At Davos, Crisis Is the New NormalJanuary 23, 2013
Source: 1913 Intel
Crisis, in short, is the new normal.
And while the business community determinedly seeks opportunity in troubled times, even many an entrepreneur views the years since the financial crisis of 2008 as what Rich Lesser, the new chief executive of the Boston Consulting Group, called “a higher period of turbulence and uncertainty in the global economy than we have experienced in a very long time.”
The days in which “quants” and algorithms reigned supreme are gone, their increasingly untrackable results having helped the financial system spin out of control in 2008 and 2009. The heady triumph of capitalism after 1989 is also a distant memory, although its chief effect — that capital went global — remains a driving force of our age.
But global capital does not solve big world issues: debt and financial crisis, political paralysis or gridlock, the transformative effects of the digital revolution, climate change, resource shortages, shifting demographics.
“a higher period of turbulence and uncertainty in the global economy than we have experienced in a very long time.”
I have been thinking more and more that this type of period should last forever, or until a big crash is allowed to happen. When a positive feedback loop system goes from a pre-collapse state to a collapse state, and the collapse state is heavily suppressed, then new feedback will continue to build on an unstable base. The only way to fix the problem is through a massive crash, then start over.
Since just about everybody wants no crash, the West will continue to remain in an unstable state just like Japan.