Paul Jorion


Paul Jorion is by training an anthropologist, sociologist with a special interest in the cognitive sciences. He has also written seven books on capitalist economics.
Paul was born and raised in Belgium, and has been a Professor at the universities of Brussels, Cambridge, Paris VIII and University of California at Irvine. He was a Visiting Scholar of the "Human Complex Systems" Program at UCLA from 2005 to 2009. He currently lives in France where he runs a popular blog on financial and economic matters. In 2012, the Vrije Universiteit Brussel made him holder of the newly created "Stewardship of Finance" chair.

Kinship studies

A student of Claude Lévi-Strauss and of French mathematician Georges-Théodule Guilbaud in modeling kinship systems with algebraic models, Jorion has made several contributions to the field, solving in particular the marriage pattern of the Pende of the Congo, reconciling also conflicting interpretations of the kinship system of the Australian Murngin. Collaborating with Douglas R. White he has published several papers in the formalization of kinship algebra.

Memory and consciousness

In an article published in 1999, Jorion offered a new theory of consciousness which goes beyond the Freudian notion that some of our decisions have unconscious motives by suggesting that in fact all our decision-making has unconscious roots, revealing freewill to be an illusion. Consciousness is shown to be a consequence of a mechanism allowing us to perceive as simultaneous the sensations produced separately by our five senses, a necessary preliminary to creating memory traces, that is, also, the prerequisite to any learning process. Drawing the consequences of an observation made by Benjamin Libet, that intention is an artifact as it springs to consciousness half a second later than the action it is supposed to have generated, Jorion further suggested that consciousness errs when it assumes to be the cause of human actions while it is nothing more than an ancillary consequence of the registration process that allows memory to accrue.
In 1981, while lecturing at Cambridge University, he devised the P-Graph which found its use in the analysis of networks, of genealogies in particular.

Artificial intelligence

In 1989, Jorion participated in the work of the artificial intelligence unit of British Telecom. There he developed "ANELLA" whose "intelligence" is guided by a dynamics of affect – acting at the same time as a dynamics of relevance. In his book entitled "Principes des systèmes intelligents" published the next year, he made a wager that psychoanalysis will turn out to offer Artificial Intelligence its genuine theoretical framework.

Economics

His interest in behavioral theory has led Jorion to work on stock market behavior as a pricing specialist and, for a period, as a trader on the futures markets in a French investment bank. Despite, or because of, his work Jorion has become a critic of the structure of financial capitalism. He has deplored in particular the shift in accounting standards from a definition of price based on "fundamentals," i.e. "value," to "just value" equating with the speculative price. He has been instrumental at reviving Aristotle's theory of price, based on the power balance between buyer and seller, and has applied it to understand our current financial systems.
On 4 September 2007, in an op-ed for the French daily Le Monde, he proposes that, as is the case for the political sphere, the economy is given a proper constitution . In an interview in L’Humanité published January 2008, Jorion contends that contrary to the title of his 2007 book Is American Capitalism Heading to Crisis?, the distinctive form of Capitalism in the United States has already fallen into crisis.

"We are experiencing the consequences of the planned disappearance of welfare by deregulation. By strengthening the law of the strongest, the United States is heading toward a disaster never seen before, which I can only compare to the one of 1929".

In his 2008 book The Implosion. Finance vs. the Economy: what the subprime crisis reveals and foretells he emphasizes that the economy - unlike the political system with democracy - has not been raised to the status of a proper human institution and requires a similar self-domestication.
Jorion has also published in the Revue de Mauss, a French anti-utilitarian journal.

Philosophy of science

While not committing himself explicitly to Hugh Everett III’s many-worlds interpretation of quantum physics, Jorion demonstrates however in "Why, like cats, we have nine lives" that many-worlds allows to reconcile within a single conceptual system Descartes’s "cogito," Leibniz’s "best of all possible worlds" and Hegel’s views on the role of Reason in history.
In "The mathematician and his magic", Jorion analyzes Kurt Gödel’s demonstration of his second incompleteness theorem on the undecidability of some arithmetic propositions. He shows that the mathematician resorts to modes of proof of various epistemological qualities, ranging from the tight to the lax, including some, like the reductio ad absurdum which Aristotle excluded from scientific demonstration to confine it to everyday conversation.

Books