Cybernetic Capitalism

When the Economy Learns to Think

Introducing the Paudelian Feedback Framework (PuFF)

The world is entering an era where data moves faster than policy and markets react before governments can respond.

To survive this acceleration, capitalism itself must evolve—from a mechanical system guided by human command into a living system guided by intelligent feedback.

The Paudelian Feedback Framework (PuFF) is the foundation of this transformation. It translates economic behavior into a self-regulating feedback loop, allowing the economy to sense, interpret, and correct itself—just like a living organism.

The Core Equations of Cybernetic Capitalism

EPR = x/x₀ ——————- (1)

PAI = k log(x/x₀) ———- (2)

SIR = r + k log(x/x₀)——- (3)

EPR — The Economy’s Pulse Ratio

EPR measures the heartbeat of the economy: the ratio between actual liquidity (x) and its equilibrium level (x₀).

• EPR > 1: The system is running hot — inflationary pressure.

• EPR < 1: The system is cooling — recessionary slowdown.

Like a pulse monitor, EPR provides the first real-time signal of economic vitality.

PAI — The Paudelian Anchor Index

PAI converts that motion into meaning.

Using a logarithmic function, it interprets deviations proportionally—ensuring that the system responds ethically and symmetrically:

• Gentle restraint during booms (discipline).

• Quick relief during downturns (compassion).

PAI gives capitalism a conscience—the first mathematical model to combine moral intelligence with economic response.

SIR — The Spontaneous Interest Rate

SIR is the reflex of the entire system.

Instead of being set by committees or political will, the interest rate evolves automatically from data:

• Liquidity expands → SIR rises → cooling begins.

• Liquidity contracts → SIR falls → recovery begins.

It’s the autonomic nervous system of modern finance—a living rate that breathes with the economy.

The Cybernetic Revolution

Cybernetic Capitalism transforms the economy from a machine into a mind.

It is built on three fundamental insights:

1. Data is feedback. Every transaction teaches the system something about itself.

2. Ethics is equilibrium. Fairness and stability emerge from proportional response.

3. Capitalism can think. With the right equations, markets can correct themselves—without waiting for politics.

In this new paradigm, AI becomes perception, blockchain becomes memory, and feedback becomes morality.

Together, they form a cybernetic ecosystem where economies adapt in real time and capitalism evolves with human intelligence.

The Paudelian Vision

At the heart of Cybernetic Capitalism lies a single belief:

Balance is not imposed—it is discovered through feedback.

The Paudelian Feedback Framework marks the beginning of a new economic era—

one that is transparent, self-regulating, and ethically aware.