Is capital money creating value for citizens?
The world's financial system has been 4,000 years in the making.
The plumbing that makes this financial system function consists of banks, bond markets, stock markets, insurance and properties. In the long run that financial system facilitated a more efficient allocation of resources so much so that the Western financial model is the most successful compared to central management, socialism or communism. (The Ascent of Money by Niall Ferguson)
The system was coordinated to allocate capital, the lifeblood of economic activity, to its most productive uses by businesses and households.
But if capital money goes to the wrong uses or does not flow at all ultimately economic growth will be low. (former Federal Reserve Governor Frederic Mishkin).
The plumbing that should have flowed capital to entrepreneurs and SMEs seems to have been diverted for the last 25 years.
Economic growth has been low for most because growth has been concentrated in a segment of the world population - those who already own money capital - to the detriment of those who need it most - small business creators.
Banks now operate in a world of pure finance, exclusively bottom line driven continuously maximizing financial return for short term gain.
Capital is flowing into less risky and less time consuming, casino type investments they operate for the rich with the money collected from gullible depositors. The banks, mostly the big ones have lost interest in supporting Local Wealth Creators. Their main interest is managing created Wealth.
If one considers the size of Global Private Wealth and where that wealth is directed to, private citizens are not important to them. The attached 2015 map of UK Financial System shows the transformation of household's money.
So how do we get Banks to show that they support local Entrepreneurs and Local businesses?
By nudging them to revert back to the old model of relationships focused bank rather than being vendors.
My mission is to bring those who want to "do" to come together and create a movement through a Global Professional Practice (GPP) to work with the bankers & money managers for the benefit of citizens.
A GPP will promote the positive attributes of the movement to the local audience by bringing together chambers of commerce, local governments, environmental activists, and elected deputies to become protector and guardian of private clients and families. A GPP will not only campaign to increase awareness but will encourage banks and money managers to show concrete actions that will be measured and rewarded or disciplined.
BE PART OF THE CHANGE. JOIN THE MOVEMENT -
write to [email protected] quoting GPP
Let us work together to inspire a financial system that sustains people and planet.
Look out for my next posts when I will share more information about the Global Professional Practice.
#entrepreneurs #growth #finance #money #management
