Friday, June 5, 2015

The Unanticipated Consequences Of Limitless Growth.......DO NOT MISS THIS!

The Unanticipated Consequences Of Limitless Growth

Techno-narcissism, the belief that the diminishing returns, unanticipated consequences, and over-investments in technology can be "solved" by layering on more technology — an idea whose first cousin is the wish to solve global over-indebtedness by generating more debt. 

Anyone seeking to understand why the public conversation about solving our pressing problems is so dumb, seek no further. !!!!

The banking problems we see all over the world are a direct expression of the limits to growth, specifically the limits to debt creation. We can't continue to borrow from the future to pay for our comforts and conveniences today because we have no real conviction that these debts can ever be repaid. We certainly wish we could, and the central bankers running the money system would like to pretend that we could by making negligible the cost of borrowing money and engaging in pervasive accounting fraud. But that has only served to cripple the operation of markets and pervert the meaning of interest rates — and, really, as a final result, to destroy any sense of consequence among the people running things everywhere.

The crackup of that financial system will be the signal failure of the collapse of the current economic regime. The financial system is the most fragile of all the systems we depend on (though the others do not lack fragility). This is the reason, by the way, that oil prices are so low, despite the fact that the cost of producing oil has never been higher. The oil customers are going broke even faster than the oil producers. Does anybody doubt that the standard of living in the USA is falling, despite all our cell phone apps?

The basic fact of the matter is that the energy bonanza of the past 200-odd years produced a matrix of complex systems, as well as a hypertrophy in human population. 

These complex systems — banking, agri-biz, hop-scotching industrialization, global commerce, Eds & Meds, Happy Motoring, commercial aviation, suburbia — have all reached their limits to growth, and those limits are expressing themselves in growing global disorder and universal bankruptcy. !!!!

But isn't it in the nature of things unanticipated that they generally are not? SMART PEOPLE CERTAINLY KNOW WHAT'S COMING!

The tide always turns and while out of favor today, preserving capital and managing risk will be back in vogue once more, but only after the declines occur.

The greatest fear in the investment management industry is not what one might expect. It is not losing money but the fear of not making enough money when the market is moving higher. This "fear of missing out" strikes terror into the heart of money managers as clients will simply not tolerate it; it is the cardinal sin of the business. INDEPENDENT THINKING IN THIS INDUSTRY IS ALMOST NONEXISTENT. EXACTLY WHY YOU SHOULD MANAGE YOUR OWN MONEY OR BE HEAVILY INVOLVED IN THE PROCESS! 

Lose money when the markets are going down and everyone else is suffering and you'll be just fine. But fail to capture maximum upside during a bull market and you'll soon be out of a job.


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