So, global markets have decided that, having already received unbelievably vast amounts of public money to shore-up those financial institutions brutally raped and pillaged by grasping and greedy traders and speculators, they want even more free money to be pumped into their private little game and will not play anymore until they get what they want.
Having pushed their grubby and sticky hands as deeply as possible into the cookie jar of financial services, grabbing so much loot that their distended fists cannot now exit the neck of that jar of goodies, thereby blocking the legitimate movement of those goodies in and out of the jar, these traders and speculators are now refusing to let go enough of their ill-gotten gains to allow the movement of enough money to enable the rest of the planet to get on with earning a living.
Well, screw them.
Spearpoint has some suggestions for how this economic and financial crisis might be approached. Forget, for the moment, that what Spearpoint knows about economics and finances could easily be written – in three-foot high capital letters – on the back of a postage stamp. We need some common sense (albeit of the Spearpoint variety) rather than esoteric jargonised bulldust designed to maintain the vested interests and status quo of the present global economic system.
Firstly, a global economy (which, whether we like it or not, is what we have) requires a single, global currency. Remove the opportunity for speculation on a myriad of monetary units and the subsequent distortion of prices and values induced by the artificial and arbitrary determinations of one currency against another.
To all intents and purposes we have that universal currency now – the United States Dollar. So let goods and services be priced in Dollars. Let everyone be paid in Dollars, be they in America, South Africa, Pakistan, Argentina, France, Samoa, Russia or wherever. Let the price of, for example, a loaf of bread be the same everywhere in the world. Let one hour of a labourer’s work, (or a dentist’s, or a clerk’s, or a shop assistant’s) be equivalent worldwide in value according to skill, education and training.
If you don’t like the Dollar, then pick another name for it – or find something else to use as a currency.
Secondly, regulate, regulate, regulate. Make it difficult for selfish and unscrupulous individuals and companies to profiteer at the expense of others. If need be, restrict the number of trades permissible on any particular item or parcel being hawked. Similarly, restrict margins and commissions per trade. Let’s make it difficult for individual traders to make enough money to buy a C-class Mercedes on a single trade.
Thirdly, license every trader, every stockbroker and every trading house. Introduce stiff operating requirements and stiffer penalties for contraventions. Enforce those requirements and penalties and, for the purposes of audits, have every transaction fully recorded and signed off by the trader(s) in person.
Fourthly, in respect of the current crisis, issue blanket indictments against every trader, speculator, bank and trading house for investigation into unethical practices, recklessness, rank greed and potential fraud and/or criminal behaviour. Stop rewarding the rape and pillage of the system. Jail the bastards and seize their assets and those of their families and other beneficiaries.
Never mind about instilling confidence into the existing system – confidence which, strangely enough, was in plentiful supply up until a few weeks ago when every man and his dog in these banks, trading houses and bourses was happily screwing everyone else in sight. Rather set about instilling respect for ethical business behaviour and fear of the consequences of improper and reckless actions and mindsets. Confidence will follow as inevitably as the balls of the bull follow the ring in the nose of the beast.
Fifthly, operate the stock market system more along the lines of Lloyds Insurance – limit any one individual or company to trades that they can personally guarantee. If a trade goes wrong then the traders carry a personal liability to their investors and can lose their own assets to compensate their victims. Bankrupt the reckless and criminal thieves. Do this and watch sensible business caution permeate the world of trading.
Finally, and again in respect of the present crisis, close all stock markets for the next seven days. Then re-open them for four hours and gauge the response; if the traders resume their bad behaviour close the markets for another week – and continue doing so until the traders are prepared to play the game in an equitable and fair manner, sharing the bad risks with the victims of their excesses rather than only wanting to pocket profits without sharing the losses. The bulk of the global population will be no worse off than they are now (the markets are, essentially, shut owing to the actions of the banks and traders) and those banks and trading houses will risk being out of business in short order.
Simplistic? I have no doubt. But perhaps a start. Take the Golden Rule and work from there.
Spearpoint.
12th October 2008
Spearpoint's Points 