Currently I find myself in a quandary on politics and finance. I can’t help but feel I’m in some alternate universe or reality that only masters of science fiction like Phillip K. Dick or Arthur C. Clarke could envision.
It would seem we went to sleep in a world where A was followed by B. Then woke to find there’s really never been any alphabet at all. Words now conform to models of quantum mechanics. They live in two realities. Just depends who does the viewing determines their reality.
As of today we have two people running for the highest office in the land. Both are telling everyone we need him to save us. One is an experienced businessman who’s never had experience as President and wants you to vote for him because in order to get business moving – you need to get political leaders working together.
Then we have another who has no experience as a businessman yet has experience as President who wants you to vote for him because he says to get political leaders moving – you have to get business leaders working together.
Both can point to different realities as proof they’re thinking is correct. It’s near maddening because if reality is purely observational. Then both can point where they want you to look as proof. In quantum theory both realities exist at the same time.
On the other hand everyone from the media to the ninety-nine per-centers look upon the Bankers as pseudo political leaders with vile, distrust and hatred. Yet, aren’t they exactly the ones who saved their 401ks?
Complaints about 401’s becoming 201’s and 101’s are now a thing of the past. We are now at levels as if the financial collapse of markets never took place. If you didn’t live through it to observe it, then looking at the markets today are just as if it never happened is it not? Quantum theory at play.
The universe where jobless numbers, business closings, housing foreclosures are now numbers or information of economic theories long since dispatched to the black hole of by gone economic theories. They seemingly no longer exist. That’s the prism of reality to now view the world.
If politicians were the ones to fix world economies. Then why isn’t the world clamoring to hear and decipher their every word? Nobody seems to really care any longer. Yet let it be leaked that a Central Banker needs to take a leak, and the world pauses to hear the zipper.
The media tells us today it’s the politicians who’ll save things. Yet haven’t they been inept at best? If it’s results that mean anything, whom is it the media keeps telling us saved the markets of the world? That’s right – The Central Bankers.
Place ten thousand of the worlds most famous speeches ever composed within the Hadron Collider and it would show results as if not a word were spoken. Yet, just the sheer mention that a vowel is to be mouthed by Bernanke or Draghi or something more, and it’s as if the worlds collided.
This is the new reality I’m afraid. And it’s not inside some billion dollar particle accelerator. We are living it. Let the rules of monetary policy or velocity be damned! This is the 21st century!
The unemployment rate has fallen once again and threatens to possibility have a 7 handle by the election based on more people losing work and not looking. Only quantum theory explains this in my mind.
Modern economist such as Milton Friedman and others whose work and research on sound money policy is required reading to anyone taking markets seriously. But now in this quantum world their views are no longer looked upon. Which is nearly the same as if they never existed in today’s reality.
This sounds like an experiment waiting to go bad by my way of thinking. But this is quantum theory so I guess it can – or did – or whatever. Lord knows I’m no rocket scientist – just a thinker who stayed at a Holiday Inn® once.
Anyone with a logical grasp of monetary policies and its effects will tell you money printing will cause inflation and devalue the printers currency. Yet today the more the U.S. Federal Reserve prints – the lower interest rates fall.
Monetizing a nations debt is a fool’s errand. Yet we are now doing it at such a pace we could make a particle accelerator blush. While at the same time the U.S. dollar remains relatively strong as compared to the amount of printing. Breath taking or surreal to say the least.
If you think the above is mind bending. Just try to view Europe through the same prism and its more quantum theory in action.
The European Central Bank just announced it will do similar bond buying programs yet what happens to their currency? Their currency rises! Why? Because I guess the view of reality is more in line with you’re now saving the currency not devaluing it. Reality is all in how it’s viewed.
Politicians jawboning on doing this or that – meaningless. Draghi from the ECB (European Central Bank) whispers that bulge just might be a bazooka and stand back because the view in this prism is going to get the full Monty!
European markets rally not 1, not 2, but 3 to even 4 percent! Once again on pure speculation. Talk about power. Who wants to be a politician when you can have that kind of cause and effect on the wealth of nations. Impressive one must say regardless of the viewing station indeed.
However there is one troubling aspect to this theory that I believe the minds of Leonard Susskind or others would take up slide rules and commence swatting holes in all this new reality thinking.
I believe all this pseudo monetary reality will come to a rather unpleasant end. That end I’m afraid will be born out when all these ‘geniuses’ realize their experiments were not just subject to the reality of their views. But still conformed to the realities of what we call the “real world.” Never vanishing down some black hole to be lost as they try to argue.
But we’ll have to wait until others can be convinced to even look never mind see. Because currently today’s reality is what it is. However once the assumed models are proven to be illusions. The reality of what is real can return with frightening speed and repercussions.
We’ll just have to wait and see because that’s reality today.
© 2012 Mark St.Cyr