Conspiracy of the Rich by Mr Robert T Kiyosaki.
This book brought to my attention that our current system of education comes from the Prussian system, a system designed to create good employees and soldier, people who blindly follow orders, waiting to be told what to do, including what to do with their money.
There are millions of people who have lost their retirement savings following the financial sales people.
When people are struggling financially, they arewilling to have the government save them, unwittingly exchanging their personal freedom for financial salvation.Keeping people ignorant about money is evil because many people do evil things for money, such as work at a job they do not like, work is not theirs, and expect someone else- like their family or the government- to take care of them when they are capable of taking care of themselves.
We are now coming out of the biggest economis boom in history. The problem is that the boom was caused by debt, not money; by inflation, not production; by borrowing,not working. In many ways it was money for nothing- because money was nothing. As keynes would say, our money was debached. We looked rich, but society as we knew it ws collapsing.
Homes are not assets. You are the asset- or rather your ability to pay the interest on the loan is the asset.
To quote the old saying: if your neighbor lossess his job, we are in a recession. If I lose my job, we are in a depression.
On August 15, 1971, Presedent Nixon Signed an executive order stating that the United States would no longer redeem the dolllar for gold.
Banker are not much different than financial planner or real estate agent who reached out to shake your hand, saying, "How may I help you?" Most bankers ar simply doing a job, earning a living like the rest of the system of money creation that steals our wealth. The same system also makes some people very rich.
Paper money is national, but gold was international, accepted as money even behing enemy lines.
Since bankers made money from interest payments, payments in find, it was not long before bankers began making more loans for more money than they had in their vault.
This is where the bankers pull rabbits out of hats. For example, they might have had $1000 in gold, silver, and gems in their vault, but they could have $2000 in receiptw in circulation that could lay claim to that $1000 in valuables. In this example, they created a fractional reserve of 2 of 1- two dollars in receipt for every one dollar in gold, silver, and gems in their vault. The amount of money in the bak was only a fraction of the receipts in circulation. The bankers collected interest on monay they technically did not have.
If you and I did this, it would be considered fraud or counterfeiting- yet it is prefectly legal for banks to do.
In modern terms, economists would say, " The ecomomy grew because the money supply expanded."
Many of these banks went bust when they got greedy and began lending our much more fractional receipt mony than they had in gold, silver, and gems in their vaults, and they were unable to cover withdrawal requests.
Federal Deposit Insurance Corporation(FDIC) rewards bankers for taking greater and greater risks with depositers' money. And while the FDIC claims tha banks pay for their insurance, the truth is that FDIC does not have enought money to cover todays' losses- so the taxpayer will have to cover them, in the form of bailouts. The Banker get away with billions of dollars. The american citizens get stuck with the bill.
Today, we hear the word bailout over and over. In reality,not all banks are bailed out. Bailouts are only for the biggest banks.
If the bank made too many bad loans, the FDIC would simply close the bank, payoff the depositors, and we and our investors would lose the equity we put in to start the bank. A payout is often the remedy for small bankers with no political clout.
The FDIC takes over the troubled bank on Friday and reopens it on Monday as a branch of the bigger bank. Again, this is a sell-off, not a bailout.
Actually, I believe we leverage our children's future to pay for our mistakes today. Technically, prior to 1971, the U.S. dollar was a derivative of gold. After 1971, the U.S. dollar became a derivative of debt. Severing the dollar from gold was bank robbery fo in godly propotions.
The reason quasi-insurance companies used the word swap rather than insurance is because a company required to have money behind the insurance policy. Swaps have no money backing them, which is a major reason why companies such as AIG creshed when the mortgage market crashed. It would be like finding out the insurance company that insured your car is broke- after you have an accident.
Eveything was fine until the subprime borrowers could not make their monthly payments, and the house of debt began to crumble in 2005. This financial mess stems from the Federal Reserve System granting banks the power to lend money they do not have, via the fractional reserve banking system.
In 1903, the Wright Brothers flew the very fast sustained airplain flight. In 1969, we put the first man on the moon. And now today, we have space shuttles that travel 17,320 miles per hour and that will soon be capable of flying to Mars.
Dr. Buckminster Fuller once said that when change went invisible, the speed of that change would increae exponentially- a concept he termed in an article "Accelerating acceleration".
Technology, and how that technology affects business, is changing at such a rapid it is nearly impossible to keep up.
Millions of people are unemployed because their skill set is no longer needed.
Traders are very short-term investors. The traders are in and out of markets, often ripping into the profits of the investors saving for a safe retirement or their kid's college education. Rather than use the words long term, a sophisticated investor would use the world exit strategy. A smart investor knows it's not about how long you hold on to an investment. It's about how you plan to increase your wealth with that investment over a stated period of time.
A mutual fund is like a multiple vitamin. Buying three mutual funds is like taking three multiple vitamins. You may take three different pills, but in the end you are taking many of the same vitamins-and possibly even overdosing on those vitamins!
Most financial Planners can only sell paper assets such as mutual funds, annuities, bonds and insurance. They will sell you what they are allowed to sell, not necessarily what we need, and that is not diversification.
They can sell you more paper assets, and because it spreads their risk in case they are wrong. Often, they don't have your best interests at heart.
Please remember to ask ourself " How can I afford it?" or " How can I do it?" I finally realized my life a sum total of my words.
Prior 1971,the dollar was a derivative of gold. After 1971, the dollar became a derivative of debt, an IOU known as U.S. bonds and T-bills, backed by the promise of the U.S. taxpayer to pay the bills.
Money is knowledge. That knowledgeis begin with the power of words. Words allow you to speak the language of the conspiracy, and speaking th esame language allows you to tap into the power of the conspiracy without being a pawn, slave or victim of the cinspiracy. By speaking the language, you can play your own game, and the name of the game is cash flow.
I believe that " A job is really a short-term solution to a long-term problem."
" The rich buy assets. The poor only have expenses. The middle class buys liabilities they think are assets."
"The reason so many financial advisors are called brokers is because they are often broker than you."
Many people are seeking a job security, but the people with the most security are in prison.
The more security you seek, the less freedom you have. I am looking for a financial freedom wherever I go and live.
E stands for employee
S stands for small business or specialist, such as a doctor or lawyer.
B stands for big business (over 500 employees).
I stands for investor.
"Wall street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway."
It is important for you to figure out what your mission is nd to write it down and revisit it often.
Our success depends upon the quality of our team.
One way to be a great leader is to keep learning and keep accepting feedback from your dream.Accepting feedback is essential to being a leader.
Success come with understanding the rules and working as efficienctly as possible in accordance with those rules- which is why smart to have a good lawyer on your team!
If you want to improve your communications with money, begin by learning the words of money.
"Cash Flow" -is Bottom line. Learn to control cash flow.
If we want to protect our life, home, and family from the big bad wolves of the B and I quadrant, you need to build your own B-I tringle. Put our own team of eight integrities together.
Every credit card in our wallet is attached to a major B and I quadrant business. B and I corporations that contribute billions of dollars to political elections. You have one vote, but they have millions of dollars to influence votes.
The doctors in the E and S quadrants have very little power over the B's and I's of the world of Pharmaceuticals and insurance. It is the powerful teachers unions that dominte the world of education. Unions are about money and benifits for teachers, not for education of kids.
Money is knowledge. That knowledge begins with the power of words.Words allow you to speak the language of the conspiracy. By speaking the language, you can play own game, the name of the game is cash flow.
A mortgage reset occurs when a mortgage comes due and the banker resets the interest the interest rate to the prevailing market rate, which often results in a higher interest rate for the buyer and means a higher loan payment.
Foe example, let's say a subprime couple buys a $300,000 house they cannot afford. To lure the couple in, the bank offers them a $330,000 loan, financinf for 110 percent of the home's value, at a ridiculous teaser rate of 2 percent. Sometime later, the loan resets to a higher interest rate of 5 percent, and then still later at 7 percent. With each reset, the monthly mortgage payment becomes more expensive, and soon the couple defaults, the mortgage is foreclosed, and the couple loses their house. In recernt cases, the house has probably fallen in value, as much as 50 percent of the mortgage amount. So in this example, the house might now be worth only $150,000, but still have a loan of $330,000. The bank has to write down losses of $18,000, causing havoc in the banking sector and major losses for sharehoiders as more and more foreclosers stack up.
When subprime borrowers couldn't pay their mortgages any longer, the expansion of debt stopped and the debt market collapsed, which led to our massive financial crisis today.
Prepare for bad times and you will only know good times.
"The higher the return, the higher risks." That is absolutely not true- if you have a solid financial education. I always look to achieve infinite returns with my investments.
The way you print your own money is by achieving an infinite return on your money.
"International super-currency" use in Russia, have no value. They are just government-manipulated frauds designed to steal money form your pocket via inflation. In mu poinion, gold and silver are still better assets to hold than any currency.
When we have excess amounts of cash flow,we should hold it in gold and silver because gold and silver can be used as hedge against uncertain monetary policy like Fed's printing of trillions of dollars rather than watching those those dollars fall in value as inflaction rages, I hold my excess money in gold and silver and watch their prices rise with inflaction.
Get financially educated. The best way to learn is through practice or simulation. Money doesn't make you rich; your knowledge does.
Life insurance policies- Inflaction makes your policy worth less and less every year. Also financial planners push these investment because they make money off of them, not because they are necessarily good for you. That being said , whole life insurance policies are good for people who are not able to save and for those who have very little financial education and do not know how to invest successfully.
Dear Friends,
As I've said, knowledge is the new money. Continue to educate yourself in money and investing. Increase your financial IQ. Also, study the CASHFLOW Quadrant and Understand what makes you poor : taxes, debt, inflaction, and retirement accounts.
Train yourself to think on the B and I side of the quadrant, and learn how to minimize your losses in taxes, debt, inflaction, and retirement accounts.
By shifting your knowledge to the B and I side of the CASHFLOW Quadrant you can learn to make millions without paying taxes, make your money with other people's money, and find assets that increase in value with inflaction and provide passive income for your retirement. There is no magic formula bullet, just hard work and education.
Thank you for your reading and think for your life.
With Love
Rich Son
