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The Coming Crash Is Simply The Normalization Of A Mispriced Market


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Just as forest fires normalize the forest's complex ecology by turning deadwood to nourishing ash and opening up the forest to new growth, in an analogous way crashes clear markets of financial deadwood and cartels that have blocked new growth.

I explain the analogy of the forest fire further in The Yellowstone Analogy and The Crisis of Neoliberal Capitalism

We are living in a dying forest where fires have been suppressed at ever greater cost bcause the deadwood--the central bank and its cartel-cronies--are doing everything in their power to maintain their perquisites and power.

That's a 200-300 year long-wave cycle, and it's suggested nature and economic long cycles function in inherently similar ways.

In effect there is a long wave of forest growth, followed by a major conflagaration and a slow period of regeneration. Growth is most luxuriant and varied immediately after a major fire. For quite logical reasons, the forest is not very flamable during the recovery period when a few widely spaced saplings and low-lying vegetation keep the forest floor moist. Neitehr are major fires likely during the many decades when "the treetops rise too far above the forest floor to be easily ignited from below." - but during the climax stage when understory of old-growth forests is littered with dead trees and rotting under-brush, a spectacular fire is almost inevitable. It is only a matter of time until lightning strikes in a dry season and the whole flammable mix explodes.*

*This pattern of growth and conflagration is not unique to Yellowstone. Some Florida pine forests, for example, actually require fires in order to survive. The Florida pines have evolved so that their cones will not open to release seeds unless they are heated to a high temperature by fire. - James D. Davidson.

Edited by Venger
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  • 415 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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