How did we get here? What is the puzzle? Why is it important?
How did we get here? I mean in terms that the financial system makes no sense to anyone with half a brain. The rigged “crony capitalist” system produces goods that really are not “essential” for a healthy contented and fulfilling life.
So I am going to define what crony capitalism means to me. I define it as capitalist system where the production targets are created through the manipulation of the general public to honestly desire products and services they may not need and certainly have no appreciation to the human and planetary cost of it’s manufacturing or delivery. Communism I think was a slightly different product but the old definitions of both systems are largely now irrelevant given the Forth Industrial Revolution. The only points most people can agree on now is that there is almost no stock market is working rationally. If we consider the PE ratios after 2010 on-wards no price discovery is occurring.
My definition is subjection and personal but the observation about the markets is factual. So what is the puzzle and why is it important?
First of all let us discover some fundamental knowledge about money. This documentary often discusses the relationship of the US Federal Reserve (Private) and the US Treasury (US Government) but you can pretty much substitute you own phrases like the Bank of England and UK Treasury Department. The Bank of England used to be privately held but actually became privatised in 1946. It was originally created to finance fighting against the French in 1694, income tax was introduced for the Napoleonic Wars which expires every year on April 5th… Hence the end of the annual UK tax period.