Our Inevitable Collapse: We Can't Save a Fragile Economy With Bailouts That Increase Fragility | WHAT REALLY HAPPENED X-Frame-Options: DENY X-Frame-Options: SAMEORIGIN

Our Inevitable Collapse: We Can't Save a Fragile Economy With Bailouts That Increase Fragility

By bailing out the sources of systemic fragility with trillions of dollars, the Fed has shifted the risk to the entire financial system and the nation's currency.

That the global economy is fragile is painfully obvious to all. What is less obvious is the bailouts intended to "save" the fragile economy actively increase its fragility, setting up an inevitable collapse of the entire precarious system.

Systems that are highly centralized, i.e. dependent on a handful of nodes that are each points of failure--are intrinsically fragile and prone to collapse. Put another way, systems in which all the critical nodes are tightly bound are prone to domino-like cascades of failure as any one point of failure quickly disrupts every other critical node that is bound to it.

Ours is an economy in which capital, wealth, power and control are concentrated in a few nodes of the network/ecosystem we call "the economy." A handful of corporations own the vast majority of the media, a handful of banks control most of the lending and capital, a handful of hospital chains, pharmaceutical companies and insurers control healthcare, and so on.

Control of digital technologies is even more concentrated, in virtual monopolies: Google for search and Youtube, etc. and Facebook / Instagram and Twitter for social media, Microsoft and Apple for operating systems and services derived from OS, and so on.

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