The Entropy Model

by Thomas Tunstall

“Forget about value at risk. The problem is the gross overall value of derivatives. Those electronic positions theoretically represent the real economy, the real world – but they don’t. Not anymore. They now constitute huge multiples of the global economy. One swap here, another there. Like I said, over and over. So many times, no single entity can keep count – or at least no single entity does keep count. No one tracks the positions in a systematic fashion. Not the traders. Certainly not the government or regulators.”“But–“Tim waved his hand impatiently. “Trouble is they can’t grow indefinitely, even though it seems that way. At some point – God knows when – everyone will want to cash out fast. That’s when things will get really ugly.”

232 pages, Kindle Edition

Published May 16, 2018

About the author

Thomas Tunstall, Ph.D. is the senior research director at the University of Texas at San Antonio Institute for Economic Development. He is the principal investigator for numerous economic and community development studies and has published extensively, including op-eds in the Wall Street Journal. He has testified before the U.S. House Subcommittee for the Western Hemisphere, obtained Top Secret clearance, and authored/delivered a TED Talk dealing with sustainable community development in light of shale oil and gas development. His research has led him to write a novel about the systemic disconnect between economics and ecosystems, and is entitled “The Entropy Model.” Dr. Tunstall holds a Ph.D. in Political Economy, and an M.B.A. from the University of Texas at Dallas, as well as a B.B.A. from the University of Texas at Austin.

Reviews

[Emily · Rating 4 out of 5]

A science-fiction economic thriller. Fun to read, full of interesting ideas and observations.

[Chelseyam · Rating 5 out of 5]

A great novel to help point out one of the major problems of our times. I found the story to be very interesting and informative, which is absolutely what I look for in a book. There’s a lot of dialogue, which is my thing, but if you’re looking for action then this might not be a book for you. I really enjoyed the characters though as I thought they were 3D and very intelligent. It was cool to read a book that really gets down to what needs to change and I hope many people read it for the message. I’d love to read a lot more from this author in the future, especially if he continues to point out such important things while creating a decent fictional story to go with them. I would recommend this book to anyone that loves science, philosophy and stories that involve a lot of thought.

[Heather Neistein · Rating 5 out of 5]

Is this fantasy or a glimpse into a possible future?

Current economics is growth-based. However, few economists would argue that the study of economics is based on finite resources. How do we reconcile this? According to this novel, we don't. We just continue consuming until the bottom falls out (entropy occurs). I can easily see this happening IRL.

This novel was a very easy read...once I started, I couldn't put it down. It's also a chilling reminder that the world economies have put themselves in a very precarious position. How much longer can we milk this closed system we call planet Earth before it all collapses around us?