American [[Investment]] Decouples Profit and Loss

 American [[investors]] are not spending their own money. Largely it's printed by the Fed. Irresponsible counterfeiting leads to irresponsibility. (This has been a rep of set 1.)

 The Fed uses fraudulent debt schemes to print money, which means these [[investments]] are ultimately debt-based. This allows profit to be extracted from lossy businesses, causing double externalities. Paper gains, which can be converted to cash, appear before the debt come due.

 If investors were spending their own money, they would demand returns. Since they're spending someone else's money, it's fine to merely look like it might profit in the future. Private profit, public costs. Basically the point of coerced investment such as retirement funds is to drive up these false investments so the real [[investors]] can exit with the gains, and secondarily to accept carrying the bag when the bets inevitably go bust. You get tax credits on your 401k because it's a bonus-tax graft scheme. They get you twice over around the back. 

 The American [[investment]] style actively discourages profitable investments by replacing it with smoke-and-mirror business.

 There is still the wealth furnace effect, where inflation, due to the original Fed activity, allows businesses operating at a loss to post paper gains. [[Investors]] can capture these illusory gains, then exit before the business runs out of seed corn to burn for heat and light. 

 The real solution is to ban counterfeiting and thus paper money. E.g. encase tiny flakes of gold in epoxy, and now you have a high-tech penny. 

 Even without this, a lot can be done by ensuring debt-backed investments can't be divested before the debt resolves. Make debt-entangled investments have a vesting period, like stock-based compensation. I mention this primarily to illustrate how simple, easy, and feasible it is to establish anti-fraud practices, and thus how low the demand for security must be. 

 Imagine not being able to sell your Twitter stock until Twitter pays its debt down to 0. Imagine how much debt Twitter would take on under these conditions. Speaking of, companies should be banned from diluting stock. If they want to issue more stock, the answer is no. Just no. Hence, modification: you're not allowed to sell your debt-backed Twitter stock except to Twitter, who has to buy it from you if they want to issue more stock to someone else. Splitting is okay if they didn't make enough units. (Just make enough units in the first place tho lol.) 

 More precisely, if a company tries to dilute their stock, investors should immediately sell all of it. It has been proven to be insecure. Investors who don't do this aren't adults and shouldn't be allowed to invest.