The Power and the Influence of the Financial Capital around the world is often underestimated and miscalculated. If you are a farmer, you would know very well that the “Seed Corn” is the capital based on which your generations are going to feed millions of people. So, Seed Corn must be saved to create a new production of farming outputs for the next season. The same thing applies to the Economy as well. In every part of the economic world, the capital is the seed corn and must be utilized properly to create more Capital. So, the financial Capital, the fiat money is a catalyst to create more capital which will in return create much more capital to keep the production going. This way the economic cycle gets healthier over a while. But if you eat the seed corn, meaning if you consume your debt Capital, leading to less Capital availability to produce goods or equipment.

But 2008 was simply a bubble of equities, secondary real estate mortgages, and other derivatives. The burst was not followed by economic activities, it was followed by a financial stack of cards. In 2020, the coronavirus triggered money printing and handouts resulting in direct consumption not just at the top level, but across the board, Banks, large businesses, and even every private citizen were getting rain checks to support their consumption. So, officially 2001 was the real Capitalistic Build-Burst Cycle. This had never happened before, taking us to a completely unchartered territory. As Milton Friedman once said, we were at the crossroads to choose between the path of liberty and prosperity and the path of destruction of society with a loss of creativity and production. Unfortunately, we chose the second one and we traveled too far in that direction with almost no return. But there is always a means of taking a newer positive path from hereon if we come together to create new generation economic systems and frameworks.