World economy is in melt down. It is in turmoil. World leaders gather. They declare: "Let us change the financial systems". Experts in the field endorse it. None of them seems to know or say what exactly the changes they want made.
Do the public the world over know anything about it i.e., the meltdown, turmoil, financial systems change etc.? Assuredly not. They suffer the result of whole lot things, namely, increased cost of food and life necessities.
There was Enron in the U.S.; there is Sathyam in our own country: these are some of the entities that set fire to the world economy.How many more Enrons and Sathyams are there amidst us still, parading themselves across the globe as paragons of financial virtue, God only knows. To imagine is fearful.
One thing everyone knows is that Enron and Sathyam played,displayed and overplayed NOT with their own money but with people's money.
It might interest you to get to know the system that created this Frankenstein that allowed Enrons and Sathyams to "play display and overplay" people's money to the very detriment of the people themselves.
This Frankenstein was not created overnight. It came about over a pretty long period of time, may be centuries, so long that we tend to accept it as ever-present and permanent and as something that cannot be tampered with; much less, eliminated altogether.
When individuals prosper, nations prosper. This individual prosperity followed the industrial revolution in the West. Inventions were many, especially of those that have had to do with day-to-day-life-needs appliances, appliances that made and continued to make life easier. Demand for appliances increased. Mass productions were made possible.
This activity of production and marketing was all started in the beginning as family-run business, mostly single person-run activity. Size of growth created group-run activity, then Private Ltd ones and finally Public Ltd ones. The size of manufacture and marketing of modern day appliances or gadgets that transform the drudgery of daily life into one of pleasure has been and continues to be so huge that the Governments failed to see the monsters in the waiting which would pounce upon the loopholes in the statutes. Statutes became necessary to support the systems to cater to the needs of the growing appliance manufacturers. The most important of them is the share market, especially in the so called "open, capitalist" countries. Rules and regulations have been made and enforced on the functioning of the share market i.e., the exchanges. These exchanges have been and continue to be a byproduct of the institution of Public Ltd concerns. No amount of meddling or tinkering with any byproduct can change the colour and course of the main product.
This has been amply demonstrated by the Enrons and Sathyams. So what are we to do eliminate this Frankenstien? Simply "kill" it.
Would killing this Public Ltd. system of business do to douse the economy on fire? Decidedly not.
Alternatives have to be made. We have to go back to the origin days of single-person run business mode. Only extend all the benefits and concessions now extended to the Public Ltd systems. Only buying shares and losing them to Enrons and Sathyams won't be there. No board of directors, either. Only one person runs any business and takes responsibility in-toto. Governments have to be strict on enforcing regulations.
General public can make deposits and get interest/dividends as the case maybe. Both investment and interest should be underwritten by governments.
Cheating investing public should be equated to anti-national activity and carry capital punishment, no less. Otherwise uncontrolled economy would result in chaos like unbridled democracy turning into dictatorship.
Jan 11, 2009
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