Useful Financial Notes
Asset
You may notice that today, when banks foreclosure on a property, they do not want the house.
Homes are not assets.
You are the asset - or rather your ability to pay the interest on the loan is the asset.
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Money is Knowledge
In simple terms, real estate is not worth much if there are no jobs, because jobs attract people, and where people are flowing, cash is flowing.
Since the first New Rule of Money is Money is Knowledge, your knowledge of money must include learning to use debt and learning to control your personal cash flows, as well as monitoring the flows of jobs, people and money throughout the world.
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Gold and Purchasing Power, Currencies Value
In 1970, one thousand dollars would have bought approximately 28 ounces of gold.
By March 2009, with gold at approximately $900 an ounce, those 28 ounces of gold could be sold for around $25,000 - even after the largest stock market crash in history.
The purchasing power of the dollar has dropped by 87 percent. As stated earlier, all fiat currencies, government-sponsored Monopoly money, have eventually gone to their true value -
zero.
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Inflation,Deflation and The Government
A loan for an investment property that you rent out is good debt if the asset's cash flow covers the debt payment and puts money in your pocket.
What is not debatable is that without debt, our entire economy would collapse.
That is why our government is issuing record numbers of bonds to raise money. That is why it is engaging in deficit spending like never before.
The government's greatest fear is deflation, and the one way to combat deflation is by inflation.
And the one way to create inflation is by debt.
---------------------------------
You may notice that today, when banks foreclosure on a property, they do not want the house.
Homes are not assets.
You are the asset - or rather your ability to pay the interest on the loan is the asset.
-------------------------------------------------
Money is Knowledge
In simple terms, real estate is not worth much if there are no jobs, because jobs attract people, and where people are flowing, cash is flowing.
Since the first New Rule of Money is Money is Knowledge, your knowledge of money must include learning to use debt and learning to control your personal cash flows, as well as monitoring the flows of jobs, people and money throughout the world.
-----------------------------
Gold and Purchasing Power, Currencies Value
In 1970, one thousand dollars would have bought approximately 28 ounces of gold.
By March 2009, with gold at approximately $900 an ounce, those 28 ounces of gold could be sold for around $25,000 - even after the largest stock market crash in history.
The purchasing power of the dollar has dropped by 87 percent. As stated earlier, all fiat currencies, government-sponsored Monopoly money, have eventually gone to their true value -
zero.
---------------------
Inflation,Deflation and The Government
A loan for an investment property that you rent out is good debt if the asset's cash flow covers the debt payment and puts money in your pocket.
What is not debatable is that without debt, our entire economy would collapse.
That is why our government is issuing record numbers of bonds to raise money. That is why it is engaging in deficit spending like never before.
The government's greatest fear is deflation, and the one way to combat deflation is by inflation.
And the one way to create inflation is by debt.
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