america2029

Posts Tagged ‘reward’

Building Block #4: Fast Money

In Building Blocks, Business Model, Economics, Money, Program Launch on November 6, 2012 at 4:26 am

America 2029

Only a small percentage of people in this world fully appreciate how money is “made” on the stock market.  As much as we hate the rollercoaster ride, the stock market as we know it would not exist if it weren’t for the ups and downs.  That’s because the people who make the serious money (including, to some degree, large institutions that invest your 401(k) money) know how to make money on the ups and the downs.

Here’s the problem: If the “big guys” are making money on every up and down, but the stock market is mostly going sideways, that means that the rest of us are having a difficult time not losing money.  If someone “makes” money as the market goes up and then sells, the person who buys those shares will lose money when the market goes down.  I keep quoting the word “makes” since no money is really being made.  When a company’s earnings are flat and stock experts “take profits,” everybody else loses.

The economics of business would totally change if businesses all adopted a new business model to “guarantee” their results.  The entire investment world would stabilize and most people would be happy that they were now virtually guaranteed gains of 10-20% or more per year.  The only people who would be unhappy were those who make their fortunes on the rollercoaster ride, since the ride would now be relatively boring.  Although there would still be market risk, the stock market would start to behave more like the bond market.

The problem, of course, is that those who currently profit from the system would not permit the existence of an alternative system, if they thought that they would lose money because of it.  They would expose this new business model as a “fraud” and bury it before it ever took hold.

However, they would gladly adopt this new business model if they made more money, right?

The secret to this new business model, which is already being tested through an innovative website that you may have heard of, would operate under the principle of fast money.  You make more money the faster the money changes hands.

Milton Friedman’s equation of exchange clearly established that people are wealthier when money moves faster.  By moving money faster and decreasing risk, everyone—both the very wealthy and the rest of us—will have more wealth than before.

As a positive side effect, the need to print additional money would be removed.  Again, this is due to Friedman’s equation.  This will benefit everyone except for serious precious metals investors, who benefit from the devaluation of the dollar.

America 2029 will need several visible spokespeople to convince pioneering companies to use the new model, since many old “rules” and “laws” of economics will now be broken.  However, after initial trials, the model will rapidly gain acceptance.  Is your company ready to explore this new business model and profit now, instead of waiting until later?

Remember: America 2029 is all about defining the future.  We know that the laws of economics are changing all around us due to the ever-increasing global nature of the economy.  America 2029 seeks to restore stability to an increasingly unstable system.

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