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morbius glass quote of the month (June 2008) – The Spring and Autumn Annals, Ben Bernanke and our old friend Mohammed Saeed al-Sahhaf

Posted by Adrian on June 10, 2008

I was trying think of a quote for June 2008, after the huge surge in oil prices and global stagflation economies (YES STAGFLATION!); the blaming game – the market chaos and stock market volatility, not to forget those horrendous Fed officials and others trying to calm everyone down and even deny that the world is most probably facing a severe economic downturn. It is at times agonizing to watch when our leaders, both politically and economically stand before us and say, ‘everything looks rosy’, ‘we got everything under control’. Of course in the last decade, we have had a deceptive political system overlap the world, democracy has been slowly eroded and a war in Iraq (for oil), that is in all retrospect has been one of the biggest military blunders in history. ‘The Spin’ doctors went into hyper drive in the last 10 years, because general human instinct and analysis has been diminished in favour of a dumbed down population that gave too much faith to a controlling body, namely government. We (the human race) allowed ourselves to believe in a social and biological order of control. We excepted our biological predicaments (ultra Darwinism) and allowed ourselves to fall mercy to recent economic idiocy – which essentially one of the biggest con jobs in history (the economic boom on housing assets). In the meantime governments and economic controlling bodies (central banks) believed that prosperity had been achieved on a global scale. But as we all know now, prosperity or what little amount was achieved in economic global expansion in the last decade – has declined and declined rapidly, with inflation destroying anything left.

So what kills a leaders integrity quicker than arsenic, is dishonesty and a nervous calm that, ‘we will all be fine’. The global population, when it wants to, tends to awake in a panic when we know something is not right. Federal Reserve chairman Ben Bernanke is a nervous guy, I see him on television and economic reports; he doesn’t look comfortable. He knows what’s up, but his own deception or conscious lack of dealing with a global economic problem – comes at a price.

There is a great quote Sun Tzu from the art of war, it reads, “…if a smaller side is stubborn, it becomes captive of a larger side

The truth is the ‘larger side’, denial is the ‘smaller side’.

Recently Chairman Bernanke came out and said this (in light of recent oil and high inflation, growing jobless rate in the US), from Bloomberg

“The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so,”

“While the Fed chief said that risks to growth were still to the “downside,” he added that federal tax rebates, past rate cuts and record exports should underpin growth.”

“The unemployment rate rose to 5.5 percent in May, the most in more than two decades, as the U.S. lost jobs for a fifth month. Bernanke called the unemployment figures “unwelcome,” though he added that recent economic data had “only modestly” affected the outlook for growth and employment.”

As last month’s morbius glass quote explained, ‘everything comes to an end’, but also in that sense new cycles are reborn. What we have allowed and participated in is the belief, especially from politicians and policy makers; that it ‘doesn’t finish’, we can sustain expansion and we can keep growing. But even nature cuts down expansion, so everything balances out. Our governing system has no idea how to deal with the end of the old. It’s an instilled fear of the future in someways, we believe that oil and natural resources are inexhaustible, we refused to learn from history that the world moves in cycles and re-balances. To hold of the invertible is denial, as far as the markets are concerned – that denial is costing people a loss of money and confidence in the financial markets.

So this month’s quote , is from the ancient Chinese text Spring and Autumn annals.

“if you cannot be strong and yet cannot be weak, this will result in your defeat”

I respect a leader that shows strength and weakness, does not live in denial. Knows when to act in accordance with events, doesn’t bury his/her head, doesn’t delude themselves with rhetoric and informs the people with honesty and integrity.

But one of the most blatant and comical examples of a ‘leader’ or ‘spokesman’ in denial, occurred when the 2003 invasion of Iraq was in full swing. With US forces literally minutes away from Baghdad city. A character from Saddam Hussein’s then ruling government would appear on news reports from Baghdad, his name is Mohammed Saïd al-Sahaf, the minster for information. According to wikipedia, Al-Sahhaf was famous for this delusional assertion and I quote, “On April 7, 2003, al-Sahhaf claimed that there were no American troops in Baghdad, and that the Americans were committing suicide by the hundreds at the city’s gates. At that time, American tanks were patrolling the streets only a few hundred yards from the location where the press conference was held.”

It’s funny now looking at that footage, but in the context of this post and the morbius glass quote of the month ( June 2008), it seems even more relevant. Especially when our ‘leaders’ today are making the same embarrassingly upbeat assessments of dire situations.

If you can bear watching 10mins of this guy, video below. Mind you there some funny moments there.

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3 Responses to “morbius glass quote of the month (June 2008) – The Spring and Autumn Annals, Ben Bernanke and our old friend Mohammed Saeed al-Sahhaf”

  1. […] central banks are stubborn and wasting taxpayers monies trying to avert this, as I wrote in morbius glass quote of the month (June 2008) – The Spring and Autumn Annals, Ben Bernanke and our ol…, the smaller side becomes a captive of the larger side. What governments should be doing is, […]

  2. […] central banks are stubborn and wasting taxpayers monies trying to avert this, as I wrote in morbius glass quote of the month (June 2008 ) – The Spring and Autumn Annals, Ben Bernanke and our o…, the smaller side becomes a captive of the larger side. What governments should be doing is, […]

  3. […] Obama is showing hallmarks of the al-Sahaf syndrome […]

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