Make Sure The Gravy Train Stops For You To Get Onboard
I’m writing this blog post today on a topic I do not usually get too deeply involved with here. But an email I received from Mike Maloney of GoldSilver.com made me think about what many of my readers may be increasingly looking at as they build their wealth and net worth as their business grows. I wanted to share with readers who are both business owners and careful investors the shocking realities of where your financial investment is going if you are on the derivatives gravy train.
If you are a fan of Robert Kiyosaki (Author of: ‘Rich Dad Poor Dad‘ and more recently ‘Conspiracy Against Your Money‘) or you know about Wealth Masters International, Mike is the guy who advises these big hitters on how to use precious metals to create wealth and maximise return on investment .
There’s another reason I felt compelled to write this post too… Increasingly, I find myself becoming frustrated at the fate of the little guy’s struggle to survive, in the face of the massive bail-outs of the banks going on … The more I learn, the more determined I am to make time to empower those prepared to listen, in order to learn more and to make different choices about their life, which make all the difference in terms of having greater freedom and control over their own and their family’s future.
My ambition is to become wealthy – I make no apologies for this. After personal life crisis and experience of poverty, I am committed to increasing my financial literacy and lift myself into a position, where I am financially free to make choices about my own future. So if anyone else reading shares this aim of achieving a dream lifestyle of your own design, you too need to be thinking about where to take your money to where you can be more sure that your accrued wealth is safe.
What has this to do with business ownership? Answer: EVERYTHING! It’s about PROTECTING your ASSETS. Many business owners do reinvest their profits back into their business, but no doubt financial advisors will have recommended ‘spreading risk’ or ‘diversification’.
Even if you are not one of the millions of independent business owners, but you are one of those careful savers, financially savvy enough to be already in the process of investing in your nest egg, or at least researching your options and wondering if it’s still going to be there by the time you are ready to retire, this eye-opening discussion is for you…
Recently, Goldman Sachs was cited for unethical financial practices, as the activities of the financial giants come under greater scrutiny. Meanwhile, back in May, quarterly eye-opening reports from the big Wall Street banks declared that NONE of the big four banks had a single day in the first quarter in which they lost money trading. So, in other words, for the 63 straight trading days in the first quarter (Q1) of 2010, the beneficiaries of the average Joe’s taxes, Goldman Sachs, JP Morgan, Bank of America, and Citigroup made money trading for their own accounts.
These very banks benefited from a redistribution of wealth from the taxpayer when ‘bailed out’ as “too big to fail” at 0% interest.
Trading, of course, is supposed to be a risky business; lots of little guys get gobbled up! But so risky that these …….. (my first ever self-censorhsip on my blog – they can afford better lawyers than I!) apparently deserve to be paid millions for protecting their firms’ precious capital, whilst NOT lending back to the “high-risk” people and business “liabilities” who paid for their satin cushion for their fat-cat ….. to land on in the first place!
So tell me, reader, what is so shocking about generating profits paid for by the average person, at the behest of government? Let’s look at the maths….
Borrow $1,000,000 @ 0% interest from taxpayers, represented by the government.
Then lend that money back to the US government at 3%-4% interest rates = 3%+ gains
Then take into account LEVERAGE: i.e. banks can borrow at least $10 for every $1 of equity capital they have, to thus increase the size of their “bets”; so in turn, relatively small amounts of equity borrowed, can be transformed into huge profits.
What is really hard to swallow, is that the taxpayer pays twice if they then want to borrow from these financial institutions, but are told that they are too much of a risk to lend to! That is insult to injury! This, of course, is the reality that many business owners are facing right now, both in the USA and the UK. Austerity only applies to the majority, it seems…
Recently, it was also reported that the lending rates between banks were rising steadily, thus ensuring the position of the big boys in the future… It just gets worse, the more you focus on the money games going on.
In view of this, as business owners, I think we have a duty to ourselves and the communities we serve, to not add to the already swollen coffers of fat cats getting the cream… The fate of the fiat currency which they trade in with you and me is destined to crash… That gravy train is on the way to being derailed… Check out this video, Mike Maloney posted to his site.
If some of this was gobbledegook, it’s absolutely time to start to focus on your financial literacy – knowledge is power! Financial ignorance will get your pockets picked!
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