Selections from the Book
The stock markets in the West could not have come into being had it not been for three basic systems in the Capitalist economy. These are:
The public limited companies system.
The usurious banking system.
The inconvertible paper money standard.
These three systems have come together to split the Capitalist economy into two economies, or into two types of markets: the first represents the real economy where the production, marketing and real services take place, and the second is the financial economy, which some refer to as the parasite economy, where the contriving, buying and selling of various financial papers takes place. These are considered as binding contracts, or cheques or securities, representing a transferable right by one party that can be bought and sold, whether in a company property, its debts, government bonds or real estate or in many other (rights) certified by financial papers that are transferable, and considered as a temporary option to buy or sell another specific right at a price that differs from the current market price (e.g. options contracts). All this has no direct connection whatsoever with the real economy. This parasite financial economy has grown to the point where the value of its transactions have exceeded those transactions undertaken in the real economy by manifolds.
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