Why is it that everyday it seems as though the financial world is in termoil. Well its simple ....absence of accountability.
The absence of accountability comes from the following:
a) Government's
b) Banks and Financial Institutions
c) Investors
d) and of course you!
If you decide for example to vote for individuals to ascend to Government or Local Government positions you must be absolutely sure they can handle financial matters. It is a sad fact that many people do not understand money or how it works. So I have decided to let some of you who bother to read this blog understand how the money systems work.
Some Governments have chosen stimulation packages in an attempt to create wealth and so kick start their economy......this is wrong because when you administer stimulation for example in a hospital the patient has died and you are only inducing a vaguely percieved indication of life for the people stood around in the emergency room.
Here are the rules Governing Money
1) There is no Money.
2) Governments have no money.
3) Banks and Financial Institutions have no money.
If there is no money where does money come from.
1) Money comes from the hardwork of individuals who create, manufacture etc. and from nothing else.
2) If no one is creating then no wealth is created. Hence the state of most of the economies today.
3) Wealth does not come from world leaders, politicians, accountants, bank managers/fund managers, infrastucture support, sevice industries, students, children and the like.
So if only part of the population is "working" the rest of us are living on the back of your hard work.
It is estimated that if you strip out all the hangers-on shown on line 3 then only 10% to 15% of the population actually create wealth.
Many countries have reached a saturation point where they cannot afford anymore hangers-on. Yet policies adopted in the main western democracies continue to place unbearable strains on themselves and who have absorbed massive increases in poulation without increasing the create, manfacturing output to support these population shifts.
For an example in the E.U. people are moving from the east to the west. They often bring large families which have a right to health, education, housing etc all of which are ever increasing demands on the host countries ability to finance. Hence the deficits!
Until this issue is addressed by creating more create and manufacturing plants, etc then the countries that are running deficits now will continue to run deficits in the future and markets will fail.
