has missed is that if you only use conventional banking, then ALWAYS, the
banking system becomes more and more prosperous, while the wider nation
becomes more and more drained of prosperity. Every penny depositied becomes
a much larger loan which in turn again, has to be fully repaid, with
The lost understanding of the use of equity capital is that the investor
NEVER gets their money back. It always becomes a part of the increasing
prosperity of the wider community into which it is invested. Yes, you may
buy or sell your “shares”; but that original investment remains in
The house you build remains. If it is not quite up to standard, its
intrinsic value will decrease, yes, but the money spent on the build
remains in circulation. The butcher, the baker, the candlestick maker; all
have prospered just a little bit from the overall transaction.
Without a well understood set of rules for the long term investment of a
substantial part of the peoples savings, as equity capital, back into the
adventurous individuals who will step forward to try and increase their own
prosperity, and thus by their efforts; the ongoing prosperity of the
nation; without that input, the economy OF ANY NATION will, continuously,
decline in direct relationship to the systematic removal of prosperity by
the short term banking system.
You simply cannot have any form of long term prosperity for the nation without
the use of equity capital to create the foundations for the growing small
business community, right down at the grass roots of the nation.
By leaving the initial investment in place, the input of the additional
prosperity remains in circulation.
Of even more importance, if you believe in the freedom of the people;
the investment MUST be made under the rules for free enterprise. The
founder of the new business must be both the manager of the business and
the owner of the business. You must leave them free to make their own
decisions as to how the business grows.
When you invest equity capital, you are saying; I believe in the long
term prosperity of the nation and the ability of the industrious and
adventurous who are trying to improve their community; to create new
employment, to add new jobs for the young people coming out of education.
Equity capital is YOUR commitment to the long term prosperity of the
wider nation, YOUR NATION!
Please, think about that.
A Modest Proposal for Overcoming the Euro Crisis, Version
3.0 – Policy 3 significantly amended