Jun

23

 What higher purpose is involved in all the news about Greece? How does it help the flexions? And how does it make man small? The answer must lie somewhere related to these last two.

Vince Fulco writes:

1) "Only Govt has the answers…"
2) The powers that be must deliver bad medicine (aka taxes) regardless of one's individual responsibility/frugality/discretion/smarts.
3) Overcomplication hides the truth as long as possible.
4) Suffering should be shared by the masses, prosperity obtained/retained by the sharpies

Jeff Rollert comments:

Actually, I see the flexions losing control. The public has tasted information freedom. They won't give it up easily. If Greece says "No" then their world changes rapidly. In my circle, the banks are "reaching out in the community" with ever greater frequency. Yet, consumers interest in their products is waning, except at the mid/mega cap level and gov't.

Dylan Distasio replies:

Jeff, can you elaborate on what you mean by information freedom, specifically in reference to the Greek situation?

I think some of the flexions have already profited in the first round of the Greek bailout by offloading bad debt to the ECB from the private sector when the ECB agreed to take it. I'm sure the other ones tied up with the IMF have a strong incentive to make the Greeks take their medicine.

I don't see how the Euro will survive this situation long term. It is very unlikely that Greece's economy is going to improve enough to meet these payments especially with a Draconian austerity plan. All this new bailout is doing is delaying what appears to be the inevitable. It might take another year or two for the pain to become insurmountable for the ECB and Germany/France, but they will eventually be forced to stop throwing good money after bad. The Euro is a flawed currency and there was no exit plan built into it. Greece, Spain, Portugal, and Ireland all need to devalue their currencies to one degree or another and are unable to. This situation is untenable.

  Things fall apart; the centre cannot hold;
   Mere anarchy is loosed upon the world,
   The blood-dimmed tide is loosed, and everywhere
   The ceremony of innocence is drowned;
   The best lack all conviction, while the worst
   Are full of passionate intensity.

Ralph Vince writes:

I agree with all except it "it could get real ugly part." Not that I don;t think the possibility exists, but my analysis leads me to believe we are on the brink of gigantic, unprecendented economic growth in America, that we are rounding the turn, given a trough of some sort around 2014-2015, things REALLY take off after that.

And as we saw with China post-Tiananmen, nothing quells the masses like economic growth.

This is an extremely sophisticated society that, in the main, on the level of the individual, produces, despite their governement. In the main, Americans are quite peaceful, self-organizing, self-reliant people when need be. The seeds of pare-to-the-bone efficiency are in place here like nowhere else, the technological advantages now in place and as-yet unfelt — a catalyst need only emerge. The amount of available capital, so desperate now for a return, will be the second great biblical flood.

Talk to the younger crowd, and you see they isotropically have little faith in the future, little appetite for risk. They aren;t going to all be right. We re in the prime years to push all of our chips as individuals out onto the table.

Stefan Jovanovich writes:

I share Ralph's optimism about future returns in what the old men with canes would have called "sound securities". If I had the energy for it and did not still live in California (aka PIGS West), I would be buying and managing as many small businesses as I did 20 and 30 years ago. I don't find the absence of "faith in the future" among young people to be as alarming as Ralph does; I don't remember even thinking about the future when I was 15 and 20 and 25, and the young people I now meet who "have a plan" are basing their projections on what they have learned in school, not their dreams. The others - who are properly cynical about school - understand that their fate is largely at the hands of the marketplace. But they are not scared. Quite the contrary. They seem to be far more comfortable with risk and uncertainty than my generation ever was and still is (we seemed to think we had the divine right to complain and receive whatever medications were available to escape from the pains of actual life.) I think intelligent young people now understand the difference between risk (doing potentially dangerous things that require skill and practice to avoid harm) and the arrogance that comes from ignorance. Extreme sports have never been more popular; but Lack's kids and others are sensible enough to wear helmets voluntarily. The kids are all right.


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