Business and finance are two things would that would seem to go together. Business needs money, financial community has money, an ideal partnership. Not quite if you look at most businesses on growth and expansion they tend not to rely on finance as much as people think.
A recent survey was by a retail magazine asking small shop keepers about their expansion plans, and what finance would they be using. The result was quite surprising, only 4% would be relying on banking or other financial instituitions, majority from retained profits, family, savings or direct investors.
This raises the question if ‘real businesses ‘are not relying on outside traditional finance for growth and expansion, how is the finance industry making its money. The recent financial crises are a pointer to what is wrong with the finance industry.
Rather than investing in real businesses over the long term, which is what finance should be doing, finance capital has been making money from money, so what you have is two economies, one real with tangible, physical goods and services, and the virtual economy operating of the trading rooms of the financial industry, gambling with other people’s money like the Pension funds sold dodgy investments from these financial institutions.
The amount of money in circulation in the world far exceeds many times the total output of the world’s real goods and services in dollar terms. This seems bizarre that there is an oversupply of capital when most of us feel we don’t have enough of the stuff.
In future articles we will show how the Western economic model is destructive as it relies on the continual expansion of the money supply, hence growth, to stop Western from economies stagnating, this means ever expanding debt, which over the long term is unsustainable ( Ask the Greeks)
There are alternatives to this destructive financial model which we hope to inform the reader in future
Kind Regards Tiger Moto

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