Does anyone else have the feeling that things are not just unraveling, but that the unraveling is gathering speed?
We can discern diminishing returns in Federal Reserve/central bank interventions, as the initial rounds of quantitative easing pushed stock and bond markets higher for years at a time, while the following interventions generated lower returns.
- Crisis intervention as policy = bad decision-making
- Why politics will defer dealing with the big problems, even though that will make them even bigger
- Why more taxes are in your future
- The criticality of increasing our alternatives -- without our agitation, the government will appropriate from us while claiming "there's no other option"
If you have not yet read Part 1: Things Are Unraveling At An Accelerating Rate available free to all readers, please click here to read it first.
In Part 1, we examined how the dynamic of lowering interest rates to boost debt-based consumption inevitably leads to debt saturation and lower consumption. It also generates instability and rising systemic risks. As the returns on the central bank tricks of lowering interest rates and encouraging borrowing diminish, the resulting unraveling is speeding up.
There is another core dynamic at work: TINA, there is no alternative.When There Is No Choice, Bad Policies Abound
In this week’s podcast with Chris (What To Expect From The Fourth Turning We're Now In), guest Neil Howe noted that crisis intervention is the result of authorities “feeling they had no other choice,” a.k.a. TINA. In this frame of mind, the eventual consequences of crisis intervention policies are ignored in the pressing desperation to make the financial and political pain of crisis go away.
As policymakers around the world soon discovered, TINA policies are habit-forming. Since they had no choice but to bail out the parasitic, dysfunctional banking sector, and goose debt-based consumption with cash for clunkers, mass purchases of mortgages, etc., they also had no choice but to continue these interventions, lest the desired result—expanding consumption and a rising stock market—falter.
Substituting crisis intervention for long-term constructive policies leads to bad policies, for the simple reason that...
Daily Digest 3/18 - Puerto Rico's Bond Sale Delayed, CA Drought Restrictions Coming To Restaurants, Skiing
- Broward judges toss 24,000 red-light camera tickets totaling millions
- California public workers may be at risk of losing promised pensions
- Puerto Rico's $2.95 bln bond sale delayed until early May
- Debunking $1.4 Trillion Europe Debt Myth in Post-Heta Age
- Venezuela puts debt service before food imports as cash dries up
- ECB's balance sheet expands as it begins stimulus programme
- BOJ Keeps Record Stimulus With Inflation Set to Stall
- Brazil’s Economy Contracted 0.11% in January, Central Bank Says
- Sierra-at-Tahoe suspends skiing as drought takes toll
- New California Drought Restrictions Coming To Restaurants, Hotels, As Home Rules Get Stricter
Stuart and Cedar Anderson's Flow hive promises to revolutionize beekeeping. Credit: beefarm.ru
A great demonstration video on how to use the energy from batteries to create fire without matches. Could be very useful information to have in an emergency situation.
Image: Amelia Bates for Grist
There’s a growing awareness that the real sharing economy has little to do with wealth-concentrating Silicon Valley startups. It has more to do with communities figuring out ways to make sure everyone's needs are met by sharing, putting idle resources to work, and creating an economy that revolves around joyful, sustainable living rather than endless growth.
- "Colossal Defeat" For Obama As Australia Joins China's Regional Bank
- The Undebtors: Sworn Enemies of the Vampires of Debt
- CSIS helped government prepare for expected Northern Gateway protests
- Tax Cuts Still Don’t Pay for Themselves
- The Rollercoaster Ride of the Nasdaq: Big Drop Ahead?
- After Ebola, measles may follow
- Fears of Violence Against Western Oil Workers In Saudi Arabia
- U.S. Oil Prices Fall to Six-Year Low
Top image: The shared cheese cellar at Jasper Hill Farm. Article and image cross-posted from Yes! Magazine. Authored by Eban Goodstein and Robin Hahnel.
- Boston University Economist Calls Out Congress on Enormous Fiscal Gap
- Vladimir Putin Returns After Absence and Dismisses Rumors
- Crackdown in a Detroit Stripped of Metal Parts
- These Tiny Bubbles May Save the Planet
- Battered by Hurricane Sandy, Bought by New York and for Sale for a Song
- The Truth About U.S. Crude Storage
- Four years after Fukushima, just one man lives in the exclusion zone – to look after the animals
- Cyclone Pam: Vanuatu president says climate change contributed to death and destruction
This article was authored by Olivia LaVecchia and produced by the Institute for Local Self-Reliance, as part of its Community-Scaled Economy Initiative, which produces research and partners with a range of allies to implement public policies that curb economic consolidation and strengthen locally owned enterprise. Article and images cross-posted from Yes! Magazine.
Fourth turnings are characterized by a growing demand for social order, yet supply of it remains weak. The emergence of the surveillance state, a perpetual war machine, increased intervention in the markets by the central planners, greater government control of critical systems like health care and the Internet -- all of these are classic signs that we are well into a fourth turning now.
- Wage Inflation: Is Pay Actually Rising?
- Is It Fair to Ask the Internet to Pay Your Hospital Bill?
- Is Your Smartphone Making You Dumb?
- C.I.A. Cash Ended Up in Coffers of Al Qaeda
- The Incredible Turnaround of the U.S. Dollar Explained
- Japan space scientists make wireless energy breakthrough
- Our Rising Oceans
- Wind has big impact in shaping arid South American canyons
- Americans Prefer Their Solutions Locally Sourced
- Watch Four Years of Oil Drilling Collapse in Seconds
- Lessons of History, Part 1: Not a Mention of Money
- This is why it’s impossible for the Kremlin to lie about Putin’s weird disappearance
- Oil Prices Drop as Production Hums Along Despite a Brimming Supply
- California has about one year of water left. Will you ration now?
- Emissions by Makers of Energy Level Off
- Arctic Melt Brings More Persistent Heat Waves to U.S., Europe
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Learn how to create your own local offline copy of Wikipedia using XOWA. XOWA is a free, open-source application that lets you download Wikipedia to your computer. Access all of Wikipedia offline -- without an internet connection!
A list of great uses for aluminum foil and why you should have an extra roll on hand as part of your preps.
In this week's Off the Cuff podcast, Chris and John Rubino discuss:
- The Downside Of The Strong Dollar
- Why the US is losing the currency war
- The Endgame Approaches
- What to expect when every country is handing out free money
- Time To Sell
- Dumb money is buying while smart money exits
- The Wisdom Of Gold
- Will likely end up being the only sane option left