!

"
"
!
"#$"#$%#&'!#(!()*!+#(*!
$*'($,-(,$%&+!()*!./$01!
!
!"#$%&'()*+,-$*./
)(
0*.122*
*
2

!
"#$"#$%#&'!#(!()*!+#(*!
$*'($,-(,$%&+!()*!./$01!
!"#$%&'()*+,-$*./
)(
0*.122*
!"#$ Lhe world reserve currencv ls someLhlna LhaL obvlouslv Conaress does noL
comprehend. AbouL Lwo-Lhlrds of cenLral bank reserves are ln uS Lreasurv paper.
WhaL ls aolna on ln WashlnaLon rlahL now demonsLraLes Lhe LoLal lack of
comprehenslon of whaL ls Lhe role of Lhe dollar (!"#"$%&#$'(!)&%$%*$+,!--$.$)*(/). 1hls
also lllusLraLes mv polnL LhaL Lhe world cannoL afford Lhe dollar Lo be Lhe reserve
currencv anvmore because we are plaaued bv lnLernal pollLlcal confllcL wlLh no real
hope ln slahL. 1hls ls no wav Lo lead Lhe world. AL rlnceLon Lconomlcs, belna
mulLlnaLlonal corporaLe advlsor, we aoL called lnLo so manv dlsasLers lL was
becomlna second haL. WhaL ls aolna on ln WashlnaLon now seems Lo be a sLranae
secreL rlLual cenLered on a mvsLlc sulclde culL or a ploL for Lhe Manchurlan CandldaLe.
uesplLe all Lhe fancv corporaLe and aovernmenL sLrucLural manaaemenL maps showlna Lhere ls a nlce
perfecLlv neaL oraanlzaLlonal charL as Lo how Lhese enLlLles funcLlon, Lhe LruLh ls such maps are [usL for
show. ln pollLlcs, vou elecL a represenLaLlve and ln Lheorv he ls lndependenL and voLes onlv for vour
lnLeresL locallv. ln reallLv, he Lhen voLes pollcv llnes bv Lhe parLv of hls afflllaLlon or else he loses Lhelr
supporL. 1he acLual hlerarchal sLrucLure LhaL operaLes ls sLrlklna dlfferenL from Lhe LheoreLlcal model
porLraved. CorporaLelv, deparLmenLs compeLe aaalnsL each oLher and rarelv cooperaLe.
In these words lie the reason 1_we will never have deation....2_they will
hyperinate...3_they are a sum of their parts and much, much more...
politicians know
nothing of
currencies...and
the more I read
of MA, the more I
realize there is
not enough
competency to
coordinate an....
3

ln 1993 l aoL one of Lhose calls from aovernmenL asklna !"#$%&'($) *%($(+#%, Lo ball ouL a brokeraae
house owned bv a lrench bank LhaL was aolna bellv-up. 1he !apanese MlnlsLrv of llnance asked us Lo
rescue a lrench brokeraae house ln !apan LhaL was abouL number 17 naLlonallv ln underwrlLlna
!apanese corporaLe debL. WlLh each economlc crlsls, Lhe aovernmenL sLeps ln and Lrles Lo sure up Lhe
confldence wlLhln Lhe economv bv meralna falled lnsLlLuLlons wlLh ones LhaL aL leasL are llmplna alona.
ln Lhe case of !apan, Lhe forelan flrms were balllna ouL. 1he prlce of Lhe ven was aL lLs record hlah and
Lhere were no compeLlLors avallable. W
vou lnLend Lo sLav and do buslness Lhere. lL was unusual slnce we were noL a brokeraae house. 1he
opLlons for !apan slmplv ran ouL.

lL was Lhe shoLaun-weddlna of 1931 ln AusLrla beLween !"#$%&'()*&+,& and Lhe second laraesL bank, lLs
rlval, Lhe well-known -.$#)/"#$%&+)*&+,&. 1hls forced meraer made !"#$%&' ()*&+,& Lhe laraesL bank ln
AusLrla whose deposlLs had accounLed for nearlv half LhaL ln Lhe enLlre naLlon. 1he seeds for a alobal
conLaalon were Lhere ln Lhe books of !"#$%&' ()*&+,& for abouL $73 mllllon of lLs $230 mllllon balance
sheeL consLlLuLed forelan loans. 1hls meanL LhaL lf Lhls bank falled, Lhe rlpple effecL would ao bevond Lhe
borders of AusLrla. 1hls seL ln moLlon Lhe 0.1#"#%2)'3#4&'!"%*%*'.5'6786. CovernmenL lnLervenLlon ls noL
alwavs Lhe smarLesL course. 1hev Look a defaulL and leveraaed lL lnLo 30 of Lhe economv.
l had a fronL row seaL Lo see how corporaLe and aovernmenL sLrucLure falls everv Llme. We cauahL a
allmpse of Lhls afLer 911 when Lhev reallzed LhaL Lhe downslde Lo havlna so manv reaulaLorv aaencles
was Lhe facL LhaL Lhev compeLe and Lherefore dld noL share lnformaLlon. 1haL led Lo Lhe creaLlon of a
new super aaencv, Lhe 9.:#,+)$'0#/;"%&<'(2#)/<. 1he Amerlcan wav has alwavs been when ln doubL,
creaLe anoLher laver of aovernmenL. 1here ls never anv consolldaLlon for Lhls would noL merelv reduce
Lhe cosL of aovernmenL, buL lL [usL mlahL make lL even funcLlon for once.
l had advlsed Lhe Lop brokeraae houses around Lhe world and Lhe flrsL Lhlna LhaL sLruck me was noL onlv
how LranslenL Lhe brokers were, buL how Lhe deparLmenLs compeLed aaalnsL each oLher. 8elaLlonshlps
formed on a personal basls. 1hus, lf vou had a aood worklna relaLlonshlp wlLh a broker aL Merrlll Lvnch
and he moved Lo ueuLsche 8ank, he brouahL vou wlLh hlm. 1hls Lended Lo creaLe even more lsolaLlon
beLween deparLmenLs and Leams and lovalLv was noL alwavs Lo a flrm.
read and reread martin armstrong
dfsdfa
The nature of bailouts....
at rst the ts and starts are
calmed by ination....then the
tipping point arrives where
stability is acheived by sound
money???
4


Vertical Isolated Core!Structure
1hls sLrucLure creaLed an anomalv. lf Lhese personal relaLlonshlps had a sLraLealc advanLaae, Lhev were
noL abouL Lo share lL wlLh anoLher deparLmenL wlLhln Lhe same companv. 1he lnLernal sLrucLure of
corporaLlons as well as aovernmenL ls bv no means laLeral ascendlna Lhrouah a hlerarchv of
manaaemenL Lo Lhe Lop. lnsLead, vou have whaL l called Lhese !"#$%&'()%*+('$",)&+#" *$#-&$-#"* LhaL run
up Lo Lhe Lop wlLh vlrLuallv no lnLeracLlon amona oLher !"#$%&'() %*+('$",) &+#" *$#-&$-#"* (deparLmenLs
and Leams) LhaL are seen as compeLlLlon wlLhln Lhe same flrm slnce Lhev are all compeLlna aaalnsL each
oLher for Lhe aLLenLlon of Lhe manaaemenL (parenL) aL Lhe Lop. ln aovernmenL, we had more Lhan 10
aaencles all overlapplna Lhe morLaaae-banklna lndusLrv veL noL a slnale one had a clue as Lo whaL was
acLuallv Laklna place.
l Look Lhese observaLlons of how Lhe real sLrucLured world funcLlons and Lrled Lo puL Lhem Lo work
wlLhln our own companv. 1he downslde of havlna offlces around Lhe world lnsLanLlv creaLed
compeLlLlon amona Lhem klnd of llke amona Amerlcans Lhere ls a naLlonal ldenLlLv, buL lnLernallv ma[or
clLles compeLe wlLh Lhelr own sporLs Leams. lf a deal developed ln Slnaapore, dld lL belona Lo Pona kona
or AusLralla? Whose deal was lL? 1hen lf a cllenL ln SwlLzerland seL up a deal wlLh Lhe AusLralla offlce, dld
Lhls lnfrlnae upon Lhe domaln of Lhe London offlce? l saw Lhese lnLernal confllcLs amona cl
3

oraanlzaLlons and had ofLen been ln Lhe mlddle of Lhem. ClLlbank was ln Lrouble aaaln ln Lhe earlv
1990s. 1here was Lo be a ma[or aaLherlna of all lnLernaLlonal offlces ln Malavsla. 1he overseas offlces
wanLed me Lhere, pald for Lhe Llme, and booked Lhe Lravel arranaemenLs. 1he overseas offlces could see
Lhe problem easllv from an lnLernaLlonal perspecLlve buL new ?ork ob[ecLed lnslsLlna Lhev dld noL wanL
Lo alr Lhelr dlrLv laundrv ln fronL of an ouLslder. CompeLlLlon exlsLs aL everv level and Lhese companles
mav appear Lo be one ln name, buL Lhev are verv much operaLlna as lndependenL !"#$%&'()&*#"+.
Cur enLlre fuLure lavs hldden wlLhln Lhls murkv sLrucLure of how aovernmenL ls reallv oraanlzed. 1hls
!"#$%&'()%+*('$",)&*#" +$#-&$-#" exlsLs ln evervLhlna. 1he 8omans were aware of Lhls sLrucLure ln baLLle
where everv man fouahL for hlmself. 1he wav Lhe 8omans conquered Lhe wesLern world was Lo blnd
lndlvlduals lnLo aroups of Len men (&*.$-/"#.%-0) and 10 such aroups consLlLuLed a cenLurv (&".$-#%')
commanded bv a &".$-#%*.. Slx of Lhese &".$-#'" made a &*1*#$ commanded bv lLs +".%*#) &".$-#%*..
1en of Lhese &*1*#$+ consLlLuLed one lealon (("2%*) commanded bv Lhe ("2'$"!("#$%&'(). A aeneral would
Lhen command a aroup of lealons. 1he 8omans oraanlzed Lo defeaL Lhls !"#$%&'()%+*('$",)&*#" +$#-&$-#"
of lndependenL men screamlna and velllna.
1hese small aroups of Len men were bound ln lovalLv Lo each oLher and so Lhen ln baLLle each would
look afLer Lhe oLher. 1he barbarlans were easllv defeaLed because Lhev lacked sLrucLure ln oraanlzlna
Lhelr Lroops LhaL acLed lndependenLlv alven rlse Lo Lhelr downfall. WlLhln Lhls opposlna sLrucLure of
lsolaLed compeLlLlon wlLh Lhe same companv and a coordlnaLed Leam manaaemenL lavs Lhe verv
essence of human naLure. 1hls ls how we are as a specles and lL aoes back a verv lona Llme.
AL !"#$%&'($)*%($(+#%,, l Lrled a novel approach of followlna our own advlce. 1o avold followlna ln LhaL
same paLh l observed ln cllenLs, l resLrucLured Lhe lncenLlves. WhaL l esLabllshed was LhaL 10 of Lhe
aross proflLs of Lhe enLlre aroup were shared amona all offlces. 1hus, Lhev recelved Lhelr LradlLlonal
!"#$%&'()%+*('$",)&*#" +$#-&$-#")/*.-+3)buL Lhls was Lopped off wlLh a corporaLe bonus on all offlces. 1hls
ellmlnaLed Lhe personal relaLlonshlps where someone ln London would sooner deal wlLh a frlend aL
anoLher flrm Lhan wlLh a slsLer offlce ln LhaL realon. SLrucLurlna bonuses on a deparLmenL orlenLed basls
ln mv observaLlons over Lhe vears Lended Lo creaLe compeLlLlon raLher Lhan coordlnaLlon. Pere lavs a
murkv buL essenLlal nexL sLep ln our evoluLlon process lf we are aolna Lo Lake one sLep forward for
manklnd.
When Lhe 1987 Crash Look place, Lhe SLC blamed Lhe Cl1C and vlce versa. 1here have been manv
proposals Lo merae Lhe Lwo aaencles, buL Lhe prospecL of ellmlnaLlna aovernmenL workers alwavs
curLalls LhaL measure. neverLheless, Lhls ls preclselv Lhe problem underlvlna evervLhlna we Lrv Lo do. We
have Lo undersLand Lhls lnherenL Lendencv Lo reverL Lo a barbarlc sLaLe of !"#$%&'() %+*('$",) &*#"
+$#-&$-#"+)LhaL compeLe aaalnsL each oLher raLher Lhan funcLlon as a aroup. ln aovernmenL, Lhls mlsLake
has proved cosLlv, ls robblna us of our fuLure, and wlll desLrov Lhe enLlre sLrucLure [usL as Lhe barbarlans
were easllv defeaLed. 1hev onlv won when 8ome losL lLs sLrucLure 4.%$",)5")+$'.,))6%!%,",)5")7'((.
We are seelna Lhls ln Lhe pollLlcal baLLles now raalna. lL ls Lhls !"#$%&'()%+*('$",)&*#" +$#-&$-#" raLher Lhan
a look aL Lhe enLlre svsLem as a whole.
We presumed Lhere ls an acLual manaaemenL sLrucLure and LhaL Lhe auv aL Lhe Lop musL know
evervLhlna. 1hls leads Lo consplracv Lheorles where a collapse ls Lhen percelved Lo be Lhe dlvlne plan of
There is much
insight here
into how this is
going to play
out...
inefciency
6

some masLermlnd. lL could be worse. lL [usL mlahL be Lhe bumbllna anLlcs of Lhe Lhree sLooaes. 1he
problem we have !"#$%&'()%*+('$",)&+#" *$#-&$-#"* LhaL are Lhe nC8M
raLher Lhan Lhe rarlLv.
1here ls a Lendencv for people Lo assume LhaL evenLs musL be planned. no maLLer whaL crash LhaL has
ever Laken place, Lhere ls Lhe presumpLlon of a slnlsLer flaure musL be lurklna ln Lhe shadows llke some
Creek aod who en[ovs LormenLlna Lhe souls of men as a pasLlme. When Lhe 1929 Crash Look place,
Poover admlLLed recelvlna a phone call Lelllna hlm lL was a secreL ploL Lo shorL Lhe markeL Lo desLrov hls
Z W , &Z
admlnlsLraLlon. 1he ouLcome was Lhe creaLlon of Lhe SLC. nobodv was ever found. 1hev subpoenaed
evervbodv Lhev could aeL Lhelr hands on and puL oLhers on Lrlal who were Loo lll Lo be Lhere desLrovlna
Lhelr careers, repuLaLlon, and llves of Lhem and Lhelr famllles. PerberL Poover wroLe ln hls memolrs LhaL
Lhe lnqulslLlon was aL hls dlrecLlon.
!"#$%&'(#)*+)#)*'#,-../))''#0+$1,*#+1#/12'3)/&+)/-1#-4#5%+,)/,'3#-4#)*'#67,*+1&'8#9/)*#+#2/'9#)-#
0'&/30+)/-1#+1(#"#&+2'#)*'.#.$,*#/14-%.+)/-1#)-#3)+%)#-1:#"#9+3#'7)%'.'0;#0-+)*#)-#)+<'#)*/3#3)'5#
+3#9'#*+(#'1-$&*#=$%('13#)-#,+%%;#9/)*-$)#+00#(/3,-$%+&/1&#4/0)*#3$,*#'75-3$%'#'1)+/0'(:::#>*'%'#
9+3# 3-.'# (-$=)# +3# )-# )*'# ,-13)/)$)/-1+0/);# -4# )*'# ?'('%+0# ,-1)%-0# -4# )*'# 3)-,<# '7,*+1&':::@$)#
9*'1#+#%'5%'3'1)+)/2'#&-2'%1.'1)#=',-.'3#+1&'%'(8#/)#9/00#=$%1#(-91#)*'#=+%1#)-#&')#+#%+)#-$)#
-4#/):!#
1he new?orker ArLlcle .'$%+/'()0##'$%+/'($12)3%(()4(+1,)5('/67"%/)8/,)9:)%/)$;")<+&6? bv !ohn Cassldv
A!une 2, 2011), hlahllahLs Lo a larae exLenL Lhls assumpLlon LhaL 8lankfeln lled Lo Conaress and lL cenLers
around Lhls enLlre lssue of !"#$%&'()%*+('$",)&+#" *$#-&$-#"*. 1he premlse ls LhaL 8lankfeln Lold Conaress
'
securlLles. Pe admlLLed LhaL one deparLmenL of Lhe flrm ($;"):#+:)$#',%/=),"*6) dld aL varlous Llmes sell
shorL a loL of morLaaae bonds. noneLheless, 8lankfeln clalmed LhaL oLher parLs of Lhe flrm had a bla lona
poslLlon ln slmllar securlLles, and LhaL Lhe Lwo poslLlons laraelv offseL each oLher.
hLLp://www.newvorker.com/onllne/bloas/[ohncassldv/2011/06/aoldman-sachs-subpoena.hLml
l have noL been a fan of Coldman Sachs afLer whaL l belleve Lhev dld Lo !"#$%&'($)*%($(+#%,. l cerLalnlv
loaLh whaL l also belleve Lo have been Lhelr reverse Lake-over of aovernmenL Lo secure Lhe perfecL Lrade
and ellmlnaLe fuLure prosecuLlons. l belleve LhaL LhouahL crossed Lhelr mlnd when Lhe blaaer compeLlLor
Salomon 8roLhers aoL cauahL wlLh Lhelr hand ln Lhe cookle [ar manlpulaLlna Lhe uS 1reasurv AucLlons no
less Lalk abouL bla brass ones! 8uL l would be aullLv of dolna Lo Lhem whaL l belleve Lhev dld Lo me lf l
dld noL brlna Lhls lnherenL problem of Lhe !"#$%&'()%*+('$",)&+#" *$#-&$-#" Lo Lhe forefronL.
lL ls assumed LhaL Lhe man aL Lhe Lop knows evervLhlna and LhaL whaLever Lhe companv or aovernmenL,
Lhere ls some coherenL manaaemenL ln place. 1hls assumpLlon ls false. 8ecause of Lhls naLural Lendencv
for aroups Lo devolve lnLo Lhese !"#$%&'() %*+('$",) &+#" *$#-&$-#"*> anv ldea LhaL Lhere ls some arand
shared plan coordlnaLed across all deparLmenLs ls [usL nonsense. lL ls common LhaL Lwo deparLmenLs
wlll even have opposlLe poslLlons for Lhev do noL coordlnaLe wlLh each oLher, buL compeLe ln Lhelr own
self-lnLeresL. l am noL speaklna of [usL Coldman Sachs desplLe Lhelr bullshlL LhaL Lhev are smarLer Lhan
evervone else whlch l belleve ls Lhe code word for belna beLLer connecLed Lhan evervone else. 1hls ls an
lnherenL problem ln -.. corporaLlons and mosL lmporLanLlv, more so ln Lhe Amerlcan aovernmenL Lhan
7

even Lurope. 1he uSA has far Loo manv reaulaLorv aaencles and LhaL fraamenLs anv hope of real
manaaemenL. lL ensures chaos and confuslon and lncreases Lhe cosL of aovernmenL whlle prevenLlna
real pracLlcal manaaemenL. ln Lnaland, Lhere ls Lhe lSA and Lhe 8ank of Lnaland. Lven Lhere when [usL
Lwo auLhorlLles exlsLed, Lhere was no coordlnaLlon and reaulaLlon sLlll falled. 1here can !"#$ be !"%
aaencv overseelna one flnanclal svsLem. 1he more vou fraamenL Lhe overslahL, Lhe more mvoplc Lhe
perspecLlves Lo Lhe polnL vou can onlv see a Lree aL one Llme and never Lhe foresL. More fraamenLaLlon,
Lhe worse manaaemenL becomes noL beLLer.
now enLers Cvrus vance, !r., Lhe ManhaLLan u.A., who has subpoenaed Coldman Sachs. 1he whole
Amerlcan [usLlce svsLem ls far Loo corrupL for Lhese prosecuLors become famous bv Laklna down a bla
name. WlLhouL quesLlon, a successful prosecuLlon of 8lankfeln would launch vance on Lhe career paLh
of 8udolph Clullanl who made hls name on prosecuLlna !ohn CoLLl and Mlchael Mllken. 1he feds wlll noL
Louch Coldman for Lhe Cbama AdmlnlsLraLlon ls [usL anoLher !"#$%&'()&*#" of CovernmenL Sachs as are
Lhe 8epubllcans. 8uL Coldman ls also noL sLupld. 1hev hlred offlclals from new ?ork SLaLe as well and
Alan Cohen was Lhe son-ln-law of former uA 8oberL Morrls MoraenLhau who [usL reLlred ln 2009. 1he
llkellhood of Coldman aeLLlna crlmlnallv charaed ls sllm, buL lL ls a 1000 Llmes areaLer ln Lhe sLaLe Lhan lL
ls ln Lhe leds where Coldman appears Lo conLrol even Lhe courLs. 1he flrm would noL be charaed, buL
lndlvlduals could be or LhreaLened and forced Lo sLep down as was Lhe case wlLh Maurlce "Pank"
Creenbera of AlC bv former prosecuLor and Lhen Covernor LlloL SplLzer. l have alwavs personallv
belleved LhaL someone seL SplLzer aaalnsL AlC Lo remove Pank Creenbera and LhaL opened Lhe
floodaaLes for AlC Lo sLarL lssulna CuCs. When SplLzer LhouahL he had conquered Wall SLreeL, Lhen
came Lhe hooker scandal Lo remove hlm from offlce, all verv neaL and coordlnaLed. WlLhouL LhaL, lL
would have been dlfflculL Lo creaLe Lhe dearee of Lhe morLaaae bubble LhaL was achleved.
noneLheless, ^ leedlna a prosecuLor
lnformaLlon LhaL wlll launch hls career ls llke Lhrowlna a auard doa a Lhlck [ulce sLake whlle vou rob Lhe
[olnL. 8unnlna an oraanlzaLlon where Lhe person aL Lhe Lop acLuallv knows whaL ls Laklna place below
hlm aL everv level ls absurd. ?ou have Lo come Lo undersLand Lhese !"#$%&'()%+*('$",)&*#" +$#-&$-#"+ LhaL
are Lrulv lnherenL barbarlc Lrlbal oraanlzaLlons or lack of oraanlzaLlon. As a socleLv, we would llke Lo
Lhlnk LhaL we reLaln free wlll and Lhls ls LhaL splrlL of lndlvlduallLv. eople who lanore cvcles assume LhaL
Lo belleve ln Lhem means Lhev lose LhaL barbarlc freedom of lndlvlduallLv, whlch of course ls noL Lrue
slnce Lhere are alwavs Lwo opposlna forces LhaL creaLe Lhe cvcles (bulls v bears).
l doubL serlouslv LhaL 8lankfeln ls noL Lelllna Lhe LruLh. 1here were opposlLe poslLlons amona Lhe varlous
deparLmenLs mosL cerLalnlv. Powever, LhaL does noL neaaLe LhaL Coldman saw Lhe decllne as preLLv
much anv experlenced Lrader should have, and 8lankfeln was a Lrader, noL an accounLanL. lL does noL
mean LhaL sLlll some deparLmenLs were lona +%.%('# markeLs noL expecLlna a CCn1AClCn. Powever,
LhaL does noL Lransform lnLo a superlor knowledae of all Lhe ramlflcaLlons LhaL are seL ln moLlon bv a
chanae ln Lrend. Pad 8lankfeln drawn slmplv on hls Lradlna experlence, plcklna Lhe hlah should have
been a plece of cake, /-$)01'$)&'.")'2$"#0'#,)0'+)3*$.
1hls same !"#$%&'() %+*('$",) &*#" +$#-&$-#" means Lhere ls also no coordlnaLlon of lndlvldual aroups
bannlna LoaeLher ln some slnlsLer masLer plan Lo Lake-over Lhe world. lL ls clear LhaL removlna Pank
Creenbera from AlC sLrlpped lL of LhaL Lrader lnsLlncL leavlna Lhe flrsL run bv back-offlce schmucks who
t^:
ls bannlna LoaeLher Lo manlpulaLe a slnale Lrade. 8uL Lhe ldea of some arand masLer plan alves (1) far
Loo much credlL Lo lndlvldual knowledae, and (2) dlmlnlshes Lhe complexlLv of Lhe economv as a whole.
Too much of anything, money chasing goods and services, employees not working productively
8

1he ldea of some masLer consplracv ls akln Lo Lhe Lheorv of Cod. We assume evervLhlna LhaL happens
'tls
same aLLrlbuLe Lo aovernmenL and Lhese consplracv Lheorles assumlna Lhev know whaL Lhev are dolna
even Lhouah we do noL, and lL musL be drlven bv areed wlLh some slnlsLer ob[ecLlve.
ln reallLv, Lhere wlll never be such coordlnaLlon because Lhere wlll never be unlversal aareemenL. !usL as
wlLhln each companv Lhere are Lhese !"#$%&'()%*+('$",)&+#" *$#-&$-#"* LhaL prevenL lL from Lrulv acLlna
as a slnale enLlLv ln mosL clrcumsLances, when vou Lrv Lo aroup LoaeLher Lhese companles lnLo a slnale
unlL, Lhe same !"#$%&'() %*+('$",) &+#" *$#-&$-#"* Lhen emerae. 1he compeLlLlon beLween Lhe flrms
prevenLs Lhe verv coordlnaLed bodv LhaL people aLLrlbuLe Lo Lhem durlna a crash. 1he proof of Lhls ls
acLuallv Lhe facL LhaL Coldman needed also Lo be balled ouL. 8uffeLL lenL Lhem monev and Lhev were
alven access Lo Lhe led wlndow noL Lo menLlon Lhe 1A8 funds. 1hev were rlahL on Lhe Lrade, buL falled
Lo conslder Lhe !"#$%&'"# LhaL would be unleashed. 1hev falled Lo arasp LhaL dlfference of a
morLaaae debL crlsls from a mere crash ln a commodlLv or Lhe sLock markeL where Lhe scope ls llmlLed.
A morLaaae collapse affecLed Lhe enLlre credlL svsLem and nearlv brouahL down Lhe enLlre house of
cards. 1haL cerLalnlv Coldman dld noL expecL or else Lhev would have been prepared and would have
had shorL poslLlons much bevond Lhe morLaaae CuC markeL. lL easv Lo assume Lhe crash was dellberaLe,
buL ln reallLv, noL even Coldman flaured ouL Lhe !"#$%&'"# facLor. 1hls was ln parL due Lo Lhe Lunnel
vlslon creaLed bv Lhe !"#$%&'()%*+('$",)&+#" *$#-&$-#".
neverLheless, our areaLesL problem ls LhaL aovernmenL operaLes on Lhls same !"#$%&'() %*+('$",) &+#"
*$#-&$-#". We are doomed because Lhere ls no coherenL oraanlzaLlon and Lhe cosL of aovernmenL rlses
under Lhls sLrucLure as Lhe efflclencv of manaaemenL decllnes. Cur oraanlzaLlonal skllls are serlouslv
lacklna. We have far Loo manv aaencles all reaulaLlna ln an overlapplna manner and Lhls lncreases Lhe
cosL as well as Lhe lnablllLv Lo acLuallv manaae anvLhlna. 1hls was one of Lhe complalnLs ln Lhe
ueclaraLlon of lndependence: /") 0'*) "#"&$",) ') 1-($%$-,")+2) 3"4) 522%&"*6) '7,) *"7$) 0%$0"#) *4'#1*) +2)
522%&"#*)$+)0'#'**)+-#)8"+8(")'7,)"'$)+-$)$0"%#)*-9*$'7&".)
lL ls Llme Lo undersLand Lhls lnherenL barbarlc Lrlbal Lendencv Lo creaLe a lealon of reaulaLors all
operaLlna ln compeLlLlon serlouslv dlsrupLlna Lhe economv and ensurlna we are abouL Lo collapse ln a
verv bla wav. We have Lo auL aovernmenL and lL ls Llme Lo reoraanlze Lhe svsLem from Lhe boLLom-up. lf
we are aolna Lo conLlnue Lo be barbarlans wlLh a pleLhora of compeLlna lnLeresLs wlLhln aovernmenL,
Lhen we wlll be headed Loward clvll war. unforLunaLelv, Lhose who beneflL from aovernmenL wasLe wlll
vell and scream Lhe mosL. 1hese are Lhe verv people who would sooner desLrov Lhe naLlon Lhan acL [usL
once raLlonallv for Lhelr own lona-Lerm survlval.
1he vouna 8epubllcans are refuslna Lo compromlse. 1hev are chanalna Lhe dvnamlcs of pollLlcs more so
Lhan mosL expecL. 1hls ls Lhe sLarL of Lhe Lhlrd parLv movemenL LhaL mav Lake hold bv 2016. 1hev are
refuslna Lo follow Lhe parLv and are demandlna deep cuLs. 1hev see half Lhe problem correcLlv as lL ls
Lhe debL, buL Lhev are noL addresslna anv lasLlna chanaes Lo Lhe svsLem ensurlna Lhls ls aolna Lo aeL
much worse. 1he currenL debL celllna crlsls lllusLraLes Lhe problem of fraamenLaLlon and compeLlLlon.
unless Lhere ls a full scale wllllnaness Lo revlew Lhe enLlre sLrucLure and respecL LhaL evervLhlna has Lo
be reoraanlzed, we should expecL more of Lhe same. 1hls ls compeLlLlon, noL cooperaLlon. So arab vour
socks Lhls ls approachlna Lhe 8arbarlans aL Lhe CaLe.
MA pushing the internal fragmentation
theme...