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Friday, August 8, 2014

Economic Relevance: Complexity, Manipulation, and Instability

Expert Economist: U.S Is Heading Toward Financial Ruin - Infowars - August 7, 2014

Youtube Commenter quote: Government is like fire. If you control it it will give you light, keep you warm, cook your food, warm your bath water etc. but if you let it go out of control it will burn everything within it's reach feeding itself.

(Wikipedia) - Bill Bonner is an American author of books and articles on economic and financial subjects. He is the founder and president of Agora Publishing, and author of a daily financial column, Diary of a Rogue Economist.[1] Bonner is also co-founder and regular contributor to The Daily Reckoning. And he has written articles for the news and opinion blog,[2] and MoneyWeek magazine.[3]

 Bill's latest work is entitled Hormegeddon (the word comes from the scientific process of hormesis---which is what happens when a small dose of something produces a favorable effect, but anything larger makes one sick ... the process that is tearing America apart today.

Why the Government Views You As Collateral Damage - Daily Reckoning - Bill Bonner - July 29, 2014 - The illusions, mistakes and misconceptions of central planners take their toll in a great variety of ways — mostly as costly nuisances.                  Occasionally, when they are particularly ambitious, they make the history books.                     Napoleon’s march on Moscow. Mao’s great famine. The Soviet Union’s 70-year economic experiment. These fiascos are caused by well-meaning, smart public officials. They are the Hell to which the road paved with good intentions leads...                              errors that might have been revealed and corrected are not discovered. The future has to wait.                          Even when they are applied with ruthless thoroughness, central plans inevitably and eventually go FUBAR. No ‘workers’ paradise’ ever happens. The War on Drugs (or Poverty… or Crime… or Terror… or Cancer) ends in a defeat, not a victory. Unemployment does not go down. The ‘war to end war’ doesn’t end war. The Domino Theory falls; the dominoes don’t.
Or, if any of these grand programs ‘succeeds,’ it does so by undoing previous plans often at a cost that is far out of balance with the reward. World War II is an example of central planning that seemed to work. But the Allies were merely nullifying the efforts of more ambitious central planners in Germany and Japan.                         Generally, life on planet Earth is not so ‘rational’ that it lends itself to simpleminded, heavy-handed intervention by the na├»ve social engineer...                        
Large-scale central planning can be effective, but only by pulverizing the delicate fabric of evolved civilized life. It is a future that practically no one wants, because it means destroying the many different futures already in the works — marriages, businesses, babies, baptisms, hunting trips, shopping, investment, and all the other activities of normal life.                  Not all central planning produces calamities on that scale, of course. But all, to the extent they are effective, are repulsive. The more they achieve the planners’ goals, the more they interfere with private goals, and the more they retard or destroy the progress of the human race.                             Still, this view I am putting forth is hardly accepted wisdom.

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