We all tend to uphold a distorted picture of reality. We live in a state of denial to some degree. This is a human tendency. We believe what we want to believe. We see what we believe. There is a reality that approaches the word “truth”. None of us can see the complete “whole”. But we can get a sense of danger when the parts of the puzzle begin to form a picture that speaks to us. The question is at what point do you yell, “Watch out. Get out of the way. Get ready for this thing.”
So here it is. There is a great financial disaster coming that will cause a lot of human suffering and trouble. A lot of loss and injustice will result. Why will this happen and how can you be sure it will come?
Whether we like it or not, our economic systems create either justice and peace and the opportunity for harmony or they bring about terrible circumstances and devouring events strong enough to turn people into extremists and lay waste the world as we know it. Thus, if we construct overly complex, fragile, and vulnerable economic systems throughout the world, huge blunders and accidents can destroy human life and peace. Both capitalists and communists have convinced themselves that the only evil is in the economic order. Communists believe it is possible to combine a passion for social justice with a complete unconcern for individual righteousness. They seem to have a social consciousness to correct things, but no individual conscience to right their own wrongs and they create a greater wickedness to fight the perceived wickedness of others. The capitalists have great passion, but no ideals and in their materialism they have great zeal, but lack truth. The capitalistic marketplace is essentially about competition and about survival of the fittest. This translates into a disaster for the weak, the poor, the uneducated. The materialism of the capitalist system leaves the world in a valueless condition with the consequences of this being profound. In the end, neither communism nor capitalism ultimately solves the great human dilemma. Both systems undermine justice and peace and both systems create consequences and inequity, which inevitably befalls the madness of individuals accumulating massive unlimited wealth.
Capitalism is in the process of destroying itself because it has believed that too much of a good thing is a good thing and allowed credit markets to gorge themselves to the point of death of the system. People and organizations are pushing the quest for profit to the point of systemic destruction. No one is considering the health of the whole. Only, “What’s in it for me.” At some point you cannot keep creating credit and sucking up the entire world’s savings. At some point, “ the catastrophe will come one day because even the most powerful country in the world cannot repay loans amounting to seven trillion dollars.” No one is considering the danger and the fragileness of human life living in an economic reality. How much is enough? They do not believe that are limits to which we can push the credit system. They will keep building until they reach the sky.
And what of the Central Banks role to see the big picture and control all this? They have very limited tools and power in the scheme of things. This has blown past them and they cannot stop it now. They too tend to uphold a distorted picture of reality. They too live in a state of denial to some degree. Again, none of us can see the complete “whole”.
We think we saw the fall of communism as an economic reality and we think that means we “won” the economic argument. The other shoe is about to drop. Both capitalists and communists have convinced themselves that the only evil is in the economic order. Maybe the human heart’s lust and greed and denial are evil as well and maybe all the “isms” will come to show we need to be saved from ourselves.
How do I know a great economic disaster is ahead? A psychiatrist friend of mine told me about a patient he was asked to see that believed that she was in heaven. No one could talk her out of this. When he went to see her in the hospital he asked her how she knew she was in heaven. “Things float,” she told him. He asked her how she knew that things floated. She picked up a fork from her meal tray and threw it at the wall opposite her and turned to him while it was in the air and said, “You see, things float.”
The creation of about $1.2 trillion in mortgage credit every year is the, “You see, things float.” Don’t look now, but the fork is falling to the ground.
The article I've copied here has selected points appearing in red. If you like/need to have your attention drawn to just a few sentences rather than properly reading the whole article, you can find it in colour at http://www.financialsense.com/fsu/editorials/2005/0403.html
Or you can dismiss it entirely and put your head back in the sand.
