Home > General Comment > A plea for common sense…

A plea for common sense…

If we might offer an observation:

The credit market is dying, but no one has the courage to pull the plug. This is the result not of too little credit – which could be fixed – but too much credit – which cannot be fixed – and certainly cannot be fixed by making more credit available.

Let it go…

We are seeing the late results not of economic failure, but of economic success – the transition of our human family from organization on the basis of scarcity, to organization on the basis of abundance. All the indicators formerly taken as predictors of the health of the economy have been turned on their head.

As such, all steps being taken to prolong the existing order will only make the transition more difficult and painful.

The important thing at this moment is to sweep the credit market aside: abrogate by law all debt obligations personal and public, foreign and domestic. The houses that were built with it will not disappear, neither will the factories and farms produced by it.

What will happen instead is that they will be saved from being plowed under as they were in the 1930s to stabilize prices – as the so-called toxic assets are being plowed under with this bailout plan.

This will cause massive jobs loss – let them go as well, and offset this by a radical reduction of working time. The age of abundance is not an age of work, but of leisure and individuals self-development of our human capacities.

Work is necessary in the age of scarcity, but in the age of abundance, it becomes an optional exercise of men and women free to express themselves in productive or non-productive pursuits as they choose.

This will also cause the bankruptcy of governments around the world – a result few would mourn as they have been the chief tormentors – both figuratively and literally – of mankind during the entirety of recorded human history. In its place will be the voluntary association of human beings and a society based on mutual respect.

We have no illusion, such changes as described above will be seen as insane by every thinking person who reads this. Yet, that does not matter. These changes will be voluntarily adopted by us, or they will be imposed at great cost upon us through our own actions.

We have left Kansas, people.

Deal with it.

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  1. sandysays1
    October 3, 2008 at 9:58 am

    Fox News won’t cover this subject. Ask them why at: yourcomments@foxnews.com There is no guarantee or provision in the bailout to force the firms to use the funds they receive to extend credit to the US economy! We have to defeat this disastrous legislation. Check my site SandySays1.wordpress.com
    for some tools to fight it.

  2. RayInAZ
    October 3, 2008 at 11:18 am

    The current financial “crisis” requires a number of “leaps of faith”.

    Leap of faith #1: The United States has a financial problem.

    Leap #2: The free market can not, and will not, fix the problem. (Over 231 US economists think the market can and will fix this problem
    http://faculty.chicagogsb.edu/john.cochrane/research/Papers/mortgage_protest.htm )

    Leap #3: The financial problem is so serious that the sky will fall if someone doesn’t do something significant and quickly.

    Leap #4: The government has a solution, this is the same government that 1) didn’t see it coming or 2) did see if coming and didn’t do anything until it reached “crisis” mode.

    Leap #5: The government understands the problem so well that they’ve developed a solution that will work. The “fix” is being put together by the same folks that want us to take “Leap #4”.

    Leap #6: The US will not be in the same situation 3-4 years from now.

    Leap #7: The people in the US are not supposed to look for people to blame, but fix the problem and hope for the best.

    Leap #8 (for elected officials): Elected folks have to hope the plan will work (many leaps of faith for them), or if it doesn’t work the people that elected them will forget how they voted on this topic.

    Is it any wonder so many Republicans and Democrats voted against the original bill. It has been reported that 20 Democrats on Barney Franks banking committee voted against the bill (I’ve not been able to verify this with my research).

  3. charley2u
    October 3, 2008 at 12:32 pm

    The root of this problem is the insolvency of the United States itself, and its dependence on foreign inflows of capital to keep it afloat. This will not change with the outcome of the House vote on this bill.

    Instead what will happen is the diversion of available resources from addressing the fundamental root of the problem to compounding it. As we write central banks are moving their assets to the least risky instruments available, as Washington steps in to fill the gap by buying, or propping up, the most toxic assets in their place.

    Meanwhile, no apparent attention is being given to picking up the pieces after the great unraveling. Collapse is merely a matter of time – if not today, next week, or next year, but it is inevitable.

    It is a characteristic of our time that what should be welcomed – the end of economic necessity – is instead being greeted with great fear and chaos.

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