Financial Engineering-A Byproduct of USAPonzi
Jul 2, 2014
As this website has explained, USAPonzi has created $96.5 Trillion of phantom money over the last 46 years by undertaxing the U.S. Citizenry. I contend that this phenomenon has created a new group of people that I call Financial Engineers. Many of these people are not creating products or services but instead are focused on how to take advantage of the flaw in the U.S. Government accounting system that is spinning off $6.4 Trillion of phantom money in FY2014 and has spun off a total $96.5 Trillion since FY1969. These "Financial Engineers" do not invent or produce a product. They do not, in most cases, provide direct guidance in the management of the companies or assets that they own. And yet these "Financial Engineers" are some of the most handsomely rewarded individuals on the Planet. They are, by and large, schrewd individuals and they do provide value to the people whose assets they manage. But I contend that this class of individuals would not exist at near the current levels if the U.S. Government was not creating this "new money" at the outrageous rate of $17.6 Billion a day.
Just think how many people in our economy have their entire existence and daily activity focused on collecting the money that the U.S. Government is throwing off each day as a result of USAPonzi. The USAPonzi scheme makes it possible for a significant number of people to do nothing but watch the ticker tape, the interest rate on government bonds, the price of housing, and the GDP growth rate of some obscure country in Asia or Latin America. But by spewing off $17.6 Billion a day, USAPonzi makes it worth their time to figure out how to optimize the amount of these Government dollars they can collect that are being created out of thin air by USAPonzi.
Yes some of these financial engineers are providing a valuable service to the people whose assets they manage but the number of people that our economy can afford that are serving as "Financial Engineers" will contract dramatically when USAPonzi implodes, when our GDP contracts by 45%
(see U.S. "Real" GDP June 2014), and when this fountain of phantom money gets turned off.
Therefore I contend that most of the jobs in this field of "Financial Engineering" exist today because of USAPonzi and therefore are a byproduct of USAPonzi.
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