Posted Aug 14, 2015 by Martin Armstrong
QUESTION: Marty, you have written many times how everything is connected and how in Asian culture that is the foundation of all understanding. Why is it so hard in the West to comprehend this fundamental concept?
All the best
ANSWER: I think it is all part of the idea that we can alter society by forcing it to do as we desire. Politics are based upon this. Socialism is all about robbing one class to benefit the other. There is no comprehension that everything is connected and this permeates analysis as well. This is not my personal discovery for many have seen these connections in Eastern philosophies. In economics, politicians are not interested in such realizations for it means they are not the masters of the universe.
Take Obama’s policy against Russia. He has effectively disrupted everything around Europe and the consequences are refugees pouring into Europe and sanctions that have hurt European farmers and the economy. It is not deliberate, but it is reckless for there is no recognition of how everything is connected.
Every action has a consequence. The Fed lowered rates to help the banks, but that crisis is over and the consequence has been to create the next crisis — the defaults of pensions and insurance companies that require high interest rates. So many regulations require pension funds to own government bonds; these regulations have set the stage for the next crisis.
We cannot escape this connectivity. Whatever action we take has a consequence. It is impossible to manipulate markets and the economy for there will always be unintended collateral damage. We are living in the era that will bring about the collapse of socialism, precisely as took place in communism. Government is incapable of ever managing society for they cannot escape the interconnectivity.