The Nature of the Banking System

Nature understands size much better than humans. Nature penalizes size. An elephant will die from small injuries (a broken ankle) while a mouse with the same injury will survive. The eco-system will not perish when an elephant dies. Many more mice than elephants.

The removal of large species (whales, elephants, hippos) would impact the eco-system much, much less than the removal of small species (mosquitoes, flies, plankton). Banking is the opposite. One failure brings the entire system to a grinding halt. Nature is bottom-up; man-made systems are, generally, top-down. Nature is robust and we are fragile.

We tend to confuse long-term stability within man-made systems with permanent stability, and thus conclude (falsely) that we are smarter than nature. No empire lasts forever, yet at their peaks, its citizens predicted just that. No fortune lasts forever; money runs out. Long-term stability makes us complacent, in fact. So the longer a man-made system has existed (not a physical thing or a rule or a law) we should be more and more worried.



Comments are closed.