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Daniel Kaesler | Dreamstime.com

Why Our Central Planners Are Breeding Failure

Mistaking illusion for lasting success
Thursday, January 15, 2015, 11:50 AM

As counter-intuitive as it may sound, success rather reliably leads to failure and destabilization.

In the macro-economic arena, I think it highly likely that the monetary and fiscal policies of the past six years that are conventionally viewed as successful will lead to spectacular political and financial failures in 2015 and 2016. » Read more

Insider

Wikimedia (public domain image)

The 6 Reasons The Next Economic Rescue Will Fail

Why the current unstable 'recovery' must topple
Thursday, January 15, 2015, 11:48 AM

Executive Summary

  • The 6 Factors
    • Rising inequality
    • Reversion to the mean
    • Cost overages
    • Diminishing returns
    • Misleading measurement
    • Expertise mismatch
  • Why the 'success' of the Federal Reserve and other world central banks is ultimately dooming them to failure

If you have not yet read Why Our Central Planners Are Breeding Failure available free to all readers, please click here to read it first.

In Part 1, we examined a variety of reasons why the apparent success of Keynesian monetary and fiscal policy may be transitional and brief rather than permanent.

Here in Part 2, we delve into the six other dynamics that make success destabilizing.

Rising Inequality—Perceived and Real

The highly touted “recovery” has been highly uneven in its distribution. The benefits of rising income and wealth have flowed disproportionately to the top 5%, 1% and even 1/10th of 1%.  Those who didn't make it onto the limited-seating Recovery Bus feel the gap between the prospects and wealth of the top tier and their own wealth and prospects widening. Indeed, psychological studies find that we assess our wealth and social position not by our actual material prosperity, but by the narrowing or widening of the perceived wealth gap with our peers.

This is precisely the situation in the U.S. and China. Both economies are supposedly expanding smartly, but the gains are concentrated in a relative few hands; the Rising Prosperity Bus has few seats.  The vast majority perceive themselves as being left behind, and that is highly... » Read more

Daily Digest

Image by mcconnell.franklin, Flickr Creative Commons

Daily Digest 6/3 - A Fight Over Water, In Search of a New Definition of Success

Monday, June 3, 2013, 11:45 AM
  • Beyond Money and Power (and Stress and Burnout): In Search of a New Definition of Success
  • Back to the Land is Back in Vogue, and It Could Make You Happier
  • The Greatest Fundamental Reason to own Precious Metals
  • A Fight Over Water, and to Save a Way of Life
  • China Is Reaping Biggest Benefits of Iraq Oil Boom
  • If Oil Prices Rise the EU May not Survive
  • Natural Gas Trucking: A Made-in-B.C. Success Story