Psychology of Risk

Assessing the risk requires psychological valuation of the players, which indicates the probable direction the risk will take.

Currently, for example, in order to reverse the deflationary risk, we need to put capital to work. Instead, the players are hiding in fear, seeking safe haven to avoid losing value to a deflationary trend caused by trying to avoid the risk. Unfortunately, this means they are causing it by trying to avoid it. It's not exactly rational, but when you are rich and powerful, you can afford to be irrational at everyone else's expense (until "the risk" goes gamma, anyway).

As the risk accumulates, the more incentive there is to avoid it. Thus, the risk feeds back into a crisis (gamma-risk) proportion (which demands government intervention to save consolidated capital from itself, like the multi-trillion dollar bailout we just experienced and are now expected to pay for with deflationary spending cuts or an inflationary burden of debt).

Realizing that risk cannot be avoided, it accumulates (like in a deflationary spiral), requires an analytical cognition that is apparently inhibited by the profit motive.

The motive to profit by avoiding risk drives the direction of the risk. In the current environment, analysts that realize this assessment will predict a winning market position (and public policy analysts will be prepared to protect us from ourselves as we irrationally let the risk patriotically accumulate out of control in our self-interest).

Causing the risk to be avoided by trying to avoid it--the classic "dog chasing its tail"--is not exactly the model of sanity or intelligence. While economically the rich have little to lose by converting their wealth into working capital, the majority of the nation's wealth is being horded to avoid the risk, which foolishly puts it at risk of being confiscated at large. It is not the government putting their wealth at risk, it is themselves.

We can either infer they do not know what their self-interest is, or they are demonstrating power--projecting power by playing politics.

Perhaps we can reasonably conclude that chasing your tail is just a form of amusement, which is a very important aspect of the psychology of projecting power.

American politics is elegantly played to exact detriment by making the masses believe it is in their self-interest. For consolidated capital, this is what civil society is. If The People no longer believe the game is being played in their self-interest, then it is the responsibility, the noble obligation, of the power elite to maintain civil order. Raw power must then be applied, overtly demonstrated, to keep the capital safely consolidated, and protect us from ourselves. Is this not what we hear our elected representatives telling us about our representative form of government?

Democrats told us we would know what was in the health care bill after it passed. Now Republicans tell us that it is necessary to raise the tax burden for people who struggle just to pay the rent and put food on the table so that Bank of America can meet its capital requirements as they leverage our future into the pit of the next deflationary crisis. When that crisis occurs, too-big-to-fail entities will be there to feast on the famine--not to provide, but to deprive, consolidating value that will be leveraged into the next crisis in an ever-larger proportion.

So, we're mandated to buy a Democratic health care plan we cannot afford to pay with a Republican economic plan that has an outlook that is progressively more dismal. I dare say, the rating on this is hardly triple A!

Let's STOP and reverse right here.

Increasing GDP over debt is a coefficiency that works. Everyone benefits--even the upper class. The majority of Americans have the income to pay health care and the rich still get rich--unless, of course, we find it necessary to make people suffer to feel powerful, which is just sick! It is just a psychological disorder...criminal insanity that a real free market will in no way tolerate. The only way this insanity survives the marketplace is because it is bred into the false efficiency of economy-of-scale modeling.

Deconsolidate and this problem is solved!

Putting Democrats back in the majority will not solve this problem. According to them, bigger is better! Yes, indeed, $14 trillion and more better! So, who do you think is going to pay for that?

We have to demand that the capital be used to increase GDP. This means that industry and markets will expand, NOT consolidate (i.e., GDP increases over the debt). Economy-of-scale efficiency is a psychological trick--a con game perpetrated on good-natured people who want to pursue life, liberty, and happiness, not be the plaything of pious frauds who want us to believe that taking advantage of other people is a providence divinely endowed and legitimately earned.

Making it so that people have to struggle to make ends meet is not the pinnacle of civil society--it is not the measure of success--and it is not endowed by God.

It is time to stop empowering people who cause debt by consolidating capital into economies of scale, and people who solve this problem by consolidating the risk it accumulates into public debt.

We are psychologically manipulated by an increasingly consolidated risk proportion. It gets so big that it seems the only solution is a big solution. We have ample evidence that this is incorrect, but we are so risk averse, we are vulnerable to the machinations of a power elite who want to herd us like so much cattle and corral us into an economy of scale that is but a Skinner box for operant conditioning. We are so conditioned, we tend to rely on the bought-and-paid-for experts who manage and direct the affairs of business and government consolidated evermore into a controlling, sovereign authority.

No! We the People are Sovereign! We can think for ourselves. We are born free and will live free despite the ambitions of would-be tyrants.

Freedom reduces to a natural coefficiency of governance that has been cognitively dissonant. Now we must choose. It is time to actualize freedom by operantly conditioning our behavior through pluralistic processes, not the tyranny of consolidated processes. Human nature is greedy and selfish to a fault only if we are structurally conditioned to select those behavioral attributes for success.

In a free, unconsolidated marketplace, selfish greed reduces to providence. Those that seek to profit by greedy deprivation can only survive by rigging the market to consolidate its otherwise divisible, not-too-big-to-fail power into an indivisible, too-big-to-fail proportion.

We have been conditioned to believe that consolidating the risk provides security. It clearly does not! It intentionally provides debt well in excess of productivity...it intends to make us slaves to the debt proportion. The choice we have reduces to debt or GDP.

We can lower the deficit and reduce debt or raise GDP. Trying to do both at the same time does neither--it supports the dissonance. It is a psychological trick that will keep us in chains with what appears to be by the consent of the governed. No! We are Sovereign. We choose by Divine Right naturally endowed.

It is time to choose prosperity over debt. Although we are being conditioned to believe that reducing debt will bring prosperity, it will not! It will accumulate even more debt.

Reducing the deficit and debt does not increase GDP, increasing GDP reduces the deficit and debt.

The deficit is not the problem, it is a symptom of the problem. We have been conditioned to believe that the debt is the problem so we infer cutting the debt solves the problem. This is an error of fundamental attribution--it is a cognitive disorder that leads to dissonance and uncivil behavior due to failure of expectations. It is an unnecessary condition because WE are Sovereign! WE have the power to choose it not happen. WE have the power of self-governance.