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Monday, August 11, 2014

The Next Systemic Crisis

[I have picked the illustration at random from a grab-bag of "coming crises".
Prepare for two things:
(1) to meet your Maker, and
(2) the death of money....... or some other nonce notion that inhabits the minds of those who make Money from the frightened.]

I have heard quite enough about possible financial crises recently, including from my mother, who has become a believer in vigorous market corrections after the Dow dropped 300 points or so last week (It did the same in February last, but she forgot).
She had a financial advisor whose job was to collect sizable fees, leaving her and my father fully invested in Real Estate as 2007 lapsed into 2008.

She has a litany of how many people lost money, and it could not be helped. She forgets my story of how I bailed out of everything in March, 2008, and pretty much put my money in my mattress. I am but a foolish offspring who lost nothing. She also forgets that the stock market has climbed back since 2008, and losses have been eclipsed.
I am neither a good steward nor a foolish steward; I am a "kid".

The present crises in the minds of such people, many of whom listen to FOX, are mostly due - I think - to the fact that something is not quite right... and Obama is President!

I don't see a financial crisis. We are all too aware of such things. We are on the qui vive!, so the French say: our eyes are peeled!
There will be scams, to be sure, but real systemic crises need to flourish in the shadow world where there are no newspapers, blogs, TV reporters, or any information media.

Back in 2007 and 2008, there was plenty of warning, only it was not in the "popular" media, but in more arcane and professional type publications.

The next crisis is quite obvious, but we cannot evaluate it even though it is plainly before us, for we have not lived through its destruction yet.
We appreciate a financial crisis because we've lived through one. But our rationality and understanding continues to be befuddled by things we have not personally experienced, nor which form a robust part of a Political or Religious or Social Narrative already. That is, we can believe fervently in a Story that we already believe in...
That is how we operate.

The Crisis is the failure of government to govern in such a way that the interests of all the Stakeholders in the country derive some benefit.

Majority Rule in a Democracy implies two things:
(1) there actually is governance, or "rule",
(2) the majority needs to comprehend the needs of the minority within its program.

If not, then the majority rule is Anarchy or Tyranny.


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