Andy Haldane:: Still making sense – ‘Central banks should admit their mistakes’


My admiration for Andy Haldane‘s “thought leadership” grows with every paper, article, presentation or speech…he isn’t misled by symptoms because he understands what lies at the root of our global financial “difficulties”. After all, if a Director of the B of E is going to publish a paper on systemic risk, with a Professor of Zoology you would need to make sure you were on pretty solid ground, OR accept that the men in white coats could come to take you away at any time!!!

What WE need now is for such influential individuals to embrace this new thinking and to lead the organisations, with which they have influence, away from their point(s) of “critical complexity” in order that they can build the RESILIENCE necessary for times of such financial volatility. Whilst in his role at Bank of England, he hasn’t shirked from communicating a fundamental lesson about complexity, the threat of contagion, systemic risk and the fact that we are dealing with uncertainty (unknowns) as distinct from risk (knowns) – on the basis of the available evidence, this is considerably more than can be said for many in the risk management business within financial services! Read more of this post

FT.com: Financial institutions stare into the abyss


An illustration depicting the shaky situation of financial institutions

The world economy once again stands on a precipice. Finance ministers might want to look straight ahead, but investors are forcing them to peer down to the abyss.

As advanced economies slow sharply and emerging economies wonder whether inflation or recession is the greater threat, the need for finance ministers to find a way to achieve their ambition of “strong, stable and balanced” global growth has rarely been more urgent.

Christine Lagarde, the new managing director of the International Monetary Fund, has urged countries make necessary adjustments to restore confidence.

“I believe there is a path to recovery, much narrower than before, and getting narrower. To navigate it, we need strong political will across the world―leadership over brinkmanship, co-operation over competition, action over reaction,”

Could it be that it takes for the global economy to, once more, stand on the very brink of collapse before common sense prevails?

An institutional culture driven by Greed, Fear and Ego brought us to the edge and has been allowed to prevail as the people who created the problems were “trusted” to resolve them!

Trillions have been “wasted” on sustaining a false market, supporting failed Financial and Political institutions whose flawed philosophies and (morally) corrupt culture were exposed long before the 2008 collapse. They have been allowed to, essentially, micro (mis)manage – nationally and regionally – issues that required an holistic perspective (across domains), clear decisive leadership and macro management. Read more of this post

The Truth about money: Money as DEBT


Rothschild banking quote

This video is a pretty long (almost 50 minutes), but a relatively simple, explanation of when, how, why money came to play such a vital role in all of our lives.

To get the most out of this lesson I would recommend:

a visit to the bathroom

a comfortable chair

activated voicemail

an insulated drinks container…so large that it could accommodate a Starbucks barista

cream or hot milk

a jug of fresh coffee – to be poured into the (above) unfeasibly large receptacle

several sweet (fattening and unhealthy) treats

a stress ball OR details of your nearest anger management class

cigarettes and associated paraphernalia ( OPTIONAL in such politically correct times)

All of this BECAUSE the truth about money is that you will rarely get the truth from the people that are best placed to give it! For exactly the same reasons, those whose integrity has been “impaired” by its lure, don’t really want to talk about it in too much detail either.

HOW COME? Easy because its creation is relatively straightforward. That may go some way to explaining exactly why those with most of it or most attracted by it made it so complex!!!