First a bit of clarification. What you plot is the Loop gain L(s), which would correspond to G(s)H(s) in the following diagram:
The complete transfer function (also called closed loop gain) in this case is:
$$ \frac{C(s)}{R(s)} = \frac{G(s)}{1+H(s)G(s)} $$
The inverse transform will have growing exponentials (meaning it is an unstable system) whenever that function has poles on the right hand side (RHS) of the s-plane. That is the same as finding out if there are any zeros on the RHS of the s-plane of 1+L(s). So basically the instability is determined by the loop gain, there is no need to calculate the more complex closed-loop gain. So when talking about stability, the plots are almost always of the loop gain L(s).
Back to your question:
Regarding the assertion of the system being unstable when the gain is greater than 0dB with inverted phase (-180), let me answer with an easy to see counter-example. Consider the very simple:
simulate this circuit – Schematic created using CircuitLab
The loop transfer function is $$ G(s)H(s) = K $$
If K<0, it has a bode plot of magnitude 20*log(K) and phase -180.
According to the overly assuming criterion that says:
if the loop gain is positive at -180°, the system will be unstable.
Then if |K| > 1 then it must be unstable.
Yet it isn't. The output is:
$$ Y = \frac{X}{1+K} $$
So if K = -2 (positive gain in dB and phase of -180),
$$ Y = -X $$
Stable.
On the other hand if K = -1, then we have a problem (it becomes unstable).
The above was an example of just a constant, but in general just knowing that the gain is > 0dB at -180 does not imply that the system is unstable. If your book says that, it is wrong (but it will seem to be right for many typical cases).
If you start imagining that the above system has a tiny delay and that the signal E hasn't had time to respond and has the wrong value and then see how it propagates iteratively through the loop, you'll conclude that the signal will grow without bound. And with this you'll fall into a mental trap that is difficult to get out of, which is what I think is the underlying misconception that doesn't allow to conceptually accept that the system in your question can be stable.
The bode plot is just a slice of Nyquist, and the bode stability criterion is just applicable when the Nyquist plot is typical, but Bode is just a convenience (it is easier to plot than Nyquist).
Nyquist plots and its simplified version of Bode plots are just graphical methods to mainly:
- Find out if the system has RHS poles, which become growing exponentials.
- Obtain insight on how far the system is from being stable/unstable and what can be done about it.
Also just to clarify, there is no swamping that will minimize unstable frequencies. One simple explanation is to consider that the total response is the superposition of the responses of all frequencies, so there is simply no way of fixing it, in the same way that you can't cancel a sinusoidal of a certain frequency with any number of sinusoidals of different frequencies.
But then again, thinking in terms of frequencies that make the system unstable is also incorrect. This instability is not the same as having an infinitely resonant frequency, like in an undamped 2nd order system. That is an oscillatory system, but the instability we're talking about is to grow without bounds with any input (except zero).
A simple way to prove it is realizing that an unstable system will have poles on the RHS of the s-plane, and that:
$$ L\{sin(at)\} = \frac{a}{s^2+a^2}$$
So there is no way that it can cancel out a pole in the transfer function that multiplies it. The output will still grow without bounds.
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