VANCOUVER, Canada ( Bullions Bull Canada) -- Definition of insanity: Performing the same act again and again, but expecting a different result.Obviously this is a colloquial "definition" of insanity. However, at the very least, it is an unequivocal demonstration of abject stupidity. Choosing to repeat failure is utterly indefensible behavior. What do we see with our politicians, bankers, economists, and media talking-heads? Bludgeon your way through all of the obfuscation; and we see that most of our economic problems are derived directly from two, failed policies: excessive money-printing and excessive debt. Yet what are the only two "solutions" for these problems being proposed by Western governments (and their apologists in the corporate media) today? Even more-extreme money-printing, and even more-extreme debt-creation. Putting out the fire with gasoline. Insanity. Has anyone actually paid attention to any of the so-called sovereign "bail-outs" that have occurred over the past five years? In every instance, it has involved lending vast sums of money to hopelessly insolvent governments. Supposed I owe $10,000, but require a "bail out" because I can't service this debt; and my rescuer lends me another $5,000. Please explain to me how I've been "bailed out" when I now owe $15,000? Obviously, if I couldn't make payments on my debt when I owed $10,000; it's mathematically impossible to do so when I now owe $15,000. I haven't been "bailed out." Instead, my bankruptcy has been temporarily delayed, but at the cost of a much larger bankruptcy down the road. This is precisely the opposite manner in which this is handled in the private sector. In the private sector (unless you're a Too Big To Fail bank), insolvency is resolved as quickly as possible -- with either a genuine "restructuring" (i.e., less debt rather than more) or a formal bankruptcy proceeding. It is universally understood that this is always the process that minimizes economic losses (and the misallocation of resources). But this is only the foundation for our insanity. On top of this initial layer of insanity; we have multiplied this quest for self-destruction with (arguably) even greater insanities. What is the only, possible valid reason for repeating a strategy that has already failed repeatedly? We conclude that "the plan" itself was valid, but the execution of that plan was faulty. In which case, the only sane course of action is to get different people (hopefully better) to attempt to execute the plan.
Now let's have a look at two more exponential trends:
- Repeating a failed strategy again and again. Employing the same failures to continue repeating that failure. Continuing to repeat the same Cycle of Failure even after we have conclusive, mathematical proof that this is now economic suicide.