AP Story: Bernanke: Fed to hold off on steps to aid recovery.
There is a general consensus today that in the upcoming elections the economy trumps all of the cultural issues that have long divided liberals and conservatives. On one extreme of the debate are those who believe that in the midst of our economic crisis, we must commit to spending whatever resources we possess, even borrowing more as needed, in order to restore our economy to a balanced forward motion. On the other extreme are those who say that we must harbor our resources, cut our expenditures and bide our time so that the economy can restore itself to its natural balance and growth.
Let me recount an experience I had that might help you decide which course of action you should support.
As readers of this blog know, I am an avid and lifelong sailor. Sailing is all about balancing natural forces through a process of continuous feedback and control. It is like walking a tightrope in which the enormous and impersonal natural forces of wind and sea can be turned to the seafarer’s advantage by finding and managing a dynamic balance point between those forces that enables forward progress.
At sea it is the situation that determines how the sailor selects a strategy. When the boat is in balance, only very small adjustments are needed to keep it on course and safely moving forward, but once the system becomes unbalanced, the conservatism of small adjustments is no longer sufficient. and more dramatic tactics become necessary.
Some years ago I was doing a solo race that took me some miles off the coast of Santa Cruz, California and well out of sight of other boats. On the upwind leg of the race things worked quite well, but then came the time to turn downwind and set the spinnaker. I clipped into a safety line and as I moved to the bow to hoist the sail an unexpected wave struck the side of the boat and I was thrown overboard into the cold waters of Monterey bay.
Although I had given thought to the possibility of going overboard and had taken the precaution of using a safety harness that clipped me to the boat, I was unprepared for the chaos that ensued once I was in the water and no longer controlling a balanced boat.
At first I wasn’t very worried. I was firmly tethered to the boat. All I needed to do was to get back onto the boat, retake control, and start racing again. But it wasn’t as simple as I had imagined.
To begin with, the boat began to oscillate out of control. First it would right itself because of the weight in the keel. Once righted, the partially hoisted spinnaker would fill with wind and violently knock the boat down again. The effect of these uncontrolled oscillations was to produce a zig-zag motion that dragged me through the water.
My plan had been to use the step at the back of the boat to get back aboard, but each time a tried to use the step, the violent motion of the boat pulled me back down into the water. After several tries I realized that my exertions, along with the cold water, were quickly sapping my strength. I also knew that in the Monterey Bay waters, hypothermia would start killing me after about 20 minutes of immersion.
It then dawned on me that my plan for recovering control of my boat had become untenable. My conservative strategy would be to ball my self up to save my body heat in the hope that, given more time, some external forces would solve my problem. My liberal option was to carefully devise an alternate plan and expend my rapidly waning resources on one go-for-broke effort at self-rescue.
Obviously, I survived that day and now I leave it to you to figure out which approach I used.
In retrospect, my brush with death at sea was a learning experience.
1. I have stopped racing sailboats alone. There is risk enough in putting to sea in small boats.
2. I now have a better understanding the dynamics of being thrown overboard and have created controls that I hope will work better should I ever be in that position again.
3. I know that my mitigation of risk will help make me a safer sailor but I also know that risk can never be eliminated. Sometimes loss of control will create situations in which one must one must go-for-broke to avert disaster.
Solo risk taking, the idea that unmanaged external forces will keep things balanced, belief that you can always be in control, and belief that you can predict all eventualities and devise foolproof methods of self-rescue, are all symptomatic of the thinking that got us into our current economic circumstance. How to go about rescuing ourselves from our delusions is not a matter belief. It is a practical matter that requires a sober estimation of our current situation.
