Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
China's Grand Plan to Take Over the World - 19th Nov 19
Interest Rates Heading Zero or Negative to Prop Up Debt Bubble - 19th Nov 19
Plethora of Potential Financial Crisis Triggers - 19th Nov 19
Trade News Still Relevant? - 19th Nov 19
Comments on Catena Media Q3 Report 2019 - 19th Nov 19
Venezuela’s Hyperinflation Drags On For A Near Record—36 Months - 18th Nov 19
Intellectual Property as the New Guild System - 18th Nov 19
Gold Mining Stocks Q3’ 2019 Fundamentals - 18th Nov 19
The Best Way To Play The Coming Gold Boom - 18th Nov 19
What ECB’s Tiering Means for Gold - 17th Nov 19
DOJ Asked to Examine New Systemic Risk in Gold & Silver Markets - 17th Nov 19
Dow Jones Stock Market Cycle Update and are we there yet? - 17th Nov 19
When the Crude Oil Price Collapses Below $40 What Happens? PART III - 17th Nov 19
If History Repeats, Gold is Headed to $8,000 - 17th Nov 19
All You Need To Know About Cryptocurrency - 17th Nov 19
What happens To The Global Economy If Oil Collapses Below $40 – Part II - 15th Nov 19
America’s Exceptionalism’s Non-intervention Slide to Conquest, Empire - and Socialism - 15th Nov 19
Five Gold Charts to Contemplate as We Prepare for the New Year - 15th Nov 19
Best Gaming CPU Nov 2019 - Budget, Mid and High End PC System Processors - 15th Nov 19
Lend Money Without A Credit Check — Is That Possible? - 15th Nov 19
Gold and Silver Capitulation Time - 14th Nov 19
The Case for a Silver Price Rally - 14th Nov 19
What Happens To The Global Economy If the Oil Price Collapses Below $40 - 14th Nov 19
7 days of Free FX + Crypto Forecasts -- Join in - 14th Nov 19
How to Use Price Cycles and Profit as a Swing Trader – SPX, Bonds, Gold, Nat Gas - 13th Nov 19
Morrisons Throwing Thousands of Bonus More Points at Big Spend Shoppers - JACKPOT! - 13th Nov 19
What to Do NOW in Case of a Future Banking System Breakdown - 13th Nov 19
Why China is likely to remain the ‘world’s factory’ for some time to come - 13th Nov 19
Gold Price Breaks Down, Waving Good-bye to the 2019 Rally - 12th Nov 19
Fed Can't See the Bubbles Through the Lather - 12th Nov 19
Double 11 Record Sales Signal Strength of Chinese Consumption - 12th Nov 19
Welcome to the Zombie-land Of Oil, Gold and Stocks Investing – Part II - 12th Nov 19
Gold Retest Coming - 12th Nov 19
New Evidence Futures Markets Are Built for Manipulation - 12th Nov 19
Next 5 Year Future Proof Gaming PC Build Spec November 2019 - Ryzen 9 3900x, RTX 2080Ti... - 12th Nov 19

Market Oracle FREE Newsletter

$4 Billion Golden Oppoerunity

From Organised Religion to Government - The Fall of Confidence

Politics / Social Issues Mar 06, 2015 - 12:23 PM GMT

By: Dr_Jeff_Lewis

Politics

Institutional confidence is akin to gravity. We know it’s there, and we understand a lot about it - but we haven’t yet been able to explain it adequately enough. At least not enough to quantify its relationship  - or unify gravity with the other physical forces that we do understand. Of course, we are much further from unification of the interactions between confidence (behavior), the economy, and finance. 

It’s easy to see the effect finance has on the economy. One can even map the ultimate effect through history, which is riddled with failed currencies. Ultimately, the failure of an untethered financial system culminates with the collapse of a currency. 


Just as gravity is crucial for keeping things from floating away, sound money is the force that is crucial for controlling the trajectory of modern financial policy. 

Somewhere along the line, confidence pushes things over the edge, and the tipping point comes from a confluence of failures in faith. 

This may be where we are now. When you hear people speak of “something afoot,” this is what they mean. 

Of course, financial confidence is an abstract concept formed in the collective view--a view maintained by truly dangerous falsehoods. 

We may not be able to unify confidence with the real economy and a financial system unhinged, but we can all come to appreciate its gradual thinning. 

Note: Some people assume all finance is bad. I don’t. But I believe that a financial system should be rooted firmly to some physical reality. It should be fixed to a substance that can be easily valued, measured, and is free floating in the market place. What that literally looks like and how we could get there from here is another topic for another day.  

Cracks of confidence can appear over broad stretches, in a variety of institutions that one may find quite surprising when looked at in the overall. 

For example, a friend recently sent me a rant about the health care system. It went as follows:

“The Sick Care fiasco has so many problems that have metastasized over decades of abuse that I don’t know it can ever be fixed.  Between pharmaceutical corporations, research universities, patent law, doctors, hospitals, FDA, CDC, and other government bodies, trade associations, insurance companies, psychiatry, medical coding, no-fault settlements, Hollywood, Wall Street, and the ignorant ‘just-give-me-a-pill’ consumer/patient - we are stuck in a downward spiral.” 

I immediately wrote back with a quasi-MadLib to exhibit how easily the same could be said for other institutions. My version:

“The {Sick Care | financial system} fiasco has so many problems that have metastasized over decades of abuse that I don’t know it can ever be fixed.  Between {pharmaceutical corporations | giant multinational banks}, {research universities | economics departments}, {patent law | zero prosecutions}, {doctors | HFT-dark pool exchanges}, {hospitals | agency revolving door}, {FDA | SEC | CFTC}, {CDC | Federal Reserve | Treasury | IMF | World Bank}, & other government bodies, trade associations, insurance companies, {psychiatry | general ignorance  |  mass propaganda}, {medical coding | financial reporting | fictional accounting standards GAAP}, {no-fault settlements | two-tiers of justice}, Hollywood, Wall Street, and the ignorant {‘just-give-me-a-pill’ | ‘just give me yield’} {consumer/patient | investor/Muppet} - we are stuck in a downward spiral. 

Institutions are strong, cohesive sets of beliefs and expectations held in the collective mind. 

Institutional confidence or “confidence” represents the great unquantifiable component of modern finance. It simply doesn’t fit into the equations, the risk profiles, the algorithms or the charts. 

There will always be a few, however, who hang on to the conceptual idea, no matter how poorly the home team performs or how invasive they become. 

The problem we face with institutional confidence is that the remaining fans have near absolute power — they can make things appear to be as they are not for an extended period of time. 

These collective patterns may have made sense or might have worked at some point, but are now out of date. They are antiquated, afraid, and grasping for more and more power. 

Here’s a list of institutions in order of confidence from a Gallup poll taken last year. 

The Military
Small Biz
Police
The Church or Organized Religion
The Medical System
US Supreme Court
The Presidency
The Public Schools
Banks
The Criminal Justice System
Newspapers
Organized Labor
Big Business 
News on the Internet
Television News
Congress

Military at the top, banking in the middle, and Congress at the bottom. 

For more articles like this, and/or for a breath of fresh silver market reality amidst the stench of denial and technically meaningless short term price obsessed madness, check out http://www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com

    Copyright © 2015 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules