Sunday, April 30, 2006

The Ego-Driven Interventionists Are the Cause of Disease.

When the interventionists have the license to meddle in the economy they demonstrate their ignorance and their intentions. Their lack of understanding of savings is a perfect example.

However, savings is not difficult to understand. It is the choice to consume later. So there is a very small difference between consumption and savings. It is simply the time frame that is the difference.

Saving is a personal choice made by each person, assuming that we have the freedom to make our own choices. While our savings fulfills the desire we have to consume later it also can earn a return, so it most often becomes capital.

Why are the interventionists opposed to savings? It is because they have allied themselves with political expediency. As the long term vision inherent in a monarchy was replaced with short term democratic cycles it became expedient for politicians to intervene to discourage savings. They may not be still be around in the long run so they want to make a splash now to satisfy their egos. They want consumption to happen now.

Consider the consequences of an artificially low interest rate set by an act of intervention. Savers feel discouraged. The incentive is to spend more now than they would have if they knew the real interest rate. This shorting of savings represents a consumption of capital!

The Divine Economy Model © makes it clear that the capital structure that is built upon savings is the cause of transformation. That is how vital savings is. That is why intervention is so destructive.

The current political systems and structure feed on interventionism and are parasitic to the economy. Eventually the people of the world will see the ego-driven interventionists as the cause of disease. At that point the healing will begin and the divine economy will enable everyone to reap the benefits of prosperity.

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