Financial Crisis merely rough road to new paradigm
It is becoming crystal clear that a world as in how many viewed the world as it was is coming to an end. Let me provide an analogy. Watching the Discovery Channel Show, "Man versus Wild", the host and star was recently filmed in the wilderness of Siberia. Do you think those indigenous people care about our economic system collapsing---no of course not they are focused on carving out a basic living in the wilds of northern tundra. But those of us who remain in the post-modern world where commerce, jobs and politics matter how we carve out a living is important. John Stewart of "Evolution's Arrow" postulated eight years ago that we were coming to the end of the Mechanistic Era, defined by the worldview that our collective human systems were metamorphically designed like a fine swiss watch. This era began around the time of the mid-18th century when the watch was the epiphany of man's technology and ironically when the concepts of economics and self-government politics arose.
Now it can be said that the invisible hand that Adam Smith dreamed is reaking havoc on our own world, but of course John Nash said that Adam Smith only had things half right. In any case the stock market takes a dive today after the Senate passes the Stimulus Package and Geithner proposes new conditions for the Financial Banking Systems---counterintuitive unless you understand that Adam Smith only had things partially correct. What is actually happening is that those who have a shadow governance have manipulated themselves into a deep box of obsolence. The forces that are now unleashed have exposed that they have been living at trying to make $30 value on $1.00 of actual capital. It no different than how a gambler with a dollar goes to the roulette wheel and actually has only a dollar but knows the roulette wheel is fixed so they continually place their chips on the Black 22.
Now he attracts others who also with their dollars seek the $30 on a $1 bet but suddenly the bank is broken for no one is betting on the losing 99 other numbers. To continue the game of ever increasing profits the insider gamblers bet among themselves with the paper proceeds of winnings until they try to cash out. This is where things are today where an estimated $100 value has been placed on a dollar that is available for payout.
It is a world not unlike Royalty in the 18th Century. They became bankrupt morally and financially where upon a new world order emerged. This is that messy process. The new world order is said to be more analagous to nature and the nesting process. Ironically I read Mauldin this morning and he promoted "platform" companies which in another view is close to Stewart's Nesting organizations. In this realm new valuations will emerge that include social costs, ecological costs (beginning with carbon costs) but going deeper, economic costs and human costs. Ask yourself, if we know that 3rd work is dangerous to person's health why is there not an increased cost for all concernced? If coal fired plants we know increase the health costs of its communities why are there not increased costs to its operations? If forcing how work forces to commute long distances and use private transportation why is not those costs included? Why only the metrics of making and spending money for a transaction?
The basic idea of simply jobs as the only matrix to fixing this is ridiculous. Furthermore the idea that spending $1.6T on simply creating or maintaining 3M jobs is irresponsible. Actually the social and economic cost of the Civil War to end the slave society and maintain a Federal Union was also extreme unless you factor in that long term change benefit.
This is the beginning, only the beginning as we reorganize our society. I hope the shadow government of the corporate plutocracy AKA Oligarthy is shuddered for they are the ones willing to spend this money on saving them. They really don't care how much it costs as long as they are saved. But it is too late, the cost and need globally will be too great and the accountability trail will lead back to them.
It is a rough road, but a necessry one.





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