Financial Intervention - The Monkey and The Fish
Currencies / Fiat Currency Sep 14, 2016 - 03:12 AM GMT“Kindly let me help you or you’ll drown, said the monkey to the fish as he placed him safely up the tree.” – Unknown
The financial system (mistaken for the economy) is so bloated with risk that any number of events could trigger an explosion that would reach much further than anyone could imagine – causing irreparable damage.
Because of the size and the massive dependence on the institutions (who have evolved like a cancer from big finance), the resulting carnage will reach out much further than the primary institutions.
The reason these monsters are too big to fail is because without them everything stops –food distribution, the flow of credit, and the systems that support that.
Most mid to large size communities are days away from complete breakdown in the case of serious financial market interruption or panic.
Deflation is the natural tendency or force that the monetary powers have been fighting for over 100 years. Everywhere you look, there is evidence that the underlying economy “wants to”, “needs to”, “must” desperately correct. The high priests of finance will do EVERYTHING in their power to prevent nature from running it’s course.
Appearances can be altered. Hidden below the derivatives, propaganda and the rigged numbers lie trillions of unfunded liabilities coming due in now.
Deflation and inflation in the context of modern monetary madness are intertwined in the fabric forced legal tender fiat.
How could the response to the next crisis be any different than the last few?
Allowing the expansion of free and easy money to go on for so long makes the system too fragile to withstand or recover from the inevitable shock that occurs when the plug is pulled.
Maybe they will come up with another euphemism for money printing?
Artificial intervention is killing the patient.
The system remains on life support while the institutions and their bureaucracy insist on helping, despite it all.
Yet, signs of stress are everywhere. The patient needs to be let go.
The true irony in all of this is that when the patient is on the floor bleeding, there is nothing wrong with intervention.
If the monkey were to find the fish in the tree and gently place it back in the water, that would be fine.
But the monetary powers that be are attempting the keep the fish alive while in the tree at all costs - no matter the spread of suffering for the most vulnerable.
Investors who know better see the proverbial writing on the wall, accepting that what underlies this (monetary) medicine is a failed precept.
Fiat money – currency without backing – allows for a massive expansion of credit money that fuels finance, spilling over and further distorting politics and the culture that goes along with it.
No one wants to be the one who pulls the plug.
But in death, there is rebirth; the natural order will come about anyway.
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By Dr. Jeff Lewis
Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com
Copyright © 2015 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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