….America is in better shape than Europe and Japan.\u00a0 We have good demographics, sound fundamentals, relatively easily solved problems, and no powerful enemies.\u00a0 Why the constant sense of crisis?\u00a0 QE2, hyperinflation, climate armageddon, Obama the socialist, AIDS, alar on apples, jihadists, debt, swine flu –\u00a0a constant drumroll of doom, explained by Peter Moore in “The Crisis Crisis” (Playboy<\/em>, March 1987).\u00a0\u00a0 Answer:\u00a0 elites govern a weak people by exploiting their fears.\u00a0 For example, look at the “government is broke” panic.<\/strong><\/p>\n
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- The\u00a0<\/strong>Federal government’s net debt<\/strong><\/a>\u00a0is only 2\/3 of GDP, well below the 100% of GDP “red line” (that Italy reached many years ago).<\/strong><\/li>\n
- The short-term deficit is mostly\u00a0the result of\u00a0the recession.\u00a0 The medium-term deficit results from the Bush tax cuts.<\/strong><\/li>\n
- Social security’s funding gap is\u00a0<\/strong>small vs. GDP<\/strong><\/a>\u00a0and easily fixed.<\/strong><\/li>\n
- The\u00a0massive funding gap is mostly Medicare, easily fixed by adopting features from the mixed public-private systems in Europe.<\/strong><\/li>\n<\/ul>\n
Panic pushes\u00a0Americans to allow cuts to popular social services plus\u00a0increased and highly regressive taxes.\u00a0 No matter who wins, after the 2012\u00a0election our representatives will implement\u00a0the\u00a0necessary policy changes:\u00a0 raising taxes, cutting expenditures, rebuilding our infrastructure, and\u00a0beginning the long process of reforming health care.\u00a0 It will be another morning in America.\u00a0 There is no crippling polarization, just distracting noise masking a consensus between both parties about the key points of economic and foreign policy.<\/strong><\/p>\n
We do not see this long-standing pattern (see\u00a0<\/strong>the previous post<\/strong><\/a>\u00a0for details) because\u00a0our collective\u00a0OODA loop is broken (see\u00a0<\/strong>section 6 here<\/strong><\/a>).\u00a0 That\u00a0makes us easier to lead.\u00a0 Relying on wealth-based elites to run the country has a cost.\u00a0 They take a large share of the pie; we take a small slice….<\/strong><\/p><\/blockquote>\n
Global Guerrillas –JOURNAL: Global Financial Cancer<\/a><\/strong><\/p>\n
….A couple of years ago, I wrote that the underlying structure of the global financial system was a “bow-tie.” \u00a0Here’s <\/strong>what I said<\/strong><\/a>\u00a0(it’s worth going back and reading the entire article and this <\/strong>paper on bow-ties<\/strong><\/a> from John Doyle at Caltech):<\/strong><\/p>\n
If we look at this new global system from a distance, its architecture is something called a bow-tie. This is a universal control system architecture that underlies complex systems from the Internet to cell metabolism.<\/strong><\/p>\n