(still working on this but it’s getting there)
We can stop it. The problem is, that the way we stop it is non-trivial:
(a) require all issues released at market price with no favoritism (equal starting gate provision).
(b) prevent insurance (hedges), require proportional holding of debt, force proportional losses (‘skin in the game’)
(c) eliminate protection from liability for all individuals involved in any transaction, and reward (commission) for reporting offenders – (make it profitable to report your boss or peers.)
(d) professionalize banking just like law and certified public accounting increasing the quality of people in the industry.
(e) require total transparency of all OPM investor transactions. (what I recommend).
(f) move all companies to block chain ledgers.
(g) tax arbitrage and volatility entirely, while eliminating taxation on dividends, and appreciation. (eliminate trading and force investing)
(h) Buy (federally) ‘bottom-feeder’ Mastercard, and redistribute liquidity directly to citizens rather than through the financial sector and interest rates – in exchange for elimination of sales tax and minimum wage. (what I recommend). These cards cannot be attached or indebted for any purpose whatsoever, private or public. The money is split between disposable and retirement security. The retirement funds are investable.
(i) Stocks provide no voting or ownership provisions (positive), only legal defense(negative). One may contract for ownership provisions as condition of investment, but one cannot simply buy up control of companies without consent.
(j) Eliminate boards of directors – I have not seen any empirical evidence that a board has any value whatsoever that could not be provided by an advisory board that assists in the development of relationships and expertise. But boards appear to have a negative influence on business. Transparency and rule of law are the only material defense. We no longer need political representatives in this age, and we no longer need the private sector equivalent. My experience is that boards that do not consist of material owners are universally damaging to a business. (The Buffett Principle: substantive owners with deep knowledge of the business, only). Both boards of directors and stock voting are hangovers from the paper and pencil era.
(k) Elimination of all non-safety employment regulation – voluntary association, merit based. This social engineering is harmful to social cooperation, and a constant source of cost and conflict that encourages the internal equivalent of a black market in information.
(l) Eliminate taxation on unrealized profits (this nonsense we go through for options for employees). We go through tons of falsehoods to circumvent the fact that while large transfers may occur almost no profits do. So eliminate the burden of preventing false taxation by simply requiring tax only on realized profits.
(j) Move all accounting, banking, and credit, nationally if not world-wide to thirteen four week periods, and off the lunar cycle invented in the age of sail.
1) rule of law, individual accountability, civic morality, truth content,
2) encourage more Andresson Horowitz investment organization (innovation producing risk taking) and less Goldman Sachs (systemic parasitism).
1) I want to preserve the lottery effect that the stock market provides to entrepreneur, business, and industry, but to limit the finance sector’s ability to disproportionately privatize issues – which is how it’s done today. With little or no value to the economy, business, and citizenry.
1) Eliminates the ability of the financial sector to direct the economy, only profit from funding the fulfillment consumer demand, thereby forcing the consumer and the investor to have the same interests.
2) Eliminates financial predation on business and industry. (which if you have been involved in it – and I have – is unimaginable )
3) Eliminates costly burdens on organizations that must preserve multiple fallacies:
a) that tax, credit, and operational accounting differ because credit cycles demand stability that does not exist, taxes demand returns that do not exist.
b) social engineering compliance is costly and we merely work hard to circumvent it.
c) fallacy that the financial sector works in our interest.
d) if we distribute liquidity directly outside of the financial system then minimum wage is unnecessary, and the incentive to limit immigration will exist.
( more… but I’m out of time for this today. )
The Propertarian Institute