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Paolo posted an update 8 years, 8 months ago
In complex dynamic systems that reach the critical state, the most catastrophic event that can occur is an exponential function of scale.
This means that if you double the system, you do not double the risk; you increase it by a factor of five or 10.
A bit of wisdom from Jim Rickards, posted on his website here:
https://dailyreckoning.com/elites-privately-warning-crash/While I make no endorsement of his conclusions, his point about Complex Systems having a exponential feature to their operation is worth noting.
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This coincides with what C.A. Fitts has been saying recently about the increasing likelihood of “crash” events.
This does not mean actual collapse of human interaction for purposes of material-cum-social exchange, i.e. the real economy, but a “virtual shredding” of the derivatives pile. The question is, can human society at least begin to restore a modicum of balance, say by stopping the assets-theft in the form of all those “fees” siphoned off in increasingly non-productive transactions.
For the bankster class a haircut to THEIR fees instead of to the bank account of the ordinary person is seen as an event no less catastrophic than an asteroid careening into the Earth.