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An Original DocumentSelf Organising Systems
Free markets and their regulation by governments


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All living systems are both increasing and decreasing, there is a dynamic process going on.  There is order, but order is always threatening to turn into chaos.  This is because all living systems are complex, and they have several possible points of influence and change.  Economic systems are like that too. 

Free markets are highly desirable in any efficient economic system.  But markets are fed by imperfect information, and the participants in markets do not come with equal knowledge or buying power.  Some are effectively forced sellers, so they have little power to negotiate. 

Banks have been able to use markets, particularly the foreign exchange markets to make super profits.  In contrast, most farmers and many other primary producers have been unable to make a satisfactory living on free markets.  It's probably true that cities exploit the countryside in free market trading. 

Governments need to intervene in free markets to make rules that keep the trading fair.  In the future such rules are likely to include provision for environmental protection and market systems to provide for social goods like pensions. 

The great value of market systems is easily demonstrated.  When Enron collapsed, the market took it's losses and life went on.  There have been huge increases in oil prices in recent times, but there has been little disruption.  The next test might be the introduction of carbon trading.  Let's hope it's not a collapse of the American economy.

Natural Systems
Natural Systems