What did Freud say about repeating an event with the wishful thinking of a similar outcome?
That’s right, crazy economists!
In the banking world, money laundering or money recycling is a normal part of the government’s daily business. It’s central to the progressive operations of central banking policy. Money laundering is why interest rates naturally rise and fall. Central banks believe by interfering with the natural flow of money recycling then the currency markets will be more stable. There’s a guarantee in the markets in general, very little stability, regardless of the central banking policies.
Overall, the markets are supported by their underlying multi-national corporations, MNCs, medium, and small businesses. If businesses are healthy and employees earn a living wage then the consumer driven economy will thrive. If the outcome equality gap is too wide as it is today the developed economies will flounder.
Biology101 in culturing bacteria populations demonstrate a valuable generalised life cycle principle. We start to grow slowly then experience exponential growth for a few centuries then we plateau and eventually die off. The bacteria culture model applies to all Imperial empires throughout history. However, central banking wankers believe it will be different this time.
Markets are healthiest when money recycling is freely exchanging between consumer and producer without much in the middle management realm. However, governments want their cut, so free money exchange is taxed at various levels of transaction. For simplistic example, I go to Coles and recycle my money for an AeroMintChocolate bar, delicious!!! 😋 Coles then uses the recycled money and recycles it again to buy more chocolates while hopefully keeping a bit of profits for itself, and the government again takes their taxes. The wholesale supplier gets a smaller cut of the revenue and again the government takes taxes. The producer earns the least while also being taxed by the government.
Sweden’s tax system is the best example of what a government should not do. Sweden’s highest individual income tax rate is 57.1%. Not coincidentally, Sweden also has the biggest free marketeering population colloquially known as the black market.
Sweden’s free marketeers are some of the best forward thinkers of our time in the money recycling industry. Cryptocurrency is one of the tools used to exchange money, and it’s about as untraceable as it gets online. The tumbler is pure genuis! But I digress...
Any exchange of money for goods and services is money laundering; taxes are but one example. Shopping at the mall, buying autos, dating, and other garbage are more examples of money laundering.
Money laundering is how a countries gross domestic product, GDP, rise and fall, consumer driven of course. Every cash note is a debt instrument, and debt instruments are by their vary banking nature, recycling bank depositors money.
Fractional Reserve Lending
Let’s talk about the biggest legal Ponzi scheme and money laundering operation the world governments love, fractional reserve lending. Fractional reserve lending allows banks to keep a fraction of its deposits then gamble the rest.
In the USA, banks are legally required to keep 3-5% of deposits and likely less with assclown POTUS in charge. For example, Cleatus deposits USD$100 million dollars in his regional bank. The bank is legally required to keep USD$3-5 million of Cleatus' deposit then the bank can legally gamble the rest. By gamble, I mean invest the monies by lending the remaining deposits to qualified loan buyers. The loans are then packaged into bonds and various other financial securities like mortgage backed securities. Mortgage backed securities and credit default swaps are fancy financial jargon for degenerate, high risk, gambling.
Loaning out deposits is always a gamble or at least was before the USA’s Fed Reserve Bank with Congressional approval, European Central Bank with European Union approval, et other world central banks decided to bailout the high risk banking gamblers.
What should have happened
When non-corrupt entities do high risk gambling and lose their initial stock, loan or bond investment, it’s called a bail-in. The stock shareholders are the biggest losers followed by the preferred stock holders all the way up to the senior bond holders. The free market punishes high risk gamblers. It also rewards high risk gamblers, but the free markets must maintain the balance.
World governments' bailout interference broke the free marketing system. The new disabled markets are propped up by financial heroin known as bailout money or quantitative easing (QE). QE is another fancy financial term for high risk gambling of loans given out to poorly run sovereign banks, see Portugal, Italy, Greece, Spain, (the PIGS) etc, and other poorly managed multi-national corporations, MNCs, see China’s Construction Bank, etc.
QE funds launder public taxpayer funds to save dinosaur business models. World governments believe they need to save their high risk institutional investors=gamblers because their institutional masters bribed them to do so, colloquially known as lobbying. It baffles me that politicians act in the best interest of institutional gamblers vs their fiduciary duty to represent their constituents.
If the governments accepted free markets then why would any profitable MNC need a handout?
Free markets remove the poorly run MNCs. The profitable MNCs will do fine on their own. Disabled markets where we live now in the 21st century, enable dinosaurs to disease the majority. The central banks created a financial plague and the more they resist free market chaos then the deeper the disease will seep. Our world governments' should mind to their fiduciary responsibility in individual welfare programs and leave the MNCs to sink or swim in the free markets.
Governments label money laundering as bad when they don’t get their cut. Government money laundering, taxation or redistribution of wealth, is public sector organised crime but a necessary evil. I do agree in basic human privileges i.e. hygiene, indoor plumbing, electricity, shelter, food, and public wifi. And it takes loads of money laundering via government taxes. Philanthropic organisations also help our less fortunate to a lesser extent and fulfill basic human privileges. However, governments tax collection and funneling the monies to specific individual welfare programs is at the heart of the world governments duties.
Individual welfare is consistently on the chopping block while corporate welfare is consistently breast fed. Governments prefer laundering monies back to the greedy, corporate welfare. The top 3 reasons governments want to fluff corporations are kickbacks legally known as shareholder dividends, borderline legality nepotism, and downright theft known as under the table payoffs.
As an investor, I, like Warren Buffet think there are better ways to launder money than back into the hands of the already wealthy. Warren Buffet’s MNC, for instance, has never paid a dividend. However, gamblers' recycled monies in Buffet’s MNC enjoyed 19% annual returns for the first 50 years of business.
Back of the envelope math, (1.19^50)*10000 yields USD$59 million for every USD$10000 money invested, not bad, eh?
Don’t get me wrong, I do enjoy my annual government investment redistribution "check" as well as shareholder dividend checks. They provide me more opportunities to recycle the monies where I want. Empowerment is strong with this one! ☺
I prefer to launder the monies back into the hands and mouths of the less fortunate. It’s why I choose to live in emerging markets. I can freely recycle wealthy USA monies to our hygiene heroes i.e. cleaners, garbage collectors, hotel maids, etc. I also enjoy the spices of life.
I also recycle my USA knowledge and shared experiences with the less fortunate, actually anyone that is curious. There’s no greater feeling than seeing the lightbulb of understanding in one of my grasshopper’s eyes!
In Cambodia, I laundered my knowledge with the curious. I found one on one or two on one as healthy small Sensei-grasshopper recycling events. Anything more and my grasshoppers lost focus. We live in the most knowledge stimulating times of our lives, so I understand as a Sensei, modular learning is best.
My fav Sensei exercise is Show, Do, Teach Others. Show, Do, Teach Others is a human factors engineering concept and great for quickly learning tactile operations. For example, I Showed the Irish Place French backpacking bartenders how to play Fringe-y Catering, one of my invented games, see blog. I then made the ladies Do the Fringe-y Catering game until they didn’t need my help solving the puzzle. Finally, I encouraged the Frenchies to Teach Others.
“Fringe-y Catering, a (re) engineering game"
Showing or passive instruction, grasshoppers retain 10-15% of laundered knowledge
Doing or tactile learning, grasshoppers retain 50-75% of laundered knowledge
Teaching Others learning, grasshoppers are empowered and become apprentice Sensei’s where the laundered knowledge sticks around 80-95% and the more we Teach Others, the better the recycled knowledge stays. ☺
Laundering knowledge is the best luck one can pass along. A smarter person will more likely be a more productive person. A more productive person is more likely to earn monies eventually, and the governments will likely receive more recycled monies in the long term.
Proprietary platforms are a relic of the past. A smarter, open knowledge platform is the way forward. Governments would be wise to invest in and adopt open source learning platforms like the Khan Academy, EdX, etc. I understand job security; however, more revenues are to be gained via open source evolution and adaptation, see Linux, init5. 😍
Start and/or continue grasshopper-Sensei knowledge recycling relationships today; the laundered life we change might be our own and more importantly, our less fortunate friends! ☺
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