Vested Interest the New Dividend
Replacing a system designed to produce losers.
As many are coming to know as a result of The Great Dissemination the application of charging interest for the use of money or at a more lucid level the right to participate in the economic system, results in a master balance sheet that can never be balanced. This is due to the fact only the amount of the principal is allocated to the borrower side of the equation yet the interest to be repaid must come from the borrower side of the equation creating a deficit. This means not all borrowers will be able to pay back the interest based on simple math and will forfeit their tangible collateral. In other words this system creates losers in fact based on math a percentage of economic system participants are guaranteed to be losers. We need a system that only creates winners.
No one can argue against the divine side of investment directing energy to an entity to fund it’s ability and development to be able to create value in the system and then receiving dividends as a result of that entities success. One flaw in the current approach of banking is that the lender expects to be repaid principal plus interest regardless of whether the borrowing entity succeeds or fails.
The financial mentor should ideally have a vested interest in the success of the borrower, which would mean that if the borrower does not succeed then the lender does not benefit. If the borrower succeeds then the lender reaps the tax free dividends.
Now here is where we evolve. We have individual lenders that not only benefit if the borrower succeeds or fails, they still get paid there interest, these individual lenders have little or no control over the borrowers environment that would allow them to ensure the success of the borrower. However if the lender was not an individual but rather the collective, the collective, “government” would have the ability to influence the environment to ensure the success of the borrower.
Perhaps if the individual financial mentor with the return on it’s investment in the form of dividends contingent upon the success of the borrower worked in conjunction with the collective the lender would be better able to ensure a return on their investment. The collective or government would also receive dividends as a result of the success of an economic participant being able to produce value for other economic system participants rather than simply being a consumer. We know that if the government was the only investor the individuals making the decisions would have no vested interest in the success of the borrower either. So there needs to be a blend of individual and collective financial mentor. The key is the payment of dividends rather than interest that are contingent upon the success (ability to create genuine value in the system) of the borrower. The success assured by collaboration between both the individual and collective lenders; the government and private industry.
What happens if an entity is both borrower and lender? It doesn’t change the equation or the math it simply obscures the problem.
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