Friday, August 25, 2006

The Coliseum of “National Economy”

This just came up to me…I want to discuss my perception on how the Economy works, all the fancy terms and confusing rubbish aside. There is a big arena called the “National Economy Arena”…just to explain, these arenas come in sizes as well…some are small stadiums and others are coliseums, inside this arena we have huge stands with thousands of “spectators” (consumers…small and big investors), and in the middle of the arena we have a couple of boxing rings…9 or 10 depending on the size of the “Arena”…and “attendance”.
Every “ring” represents a sector or industry…the “referee” represents the figure of authority or government…the show is about to start…in the corners and on the sides of the each ring we see sleazy rich “sponsors” or if you like…Banks, equipped with all the essential means to survive what is about to take place....These sponsors have weapons….lots of weapons…every shape and size you can think of….from razor blades to RPG missile launcher ….(I mean of course Money…funds…capital)…these weapons have been deposited by us…spectators.

Then they bring in the gladiators…(companies and corporations)….they each enter their ring of choice…as a rule, they have to be equipped with their own weapons to enter the competition (paid up capital)…but some start early negotiations with the sponsors (Banks) to arrange for future supplies…or perhaps leverage the existing armory with new inventory to eliminate completion early.

And the fight starts….non stop fighting…you can get decapitated (declare bankruptcy) or become someone’s bitch (Hostile take over)….some fighters are vicious and adventurous in terms of attacking method and choice of weapons (venture capitalists) and some have the referee on their pay list (corruption)….we also notice that some fighters start forming gangs…they gather behind their big brother (Holding company)…and some stick to partnerships…so we start getting different leagues within the same ring….the heavy, feather, and light weights….they can interact with each other…but usually they stick to their league and fight people their own size….but of course we also have bullies…and they tend to pick on the little guys…sometimes kill them for fun…gain “weapons”…or expanding the gang membership (equity).

The fight begins…it goes through phases…ups and downs…and of course what makes the whole up and running…our bets…spectators…making bets (investments)…we choose who to bet on and through….betting through sponsors pays almost guaranteed…but with lower return…betting directly on fighters or buying them weapons pays higher but with more risk….more risky….
Ohhh I forgot to mention this rule…some fighters have “license” to carry their weapons with them inside the ring…not only that…but also to take delivery of their weapons while they are fighting inside the ring….the majority of fighters have to deposit their weapons with the sponsors and retrieve them when ever they need, BUT the astonishing fact is, that the sponsors can lend out the fighters’ weapons to other fighters that maybe fighting in another ring. Unfair, they recive the weapons for safekeeping but they end up lending them out, problem is the sponsers are protected by the Reffree and the official federation. ….Ok I think I will stop this analogy because its becoming too complicated.

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