A concern I’ve had for some time

I’m not entirely sure how best to articulate this one, but there’s a thought I’ve been turning over in mind for a while: which is that it honestly seems a bit dangerous to fight the Fed, because winning might potentially put the whole system at risk. The English speaking world on aggregate has a very high standard of living, and as Cantillon wrote, reducing that standard would be incredibly painful, and so would probably not be something a democratically elected government could risk allowing to happen. Nevertheless, the endgame for the Eurodollar system hardly looks stable either, as it is predicated on the system’s long term viability and relative integrity. For this reason, I don’t feel it would necessarily be existentially safe to end the Fed, the endgame of fighting the Fed, which is in a sense what we’re doing here.

The ultimate consequence of the end of the cycle Cantillon identifies has commonly involved war, forced on the state by the collapse into poverty and misery ensuing from liquidity shortage which – in the modern, nuclear equipped age – does not strike me as being an acceptable path to risk treading on. What do you all think? I accept that as things are heading now, there’s a strong possibility that we will be forced to eventually face the music due to the excesses and imbalances our debt-based ponzi-nomic system is causing anyway; but, is it clear that the long-term consequences and suffering of this system are really so much worse than whatever chaos might ensue if the Fed were to fail? So, is that latter case really what we want to try to force to happen?

Yes, the consequences are theoretically only becoming more serious as time goes by in this state of deferring paying the piper; but if those consequences reach a point which would result in all out war, and I think there’s a possible argument that they already did, it’s not a bill which could even hypothetically be paid; and would it not be more sane to continue to dig, so to speak?

What are your thoughts on this?

I don’t know what mine are, but the question still plays on my mind from time to time.

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