The Real Future Of The Economy
In 2002, I wrote Rich Dad’s Prophecy, a book forecasting the biggest stock market crash in the history of the world that was anticipated sometime after 2016.
Rich Dad’s Prophecy is a forecast about the Baby Boomers, the most affluent and luckiest generation in world history.
This generation ascended into great wealth only to end their lives much like my poor dad, living in poverty or just above poverty, without jobs, paychecks, and pensions.
At the time of the book’s publication, the stock market was breaking records left and right, at least numerically. There was little doubt in the establishment’s mind that the stock market and mutual funds would solve the retirement problem for many Americans.
As would be expected, the Wall Street media trashed the book.
Many people believe they are safe because the stock market will recover for the long term.
But the market will not recover.
It will fall.
In 1967, I was a student at the U.S. Merchant Marine Academy at Kings Point, New York.
That year, Expo 67 – The World’s Fair on the Future – was held in Montreal, Canada. My classmate Andy Andreasen and I hitchhiked from New York to Montreal to see the future. We were excited to see the U.S. Pavilion, a giant geodesic dome created by Dr. R. Buckminster Fuller, a “futurist.” Expo 67 was a mind-blowing, consciousness-expanding, life-changing event for Andy and me. We did see the future.
To say Fuller was controversial, would be an understatement.
Reading GRUNCH in 1983 was disturbing. The words that disturbed me most were Fuller’s words about “playing games with money.” Fuller did not specify or give examples of “the games” being played… so I began looking for them.
In 1983, I became a student searching for the different games GRUNCH was playing on you and me via our money. There are many, many, many games. Every time I turned over a rock, I uncovered a new “game”—like a snake, slithering out and heading for cover.
Rich Dad’s Lesson #1 is: The rich don’t work for money.
I’m often asked to explain what I mean by that. Why don’t the rich work for money?
Because after 1971, the year President Nixon took the U.S. dollar off the gold standard, all money became fake money. Why work hard for fake money and pay higher and higher taxes the more fake money you earn?
The Federal Reserve
The Founding Fathers opposed central banks like the Federal Reserve.
President George Washington experienced the pain of government-made money when he had to pay his troops with the continental, a currency that eventually went to its true value—zero.
Thomas Jefferson adamantly opposed the creation of a central bank. Yet today central banks control the financial world, and we’ve granted them the power to solve our financial crisis for us, the very crisis they helped create.
Simply said, a central bank can create money out of nothing and then charge us interest on money it did not earn.
That interest is paid via taxes, inflation, and, today, deflation…which results in the loss of jobs and value in our homes.
The policies of the Fed aren’t abstract realities. They are powerful actions that determine your financial well being in both open and hidden ways.
The U.S. Federal Reserve Bank is not U.S. and it is not Federal; it has no reserves, and it is not a bank.
The Fed is a banking cartel. Not all members of the Fed cartel are American. In 1983, Bucky Fuller didn’t name names in his book GRUNCH. I had to do my own digging. My research, prior to Google and search engines, led to the Rothschild Banking Dynasty, the Morgans, and the Rockefellers.
When the Federal Reserve was created in 1913, a deal was cut between the bank and the U.S. Treasury—a government-sponsored cash heist.
Without a solid understanding of history and how money is created, true financial education is not possible. To simply say to a child, “Get a job, save money, buy a house, and invest for the long term in a well-diversified portfolio of stocks, bonds, and mutual funds” is a script right out of the central banker’s operating manual. It is a success myth propagated by the super-rich.
While attending a class with Dr. R. Buckminster Fuller, I was disturbed to hear him say, “The primary purpose for government is to be a vehicle for the rich to get their hands into our pockets.”
Although I did not like what he was saying because I only wanted to think great things about my country and its leaders, based on my own experiences, I knew there was some truth in what he was saying.
Until that time, I had my own secret doubts about government. As a child, I often wondered why the subject of money was not taught in school. As a Marine pilot in Vietnam, I wondered why we were fighting the war. I also witnessed my dad resign his position as superintendent of education to run for lieutenant governor of the state of Hawaii because he was very deeply disturbed by the corruption he found in government. An honest man, my dad could not stomach what he witnessed after he became a high-ranking government official, a member of the governor’s staff.
So, although Dr. Fuller’s words were not words I wanted to hear because I love my country and do not like criticizing it, his words were disturbing enough to become my wake-up call. In the early 1980s, my study began, and my eyes were opened to facts that many powerful people do not want us to see.
Today, many people grumble, criticize, and complain about big banks, politicians, and the financial crisis. To me, that is a waste of time.
As G. Edward Griffin states in his book The Creature From Jekyll Island, “Bailout is the name of the game.” In other words, what you see today is the real game of the Federal Reserve System. The system was designed to allow big banks with political clout to make a lot of money, fail, and then be bailed out by the taxpayers.
In the process, the rich get richer and the poor get poorer. This Fed is not for you. It’s for the rich and powerful.
Rather than rail against the Fed, you should ask, “How can I minimize the effects of the Fed on my personal financial situation?”
If I had not begun preparing years ago for this crisis, I, too, might have been an aging baby boomer watching my pension dissolve and my home decline in value, fearing I would soon lose my job, and my health insurance.
And worst of all, I might have become dependent upon the government via Social Security and Medicare, just like my poor dad.
Tomorrow we share what you can do to prepare for this future. Stay tuned.
Editor, Rich Dad Poor Dad Daily