Sunday, June 22, 2014

Financial Foolery

Everyone who understands money by now probably knows that debt is bad, unless someone else is paying for it, and the name of the game is "Who is indebted to whom?"  What many people need to become clear on, if they are seeking a financial education that is, is what exactly is a safe place to put your money?  Well if you listen to the wrong people, they will teach the wrong thing, and for this reason many people are led craftily led to the slaughter by corporations who are always seeking to sell you something.

These salesmen can often be heard saying, diversify, invest in stocks, bonds, mutual funds, CDs, gold, silver, buy crypto-currency, and many other investments, but an investment is only safe if you know fully well how to make money in that investment.  Rather than knock those investment vehicles, let me just safely say that there are ways to make money in some markets, provided you get in at the right time, and not everyone has access to investment opportunities that the ultra wealthy do, largely because the SEC sanitize most investments for the public.  (Making them effectively worth very little.)

If you invest in something that you are uneducated in, it's not the investment that is risky, it's your lack of education that is risky, and you can minimize a lot of risk by learning more about something before you get into investing in it.  Now, most financially educated people will tell you that holding cash is a horrible idea, and that's because if you aren't putting your money to work, either via a business, real estate, or working it through investing, then it's losing it's value to what is known as inflation.

Which is where the value of money goes down, which is often realized by most people as inflation, as the prices of things go up, and that's because your money won't buy as much as it use to.  This of course is why they say "Parked money is losing money", a great quote from a great financial educator, Robert Kiyosaki.  Who also teaches about the velocity of money, which means if you can take a nominal amount of money, keep reinvesting it, then you can through the power of tax laws, legal loopholes, and by other means increase your wealth exponentially.  (It's a magnificent concept truly)

Of course those things are beyond the scope of this blog, naturally, and the point I want to drive home here is, money is very corrosive, and it will dissolve in your hands if you hold on to it for too long.  Meaning, if you aren't using your money to make money or more importantly to buy assets, then you are losing money, and that fact becomes all the more apparent if you begin to start spending the money on things you want that aren't financially beneficial to you, like fancy cars, a nice house, expensive clothes, etc.

Add to the fact that money is corrosive, most people don't know where or how to invest money, and so I'll give you the greatest tip you will ever receive about money & investing, the greatest investment you will ever make is in your financial education.  That's because without that, you will have a difficult time sorting through the hoopla that is the financial world, and that's something that requires some serious study!

There is a lot to learn truly, indeed there are many subjects that you will need to explore, and more importantly you will need to seek to gain as much understanding & wisdom as you can if you want to have even a fighting chance at thriving in the financial world.  Of course everything happens in cycles, but cycles change, they can be infrequent, and nothing is 100% for certain, for everything in life is indeed a gamble when you really break it down.

Money is manipulated by the central banks, most markets & currencies too, and the corporations (including the central banks) more or less seek to continue to raise inflation, despite what the economy of a nation may or may not support, and considering where the economy of America is right now, I'd be willing to venture that America couldn't possibly afford much more inflation without serious civil unrest ensuing amiss this massive economic downturn.  I've heard reports of serious food inflation coming, gas prices as well, but those things are going to lead to serious consequences, and indeed it's true that "The love of money is the root of all evil", for greed is truly evil to those who suffer under it!

Ultimately the central banks are in the process of transferring a massive amount of wealth & assets to the banks, which means there will be a lot of people filing for bankruptcy, unable to pay their mortgages, and becoming homeless, of course this has all been orchestrated by the ultra wealthy banking cartel by what is known as trickle down economics.  Economic hardship works in favor of the money printers, as there is no longer an enough currency in circulation (in the people's hands), jobs become fewer, and banks begin to decline many loans, a massive contraction of the economy occurs.

The saddest part about the whole story is that many people believed in the Ponzi-Schemes of investments like 401k & Roth IRA, but when the stock market crashes again, and it's coming soon, many people will begin to lose their retirements, banks will be locking up, and a massive amount of assets will not only be frozen, but many people will become very upset.  I wish this wasn't the case, but it's clear to me today that we are headed for something immensely ugly, and it will entail the entire world entering into a depression worldwide like we have never seen.  (Of course I hope I'm utterly wrong here, truly.)

People don't just get upset when they lose, they often give up, and if enough people give up, well that's it for the business world.  Nobody will want to lift anymore shovels, people will begin to get angry, chaos will ensue, and some will want revenge upon the countries who were responsible for it all.  Some may think that centralized government is the answer, but I'm not so sure that governments will be safe in the times ahead, or even functional for that matter.

It's really tough to give rock solid financial advice to people, because everyone is different, everyone wants to remain in control of their money (if they are smart), and there is a lot of risk involved no matter which road you choose, but how you handle the risk largely determines how successful you will become.  People that invest too much in one thing often get left holding a bag of trash, like those who invested in retirement funds, and I'm not trying to be pessimistic or cynical here one iota, and that's because the markets aren't just dead, they are indeed crumbling apart at this time, the banks too!

Finally I'd like to close leaving you with this link, for it talks about the other side of the fence, a dysfunctional government running into complete tyranny, and the results of much corruption is leading us towards problems which will in turn cause a lot of damage worldwide.  We have some serious issues to consider on the table today, it's going to require serious thinking, and so if you want to get sharp, then build a network where you can discuss the serious issues at hand.

My last financial blog was "Money Over Mind", don't miss it!

Fabian is an amazing speaker & covers a lot of important topics.

Thanks for reading, but please remember to share this blog, and don't forget to support this blog via PayPal (, so I can continue to help educate the world.

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