Our system can not be effective if the people who create output & expect the system of trade (money) to always be equal, i.e. that there value traded (output) & converted into money does not change, i.e. inflation, exchange rate decreases etc

Then we have those that study the inherent problems with money & make a fortune off the back of hardworking people who create the real wealth (output), the bankers, investment community etc.., these people create ZERO value & due to there knowledge of the inefficiency of our trading system – money they make money that they exchange for output (wealth)

Is this not the reason why we have these failings in the world economy from time to time as we reward non output persons & send our best to study how to manipulate a zero output system ? (the argument that they facilitate trade & risk is thin with me as the government should do that as it should see to water supply)

How long are people going to stand for this & what is the answer as the money needs to stay neutral & a unit of money needs to the same today as tomorrow

Any ideas on this debate ? :)

I’m not a economists & welcome any debate or criticism of what im saying........

BEE in SA is this same problem, ads no value or output. But BEE is easier to analyse because it is contained and legislated.

To me, there is a necessity for bankers and the investment comunity BUT in our world today this sector has gone mad. Too much money, too much ego in a sector that should be a tiny facilitator for the rest of the economy rather than the tail wagging the dog as happens now

Not quite sure if I agree. I think you should separate the discussion about adding value (which people who allocate capital irrefutably do) from the discussion about how much of that value they should capture for themselves (which probably from a social point of view is an issue).
Historically there is very little evidence that governements can allocate resources effectively. The massive economic growth over the last 200 years is a result of the private sector allocating resources. Although occassionally the system fails in a significant way, overall it has created more wealth, increased life standards and life expectancy more than any other sytems ever before. Therefore, while specific issues need to be addressed, overall the system is good.

maybe my explanation was not good....., i fully agree with capital allocation & those profiting from it..., what i was trying to say.., in my very little knowledge trying to discuss the macroeconomics of money & its imperfections.., this causes certain people to loose threw inflation, exchange controls, higher interest rates that is needed by central banks to stop inflation that was caused not by the output drivers in many cases (& find the losers mainly to be those that create output & those that gain out of the money supply imperfections are those that don't create output)...., & think the output guys should be a priority in a system than the non output drivers....., not sure if that's a bit clearer ?

The problem is that the simple act of creating output, inevitably results in inflation, either via the increased cost of inputs, effectively the output of another, and/ or by a raise in the demand and a subsequent raise in price of the ‘output... See More’. As ‘anonymous’ mentioned, raised input cost can also be the inclusion of possibly unproductive input factors, which could have been legislated and regulated by government itself.
You know the saying the only things that you can be sure of in life, are death and taxes; they must have forgotten to mention inflation. No wonder Milton Friedman said that inflation is always and everywhere, a monetary problem.
In any open economy, regardless of it being a micro- or macro economic environment, supply & demand are determining factors. Certain individuals or industries will always abuse the system in one way or another. From a micro perspective, the running of a business entity into deliberate insolvency, could negatively affect its suppliers detrimentally. The problems created by the financial sector unfortunately had massive macro economic implications for all of us. This has however originated already under the ‘Clinton administration’ in an effort to gain the favour of the public, and more specific, the voter. Additional power to the government and the implicit trust that they will necessarily provide certain controls can not be relied on with certainty.
The regulation of the economy is already done by the government via monetary and fiscal policy. From a monetary perspective, interest rate manipulation is therefore another eternal certainty. :) From a fiscal perspective, at least the UK government has proposed the additional increased taxes on excessive bonuses in the financial sector. There is of course always room for improvement! :) As long as capitalism prevails… :)

“The rewards for “getting it” have never been so immense. And the penalties for financial ignorance have never been so stiff.”

The risk of downward mobility for the financially illiterate today & in the future are the same as the literate & illiterate in the world today, that is the unfortunate & inescapable facts.........