The KMS state, the stock market and the economy

On February 15Th, I posted the following message:

"The KMS state,the stock market and the economy: a summary.
The universe is moved by 3 major interacting forces: gravity, electromagnetism and the nuclear force. The KMS state (Kubo Martin Schwinger) is a moving equilibrium between these 3 forces. The Bogdanov brothers compared the KMS state to a tightrope walker: gravity is in the pole, electromagnetism in the rope, the nuclear force in the guy holding the perch and the KMS state in the movement.
What has this to do with the economy and the stock market?
The economy is based on classical physics principles, namely thermodynamic laws, just as gravity. Finance theories, as the nuclear theory, are based on quantum physics. Derivative products, through the Black-Scholes formula, are something between the two, just like electromagnetism.
What is missing? The KMS condition.
The GDP Target Index is an algebraic based formulation attempt of a KMS-like state for the stock market.
Copyright © 2007 . All rights reserved."

I withdrew this message on March 2d because I didn't want to appear like somebody who does not have his two feet on the ground. I am restoring it after viewing the cover page of the Economist of March 3rd (picture of a foot on a rope), after I had sent a copy of my message to them ...

Here is more on this.
According to the theory of the KMS state at the Planck scale, the universe was formed from a moving equilibrium between forces at a "starting point" just after the big bang. Thus, the universe was formed from some kind of initial "non static order".

Economic and financial theories take their roots in physics. The KMS condition is a widely accepted concept in the scientific community. It is currently not being taken into consideration into existing economic/financial models which are only concerned with the visible part of the iceberg. As in physics, the invisible part of this iceberg holds in a conceptual nutshell.
A KMS-like state theory for the stock market, like the GDP Target Index, is no more speculative than the "Invisible Hand" concept of Adam Smith for the economy. The reference to the KMS state is used here as a metaphor.

copyright© 2007 . All rights reserved.