November 9, 2007

Out of Control?

Like all systems, our financial system, once thrown off balance, proceeds exponentially, not linearly. Once the balance exceeds the damping factors, which are typically all controllable by the state economy dictators, it's no longer just oscillation, or in econ terms "recession", "depression" or any other cyclical phenomena caused by the nature of masturbating with the typical government inputs like the price of money, bond issues, yields, capitalization, inflation, employment, market tax and laws.

Once it goes, it goes, just like any chain reaction. And from there on, the system either converges to some steady state point, which could easily be the re-assessment of the west's collective worth and devaluation of its money accordingly or it diverges going completely off the scale.



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