“I have seen them, and they are a stiff-necked people. Now leave me alone so that my wrath may burn against them, that I may destroy them. Then I will make you into a great nation.” Ex 32
This brief video below is notable for an appearance by Yves Smith from Naked Capitalism.
A credibility trap exists when the regulatory, political and/or informational functions of a society have been compromised by a corrupting influence and a fraud, so that they cannot address the situation without hindering and implicating, at least incidentally, a broad swath of the power structure including themselves.
The status quo has at least tolerated the corruption and the fraud, if not profited directly from it, and most likely continues to do so.
The power brokers have become susceptible to various forms of blackmail. And so a failed policy can become almost self-sustaining long after it is seen to have failed, and even become counterproductive, because admitting failure is not an option for those in power.
The financiers will attempt to make the people an 'offer which they cannot refuse' again, as they did on the occasion of TARP, when they threatened to crash the economy.
The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustained growth and recovery.
I do not see meaningful reform happening easily, given the intractable hysteria which is gripping those wealthy few who are eager to seize and hold power. There is a portion of the public who think that whatever they believe must be true, whether the facts support it or not. And this is a great heresy against reason, and an abuse of faith. There will be no rapturous escape from judgement for this apostasy and lawlessness, except perhaps into madness.
There is an almost unbelievable tolerance of brazen bullying and deception, a sneering cyncism and disregard of any truth in people who say a thing one day, and then deny it and say a totally different thing on the next, without shame. Love grows cold even among the faithful, and lies abound.
This is the very epitome of the will to power. The western world and its leadership are at a crossroads. And the path ahead, if taken, means hardship, sorrow, and blood.