{"id":7122,"date":"2015-04-06T06:39:18","date_gmt":"2015-04-06T11:39:18","guid":{"rendered":"http:\/\/olduvai.ca\/?p=7122"},"modified":"2015-04-06T06:39:18","modified_gmt":"2015-04-06T11:39:18","slug":"guaranteed-financial-security-is-a-fantasy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=7122","title":{"rendered":"Guaranteed Financial Security Is a Fantasy"},"content":{"rendered":"<h3><a href=\"http:\/\/www.oftwominds.com\/blogapr15\/no-guarantees4-15.html\" target=\"_blank\"><span class=\"Apple-style-span\"><i><b>Guaranteed Financial Security Is a Fantasy<\/b><\/i><\/span><\/a><\/h3>\n<p><span class=\"Apple-style-span\"><i>Guarantees based on extracting higher taxes, borrowing trillions of dollars and creating trillions more out of thin air only guarantee eventual systemic implosion.<\/i><\/span><\/p>\n<p><b>It is difficult for those living through tectonic social and economic shifts to recognize the passing of one era and the emergence of a new era.<\/b>\u00a0We are clearly in such a tectonic shift, yet it is slow enough and uneven enough that those who hope the old era will somehow endure despite the erosion of its foundations can find evidence to support their beliefs.<\/p>\n<p>1. The faith that risk can be identified and managed to the point it cannot disrupt the payment of promised pensions, benefits, yields, etc.<b>One such cherished belief is the faith that financial security can be guaranteed.<\/b>\u00a0This faith has two components:<\/p>\n<p>2. The faith that the system can pay what has been promised by one means or another.<\/p>\n<p><b>If tax revenues are inadequate, taxes can always be raised.<\/b>\u00a0If tax revenues fail to rise, then the money needed to pay the promised pensions, benefits, etc. can be borrowed. If the money cannot be borrowed, then it can simply be created out of thin air by central banks or printed by government treasuries.<\/p>\n<p><b>Before the advent of high finance, lowering risk could only be achieved by spreading the risk over a large populace.<\/b>\u00a0To lower the risk\u00a0<i>to individuals<\/i>\u00a0that their house would burn down in an accidental fire, insurance was sold to 1,000 homes. If one or two of the 1,000 homes burned down each year, the insurance could pay the claims and still build up reserves for future claims.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Guaranteed Financial Security Is a Fantasy Guarantees based on extracting higher taxes, borrowing trillions of dollars and creating trillions more out of thin air only guarantee eventual systemic implosion. It is difficult for those living through tectonic social and economic shifts to recognize the passing of one era and the emergence of a new era.\u00a0We [&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":[195,200,2088,4649,429,1816,690,783],"class_list":["post-7122","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-default","tag-faith","tag-financial-security","tag-insurance","tag-pensions","tag-risk","tag-taxes"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7122","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=7122"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7122\/revisions"}],"predecessor-version":[{"id":7123,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7122\/revisions\/7123"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}