Tuesday, November 06, 2018
Three D-words
This graph is interesting. It shows a four-year leadup to 2008, followed by the current bubble. The variable is stock buybacks vs real investment in real production.
We are always INSTRUCTED that housing caused the 2008 crash. The chart gives a broader and more accurate picture.
ABSTRACTION caused the crash.
In fact, ABSTRACTION is the cause of EVERY SINGLE CRASH in business, government, and ordinary lives.
Abstraction has three Ds:
(1) Debt.
(2) Delusions.
(3) Drugs.
All three are unsustainable departures from real value and real work and real measurements. Sooner or later reality crashes you.
Debt is the OPPOSITE of real value. When you are manipulating debt, you are DESTROYING the world instead of CREATING the world.
Delusions are the OPPOSITE of real expectations. When you operate on the expectations of "rights" and "equality" and "laws" and "justice" and "free will", you move farther and farther from reality.
Drugs aren't quite identical across scales. The corporation itself can't do drugs, but history shows that executives are either drunk or coked up during bubble periods. The companies that survive the bubble are led by sober men.
Labels: Carver, From rights to duties
¶ 7:36 AM
