Monday, June 24, 2013

Return to Competition

After 5 years of manipulation by governments and the global banking system of our money flows, interest rates and whole industries such as automotive, banking and is time to return to free markets and fundamentals of capitalism.  The longer we stay connected to the "life support" of manipulated economies ("they" call it "quantitative easing")...the more difficult it will be for market economies to survive on their own "steam" based on real math.

As this article on the BIS banking group suggests, our combined world governments have been surviving on creative math, false interest rates, and false currency valuations for too long.  As we saw this past week, the minute the "markets" start hearing that the "patient" (global economies) is about to come off the respirator of oxygen (cash infusion) and blood transfusions (free credit or credit swaps)...the fundamental investors start betting AGAINST survival of the patient.

A large part of the problem is the insane regulatory systems of governments, tied to unrealistic taxation levels, the combination of which are snuffing out any chance for capitalism to work.  The globe has traded in competition where there are "winners and losers" for a model of "too big to fail" or "gain without pain".  We global patriots are waiting for the restart we believe is coming soon...where institutional controls and protectionism are traded in for real change in currency valuations (some form of global currency) and consistent, fair global trading agreements for ALL countries...not just a few superpowers. Meanwhile, it is obvious that large governments and banking institutions are putting off that day of reckoning for as long as they can with their voodoo numbers (1+1 doesn't equal 11), false economic bravado and the belief that THEY can sustain global equilibrium by tax and spend redistribution of world productivity. You just cannot have tax rates of 40-80% in some countries and expect there to be an equal playing field in international trade and profit sharing. It is time to get back to the fundamentals of business and rational finance.

I continue to believe that for the trillions that have been given or lent to big businesses world wide this past 5 years of global recession by governments and central banks (from the tax incomes of "the people") economies could have rebounded much faster and efficiently if those trillions had been put in the hands of entrepreneurs, small business people and farming coops around the globe.  If those funds had been released to more micro enterprises via local MFIs, Cooperatives and localized savings and loans, we would have seen faster recovery in real jobs, innovative businesses and quality consumerism from a stand point of cash savings versus "credit" that continues to fuel consumer's appetites.  Economies prosper and grow from the grass roots of small business and savings of average individuals for their futures...not by filling the tax coffers and supporting all the special interests of government institutions and mega corporations whose CEOs make millions per year while minimum wages are a pittance and the masses are kept in the box of irreversible debt and dependency on this state-corporate complex of which the "developed nations" have become.

The power pyramid is upside down. The world is under the control of too few who are determining everything for the masses. Meanwhile, the masses are starting to take to the streets worldwide to demand freedom from these machinations. From Brazil to the Arab world to Indonesia and China, the PEOPLE are starting to wake up to their puppet state of existence. They are starting to rebel against controls of their economies, high taxes for redistribution...and their not getting much in return for those taxes. There is a resurgence of understanding that private enterprise is always a better model for motivation and efficiency than big government "give away" programs or "programming",  Private education has almost always been more effective than public education. Private charities tend to release higher percentages of contributions to the needy than government programs. Consumption or transaction tax will always be a better, fairer model of taxation than INCOME taxes which sucks the air right out of creative, forward moving "sails".

It is time to return to a model of private enterprise and yes, survival of the fittest.  The sacrifice of the fittest to support the weakest is not working.  This is a sure recipe for the downfall of the human race.  When we allow failure to be rewarded while success is punished....we will never see true, sustainable recovery of our weak human condition.  We need to let some institutions die a just and timely death...while letting new, fresh, rational ideas and businesses grow and flourish.  Otherwise...we will all continue down the drain of global mediocrity, endless failure of altruism and total destruction of the human spirit.

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