The Cycles of the Human Capital

One must go beyond the Housing Crisis, Lehman, Dot Com, or LTCM. Beyond the
Peso Crisis, before the Gold window closed; go back to the lead up to the Great
Depression.
We must go backward to frame this reality. Backward in time.
But at each point we must let the accepted interpretation dissolve as we move on to the
next.
The period roughly spanning the end of the Civil War, up to the banking panic of 1907
and the joint venture bail out between the original J.P. Morgan lead directly to the
creation of the third U.S. central bank.
People think that the times were simpler - or we picture a vast open space, a Wild West, a
little town caricature from the movies. Something soon will trigger the return to
equilibrium and a violent return to reality. If we let it.
The more you melt away players of time, the closer you get to the heart of the matter.
From there, at that point - the uncorrupted principles of equilibrium - a glimpse of real
growth and progress. The accumulation of real capital that can be used.
Risk based on simple calculations, and in the spirit of finding better, more efficient and
less costly solutions to pervasive problems.
Today, the irony is that we assume that math will ultimately solve the problems of
behavior. That we could develop an equation that could describe the invisible hand once
and for all--when its mathematically impossible to pay our debts.
Intervention just makes it worse.
Heres one glaring, obvious example:
Punk Q1 GDP Wasn't Surprising: It Extends A 60-Year Trend Of Exploding
Money And Imploding Growth
And after yesterdays punk GDP report in which growth stayed above the flat-line by a

hair (only due to a massive inventory build), the contrast is even more dramatic. Real
final sales actually declined by 0.5% during Q1. And more importantly, it reflected a
mere 1.1% annual growth rate since the pre-crisis peak in the winter of 2007-2008.
There is no way to really manage a system like this. Its not a matter of counting cogs and
factories, or guessing about the whims of a sometimes invisible hand. Weve have
traversed all the rabbit holes to a truly dark time.
Dissent is largely put down, the whistleblowers have been outcast. The newly awakened
minority asks: When?having just arrived at the tortured moment of realization that
comes without hope. As if a desire to learn from history is a desire to withhold anesthesia
or penicillin.
The slavery of today just looks more palpable and comfortable. It is still slavery and
coercion.
At some point, the masses will awaken from the thought matrix. Unfortunately, it
will be too late.
The answer to why is already known. The unraveling began in the creation. Its been
taking place ever since.
The fact that you are aware of this and these words is all you really need to know in order
to act or abide. Commerce is communication the--the communication of ideas and
information.
Is it possible to have real capitalism running parallel to tech, of course. We would
probably see more intervention, more creativity. There will always be room for
improvement
For now it is the scourge. The dangerous meme. The great money grab. The robbing of
the peoples bank. The taking of souls and the spirit of a nation.
No wonder there is such pervasive confusion between true capitalism and democracy, or
oligarchy and kleptocracy.
For more articles like this, including thoughtful precious metals analysis beyond the
mainstream propaganda and basically everything you need to know about silver, short of
outlandish fiat price predictions, check out http://www.silver-coin-investor.com