{"id":18684,"date":"2016-03-09T19:15:24","date_gmt":"2016-03-10T00:15:24","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18684"},"modified":"2016-03-09T19:15:52","modified_gmt":"2016-03-10T00:15:52","slug":"the-terrifying-prospect-of-a-triumph-of-politics-over-economics","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18684","title":{"rendered":"The “Terrifying Prospect” Of A Triumph Of Politics Over Economics"},"content":{"rendered":"

The “Terrifying Prospect” Of A Triumph Of Politics Over Economics<\/a><\/h3>\n
The Triumph of Politics<\/strong><\/div>\n
\n
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\u00a0<\/strong>All of life\u2019s odds aren\u2019t 3:2, but that\u2019s how you\u2019re supposed to bet, or so they say. They are not saying that so much anymore, or saying that history rhymes, or that nothing\u2019s new under the sun.\u00a0More and more theys seem to be figuring out that past economic and market experiences can\u2019t be extrapolated forward – a terrifying prospect for the social and political order.<\/strong><\/p>\n

\u00a0<\/strong>Consider today\u2019s realities:<\/p>\n

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Global economies have grown to their current scale thanks to a glorious secular expansion of worldwide credit<\/strong>\u00a0\u2013 credit unreserved with bank assets and deposits; credit extended to brand new capitalists; credit that can never be extinguished without significant debt deflation or hyper monetary inflation<\/div>\n

Economies no longer form sufficient capital to sustain their scales<\/strong>\u00a0or to justify broad asset values in real terms<\/p>\n

Markets cannot price assets fairly in real terms without risking significant declines in collateral values<\/strong>\u00a0supporting them and their underlying economies<\/p>\n

Politicians that used to anguish (rhetorically) over the right mix of potential fiscal policies<\/strong>, ostensibly to get things back on track (as if somehow finding the right path would have actually been legislated into existence),\u00a0have come to realize the limits of their power to have a meaningful impact<\/strong><\/p>\n

Monetary authorities have become the only game in town,<\/strong>assassinating all economic logic so they may juggle public expectations in the hope \u2013 so far successfully executed \u2013 that neither man nor nature will be the wiser.<\/p><\/blockquote>\n

The good news for policy makers is that man remains collectively unaware and vacuous; the bad news is that nature abhors a vacuum<\/strong>. The massive scale of economies relative to necessary production (not to mention already embedded systemic leverage) suggests this time is truly different.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The “Terrifying Prospect” Of A Triumph Of Politics Over Economics The Triumph of Politics \u00a0All of life\u2019s odds aren\u2019t 3:2, but that\u2019s how you\u2019re supposed to bet, or so they say. They are not saying that so much anymore, or saying that history rhymes, or that nothing\u2019s new under the sun.\u00a0More and more theys seem […]<\/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":[9045,2203,1719,7418,124,1769,3392,3325,4333,1839,1450,12857,366,452,467,8696,505,534,668,1264,679,701,6876,741,10388,4318],"class_list":["post-18684","post","type-post","status-publish","format-standard","hentry","category-economics","tag-aig","tag-blackrock","tag-bond","tag-capital-markets","tag-central-banks","tag-corruption","tag-credit-crisis","tag-creditors","tag-crude","tag-deutsche-bank","tag-equity-markets","tag-general-motors","tag-global-economy","tag-japan","tag-keynesian-economics","tag-market-conditions","tag-market-share","tag-monetary-policy","tag-real-estate","tag-recession","tag-reserve-currency","tag-saudi-arabia","tag-shadow-banking","tag-sovereign-debt","tag-yield-curve","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18684","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=18684"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18684\/revisions"}],"predecessor-version":[{"id":18686,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18684\/revisions\/18686"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}