Financial discipline

Where the buying power is

Where the buying power is

My real interest is in financial matters, how banking is used two ways, 1stly to regulate market movements, productivity and spending and how it also provides personal security to customers.

I am trained in finance and business, my father was a chartered accountant and made his money in share dealing, but lost a few quid in the Fokker affair.

Banking provides a significant amount of security to its customers because people that are existing in banking records and other financial records are simply accounted for. Someone who is part of the interwoven banking and financial system cannot disappear without a trace, though some who steal identities wish they would.

The outsourcing of our financial records to the third continent provided outcries of what about security, Data Protection and surely as a result we’ve seen a jump in Identity Theft.  Continuous large scale identity theft is almost impossible to achieve, which is really a bonus for us all.

The introduction of the Child Trust Fund led to theft of the database of all children I believe and it is up to those who keep our electronic records safe to ensure no children’s accounts can be hijacked or abused.

Quite often we heard of missing data and it is obvious that the smaller the data packet is, the easier it gets lost. The temptation to take data away, if one just has to slip a memory stick in ones pocket is overwhelming, and many work from home as well as at the office. It is very easy to forget a laptop on a crowded train, one just needs to get that emotional phone call at the wrong time and getting off the train fast is the overriding objective.

Financial regulation of our lives have taken over physical punishment and personal atrocities. All we have to do today to oblige is manage on the money we are being allocated and do not break any other laws and we are alright. Our personal freedom hinges on the financial system, because of its accountability we can do whatever we like in any other respect. We do not have to believe in any particular God, not follow any particular party or even any other life style issue is free for the choosing, as long as we manage on our income.

I was therefore very alarmed, just before the financial crash doing some calculations, noticing that it just cannot go on, the principle that we allocate productivity and economic growth on the basis of debt, debt that is created on the basis of loans, given to people who might be able to repay them.

productivity today does not hinge on actual environmental need, communal requirement but merely on the fact whether the person with a wage in their account wish to apply for a loan and this loan guarantees that somebody somewhere has to produce the item that the borrower has borrowed and will spend somewhere.

Of course the free lending and the high interest meant that a wide gap had been created between those earning income on their wages and those paying interest on their borrowed monies.

When then on top of that, third party debt was sold to increase financial viability the system started to crash. It ended on those unsecured mortgages.

Whilst I am in favour of a banking regulated society, I am not in favour of the principle that anyone who can, can borrow to purchase consumer goods even if they are environmentally unfriendly or produced in a way that is environmentally unfriendly, which is what created the earth warming we shall suffer in the near future.

I feel some regulation needs to be installed, that is as friendly as possible toward individual requirements but requires a communal acceptance of user friendliness in terms of pollution.

Not an easy task not to restrict freedom because freedom to do what we want is the biggest driving force to help invention.

But if I look at our short term leaderships, who have nothing other to do but to sit in their positions for a number of years and then are no longer required to account for what they did whilst in office is the biggest stumbling block on responsible leadership in all areas of life.

Money is not just a matter of individual spending power but the more money comes into fluctuation the more people spend this on consumer goods and the more pollution is going to be produced.  In some instances consumers just purchase consumer goods to be able to work to produce them.

I think that is a very important question to be thought about, how money links in with social development in various locations around the globe.

Purchasing green points for each ton of carbon we produce does not help, it does not stop the rain forest being diminished because each step forward in international standards of living to our standards, requires more destruction of rain forest to produce those pieces of furniture that people want to be putting in their flats and to produce those cars that people will want to drive to work or otherwise.

The industrial revolution has to change dramatically to produce goods that help us all to live better without destroying our environment.

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