Can Obama Save The World?

by Dan Robles on 09/25/2010

Do the math – Interest on National Debt can go all the way up to infinity while Austerity measures can only go down to zero. There is tragedy looming at both ends of the political spectrum and the Golden Goose can’t fly much longer. Captain Obama is in a tough spot.

Someone will eventually need to gently lay the economy down in a nice soft spot with a just a few critical social programs intact. A task comparable to US Airways Pilot Capt. Sullenberger who successfully landed his stalled airliner on the freezing Husdon without ripping off the wings, catching on fire, splitting the hull, or sinking the ship with all the passengers inside.

Here is how the endgame is shaping up:

Through some secret signal, all of the World’s money barons will come together and agree to simultaneously lop off three zeros (000) from all financial balance sheets. This will effectively reboot the world economy. A $50 trillion debt obligation now becomes a quaint and manageable $50 billion debt. Unfortunately, a $500,000 dollar pension becomes worth about $500 bucks. The game will reset with champaign toasts and business-as-usual in a race to conjure new debt into existence. The recovery is on … for some.

Those who have exactly as much debt as they have tangible assets will enjoy a net zero impact. Those caught at the extreme ends with too little debt or too much cash will lose spectacularly.

A stoic and sober Capt. Obama is at the controls, should we be worried?

Well, maybe. Just to give you an idea of what’s happening in the cockpit: Capt. Obama will project his glide path into the visible horizon. If he can’t make it out to Hillary’s term, he will probably try to set it down right after he is re-elected and can still blame the GOP. The GOP will try everything they can to wrestle it down before 2012 – split hull or not – so that they can claim the presidency. If they win 2012 without the landing, they’ll land it soon after 2012 and blame it on Obama. Note that none of this has anything to do with aerodynamics.

Why should this inspire anyone’s confidence?

There are a few people in the back seats working really hard to build a parachute that will hedge their fall. None of the people near the cockpit, boardrooms, or stock exchanges have any idea what these passengers are doing – they don’t seem to care – instead, they are too busy topping off their debt to equity ratios for optimum survivability upon impact.

But, the hedge instrument is playing out in Social Media, slowly siphoning the factors of production into a new economic system. Some passengers are only inches away from jump-starting an alternate economy using a social currency backed by real productivity, not debt, in a new form of capitalism. All they need is an instrument that is only a little better than what’s flying now. Then, all the money in the world will convert to the hedge currency.

Now THAT’s monetization.

The guys near the cockpit will never see it coming – they’ll only see it leaving.  Obama just needs to keep it flying a little longer. That’s how Obama will save the World. Let’s hope he can swim.

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