If We Can’t Be Honest, No Solution Is Possible
by Charles Hugh-Smith via OfTwoMinds blog,
ZeroHedge.com
Jul 22, 2016
Dishonesty wasn’t really a solution, it was simply easier.
Scale-invariant refers to a dynamic that functions equally well on the micro-level as it does on the macro-level. (The scientific definition is: “scale invariance is a feature of objects or laws that do not change if scales of length, energy, or other variables, are multiplied by a common factor.”)
Accounting is scale-invariant. If a household has fewer assets than liabilities, it is insolvent. If a $10 billion company has fewer assets than liabilities, it is insolvent.
Human emotions also have scale-invariant features, as we all share the same wetware / genetic heritage / naturally selected default settings and capabilities.
The notion that the ideal solution to a problem is to hide it by ignoring it and refusing to discuss it is scale-invariant. “The elephant in the room” in a marriage is a problem that one or both partners fear might blow up the relationship, and neither is willing to take that risk.
In a corporation (for example, in Nokia before it collapsed), mid-level managers hide problems for fear of being fired or demoted.
In national governments and central banks, major financial/ economic problems are glossed over with soothing public relations and rigged statistics.
We all know this “solution” (hiding a problem and refusing to acknowledge it directly) eventually blows up the relationship, the corporation or the national economy.
Dishonesty wasn’t really a solution, it was simply easier: directly acknowledging a serious problem is difficult for many reasons. Nobody likes to acknowledge failure and/or powerlessness, and nobody likes to sacrifice or ask others to sacrifice.
So we ignore the problem, gloss it over, mask it, and refuse to honestly confront the unwelcome realities.
Kyle Bass has consistently maintained that China’s ballooning debt has reached the point that the government, despite its claims to the contrary, can no longer control the inevitable implosion of China’s $3 trillion in corporate debt and trillions in other private-sector debt.
The Rest…HERE
