Quantify systemic deviation from ecological rationality using the formula:
IQₘ = (L × T) / (B × M)
Where symbolic abstraction (L × T) is constrained by biophysical feedback and moral limits (B × M).
Total non-financial debt / GDP (1=low leverage, 10=extreme debt burden)
Financial trading speed/volume relative to real economy (1=slow/matched, 10=hyper-fast speculation)
Ecological tethering: biocapacity/footprint ratio (1=severe overshoot, 10=large surplus)
Institutional integrity & equality (1=high inequality/corruption, 10=low inequality/high integrity)
Real-world examples from "The Insanity Quotient" (Kitcey, 2025). Click to load values.
| Case Study | L | T | B | M | IQₘ | Category |
|---|
Based on "The Insanity Quotient: A Comparative Analysis" by R.D. Kitcey (2025)
IQₘ = (Symbolic Leverage × Tempo Desynchronization) / (Biophysical Feedback × Moral Constraint)
All variables are normalized to a 1-10 scale for comparability. IQₘ approaches zero in ecologically sane systems where feedback dominates, but escalates toward infinity in monetarily unanchored regimes where leverage is unbounded and constraints are minimized.
Definition: The degree of abstraction and reliance on financial fictions over tangible assets.
Proxy: Total Non-Financial Debt-to-GDP Ratio
Measures total debt of governments, households, and non-financial corporations relative to real economy (GDP). Higher ratio means more activity fueled by promises (abstraction) rather than current production (reality).
Normalization: 1 = ~50% Debt/GDP (minimal leverage), 10 = ~350%+ (extreme debt burden)
Source: Bank for International Settlements (BIS), IMF, national central banks
Definition: The mismatch between speed of financial processes and tempo of ecological/social processes.
Proxy: Stock Market Total Value Traded-to-GDP Ratio (turnover ratio)
High value indicates hyper-fast financial system focused on short-term speculation, drastically out of sync with slow cycles of nature (seasons, generations) and long-term business investment.
Normalization: 1 = ~5% (slow, matched tempo), 10 = ~300%+ (hyper-speed speculation)
Source: World Bank, national stock exchanges
Definition: The system's tethering to physical limits and capacity for self-correction.
Proxy: Biocapacity-to-Ecological Footprint Ratio (inversely scaled)
If population's Footprint exceeds Biocapacity, it runs an ecological deficit (not tethered to local reality). Lower ratio = weaker feedback.
Normalization: 1 = Severe overshoot (ratio < 0.5), 10 = Large surplus (ratio > 1.5)
Source: Global Footprint Network
Definition: The presence of intrinsic, pro-social, and ethical limits on self-interested behavior.
Proxy: Composite Index of Gini Coefficient and Corruption Perceptions Index (CPI)
Gini (0=perfect equality, 1=perfect inequality) measures distributive justice. CPI (0=highly corrupt, 100=very clean) measures abuse of power. High inequality + high corruption = weak moral constraint.
Normalization: 1 = High inequality & corruption (Gini > 0.55, CPI < 25), 10 = Low inequality & high integrity (Gini < 0.25, CPI > 85)
Source: World Bank (Gini), Transparency International (CPI)
The IQₘ is sensitive to normalization choices and proxy selection. All historical benchmarks use best-available data from authoritative sources (BIS, World Bank, Global Footprint Network, Transparency International) but involve judgment in the 1-10 scaling. The model assumes a linear relationship between normalized proxies and systemic insanity, which may not fully capture non-linear, emergent properties of complex systems. Use as a diagnostic heuristic for pattern recognition, not as a precise prediction algorithm. Different analysts may arrive at different values depending on data sources and interpretive frameworks.