You can't solve a problem with the same thinking that created it. Or words to that effect-Einstein. Translation: The beatings will continue until morale improves.
The more accurate translation is that the same old illusions and delusions of broken thinking will never work until corrected and replaced with better thinking.
Another excellent piece. I especially appreciate that it consistently brings the Austrian perspective into discussions that are otherwise dominated by mainstream thinking.
The article reminded me of what Ludwig von Mises wrote in The Theory of Money and Credit (1912). The Austrian argument is that a credit-fueled boom can ultimately end only in one of two ways: either credit expansion is allowed to stop, in which case the recession liquidates the malinvestments created by artificially low interest rates, or policymakers continue expanding credit, postponing the adjustment while fueling inflationary and financial distortions.
Given today's extraordinarily high debt-to-GDP ratios, the first option has become politically toxic. Allowing interest rates to remain high long enough for markets to clear would dramatically increase debt-servicing costs for governments and likely trigger a painful recession. That makes genuine monetary restraint politically close to suicidal, which helps explain why policymakers almost always choose further accommodation instead.
The conclusion follows naturally: if the diagnosis hasn't changed, neither has the prescription.
If "the road serfdom " had been required reading in universities the past 50 years it's not likely that we would be seeing the rise of socialists and collectivist bigger government policies.
I am a strong believer in Austian Econ, Mises. You have accurately described the Gloom and Doom of the same old playbooks with the same players, whose thinking is, again, on the wrong path! Thank you for this brilliant commentary!
You can't solve a problem with the same thinking that created it. Or words to that effect-Einstein. Translation: The beatings will continue until morale improves.
The more accurate translation is that the same old illusions and delusions of broken thinking will never work until corrected and replaced with better thinking.
Here is another view of this same problem.
https://nofilterjustfacts.substack.com/p/jpmorgan-crypto-rails-control
Here is a comparison of this problem with the AI equivalent of the same problem.
https://nofilterjustfacts.substack.com/p/the-ministry-of-knowledge-how-encyclopedias
It seems that both of those articles blend well with this article.
Fix the broken thinking that doesn't work, without relying on the old broken thinking.
In summary... more parasites figuring out the most effective way to screw us all...
Another excellent piece. I especially appreciate that it consistently brings the Austrian perspective into discussions that are otherwise dominated by mainstream thinking.
The article reminded me of what Ludwig von Mises wrote in The Theory of Money and Credit (1912). The Austrian argument is that a credit-fueled boom can ultimately end only in one of two ways: either credit expansion is allowed to stop, in which case the recession liquidates the malinvestments created by artificially low interest rates, or policymakers continue expanding credit, postponing the adjustment while fueling inflationary and financial distortions.
Given today's extraordinarily high debt-to-GDP ratios, the first option has become politically toxic. Allowing interest rates to remain high long enough for markets to clear would dramatically increase debt-servicing costs for governments and likely trigger a painful recession. That makes genuine monetary restraint politically close to suicidal, which helps explain why policymakers almost always choose further accommodation instead.
The conclusion follows naturally: if the diagnosis hasn't changed, neither has the prescription.
If "the road serfdom " had been required reading in universities the past 50 years it's not likely that we would be seeing the rise of socialists and collectivist bigger government policies.
I am a strong believer in Austian Econ, Mises. You have accurately described the Gloom and Doom of the same old playbooks with the same players, whose thinking is, again, on the wrong path! Thank you for this brilliant commentary!