How are we going to fix a money from money economy?

Just sounding the broken record: Money from money. I have posted about the share of our money coming from licensing agreements. I’ve posted Bogle’s opinion that we have $560 billion/yr loss because we focus to much on the finance end of making money. I’ve shown that there has not been enough money in the hands of 99% of the population to stay above personal outlays since 1996. Another commenter presented a similar argument looking at it from the perspective of the middle man model. Just taking my cut!

Yet, money policy whether savings, rate changes or government stimulus is still being debated in a consumer driven economy that has been based on consumption via borrowing. Sign them up at $50/mon until they have nothing left and then give them a loan on the house.

Walmart, Target, Sears? Are they something more than a middleman?

Lets consider that 16% of GDP is health care. Sixty percent of that is via private insurers. The ultimate middle man. They are exempt from the anti trust laws. They control the money coming into them. They control the money they are paying out. They have set up all sorts of sub companies to “farm” out review and even sold contracts to do such for others. All the while taking a piece of the action. It’s an all in the family model. Time to rewatch the God Father?

Nothing is being added or created that can be sold to another non-US trading partner because all the trading partners have done away with their middle man in health care. Yet, it is the fastest growing sector of our economy.

Well maybe not. I just found an article at Wikipedia. They have a name for money from money:

There is a nice chart. (A few actually). Especially this one.

Total financial turnover went from $17,804 billion in 1980 to $508,456 billion in 2000. We’ve seen GDP go from 37.8% of turnover to 1.9% of turnover. That’s how big the money from money train is. Our GDP is only 1.9% of the money from money machine.

What am I not understanding concerning how to fix this via rates, savings and government stimulus as it concerns 99% of the population?

How we going to fix it?