Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21
Why Tether USDT, Stable Scam Coins Could COLLAPSE the Crypto Markets - Black Swan 2021 - 6th Jun 21
Stock Market: 4 Tips for Investing in Gold - 6th Jun 21
Apple (AAPL) Summer Correction Stock Trend Analysis - 5th Jun 21
Stock Market Sentiment Speaks: I 'Believe' We Rally Into A June Swoon - 5th Jun 21
Stock Market Russell 2000 After Reaching A Trend Channel High Flags Out - 5th Jun 21
Money Is Cheap, Own Gold - 5th Jun 21
Bitcoin and Ravencoin Cryptos CRASH Bear Market Buying Levels Price Targets - 4th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Slope Of Hope Economy And The Persistence Of History

Economics / Economic Theory Jun 06, 2014 - 01:13 AM GMT

By: Andrew_McKillop

Economics

The Faith Based Slope of Hope
Writing on the website The Slope of Hope, June 4, Tim Wright in 'The Persistence of Memory' said that: “....honestly, I don’t have visions of a group of thirty rich men sitting around a gigantic table at the top of a skyscraper, smoking cigars, chortling villainously and plotting humanity’s path. I do, however, firmly believe that the central bankers and political leaders of the largest countries were shocked at what happened late in 2008 and vowed Never Again”.


They effectively decided they had to sabotage the economy “sine die”, forever, or until “God makes a sign”.  Wright says they were only obeying embarked instincts and responses, that is the lure of Prosperity Now. This is what the people want, and Problems Later do not interest them. So as Wright says the stock markets, at least in the G7 countries and (with increasing effort to repel reality) in the emerging economies, simply have to go on going up.

Slowly, perhaps, but up nonetheless. The central bankers “do the necessary” and create whatever actions are needed to keep equities floating higher. Then the problems will arrive. What a surprise!

Tim Wright said this is totally pre-ordained. “All the stock analysts, all the talking heads on television, all the bloggers, all the financial journalists, and - yep - you and I - really just need to hang it up”. “We all just need to quit. We're wasting our time and emotional energy. Every. Single. Day.”. He said that in the existential crisis we have, what would have seemed insane only five years ago, is New Normal.

Equities and all kind of financial assets “bounced” out of the 2008-2009 crisis – and this certainly had nothing to do with the real economy. As Wright puts it: “The prospect of the exact same reality for the next five years.........and the next...........and the next..........seems equally insane. And equally possible”.

The impossible is possible and the improbable is certain!  Welcome to the Slope of Hope.

Tim Wright may or may not accept that the financial existential crisis – which he talks about – only reflects a general cultural implosion. In previous avatars often called The End of History this is followed by an Afterwards. History starts again but on a different footing. The process is well known – if denied for various reasons, plenty of them explainable.

In the economy, denial of reality is rock solid. This is a numbers game in which a full-time industry of liars earn a living from Market Spin, to the extent they fool themselves - proving the old saying that “The best liar is one who believes his own lies”.

This firstly provides another explanation why equity markets rise every day – especially on Tuesdays – but at a deeper level shows why the process is so dangerous. There is no way the process can stop until economic reality imposes itself, needing the memory of previous reality.

Persistence of Memory
Two years into the Great Depression, Salvador Dali, in his own way sensed that the social perception of reality – starting with time itself – had been altered. The Depression added an economic dimension to a mixture of western historical crises, brought together in the mass slaughter of World War I – called the Pan European Civil War, by several historians. Previous history had been shattered by the war, but nothing clear lay ahead. The 10-year economic and stock exchange boom of 1919-1929 ended in total collapse. Europe was split into liberal capitalist democracies and the capitalist tyrannies of Hitler and Mussolini. The USA was isolationist and wracked by the Great Depression. Russia was Stalinist.

Salvador Dali said that his paintings were part of a Surrealist tradition, but he preferred to call his artworks “hand-painted photographs of the dream”. As you may personally know, you can wake up during a dream sequence thinking it is still the middle of the night – but it is already morning. The clocks which you thought regulated you dream melted down.

In the 1930s, popular culture in the West was forced to accept the very fast development of Quantum Physics and the principle of Uncertainty. This was popularized through a Doomster slit window or tank turret, but an indeterminate economy ruled by “pure chance” provided a very satisfying and instant explanation, for the masses, of why the 1929 crash happened. It was “pure chance”. Therefore nobody was to blame – including the bankers and brokers! Greed and stupidity had nothing to do with it.

Due to the destruction of time, the event could be sloughed off, forgotten, and then denied in a short period of time – which is exactly the role of our glove puppet media, today.

Destroying cultural and social memory, however, does not sabotage History. Other and more powerful clocks keep on ticking. The persistence of economic memory is surely and certainly one of the gravest threats faced by the spin doctors and dreamers of Prosperity Now. Previous metrics and economic parameters, which can be measured, have to be declared null and void. Old Hat and unrelated to the dream of Prosperity Now.

The Dreamtime
Australian Aborigenes set themselves the question of why, when the White Man came, they let themselves be slaughtered like rabbits. No resistance, but it was not passive. It was “ordained by culture” due to Aborigene nations or tribes believing the Ancestors had returned, wearing white faces. They had punished the Aborigenes for their loss of faith in the end of Dreamtime. It had to end – but they did not believe. They had believed the Dreamtime was outside of time, and its end would be signaled by events far more important than a few white men arriving in large wooden ships at the end of the 18th century.

They later believed the whites were not the Ancestors returning – but sent by the Ancestors, at their bidding.  The whites themselves were “inside the Dreamtime”, and only harbingers of coming change.

This way, the Aborigenes saved the essential cultural role of the Dreamtime. A complex set of beliefs, about time, during which only special events occur outside of all control of the Aborigenes. Not so much victims, but observers of this special time, their culture said it would end – but it was not possible to say when. Dreamtime's end was indeterminate. The Dreamtime was indifferent and neutral.

This is exactly the role and mindset of stock exchange punters. Forced and condemned to believe in their special time, events, and Dreamtime Economy, they must forever fear the Unknown.

Every kind and type of financial forecasting method – from astrology to algorithms, to fractals and chaos theory – is used to fend off the Unknown but coming end of the Economic Dreamtime. Taking a leaf out of Aboriginal cosmology and epistemology, neither the start of Dreamtime, nor its end, were or are fixed events. Only the before-and-after change of state is known and accepted by the Humans with a large range and degree of cultural methods, for accepting the change. This is classic post facto reasoning.

In an exactly similar way, in late 2007 in New York's Wall Street “nobody believed” in toxic credits and an overheated realty sector, let alone the fragile DJIA at “historic highs”. It was all New Normal. There was no end in view.

Our question today is simple but the answers have to be complicated. How and why did we slip back into the Economic Dreamtime? Why did we deny it had to end?

By Andrew McKillop

Contact: xtran9@gmail.com

Former chief policy analyst, Division A Policy, DG XVII Energy, European Commission. Andrew McKillop Biographic Highlights

Co-author 'The Doomsday Machine', Palgrave Macmillan USA, 2012

Andrew McKillop has more than 30 years experience in the energy, economic and finance domains. Trained at London UK’s University College, he has had specially long experience of energy policy, project administration and the development and financing of alternate energy. This included his role of in-house Expert on Policy and Programming at the DG XVII-Energy of the European Commission, Director of Information of the OAPEC technology transfer subsidiary, AREC and researcher for UN agencies including the ILO.

© 2014 Copyright Andrew McKillop - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisor.

Andrew McKillop Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in