Malinvestment Rising

Even if you’ve studied macroeconomics 101 back in the day, you may not have heard the term.  Keynesian theorists bread from state sponsored academia are not oriented to hypothesize that investments can go wrong and can be counter-productive to a long term economic benefit.  Today China faces the financial effect of amortizing vacant industrial complexes financed through non-transparent means as eloquently described by Jim Rickards in his book “The Death of Money”.  Mr. Rickards claims that this phenomenon is not in and of itself a financial risk of devastating proportions to the Chinese banking sector but when matched up with other elitist transgressions in stimulating economic growth, perilous conditions have become beset.  Mr. Rickards goes on to exemplify the flight of capital out of China by those instinctive purveyors of wealth who have concluded that all is not well in the Chinese banking system.

Apparently, it’s not only the western world which endorses the free flowing off balance sheet derivative market but the Chinese have become adept at putting it to work in helping Chinese savers acquire better returns than the near zero bank rate offered today.  In spite of the 2008 financial crisis, now reports that the notional outstanding derivative book is twenty per cent higher now than it was back in 2008 and that Goldman Sachs alone carried $48 trillion dollars in derivatives at the end of 2013.  The mortgage variety of derivatives were largely the cause of the 2008 financial crisis.

Do Pick At Least “A” Battle

Sure you should “pick battles wisely”, but if you do not stand and fight for what you validate as worthy, then a slippery cascading slope of mediocrity, aloofness, and presumption may  leak into every and all association or relationship which has meaning in your life.  Then if others also stand down at every turn, a dichotomy is formed between the organized powerful and the disenfranchised powerless.  You, by virtue of your breath and thought have power yet you cede it far too often.  You opine inwardly that it’s not your fight and that other more charismatic leaders are better positioned to engage.  You are wrong.  Your passion when harnessed has a way of creating eloquence.  You’ve been conditioned to feel like you’re ill equipped to be an arbiter of your affairs by those who posture as if they have your best interests at heart when in fact they selfishly seek their own agenda.

Freedom isn’t free.  The more you cede the more you risk. The more you hesitate in ambivalence, the more you cower to the elite.  Still caring about what other people think?  If so, your subconscious mind is blocking your passion for seeking engagement in the worthy.  Vibrate with purity when your cause is stirred and your fellow man will walk alongside in gratitude.