‘Impossible’ & ‘Inevitable’ – The Only 2 Solutions As The Status Quo Crumbles

Monday, October 24, 2016
By Paul Martin

by Charles Hugh-Smith via OfTwoMinds blog,
ZeroHedge.com
Oct 24, 2016

Two charts illustrate Why Our Status Quo Failed and Is Beyond Reform: this chart of the S-Curve of financialization, leverage, debt, central planning, regulatory capture and globalization–that is, the engines of modern “growth”–depicts the inevitable stagnation and decline of these dynamics as overcapacity, debt saturation and diminishing returns take hold.

This chart illustrates the status quo’s insistence on doing more of what has failed spectacularly: since all this worked in the boost phase, the central planning Cargo Cult’s “leadership” is convinced it will all work magically again, if only we do more of it.

Alas, this is magical thinking. One might as well paint radio dials on rocks and expect the rock to magically turn into a functioning radio.

The chart of the Seneca Cliff illustrates how the S-curve of “growth” can continue expanding even as the foundation weakens. As the foundations of real growth weaken– productivity, collateral, social mobility, etc.–the system become increasingly fragile and brittle. But this fragility is masked by the appearance of stability until a crisis cracks it wide open.

Normalcy crumbles into instability, and people and systems accustomed to stable supply chains and political stability struggle to maintain their grip on income streams and resources as abundance slips into scarcity and dependence on central planning becomes a liability of learned helplessness.

The Rest…HERE

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