It's quite likely we passed a complexity point where a small group of people can't perfectly manage this system around the end of the last century.
any systems related to human society have
always been to complex to handle efficiently by a small group of people. The delusion that they can do so efficiently is a dangerous one and lies at the root of pretty much every problem human society is facing today. The basic problem has to do with
information not being able to flow without distortions in a centralized system and executive power not lying where there is the biggest abundance of relevant information (with the individuals directly involved with a given situation)
Completely agree, this is why the invisible hand of the market always works infinitely better. The great depression, caused by the FED, was proof positive that they could not control or understand the system well enough.
However, they were able to
mask their lack of control and understanding and maintain relative stability since then, by taking a continuously accommodation approach. This required continuous inflation and continuously increasing leverage in the banking sector, any 150 year chart of these shows this, we have had ~80 years of artificial stability at the price of steady inflation and credit expansion.
But, now that the economy's reached debt saturation, their ability to
mask their lack of control and understanding is no longer working. The result of this is increased volatility with bigger swings up and down as their masking mechanisms lose effectiveness and the system spirals more and more out of control. That is what I was trying to say in the quote above, not that they ever were able to control the system, but that they did have some tools, tools that are no longer working...
