In 1964, I was 16 years old when I first noticed a copper tinge around a silver dime. I did not really know what the change in color meant—that copper tinge—but something inside of me knew something had changed . . . and that something was wrong. Little did I know I was sensing the effect of Gresham’s Law, which states: “Bad money drives out good.”

I had never heard of Gresham’s Law and operated on instinct when I went to my local bank and changed a $10 bill for $10 in rolls of dimes. As soon as I got home with my dimes, I went through the rolls of dimes and began pulling out the dimes with the copper tinge. The next day, I rolled up the dimes with copper—the “fake dimes” that I had identified—and returned them to the bank for new rolls of dimes.

For about a year, the process of exchanging paper money for rolls of dimes, quarters and half-dollars kept me entertained. Soon, I had a large canvas bag filling up with real dimes, quarters, and half-dollars . . . my life’s savings. In real money. As I said, I had never heard of Gresham’s Law. I just sensed that something was wrong.

In August of 1965, I received a Congressional appointment to attend the U.S. Merchant Marine Academy at Kings Point, New York. I headed off to school and left my canvas bag of money at home in Hawaii. I estimate I had almost $100 in real silver coins in that bag.

In 1966 I returned home to Hawaii from New York for Christmas break. When I could not find my canvas bag, I asked my mom what happened to my “life’s savings,” my canvas bag filled with coins. Her reply: “I spent it.”

Global Crisis

In 2021, the world is embroiled in a massive financial crisis. In some ways, this 2021 global crisis is the same crisis my mom experienced when she spent my bag of real silver coins. The crisis—the 2021 gap between the rich, poor, and middle class—has reached dangerous levels. If millions of Americans do not receive their next “stimulus check” there could be massive civil unrest with looting and burning like we experienced in 2020. Civil unrest and the gap between the rich and poor are byproducts of people, like my mom, who are not aware of Gresham’s Law, and why “bad money” is driving out “good money.”

In 2021, there are many reasons for the socio-economic problems America and the world are facing. In 2019, COVID-19 was definitely the proverbial “straw that broke the camel’s back.” But COVID-19 was only a straw. Today’s financial crisis has been brewing for years. Financial crises, like the ones we face today, are nothing new and world history supports that. Adolf Hitler came to power in 1933 due to Gresham’s Law. Zimbabwe collapsed due to Gresham’s Law. In 1971, today’s financial crisis began when President Richard Nixon took the U.S. dollar off the gold standard, again violating Gresham’s Law. Today’s financial crisis started in 2008, when the Fed printed trillions in fake U.S. dollars to bail out “too big to fail” banks.” The Fed, in that case, was violating Gresham’s Law.

Mrs. O’Leary’s Cow

Another example of a trigger to a massive disaster took place in 1871 when Mrs. O’Leary’s cow Daisy (as the story goes. . .) kicked over Mrs. O’Leary’s lantern, igniting her barn and starting The Great Chicago Fire. That fire destroyed 3.5 square miles of the city and left 120 people dead and thousands more homeless.

Mrs. O’Leary and Daisy were blamed for the massive fire, yet the facts show that conditions were perfect for a catastrophic fire. Much of the city was built of wood and Chicago was in the grip of a massive drought—both conditions perfect for a catastrophic fire.

The Growing Gap

In 1871, conditions in Mrs. O’Leary’s barn were perfect for a spark that would ignite The Great Chicago Fire.

In 2019, the world was ready for the COVID-19 Great Economic Disaster. COVID-19 was our Daisy, our Mrs. O’Leary’s cow. The economic disaster was going to happen, with or without a Daisy or a COVID-19.

The disaster that COVID-19 exposed was the growing gap—both financial and in terms of happiness— between rich and poor. In addition to income inequality, it is the growing financial unhappiness between the rich and everyone else that is the drought, the straw and the wood for the coming fire.

My concern is that the United States may be on the verge of another economic disaster, possibly a Great Fire of 2022.

The problem with printing trillions of fake U.S. dollars to pay our bills is that it causes the gap between rich and poor to grow wider. The problem is we keep violating Gresham’s Law. And our schools teach us little if anything about money.

The problem is that our academic elite, who know nothing about Gresham’s Law, believe giving poor people fake money will solve our financial problems. I see the history of financial disasters repeating itself because we keep violating Gresham’s law.

Causes . . . and Consequences

Dr. Thomas Sowell was born in North Carolina in 1930, grew up in Harlem, New York, served in the Marine Corp during the Korean War, graduated magna cum laude from Harvard in 1958, received a master’s degree from Columbia University in 1959, and earned his doctorate in economics from the University of Chicago in 1968, where he was a student of Milton Friedman.

Today, Dr. Sowell is an economist and senior fellow at Stanford University’s Hoover Institution. He is an African-American who has a lot to say about politics and the growing income and economic divide. Dr. Sowell is not popular on the left, but he is a darling of the right because he says such things as:

“Although the big word on the left is ‘compassion’ . . . the big agenda on the left is dependency.”

He also says:

“When you want to help people, you tell them the truth. When you want to help yourself, you tell them what they want to hear.”

I do not know if Dr. Sowell would agree with me or not, but I believe one of the primary reasons for the growing gap between rich, poor, and middle class goes back to Gresham’s Law—bad money driving out good money.

I do agree with Dr. Sowell on this point: If we want to help people, we need to tell them the truth.

In 1965, when my mom told me she took my canvas bag of silver coins and spent it, I sensed that my family—and the world—was in trouble. I did not have the heart to tell her the truth, the truth being that she did not know the difference between real money and fake money.

In 2021, the truth is that most poor people still do not know the difference between real money and fake money.

If we do not know the difference between real money and fake money, the gap between rich, poor, and middle class will continue to widen and civil unrest might be only one of many troubling consequences.

Trillions . . . in Fake Money

In 2021, President Joe Biden is expected to print an additional $4 to $6 trillion in fake U.S. dollars.

In 2021, millions of once-productive Americans are now waiting for their “stimi checks.” Who can blame them? Why not wait for free money? As Thomas Sowell said:

“When you want to help yourself, you tell them what they want to hear.”

Dr. Sowell also says:

“The fact that so many successful politicians are such shameless liars is not only a reflection on them . . . it is also a reflection on us. When the people want the impossible, only liars can satisfy.”

I want to point out that I am not pushing a political agenda or a conservative or liberal philosophy. I am not a Republic or a Democrat; I am an Independent. I write simply because, as Dr. Sowell says, “When you want to help people, you tell them the truth.”

The facts are that, in 1971, President Nixon’s action that took the U.S. dollar off the gold standard meant that the U.S. dollar became “fiat” money or, more accurately, “fake money.”

One reason Donald Trump and I wrote two books together is because most people, even highly educated people like my poor dad and my mom, did not know the difference between real money and fake money.

That is why the gap between rich and poor will grow. The problem today is that highly educated people like my mom and dad do not know or understand Gresham’s Law. They do not know the difference between good money and bad money, real money and fake money. This financial ignorance is the crisis.

In 1964, I began saving silver and since the mid-1970s I have been saving gold, although it was illegal for Americans to own gold prior to 1974. Gold and silver are ‘god’s money.’ They have been here since the earth was formed.

In 2019, as soon as COVID-19 shut down the U.S. economy, I began saving Bitcoin. Bitcoin is ‘people’s money,’ not Central Bank’s money.

I trust god’s money and people’s money more than I trust fake money from Central Banks.

In 2021, as the U.S. government prints trillions in fake U.S. dollars, I will grow richer as my gold, silver, and cryptocurrency become more valuable.

There’s also talk from the Biden camp that the government must raise taxes on the “greedy rich” who “aren’t paying their fair share”—if there is any prayer of paying for the trillions in fake dollars.

Thomas Sowell has this to say about “greedy” people:

“I have never understood why it is ‘greed’ to want to keep the money you have earned . . . but not greed to want to take somebody else’s money.”

My next book is titled Capitalist Manifesto. I have written it because I am a capitalist. I fought communism in Vietnam as a Marine pilot. In that upcoming book, I post warnings from Marxists like Vladimir Lenin, a person committed to destroying free market capitalism, who said:

“The best way to destroy the capitalist system is to debauch the currency.”

And Karl Marx, who warned:

“There is only one way to kill capitalism—by taxes, taxes and more taxes.”

Real Numbers

In 1965 the dime my mom spent was worth 10 cents.
In April 2021 that same real dime is worth $1.94.

In 1965, the quarter my mom spent was worth 25 cents.
In April 2021, that same real quarter is worth $4.85.

In 1965, the half dollar my mom spent was worth 50 cents.
In April 2021, that same half dollar is worth $9.70.

In 1964, I stopped saving fake money.
Instead, I have been saving god’s money, gold and silver and, in 2019, people’s money—Bitcoin.

In 1997, The Rich Dad company was founded, dedicated to teaching people—educated or uneducated, rich or poor, young or old, regardless of race, religion, or gender—a subject not taught in school . . . the subject of money.

I’ll close with final words of wisdom from Thomas Sowell:

“Ours may become the first civilization destroyed not by our enemies but by the ignorance of our teachers and the dangerous nonsense they are teaching our children. In an age of artificial intelligence, they are creating artificial stupidity.”

And: “When you want to help people, you tell them the truth.”

The post Coin of the Realm: Gold, Silver . . . or Bitcoin? appeared first on JetsetMag.com.

There are many similarities between the Chairman of the Federal Reserve Bank and the movie The Wizard of Oz. One of the memorable lines from this film classic, adapted from a fantasy novel by L. Frank Baum, is, “I’m just a very bad wizard.” That line rings true today, more than ever, as the world economy teeters on the brink of collapse.

If former U.S. Fed Chairmen Alan Greenspan, Ben Bernanke, Janet Yellin, and today’s Chairman Jerome Powell said the words, “I’ve been a bad Fed Chairman,” thousands would stand up and cheer. Honesty! At last.

The problem is that without any real financial education in our school system, 99 percent of graduates—even college graduates—know little of this mysterious, shadowy, global institution known as the central banking system. That’s why I thought I would use the story of Dorothy and the Wizard of Oz, a story loved by millions, to explain money, central banks and the mysterious Wizard . . . aka the Chairman of the U.S. Federal Reserve Bank.

The children’s novel titled The Wonderful Wizard of Oz was published in 1900. The book is filled with symbolic allegory about U.S. economics and politics in the 1890s, the timeframe during which Baum wrote his book. Biographers report that he had been a political activist in the 1890s with a special interest in gold and silver. Baum died in 1919, and, to my knowledge, was never asked if his classic children’s book had any hidden political or monetary symbolism . . . so his classic novel is open to interpretation.

For many, Dorothy represents the financially naïve . . . a sheltered but gutsy girl from Kansas. The scarecrow represents the farmers in the West. The scarecrow, who had been told he had “no brains,” is thought to be a stereotype of an uneducated rural farmer, a prejudicial characterization shared (some say . . .) by many elites in the East, even today.

When deflation hits, the value of farmers’ farms go down, but their mortgages do not. The Wicked Witch of the East, it’s been said, represents the corrupt “Eastern financial and industrial interests,” especially Wall Street.

And so the story repeats. On February 15, 2006, Fed Chairman Bernanke, an academic elite from the East, said: “Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”

On September 15, 2008, Lehman Brothers filed for Chapter 11 bankruptcy protection, the largest bankruptcy filing in U.S. history. Real estate prices in the United States and around the world crashed, triggering the biggest real estate crash in world history.

Modern, naïve and poor scarecrows . . .

In 2008, many believed it was poor, “subprime buyers,” purchasing homes they could not afford, that caused the crash. In reality, it was financially-engineered derivatives, investment vehicles Warren Buffett has called “financial weapons of mass destruction.”

These weapons of financial mass destruction were manufactured under the watchful eye of the modern-day Wicked Witches of the East—the Fed, the Securities and Exchange Commission and Wall Street investment bankers like Bernie Madoff, non-executive head of the NASDQ stock exchange. Bernie served as NASDQ non-executive head until his arrest on December 11, 2008.

Bernie was arrested a for running a $64-billion Ponzi-scheme fraud, the largest financial fraud in U.S. history. Until the time of his arrest, Bernie’s firm was one of the most respected “market maker firms” on Wall Street. Bernie was a Wicked Witch of the East.

In The Wizard of Oz, Dorothy represents the naïve and financially uneducated American working class. In 2008, modern Dorothys—who have been characterized as naïve, uneducated Americans—were buying homes with Ninja (no income, no job) loans.

The tornado that carried Dorothy and her crew out of Kansas was much like the subprime crash of 2008 that cost millions of the financially-naive their homes and jobs. In 2008 alone, 861,664 American families lost their homes. In 2008, there were 3.1 million foreclosure filings. Foreclosure filings were up a record 81 percent between 2008 and 2009.

In 2008, Bernie Madoff took $64 billion from 4,800 high-income, high-net worth “Dorothys.”

One of Dorothy’s most famous lines is “Toto, I’ve a feeling we’re not in Kansas anymore.”

In 2020, an estimated one million Americans have not yet returned ‘home,’ 12 years after the 2008 subprime crash.

In 2017, Fed Chairman Janet Yellin stated: “Would I say there will never, ever be another financial crisis? You know probably that would be going too far, but I do think we’re much safer and I hope that it will not be in our lifetimes and I don’t believe it will be.”

In March of 2020, the biggest stock market crash in history occurred, dropping the U.S. economy into a depression in less than three weeks.

In May 2020, rioting broke out in over 140 U.S. cities and cities all over the world. None of us are in Kansas anymore. It is more than the murder of George Floyd. It is more than the shutdown of the world economy. We know something is wrong, very wrong. The economic crisis is more than race, money and poverty.

Personally, I think the problem is the Wizard. Tragically, most think the Fed Chairman is a “good Wizard.” Yet, in the end—in that classic movie every one of us has undoubtedly seen at least once—the Wizard says to Dorothy, “I’m just a very bad wizard.”

Since 1977, the Federal Reserve Bank has operated under a Congressional mandate to provide:

1. Maximum employment
2. Stable prices
3. Moderate long-term interest rates

In June of 2020:

1. Unemployment is over 30 percent
2. Prices are crashing
3. Interest rates are near zero
4. Debt is increasing–GDP is decreasing

Does that make sense to financially-naive Dorothy?

But wait . . . there’s more . . .

We are fast approaching a world where the richest one percent of the world’s population will have amassed over 50 percent of the planet’s wealth. The bottom 80 percent will be left with 5.5 percent of the wealth.

In May 2020, the Fed printed about $3 trillion. Most of it went to Wall Street, making people like Jeff Bezos and Mark Zuckerberg even richer.

Think about this: A trillion is 12 keystrokes on a computer. It takes less than a minute to create a trillion dollars. Yet, if you spent $1 every second, it would take 31,710 years to spend a trillion dollars. How long will it take the American taxpayer to pay back that huge sum?

This is why I own gold, silver and Bitcoin. They are outside the control of the Wizard—and the Wicked Witches of the East.

The Wizard has been artificially propping up the government and Wall Street, loaning trillions of dollars, at virtually no interest, to banks and public corporations.

The rich receive trillions in low-interest debt, in many cases, close to zero percent. What does Dorothy get? When the Dorothys of the world need money, they borrow at staggering interest rates, some that can climb to over 30 percent.

Even worse for financially-naïve Dorothys, they work for money and save money while the Wizard prints trillions in fake dollars, devaluing the purchasing power of Dorothy’s paycheck and lowering interest rates on Dorothy’s savings.

Corporate oligarchs (CEOs) receive money, indirectly, from the Wizard via QE, Quantitative Easing, a money-printing scheme used in 1930 during the Great Depression.

Rather than use this “free money” to improve their businesses, the CEOs use the money to ‘buy back shares of their businesses, inflating their companies’ share prices for the few who are in the stock market.

This “free money” from the Wizard weakens the CEOs’ businesses, although the share price of their company stock goes up. Dorothy’s job security is threatened when a CEO uses debt to buy back shares, because the credit rating of the company she works for goes from AAA to “junk.” This is why Neiman Marcus, J. Crew, JCPenney, Hertz, Gold’s Gym, True Religion and others have recently filed for bankruptcy.

Why do corporate CEOs do this? To receive income at lower tax rates. And how do they do that? They use the debt from their companies to buy company shares. Rather than make a company stronger, borrowing corporate debt drives the company shares higher . . . but the company is weaker, due to debt. Many AAA-rated corporations such as AT&T, GE and Ford have had their credit ratings downgraded to BBB, also known as “junk bonds.”

This begs another question: Why do they sell their stock options? The CEOs and executives sell their stock options—their bonus for doing a good job—at inflated prices. And these ‘sales’ are taxed at “capital gains” tax rates, which are lower than the tax rates their employees pay via their paychecks. Dorothys pay taxes at “ordinary income” tax rates, while executives pay “capital gains” tax rates, which are lower than “ordinary income” tax rates. Financially-naïve Dorothy has no idea what the Wizard and Wicked Witches of the East are doing.

But wait . . . there’s still more . . .

Dorothy is happy to have a 401(k) because her money and her company’s matching contribution goes into her 401(k) tax-free. Tax-deferred is a more accurate statement. The problem is that when she retires, the income coming out of her 401(k) is taxed at “ordinary income” tax rates, the highest tax rate. For the Dorothys of the world, the only way a 401(k) makes sense is if they plan on being poorer when they retire. If they plan on being rich, the income from their 401(k)s will be taxed at the highest tax rate.

The Tin Man in The Wizard of Oz, it’s been said, represents industrial workers who are tired of being treated like robots. In 2020, real robots are replacing real human beings. Like the Tin Man, they should have an oil can handy for squeaky joints . . . due to unemployment.

In 2020, college graduates are caught in the vice of student loan debt, low paying jobs and rising national debt. These issues are fueling revolt and unrest. So are underemployed artists, journalists, lawyers, cooks, waiters, small business owners and teachers who are joining a growing wave of vocal protesters. And while peaceful assembly is a First Amendment right, looting and violence are criminal acts. Ironically, while Dorothy protests peacefully, Wall Street’s Wicked Witches of the East are looting the pensions of teachers, firefighters and police officers via hedge funds and IRAs via the fees in mutual funds.

Many are angry at capitalism. But capitalism is not the problem. It is the corruption of capitalism, aka crony capitalism, led by the Wizards (corrupt politicians), the Wicked Witches of the East and a dysfunctional education system that steals from students via student loans—and teaches Dorothy nothing about money.

The real story . . .

There has been quite a bit written about the symbolism in The Wizard of Oz and here are some relevant highlights:

The Emerald City represents the place that produces “greenbacks,” which were first produced for the Civil War between 1861 and 1865.

In 1913, the Federal Reserve Bank was created. That same year, the 16th Amendment was passed and the IRS—the tax department—was created. Debt and taxes became fake (fiat, government) money.

Today, the Emerald City represents the Eccles Building which is where the U.S. Federal Reserve Bank is housed in Washington, DC.

In The Wizard of Oz, the Yellow Brick Road is the gold standard. In the original book, Dorothy’s slippers were made of silver, not rubies. And while there is no mention of gold or silver in the title of The Wizard of Oz, many believe the “Oz” is the abbreviation for “ounce,” or a gold and silver oz.

In 1971, the United States went off the Yellow Brick Road. That year, President Richard Nixon took the U.S. dollar off the gold standard, and the United States could print as much money as it wanted to pay its bills. That is why our nation’s debt exploded from millions in 1971 to trillions in 2020.

It shouldn’t be surprising that when the Wizard and the Emerald City prints money, the rich get richer and the poor and middle class get poorer.

On May 29, 2020, defending trillions of dollars of money printing, Fed Chairman Powell stated: “Money printing does not create income inequality.”

Is the Wizard lying . . . or telling the truth? In my opinion, he is telling the truth. The truth is, most of the money the Fed prints goes to Wall Street and that money is transferred to the rich, via higher stock prices, not income. The corporate elite and the Wicked Witches of the East get richer. Dorothy grows poorer.

Cowardly Politicians

It’s been suggested that the Cowardly Lion in The Wizard of Oz represents the cowardly politicians, those who roar loudly and appear fierce, but are essentially cowards. Cowardly politicians are why the issues related to the economy, education and the environment grow worse, but nothing changes. They are all on the Wizard’s payroll.

In 1933, the Glass-Steagall Act was passed. This act was passed to restore confidence in U.S. banks and helped end the Great Depression. This 1933 act separated the Dorothy banks (commercial mom and pop banks) from Wicked Witches’ East Coast Banks (investment banks).

Unfortunately, a number of politicians (aka cowardly lions) such as Bill Clinton, Larry Summers, Robert Rubin and Phil Gramm repealed the 1933 Glass-Steagall Act, an act designed to protect Dorothy from the Wicked Witches of the East.

Three storms brewing . . .

In 1900, the story of the Wizard starts with a “typhoon” or “tornado” that twists Dorothy out of Kansas. In 1999, with the repeal of the Glass-Steagall Act, the Wizard, the Wicked Witches of the East and cowardly politicians in Washington turned our banks and Wall Street into giant casinos. Dorothy’s money was now co-mingled with Wall Street money, and a brand-new casino was opened. The Wizard, the Wicked Witches of the East and the Cowardly Lions’ giant casinos caused the typhoons that hit—the 2000 dotcom crash, the 2008 subprime crash and, in 2020, the corona crash.

In 2020, tornados are called protests, rioting, looting, unemployment, murders and bankruptcies. Trillions of dollars in fake money are being handed out to Dorothy, and more money is being distributed to keep Wall Street bankers happy.

Many believe the Wizard from the Emerald City—cowardly politicians, including politicians who in 1964 ended the silver standard, President Nixon who in 1971 ended the gold standard and in 1972 opened the door to China, President Carter who authorized the 401k in 1978 and Clinton who repealed the Glass-Steagall Act in 1999—encouraged excessive risk taking in stock markets.

The stage was set for the “tornados” of 2000, 2008 and 2020.

When tornados strike . . .

The saying inside the Emerald City—the Fed, inside the nation’s capital, and the den of cowardly lions aka The White House and Congress—and inside the home of The Wicked Witches of the East (aka Wall Street) is: “Winnings are privatized, and losses are socialized.” That means: When elites win, they keep their winnings. When tornados strike, and elites lose, the Wizard, cowardly lions and Wicked Witches bail out the elites. And once again, the Dorothys, the mom and pops and the taxpayers lose.”

A few final words:

In 1900, the Wizard’s final words to Dorothy were:

“I’m just a very bad wizard.”

In 2020 . . . the words are the same.

The post “I’m Just a Very Bad Wizard”: A Fantasy Story Comes to Life appeared first on JetsetMag.com.

Smart. It’s the word of the day, it seems. As we find ourselves in the throes of a pandemic the world knows as COVID-19, people are admonished to “stay safe.” And, in my opinion, that starts with being smart—in the decisions and choices we make. There is always opportunity in adversity and there are many who see the onslaught of this virus as a wake-up call. A reminder that being smart can be your edge, your advantage.

Our brain is our great asset. It can also be our greatest liability. How will you use this wake-up call? As a chance to get smarter and invest in yourself . . . or as just another obstacle in life to be navigated?

Here’s a story:

At a dinner party, not long ago, a young woman asked me, “Is real estate a good investment?”

“I don’t know,” I replied.

Puzzled, because she knew I was a real estate investor, she asked, “But don’t you invest in real estate?”

“I do,” I replied. “I have many real estate investments, mostly apartment complexes, commercial properties and hotels.”

“Do you make money?” she asked.

“I do quite well.”

“So, why did you say that you don’t know if real estate is a good investment?

Smiling patiently, I replied, “A better question is, ‘Are you a good real estate investor?’”

Repeating my question, she asked, “Am I a good real estate investor?”

I nodded and continued. “If you are a bad real estate investor,” I said, “all real estate is a bad investment.”

“But I have a college degree,” she said.

“Congratulations,” I replied. “But what did you learn about money in college, much less about real estate?”

“But I have a Master’s degree. I was top in my graduating class.”

“So, what?” I asked. “Did you study finance, accounting, law or property management?”

She shook her head and asked, “So, it is the investor that is good or bad, not real estate?”

I nodded and said, “Investing in real estate is not the same as investing in paper assets such as stocks, bonds, mutual funds or ETFs. Investing in real estate is extremely risky. Paper assets are probably best for college graduates like you.”

“So, how do I become a good real estate investor?”

“I strongly encourage you to invest in yourself, in your financial education—even if you have a college degree. In 1973, when I was 26 years old, I invested in real estate seminars before I began investing in real estate,” I told her.

“But I thought your rich dad taught you to invest in real estate?”

“I did ask him, but he refused. He refused because there was too much to learn and he did not have the time to teach me. He gave me the same advice I’m giving you. He said, ‘Stocks and bonds are best for the uneducated investor. Real estate requires much more education.’”

“So, where did you get your real estate education?”

“One night while watching television, an infomercial came on advertising ‘Learn how to invest in real estate with nothing down.’ Since I had nothing to put down, I called the number on the screen and signed up for the free seminar they were offering. The free seminar promoted a three-day workshop that cost $385. That was a lot of money in 1973, and nearly half my paycheck.”

“Did you learn everything you needed to learn about investing in real estate?” asked the young woman.

“Heavens no,” I replied. I added, “As the instructor told us: ‘Your education begins when you leave the seminar.’”

“So, he didn’t teach you anything?”

Laughing, I replied, “Typical response from a college graduate! He taught our class a lot in three days. He taught us what was important to learn, after the three-day seminar was over. The class learned what we needed to learn in the real world if we wanted to be a real, real estate investor . . . in the real world.”

The young woman said nothing, absorbing what I was saying, so I continued on. “My poor dad was much like you. He was very smart in school, a PhD in education. His problem was, he believed he learned everything he needed to learn in school. He knew all the answers as long as he stayed in school. He was smart as long as he was in school.” I took a breath before adding: “Unfortunately, when he was in his fifties, he lost his job, his paycheck and his pension. It was only then—on the streets, without a job, in the real world—that he found out how much he did not know. Even with a PhD, he found out how uneducated he was in the real world.”

“What about your rich dad?” asked the young woman. “Was he an educated man?”

“He was not educated, in terms of an academic education, like my poor dad. Rich dad’s father passed away when he was 13 years old, so he had to drop out of school. He gained his real-life financial education by running the family business.”

“So, your highly educated poor dad did not have a financial education and your rich dad did not have an academic education. Is that what you’re saying?”

“You got it,” I said. “When the real estate instructor told his class, ‘Your real education begins when you leave the class,’ I understood exactly what he was saying. Unfortunately, a number of students did not. Like many academics, they wanted to memorize ‘right’ answers. Too many educated people think that memorizing the right answers means you are educated . . . and they leave school as the uneducated educated. Rich dad called them ‘stupid.’”

“And what did you get from the three-day seminar?”

“The instructor, a real, real estate investor, taught the class what we needed to learn in the real world. We had to find our own answers, in the real world, through real life experiences,” I said.

“Tell me one thing he had you learn once you left the seminar.”

“As I said, he told us our education began once we left class. Our first assignment was to look at 100 properties in 90 days and write a one-page summary of each property, detailing what was good about the property and what was bad. After 90 days, I purchased my first property for nothing down. That seminar, looking at 100 properties in 90 days—and realizing that most of them were bad investments—changed my life.”

“How many students finished the assignment?”

“Only ten percent of us,” I replied, “or approximately three of the 30 students in our class.”

“Is that why 10 percent of the population are rich, and 90 percent are not?”

I nodded. She was beginning to understand what I was saying.

“And is that what most academics do?” asked the young woman. “They look for answers in the classroom, not in the real world?”

“Most academics are like my poor dad, people who have been trained to be told what to do, to memorize ‘right answers,’ and to not make mistakes, because mistakes mean you’re stupid.” I added: “So, most educated people save money, get out of debt and invest for the long-term in a well-diversified portfolio of stocks, bonds, mutual funds and ETFs.”

“Is that wrong?”

“No,” I said, and paused for that to sink in. “That advice is only wrong if you want to learn to be a professional investor. I wanted to be like my rich dad, so following the 90-day plan, making a lot of mistakes and learning from my mistakes made sense. It did not make sense to those who wanted to be told what to do . . . like my poor dad.”

“What about investing with people like Warren Buffett?”

“Again, if you do not want to learn to be a professional investor, investing with Warren Buffett makes sense. It did not make sense to me.”

“Are people who invest with Buffett uneducated investors?”

“Most of Buffett’s investors are rich because they invested with him, and most are highly academically-educated people,” I replied. “Yet, if Buffett lost all their money, which I doubt he would, they would be in serious trouble. If Buffett lost their money, they would be like my poor dad, highly educated people but uneducated investors.”

The young woman left, pondering the question of whether or not she wanted to invest in becoming a real, real estate investor or invest with Warren Buffett in stocks, bonds and mutual funds.

Why Investing in Financial Education Is Smart

Almost every week, someone will approach me and say, “Because of your books, I am getting into real estate.”

And, whenever I hear those words, I smile, thank them for saying “hello” and for reading my books. I also warn them, “Be careful. Invest in your financial education before investing in real estate.”

Unfortunately, rarely do I have the time to explain why I caution them and say, “Be careful.” The following are a few reasons why I encourage everyone to invest—first—in their real estate education before investing in real estate.

Why Real Estate Is the Best Investment

Real Estate is the best investment in the world for the following reasons:

• Real estate is about investing with debt, or OPM: Other People’s Money.
• It can deliver cash flow income for years.
• Investors may pay little if anything in taxes.
• There are often opportunities to buy more when markets crash . . . using OPM.

It’s worth noting that when the subprime real estate bubble crashed in 2008, over 6.5 million Americans lost their homes. Financially educated investors, working for private equity companies like BlackRock, went in and began buying most of those 6.5 million homes in foreclosure.

The good news is that the markets recovered and most of those 6.5 million homes have gone up in price, and most are more expensive today.

The bad news is: most of those 6.5 million people who lost their homes are poorer today. Rather than seeing their net worth go up with their home’s value, most remain renters, because their credit scores were damaged when they lost their homes.

Why Real Estate Is the Worst Investment

Real Estate is the worst investment in the world for the following reasons:

1. Real estate is illiquid. That means, if you make a mistake, real estate can be very difficult to sell or get rid of. If you make a mistake in stocks, bonds, mutual funds or ETFs, you can “liquidate,” which means sell quickly and cut loses, almost instantly.

2. Real estate is a business. Real estate is management intensive. Real estate requires real business skills and a business mind. Many real estate dreams turn into real estate nightmares, not because real estate is bad, but because the investor’s business skills are bad. If you do not have the mindset and business skills of an entrepreneur or are not willing to learn to be an entrepreneur, do not invest in real estate.

3. Real estate is not for “do-it -yourselfers.” Stock, bond and mutual fund investors can get away with being “do-it-yourselfers.”

Real estate investing is about rules, regulations, laws, records, repairs, profits, losses and management. Real estate is about debt. And debt is like a loaded gun: it can make you very rich or kill you.

Because real estate is a business that requires debt financing and professional management, real estate investing is a team sport, played by a team of professionals. Professional real estate investors must have a bookkeeper, lawyer, accountant and insurance agent on their team.

4. Real estate is about maintenance and repairs. Real estate investors must have a handyman on call 24 hours a day, 7 days a week . . . unless the investor enjoys fixing toilets at midnight.

What about Flipping Real Estate?

Another question I’m frequently asked is “What about flipping real estate? Then you don’t have to manage the property.”

If I have the time, I explain by telling a story. “During the decade-long ‘Flipper Fest,’ the years between 1998 to 2008, my wife Kim and I explained to countless people who were excited about making fortunes flipping real estate that “We do not flip real estate. We are real estate investors.”

I remember walking through the Phoenix airport when a woman recognized me saying, “I have a 3-bedroom / 2-bath house I just bought for $86,000. If you give me $5,000 cash, I will let you have it.”

“And what would I do with it?” I asked.

Looking at me like I had holes in my head, she indignantly said: “You’d flip it.” When
I didn’t reply she added, “You can probably make $20,000 in a few weeks.”

“I don’t flip real estate,” I replied politely.

She stared at me, shaking her head. “And I thought you were a big-time real estate investor,” she said. “You’re just like everyone else . . . a big fat phony.” And with that she walked away.

Rich dad taught his son and me to invest in real estate for cash flow. When a person flips a house, they are subject to capital gains taxes which can be much higher than taxes on cash flow. Short-term capital gains are taxed like ordinary income, at the 37 percent top bracket.

Capital gains investors, aka “flippers,” are “buy low, sell high” investors. Cash flow investors are “buy low, keep collecting money forever, and pay-as-little-in-taxes-as-possible” investors.

With a professional financial education, cash flow investors may pay zero percent in taxes.

When investing for cash flow, an educated real estate investor can invest for both capital gains and cash flow and still pay little to nothing in taxes, legally. On top of that, an educated cash flow investor also knows how to flip a property and still not pay capital gains (or “flipper”) taxes, legally.

Not surprisingly, uneducated investors most always pay the highest taxes while educated, professional investors always pay the lowest taxes.

Since leaving the three-day seminar, I have continued to attend investment seminars, and have taught investment seminars. Ken McElroy, a Rich Dad Advisor and partner with Kim and me in real estate investments, has acquired numerous apartment complexes across the southwestern United States totaling over 7,000 rental units and costing over a half-billion dollars, using OPM, debt financing . . . and earning us millions a year in income, with most of that income tax free.

When real estate markets crash, we go back into the market, picking up more investment properties—often from real estate flippers.

That $385, three-day seminar taught by a real, real estate investor was the foundation of my real estate education. His lesson: Real life education begins outside the classroom.

I’ll close by posing a question for you: What kind of education do you have?

Books by Real Estate Investing expert Ken McElroy

• The ABCs of Real Estate Investing
• The ABCs of Property Management
• The Advanced Guide to Real Estate Investing
• New for Fall 2020: The ABCs of Buying Rental Property

At under $20 a book, your real estate education can start for less than the $385 seminar I took years ago—and for much less than a college education.

The post The Educated Investor: How You Get Your Real Estate Knowledge Matters appeared first on JetsetMag.com.

In October of 2019, I was in Japan for the Rugby World Cup and to deliver a number of talks to Japanese entrepreneurs. The Rugby World Cup was a very exciting event — well done, well organized, and fun. My three talks to the Japanese entrepreneurs were less well received.

I am fourth-generation Japanese-American, which is my excuse for not speaking the Japanese language. While I have an understanding of the ancient and beautiful Japanese culture, I must admit that I find the culture a bit confining. In other words, I am grateful my great-grandparents left Japan in the 1890s. I would not do well as a Japanese citizen. I truly am Japanese . . . American.

Although jetlagged on the first evening in Tokyo, my team of five speakers and myself were whisked to an extremely expensive Japanese restaurant. One of the first questions one of my speaker team members asked our Japanese hosts was “How is the Japanese economy?” The question was posed by my stock market expert, John MacGregor, author of The Top 10 Reasons Why the Rich Go Broke. Their reply: “Our economy is great. The Japanese stock market, the Nikkei, is up.”

As I stated in the opening paragraph of this article, the three talks we presented in Japan were not well received.

Our presentations in Japan addressed the two different types of modern depressions — inflationary depressions and deflationary depressions.

Inflationary Depressions

Today, the country of Zimbabwe is in a hyper-inflationary depression. Zimbabwe has been in a hyper-inflationary depression for three decades. A hyper-inflation is caused when a country’s currency fails and no one wants the money, no matter how much the country prints.

Deflationary Depression

Japan has been in a deflationary depression — also for three decades. No matter how much money the Bank of Japan prints, the country’s economy keeps deflating. Japan will survive as long as the people of Japan and the banks of the world have faith in the government of Japan and the yen.

We were asked: “What are the differences between the depressions in Zimbabwe and Japan?”

The answer? The money.

Zimbabwe’s depression was caused by the country borrowing money in U.S. dollars. In other words, Zimbabwe’s debt is in U.S. dollars. Japan’s depression is internally financed, in Japanese yen.

The U.S. debt is a bit different. The U.S. dollar is the reserve currency of the world, so the U.S. dollar is the strongest currency in the world. It is said that the U.S. dollar is the last horse in line at the glue factory. That means the United States may be the last country to slide into the next depression.

Rich Countries

In September of 2019, a few days before flying to Japan, I was in Zimbabwe for three weeks. The difference between the people of Zimbabwe and the people of Japan is that my friends in Zimbabwe know they are in a depression and have been for over 30 years. The good news is this awareness makes them stronger, more resilient and better prepared for the United States and Europe to slide into depression. The Japanese are not.

The Japanese entrepreneurs we spoke to remain in La-La-Land. Most seemed complacent, comfortable with “the good life” and unprepared for the global depression that’s on the way.

Most Americans live in that same La-La-Land.

The irony is that all three countries — Zimbabwe, Japan, and the United States — are rich countries. The seeds of financial destruction are found in their governments, educational systems, banks and Wall Street. As some of you may know, over these same three decades, I have been asking the same questions: “What does school teach us about money?” and to the answer (which is “Little to nothing . . .”), I ask, “Why not?”

Few people realize that the problem is not in our stock market. The global problem is in our bond markets, aka debt. The only reason why the Japanese stock market, the Nikkei, and the U.S. stock market, the Dow, are at all-time highs is because of QE, quantitative easing, printing money, using credit/debt to purchase stocks, and ZIRP, Zero-Interest Rate Policy. This creates the illusion of prosperity. Simply put, the global economy is a house of cards, waiting for the big bad wolf to huff and puff and blow the house down.

Three Little Pigs

We have all heard the fairytale of the Three Little Pigs. Today, unfortunately, the story of the three little pigs is not a fairytale. Today, many Americans and many Japanese are plump little pigs, living, for the most part, in financial houses made of straw.

Both Americans and Japanese drink the little pigs’ favorite drink, Kool-Aid. The soothing Kool-Aid of the poor and middle class is:

“Go to school and learn nothing about money, get a job, although A.I. (artificial intelligence) and G-5 will make job security obsolete, pay taxes, although the rich pay next to nothing in taxes, save money, even though interest rates are below zero and governments are printing money, buy a house, although the housing market is in a bubble, get out of debt, unaware that all government fiat money is debt, and invest for the long term in a well-diversified portfolio of stocks, bonds, mutual funds and ETFs, when today the financial markets are run by robots, where long-term is measured in milliseconds, and corporate CEOs are loading the corporations they run and mom and pop invest in, turning once AAA corporations, such as GE, GM, ATT, and Ford into BBB, pre-junk corporations.”

Baby-Boomer Crisis

The over-priced, subprime corporations of America and Japan are just the tip of the financial iceberg. Today, Japanese and American baby boomers are cruising on board their bucket-list cruise, on board the S.S. Titanic as the financial iceberg awaits its date with destiny.

In 2008, the world economy nearly collapsed when subprime mortgages, provided by the Fed and Wall Street, nearly collapsed the world. Rather than fix the problem, the Federal Reserve Bank bailed out Wall Street with subprime money.

Which begs the question: “Can the Fed, with interest rates nearing zero, bail out the world economy again?”

I would not bet my life on it. The crisis of 2008 was not solved. And the financial iceberg has only gotten bigger.

Debt to GDP

In 2019, Japan’s Debt to GDP ratio was 240 percent. America’s Debt to GDP is 115 percent.

According to economists Carmen Reinhart and Kenneth Rogoff, once an economy passes 90 percent Debt to GDP, the point of no return has been passed. Printing more money via QE and lowering interest rates to zero, ZIRP, will not solve a country’s financial problems. Once past 90 percent, the economy is going over the edge and a depression will follow.

Students in Crisis

In 2009, in another desperate attempt to save the U.S. economy, the Obama Administration transferred the administration of student loans from the banks and turned student loans over to the U.S. Treasury.

Today, student loan debt is the number one asset of the U.S. government, estimated to be over $1.5 trillion.

Rise of Socialism

Today, socialism and communism are hot topics on the YouTube circuit. Inquiring minds want to know if socialism and communism are the answer to our American financial crisis.

One of the rising stars on the speaking circuit and YouTube circuit is Richard Wolff, a graduate of Yale, Harvard, and Stanford, and a popular economist on college campuses. I suggest people watch his YouTube presentations or go see him in person. He makes a lot of sense for the rise of socialism and communism. I agree with him, in theory, on most of his points. He makes a lot of sense . . . if you live in La-La Land.

Hitler and Mussolini, also socialists, made a lot of sense, too.

So do Democratic candidates Bernie Sanders, Elizabeth Warren, and AOC, Alexandria Ocasio-Cortez. When a person is in financial pain, the miracle cures promised by socialism and communism sound wonderful.

Economist, scholar and Marxist Richard Wolff’s vision of a socialist and communist America also sounds magical, wonderful and worth a try. Who would not want free education, free housing, loan forgiveness and a demand that the greedy rich pay for the less fortunate? Isn’t that what Robin Hood fought for? He, too, asked: “Why not take from the rich and give to the poor?”

Richard Wolff is anti-capitalist.

His vision of a socialist, cooperative, kinder future is beautiful . . . even desirable. The problem is it is not capitalism he criticizes. It is the corruption of capitalism. Neither socialism nor communism will cure corruption. Greed, jealousy, crime, incompetence, laziness and corruption are human conditions . . . conditions without boundaries, conditions not confined by political or economic philosophies.

If greed, incompetence, laziness, and corruption were solved with a switch to socialism and communism, I would be socialist/communist today.

Questions for Today

Until then, I ask myself: “What type of depression is America entering: inflationary or deflationary?”

The next question I ask myself is: “Who would I rather be . . . a resilient and proactive Zimbabwean or a happy and complacent Japanese person?”

I ask you the same question.

The post The Next Depression: What Type Will It Be? appeared first on JetsetMag.com.

I remember the first time I was on Fox News, in an interview with Neil Cavuto, and was asked about what I was investing in. Without a moment’s hesitation I stated, “I’m investing in silver.”

The more important question is: why silver?

I began investing in silver in 1964, when I was 17 years old and a junior in high school. My investing career began when rich dad’s son and I noticed our “silver” coins, U.S. dimes, quarters, and half dollars, were no longer “silver.” After 1964, “silver” coins had a copper tinge around the edge. Today, I realize our silver coins had been debased, which means a base metal, such as copper, was added to a precious metal coin, in this case, silver coins. The copper tinge was a dead giveaway that something was wrong. We the people were being cheated, via our money. Our own government was ripping us off, via the money we worked for.

Today, I realize that rich dad’s son and I were following Gresham’s Law, a monetary principle which states, in essence, that “when bad money enters the system, good money goes into hiding.” In 1964, we did not know about Gresham’s Law. We just, intuitively, sensed an “opportunity.”

Soon, we got into the habit of taking our paper U.S. dollars to our local bank and trading paper dollars for rolls of dimes, quarters and silver dollars. While our classmates were doing their homework, we were active investors, searching for real silver coins, separating them from fake silver coins. We separated the real silver coins, put them in large cloth bank bags, and rewrapped the fake silver coins. The next day, we returned to the bank, trading in our fake silver coins for new rolls of dimes, quarters and silver dollars so we could repeat the process . . . in search of real silver coins.

It was not long before we had several large bank bags, made of heavy canvas, filled with real silver coins. In 1965, we both graduated from high school. Rich dad’s son went to the University of Hawaii and I went on to school in New York.

About 10 years later, I was home in Hawaii and asked my mom, “What happened to my bags of silver?”

“You mean those bags of dirty old money?” she asked.

“You mean my real silver coins,” I replied, correcting her.

Without missing a beat, my mom replied, “I spent them. I needed the money.”

I do not recall the spot value — “spot” means the international price of silver — on that day. I estimate the silver coins were worth 20 percent more, as “real” silver, than the “fake” money — the U.S. dimes, quarters, and half dollars that had been polluted with copper.

My mom could not understand why I was upset. “Why don’t you just go out and find more silver coins?” she asked.

“Because that ‘window’ has closed,” I replied.

“Window? What window?” she asked.

“The window of opportunity. The real silver coins have been picked over. There are only fake coins in circulation today,” I explained.

In the 1980s, the Hunt Brothers out of Texas cornered the silver market and the spot price of silver soared to nearly $50 an ounce . . . and then crashed.

The Window

Today, I am often asked, “Do you invest in Bitcoin?” My reply is, “No, I wish I did, but I missed the window.”

A friend of mine did not miss the Bitcoin window. He invested $100,000 with Bitcoin at under $100 a coin. Needless to say, he did OK. By the time I found out about cyber currency, Bitcoin was about $9,000. The window was still open, but it was too high for me.

Windows Open . . . and Close

One reason why so many people struggle financially is because they fail to see “windows” opening and closing. If they do invest, they listen to their financial planner who advises them to invest for the long term, in a well-diversified portfolio of stocks, bonds, mutual funds and ETFs.

Personally, I do not invest for the long term. I invest when windows open.

I invested in real estate in 2008, after the subprime real estate crash. It was a time when prices came down, as did interest rates. The years between 2008 and 2015 provided one of the biggest windows of opportunity for investors in real estate, gold, silver, stocks and bonds in the history of the world. Ninety percent of the U.S. population missed that window of opportunity because the crash terrified them.

The Case for Silver

Today, as I write, in September of 2019, the date is very important. Today the silver window is wide open. As you know, windows open and windows close. That is why I am a guest on news and business programs stating, “I am investing in silver.” I believe the silver window is open, and may be the biggest bargain of 2019.

When I invest, I look 10 years into the future. Today, I am looking into my crystal ball to the year 2030. What do I see? Here are some snapshots . . .

#1: Has the Problem Been Fixed?

The 2008 disaster has not been fixed. Rather than fix the problem, our leaders just “printed” more and more fake money. Rather than fix the problem, our leaders bailed out the bank that caused the problem and paid the bankers billions in bonuses, further stealing the future from you and me.

In 10 years, in 2030, how big will this problem — this problem that wasn’t fixed in 2008 — be?  What will real silver be worth if governments keep printing fake money?

#2: Boomers without Pensions

Due to negative interest rates in the bond market, pension plans have not performed. Many government and private pensions are underfunded . . . leaving millions of Baby Boomers without pensions.

Will the government bail out millions of Baby Boomers the way they bailed out the bankers? And if the government bails out these Baby Boomers, how many trillions in fake money will the government have to print?

In 10 years, will the Baby Boomers know the difference between real money and fake money?

#3: Subprime Countries

The world is going bankrupt. The national debt of America will soon be $23 trillion. Many countries — including China, Japan, and Europe — are in worse shape. How will this debt be paid? Will it be with more fake money?

In 10 years, will governments continue to borrow money to pay their bills? Or will governments just print “helicopter money” and drop the free money from the sky?

#4: Highly Educated Debtors

Student loan debt is now the number one asset of the U.S. Treasury — an “asset” worth over $1.6 trillion. The student loan debt crisis took off after President Barack Obama took the business of loaning money to students and turned it over to the U.S. Treasury.

In 10 years, how many college graduates will still be deep in debt?

#5: Negative Interest Rates

As I write, there is over $17 trillion earning below zero interest rates. People are now loaning money to banks and expecting to lose money, receiving less money in return. This is nuts.

In 10 years, what will happen to the trillions in debt if interest rates climb to 10 percent and higher?

As compelling as they are, these are not the real reasons I am investing in silver at this time.  The real reason is a simple one: the silver window is open. To me, this is 1964 again. Look at the following statements and see if you can see the window.

How long will silver remain a bargain? Only time will tell. The important lesson for today: the silver window is open. Now.

If silver is around $20 an ounce in 2020, what do you think the price of silver will be in 2030?

Important Note: While I do invest in silver, I am not suggesting that you should invest in silver. In the interest of full disclosure, I am not an investment advisor, nor do I sell silver.

The post Timing Is Everything: Why I Invest in Silver appeared first on JetsetMag.com.

The stock market is reaching all-time highs and so is real estate in many parts of the country. The question is: Is this a good time to be investing? Are fools rushing in . . . or are smart investors getting out?

The biggest financial crisis in history is brewing, and, in my opinion, few people know about it. It is a crisis in our pension funds. There are two reasons why asset prices are high. One is because pension funds are desperately trying to make up for lost time. The other is that the Federal Reserve Bank keeps interest rates low and prints money when necessary. These factors blow both the stock market and the real estate market into massive bubbles. As I write this article, the stock market is hitting record highs — nearly twice the highs achieved before the 2008 crash.

In the world of investing, there are two types of investors — pros and amateurs. The problem is that the vast number of amateurs have no idea who the pros are . . . and who are the con men and women.

Rubber-Chicken Dinners

A friend of mine, a long-time professional financial advisor — a CFP, or Certified Financial Planner, which is levels in education above the average financial planner — often goes to what he calls “rubber-chicken” dinners. His name is John MacGregor. He was telling me about a dinner he went to where he choked down the rubber chicken and waited for the presenter to address the group. Just after dessert, a trim and handsome man (tan, well-dressed . . . and about 35 years old) took the stage. The speaker “wowed” the audience with stories and humor, as well as a few facts, charts and numbers. As soon as the speaker was finished, most of the audience rushed to the tables to sign up for an interview and portfolio evaluation. My friend John joined the crowd . . . and went up to a table to make an appointment for a personal portfolio evaluation.

On the day of the appointment, John met with an attractive young woman who went over the company’s investment program. It was not long before the young woman realized John’s questions about the financial program she was proposing were more sophisticated than those of the average individuals she typically worked with. Exasperated, John asked if he could meet personally with the well-dressed and engaging speaker he had listened to at the rubber-chicken dinner.

John kept insisting and she kept avoiding John’s questions. In response to John’s increasing exasperation, the young woman finally admitted that “the speaker is not a financial advisor. He is a professional actor hired from a Hollywood talent agency. You may have seen him in the pizza commercial that aired during the Super Bowl.”

Stupid FAQ

After writing Rich Dad Poor Dad, which over the past two decades has held its own as an international bestseller and was on The New York Times bestseller list for nearly seven years, many people thought I dispensed or sold investment advice. Untrue. I am an entrepreneur, educator and professional investor, investing for my own portfolio. I am not a financial planner like my friend John. Yet, no matter where I go, people come up to me and ask, “I have $100,000. What should I do with my money?”

My response is always the same. “If you do not know what to do with your money, don’t announce to the world, ‘I am an idiot with money.’ If you don’t know what to do with your money, there are literally billions of people who do. Their financial advice is, ‘Give me your money. I know what to do with your money. I’ll spend it for you.’”

That is what people do at rubber-chicken dinners. They line up and hand over their money to total strangers, sales people and (sometimes) Hollywood actors. The problem with the financial planning industry is that most financial planners are salespeople, not rich people. The same is true for real estate brokers, stock brokers and insurance brokers. My rich dad often said, “The reason they are called “brokers” is because they are broker than you.”

Warren Buffett says, “Never ask an insurance broker if you need more insurance. If you ask an insurance broker that question, the answer is always ‘Yes. You need more insurance.’” Warren Buffett should know. GEICO, one of the largest insurance companies in America, is a wholly-owned subsidiary of Buffett’s Berkshire Hathaway.

What Should You Do?

I am a financial educator, an entrepreneur in financial education. I always advise, “Invest in financial investment courses before investing your hard-earned money.” That is the same advice my rich dad gave me in 1973, the year I returned from Vietnam. My rich dad said, “I am an investor. I am not a teacher. Find a teacher, take courses, and then talk to me about investing.”

Late one night, in 1973, I was channel surfing and saw an infomercial about investing in real estate. The program offered a free seminar, which I attended and then signed up for the three-day course. The three-day course cost me $385 — a fortune in 1973 — but that investment has made me a multimillionaire many times over. Today, I continue to attend two to three investment seminars each year. I take seminars on stocks, bonds, real estate, oil and precious metals. So, do most of my friends. Birds of a feather, as they say, do flock together . . . at investment seminars.

The Good News and the Bad News

The good news is that the world economy is in a giant bubble, the biggest bubble in world history. The bad news is, the bubble is about to burst.

A bursting bubble can be the best news for someone who invested, first, in their financial education before putting their money into an investment, the type often sold at a rubber-chicken dinner.

In 2008, my friends and I knew the market was about to burst because foolish people were investing in real estate they could not afford. Many were using NINJA loans, No Income/No Job subprime loans, and buying their dream houses, houses they could not afford.

When we saw fools rushing in, in 2008, my friends and I sat back and waited. In 2009, after both the real estate market and stock market crashed, we began investing.

As the old saying goes: “It was the best of times; it was the worst of times.”

In 2019, we are in such a time. As I write, the U.S. economy is red hot . . .  and fools are rushing in. Please do not be one of the fools. Since I sell financial education, I suggest investing in your financial education and getting ready for the crash and fools who start rushing out.

Real Financial Education

I’ll close with a final bit of real financial education. There are two types of financial bubbles. Today’s bubble is a bubble caused by debt. Ever since 2008, the world economy has been blown into the biggest debt bubble in world history.

The second type of bubble is an economy that’s growing because businesses are growing. For example, Silicon Valley is in a bubble because Silicon Valley is where the Information Age blossomed. When the next bubble bursts, look for areas that will grow again and avoid areas that will need government handouts to survive.

Seeking real financial education is a much smarter move than saying, “I have $100,000. Tell me what to do with my money . . .”

The post Fools Rush In: The Truth About Bubble-nomics appeared first on JetsetMag.com.

When I was a kid in the ‘60s, there was not much difference between the rich and everyone else.

The rich lived in better homes and drove newer cars. My rich classmates had better bicycles. Their parents belonged to the country club and the yacht club. That was about it. The gap between the rich and the rest of us was not much of a gap.

Back then, the gap could be narrowed . . .  simply by getting a good education and a high-paying job. It’s a different story today.

Today, the rich have their own private jets and the uber rich have their own rocket ships. Soon, the really rich will be flying to outer space . . . while the poor, middle class and the merely rich travel to Disneyland for rocket ship rides.

I love traveling by private jet and writing for Jetset. Flying by private jet is one of the great rewards for years of blood, sweat and tears. I have not made reservations for a trip by rocket ship . . . yet.

This article is not about discount airlines, private jets and rocket ships. My primary reason for writing this article is my concern for the widening gap between the rich and everyone else. An ever-widening gap is dangerous . . . for all of us. Throughout history, widening gaps lead to social unrest, violence, crime, and, in extreme cases, revolution.

At the core of this problem is an obsolete educational system. Today, a good education can no longer close the gap between those who ride the bus and those who will ride rockets. In fact, a good education often leaves students strapped with school-loan debt and slim prospects for high-paying jobs.

The Rise of Socialism

Income inequality gives rise to socialism.

In the 2019 State of the Union address, President Donald Trump declared, “America will never become a socialist country.” Some in Congress applauded; many did not.

Simply put, socialists believe in Robin Hood economics: Take from the rich and give to the poor

The Federalist.com reports that 51 percent of Americans under 30 hold a positive viewpoint on socialism.

Years ago, Winston Churchill said:

“If you are under 30 and not a socialist . . . it means you do not have a heart. 

And if you are over 30 and are not a capitalist . . . it means you do not have a brain.”

Bernie Sanders is over 30. What does that mean? So are Nancy Pelosi and Chuck Schumer.

Representative Alexandria Ocasio-Cortez, a socialist, is 28 years old and the youngest woman ever elected to the U.S. Congress. She has a FICO score of 430. A perfect FICO score is 850. Although her FICO score would not qualify her for a home loan, she serves on the House of Representatives Financial Services Committee.

AOC, as she is known, prides herself for paying her staffers a minimum of $52,000 of taxpayer money a year, yet she earned less than $26,000 as a bartender a year ago. Today, a year later, she makes $174,000 as a Congresswoman. Isn’t America great?

Margaret Thatcher, former Prime Minister of England, once said:

“The problem with socialism is that you eventually run out of other people’s money.”

The cry of all socialists is “tax the rich.” That sounds great in theory, but anyone who is really rich can afford to hire the best tax attorneys and tax accountants. Hence, the really rich pay little to nothing in taxes. It’s been said that “the really rich do not pay taxes.” And, in that vein, “neither do the really poor.” When socialists cry, “Tax the rich!” the people who are really taxed are the middle- and high-income working classes.

Today, the way to win elections is to jump on the tax-the-rich political bandwagon. AOC proposes a 70 percent tax on the rich. Senator Elizabeth Warren proposes a 90 percent tax on the rich. Bernie Sanders seems like a wimp next to those two political competitors.

The problem is that when the middle class votes to tax the rich, the middle class are the ones who actually pay the taxes — the really rich and really poor do not.

Back to the Future

England has been a socialist country a lot longer than the United States. America started to become a socialist country in 1933 with the election of Franklin Delano Roosevelt who instituted America’s most popular legislation: Social Security. That program is going broke today and, according to MarketWatch, Social Security has an underfunded liability of $13.2 trillion. Coincidently, 1933 was the same year Adolf Hitler rose to power.

Before Americans vote for increased socialism, free education, free healthcare and subsidized housing, they may want to look back to the future, at merry old England today.

The February 25, 2019 edition of The New York Times ran an article titled, Growing Up Lean and Giving Up on Capitalism. The article is about a 19-year-old man, Alex McIntyre, growing up in England. The article starts with:

Alex McIntyre was raised on budget cuts.

The youth center where he went to school was shuttered when he was 10. When he was 11, his mother’s housing benefit was shaved away, a casualty of the Welfare Reform Act.

“Austerity, that’s what I know, that’s my life,” McIntyre said. “I’ve never known an England that was a different way.”

The article continues:

Mr. McIntyre is the first in his family to attend college, part of a vast cohort of young Britons that was meant to embody upward social mobility. It is a paradox that so many in this bulge, like their counter parts in the United States, are giving up on capitalism, convinced it cannot provide their families with a decent life.

His grievance is generational: that the state has taken away benefits his parents and grandparents enjoyed, like low-cost housing and free education.

Britons who came of age in the wake of the financial crisis of 2008 will, in many cases, be worse off than their parents. Born on the wrong side of skyrocketing property values, 30-year-olds, in many cases, are only half as likely to own homes as baby-boomers were at the same age. A third are expected to rent for their whole lives.      

Unlike previous generations, they are expected to foot the bill for an expensive education. The average graduate now owes the government more than 50,800 pounds, or $64,000, a debt to be paid back gradually after securing a well-paying job. The portion of Britons attending college has climbed to 49 percent, the highest level ever, but they will graduate into a historic spell of wage stagnation.

Alex McIntyre was accepted into a special program for gifted young poor people, and accepted to Cambridge University, where he ate in a wood-paneled dining hall, served by waiters, an experience he called “hilarious.”

Today he works as a kitchen assistant, a fry chef at a J.D. Witherspoons, a budget restaurant chain much like America’s Applebee’s, working the midnight to 8 a.m. shift.

Alex McIntyre has joined his local labor union, manned picket lines, joined protest marches and is attending group studies on Karl Marx. If Alex McIntyre lived in America, he might be campaigning for AOC. They are about the same age.

The next day, The New York Times ran an article about China’s Premier Xi’s warning of escalating social unrest as unemployment rates rise across China.

As I’ve said, this article is not about private jets and rocket ship rides. And it is not about socialism, communism or capitalism.

This article is about education. Education is more important than ever before. As stated earlier, when I was a kid in the 1960s, a good education and a good job could close the gap in income equality. Today, a good education is not enough. Today a “good education” is leaving millions of young people, all over the world, crushed under an avalanche of trillions of dollars in student loan debt . . . while most graduates are unprepared for the real world.

Rich or poor, educated or uneducated, employed or unemployed, we all use money. Why is there little to no financial education in schools? It’s a question I’ve asked, again and again, for decades. This lack of education on a vital life skill is, in my mind, criminal.

If our education system fails to prepare our youth for a rapidly approaching brave new world, social unrest will likely lead to revolution. And maybe, the next revolution is just what we will all need a rocket ship for.

The post From Private Jets to Rocket Ships: Will Education Prepare Our Youth? appeared first on JetsetMag.com.

By Mona Gambetta

Have you ever wondered why some of life’s experiences are etched so vividly in our memories?

Incredibly clear and sharp—and as real, in our mind’s eye—as the day they occurred? Why are some experiences so much more memorable than others . . . more powerful or emotionally-charged or meaningful? A recent conversation with Robert Kiyosaki about a meeting in New York City, more than a decade ago, triggered that very question . . .

I can’t recall precisely how our conversation moved to a meeting Robert had with Donald Trump in January of 2007. It was a meeting I sat in on and one that had been scheduled for a very specific reason.

In my role in support of Robert’s book projects, I was often in meetings about books—and meeting with Donald Trump and his team about the books he and Robert have written together. In this particular one, I felt very much like the proverbial ‘fly on the wall’ because Robert had come to Trump Tower on a mission and I was there to support it—and him.

The timing was early January in 2007. The place: Donald Trump’s office in Trump Tower in NYC. And while meetings between Robert and DJT weren’t unusual—they have shared the stage at events around the world and have written two books together—this meeting was different.

And—did I mention this?—Robert had a check in his pocket (made out to Donald Trump) for $1 million.

I hadn’t planned to get into too much ‘history’ here, but a bit of backstory is important.

The two men met in the green room at a large-stage event at which Robert was introducing Donald Trump. Robert expressed his respect for a guy who had built an international real estate empire and leveraged his brand into a global powerhouse . . . and authored a book (The Art of the Deal) that showcased his approach to deal-making. When they were introduced, I remember Trump pursing his lips, nodding his head, and congratulating Robert on the phenomenal success of Rich Dad Poor Dad, the book that had become the number one personal finance book of all time and has sold tens of millions of copies worldwide. At some point, the idea that “we should write a book together” was floated . . . and that thought took on a life of its own—in the form of Why We Want You to Be Rich.

In October of 2006, Robert and DJT released that book, the first of their two co-authored books. The launch party at Trump Tower buzzed with dozens of international journalists as well as Steve Forbes, who wrote the endorsement ‘blurb’ on the back of the book jacket. Why We Want You to Be Rich hit The New York Times bestsellers list at #1 the week it was published and by the end of that year, the book had sold more than 500,000 copies. Nice payday for the author-partners, even though the revenue from book sales was only one small part of their businesses and revenue streams.

The event that really sets up that meeting between the two icons the following January was the fact that our book distributor at the time filed for bankruptcy protection on the last day the year in 2006. How that would all shake out (and it did, in a not-so-horrible way . . .) is immaterial to this story. I should mention, though, that DJT was not totally in favor of the publishing path we had chosen for their first book together, but his respect for Robert and the sustainability of Rich Dad Poor Dad sealed the deal. I’m sure that conversation, nearly a year prior, was on my mind and colored my expectations for that January meeting . . .

What is important is that there was ‘royalty’ money due to be paid to Donald Trump in January. And Robert and his wife Kim had a decision to make.

That’s where this story starts . . .

After boarding a plane in Phoenix with Robert, headed to NYC, he pulled a piece of paper from the inside breast pocket of his sport coat. He unfolded it, looked at it, and put it back in his pocket. He patted his chest, confirming to me that he had what we needed for the meeting he had planned.

“Do we have an envelope for that check?” I asked him. He shook his head. We had another 24 hours before Robert would hand over that check and it (already) wasn’t quite as ‘crisp’ as I hoped it might be . . . but that’s neither here nor there . . .

The following morning, we sat across the desk from Donald Trump. After a bit of small talk between the two, Robert explained the reason for their meeting. He recounted some of the backstory I shared earlier in this piece and explained how the unexpected turn of events with our book distributor would impact future distribution and sales of their book. Trump listened and nodded, but—as I recall—said relatively little. He did remind us that he had some reservations, early on, in terms of the overall publishing play, but more to remind us of his concerns (it seemed) than as recrimination or blame. They’d stay in touch on how things unfolded, they agreed, and Robert assured his co-author that we were already exploring several options that would keep the book distribution channels open in support of ongoing book sales and the licensing of global rights. Then Robert reached into his pocket and pulled out the (less-than-pristine) check, still folded in half.

Robert reached across Trump’s desk to hand him what must have looked more like a folded piece of paper than a check. DJT unfolded it, looked at it, nodded his head and then folded the check again, running his fingers along the crease. He didn’t say a word. Then he unfolded the check again, looked at it (again), folded it (again) and put it on the desk in front of him. He looked at Robert and asked, “Is this a hardship?”

At the time I recall thinking that of all the comments Donald Trump might have made and I would never have anticipated that one. I remember thinking, Well, isn’t that an interesting take on this business arrangement?

 Robert didn’t miss a beat and cut right to the chase: “We had a deal. And a deal’s a deal.” He assured DJT that he and his team would work through this unexpected speedbump and the terms of their deal would be honored. It was my impression that Trump was more focused on the ‘deal’—and the relationship it was based upon—than the $1 million check that sat on the desk between them.

So I wasn’t surprised when he asked again, “But is this a hardship?” To which Robert replied: “Thank you. No. A deal’s a deal. And you can count on more book sales and more revenue checks.”

As that ‘fly on the wall,’ it was interesting to see these two men—both men of relatively few words—display this show of respect, respect for each other and respect for the business deal they had made. I realized that the situation in which both men found themselves was a test of character—for each of them—and as I was witness to two examples of both character and strength, I was reminded that great lessons, in business and in life, are all around us if we’re watching for them. And, without a doubt, this was one of the most memorable of my business life.

But what I remember most—and what Robert and I talked about that led to this article—is that so often we’re so sure we know what to expect. I could have cited a half dozen things DJT might have said to Robert, based on prior meetings and conversations and the current state of affairs related to their first book. (Including: “I told you so.”) The fact that I never imagined that conversation to play out as it did has been a lesson that has stayed with me for more than a decade. As has the realization that I had made some assumptions that never even came into play. I was struck by what that said—about both men—and felt fortunate to have worked with and learned from both of them.

It would be quite the understatement to say that Donald J. Trump—as today’s U.S. President and as a businessman for decades prior to that—has surprised more than a few people in ways large and small. His reaction that day a decade ago surprised me in a way I had never expected. And the impact of that unexpected perspective—and his question—has stayed with me as I’ve watched his life take a path that led him to the White House. Some might say that meeting was an uncharacteristic moment. Others, a glimpse into his true character. In any case . . . it was one of those experiences that has stayed with me as a reminder that we don’t always see—or get—what we expect in life. In fact, what fun would life be without a few surprises now and then? My hour with Robert Kiyosaki and Donald Trump at Trump Tower that day made a powerful impression on me, a reminder that we can’t always predict how anyone will react to adversity or challenges or unintended consequences. And the pivotal role that character plays in decisions, actions, reactions and outcomes.

One thing I can say with confidence is that I wasn’t the first person who’s been surprised by Donald Trump’s perspective and actions. Nor, quite likely, will I be the last.  And the lesson for all of us might be found in the words attributed to the Greek philosopher Heraclitus: character determines destiny. That story will be one for the history books.

Mona Gambetta is the Director of Global Publishing for Plata Publishing, publisher of the Rich Dad series and the two Trump/Kiyosaki books, Why We Want You to Be Rich and Midas Touch, and has worked with Robert on his books and book publicity for nearly 20 years.

By Robert Kiyosaki

People either love President Donald Trump or they hate him.

If you hate him, this article probably is not for you. If you want to learn more about a man who became the U.S. President, this article will share an insight into the most powerful man in the world, and one few people will ever see.

I met Donald Trump before he became President Trump. We met as teachers, two men, both with rich dads . . . rich dads who were our teachers. I met “The Donald” backstage in a green room, when we were doing a number of mega-real estate investment events. The largest event we did together was in San Francisco for over 65,000 people, all seeking wisdom and knowledge about real estate investing and a path to a better life.

We met as teachers, not politicians, because we had two shared concerns: the growing gap between the rich and the poor and shrinking middle class and the lack of financial education in our schools. Neither of us could fathom that few if any schools offered a ‘class’ on the education we received from our rich dads.

While I do not agree with everything President Trump does or tweets, I did learn to respect the man during the eight years of speaking events and co-authoring two books together. We were in the process of writing a third book when he called to let me know the book deal was off and that he was running for President of the United States.

When Mona and I talked about this article for Jetset, of course I said “Yes.” Mona was with me every step of the way, and she witnessed things few people will know, things learned during the process of working with a future President of the United States.

Whether you love or hate the President, the purpose of this article is to give you a glimpse into the true character of a man who, today, is the most powerful man in the world.

Robert Kiyosaki, the author of Rich Dad Poor Dad and 28 other books in the Rich Dad series, has challenged and changed the way tens of millions of people around the world think about money and their financial future. With perspectives that often contradict conventional wisdom, Robert has earned a reputation for straight talk, irreverence and courage. He is regarded worldwide as a passionate advocate for financial education.

Robert’s new book—FAKE—goes on sale April 9.

The post A Deal’s a Deal: An Insight into the Character of Donald Trump appeared first on JetsetMag.com.

Rich Dad Poor Dad is really a story about my poor dad. My poor dad is a metaphor for the inadequacy, obsolescence and delusions of modern education’s inability to prepare students for the real world.

As I have asked millions of people, countless times: What did school teach you about money? That question is a spear, directed into the soul of modern education.

As I learned in Sunday school many years ago . . .

“My people are destroyed from lack of knowledge. Because you have rejected knowledge, I also reject you as my priests; because you have ignored the law of your God, I also will ignore your children.”

I am not selling religion, I am simply quoting ancient wisdom.

In my opinion, the powers behind our modern educational system need to look into a mirror and ask themselves:

What knowledge am I rejecting?
What are we not teaching?
Why is the institution of education under attack?
Why do so many people say going to school was a waste of time?
Why is the subject of money — a life skill — not taught in school?

In many ways, these questions are a reflection on my poor dad, a great man who dedicated his life to education. Unfortunately, it was and still is an educational system that rejects the subject of money . . . a subject worthy of study. Is there a day in which money — in some shape or form or implication — does not play a role in our lives?

My Inspiration: My Mom

I loved my mom. She was my role model for unconditional love. She constantly hugged and kissed all of her four children, as well as all the friends of those four children. You could not be around my mother and not feel loved.

She was also a poster child for self-sacrifice, giving more love than she allowed herself to receive. She was like a battery — storing energy, sharing and giving — but not receiving enough in return. Ultimately, her ‘battery’ ran out and she passed away at the age of 49.

The story of Rich Dad Poor Dad begins with my mom. One night, when I was about seven years old, I awoke to the sound of my mom crying. My dad was away on a business trip, and my mom was alone, sitting in the dining room, with a stack of papers in front of her.

It was after midnight and I was supposed to be in bed, asleep. Mom was startled when I entered the room and asked her, “Mom, why are you crying?” “You’re supposed to be in bed,” she said, shifting automatically to her role as mother. “Why are you crying?” I asked again. “What are all those papers in front of you?”

Finally, we began to talk, and she answered my questions. “These are bills,” my mom said, holding up several pieces of white paper. She then showed me another piece of paper. This one was darker in color, a golden yellow. “This is our bank statement,” she said to me.

Since I was only seven years old, the differences between the white pieces of paper and the darker yellow one were beyond me. Holding up the golden-colored bank statement, Mom said, “Do you see the numbers at the top of his paper? They start out black . . . and then turn red?” I nodded, and asked, “What do the colors mean? Why are some numbers black and then others red?”

“It means we do not have enough money in our account with the bank,” she answered. “The red numbers mean I have been writing checks without enough money in the bank to cover them.” The worry and despair in her voice was unmistakable.

Again, since I was only seven years old, my mom’s explanation was over my head, save for the significance of numbers going from black to red. I wondered how someone could write a check for money they did not have.

Suddenly, anger welled up inside of me. Anger at my dad, anger that he was hurting my mom and our family. I did not understand why or how money, or the lack of money, could hurt my mom, someone I loved so much and who I knew loved me, and bring her to tears.

Mom went on to explain that while dad was in graduate school working toward his PhD, five of the six members of our family were sick or in the hospital. The only healthy person in our family was my dad. As the hospital bills started to come in, my dad took a break from his education and took a job as an assistant to the Superintendent of Education to pay the bills. He would eventually become the Superintendent of Education for the state of Hawaii and ultimately earn his PhD.

Understanding why our family had so many bills softened my anger at my dad. That anger evolved into concern and compassion for our family. At the age of seven, I had a glimpse into the power of money. How essential it was. And how charged with emotion it was.

Two years later, when I was in the fourth grade, I raised my hand and asked my teacher, “When will we learn about money?” My teacher replied, “We do not teach the subject of money in school.” With those words echoing in my brain, I went in search of a new teacher.

That is how the story of Rich Dad Poor Dad began. It started with my mom, the person who taught me life lessons of self-sacrifice and unconditional love. The Rich Dad story has taken on a life of its own and has resonated with millions of people in cities around the world. Everyone’s life is touched by the effects, good and bad, of money.

There are a few things about my childhood that are as vividly etched in my memory as the night I found my mother crying and struggling to pay our bills. The thought of my mother crying, all because of money problems, still breaks my heart. And the emotions it evokes have fueled a life-long mission of advocacy for financial education. What I felt as an impressionable seven-year-old — the fear and the anger and the powerlessness — has stayed with me . . . and a part of me hopes those emotions never fade. They are a daily reminder of the role money plays in our lives as well as the power it has to change lives.

The post Rich Mom Poor Mom: The Power of Financial Education to Change Lives appeared first on JetsetMag.com.

We all know the world is changing.

We also know that the rate of change is accelerating.

The question is:
Are you keeping up with change,
or are you being left behind?

What if the way to keep up with change…
is to slow things down?

I love my work, and that is the problem.

I am the type of person who goes to sleep thinking about work and wakes up thinking about work. Fun is starting my day with a to-do list. My game was to count how many of my to-dos I had completed by the end of my day. Money and success seem to come easy for people who have high-performance to-do lists.

The problem was, I began to notice the more money I made and the greater success I attained, the more irritable I became. I became less patient with other people. I was losing compassion for my fellow human beings, especially those who seemed to be struggling with the changes and challenges life was bringing them.

More success meant more stress.
More money meant more expensive toys.
More success and more money meant more ego.

Finally, my cardiologist said, “If you don’t make changes, more drugs will kill you.” When I asked him what to do, he simply said, “Meditate. Make meditation a life habit, just as brushing your teeth is a life habit.” Of course, I promised I would meditate 30 minutes a day, as he suggested. I now had meditation at the top of my to-do list.

The next morning, I got up, sat in a quiet room, and began to meditate. My meditation lasted 30 seconds. I could not shut my mind up. I could not find stillness or peace and quiet. My mind was reading off my to-do list as I attempted to meditate. Soon it was clear that my mind was not going to let me meditate. My mind was not going to let me find the stillness I was seeking. After 30 seconds, I gave up and did not attempt to meditate again for 10 years.

During the decade that followed, I became more successful and made much more money, more money than I had ever dreamed of. As you can guess, my ego grew in proportion to my wealth. Rather than drive a Ferrari, I now wanted the most exclusive, expensive, limited-edition Ferrari. I got angry at the Ferrari dealer for not offering me the latest and greatest Ferrari first, so I took my business to a Ferrari dealer in California, a dealer who did a better job at feeding my ego and making me feel “special.”

At the same time, I noticed the world going nuts … stressed out like I was. Kids were walking into schools and killing kids with semi-automatic military-grade weapons. When Donald Trump won the U.S. Presidential election and Hillary Clinton lost, the world went “bipolar” — schizophrenic spewing of nothing but hate for both candidates. Our news went bipolar, too — pro-Trump or anti-Trump — no longer reporting the real and more important news.

The U.S. Federal Reserve Bank no longer asked the U.S. Government for permission to print money … aka QE, Quantitative Easing. The “New Normal” means the Fed has more power than the U.S. Government, printing $4.5 trillion. And they did it without asking the taxpayers if it was OK to increase the national debt, which is debt that taxpayers and their kids will shoulder for generations.

QE, the New Normal, is a way to save friends of The Fed at the Big Six Banks. At the same time, QE — printing fake money — is destroying the real value of money for real people. The fake money that QE creates destroys the income, savings and retirements of real people by lowering interest rates to near zero and blowing the real estate and stock and bond markets into bubbles ready to burst.

The New Normal means the number one income-generating asset for the U.S. Government is student loan debt, the worst debt of all. Today, the student loan default rate is nearly 20 percent. When a student defaults on student loan debt, most will have their credit rating ruined for life. Making matters worse, many of the students who do graduate are not prepared for the real world, a world where AI, artificial intelligence, is taking more and more jobs, not only in the United States but all over the world.

Small wonder people are stressed out, working harder, emotionally bipolar, more irritable — and afraid of becoming poorer, not richer, as the world accelerates into the future.

About five years ago, I did a talk for a group of young entrepreneurs on my favorite subject: money, business and investing. After my presentation, a young man in the audience introduced himself and handed me a copy of his book. His name was Hal Elrod and his book was titled Miracle Morning. As a younger man, Hal was in a near-fatal car-motorcycle accident. He was on the motorcycle. His book, Miracle Morning, is about the process he used to repair and rebuild himself … physically, mentally, emotionally and spiritually.

Miracle Morning was saying the same things my cardiologist had been trying to get into my thick head. Before starting my to-do list routine, I would start with 30 minutes of meditation, read a spiritually uplifting book for 10 minutes, do light exercise for 10 minutes and write positive thoughts in a journal for 10 minutes. Of course, for me, the problem was the meditation. So, I put Miracle Morning aside and went back to my to-do list morning ritual — and made even more money.

About three years ago, I was sued for the third time in my life. I was never sued when I was poor, but after I got rich, the lawsuits followed. As anyone who has been in a lawsuit knows, it does not matter if you are innocent or guilty. All someone has to do is accuse you and you are guilty. Defending yourself in court is expensive, emotional and time consuming. You are not in court to prove your guilt or innocence, but to “settle,” which only means how much the person who has money will have to pay.

One good thing about being poor is that people don’t sue poor people. My concern is that, as the world grows more bipolar and the gap between rich and poor widens, law suits will increase. If you are rich or plan on becoming rich, hire an attorney to protect your assets today, not tomorrow. Keep nothing in your own name.

As I sat at my desk, head in my hands, wondering why I was being sued again, I saw another book. It was sitting on my desk, put there by someone on my staff. The book was The Holosync Solution from the Centerpointe Research Institute. It was the perfect book, at the perfect time, because the book explained in simple language a meditation process that fit my cardiologist’s advice, the Miracle Morning process and my personal logic system. I ordered the program from CenterPointe.com and began meditating, finally, even with my mind screaming my to-do list as I meditated.

I am not endorsing, recommending or suggesting you purchase and use the Holosync method of meditation. There are many meditation processes, and many are free. I am only saying that it is the system I use and that works for me. It works because I am both Asian and Western, and the Western scientific logic incorporated in an ancient Eastern meditation process works for me. The program states that it takes about two years for the Holosync process to begin to show results, so I trusted and used the process for two years before I began to notice real changes.

Today, I still have problems. We all have problems. I still have my to-do list. The difference is that I start my day with the Miracle Morning process, and then I begin my to-do list. That one hour before starting my day has made a magical difference in my life.

The differences I see are many. My cardiologist is happier because I am healthier without the need for more prescription drugs. As he has said, “If a person is stressed, not happy, and not at peace, more medicine or drugs cannot fix that.” And I am happier. I was always pretty happy because I love what I do. Now I am happier doing what I love. And I am richer, because I am healthier and happier.

The Miracle Morning and Holosync processes have made me more creative, more clear mentally and calmer in my communications to staff and customers.

So, even though the world seems to be growing a bit more nuts, more bipolar every day, I do not have to be sucked into the global, swirling insanity. One great thing about meditation, studying spiritual books and journaling happy thoughts — before starting my to-do list, before listening to the stock market reports and before reading my financial books — is I can step back and choose to participate or not participate in the world’s insanity. Today I spend more time looking at the trees, flowers, birds, and rabbits than watching CNN and Fox attack or defend President Trump.

The world is just the world. There is a lot of change, both good and bad, going on … with or without me. Rather than change the world, I’ve learned that all I need to do is change me. I work on my mental, physical, emotional and spiritual well-being every day — before I go to work.

The post For Things To Change…First I Must Change appeared first on JetsetMag.com.