FIXING FINANCIALISM NOT CAPITALISM

How to fix the problem of financialism.

We must choose to fix the correct problem: You don’t conflate Capitalism(Rule of law – regulation) with Financialism(Absence of Rule of Law – regulation). Fixing financialism is easy. fixing capitalism is not possible. It’s impossible. Financialism is to capitalism as socialism is to capitalism: they are equally destructive.

The problem is one of measuring balance sheets vs income statements of the state. (a) measure everything, (b) definancialize (c) organize an economy by competency not by wishful thinking.

There exist a simple set of fundamental laws of competency, incentive, and measurement. Fundamentally these five rules are the levers of political economy:

  1. You choose either arbitrary rule by man and depend on credentialed or political competency, or rule of law, sovereignty, property, reciprocity, truth, duty, and markets, and depended on demonstrated competency.

  2. You choose whether to use the state as the principle venture capitalist and socialize maximum gains at the cost of low returns on capital and high corruption, or you use the market as the principle venture capitalist and maximize the privatization of gains limiting corruption, or you choose something in the middle.

  3. You choose whether the state maximizes taxation from private performance, or maximizes returns from state investment – dividing the responsibility for capital formation between the state (long term) and the private sector (short term).

  4. You choose to fully account for all capital by fully accounting for costs, or you choose to account only for income (velocity) without accounting for capital, or you choose only to account for condition without accounting for income or capital.

The optimum political economy is an intermixed (not mixed) economy of distribution of labor between state and private sector, separation of the monetary flow system into citizen consumption, zero interest from the treasury, liquidity distributed directly to consumers, and business credit outside the state. And to ‘gut’ the financial sector by moving it into the state, so that returns on state liquidity are used for redistribution by the state, while at the same time as maximizing national competition in international markets.

Now, everyone will hate the truth, but the national socialists solved the problem as is china today.