Situation report: global economy, December 2008
Viewpoints about the crisis have coalesced into three camps.
1. The “normal global recession” camp. Just another cycle, US GDP down perhaps -3% peak to trough.
2. The “worst recession since the 1930’s” camp. A bad scene, but the world’s governments are now on the job. Fiscal and monetary policy will do the job, again. US GDP down 5% or so. See this example.
3. The “worse than worst” scenario. Government policy might not work — or it might work but only with long lags. Uncertainty rules; the outcome is unknowable.
I don’t give a damn what opinions have coalesced around as “possible” outcomes.
There is only one outcome: Utter collapse and misery for hundreds and hundreds of millions.
How many of you know the fraud is on a worldwide scale of a quadrillion dollars?
How many of you yet understand that fraud was the everyday way business was being done?
How many of you think we’ll be a placid population while undergoing massive starvation and panic?
Let me try to explain the situation in a manner I think everyone can understand.
Your Windows XP PC has been running for several hours. It’s really a unit a few years old, but that’s what you have to deal with. Firefox has been running because you’ve been on the Internet all that time.
Our economic system is old. Every new fraud has been a new browser tab. The system has frozen. It is going to crash.
Now, when you reach that point with your PC, what do you do? Do you just take the PC and throw it away? Of course not.
With XP and Firefox there are two choices:
1) Bring up Task Manager and kill the Firefox application. But that doesn’t necessarily free up fragmented RAM, so things could still run slow when Firefox is launched again.
2) You kill Firefox via Task Manager and then reboot the PC.
You’re still using the same system, but now everything has a fresh start.
This is what needs to be done with the entire worldwide economic system from all the way at the very bottom to the top.
Worldwide economic reboot.
The only way that can happen is for every government to agree that we’ve all screwed up. The only way out is a synchronized reboot of the system.
I call that 777: The total forgiveness of all debts, period.
Adam Smith was wrong.
And we are not not not going to have worldwide suffering to prove a goddammed point of ideology.
Ideas are created to serve people.
We do not create ideas to enslave us.
I am not offering this up as a suggestion, either.
I am telling you that every single one of you is going to recognize this as the only way out of this mess, period. It’s inevitable, it’s unavoidable, and it’s the only only only thing that will work.
Everyone is going to left holding a bag of shit at the end, one way or the other, from very rich to very poor.
But our nations will be intact, our infrastructure will be intact, the flows of information will remain intact, our populations will not be sick and dying and frustrated, and the massive release of productive energy this will create will be unprecedented in all of human history.
I pray you all do so before the chaos really begins and gets out of hand.