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Preparedness Startups

Day 189 and Cascades

One of the reasons we named the fund we invest out of Chaotic Capital is because I’m obsessed with cascade failures. In complex systems one small change can ripple out in unexpected ways. As players scramble to accommodate these shifts, opportunities for power realignments emerge. This is particularly exciting in systems that are man made as we can only create so much complexity in mechanical systems (unlike biological ones). Most startups are built on technology or engineering that are simple complex systems.

The absolute best description of the risks of a cascade comes from the science fiction television program The Expanse and a botanist named Prax. He is describing a failure in the hydroponics system (which both feeds the people and produces oxygen) on a space station on the moon Ganymede.

Because it’s simple it’s prone to cascades. And because it’s complex you can’t predict what is going to breakdown next or how.

While I’m a doomer and a prepper so it was bound to happen, it was this insight from Prax got me into hydroponics. Cascades and chaos and lettuce fuck yes!

But jokes aside, we’ve got a number of complex systems under strain right now. Supply chains, the financial system, our power grids coping with climate change, and even unemployment benefits are all examples of simple complex systems that are experiencing cascade failures.

I’m not in the mindset to lay a Grand Unified Theory of Simple Complex Systems tonight, because I did experienced one today. Colorado just set another heat record today and my air conditioner crapped out. As I set about closing blinds and checking electrical breakers I worried about how my own survival and comfort depends on cascades not occurring.

What if it had been electrical and my refrigerator went out and not just the air conditioner. Then my $5000 a dose immunosuppressant would go bad. If I can’t have that my spine will swell. Then I’ll be in too much pain to walk. Sure this isn’t a simple complex system exactly but I think it beneficial to go up and down the systems that keep our lives intact. If one system goes down do you survive?

This used to be a topic which we all shied away from. Then the pandemic happened and preppers like myself didn’t look quite so whacky. We told stories about the systems thinking that went into basic preparedness. We got a Nellie Bowles Styles piece. It was a lot of fun. But it belies the seriousness with which the topic of preparedness should be approached.

You probably aren’t prepared for some of the cascades that come as the works gets more chaotic. And no we cannot predict it. Shit is way too complex. It’s fucking chaotic as hell. So get some bottled water. I’ve made it easier. Here is what I keep in my go bags. Do it before the next cascade hits. You won’t regret it. I think Prax would agree.

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Chronicle Politics Preparedness Reading

Harden Your Personal Supply Chain

Remember think global act local? That wasn’t just a cute 90s slogan to warm us up to globalization. Or at least it probably shouldn’t have been. Having local hookups started to look pretty smart last March during the lockdowns. Local grocery stores held up better during disruptions than the big chains did. That’s just how complexity works. Americans learned that local has advantages.

One of my favorite scenes from the science fiction epic The Expanse is a botanist explaining systems cascades to the muscle.

“It’s a simple complex system. Because it’s simple it’s prone to cascades. And because it’s complex you can’t predict what is going to breakdown next or how

Supply chains are “sort of” simple complex systems (it’s just inputs of goods and outputs of retailers really). Which means cascades are a normal occurrence but genuinely hard to predict. The more we rely on modern inventions like “just in time” ordering and multi-country manufacturing and assembly, the trickier it gets. The money people are already worried about how distributors and consumer end points like groceries and restaurants will cope.

I’m obviously someone who likes to prepare for possible futures. I like finance, disaster preparedness and science fiction. All of which are put options on the future. So I’m beginning to give more consideration to how I can harden the supply lines in my own life. I have no control over logistics companies nor do I have special insight into choke points but I have done enough import work in my time in fashion and cosmetics to have lived through a cascade or two and seen the damage.

If it’s a topic of interest to you too I’d check out resilience and complexity studies (give Joe Normon a gander) and read the classic Lean Logic. You will start to notice the more expert someone is in complexity systems the more interest they have in providing themselves with personal protection against system hiccups or god forbid collapse.

Now I’m a globalist (in both the Hyatt points system sense and being married into a Jewish family) a capitalist, and a fan of trade so I’m pretty invested literally into a planet of free trade and open markets. But I don’t like being unprepared for a problem. Be it short or long term. So in addition to being a dedicated prepper I am giving a lot of thought into how I can harden my personal supply chain.

Some things are national or global in scope (pharmaceuticals notably) and I doubt I can find a local manufacturer of toilet paper, but I can very much get local milk, eggs, and vegetables. So I signed up for a milk coop. I already paid up front for a community supported agricultural share for the spring. And I’m noodling on what else I can find local in the Rocky Mountains. Meat is at the top of the list. I’m guessing some fuels like wood would be easy. Refined fuels might be tougher but Colorado has some options.

But it’s a fascinating exercise right? You realize you probably can’t buy clothing (even if it’s made here chances are the fabric and dyes came from elsewhere). You can’t buy most personal care products but you probably could buy some apothecary products. Most herbal medicines, teas and some cosmetics could be acquired. You notice that if our global supply chains cut off the goods you rely on simply won’t make it to you anymore. But the basics of life like food can very much be acquired and cultivated nearby. So I’m starting to buy what I can locally and build ties with farmers. Because it’s good for my community and it’s just more resilient living.

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Reading

Best Political and Economic Science Fiction Of The Last Decade

With the cynicism pervading American democracy in 2020 there is no finer time to imagine what comes next. While much of the science fiction that explores new political and economic systems tends to be dystopian in nature, not all of it is corporate nation states or socialist panopticons run amok. Indeed many authors are exploring concepts like the decentralized state, hyper local democracy, and currency systems. Here are some of the more recent novels that are guiding my imagination from the last decade of fiction

The Centenal Cycle series by Malka Older is a political optimist’s future disguised as a thriller. Infomacracy, the first in the series, is particularly relevant for those who want to explore a thought experiment on hyper-local government and a post-nation world.

Autonomous by Annalee Newitz is strictly speaking a biohacker thriller but the underlying exploration of ownership, property and patents will appeal to libertarians and its skeptics.

Distraction by Bruce Sterling is explicitly a political novel focused on the impending dissolution of America during an election year. While not particularly optimistic it is an excellent look at the motivation of corporate actors in nation states

The Expanse is having a cultural moment with the premier of its 5th season on Prime and the impending publication of its 9th and final novel. Humanity has populated Mars and the outer planets leaving humans (and Earth) to grapple with classism, trade tensions, a new colonial economics and the possibility of interplanetary war.

The Analog Series by Eliot Pepper looks like a classical political thriller that pits a jaded lobbyist against tech and energy executives but has a deeper exploration of an information economy that relies on total transparency. An excellent companion to Infomacracy that pits centralization against individual autonomy.

Neptune’s Brood by Charles Stross is more economic fiction than political but worth a read for its concept of slow money alone. How do stores of value function in a future with faster than light travel?

The Mandibles by Lionel Shriver is economic fiction about a family that is torn apart by a currency crisis. A bit meandering but worth it for cryptocurrency enthusiasts.

Further references to economic fiction can be found in this excellent overview by Rick Liebling. I have also put up a Twitter thread that has more options that are classics in the genre.