Post Comment

Setting up a capital market system by a government needs an initial investment made by that government for each citizen of the country in order to start seeing any return on the initial investment. In order to sustain and pay for the cost of running the government, and have economic growth for long periods of time.

We need to fix the gap flaw in the capital market system problem now!

Not just put another band aid on a wound that has been festering for 200+ years for this country, and 3000+ years for the world.

Every election that goes by without fixing the problem is just adding more band aids.
In the capital market system, only investment risk made will have any chance of a positive return of profit.

The solution is having the US Government finish what it started 200+ years ago. The freedoms granted in the constitution were great, but it is time to finish setting up the capital market system.

When the country became a Republic, and the first president was elected, the US Government set up a capital market system, and issued money by the government recognized through the nation as the medium of exchange. They only forgot the most important part! In order to have a capital market system an initial investment must be made by the government in each citizen in the country in order to have a profitable return. The investor is the government in the initial setting up of the capital market system, and that same issuing government will provide the structure for the citizens to use the capital market by providing security, and law and order. All the citizens gain more freedom and increased standard of living over time using the capital market system. But, only after the investment is initially made in each citizen living in the capital market system, by the government who set up the system, will the gap flaw be fixed, and the market will crash if the investment is not made. it is just a matter of time.
They forgot to finish setting up the capital market system.

NO investment was ever made. Not for 200+ years!

Without finishing the capital market structure set up, they went as far as they could to give freedom to the people. Giving up control, and giving it to the people. Without the investment in the capital market in the long run will collapse and fail. The founding fathers did not finish setting up the structure for the capital market, but they did buy some time in the capital market. The founding fathers idea will not work until the initial investment is made. Granted the freedoms that were granted were great, and positive. Those limited freedoms bought some time in the capital market system. Making the USA the most powerful nation on earth today. The capital market idea is a great idea, but the founders of the country who came up with it, did not finish setting up the structure for the capital market system to work for the long run. One reason might have been some did not want to have the capital market system, or some did not want to give up the control, and power to the individual citizen. For what ever reason after 200+ years later it does not even matter. That long run back then is here now. It is time to finish the job!

The initial capital market investment in order to make it sustainable in the long run, say, 5,000 years, or 10,000... is the initial capital investment must be made by the issuing government using the capital market system. After 200+ years, we all know the capital market does work. The USA is done with the test phase, to see if it will work, and ready to put up the final structure, and make the initial investment to just START the potential of the capital market system. Up to this point the capital market has not really even got started yet. The initial capital must be made as an investment into the capital market system by the issuing government who printed the money, or minted the coin. The initial investment is made into each citizen living within the country using the capital market system. This investment has very strict controls. To fend off all who want to hold on to the control. The money power will go to the individual citizen over time, and the roll of the government would shift towards building new trading partners who also are ready to invest in their people, instead of setting up programs, over taxing, over regulation, and all the rest, and putting Band-Aids on the problem with regard to the capital market system. The government also has important rolls in the nation outlined in the constitution of the USA. The growth would be far and wide, and the return on the investment from the government in the capital market is a return on the citizen living within the system life time productivity in the capital market. The citizen provides the return on the investment needed for the government to sustain itself, and protect the country from attacks, and all 3 branches of the Federal Government. This return closes the gap flaw, and reduces the need for assistance programs, as all citizens flourish in a free capital market.

The founding fathers never made the investment, nor has any other president, or congress. What are we up to now, 110th congress? Therefore; no returns came, or ever will come to the government who uses a capital market system, and money as medium of exchange within it.

The only way to sustain the government then would be through citizen tax collection, and other ways to force a return on the individual citizens living within the capital market system. The capital market system at this point (1935ish) Individual income tax laws, and other fees, and ways to collect money for the government services, and programs started popping up... With no initial investment made in it yet. The capital market system will put pressure on the government that set it up the capital market system in the first place. Then did not invest into it to keep it from putting pressure on those citizens living in the system, that for what ever reason, can not capitalize in the capital market because they don't have the money or the resources, or the time to do anything except work to pay the bills, and taxes. Hope to have some left over for a trip someday. Without the initial setup investment, the capital market will only work for those who can capitalize in it. the control will always be by those with more money in the system. Those who have less money, or are unable to capitalize in the market, (either by working for a business, or starting and running a business) will have no choice, or be forced to earn money in the capital market system. forced to earn money because the government needs to collect taxes in order to keep control, and law and order in the nation. Sooner or latter the capital market will fail if no initial investment is made; because, all the money will be consumed by the government to provide the services, and the few groups who were able to capitalize in the market, soon will loose all the money to the government who set up the capital market system without making the initial investment to make it work for the citizens living in the country who can not for what ever reason capitalize in the market. sick, retired, mental issues, what ever the reason, the capital market system does not care, and has no mercy to those who don't invest in it. Unless the government finishes setting up the capital market system, the system will crash, and fail for all who use it. Forced to earn money to support the government, not invest in the capital market. the government needs to collect tax in order to stay in control, when that is not enough, then the government will be forced to collect from the citizens who did capitalize in the market, and are capitalizing in the market to collect even more tax. The government then becomes in the business of tax collection, and setting up all sorts of programs to help those people out that are out of work, and not capitalizing in the market, and 10,000+ programs, and health care, and banking, and everything the capital market produced during the time the government bought 200+ years ago. When the time is up, the initial investment must be made, or the capital market will consume all the money for the government that set it up. All the money then would be consumed by the government and a few groups, and individuals, but everyone else would have no money, and no jobs. At this point the government can start hiring its own workers, and play some tricks on the capital market system by printing more money, borrow more money, rob Peter to pay Paul, or what ever it takes to stay in power. The USA bought 200+ years, but now without finishing the job, the capital market system will have no mercy on those who do not invest in it. With no initial investment in the citizen who will be living in the country using the capital market system, the government using that system, will have no return on the investment for using the capital market system. The return on investment being the citizen in the country for the government. governments invest in the individual citizen, and the citizen invests in a business within the capital market system.

Those who do invest, or can capitalize in the market system will make a profit if the product or service is wanted by anyone in the market place. And in fact the capital market system works so well that it has made the USA the most powerful nation on earth. Those freedoms in the USA bought some time, but capital market system must have the initial investment made by the issuing government in each individual citizen living in the country in order for the government to slowly withdraw from the capital market pressure, and start giving the money power to the individual citizen. slowly not needing all the programs, and transitioning the citizens into the capital market for employment, and reducing the money needed to sustain the government. For law and order, and defense, and all the rest.

A slow but sure process, but we need to finish the set up as soon as we can, before the capital market system is gone, and economic dictatorship sets in. like china. The old Soviet Union, or even a small country in the Middle East, take a look at what happens when a government issues money, and uses a capital market system without making the initial investment. At least the USA bought some time with freedom, and a good constitution. The profits are very good in a capital market if a return on investment pays off. Each US citizen will pay off a huge return on the governments investment. After the investment is made then the capital market will just be getting started. In fact the government has been able to sustain itself, and keep the freedoms in place outlined in the constitution. Some are not starting to crack from the capital market pressure. due to lack of setting up the initial investment in the capital market. Over all the tax collecting business has been good for the government. Punishing and taxing those who capitalize in the market. Then help those who can't capitalize, but most is just wasted investment funds, and none of the programs will work, or be needed in a capital market system when properly set up. The problem is without the issuing government investing in the citizens who are going to live in the country under a capital market system the gap flaw will always have groups with money controlling those with less money. A untold amount of valuable resources will be wasted on programs, and tax collection efforts to fill the gap flaw in the capital market system. If the gap flaw gets too wide, or too far out of control, where it is hard for any new venture risk capital, then the capital market will start to fail for all those not capitalized in it. those who are capitalized, or have some money power will control those with out money power. LUCKY for us, we have some freedoms left in this country. Without some freedoms, the USA would already be an economic dictatorship like China, or even worst. The capital market system is never forced to do anything for anyone. Nothing is free in a capital market system. Everything must be paid for. Nothing can force the market system except for the collapse of the system by the government who set it up. Only an investment made at risk of loss or reward will the capital market provide freedom for anyone using it.

See details on how to set up this investment fund, and start issuing the capital market system. TO DATE 10/30/10 the US Government has not finished what they started, and finish setting up the capital market system for this country. After 200+ years, it is about time the finish the job. If we don't the capital market system will not work in the long run. that long run, after 200+ years is NOW.

Problem Outline  The capital market gap flaw problem and the only way to fix the problem
Solution Outline Details on how the initial investment should work

Home  Contact me