Wall Street gambling to a tune of $600 Trillion. Good video
Found this post on another website. Explaining the greed going on today.
An American businessman was visiting a small coastal Panamanian village when a small boat with just one fisherman docked. Inside the boat were several large yellow fin tuna.
The American complimented the fisherman on the quality of his fish and asked how long it took to catch them. The fisherman replied, “only a little while.”
The American then asked why he didn’t stay out longer and catch more fish. The fisherman said he had enough to support his family’s immediate needs.
The American then asked, “but what do you do with the rest of your time?”
The Fisherman said, “I sleep late, fish a little, play with my children, take siesta with my wife Maria, stroll into the village each evening where I sip wine and play guitar with my amigos. I have a full and busy life, senor.
The American scoffed, “ I am a Wall Street executive and I can help you. You should spend more time fishing and with the proceeds buy a bigger boat and a get a Web presence. A scalable go-forward plan would provide capital for several new boats. Eventually, you would have a fleet of fishing boats. Instead of selling your catch to a middleman, you would sell directly to the processor, eventually opening your own cannery. You would control the product, processing, and distribution. You would need to leave this small coastal fishing village and move to Panama City, then Los Angeles, and eventually New York City, where you would outsource tasks to third party clients to help run your expanding enterprise in a vertical market.”
The Fisherman asked, “but senor, how long will this all take?”
The American replied, “15 to 20 years.”
“But what then, senor?”, said the Fisherman
The American laughed and said, “ That’s the best part. When the time is right, you will announce an IPO and sell your company stock to the public and become very rich. You will make millions.”
“Millions, senor? Then what?” , replied the Fisherman.
And the American responded: Well, then you will retire, move to a small coastal fishing village where you can sleep late, fish a little, play with your kids, take siesta with your wife, and stroll to the village in the evenings where you will sip wine and play guitar with your amigos”.
The Moral of the Story – Before counting someone else’s catch – look inside your own boat and count the fish. You may have caught riches beyond your wildest dreams but simply haven’t taken the time enjoy them yet.
“If the American people ever allow private banks
to control the issue of their money,
first by inflation and then by deflation,
the banks and corporations that will
grow up around them (around the banks),
will deprive the people of their property
until their children will wake up homeless
on the continent their fathers conquered.” –Thomas Jefferson
After much thought and reading, the doom and gloom scenario of a possible catastrophic event like a World War has creeped into the realm of possibility.
A recent article published by the Telegraph in the UK talks about central banks monetizing public debt in Western countries to create inflation rather then defaulting on debt. This seems to be the case that has been taken recently by the Fed.
This would be a case in which bond holders of treasury debt would suffer most (China…). Im not stressing that this is just a bad scenario for China but for the U.S. alike. This could lead to capital flight (money invested into our economy immediately leave). If the U.S. does this, the rest of the world will suffer most. The U.S. is the largest economy in the world, consuming about 60% of the worlds annual production of raw materials, finished goods and services. Hyper inflation caused by monetization of debt would make it harder for Americans to buy goods and services produced abroad.
Japan is the second largest economy with consumption of about 20% of the world’s production, but that isn’t enough to make up the loss of American consumers and businesses. Foreign companies will have no choice but to leave the American market because exchange rates will be horrible and get worse day by day resulting in massive losses between the time money is received and the time it is sent back to their home country.
This would ultimately lead to the Dollar ceasing to be the worlds reserve currency. Countries that the U.S. is indebted to will also see the value of their investments in U.S. treasuries collapse as Washington cranks up the printing presses. This could lead to another Great Depression and possible war.
Now solutions to this are hard to come by but a real solution would not necessarily be popular and be easy. If the banks were allowed to fail a painful but quick recovery could have come about. This is usually not popular among politicians and would instead rather pose short term solutions to keep face. This is a very important time for the public to see that Keynes politicians who pose short term band-aids on massive leaks only to plug the hole for a very short time.
The benefits from this still remain that the public could finally wake up as well as the media to the real problems facing us. Hopefully a more informed public, media, and god willing government can emerge from a possible crisis. Let us hope we get the latter without the crisis.
Be sure to click on the links provided on the right under (Must Reads/Watch). 🙂