Financial System 1.0

Financial System 1.0

There is always a place, where you have to start, so…

1. Are the shareholders rich?

Forbes publishes its lists of the richest people. Sorted in all manner. The richest in the world, the richest woman, the richest in the US, etc., etc. Seems to me a tricky calculation. This is actually the ranking of the poorest people.

The ranking is based on how many shares a person has and how much the companies are valued. But shares are debt, not wealth. It’s a debt for the company and it is a debt for the shareholders. It is a “wonderful” debt. Why? Well, the company could go to the bank and take a loan, but it would need to return the money and pay interest. With shares, all risk is on investor’s side.

How does it work? Shares represent small pieces of a company. They are sold to people/investors, for real money. The process is called IPO (initial public offering) and can be described as “here you have a piece of paper – now, give me your money”. These days, it’s not even a piece of paper, it’s just a digital sign in virtual reality. It’s said it represents a value of a company but I think it rather represents hope and belief in the company, its future, growth potential, faith the whole investment will pay off one day. But if the company goes bankrupt, the managers just say “sorry, we failed” and the hope and belief burn in a fire. That’s why if the price of shares goes down people want to get rid off them and that’s exactly why the stock market was invented.

2. Nobody likes to be poor. 

Let’s move on to the stock market issue. Here’s fun! An investor can sell his doubts and buy his hopes or in other words, he can sell one company’s debt and buy other company’s debt or, possibly, can stop this insane game and cash the debt he owns – sell shares. Human nature loves hazards. Keep gambling! It sounds good, it sounds even better if people in magazines like Forbes call our investor rich. They count how much money he would have if he cashes all shares.

And here we reach the current day. As I said nobody likes to be poor and here comes the help of technology and… a joke: the coronavirus killed whole humanity, the DOW JONES has just hit its all-new-time high. Yes, computers!!! Thank you, yes! Yes! Yes! Yes!

Today, computers do most of the treading. It’s great! Computers are not moody, no premonitions, they are perfectly logical and… predictable. What you just need is a “proper” algorithm. First, it’s not a point to disrupt the system but to keep the status quo. Use the computer system with its algorithm as an advantage in managing the stock market. Assume the stock market brings only profit, that would give so many benefits. The rich will stay rich even though they own a debt. Average people can have their minimal income to keep existing. It looks beautiful and 99% of the population will be happy. Why there should be any crisis, why? Who needs it? The money is just zeros changing on a screen in virtual reality. Fiat money is the biggest danger. People tend to believe that money represents some value, maybe gold or something. No, it doesn’t, like shares. People don’t need cash, they can just use a plastic card that represents their zeros on their virtual bank accounts. We are during the process of convincing people that they don’t need cash. It goes very well.

3. No need for work

Let’s move to the next step: giving people money. Right now it’s called ultimate basic income – UBI. People’s work is a disaster, they make mistakes, they fail, they get sick, they are moody, etc. … and the most important, most of them DON’T LIKE THEIR JOBS. The better solution is to give people money, I mean to add some zeros to their accounts, so they can afford to buy basic things and that’s it. Then they can stay at home, practice yoga, watch TV series to have something to talk about with friends. With different types of movies, they will be told what they should be afraid of, what they should dream about, what type of life model they should adopt, and what products to buy. They will be self-accomplished just by staying at home and doing what they are told. The propaganda will be adjusted to their limitations this way that they don’t see their limitations. Just don’t ask questions.

So, no, I don’t think we need a financial crisis – for what? We need the stock market to reach its next-new-all-time-high. The economy is great. The future is bright.

Oh, wait… coronavirus!!!

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