Robert Gore at Straight Line Logic
“Nobody does. The crowd never thinks. People are only comfortable in a pack, and they’re most comfortable in one that’s racing off a cliff.”
The pack is racing off a cliff. There is a vast complex telling them that they are not, and that they won’t be hurt when they smash on the rocks below.
The Institutional Insanity Complex (IIC) wants to separate you from your mind. Now it talks openly of doing just that, inserting microchips and wiring in your brain, so that you can be reprogrammed to run with the crowd and never question it. Destroy the mind and you destroy humanity, but the IIC is more insane than those it would reprogram. It, too, shall be destroyed.
Debt must be repaid in a medium of exchange creditors trust, even when the debtor is a government. When debt increases, interest payments increase and the debt service burden compounds.
The interest rate necessary to secure credit often increases, adding to the burden. This is all happening in real time with Western governments and China.
The global economy floats on an ocean of debt, but unlike a real ocean, debt can shrink into a puddle almost instantaneously. When it can either not be repaid or repaid in a debased medium that creditors no longer trust, debtors and creditors alike go bankrupt, and multiple and conflicting claims are made on income streams and real assets.
Anyone who insists that present debt trends will lead to disaster is derided as reactionary, enslaved to outmoded ways of thinking. At least it’s thinking; obliviousness is not, Consequences have begun their inevitable cascade as interest rates rise and debt implodes.
Interest-rate sensitive industries like commercial real estate and banking have been the first to register the tremors from what will be an unprecedented financial earthquake.
Individuals, businesses, governments, and financial and derivative markets will tumble into an expanding fissure of global insolvency, illiquidity, and bankruptcy. Derivatives, the sum of which (measured in the quadrillions), is a double-digit multiple of global GDP, will live up to Warren Buffett’s appellation as “financial weapons of mass destruction.”
Obliviousness is one thing; taking actions that make the threats you’re ignoring even worse is insanity. Yet the IIC is spending money it doesn’t have on two wars—both of which could expand—and lobbying for a third (Iran) and fourth (Taiwan). There are no plans for negotiations for what would, among other salutary outcomes, staunch the financial bleed from the first two.
At home, the IIC ups the ante on the welfare state, inviting the whole world to partake in its already unaffordable benefits. Parts of the U.S., particularly in Democratic and gang-controlled (a redundancy) cities, are third-world enclaves that will continue to expand as third-world invitees flood in. The U.S. is fast becoming a third-world nation. Much of Europe is confronted with the same insanity, as its rulers have also put out the welcome mat for unaffordable migrants.
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