Escape the Descent into Socialism

Dear Reader, 

Ask yourself this, who controls education, and who determines what is taught in our schools?

In 1903, John D. Rockefeller created The General Education Board. There was much controversy about why he created this organization. Some people say he created it to improve education. Others say he did so to hijack the educational system of the United States.

Around the same time, another baron, Andrew Carnegie, promoted his Foundation for the Advancement of Teaching. It seems both Rockefeller and Carnegie were working to influence the American educational agenda to determine what students were allowed to learn in school.

The question is, what was their agenda?

While some people will say Rockefeller and Carnegie were working for the good of our children, others say exactly the opposite.

In my search, I came across reports written 60 to 100 years ago — inflammatory reports from credible people — reports that were hard to believe. What they accused Rockefeller and Carnegie of orchestrating is a crime against the American people.

What were the crimes? Destroying any real future these children could ever have by banishing any form of financial education from the school systems. Without this knowledge, children could not become entrepreneurs or businessmen. No, they would become something much more important to Rockefeller and Carnegie. They would be forced to become employees and do the work for the mighty financial titans.

Today, looking back on those reports with decades of hindsight, there does seem to be some validity to their concerns. Rockefeller and Carnegie wanted to break the American spirit—and using the education system to do so.

Americans are individuals who left their countries of birth for freedom from oppression and for the opportunity of a better life—a shot at the American Dream. This made the DNA of Americans too strong, too independent, and too ambitious to be subservient to the rich and powerful. Too strong to be just employees.

Those critical of Carnegie and Rockefeller believed that before the rich and powerful could gain further control over Americans and the wealth of America, the American spirit had to first be weakened, that Americans had to be made dependent upon a job and the government for financial support.

Once the spirit was broken, the minds of Americans would be owned by the very people in charge of the school system. This is important to the “Elites” because now that they own our minds, they can manipulate us to do or believe nearly anything. This is really why there is no financial education in our schools.

One of the major goals in hijacking our minds is the control of our money…

Enter: The Federal Reserve Bank

Let’s discuss the second player in this “conspiracy”, the Federal Reserve Bank. In 1913, after several years of financial instability and the fear of a World War, Congress created the Federal Reserve Bank.

Americans were scared and thought that a national bank would protect them from panic. This happens often. The government uses a time of fear to grab more power. This happened even though some of our Founding Fathers were against a Central Bank and thought the concept unconstitutional.

American citizens were told that the Federal Reserve would provide a reserve of liquid assets and also allow for currency and credit to expand and contract with the movements of the U.S. economy. The Federal Reserve was created on December 23, 1913, when President Woodrow Wilson signed the Federal Reserve Act into law.

The Federal Reserve, as we know it today, has four general responsibilities:

It conducts the nation’s monetary policy by influencing money and credit conditions in the economy. In other words, the Fed changes money and credit conditions to get as close to full employment and stable prices as possible.

It supervises and regulates banks and other important financial institutions to protect the nation’s financial health and (supposedly) the credit rights of consumers like you and me.

It maintains the stability of the financial system and contains any types of systemic risk that arises. (Think: fixing extremely low-interest rates during the recession.)

It provides financial services to the U.S. government, U.S. financial institutions, and foreign official institutions.

In my estimation, however, the Federal Reserve Bank only has two powers: to create money out of thin air and to lend money they do not have. 

As a side note, it’s important to understand that the Federal Reserve Bank is not federal, has no reserves, and is not a bank. Yet, as explained above, the Federal Reserve Bank has the power to control the money supply of the U.S.

Fake Economy

From 2008 until 2014, the U.S. Federal Reserve ran a quantitative easing program by increasing the money supply. Quantitative Easing (or QE) was successful in reflating the US economy following the financial crisis in 2008. It is the reason the United States never fell into a depression or even severe recession.

Last March, at the start of the pandemic, the Fed fired up the program again. Because of QE, interest rates are very low, property prices continue rising (and moving up sharply in some locations) and the stock market is at an all-time high. 

Rising asset prices have caused “Household Net Worth” to return to its pre-crisis high, creating a Wealth Effect that drives economic expansion by fuelling consumption.

The problem, of course, is that when QE ends, interest rates will rise, property prices will fall, the stock market will tumble, net worth will shrink and the economy will go back into recession. 

My wife Kim recently hosted an episode of The Rich Dad Radio Show with our good friend and financial expert Nomi Prins who explained what is happening: 

“Remember that, long before Covid-19 hit, the financial crisis of 2008 was met by a multi-trillion-dollar Wall Street bailout. At the same time, the Federal Reserve cut interest rates to zero, while purchasing U.S. Treasury and mortgage bonds from the very banks that had sparked the disaster.  Its assets then rose from $870 billion to $4.5 trillion between August 2007 and August 2015. On the other hand, the U.S. economy never quite reached a growth level of, on average, more than 2% annually in the years after that near collapse, even as the stock market regained all its losses and so much more. The Dow Jones Industrial Average, aided by an ultra-loose monetary policy, steadily rose from a low of 6,926 on March 5, 2009, to 27,090 by March 4, 2020, which was when Covid-19 briefly trashed its rally.

However, within a month of the market dip that followed widespread shutdowns, its climb was refortified by similar but larger maneuvers, as Federal Reserve policy was once again deployed to save the rich under the auspices of saving the economy.”

Real Economy

The ultra-rich will never suffer like the middle class and poor do during a financial crisis. The institutions that are deemed “too big to fail” will always be bailed out. This also means that sometimes big institutions prefer financial crises because they know they will be bailed out, and they also know they can make a lot of money from those bailouts. 

Nomi explained this wealth gap further by saying:

“The U.S. wealth gap continued to widen dramatically as economic inequality increased yet again in 2020 thanks to the coronavirus pandemic. That’s because the health and economic devastation it inflicted affected low-wage service workers, low-income earners, and people of color so much more than the upper-middle class and elite upper class.

Meanwhile, as 2020 ended, the richest 10% of Americans owned more than 88%of the outstanding shares of companies and mutual funds in the U.S. The top 1% also controlled more than 88 times the wealth of the bottom 50% of Americans.” 

People still do what they have been taught to do; they go to school, work hard, pay their bills, save, invest their money in mutual funds, and hope that things will return to normal. That is why everyone was in favor of President Trump and now Biden sending out stimulus checks. 

Few people realize that the root of our problem is our money—the very thing they work for and hang on to. Few people realize that those who control the money supply want us to need more and more of their toxic money. The more we need money, the more money they can print. The more we need money, the weaker we become. The more we need money, the more we’re headed toward socialism. Rather than teaching people to fish, the government gives people to fish, and people become dependent upon the government to solve their money problems.

Real Financial Education

Real financial education can be broken into two parts. They are Financial Literacy and Financial IQ.

Financial literacy is the ability to read and understand the language of money. In Rich Dad Poor Dad, I explained the two important words of money:  asset and liability. As stated in the book, people get into financial trouble calling their liabilities assets. For example, they call their house an asset, and their car an asset, when they are liabilities.

Financial IQ is the ability to solve financial problems. Recently, a poll stated that the average American family cannot afford an extra $400 for an emergency. This means the average American has a Financial IQ of less than $400.

A person like President Trump has a Financial IQ, measured in dollars, in the millions. As a private citizen, if he had a $25 million unexpected expense, he could simply write a personal check. How high is your financial IQ? How big of an unexpected bill could you pay if you had to?

As the wealth gap widens, a real financial education levels the playing field. The road is still rough, and earning a million dollars is not easy. But a real financial education offers everyone greater control over their financial future. In other words, a real financial education puts your financial future in your hands.

Regards,

Robert Kiyosaki

Robert Kiyosaki
Editor, Rich Dad Poor Dad Daily

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Robert Kiyosaki

Robert Kiyosaki, author of bestseller Rich Dad Poor Dad as well as 25 others financial guide books, has spent his career working as a financial educator, entrepreneur, successful investor, real estate mogul, and motivational speaker, all while running the Rich Dad Company.

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