Tuesday, January 5, 2016

TRUTH WE ALL NEED TO GRASP IN 2016......

TRUTH WE ALL NEED TO GRASP IN 2016

The Federal Reserve, in their efforts to influence economic growth has created a speculative and consumption driven environment that is crushing productivity growth. Ingenuity, not debt, made America an economic powerhouse. If we are to resume down that path we need the Fed to end their "self-defeating" policies. The Fed, along with government, needs to get out of the way and stop meddling in once free markets. The Fed should start this arduous task by removing excessive stimulus which will take the speculative fervor out of markets and allow asset bubbles to deflate.

The terms of the coming reset might be somewhat negotiable if we could accept the reality of this re-set and prepare for it. But most of the people capable of thought these days prefer wishful techno-narcissistic woolgathering to a reality-based assessment of where things stand — passively awaiting technological rescue remedies ("they" will "come up with something") that will enable all the current rackets to continue. Thus, electric cars will allow suburban sprawl to function as the preferred everyday environment; molecular medicine will eliminate the role of death in human affairs; as-yet-undiscovered energy modalities will keep all the familiar comforts and conveniences running; and financial legerdemain will marshal the capital to make it all happen. Fantasy and delusion are much preferred to facts and truth in 2016.

There is a second element of the story to stay alert to: that most of the activities on-going in the USA today have taken on the qualities of rackets, that is, dishonest schemes for money-grubbing.

Of all the complex systems we depend on for contemporary life, finance is the most abstracted from reality and therefore the one most likely to show the earliest strains of crackup. The outstanding feature of recent times has been the ability of the banking hierarchies to employ accounting fraud to forestall any reckoning over the majestic sums of unpayable debt. The lesson for those who cheer lead the triumph of fraud is that lying works and that it can continue indefinitely — or at least until they are clear of culpability for it, either retired, dead, or safe beyond the statute of limitations for their particular crime. The problem is that at some point fraud becomes unsustainable and collapses the system. We are nearing that eventuality in 2016.

Of course it says something about the kind of society we've become that such racketeering has become so normative and pervasive, and that evading responsibility for its consequences has been elevated to a sort of enviable skill-set. In fact, the art of evasion has taken the place of what used to be called honor. We live in a low time that honors only low men. Ironically, we affect to admire only "superheroes" because it has become impossible to imagine mere humans showing courage, fortitude, and respect for truth. All conduct is provisional and equivocal. Every law can be parsed to serve what it was created to oppose. Anything goes and nothing matters.

Sadly, statistical analysis plays into the fantasy that if you can measure enough things you can control them. And if you mis-measure things on purpose, you can pretend to be in control. This illusion of control is the weakest ingredient in the financial system. When it does finally reach failure mode, it tends to produce calamity.

The swirl of events generally includes more vectors and factors than any calculus can manage and that is where we find ourselves headed into 2016. 

Government is not the solution to our problems;  government is the problem.

Servitude can exist in a free society, but freedom cannot exist in a slave nation.


"If ye love wealth or security better than liberty, the tranquillity of servitude than the animating contest of freedom, — go from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains sit lightly upon you, and may posterity forget that ye were our countrymen!"

                                                                                                                                         Samuel Adams


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