Thursday, April 14, 2016

The Entire Status Quo Is a Fraud

http://charleshughsmith.blogspot.com/2016/04/the-entire-status-quo-is-fraud.html?m=1

centralized hierarchies select for fraud and incompetence. Now that virtually every system in America is centralized or regulated by centralized hierarchies, every system in America is fraudulent and incompetent.

Nassim Taleb explains this further in his recent article How To Legally Own Another Person (via Lew G.)

The three ingredients of fraud are abundant: pressure (to get an A, to please your boss, to make your sales numbers, etc.), rationalization (everybody's doing it) and opportunity.

Taleb explains why failure and fraud become the status quo: admitting error and changing course are risky, and everyone who accepts the servitude of working in a centralized hierarchy--by definition, obedience to authority is the #1 requirement-- is averse to risk.

As as I explain in my book, these systems select for risk aversion and the appearance of obedience to rules and authority while maximizing personal gain: in other words, fraud as a daily way of life.

Truth is a dangerous poison in centralized hierarchies: anyone caught telling the truth risks a tenner in bureaucratic Siberia. (In the Soviet Gulag ,a tenner meant a ten-year sentence to a labor camp in Siberia.)

And so the truth is buried, sent to a backwater for further study, obfuscated by jargon, imprisoned by a Top Secret stamp, or simply taken out and executed.Everyone in the system maximizes his/her personal gain by going along with the current trajectory, even if that trajectory is taking the nation off the cliff.