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The "Solution" Is Collapse
Of Two Minds Blog ^ | 6/8/12 | Charles Hugh Smith

Posted on 06/08/2012 9:22:17 AM PDT by Kartographer

Policies create incentives and disincentives. Some are intended, some fall into the category of unintended consequences. Regardless of their intention, policies that create windfalls ("easy money") or open spigots of "free money" (or what is perceived as free money by the recipient) quickly gather the allegiance of everyone reaping the windfall or collecting the free money. This allegiance is soon tempered into political steel by self-justification: humans excel at rationalizing their self-interest. Thus my share of the swag is soon "absolutely essential."

Humans don't need much incentive to pursue windfalls or free money--seeking windfalls in the here and now is our default setting. Taking the pulpit to denounce humanity's innate greed, avarice and selfishness doesn't change this, as seeking short-term windfalls has offered enormous selective advantages for hundreds of thousands of years.

That which is painful to those collecting free money will be avoided, and that which is easy will be pursued until it's painful. Borrowing $1.5 trillion a year from toddlers and the unborn taxpayers of the future is easy and painless, as toddlers have no political power. So we will borrow from the powerless to fund our free money spigots until it becomes painful.

It won't become painful to borrow from our grandkids for quite some time, and it will probably not become progressively painful, either, because we will suppress the pain with superlow interest rates and other trickery. The pain will more likely be of the sudden, unexpected, "this can't be happening to me" heart-attack sort: the free-money machine will unexpectedly grind to a halt in some sort of easily predictable but always-in-the-future crisis.

(Excerpt) Read more at oftwominds.com ...


TOPICS: Business/Economy; Government; Society
KEYWORDS:
The just of the article:

"So the root problem is the system, human nature, blah blah blah. There are no "solutions" that can fix those defaults. The "solution" is collapse, as only collapse will force everyone to go do something more sustainable to get by."


1 posted on 06/08/2012 9:22:24 AM PDT by Kartographer
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To: blam

PING!


2 posted on 06/08/2012 9:22:46 AM PDT by Kartographer ("We mutually pledge to each other our lives, our fortunes and our sacred honor.")
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To: Kartographer

Nothing will change until the money runs out.................


3 posted on 06/08/2012 9:27:34 AM PDT by PeterPrinciple ( (Lord, save me from some conservatives, they don't understand history any better than liberals.))
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To: PeterPrinciple
Nothing will change until the money runs out.................

Fiat currency never runs out. What happens is value goes to zero. Think Weirmar.

4 posted on 06/08/2012 9:30:21 AM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
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To: Kartographer
"It won't become painful to borrow from our grandkids for quite some time, and it will probably not become progressively painful, either, because we will suppress the pain with superlow interest rates and other trickery. The pain will more likely be of the sudden, unexpected, "this can't be happening to me" heart-attack sort: the free-money machine will unexpectedly grind to a halt in some sort of easily predictable but always-in-the-future crisis. "

A 'Black Swan'?

There is no peaceful/painless way back from here.

We've been 'kicking the can' way to long.

5 posted on 06/08/2012 9:30:50 AM PDT by blam
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To: Kartographer

Which many have pointed out for some time.
It is not possible intellectually to not see this. To blind one’s self requires an act of will, or stupidity.
Europe definitely, and the whole world possibly will be at war within five years.

Those who have been explaining what was coming and the economic inevitability of collapse coupled with the political realities making war the certain response to the collapse are going to ridicule the idiots who denied that this was coming. Just as we ridicule the idiots who said there was no housing over supply and no real estate bubble which was going to burst. Same people making up the opposing factions of thought in each case.


6 posted on 06/08/2012 9:32:26 AM PDT by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.)
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To: Kartographer
Politicians use the 7 deadly sins to lure votes, now they've used avarice to pave a broad and easy road far from the narrow path.
7 posted on 06/08/2012 9:43:20 AM PDT by fella ("As it was before Noah, so shall it be again.")
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To: central_va
Nothing will change until the money runs out.................
Fiat currency never runs out. What happens is value goes to zero. Think Weirmar.

The money ran out in the Soviet Union, they couldn't get any more from the people and they couldn't borrow anymore internationally. Eventually it happens in strange and curious ways.
8 posted on 06/08/2012 9:44:58 AM PDT by PeterPrinciple ( (Lord, save me from some conservatives, they don't understand history any better than liberals.))
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To: blam

There is no peaceful/painless way back from here.


Repeat LOUD and OFTEN.........................


9 posted on 06/08/2012 9:47:28 AM PDT by PeterPrinciple ( (Lord, save me from some conservatives, they don't understand history any better than liberals.))
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To: fella

Redistribution of collected taxes to citizens (and non-citizens)account for over 2/3’s of our government spending.

Problem is we need to cut 2/3 or more of total government spending to even begin digging ourselves out of the hole.

We started with a flat tax in the early 20th century and we ended up where we are now. It’s time to give the Fair tax a chance to allow entrepreneurs and investors a chance at growing our way out of this mess. It might be too late. But it is the only feasible path forward that I see.


10 posted on 06/08/2012 9:50:29 AM PDT by listenhillary (Courts, law enforcement, roads and national defense should be the extent of government)
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To: Kartographer

Some things have to break before they can be fixed.
Lets try to lessen and control spending first.... LOL


11 posted on 06/08/2012 9:51:17 AM PDT by ▀udda▀udd (>> F U B O << "What the hell kind of country is this if I can only hate a man if he's white?")
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To: fella

There are legitimate voices on both sides of the fence, but those sounds get drowned out by the greedy screams. And then we over-correct.


12 posted on 06/08/2012 9:52:32 AM PDT by Pecos (Constitution? Oh, you mean that thing we USED to have.)
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To: Kartographer

The only way back to lawful money is thru the pain from the collapse of this immoral Reserve system.


13 posted on 06/08/2012 10:37:19 AM PDT by veracious
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