Ontological inquiries into the mechanisms of financial systemic oscillations and their entrainment by capital flows, leverage ratios, and other critical economic stimuli, has led us to thinking more generally about phase-setting experiments. To this end, we will be modelling a universal synthetic CDO and a H2O fall economy to realize a fully-equitable H2O fall economy -Lozano says here you’d get all the war machine of the market without the conservativism of State-violenced capitalism, and the pistons of difference can pump away, free from the sedentarist constraints of re-distribution.
Great, we think. Tell me more. How?
This post is an entry en media res with a series of tutorials (the first 3 of which can be accessed here) on how to use synthetically-structured financial assets as an instrument for effecting a radical nomadic distribution -we could label these series of tutorials Communism & Credit Derivatives if we were hoping people might get the wrong idea about the right object, or rather the right idea about the wrong object, but we’re not going to do this. We didn’t just do this.
Structured finance is fundamentally a technology for de-differentiating (pooling) and re-differentiating (tranching) risk and cash flow -fungibly, flexibly, plastically, and as we wish. Tranching comprises an activity by which we divide an asset (generic or synthetic), and in the process of dividing we change that asset in kind.
So the purpose of this post is to tell you that you can read about Tranches, that is to say our tutorial on Tranches can be found, here.
So once we grasp the powerful material capacities of Tranching -its capacities to arrange economic singularities- we will then be able to think about CLNs (which is the derivation of a generic referent from a synthetic exchange -i.e. the value of a referent here derives from the derivative, the copy fashions its own model), and then after that, we’ll be ready to directly consider how to build a synthetic CDO; and then after that we’ll be able to think about tinkering with a few things in a traditional synthetic CDO to get a universal synthetic CDO, the latter of which is the technology whose radical nomadic distributive capacities can only with some difficulty be overstated.
We’ll explain the H2O fall economy sometime later.