{"id":10030,"date":"2015-07-14T06:44:40","date_gmt":"2015-07-14T11:44:40","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10030"},"modified":"2015-07-14T06:44:40","modified_gmt":"2015-07-14T11:44:40","slug":"diminishing-returns-on-central-planning-policy-extremes-2016-crash","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10030","title":{"rendered":"Diminishing Returns on Central-Planning Policy Extremes = 2016 Crash"},"content":{"rendered":"<h3><a href=\"http:\/\/www.oftwominds.com\/blogjuly15\/policy-extremes7-15.html\" target=\"_blank\">Diminishing Returns on Central-Planning Policy Extremes = 2016 Crash<\/a><\/h3>\n<p><i>The problem with these policy extremes is that they are so painfully visibly acts of central-planning desperation.<\/i><\/p>\n<p><b>It is perhaps fitting that I am posting a call for a financial crisis that fails to respond to the usual central-planning manipulations on\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Bastille_Day\" target=\"resource\">Bastille Day<\/a>.<\/b>\u00a0There are two main lessons for the present era we can draw from the storming of the much-hated Bastille fortress-prison by a revolutionary mob in 1789 Paris:<\/p>\n<p>1. The authorities can only keep a lid on a simmering stew of injustice, inequality and structural imbalances for so long before the pot boils over.<\/p>\n<p>2. Last-minute baby-step reforms designed to placate the masses (i.e. simulacra reforms that are all show and no substance) cannot resolve the crisis; rather, they only reveal the full depth of the injustices, inequalities and imbalances.<\/p>\n<p><b>We are in the endgame of central planners&#8217; attempts to keep the lid on the simmering stew of profound imbalances that characterize the status quo.<\/b>\u00a0As I have described many times,\u00a0<a href=\"http:\/\/www.oftwominds.com\/blogjuly15\/illusion-of-stability7-15.html\" target=\"resource\">Maintaining the Illusion of Stability Now Requires Ever-Greater Extremes<\/a>\u00a0of central-planning policies.<\/p>\n<p><b>Mortgage\/housing market melting down due to systemic fraud? Nationalize the mortgage market.<\/b>\u00a0This is what the federal\/Federal Reserve central planners did post-2008, as 97% of all mortgages were guaranteed by federal agencies and the Fed bought $2 trillion of the $10 trillion outstanding mortgages in the U.S.&#8211;fully 20% of the entire mortgage market.<\/p>\n<p><b>Stock market bubble popping? Ban short-selling, criminalize negative comments in the media, and withdraw half the companies on the stock exchange from trading.<\/b>\u00a0This is partial list of the extremes China&#8217;s central planners recently imposed in an panic-driven orgy of central-planning.<\/p>\n<p><b>Another way to understand the increasing reliance on central-planning extremes and their declining effectiveness is\u00a0<i>diminishing returns<\/i><\/b>: more treasure, capital, time, energy and labor must be expended to keep the status quo from falling off a cliff.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Diminishing Returns on Central-Planning Policy Extremes = 2016 Crash The problem with these policy extremes is that they are so painfully visibly acts of central-planning desperation. It is perhaps fitting that I am posting a call for a financial crisis that fails to respond to the usual central-planning manipulations on\u00a0Bastille Day.\u00a0There are two main lessons [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[125,127,130,4899,994,2340,4924,7275,1302,1138],"class_list":["post-10030","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-planning","tag-charles-hugh-smith","tag-china","tag-economic-bubble","tag-endgame","tag-housing-market","tag-oftwominds","tag-policy-extremes","tag-status-quo","tag-stock-market"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10030","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10030"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10030\/revisions"}],"predecessor-version":[{"id":10031,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10030\/revisions\/10031"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10030"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10030"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10030"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}