Off the cuff

The world is struggling because of the excesses of the central banks trying to fix yesterday’s problems. The crisis is obvious ….. from New York to Sydney.

I cannot fail but think about Karl Marx’s prophecy….capitalism will collapse because of the absurd concentration of financial power. (What he missed is that any system will collapse under the concentration of any power….see what happened to the USSR).

No system can survive without the proper supervision of the government. Once the government fails to perform this important function, any political and economic system will collapse.

We are witnessing a tragic unraveling of the mistakes and blunders of the US central bank trying to avoid deflation in 2002 and the idea of the US government that anyone should own a home without having the money to pay (a democratic catastrophic dream).

We are paying the price. There is going to be a huge transfer of wealth from the private to the public sector. We have no choice. This is what is dramatic.

I agree with Popper (a contemporary philosopher). The purpose of the government is to set the rules of the game. Once the rules become bastardized, we will eventually have to pay the bill.

This is what is happening now. It is not the fault of the republicans or democrats. Our institutions have failed us.

What can we do? Nothing. As we move from one problem to the next we have to learn how to survive. Eventually the government will become so big that will create other problems. We do not know which ones.

The answer? Be flexible in what you believe in. The rules of the game are being re-written every day.

More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977