Query: what's the difference between the multiplication of wealth that comes with imposing on the financial industry a loose reserve requirement on the lending of money vs the equity kick you get from taking a company public?
We know we have the value of the assets, which are the most concrete measure of wealth at issue. Then we have the sparkle of creativity that adds to the value of assets the value of the growth that can come with the proper application of the asset base to the business plan of the enterprise. After that comes the exchange value of the asset, which, in some sense, turns the asset into money.
It's when the asset becomes money that we begin to enter the virtual world of speculation and leave the real world of industry.
The lever that relates the virtual to the real is the most important economic lever available in a society to a government.
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