I’ve seen some brilliant ‘systems theory’ from cops demonstrating such stuff as disrupting crime – you know the stuff – the car seized and crushed doesn’t get used in the CIT getaway and so on. Economics is a perverse form of systems theory. I don’t want to be alarmist and we should always remember we can still scratch livings without the clowns in politics and high finance. None of the current moves around the world by this collection of big chunks who have risen to the top of society-as-septic-tank make much sense and here’s an example of why:
http://www.zerohedge.com/news/guest-post-next-line-implosion-pension-plans
This, like disrupting crime is a system theory story. Pension plans need 8% growth to work and yet money can only make around 3% because of low interest rates and interest rates are being kept low to pay for all the losses (due to crime in my view) by the “experts” in high finance, and in turn this has probably already led to an over-valued stock market where the hoped for growth is supposed to occur. Rather than growth we may well see losses. In principle, the economics of this system is less complex than much police work and I wonder why it is we understand so little of it.
Just as we expect crime to rear its ugly head away from those areas focused on, whether geographic or specific (CIT happens in neighbouring force areas – burglars turn borrowers from shops), capitalism has its means of adjustment – and the traditional one is war to destroy capital and bring back high profit margins. We are not yet appreciative of how serious the problems are and the need fore new approaches.
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