Thursday, March 4, 2010

The Daily Note - Postponed Prosperity

Prosperity postponed. That is the reality about current events. Yes, it has been that way for a couple of years, but what is different this time is the relentless new additions of regulations which continue to erode all chances for a recovery as we have known it with the curtailing of freedoms for the pursuit of it.

To list a few, there are almost daily talks and some action about regulating in some way or another the financial industry; banks, brokers and traders alike. Wall Street has been demonized enough that the discussions on the subject is being pursued with barely a mention in the news. Just the 10% rule to restrict the shorting of stocks is enough to assure that the markets will not truly reflect traders' sentiments. Add to it, the curtailment of trading activities via increased taxation on capital gains, as well as the increasing popularity and lack of understanding about transaction taxation.

Certainly there has not been much coverage on the issue in the mainstream; and what it is not realized is that it will radically reduce trading activity in the markets if enacted. We can argue at length about the pros and cons of the increased participation of "amateurs". What we all have to remember is that the "amateurs" who trade are most likely not collecting public funds to survive and are themselves potential future employers as a result of their entrepreneurial actions.

Yet that is just one pixel of the picture. The gross lack of understanding of what motivates people to become productive is the biggest reason why we are not on the road to recovery. People have to see the possibilities for self reliance in order to really forge forth and create. It is that which is first killed by all totalitarian governments which ultimately sets them on the road to failure and increasing insistence to tax and regulate. Even if innocently, once the production of the people is suppressed, the need for rules increases. It's like slavery and suppression ultimately leads to it.

Suppression wears many disguises, not the least of which is telling people how much others are at fault of their misery. By believing that, we postpone our hope for prosperity because we believe others to be the ones who make us fail therefore we don't recognize that we are the ones who make ourselves succeed.

Here's a meditation for prosperity; remember one's prosperity can never infringe on another, because it's infinite. Totalitarians always think of it as finite and point to the have not's. But true helpers will always share and uplift others not by handouts but by example.

Happy Trading, Living and Dancing

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