“A credibility trap is a condition wherein the financial, political and informational functions of a society have been compromised by corruption and fraud, so that the leadership cannot effectively reform, or even honestly address, the problems ot that system without impairing and implicating, at least incidentally, a broad swath of the power structure, including themselves.
The status quo tolerates the corruption and the fraud because they have profited at least indirectly from it, and would like to continue to do so. Even the impulse to reform within the power structure is susceptible to various forms of soft blackmail and coercion by the system that maintains and rewards.
And so a failed policy and its support system become self-sustaining, long after it is seen by objective observers to have failed. In its failure it is counterproductive, and an impediment to recovery in the real economy. Admitting failure is not an option for the thought leaders who receive their power from that system.
The continuity of the structural hierarchy must therefore be maintained at all costs, even to the point of becoming a painfully obvious hypocrisy.
The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery.”
JESSE
card802 says:
Reading this quote reminds me of the new book by Peter Schiff. (bought through TBP link)
Pretty hopeless, it is what it is, this corruption and idiocy must run it’s course to the bitter end. Politicians will never change until the people demand they change. And right now the people have been duped into believing the government has a clue and the answers.
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1st January 2013 at 9:41 am
Phaedrus says:
Jesse is as good as it gets. Big fan.
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1st January 2013 at 12:13 pm