In order to appraise the actual state of affairs in this global village, let me break the ice by crudely exposing the three main ideas of this post.
On the after-effects of inequality:
“An imbalance between rich and poor is the oldest and most fatal ailment of all republics.” Plutarch (senior priest of Apollo at the Oracle of Delphi)
“The causes which destroyed the ancient republics were numerous; but in Rome, one principal cause was the vast inequality of fortunes.” Webster
On the hangover post debt accumulation:
“Blessed are the young, for they shall inherit the national debt.” Herbert Hoover
“Interest on debts grows without rain.”
This concept, brilliantly outlined by Eccles, is a part of our actual society. It is economic metastasic cancer, terminal stage. And now let’s go for the kind of wording you used to expect from a chairman of the Federal Reserve:
“As mass production has to be accompanied by mass consumption, mass consumption, in turn, implies a distribution of wealth … to provide men with buying power. … Instead of achieving that kind of distribution, a giant suction pump had by 1929-30 drawn into a few hands an increasing portion of currently produced wealth. … The other fellows could stay in the game only by borrowing. When their credit ran out, the game stopped.”
On inadvertently playing the common knowledge game (that the global central bank put will at all times save risk assets):
“An error does not become truth by reason of multiplied propagation, nor does truth become error because nobody sees it.” Mahatma Gandhi
Joseph Goebbels really explains it all. This is exactly what they are doing up at the top; conforming our opinion as if we were acolyte “moonies” in the Unification Church (Sung Myun Moon sect) . Bernanke is thrilled.
“It is the absolute right of the state to supervise the formation of public opinion.” Continue reading