But now you’ve got no choice; you can’t get off and you’ve got to see it all the way through to the end. The way I see it, the similarities to the current global financial mess are way too close for comfort, and we’re in a dangerous, messy economic slowdown unlike any we’ve see before.
Superficial and frantic attempts to cover it all up are being exposed for what they are; and what we’re seeing is not pretty. It seems that no matter how bad you thought it was, it’s worse than that. It’s a big merde sandwich, and we’ve all got to take a bite.
King Henry and his henchmen are still trying to jaw-bone their way out of this, but all the bandaids they put on the wound are quickly shown to be ineffective.
Stepping back to look at the overall situation from a very exterior point, there seems to be no effective strategy to address this crisis in the financial community. All the steps that are being taken are just ad hoc “try this or try that” and see if anything they can come up with will work. Mostly they’re “going on hoping” that somehow it will all go back to the way it used to be. It won’t.
The middle of the night, “cold sweat issues” that keep these financial professionals, bankers, and other thieves awake at night is that the game has changed and they don’t have a business model to deal with the current crisis. The usual solutions don’t have any effect on this problem and it’s starting to look like they have resorted to prayer as a business plan. They’re afraid to act because it might make things worse – and they’re afraid that non-action will have the same results.
They’re frantically doing things that don’t work and don’t matter while ignoring the real situation. And what’s even worse, I keep reading the writings of economists who are supposed to be experts on their opinions on predicting what will happen to the economy. The fluctuation in their answers from day-to-day is worse than a weather reporter. Not exactly a confidence booster.
I’m not an economist, but here’s the way I see it: the real problem is that there is no workable technology of economics as it currently exists. The ones who are supposed to know, who we assumed know more than we do . . . don’t. They’re just a bunch of suits with letters after their names, piling it on, high and deep.
Economics, as it’s practiced today just doesn’t work. It’s not a science and never was. It is at best a social philosophy, but a fraudulent one at that because they’re pretending they know when they don’t. They’ve got this so-called “science” based on hypothetical theories, baseless opinions and beliefs, a specialized vocabulary, conjecture, speculation, assumptions and wild guesses. What is singularly missing is a workable, applied science of economics, that which underlies the whole field of finance and banking.
The “science” of economics is so disconnected from the reality of the real world, that a coin toss or the Farmers Almanac would work as well. It no more qualifies as a science than does astrology, meteorology, psychology or most other ‘ologies” that only work about 20% of the time at best. This was a grim thought, because people thought that they knew what they were doing – but they don’t – and now they’re deathly afraid that their secret is out of the bag.
In my current opinion, the whole subject of modern economics is a fraud. They’re trying desperately to put that genie back in the bottle so they can hold onto their undeserved status, unearned professorial altitude and positions of responsibility far above their ability and knowledge to handle. But at this point, it’s gone too far.
Prior to the 18th century, those investigating natural phenomena like economics, were called “natural philosophers.” Maybe if they had stayed with that label, maybe they wouldn’t have been seduced into pretending they knew what they were talking about.
It appears they have forgotten that the term economics stems from the Greek word, oikonomia, which translates to, “management of a household” – a concept that any housewife deals with every day and knows more about than the ivory-tower experts. So, the subject in general needs an overhaul, to be sure. But, if we don’t solve the immediate problem, fast, we may be in for a long, cold winter before we come out of this.
Here’s the way I see it: any approach to the current financial crisis has to be based on common sense and must include at least the following steps:
1. Throw out the rose-colored glasses, and those whose bungling contributed to the situation and put somebody in charge that can confront and handle the scene.
2. Put a label on the actual state of affairs – confusion will do as well as any; we have to know where we are before we can decide where we’re going.
3. Knock off frantically trying to cover up the problem with justifications, reasons, and explanations.
4. Step back and find out where you are, for real. Face the fact that what you have been doing isn’t working and those who were being paid to keep this from happening are in fact, treasonous. Get rid of them.
5. Remember, an accident happens once, a coincidence, twice; three times, it’s an enemy action; take fast action now!
6. Do a quick and accurate estimation of the immediate threat and how much time is available to handle, Isolate the most dangerous spot and get on it fast; move on to the next area; repeat this process.
7. Do an analysis of what strategic and tactical resources (human, financial, and otherwise) exist to apply to the situation; deploy them in the most effective manner.
8. Realize that any dangerous situation requires fast, effective action based upon a sane evaluation and handling of the real problem, not the symptoms.
9. While doing the above, put steps in place to shore up the weak links and hold the fort while making sure the “sutures” hold.
10.Reinspect the scene; adjust as necessary; remain alert and gradually get back to a scene that works.
Now, we might be a lot easier to get this back on the rails if some of the people involved weren’t actively working against you – but they are.
Three things stand in the way of any real correction:
a. The people in charge think they know everything they need to know already.
b. They have a vested interest in the correction not working.
c. They are working for and are being paid by the enemy camp.
What you can do first is to get your own house in order, then demand that those connected to you do the same. Get rid of anyone who says it can’t be done, they are not your friends. Hunker down and endure what it takes to bring things back to battery – as the artillery men say – and ready to go again. Then gradually return to a stable, workable method of “managing a household,” with common sense, honest work and fair pay.
It’s going to be a bumpy road for a while, but I still have confidence and resiliency of the American people. We’ll get through it and come out stronger and more aware in the end.
One more thing . . .
The following quote is from a report by the Royal Bank of Scotland’s economic research team – – prescient or intelligent foresight?
Note the date that this was published:
“The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyzes the major central banks.” – June 2008.
Okay, I humbly admit that there are some economists that know what they’re doing . . . but I guess they’re just not living in America!
daniel w. jacobs
(c) 2008-2020, all rights reserved
Disclaimer: This article is intended to stimulate critical thought and awareness of the issues involved. The author makes no guarantee of the accuracy of the writings beyond a common sense observation of the obvious.