Saturday, April 16, 2011


1. POLITICS....A French philosopher (I don't recall his name) wrote a book about why democracies fail. He was spot on in his understanding that once the masses understand that they can vote themselves government largesse and rob the national treasury through their vote, it is only a matter of time before the fabric of their society collapses under its own weight. We are there now. There is no way any meaningful policy will be crafted that puts this nation on a path to sustainability because the interests that make the rules receive their position of authority from the people now totally dependent on the welfare state. I guarantee you that no senior will vote for anyone who advocates removing one dime of their entitlements. I guarantee you that no vote will be cast by anyone that in any way threatens the status quo of Wall Street and the F.I.R.E. economy. I assure you that no vote will ever get cast by any special interest group that is threatened with less from the government. In short, not one thing will get done, changed, modified or even move towards a rational model that reveres sustainability, soundness, prudence and rationality because every step in that direction requires restraint, conservation, sacrifice and loss of government entitlement because no one ever has or ever will vote for someone who promises to take something away from them. Period. It is a monumental waste of time to engage in political debate or to care one bit about politics in is all the same, there are no parties, there are no statesmen, there are no reforms, hope or change coming. None. Leaders get elected to make the rules by giving away not taking and the public is fully aware of this. Democracy fails now as the final pillage of whatever wealth remained accelerates.

ECONOMICS....We exist under a flawed, fraudulent, unsustainable, illusory economic model. It is based upon the economics of "more" which is a mathematical impossibility. Our yardstick of prosperity as measured by GDP is an exponential function meaning that every percentage increase in GDP is an increase upon an increase not from some static baseline. 3% GDP this year is not 3% more than some benchmark, it is 3% of the previous percentage growth rate. It is a compound function meaning that it goes parabolic at some point. There is nothing in nature that grows at a compound rate. It is not possible. Bacteria in a petri dish grow exponentially for a time, doubling and then doubling again and yet again until they consume the entire growth medium and they all die. Economics is no different. A system that depends upon compounding "growth" will, without question, consume its entire "growth medium" and eventually die. It is a fact of nature that cannot be repealed.

Take China for example...heralded as an economic miracle as measured by its 10% GDP "growth" rate. Using the rule of "72" you know that a doubling of output of all goods and services at this "growth" rate will take less than 7 years. This means that China will be consuming twice the coal, oil, timber, minerals and all other resources in 7 years that it does now. You tell me what the planet will look like with 2 trillion tons of coal being burned and double the number of internal combustion engines purring along twice as many paved miles. Add India, the rest of the BRIC nations, a few billion from the 3d world all aspiring to live an American lifestyle and tell me what the resulting prices of commodities will be and the toll on the planet we all inhabit. Bacteria in a petri dish. Unsustainable consumption, unsustainable economic model, unsustainable demand on limited finite resources and yet this is the model pursued and aspired to with no regard what so ever for the ultimate consequences. Fail. Epic fail. Permanent fail.

CATCH 22... It is clear that the path forward cannot be the one we are currently on which is the one that led us to where we are now. Only a mindless fool could be so blind as to deny this. Yet, the obvious directional change is equally impossible. You cannot deny billions of people aspiring to your lifestyle. You cannot command that the have nots remain in their huts. You cannot decree that all of civilization live the life of the Amish tomorrow. You cannot stop the economics of "more" because that puts billions of people who make the mountains of plastic crap that fills our incinerators and landfills and trophy homes instantly unemployed. The second you halt the exploitation of the planet and the production of unsustainable practices and useless junk, the world plunges into depression. It is bacteria exponentially dependent upon consumption of its growth medium to sustain itself racing towards the edge of the dish and exhaustion of that which gives it life. There is no fix. There is none politically, none physically, none economically. It is a catch 22 where no matter which path you choose the end is the same. Austerity breeds more poverty, money printing breeds inflation leading to hyperinflation, doing nothing allows the same degradation to continue until it grinds to a halt. There is no fix. It is all in your dreams and imagination or fantasy that there is. There is no fix because there can't be one when the machine is designed to self destruct. The blueprint is flawed so the machine is flawed and the operators of it will not change the design as it would be in opposition to your popular will.

The die is cast lads. You can look out your window and see snow and claim there is no global warming. You can view the planet while staring at your living room. You can delude yourself with false hope in a political machine that is homogenous and a total prisoner to other wills. You can see what you want to see and dismiss the rest. Won't change a thing. Nature doesn't care what you see or think nor does the laws of mathematics. There is no fix. Never was, isn't now and never will be.


  1. Hey PUDSHAFT, are you ever going to be back on Yahoo Finance board?