a. Money is like water (CB thought it was like electricity), it flows, pools, rises, boils, evaporates, bursts, floods, and freezes. Humans try to dam it, guide it, use it, for good and evil;
It's not fixed, there is not a given amount nor is there a fixed value that can be placed on it even. Even while it is flowing from one place to another, evaporating....it's raining somewhere else.
c. Private sector’s job is to take advantage of the governments’ policies and the available pools of money to do the best for itself;
The only job that a corporation has is to make profit.
d. In recent times, a giant pool of money was aggregated, probably originally in the sands of Arabia, then, guided by policies, moved to Japanese stocks, real estate, USA real estate, stocks, SE Asia, Latin America, Korea, Taiwan, China, USA again;
Value and stored value (money) are created by human endeavor. It's seductive to get wrapped up in watching the money shuffle game. Usually the money shuffle is what happens when a government or governments has made it less then rewarding to work for a living by creating high taxes.
f. The pool of money was poisoned by unsupportable debt in the private sector;
Keep watching because you are about to see the biggest write off of private debt in the history of debt. Bagholders already have their places as the equity holders before them left holding dot bombs. The great thing is that it is all secured by assets that have a shelf life close to that of a beach ball so we aren't going to have to live through another resolution trust thing where asset prices are held down for years while they try to liquidate. |
