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Thursday, July 12, 2012

You can't finance a stable economy by gambling

Risk is the siren of gamblers. Successful entrepreneurs don't gamble, they only take risks they can afford, if they can help it. They base their businesses on sound principles and careful decisions based on knowledge. They don't let it all ride on a hunch.

Investors don't gamble, they back successful entrepreneurs and businesses based on good ideas, relevant experience, and a sound business plan and/or good overall performance. Investing is the providing of capital for a reasonable share of the wealth created. It is not the trading of value for quick profit, no matter how large the win.  Only gamblers care about the daily market fluctuations, fixing on them like heroine addicts. Investors care about their investments' future and overall performance. They care about the thing in which they have invested and what it produces, other than profit.

When you gamble on stock market numbers instead of become truly invested in a venture, you end up keeping terrible company. I doubt teachers want to fund the production of nuclear weapons, for example, but there are pension funds for teachers that do exactly that by gambling their contributions on a stock rather than investing it and knowing what's being invested in.

You should always look before diving. You might not like the landing.

A stable, prosperous financial system, and thus a sustainable nation, cannot be based on gambling. Any gambler will tell you, Lady Luck's a bitch. There will always be booms and busts and the repeated inflation and explosion of bubbles. That's the nature of gambling. Gambling always creates more losers and addicts than winners, and if you do it long enough, you're likely to lose everything. I doubt teachers want to fund nukes, but it's a good financial bet.

 Regulations are needed to discourage gambling in the system and encourage active investment by investors. Quick trade gains needs to be taxed highly to encourage long term investment and reduce the lure for corruption. You make an investment, it should be locked in for a time.

The Euro crises is a crises of gamblers betting with the wealth of countries and calling in their loans to cover it. It should be the resources of a country combined with the confidence and wisdom it's people that determine a nation's wealth, strength and stability, not the expectations and fears of gamblers in the international financial market. Nations have become victims of a gambling ring that has become worldwide, with banks act as their enforcers and accomplices.

We are being held hostage to their addiction.

We need to stop feeding it and end the gambling corruption.

We need to invest in the future of our nations and ourselves.