Why?

The most important question you will ever ask

I have just finished The Price of Time: The Real Story of Interest, an interesting read that addresses the critical role of interest rates throughout history. The author puts much of the blame for the GFC on Ben Bernanke and the Federal Reserve arguing that the low interest rate policies that started at the turn of the century, and continued up until recently, caused the multiple bubbles that have ravaged the global economy.

At no point is the obvious question asked. Why did Central Banks engage in reckless policies that once embarked upon, could not be unwound without ultimately toppling the financial system.

In 2008, I recall making the same mistake and buying into the theory that Bernanke was corrupt, stupid and/or incompetent. Why else would the Fed chairman take a shit in his living room. Liar loans. Really?

But then it struck me, like the proverbial diamond bullet between the eyes. I was stupid for thinking Bernanke was stupid. He very obviously understood the ramifications of the Fed’s policies. Nor was he corrupt or incompetent because if that was the case, The Men Who Run the World would have fired his ass.

So why did he take a dump in his living room? Even a dog won’t do that, unless he really has to go and nobody is around to open the door. What made Bernanke so desperate that he not only took a shit in the house, he also set fire to the drapes.

Hmmm… now why would he do that?

This is when the diamond bullet smashed through my thick forehead and entered my brain and I realized that Bernanke must fear something horrific for him to set the house on fire.

The hunt was on to find out what motivated the drastic reduction in interest rates; the first clue was this:

JUNE 13, 2003 - There is increasing evidence that massive economic stimulus — monetary, courtesy of the Federal Reserve, and fiscal, thanks to the president and supply-side minded lawmakers — is taking hold. The magnitude of the policy turnaround, which caps a constructive, multi-year reflation process, should overwhelm the economic negatives — including the drag from expensive oil and poor finances at the state- and local-government levels.

Expensive oil and its impact on other energy costs remains a concern.

The current level of U.S. monetary stimulus is massive. Real interest rates have fallen 5.2 percent from December 2000 to March 2003, reaching -1.2 percent. A swing of this magnitude may be historical. Source

This lead me to read Why Your World Is About to Get a Whole Lot Smaller then The Long Emergency

Panic began to set in as I began to understand why Bernanke was doing what he was doing. Surely there had to be a way out of this and I began researching ‘is a no growth economy viable’ which brought me to There is No Steady State Economy (except at a very basic level)

I can still recall the moment I stumbled across this crucial paper on the nature of this rough beast. I was in a hotel room in Edinburgh, it was late in the evening, and I read Perfect Storm from start to finish. I was unable to sleep until the very early hours of the morning because I had just been given a death sentence. This detailed exactly what the problem was and why Bernanke responded as he did.

PERFECT STORM - Energy, Finance and the End of Growth

The economy is a surplus energy equation, not a monetary one, and growth in output (and in the global population) since the Industrial Revolution has resulted from the harnessing of ever-greater quantities of energy. But the critical relationship between energy production and the energy cost of extraction is now deteriorating so rapidly that the economy as we have known it for more than two centuries is beginning to unravel. (go to page 59)

Mr DNA Responds

Realizing my/his very existence was threatened, Mr DNA, the fat, lazy well-fed fuck emerged from his slumber and took control of the situation. All logic went out the door as the primordial strands demanded that I do whatever it takes to stay alive.

Thus began a multi-year phase of pouring a lot of money down a doomsday rat hole believing hobby farming would insulate me (and Mr DNA) from the coming Apocalypse. Over time I began to suspect this was folly and abandoned the idiocy with only a New Zealand passport to show for it.

I knew I was defeated as did Mr DNA. He re-sheathed his fangs and settled back into his comfortable life. And I have not stopped bucket-listing since.

Let Sleeping Dogs Lie?

Many barnyard animals would disagree with what I have done. What benefit has asking ‘why’ brought me? Has the truth not lead to despair and resulted in the waste of money on prepping?

They do not want the truth so they never ask why because they cannot handle the truth. The worst possible truth is that we are very low on affordable energy and civilization is about to end.

I on the other hand demand the truth. In this instance the truth has set me free. I delegated most of my responsibilities at work and pursued a passion for experiencing the world. Yes, there was a moment of despair, but when you realize nothing can be done, the despair dissipates as you plan the next adventure.

If the barnyard animals were willing to ask ‘why are so many vaxxers dying and being maimed’ they might stop playing Russian Roulette with the boosters. But again, they cannot handle the truth, so they question nothing and take more booster shots to reinforce their belief that the vaccines are safe and effective.