Everything Has Been Planned – Survive This Market Crash
In 1967, I hitchhiked from New York City to Montreal to visit Expo 67: Man and His World, promoted (as previous ones had been) as “The World’s Fair of the Future.” The U.S. Pavilion at the World’s Fair was Fuller’s geodesic dome.
In 1973, I returned home to find my poor dad without a job, paycheck, or pension. Worse, he was losing his spirit.
When he suggested that I follow in his footsteps — to go back to school, get my Master’s degree, and get a job in corporate America or with the government — I was facing two paths in life.
One path was to follow the path of my poor dad’s conventional wisdom. The other was to follow my rich dad and pursue education by experience.
I chose to follow in my rich dad’s footsteps — choosing to forsake job security and a pension.
In doing so, I also chose to study under one of the most brilliant men to live, a man who shared similar ideologies to my rich dad: Bucky Fuller.
Fuller passed on July 1, 1983, approximately three weeks after the last time I studied with him. I remember that, just after his death, I immediately got a copy of his book GRUNCH of Giants and read it.
Fuller was saying many of the same things my rich dad had been teaching his son and me.
GRUNCH stands for “Gross Universal Cash Heist.” GRUNCH of Giants is the story of how the ultra-rich “rip oﬀ” the world.
GRUNCH and academic elites are not necessarily the same people. Fuller did not refer to elites as GRUNCH. From Fuller’s lectures and books, my recollection is the elites are puppets, and the people running GRUNCH are the puppeteers. As you know, puppeteers are rarely seen. They prefer to remain behind the scenes, in the dark.
Fuller described GRUNCH as a level of human beings that manipulate the world via money, government, international organizations, big corporations, the stock and bond market, and the economy for their personal agenda. GRUNCH is invisible— “hiding in plain sight”—to most of us.
Fuller was a futurist. Many of his predictions and concerns in GRUNCH are coming true today,
After reading GRUNCH of Giants, I could see our current financial crisis coming—I just did not know exactly when it would arrive. One reason why my investments and business ventures do well, in spite of this economic crisis, is because I read GRUNCH of Giants. The book gave me time to prepare for this crisis.
I began to understand why we do not teach kids about money in school. I also knew why I was sent to Vietnam to fight a war we should never have fought. Simply put, war is profitable. War is often about greed, not patriotism. After nine years in the military, four attending a federal military academy, and five as a Marine Corps pilot who served in Vietnam twice, I could only agree with Dr. Fuller. I understood from firsthand experience why he refers to the CIA as Capitalism’s Invisible Army. For the first time in my life, I wanted to study a subject, the subject of how the rich and powerful exploit the rest of us—legally.
The Prophecy is Real
In 2002, my book Rich Dad’s Prophecy was published and it explained how Defined Contributions (DC) pension plans, like the 401(k), are being ripped off and doomed to fail. In Prophecy, I predicted GRUNCH’s heist of DC pensions would be exposed.
It all started in 1974 when ERISA, the Employee Retirement Income Security Act, was passed. ERISA was pushed through by the lobbyists, Big Banks, the Fed, Wall Street, and thousands of other special interest groups, the military, teachers’ unions, and NGOs that want government tax dollars. Four years later, we saw the origins of the 401(k).
ERISA paved the way for the 401(k), IRAs, and employee pension plans. ERISA opened the doors to the big casino known as the stock and bond markets to millions of poor and middle-class workers without any ﬁnancial education. By 1978, millions of amateurs were forced into the giant casinos of banks and Wall Street, owned by the rich.
The WWII generation had a deﬁned beneﬁt (DB) pension plan—a paycheck for life. Financial education for the WWII generation was not necessary because DB plans had “professional management.” Then DB plans ended. The corporations that used to oﬀer DB plans stopped because DB plans for their employees were too expensive. Today, only a few Baby Boomers have DB plans, retirement plans that give them a paycheck for life.
Today, even Baby Boomers with DB plans are worried. The Wall Street Journal states, “Some public-sector workers are living with uncertainty as cash strapped governments consider pension cuts.”
The reason many DB pensions are in trouble is that they based their computations on a 7.5 percent return on their investments and that most Boomers would not live past 70. The good news is Boomers are living longer. The bad news is the markets have not always cooperated in delivering on projections.
Add this to the unsettling mix of facts and ﬁgures: 10,000 Baby Boomers are retiring every day.
The crisis will turn into a ﬁnancial disaster in 2026 when the ﬁrst Boomers turn 80 and need more and more long-term health care … just when Social Security and Medicare go broke.
Pensions Are Crashing
When you look at the 125-year history of the Dow, you may understand why I am concerned. I believe the paradigm is about to shift.
On the Dow chart, the Giant Crash of 1929 is highlighted for a reason. If you step back, and look at the 1929 crash, and then compare that crash to the “dot.com crash” of 2000, and the “subprime crash” of 2008, you can see the ﬁnancial booms and busts the world has been experiencing have been caused by trillions of dollars in fake money being pumped into the system by the elites.
Millions of people are investing in fake assets with fake money. Every paycheck, money is extracted and sent to Wall Street via retirement savings programs such as 401(k)s, IRAs, or government pensions. Millions “save for retirement” for years, hoping their money will return multiplied. Millions of people my age, Baby Boomers, will soon ﬁnd out they do not have enough money to support themselves after they retire. That’s because the money that was taken out of their paychecks went to fake assets, making the rich richer—and leaving them holding the bag.
Change the World
Education is our best weapon in fighting the Fed. It can start by simply changing the words you use and how you think about money.
For generations, parents have told their children to “go to school, get a job, work hard, pay taxes, save money, buy a house, get out of debt, and invest for the long term in a well-diversified portfolio of stocks, bonds, mutual funds, and ETFs.”
Words have power. If everyone changed their words, we the people would be smarter, richer, and happier. And that’s why changing the words—those in your head as well as those you speak—is the first step if you want to beat the Fed.
Words have the power to make you rich as well as keep you, or make you, poor. Change your words and you will change your life. The best news is that words are free.
Editor, Rich Dad Poor Dad Daily