Simplification of Economics: Money speculators

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Gambling is like drugs and it is just as addictive. There are different types of gambling for the different classes, just like there are different types of drugs for the different classes. For the poor there are lotteries which are basically voluntary taxes that pay for toys like sport stadiums for the rich. For the rich, there are the more sophisticated casinos, For the really rich, there is money speculating. All of the types of gambling, like addictive drugs, are destructive, but money speculating is the most dangerous.

When the rich speculate on the money of the poor, they wreak havoc on them like fires, floods and tornadoes. Just like with fires, floods and tornadoes, there is little that the poor can do to protect themselves.

Money speculators, consumers and money can be compared to machines, people and crops. Crops should be for people, and not for machines, otherwise people end up being hungry. Likewise, money should be for consumers and not for speculators, otherwise people end up poor. Money speculators buy the currency of other countries and hold on to it in the hopes that its value increases. Eventually the money gets dumped back to where it came from causing an unexpected flood of devalued money which plays havoc with the lives of ordinary citizens and unfairly burdens the old people, making them suddenly poorer than they were.

Countries try to curb speculation by keeping the value of their currency stable. They do this by printing as much as is needed to keep the value stable from increasing. This approach can work, but it is not the best or most efficient way for the country and for its citizens.

National banks selling their money to speculators, or fending speculators off by printing more in an attempt to keep its price stable, end up selling their good money, that is in demand, for bad money, that wants to be gotten rid of. They are not doing their country a favor if they cheapen their money to make it unattractive for speculators. If their money is in demand and becomes so expensive that it hurts their citizens in the tourist and exporting business, they could help them better by giving them tax breaks. If they want to keep their neighboring nations afloat, they could help them and themselves better by increasing imports, instead of satisfying greedy speculators. Countries with their money temporarily increasing in value because of the demand by speculators should rejoice and go on a shopping spree.

Speculators buy money and sit on it, only to sell it back when it increases in value. This is very unproductive use of money and should be prohibited. Their greedy practice of gambling with other nation’s money plays havoc on the citizens and prevents their money from being usefully used. When national banks try to fend off speculators by printing more money to keep the value of their money stable, they in effect shoot themselves in the foot because when their sold money eventually returns, it floods their country causing inflation. The people who get hurt the most are old pensioners who end up finding their only source of income - their life savings - suddenly devalued. Heavy taxes and negative interest rates on foreigners holding accounts should do the trick to fend off greedy speculators.

Unfortunately central banks of many counties run by corrupt people print money to increase their national debt and to increase their personal wealth. Citizens of all countries are stuck and squeezed between 2 corrupt extremes. On one hand, usually the left, the politicians claim to represent and protect the public and give them the illusion of free choice. On the other hand, usually the right, the private banks claim to protect the public money and give the people the illusion of freedom.

In the end both hands are controlled by a handful of secret individuals and families who are like marionette players hiding behind the stage. Their weapon of choice is money and the chains they use to keep the unaware populace bound in slavery is debt. They use fear as a method of controlling the people.

They proclaim that everyone can rise to heights that can be only imagined and dreamed of and can grow so big as to become too big to nail, fail and jail. These principles, as good as they sound, are soundless. Nature plays by rules that are very different. Whether people like it or not, or whether they want to be or not, they are a part of nature.

The laws by which nature so wisely rules are:

For every winner, there are many losers.
What goes up slowly eventually comes down fast.
The quieter and longer the calm lasts before the storm, the more violent the storm blows.

Greed is an inherent characteristic of people, and power inevitably corrupts them. The more they have, the more they want. Everything, including the tallest mountain, grows to a size that eventually becomes too big to be sustained before it breaks up into many small pieces only to grow once more. We are born naked and we end up naked when we die.