People often ask whether I am concerned about inflation, deflation, peak oil, or a global financial meltdown. My answer is as follows.

The future is something to be created, rather than feared. Allocating our time, networks, and resources to deal with a variety of high-risk scenarios frees us to become proactive and to build positive futures instead of negative ones. I like to understand what these scenarios mean in terms of managing risk and to know how we can succeed within all possible futures.

But my business is investment, not prophecy.

The risk scenario I weight most heavily is not listed above. I call it the “Slow Burn.”

The “slow burn” is a political culture and economy managed through principles of economic warfare in which insiders systematically protect themselves and centralize control and ownership of resources by using:

  • Central banks
  • Currency and lending systems
  • Taxation
  • Regulatory and enforcement policies
  • Controlled media and entertainment

Insiders use these means to drain the time, resources, and life of people on the outside. Although insider cartels compete and jockey for power, they are able to settle their squabbles by increasing control and draining everyone and everything else. This is why the bubble economy continues to deplete the real economy. It is likely the reason why Dick Cheney said, “Deficits don’t matter.”

In a slow burn scenario, it is possible to prop up trillions of dollars in financial asset values by systematically arranging subsidies that ultimately liquidate life. This is what “managing” markets really means: de-populating people and places to maintain phony values created and necessitated by derivative bets.

The reason why it is difficult for sophisticated financial people to discern that a slow burn is taking place is because we have not yet collectively mastered the operational detail of how it is implemented. This is an extremely important subject.

One of the most important aspects of the Paulson Plan to re-engineer US financial regulation is the assertion of complete control of payment systems by the Federal Reserve and gaining access to the data of essentially any financial institution. Combined with 1) the ability to print money and 2) digital communication payment and surveillance technology (satellite), this will consolidate greater power into fewer hands than at any time in recorded history.

As Nicholas Negroponte said, “In a digital age, data about money is worth more than money.”

36 Comments

  1. Peakoil will take the wind out of the Elite’s sails. It takes energy to control things. Computers, vehicles, personal to feed(energy to grow food), airplanes(spy), etc. When people have nothing to lose they will become desperate and will do anything to stay alive, including stealing from the Elites in mobs. In the future(very soon) the Elites will not be as safe as they think they will be nor will they be in control. They will get lynched. The people have had a taste of luxury. Many years ago they did not. My point being that once people have things they will not be happy about losing them. Many years ago most people didn’t have it to lose so they did not know what they were missing. They always had to work hard. Once people have been liberated and then the Elites try to de-liberate them, well, the genie is already out of the bottle. Docile people of of the past. The Elites better think really hard about the Depression that has already started.

  2. @sue

    i agree with you that the american people should stand up to this. but we are too distracted, and sadly unwilling to make any sacrifices. real change requires serious sacrifice. some would have to be willing to lose jobs, some families, and others would have to be willing to make the ultimate sacrifice. i think the average american won’t do anything substantive until they lose everything, and there are no doubt measures in place to deal with that.

  3. Fed is no better than a counterfeiter. It is willing to print $3 Trillion and give it almost free to banks (1.5% 90 days loan that can be renewed indefinately). Banks will use the $3 trillions to make $30 trillions debts (built-in leverage in banking) that will buy a lot of wealth, American people’s labor and sweat.

    Think about it. How many people have to work like slaves to earn the $3 trillion counterfeit money. They definately get empolyed, but as semi-slaves. The “printed” money is dirty than the
    tax dollars. At least the later represents the dollars already in the circulation. The Fed can create infinite amount counterfeits money.

    The these fake money come into play into the real ecomony that they will sure boost GDP 60%.

    How can you expect financil stability when you have a shadow manipulator such as Fed exits that has already ruined tens of millions of American financial lives in the past 6 years.

    It’s still in power even though its past monetary policy was totally disastrous.

    Don’t forget “Debtor is slave of creditor”.

    How many people out there don’t have debts, raise you hands?

    60% of all college students graduate with a degree and gigantic debts.

    It’s time to stop enslaving process the loans (debt).

    We American are so rubbed by taxes and inflation we have to borrow to pay for necessities.

    Stop serving the debts, walk away from the debts. This is revolt against slavery.

  4. I think we as the citizens of the U.S. have a responsibility to unite and not allow this to happen. If people are united and against the very few who control the economy, only then will these greedy and narcissistic people be brought justice. At that point things would be forced to improve. They can only control people that are naive to what is happening, and it’s those people that will be most hurt my the down turn in the economy. I can’t believe we have allowed this to happen, it is really a sad situation, that most of the people in America have been manipulated and they don’t even know it. It is time for change, and the greed to stop, and for people to take responsibility.

  6. Catherine,
    You are a really great writer and educator. I especially liked the article about narco dollars. But is there a way to stop what seems more and more our own evil-empire?
    And does Obama know that despite being president, he is not really in charge?
    Have they told him yet?
    Thanks for sharing your thoughts and observations with us.

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