By Bruno de Landevoisin
The original intent and “raison d’etre” of our market based financial system was to facilitate capital formation and encourage investment / credit for enterprise expansion, through the establishment of efficient operational capital market exchange frameworks, so as to advance productivity and facilitate trade in the underlying economy.
Regrettably, the capital markets of today have entirely degenerated, morphed into a sanctioned global gaming racket, whereby the market venues and trading vehicles have disconnected, transmuted into capital investment in of themselves, with little or no relation to the real economy on the ground. Capital chasing the tail of advantageously positioned market capital is not the same thing as constructively invested working capital in actual human enterprise. One is speculative and self-seeking in nature the other is creative and generative in nature.
This financial free-for-all fracas drains substantial funding from substantive investments in tangible productive enterprise, creating gross misallocation of precious capital which is actually destructive to the underlying economic growth. The F.I.R.E. industry has become parasitical to the productive economy, and now serves primarily to extract value out of it, infrequently adding value to it.
Capital is best invested via local channels where the formation, operation and expertise in an enterprise is best understood. Today’s massive and rapid international flows of capital extending from one overseas over-leveraged global banking Goliath to another have suspicious socio-economic merit and are often destabilizing in of themselves.
This swiftly streaming synthesized approach to capital formation has brought us the following most troubling results:
1) Gross misallocation of genuine productive investment in the crucial SME economy
2) Excessive market volatility which stymies business development and trade
3) Repeat massive asset bubble dislocations
4) Lethargic economic activity
5) Extreme income inequality
6) Facilitated Fantastic Fiscal deficit spending sprees
7) Encouraged off-shoring of the manufacturing base
8) Conceals real inflation
9) Decreases Income & Job growth
10) Eviscerates the very essence of money itself
The gambling house monetary authorities and the TBTF Casino whales are so fearful of losing their mountain of comped chips, that it necessitated them to abandon the free market principles this county was founded and built upon, so as to synthetically manipulate and pin the Equity, Bond and Gold markets exactly where they desperately require them to keep the roulette ball in play.
They have spent in 7 years what they had spent in over a 100 years to do so…………………….sure feels like they are most desperate and about to recklessly lose all the marbles.