Page added on August 12, 2007
Making money is not the same as creating wealth. The objective of this article is to facilitate an understanding of this deceptively simple statement which, in turn, will facilitate an understanding of the dimensions of the problems now being faced by humanity. Hopefully, this will lead to a realization that these problems
…By contrast to wealth creation activities, making money is essentially a self-indulgent game, the rules of which will be outlined below. Bankers felt encouraged to devise the rules of this game because they are the prime beneficiaries of the game.
Happily, in the early expansionary phase of an economic megacycle the bankers’ game in fact offers a win/win opportunity to everyone. Loose monetary policies and debt add an afterburner of momentum to wealth creating activities.
Time passes. As the economic megacycle matures, and the previous generation of wealth creating activities loses its dynamism, the ageing economy begins to slow. Economic momentum deteriorates. Cracks begin to appear. Unhappily, At this point, loose monetary policies and debt become destructive.
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