Constants and variables 106, Mormon Mennonite Mandarin edition
As I've noted repeatedly,
the line between Soros and non-Soros corresponds pretty closely to debt vs saving. The one BIG exception is China, which has fueled its tremendous mercantile expansion with pure debt. Now that the debt is starting to unravel, the non-Soros side may need to make some decisions.
History has a pattern. Debt fails, saving succeeds. Theory fails, experience succeeds. When a debt and theory society crumples, savers and experiencers move in and take the territory without war. Natural selection = natural law.
You can see this on a smaller scale with Mennonites and Mormons. Both groups obey Natural Law closely. No debt, no gambling. Make more valuable life, make more living value.
In the Kansas and Okla wheat belt, Mennonites moved in and started living by Natural Law. No mortgages, no bank debt, have lots of kids, train the kids to do useful work. Several waves of 'English' moved in UNDER THE COMMAND OF NYC BANKS, then quickly went bankrupt because they lacked EXPERIENCE. Each time the wave returned Eastward, the Mennonites quietly claimed some of the vacant land and let their kids turn it into successful farms.
Between the Rockies and the Sierras, a similar process. Banks promoted waves of LBO/IPO "pioneers" aka debt slaves.
Each wave improved the land, added irrigation and barns, then failed because they were living on debt with no reserves. The NYC banks remortgaged the improved land at a higher price. Mormons were quietly living with massive reserves and lots of disciplined and trained kids. The kids grabbed up the foreclosed land and added more reserves and more disciplined and trained kids.
Does this analogy apply to Russia (saving, experience) and China (debt, theory)? I can't see it working. China has never been bought out or invaded. China may be the huge exception to the pattern.
Labels: Constants and Variables, defensible spaces