AGAINST

THE

GODS

THE REMARKABLE STORY OF RISK

Peter L. Bernstein

1998

2

Page XXIII

As Easy as I, II, III

Without numbers, there are no odds and no probabilities; without odds and probabilities, the only way to deal with risk is to appeal to the gods and the fates. Without numbers, risk is wholly a matter of gut.

We live in a world of numbers and calculations, from the clock we squint at when we wake up, to the television channel we switch off at bedtime. As the day proceeds, we count the measures of coffee we put into the coffeemaker, pay the housekeeper, consult yesterday's stock prices, dial a friend's telephone number, check the amount of gas in the car and the speed on the speedometer, press the elevator button in our office building, and open the office door with our number on it. And the day has hardly started!

It is hard for us to imagine a time without numbers. Yet if we were able to spirit a well-educated man from the year 1000 to the present, he probably would not recognize the number zero and would surely flunk third-grade arithmetic; few people from the year 1500 would fare much better.

The story of numbers in the West begins in 1202, when the cathe-dral of Chartres was nearing completion and King John was finishing his third year on the throne of England. In that year, a book titled Liber Abaci, or Book of the Abacus, appeared in Italy. The fifteen chapters of / Page XXIV / the book were entirely handwritten; almost three hundred years would pass before the invention of printing. The author, Leonardo Pisano, was only 27 years old but a very lucky man: his book would receive the endorsement of the Holy Roman Emperor, Frederick II. No author could have done much better than that.1

Leonardo Pisano was known for most of his life as Fibonacci, the name by which he is known today. His father's first name was Bonacio, and Fibonacci is a contraction of son-of-Bonacio. Bonacio means "sim-pleton" and Fibonacci means "blockhead." Bonacio must have been something less than a simpleton, however, for he represented Pisa as consul in a number of different cities, and his son Leonardo was cer-tainly no blockhead.

Fibonacci was inspired to write Liber Abaci on a visit to Bugia, a thriving Algerian city where his father was serving as Pisan consul. While Fibonacci was there, an Arab mathematician revealed to him the wonders of the Hindu-Arabic numbering system that Arab mathemati-cians had introduced to the West during the Crusades to the Holy Land. When Fibonacci saw all the calculations that this system made possible-calculations that could not possibly be managed with Roman letter- numerals-he set about learning everything he could about it. To study with the leading Arab mathematicians living around the Mediterranean, he set off on a trip that took him to Egypt, Syria, Greece, Sicily, and Provence.

The result was a book that is extraordinary by any standard. Liber Abaci made people aware of a whole new world in which numbers could be substituted for the Hebrew, Greek, and Roman systems that used letters for counting and calculating. The book rapidly attracted a following among mathematicians, both in Italy arid across Europe.

Liber Abaci is far mqre than a primer for reading and writing with the new numerals. Fibonacci begins with instructions on how to determine from the number of digits in a numeral whether it is a unit, or a multiple of ten, or a multiple of 100, and so on. Later chapters exhibit a higher level of sophistication. There we find calculations using whole numbers and fractions, rules of proportion, extraction of square roots and roots of higher orders, and even solutions for linear and quadratic equations.

Ingenious and original as Fibonacci's exercises were, if the book had dealt only with theory it would probably not have attracted much atten-tion beyond a small circle of mathematical cognoscenti. It commanded / Page X X V / an enthusiastic following, however, because Fibonacci filled it with prac-tical applications. For example, he described and illustrated many inno- vations that the new numbers made possible in commercial bookkeeping, such as figuring profit margins, money-changing, conversions of weights and measures, and-though usury was still prohibited in many places- he even included calculations of interest payments.

Liber Abaci provided just the kind of stimulation that a man as bril-liant and creative as the Emperor Frederick would be sure to enjoy. Though Frederick, who ruled from 1211 to 1250, exhibited cruelty and an obsession with earthly power, he was genuinely interested in science, the arts, and the philosophy of government. In Sicily, he destroyed all the private garrisons and feudal casdes, taxed the clergy, and banned them from civil office. He also set up an expert bureaucracy, abolished internal tolls, removed all regulations inhibiting imports, and shut down the state monopolies.

Frederick tolerated no rivals. Unlike his grandfather, Frederick Barbarossa, who was humbled by the Pope at the Batde of Legnano in 1176, this Frederick reveled in his endless batdes with the papacy. His intransigence brought him not just one excommunication, but two. On the second occasion, Pope Gregory IX called for Frederick to be deposed, characterizing him as a heretic, rake, and anti-Christ. Frederick responded with a savage attack on papal territory; meanwhile his fleet captured a large delegation of prelates on their way to Rome to join the synod that had been called to remove him from power.

Frederick surrounded himself with the leading intellectuals of his age, inviting many of them to join him in Palermo. He built some of Sicily's most beautiful casdes, and in 1224 he founded a university to train public servants-the first European university to enjoy a royal charter.

Frederick was fascinated with Liber Abaci. Some time in the 1220s, while on a visit to Pisa, he invited Fibonacci to appear before him. In the course of the interview, Fibonacci solved problems in algebra and cubic equations put to him by one of Frederick's many scientists-in-residence. Fibonacci subsequendy wrote a book prompted by this meeting, Liber Quadratorum, or The Book of Squares, which he dedicated to the Emperor.

Fibonacci is best known for a short passage in Liber Abaci that led to something of a mathematical miracle. The passage concerns the prob-lem of how many rabbits will be born in the course of a year from an original pair of rabbits, assuming that every month each pair produces / Page XXVI / another pair and that rabbits begin to breed when they are two months old. Fibonacci discovered that the original pair of rabbits would have spawned a total of 233 pairs of offspring in the course of a year.

He discovered something else, much more interesting. He had assumed that the original pair would not breed until the second month and then would produce another pair every month. By the fourth month, their first two offspring would begin breeding. After the process got started, the total number of pairs of rabbits at the end of each month would be as follows: 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233. Each successive number is the sum of the two preceding numbers. If the rab-bits kept going for a hundred months, the total number pairs would be 354,224,848,179,261,915,075.

The Fibonacci series is a lot more than a source of amusement. Divide any of the Fibonacci numbers by the next higher number. After 3, the answer is always 0.625. After 89, the answer is always 0.618; after higher numbers, more decimal places can be filled in. * Divide any number by its preceding number. After 2, the answer is always 1.6. after 144, the answer is always 1.618.

The Greeks knew this proportion and called it "the golden mean." The golden mean defines the proportions of the Parthenon, the shape of playing cards and credit cards, and the proportions of the General Assembly Building at the United Nations in New York. The horizon-tal member of most Christian crosses separates the vertical member by just about the same ratio: the length above the crosspiece is 61.8% of the length below it. The golden mean also appears throughout nature-in flower patterns, the leaves of an artichoke, and the leaf stubs on a palm tree. It is also the ratio of the length of the human body above the navel to its length below the navel (in normally propor-tioned people, that is). The length of each successive bone in our fin-gers, from tip to hand, also bears this ratio.

In one of its more romantic manifestations, the Fibonacci ratio defines the proportions and shape of a beautiful spiral. The accompa- nying illustrations demonstrate how the spiral develops from a series of /

* One of those odd quirks that numbers can produce reveals that you can derive 0.618 if you take the square root of 5, which is 2.24, subtract 1, and then divide by 2; this result is the algebraic proof of Fibonacci's sequence of numbers.

In technical terms, the formula for the Fibonacci ratio is as follows: the ratio of the smaller part to the larger part equals the ratio of the larger part to the whole.

/ Page XXVII (144 omitted)

 Page XXVII / squares whose successive relative dimensions are determined by the Fibonacci series. The process begins with two small squares of equal size. It then progresses to an adjacent square twice the size of the first two, then to a square three times the size of the first two, then to five times, and so on. Note that the sequence produces a series of rectangles with the proportions of the golden mean. Then quarter-circle arcs connect the opposite comers of the squares, starting with the smallest squares and proceeding in sequence.

This familiar-looking spiral appears in the shape of certain galaxies, in a ram's horn, in many seashells, and in the coil of the ocean waves that surfers ride. The structure maintains its form without change as it is made larger and larger and regardless of the size of the initial squar:e with which the process is launched: form is independent of growth. The journalist William Hoffer has remarked, "The great golden spiral seems to be nature's way of building quantity without sacrificing quality."2

Some people believe that the Fibonacci numbers can be used to make a wide variety of predictions, especially predictions about the stock mar-ket; such predictions work just often enough to keep the enthusiasm going. The Fibonacci sequence is so fascinating that there is even an American Fibonacci Association, located at Santa Clara University in California, which has published thousands of pages of research on the subject since 1962.

Fibonacci's Liber Abaci was a spectacular first step in making mea-surement the key factor in the taming of risk. But society was not yet prepared to attach numbers to risk. In Fibonacci's day, most people still thought that risk stemmed from the capriciousness of nature. People would have to learn to recognize man-made risks and acquire the courage to do battle with the fates before they would accept the tech-niques of taming risk. That acceptance was still at least two hundred years in the future.

We can appreciate the full measure of Fibonacci's achievement only by looking back to the era before he explained how to tell the dif-ference between 10 and 100. Yet even there we shall discover some remarkable innovators."

 

FIBONACCI SEQUENCE

 

 

 

 

ZAZAZAZAZAZAZAZAZA

AGAINST

THE

GODS

THE REMARKABLE STORY OF RISK

Peter L. Bernstein

1998

2

Page X X I X

"Primitive people like the Neanderthals knew how to tally, but they had few things that required tallying. They marked the passage of days on a stone or a log and kept track of the number of animals they killed. The sun kept time for them, and five minutes or a half-hour either way hardly mattered.

The first systematic efforts to measure and count were undertaken some ten thousand years before the birth of Christ.3 It was then that humans settled down to grow food in the valleys washed by such great rivers as the Tigris and the Euphrates, the Nile, the Indus, the Yangtse, the Mississippi, and the Amazon. The rivers soon became highways for trade and travel, eventually leading the more venturesome people to the oceans and seas into which the rivers emptied. To travelers ranging over longer and longer distances, calendar time, navigation, and geog-raphy mattered a great deal and these factors required ever more precise computations.

Priests were the first astronomers, and from astronomy came math-ematics. When people recognized that nicks on stones and sticks no longer sufficed, they began to group numbers into tens or twenties, which were easy to count on fingers and toes.

Although the Egyptians became experts in astronomy and in pre-dicting the times when the Nile would flood or withdraw, managing or influencing the future probably never entered their minds. Change was not part of their mental processes, which were dominated by habit, sea-sonality, and respect for the past."

 

"About 450 BC, the Greeks devised an alphabetic numbering system that used the 24 letters of the Greek alphabet and three letters that sub-sequently became obsolete. Each number from 1 to 9 had its own let-ter, and the multiples of ten each had a letter. For example, the symbol "pi" comes from the first letter of the Greek word "penta," which rep-resented 5; delta, the first letter of "deca," the word for 10, represented 1 0; alpha, the first letter of the alphabet, represented 1, and rho repre- sented 100. Thus, 115 was written rho-deca-penta, or(Greek word omitted). The Hebrews, although Bemitic rather than Indo-European, used the same kind of cipher-alphabet system.4..."

ZAZAZAZAZAZAZAZAZA

 

ABCDEFGHIJKLMNOPQRSTUVWXYZ

The English Alphabet numbers TwentySix symbols The Greek Alphabet Twenty Four The Jewish Alphabet 22

The far yonder scribe putting two and two together came up with a nine.

22 + 24+ 26

72

7 + 2

9

FINGERPRINTS OF THE GODS

Graham Hancock

1995

page

274

THE

PRE-EMINENT NUMBER OF THE CODE

IS

72

DICTIONARY OF SCIENCE

Siegfried Mandel 1868

Page

157

alpha - beta - gamma - delta - epsilon. - zeta - eta - theta - iota - kappa - lambda - mu - nu - xi - omicron - pi - rho - sigma - tau - upsilon - phi - chi - psi- omega "

Twenty Four

letters

ZAZAZAZAZAZAZAZAZA

I

CARE

ONE

IOTA

4
I
O
T
A

9
15
20
1

+
=
45
4+5
=
9

9
6
2
1

+
=
18
1+8
=
9
NINE
9

GREEK

ALPHABET

NUMBER

9

IOTA

I
O
T
A

9

9

NINE
9

6

6

SIX
6

1+5

9
15

+
=
24
2+4
=
6
SIX
6
4
I
O
T
A

9
15
20
1

+
=
45
4+5
=
9

1+5
2+0

6
2

+
=
8

8
EIGHT
8

9

1

+
=
10
1+0
=
1
ONE
1

9
6
2
1

+
=
18
1+8
=
9
NINE
9

 

AGAINST

THE

GODS

THE REMARKABLE STORY OF RISK

Peter L. Bernstein

1998

Page XXIX continues

Handy as these letter-numbers were in helping people to build stronger structures, travel longer distances, and keep more accurate time, the system had serious limitations. You could use letters only with / Page X X X / great difficulty-and almost never in your head-for adding or sub-tracting or multiplying or dividing. These substitutes for numbers pro-vided nothing more than a means of recording the results of calculations performed by other methods, most often on a counting frame or aba- cus. The abacus-the oldest counting device in history-ruled the world of mathematics until the Hindu-Arabic numbering system arrived on the scene between about 1000 and 1200 AD.

The abacus works by specifying an upper limit for the number of counters in each column; in adding, as the furthest right column fills up, the excess counters move one column to the left, and so on. Our con-cepts of "borrow one" or "carry over three" date back to the abacus.5

Despite the limitations of these early forms of mathematics, they made possible great advances in knowledge, particularly in geometry- the language of shape-and its many applications in astronomy, navi-gation, and mechanics. Here the most impressive advances were made by the Greeks and by their colleagues in Alexandria. Only the Bible has appeared in more editions and printings than Euclid's most famous book, Elements."

6
E
U
C
L
I
D

5
21
3
12
9
4

+
=
54
5+4
=
9

5
3
3
3
9
4

+
=
27
2+7
=
9
NINE
9

 

E
U
C
L
I
D

9

+
=
9

9
NINE
9
6
E
U
C
L
I
D

5
21
3
12
9
4

+
=
54
5+4
=
9

2+1

1+2

3

3

+
=
6

6
SIX
6

5

3

9
4

+
=
21
2+1
=
3
THREE
3

5
3
3
3
9
4

+
=
27
2+7
=
9
NINE
9

6
E
U
C
L
I
D

5
21
3
12
9
4

+
=
54
5+4
=
9

5
3
3
3
9
4

+
=
27
2+7
=
9
NINE
9

E
U
C
L
I
D

3
3
3

+
=
9

9
NINE

4

4

4
FOUR

5

5

5
FIVE

9

9

9
NINE

E
U
C
L
I
D

Page X X X I

"As simple a number as"

9

Page X X X continues

"Still, the greatest contribution of the Greeks was not in scientific innovation. After all, the temple priests of Egypt and Babylonia had learned a good bit about geometry long before Euclid came along. Even the famous theorem of Pythagoras-the square of the hypotenuse of a right triangle is equal to the sum of the square of the other two sides-was in use in the Tigris-Euphrates valley as early as 2000 BC.

The unique quality of the Greek spirit was the insistence on proof

"Why?" mattered more to them than "What?" The Greeks were able to reframe the ultimate questions because theirs was the first civilization in history to be free of the intellectual straitjacket imposed by an all- powerful priesthood. This same set of attitudes led the Greeks to become the world's first tourists and colonizers as they made the Mediterranean basin their private preserve.

More worldly as a consequence, the Greeks refused to accept at face value the rules of thumb that older societies passed on to them. They were not interested in samples; their goal was to find concepts / Page X X X I / that would apply everywhere, in every case. For example, mere mea- surement would confirm that the square of the hypotenuse of a right triangle is equal to the sum of the squares of the other two sides. But the Greeks asked why that should be so, in all right triangles, great and small, without a single exception to the rule. Proof is what Euclidean geometry is all about. And proof, not calculation, would dominate the theory of mathematics forever after.

This radical break with the analytical methodologies of other civi-lizations makes us wonder again why it was that the Greeks failed to discover the laws of probability, and calculus, and even simple algebra. Perhaps, despite all they achieved, it was because they had to depend on a clumsy numbering system based on their alphabet. The Romans suf-fered from the same handicap. As simple a number as 9 required two letters: IX. The Romans could not write 32 as III II, because people would have no way of knowing whether it meant 32, 302, 3020, or some larger combination of 3, 2, and 0. Calculations based on such a system were impossible.

But the discovery of a superior numbering system would not occur until about 500 AD, when the Hindus developed the numbering system we use today. Who contrived this miraculous invention, and what cir-cumstances led to its spread throughout the Indian subcontinent, remain mysteries. The Arabs encountered the new numbers for the first time some ninety years after Mohammed established Islam as a prose-lytizing religion in 622 and his followers, united into a powerful nation, swept into India and beyond.

The new system of numbering had a galvanizing effect on intellec-tual activity in lands to the west. Baghdad, already a great center of learning, emerged as a hub of mathematical research and activity, and the Caliph retained Jewish scholars to translate the works of such pio-neers of mathematics as Ptolemy and Euclid. The major works of math-ematics were soon circulating throughout the Arab empire and by the ninth and tenth centuries were in use as far west as Spain.

Actually, one westerner had suggested a numbering system at least two centuries earlier than the Hindus. About 250 AD, an Alexandrian / X X X I I / mathematician named Diophantus wrote a treatise setting forth the advantages of a system of true numbers to replace letters substituting for numbers.6

Not much is known about Diophantus, but the little we do know is amusing. According to Herbert Warren Turnbull, a historian of mathematics, a Greek epigram about Diophantus states that "his boy-hood lasted 1/6th of his life; his beard grew after 1/12th more; he mar-ried after 1/7th more, and his son was born five years later; the son lived to halfhis father's age, and the father died four years after his son." How old was Diophantus when he died?7 Algebra enthusiasts will find the answer at the end of this chapter."

 

7
A
L
G
E
B
R
A

1
12
7
5
2
18
1

+
=
46
4+6
=
10
1+0
=
1

1
3
7
5
2
9
1

+
=
28
2+8
=
10
1+0
=
1
ONE
1

 

7
A
L
G
E
B
R
A

1
12
7
5
2
18
1

+
=
46
4+6
=
10
1+0
=
1

1+2

1+8

3

9

1

7
5
2

1

+
=
16
1+6

=
7

1
3
7
5
2
9
1

+
=
28
2+8
=
10
1+0
=
1
ONE
1

 

Page X X X I I

"Diophantus carried the idea of symbolic algebra-the use of sym-bols to stand for numbers-a long way, but he could not quite make it all the way. He comments on "the impossible solution of the absurd equation 4 = 4x + 20."8 Impossible? Absurd? The equation requires x to be a negative number: - 4. Without the concept of zero, which Diophantus lacked, a negative number is a logical impossibility.

Diophantus's remarkable innovations seem to have been ignored. Almost a millennium and a half passed before anyone took note of his work. At last his achievements received their due: his treatise played a central role in the flowering of algebra in the seventeenth century. The algebraic equations we are all familiar with today-equations like a + bx = c-are known as Diophantine equations.

The centerpiece of the Hindu-Arabic system was the invention of zero-sunya as the Indians called it, and cifr as it became in Arabic.9 The term has come down to us as "cipher," which means empty and refers to the empty column in the abacus or counting frame.*

 

4
Z
E
R
O

26
5
18
15

+
=
64
6+4
=
10
1+0
=
1

8
5
9
6

+
=
28
2+8
=
10
1+0
=
1
ONE
1

 

The concept of zero was difficult to grasp for people who had used counting only to keep track of the number of animals killed or the number of days passed or the number of units traveled. Zero had noth-ing to do with what counting was for in that sense. As the twentieth- century English philosopher Alfred North Whitehead put it, /

The Arabic term survives even in Russian, where it appears as tsifra, which is the word for number.

Page X X X I I I

"The point about zero is that we do not need to use it in the opera-tions of daily life. No one goes out to buy zero fish. It is in a way the most civilized of all the cardinals, and its use is only forced on us by the needs of cultivated modes of thought.10

Whitehead's phrase "cultivated modes of thought" suggests that the concept of zero unleashed something more profound than just an enhanced method of counting and calculating. As Diophantus had sensed, a proper numbering system would enable mathematics to develop into a science of the abstract as well as a technique for mea-surement. Zero blew out the limits to ideas and to progress.

Zero revolutionized the old numbering system in two ways. First, it meant that people could use only ten digits, from zero to nine, to perform every conceivable calculation and to write any conceivable number. Second, it meant that a sequence of numbers like 1, 10, 100 would indicate that the next number in the sequence would be 1000. Zero makes the whole structure of the numbering system immediately visible and clear. Try that with the Roman numerals I, X, and C, or with V, L, and D - what is the next number in those sequences?

The earliest known work in Arabic arithmetic was written by al-Khowarizmi, a mathematician who lived around 825, some four hun-dred years before Fibonacci.11 Although few beneficiaries of his work are likely to have heard of him, most of us know of him indirectly. Try saying "al-Khowarizmi" fast. That's where we get the word "algo-rithm," which means rules for computing.12 It was al-Khowarizml who was the first mathematician to establish rules for adding, subtracting, multiplying, and dividing with the new Hindu numerals. In another treatise, Hisab al-jabr w' almuqabalah, or "Science of transposition and can-cellation," he specifies the process for manipulating algebraic equa-tions. The word al-jabr thus gives us our word algebra, the science of equations.13

One of the most important, surely the most famous, early math-ematician was Omar Khayyam, who lived from about 1050 to about 1130 and was the author of the collection of poems known as the Rubaiyat.14 His haunting sequence of 75 four-line poems (the word / XXXIV/ Rubaiyat defines the poetic form) was translated in Victorian times by the English poet Edward Fitzgerald. This slim volume has more to do with the delights of drinking wine and taking advantage of the transi- tory nature of life than with science or mathematics. Indeed, in num-ber XXVII, Omar Khayyam writes:

Myself when young did eagerly frequent

Doctor and Saint, and heard great Argument

About it and about; but evermore

Came out by the same Door as in I went.

According to Fitzgerald, Omar Khayyam was educated along with two friends, both as bright as he: Nizam al Mulk and Hasan al Sabbah. One day Hasan proposed that, since at least one of the three would attain wealth and power, they should vow that "to whomsoever this fortune falls, he shall share it equally with the rest, and preserve no pre-eminence for himself" They all took the oath, and in time Nizam became vizier to the sultan. His two friends sought him out and claimed their due, which he granted as promised.

Hasan demanded and received a place in the government, but, dis-satisfied with his advancement, left to become head of a sect of fanatics who spread terror throughout the Mohammedan world. Many years later, Hasan would end up assassinating his old friend Nizam.

Omar Khayyam asked for neither tide nor office. "The greatest boon you can confer on me," he said to Nizam, "is to let me live in a comer under the shadow of your fortune, to spread wide the advan-tages of science and pray for your long life and prosperity." Although the sultan loved Omar Khayyam and showered favors on him, "Omar's epicurean audacity of thought and speech caused him to be regarded askance in his own time and country."

Omar Khayyam used the new numbering system to develop a lan-guage of calculation that went beyond the efforts of al-Khowarizml and served as a basis for the more complicated language of algebra. In addi-tion, Omar Khayyam used technical mathematical observations to reform the calendar and to devise a triangular rearrangement of num-bers that facilitated the figuring of squares, cubes, and higher powers of mathematics; this triangle formed the basis of concepts developed by the seventeenth-century French mathematician Blaise Pascal, one of the fathers of the theory of choice, chance, and probability.

Page X X X V

"The impressive achievements of the Arabs suggest once again that an idea can go so far and still stop short of a logical conclusion. Why, given their advanced mathematical ideas, did the Arabs not proceed to probability theory and risk management? The answer, I believe, has to do with their view of life. Who determines our future: the fates, the gods, or ourselves? The idea of risk management emerges only when people believe that they are to some degree free agents. Like the Greeks and the early Christians, the fatalistic Muslims were not yet ready to take the leap.

By the year 1000, the new numbering system was being popu- larized by Moorish universities in Spain and elsewhere and by the Saracens in Sicily. A Sicilian coin, issued by the Normans and dated "1134 Annoy Domini," is the first known example of the system in actual use. Still, the new numbers were not widely used until the thir- teenth century.

Despite Emperor Frederick's patronage of Fibonacci's book and the book's widespread distribution across Europe, introduction of the Hindu-Arabic numbering system provoked intense and bitter resistance up to the early 1500s. Here, for once, we can explain the delay. Two factors were at work.

Part of the resistance stemmed from the inertial forces that oppose any change in matters hallowed by centuries of use. Learning radically new methods never finds an easy welcome.

The second factor was based on more solid ground: it was easier to commit fraud with the new numbers than with the old. Turning a 0 into a 6 or a 9 was temptingly easy, and a 1 could be readily converted into a 4, 6, 7, or 9 (one reason Europeans write 7 as...")(symbol omitted) Although the new numbers had gained their first foothold in Italy, where education levels were high, Florence issued an edict in 1229 that forbade bankers from using the "infidel" symbols. As a result, many people who wanted to learn the new system had to disguise themselves as Moslems in order to do so.15

The invention of printing with movable type in the middle of the fifteenth century was the catalyst that finally overcame opposition to the full use of the new numbers. Now the fraudulent alterations were / Page X X X V I / no longer possible. Now the ridiculous complications of using Roman numerals became clear to everyone. The breakthrough gave a great lift to commercial transactions. Now al-Khowarizml's multiplication tables became something that all school children have had to learn forever after. Finally, with the first inklings of the laws of probability, gambling took on a whole new dimension.

A
L

K
H
O
W
A
R
I
Z
M
I

8
15

9
26

9

+
=
67
6+7
=
13
2+10

A
L
-
K
H
O
W
A
R
I
Z
M
I

1
12

11
8
15
23
1
18
9
26
13
9

+

+
+

+
+
+
+
+
+
+
+
+
+

=

=

=

12

13

133

 

 

A
L

K
H
O
W
A
R
I
Z
M
I

8
15

9
26

9

+
=
67
6+7
=
13
1+3
=
4
2+10
A
L
-
K
H
O
W
A
R
I
Z
M
I

1
12

11
8
15
23
1
18
9
26
13
9

+
=
146
1+4+6
=
11
1+1
=
2

13

133

1+2

1+1

1+5
2+3

1+8

2+6
1+3

3

2

6
5

9

8
4

1

8

1

9

9

1
3

2
8
6
5
1
9
9
8
4
9

+
=
65
6+5
=
11
1+1
=
2

4

61

6+1

4

+

7

=
11
1+1
=
2

2+10
A
L
-
K
H
O
W
A
R
I
Z
M
I

1
12

11
8
15
23
1
18
9
26
13
9

+
=
146
1+4+6
=
11
1+1
=
2

1
3

2
8
6
5
1
9
9
8
4
9

+
=
65
6+5
=
11
1+1
=
2

1 + 1 + 2 + 3 + 4 + 5 + 6 + 8 + 8 + 9 + 9 + 9

 

The algebraic solution to the epigram about Diophantus is as fol-lows. If x was his age when he died, then:..." (calculation omitted) "Diophantus lived to be 84 years old.

 

 

Page X X X I I

"The centerpiece of the Hindu-Arabic system was the invention of zero-sunya as the Indians called it, and cifr as it became in Arabic.9 The term has come down to us as "cipher," which means empty and refers to the empty column in the abacus or counting frame."

19

+
=
19
1+9
=
10
1+0
=
1

6
A
B
A
C
U
S

1
2
1
3
21
19

+
=
47
4+7
=
11
1+1
=
2

2+1
1+9

3
10

1+0

1

1
2
1
3

+
=
7

1
2
1
3
3
1

+
=
11
1+1
=
2

TWO
2

6
A
B
A
C
U
S

1
2
1
3
21
19

+
=
47
4+7
=
11
1+1
=
2

1
2
1
3
3
1

+
=
11
1+1
=
2

TWO
2

 

Page X X X I

"As simple a number as"

9

Page X X X I I I

" It was al-Khowarizml who was the first mathematician to establish rules for adding, subtracting, multiplying, and dividing with the new Hindu numerals."

 

 

6
A
L
-
J
A
B
R

1
12

10
1
2
18

+
=
44
4+4
=
8

1+2

1+0

1+8

3

1

9

1

1
2

+
=
4

1
3

1
1
2
9

+
=
17
1+7
=
8
EIGHT
8

6
A
L
-
J
A
B
R

1
12

10
1
2
18

+
=
44
4+4
=
8

1
3

1
1
2
9

+
=
17
1+7
=
8
EIGHT
8

Page 197

12

The Measure of

Our Ignorance

Our confidence in measurement often fails, and we reject it. "Last night they got the elephant." Our favorite explanation for such an event is to ascribe it to luck, good or bad as the case may be.

If everything is a matter of luck, risk management is a meaningless exercise. Invoking luck obscures truth, because it separates an event from its cause.

When we say that someone has fallen on bad luck, we relieve that person of any responsibility for what has happened. When we say that someone has had good luck, we deny that person credit for the effort , that might have led to the happy outcome. But how sure can we be?

Was it fate or choice that decided the outcome?

Until we can distinguish between an event that is truly random and an event that is the result of cause and effect, we will never know whether what we see is what we'll get, nor how we got what we got. When we take a risk, we are betting on an outcome that will result from a decision we have made, though we do not know for certain what the outcome will be. The essence of risk management lies in maxi-mizing the areas where we have some control over the outcome while minimiz- ing the areas where we have absolutely no control over the outcome and the linkage between effect and cause is hidden from us."

 

7

MEASURE

82

28

1

11

MEASUREMENT

134

44

8

12

MEASUREMENTS

153

45

9

7

MEASURE

82

28

1

11

MEASUREMENT

134

44

8

12

MEASUREMENTS

153

45

9

+

+

=

=

30

369

 

12

MEASUREMENTS

153

45

9

THE HOLY BIBLE

Scofield Reference

A. D.

33

St JOHN

Verse

9

"As soon as they were come to land, they saw a fire of coals there, and fish laid thereon, and bread. thereon

10

JESUS

saith unto them, Bring of the fish which ye have now caught.

11

SIMON PETER

went up and drew the net to land full of great fishes,

an

HUNDRED

and

FIFTY

and

THREE

and for all there was so many, yet was not the net broken

12

JESUS

saith unto them,Come and dine. And none of the disciples durst ask him, Who art thou? knowing that it was the

LORD

13

JESUS

then cometh, and taketh bread, and giveth them, and fish likewise.

14

This is now the third time that

JESUS

shewed himself to his disciples, after that he was raised from the dead."

5
J
E
S
U
S

10
5
19
21
19

1
5
1
3
1

ONE FIVE THREE

1 5 3

 

5
J
E
S
U
S

10
5
19
21
19

+
=
74
7+4
=
11
1+1
=
2

1
5
1
3
1

+
=
11
1+1
=
2

TWO
2

10
S
I
X
T
Y
T
H
R
E
E

19
9
24
20
25
20
8
18
5
5

+
=
153
1+5+3
=
9

1
9
6
2
7
2
8
9
5
5

+
=
54
5+4
=
9
NINE
9

SIMON PETER

went up and drew the net to land full of great fishes,

an

HUNDRED

and

FIFTY

and

THREE

and for all there was so many, yet was not the net broken

J
E
S
U
S

10
5
19
21
19

1
5
1
3
1

J
E
S
U
S

1

1

1

1
ONE
1

5

5
FIVE
5

3

3
THREE
3

 

J
E
S
U
S

10
5
19
21
19

1
5
1
3
1

J
E
S
U
S

1

1

1

1
x
3

5

5
x
1

3

3

5

5
J
E
S
U
S

10
5
19
21
19

+
=
74
7+4
=
11
1+1
=
2

1
5
1
3
1

+
=
11
1+1
=
2

TWO
2

J
E
S
U
S

1

1

+
=
2

2

1+0

1+0

10

10

1+9

1+9

19

19

+
=
38
3+8
=
11
1+1
=
2

5
J
E
S
U
S

10
5
19
21
19

+
=
74
7+4
=
11
1+1
=
2

1+0

1+9
2+1
1+9

1

10
3
10

1+0

1+0

1

1

5

+
=
5

1
5
1
3
1

+
=
11
1+1
=
2

TWO
2

 

 

S
I
X
T
Y
T
H
R
E
E

19
9
24

8

+
=
60
6+0
=
6

10
S
I
X
T
Y
T
H
R
E
E

19
9
24
20
25
20
8
18
5
5

+
=
153
1+5+3
=
9

1+9

2+4
2+0
2+5
2+0

1+8

10

6
2
7
2

9

1+0

1

9

8

5
5

+
=
27
2+7
=
9

1
9
6
2
7
2
8
9
5
5

+
=
54
5+4
=
9
NINE
9

12

MEASUREMENTS

153

45

9

10

SIXTYTHREE

153

54

9
9

THIRTYSIX

152

53

8

10

SIXTYTHREE

153

54

9
9

THIRTYSIX

152

53

8
+

+

+

+
=

=

=

=
19

305

107

17
1+9

3+5

1+7

1+7

10

8

8

8

1+0

1

8

8

8

T
H
I
R
T
Y
S
I
X

8
9

19
9
24

+
=
69
6+9
=
15
1+5
=
6
9
T
H
I
R
T
Y
S
I
X

20
8
9
18
20
25
19
9
24

+
=
152
1+5+2
=
8

2+0

1+8
2+0
2+5
1+9

2+4

2

9
2
7
10

6

1+0

1

8
9

9

+
=
26
2+6
=
8

2
8
9
9
2
7
1
9
6

+
=
53
5+3
=
8

EIGHT
8

9
T
H
I
R
T
Y
S
I
X

20
8
9
18
20
25
19
9
24

+
=
152
1+5+2
=
8

2
8
9
9
2
7
1
9
6

+
=
53
5+3
=
8

EIGHT
8

 

5
SIMON

70

25

7
5
PETER

64

28

1
+

+

+

+
=

=

=

=
10

134

8

11

MEASUREMENT

134

11

MEASUREMENT

134

44

8

 

 

11

MEASUREMENT

134

44

8

12

MEASUREMENTS

153

45

9

 

12
Q
U
E
T
Z
A
L
C
O
A
T
L

17
21
5
20
26
1
12
3

15

1
20
12

+
=
153

1+5+3

=
9

 

12

MEASUREMENTS

153

THE NEW VIEW OVER ATLANTIS

John Michell

Page

153

CHAPTER

FIVE

The

Grain of Mustard Seed

" THE PHILOSOPHY AND SCIENCE, indeed the whole civilization, of the antique world were based on recognition of the unity which links both the macrocosm and the microcosm with the patterns of the visible universe. The mathematical laws to which all natural growth conforms were known to prevail both in the greatest cycles of celestial motion and in the development of life from the smallest germ of a cell. These laws can be studied throughout nature, in the regular logarithmic spirals to which a budding fern unfolds, or precisely illustrated in the arrangement of seeds on a sunflower, in sea shells and ammonites. The geometrical patterns of universal growth and form, the pentagon of a rose, the hexagon of a snowflake or of a honeycomb, all the regular shapes to which nature conforms, are present throughout the universe in every scale and dimension. In their formation can be detected the influences of various combinations of the elements, all of which must be present to some degree before matter can be created. In the names given to these elements, fire represents the germ of energy, the activating principle that instils life into form. The Pythagoreans, reassembling the traditional philosophy and science of the ancient world, associated fire, the first element, with the first figure of solid geometry, the tetrahedron, in whose formation the element called fire was considered to have the greatest influence. Related to the tetrahedron are the other solids which join the apices of a polygon to a single vertex; these

" include the Great Pyramid (pyr means 'fire') on its square base. Plato spoke of the pyramid as the first, lightest, smallest, sharpest, most acute and mobile of solid figures and wrote, 'That solid which has taken the form of a pyramid shall be the element and seed of fire.'

In the vegetable kingdom the seed of fire was represented by the seed of the mustard plant with which it has obvious affinities of colour and flavour. In the few surviving fragments of the philosophy of the ancient world, which include the Parables of the New Testament, there are several references to the mustard seed as an illustration of the vital element. Jesus said of the Kingdom of God, / Page 154 / It is like a grain of mustard seed, which, when it is sown in the earth, is less than all the seeds that be in the earth: But when it is sown, it groweth up, and becometh greater than all herbs, and shooteth out great branches; so that the fowls of the air may lodge under the shadow of it. (Mark iv, 31-32.)

The passage continues:

But without a parable spake he not unto them; and when they were alone, he expounded all things to his disciples. (Mark iv, 34.)

Three evangelists include the parable and repeat the words of Jesus concerning the power of faith, as a grain of mustard seed, by which mountains might be moved. This outward teaching on the potentially unlimited power latent in the atom, which Jesus later explained to his disciples in secret, was already illustrated in solid form by the Great Pyramid. The invisible pyramidal speck on the grain at the golden tip of the whole enormous structure contained the germ from which all had grown. The Great Pyramid demonstrates the laws behind the pure growth of life, and the seed or crystal was placed on its apex to distil the solar spark, the element of fire by which the essence is fertilized.

In the original Greek of the New Testament the grain of mustard seed is written..." (Greek letters omitted) To find the true, esoteric meaning of that phrase, as of any other of "the sacred principles in the New Testament scriptures, it is necessary to consult that branch of the ancient numerical science which was concerned with the correspon-dence of number with sounds and letters. In the alphabets of many of the old languages, Hebrew, Arabic and Greek among them, letters also served as numbers, making it possible to find the numerical value of any word or phrase by adding up the numbers of the letters of which it is composed.

This science, known as Gematria, was related to music, which was governed by the same numerical canon, for both sacred music and sacred words were used for invocations, the efficacy of which depended on pitch and vibrational frequency of sound. The numbers expressed in the plans of every ancient temple referred not only to the dimensions but also to the musical tones of the building, which was designed to represent both the geometrical shapes and the musical sounds appro- priate to the deity invoked there. Thus the Hebrew cabalists say of Belzebiel who built the Tabernacle that 'he knew the combination of letters of which heaven and earth were made'."

 

13
A
T
O
M
I
C

N
U
M
B
E
R
S

1
20
15
13
9
3

14
21
13
2
5
18
19

+
=
153

 

13
A
T
O
M
I
C

N
U
M
B
E
R
S

1
20
15
13
9
3

14
21
13
2
5
18
19

+
=
153
1+5+3
=
9

1
2
6
4
9
3

5
3
4
2
5
9
1

+
=
54
5+4
=
9
NINE
9

RA ATUM

A
T
O
M
I
C

N
U
M
B
E
R
S

15

9

14

19

+
=
57
5+7
=
12
1+2
=
3
13
A
T
O
M
I
C

N
U
M
B
E
R
S

1
20
15
13
9
3

14
21
13
2
5
18
19

+
=
153
1+5+3
=
9

2+0
1+5
1+3

1+4
2+1
1+3

1+8
1+9

2
6
4

5
3
4

9
10

1+0

1

1

9
3

2
5

+
=
20
2+0
=
2

1
2
6
4
9
3

5
3
4
2
5
9
1

+
=
54
5+4
=
9
NINE
9

RA

ATUM

ATOM

QUANTUM

A
T
O
M
I
C

N
U
M
B
E
R

15

9

14

+
=
38
3+8
=
11
1+1
=
2
12
A
T
O
M
I
C

N
U
M
B
E
R

1
20
15
13
9
3

14
21
13
2
5
18

+
=
134
1+3+4
=
8

2+0
1+5
1+3

1+4
2+1
1+3

1+8

2
6
4

5
3
4

9

1

9
3

2
5

+
=
20
2+0
=
2

1
2
6
4
9
3

5
3
4
2
5
9

+
=
53
5+3
=
8
EIGHT
8

12
A
T
O
M
I
C

N
U
M
B
E
R

1
20
15
13
9
3

14
21
13
2
5
18

+
=
134
1+3+4
=
8

1
2
6
4
9
3

5
3
4
2
5
9

+
=
53
5+3
=
8
EIGHT
8

 

7
P
H
Y
S
I
C
S

16
8
25
19
9
3
19

+
=
99
9+9
=
18
1+8
=
9

7
8
7
1
9
3
1

+
=
36
3+6
=
9

NINE
9

THE

99

NAMES

OF

GOD

BE STILL AND KNOW

THAT

I

AM

LOVE 

 

 

 

THE NEW VIEW OVER ATLANTIS

John Michell

1972

Page154  

"In the alphabets of many of the old languages, Hebrew, Arabic and Greek among them, letters also served as numbers, making it possible to find the numerical value of any word or phrase by adding up the numbers of the letters of which it is composed.

This science, known as Gematria, "

 

12
Q
U
E
T
Z
A
L
C
O
A
T
L

17
21
5
20
26
1
12
3

15

1
20
12

+
=
153

1+5+3

=
9

 

12
Q
U
E
T
Z
A
L
C
O
A
T
L

17
21
5
20
26
1
12
3

15

1
20
12

+
=
153

1+5+3

=
9

8
3
5
2
8
1
3
3
6
1
2
3

+
=
45
4+5
=
9
NINE
9

 

12
Q
U
E
T
Z
A
L
C
O
A
T
L

ADD

17
21
5
20
26
1
12
3

15

1
20
12

+
=
153

1+5+3

=
9
TO

1+7
2+1

2+0
2+6

1+2

1+5

2+0
1+2

REDUCE

8
3

2
8

3

6

2
3

8
3
5
2
8
1
3
3
6
1
2
3

+
=
45
4+5
=
9
NINE
9

ALL ADD IN ALLADIN 

11
A
B
R
A
C
A
D
A
B
R
A

ADD

1
2
18
1
3
1
4
1
2
18
1

+
=
52
5+2
=
7
TO

1+8

1+8

REDUCE

9

9

1
2
9
1
3
1
4
1
2
9
1

+
=
34
3+4
=
7
SEVEN
7
 

11
A
B
R
A
C
A
D
A
B
R
A

1
2
18
1
3
1
4
1
2
18
1

+
=
52
5+2
=
7

1
2
9
1
3
1
4
1
2
9
1

+
=
34
3+4
=
7
SEVEN
7

 THE

KORAN

EVERYMAN

 IN

THE

NAME

OF

GOD

THE

COMPASSIONATE

THE

MERCIFUL

page

153

SURA

12

'Joseph, man of truth! teach us of the seven fat kine which seven lean devoured, and of the seven green ears, and other withered, that I may return to the men, and that they may be informed.'

He said, 'Ye shall sow seven years as is your wont, and the com which ye reap leave ye in its ear, except a little of which ye shall eat.

Then after that shall come seven grievous years which shall eat what ye have stored for them, except a little which ye shall have kept.

Then shall come after this a year, in which men shall have rain, and in which they shall press the grape.'

50

And the King said, 'Bring him to me. And when the messenger came to Joseph, he said, 'Go back to thy lord, and ask him what meant the women who cut their hands, for my lord well knoweth the snare they laid.'

Then said the Prince to the women, 'What was your purpose when ye solicited Joseph?' They said, 'God keep us! we know not any ill of him.' The wife of the Prince said, 'Now doth the truth appear. It was I who would have led him into unlawful love, and he is one of the truthful.' 'By this' (said Joseph) 'may my lord know that I did not in his absence play him false, and that God guideth not the machinations of deceivers.

I hold not myself clear, for the heart is prone to evil, save theirs on whom my Lord hath mercy; for gracious is my Lord, Merciful,'

And the King said, 'Bring him to me: I will take him for my special service.' And when he had spoken with him he said, 'From this day shalt thou be with us, invested with place and trust.'

 

SURA

33

MEDINA

73

VERSES

.

"...Nearer of kin to the faithful is the Prophet, than they are to their own selves. His wives are their mothers. According to the Book of God, they who are related by blood, are nearer the one to the other than other believers, and than those who have fled their country3 for the cause of God: but whatever kindness ye shew to your kindred, shall be noted down in the Book.

And remember that we have entered into covenant with the Prophets, and with thee, and with Noah, and Abraham, and Moses, and Jesus, Son of Mary: and we formed with them a strict covenant,

That God may question the men of truth as to their truth..."

 

 

 

 

 

AGAINST THE GODS

THE REMARKABLE STORY OF RISK

Peter L. Bernstein

1998

Page X X X I I

" The centerpiece of the Hindu-Arabic system was the invention of zero-sunya as the Indians called it, and cifr as it became in Arabic.9"

 

4

ZERO

64

28

1

5

SUNYA

80

17

8

3

GOD

26

17

8

5

SATAN

55

10

1

 

4

ZERO

64

28

1

5

SUNYA

80

17

8

 

9
26

+
=
35
3+5
=
8

4
G
I
Z
A

7
9
26
1

+
=
43
4+3
=
7

2+6

8

7
9

1

+
=
17
1+7
=
8

7
9
8
1

+
=
25
2+5
=
7
SEVEN
7

4
G
I
Z
A

7
9
26
1

+
=
43
4+3
=
7

7
9
8
1

+
=
25
2+5
=
7
SEVEN
7

 

 

 

6
A
M
U
L
E
T

1
13
21
12
5
20

+
=
72
7+2
=
9

1+3
2+1
1+2

2+0

4
3
3

2

1

5

+
=
6

1
4
3
3
5
2

+
=
18
1+8
=
9
NINE
9

6
A
M
U
L
E
T

1
13
21
12
5
20

+
=
72
7+2
=
9

1
4
3
3
5
2

+
=
18
1+8
=
9
NINE
9

 

6

JOSEPH

73

28

1
5

JESUS

74

11

2
4

MARY

57

21

3

 

6

JOSEPH

73

28

1
5

JESUS

74

11

2
4

MARY

57

21

3
+

+

+

+
=

=

=

=
15

204

60

6
1+5

2+0+4

6+0

6

6

6

6

 

6

JOSEPH

73

28

1
5

JESUS

74

11

2
4

MARY

57

21

3