In my inaugural post two days ago, I wrote of the increasing imbalance we can see all around us. I wrote that nature, which has both the capacity to temporarily (relatively speaking) absorb imbalance as well as a predilection for balance, will return to balance. It will absorb our foolishness for a while, much like a parent will tolerate the folly of their teenager because some of that is simply expected during that age.
But when that child is 45, the same folly is no longer appropriate, and a parent who embodies unconditional love will step back and allow that child to bear the consequences of that folly. In short, if the child won't grow up proactively, then they should bear the consequences. Firstly, perhaps that will be just the motivation required. Secondly, if they refuse to grow up, then the full consequences must fall on their shoulders--whether that means living on the streets, jail, or premature death. This isn't some form of punishment to do this. It is to allow the person the full life experience they require to evolve.
What the Federal Bank is doing is similar to what nature has done. The Fed is trying to absorb our folly. But the Fed possesses neither the intelligence of nature (so it does not "see" the ripple effect of its action), nor does it possess the unconditional love that is so strong and so abiding that it can stand by while we "suffer".
There is no "soft" way to settle imbalance of the nature of the USA's financial crisis. It would be kinder to stand back, and allow the imbalance to work itself out. Mind you, there would be tremendous pain. But here is the rub. Printing money and the derivatives method will not fix the root problem. The root problem--aside from the greed of the people in the mix of it--is your greed, my greed.
All this crisis is is a mirror for how we all feel entitled to live in a certain way, without the consequences of the imbalances that is creating. That won't work. And we are 45 now.
