could take several years that the owner does not want to spend tearing his hair out, so a quicker way of making cash is highly preferable (although on a smaller scale all dealings will be private, rather than in the madness of the stock market, and are more likely to be in the form of loans to ensure ownership of the business). On a larger scale, dealing with all the attempts to buy and sell bits of the company gets far too complicated to deal with privately, so larger companies who want to trade themselves on a larger scale will ‘float’ themselves on the stock market- basically this means dividing their company up into several million tiny bits and waiting for people to buy them. From hereon in, the bits of the company itself behave like any other commodity- as the price fluctuates up and down (supply and demand again), professional stockbrokers will buy and sell them in an effort to make money. As a company becomes more valuable, its shares go up in value and people buy them, hoping they will continue to go up. As the price falls, people sell them in an effort to make a profit, or at least minimise the loss. This fluctuation can happen rapidly, over the course of mere hours, which is why pictures of stock exchanges seemingly all consist of men in suits screaming into phones- the stock market changes very, very fast.

However, the stock market itself presents a huge problem to an economy- while the investment of large amounts of money in companies is undoubtedly vital to the proper functioning of an economy, this can all go rapidly wrong. The problem is that because buying shares in a company involves giving that company money, it makes the company more valuable and so its shares more valuable. Thus, people buy more shares in it because they see the price rising- you see the problem. At its worst, this leads to people investing in a company solely because other people have invested in the company, meaning that the value of the shares is artificially high based solely on investment and speculation- nothing concrete. The problem arises when everyone suddenly decides to start selling their (now very valuable) shares- this pulls the invested money, now the backbone of the company’s high share price, out of the company, and the price begins to fall. Suddenly, all the investors (sensing the price is about to drop) sell all their shares too (incidentally, they don’t actually sell them to anyone- the rules of the stock market say the company have to buy them back at the appropriate price) and suddenly, all the money is gone, with nothing real for the company to trade to make them money the old-fashioned way (or at least not enough to justify their high share price). Suddenly, the company has had all its investment taken away and is facing the prospect of having to pay back dozens of aggressive investors, and has no cash left.

This story has repeated itself several times over the years- it is known as an economic ‘bubble’. It first occurred on any significant scale in the ‘South Sea Bubble’ in 1720, which disgraced an entire British government, collapsed a company and sent the economy into chaos (although the speculation and willingness to buy everything just before the bubble burst led to pleas for investment in square cannonballs and ‘a company for carrying out an undertaking of great advantage, but nobody to know what it is’. Genuinely). The largest ever such collapsed was the American Wall Street Crash of 1929, which (among other things), condemned a large chunk of the richest nation on earth to living in slums, provoked massive rioting, bankrupted large swathes of Europe as well (and was arguably responsible for the rise of the Nazis), lead the Democrats to control both the White House and Congress and let Franklin D. Roosevelt show the American government that a little liberal socialism now and again can work wonders, advice that they have so far steadfastly ignored for the last 80 years. So yeah- bad thing.

This is the (now muchly belated) point I was trying to make whence I first started out upon this trilogy- the Stock Market is a mental place. While investment is part of the economy we now live in, the way the stock exchange handles it does, in my opinion, far more harm than good (I know I promised to try and keep my Views out of this blog, but this is just an analysis so bear with me). The stock market does not exist for the good of the companies being invested in, it exists for the good of the stockbrokers themselves- basically, professional gamblers, betting on the economy which controls the well-being of thousands with one aim and one aim only in mind: to get rich as quickly, easily and with the least hassle possible. Don’t get me wrong- I’m sure the majority of them are just as nice, normal people as the rest of us, but as for their trade… its not one I’m a fan of.

I’m not sure I support the Occupy movements, leftie though I may be, and I certainly don’t advocate the overthrow of the entire capitalist system. But, to all those who think they are just a bunch of stupid hippies, just look at the suicide rates for 1930 and ask yourself this- do you want to live in a world where the actions of so few can ruin the lives of so many?