It is time for us to recognize that most of the world’s big conglomerates revolve money, don’t make money.
It is time for us to understand that this isn’t the formula of creating, sustaining and growing wealth:
– take money from the people who produce and save
– lend it to people who wish to spend more than they produce
– they will buy products and services from companies that grow none organically
– Companies borrow money from banks, money that banks don’t have
– banks create bundles of bonds, sukok, and other instruments to raise money from people who can afford it and people who can’t
– in the interim we will be adding to the mix some derivatives, futures, bundling of loans that no one cares if performing and selling them to institutions
– Institutions then sell them to other consumers who can or can’t afford.
One day some chain of the cycle fails to maintain the gimmick and some none performing debt and overvalued assets are discovered, people analysts and governments get concerned, the herd mentality drives some late panic post a little of denial, some organizations fail, governments get involved, companies and public exert pressure, governments seek to reverse the same herd mentality and start supporting the falling cycle.
Governments, central banks and every one else look around. It is a crisis. Let’s explain what took place in a simpler way. Let’s say economies are buildings and cities; a giant earth quake hits the cities. Some buildings go to ruins, others have serious major damage and are inhabitable. Most of us are homeless. people who run those cities find that the real solution is to get all those buildings down and rebuild, however this will keep many homeless for so long and will reveal the real damage SO let’s not. let’s keep what’s standing and do the needed to cover up the damage very fast and have it reoccupied, this way we will recover better and faster. this is what have taken place. a cover up, We all start playing the game no one understands- this is Capitalism surviving on the edge of a technical gamble, while the gamble continues.
Read more in my publication coming soon: Playing the game no one understands- Capitalism surviving on the edge of a technical gamble. (Phase 4 of The Blind loyalty to the rules of nonsense©)
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By Makram H. Hani
C.E.O. Arms &McGregor International Realty®
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