Insanity

Central banks around the world continue to exhibit insanity, at least by Einstein’s definition. They have expanded the global money supply by $10 trillion over the last two years.

The net effect of this is to recreate the circumstances that led to 2008’s epic collapse. The commodity spike is well underway, as the price of oil blows through $110 on its way to – who knows” – $200? This time the collapse will be worse and the recovery may not occur for many years, as sovereign debt will no longer be able to rescue the world.

We just wait for the scenario – wash, rinse, repeat – to run its course.

And that ECRI call? Unchanged. Film this morning.

How unrealistic optimism is maintained in the face of reality.

These findings indicate that optimism is tied to a selective update failure and diminished neural coding of undesirable information regarding the future.

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