The purpose of money is, among other things, a medium of exchange and a store of value. If one has an excess of money, one might lend it in an act of charity. As a store of value, its job is to be relatively stable, so money is not much of an asset if one is looking for gain. Since money is gold and silver, looking for gain you would buy equity in a business by making an exchange for gold and silver for stock, and in turn the business you bought into would use the money for some corporate purpose.
Now in our economy, we use nearly no money, since bad money has driven out good, malcredit has driven out benecredit. We buy and sell on malcredit, that is mere promises to pay, indeed, we are legally obliged to, and so people who accumulate excess credit seek to invest it to gain more. We are a nation of rentiers who actually own no assets, but expect a return on nothing but putative capital.
When you got paid, you were paid in credit, not money. You may have invested this credit in assets. There is no money backing your bank accounts.
As to assets backing investments to which you may have some title:
So the overbidding is peaking out, and we see the ball appearing to hang in the sky for a moment before it comes back down.
You assets are totalled based on the nominal price of your investments. Bondholders have first claim, although the hegemon has learned he can abrogate rights with impunity. On top of your claim on the asset base of USA is the political promises, actually a higher priority to the hegemon, on those same assets you putatively own. The hegemon understands, ultimately, they have first call on your assets in an emergency.
Emergency!
There is one asset class in which you may thrive. Start your own business and your first asset is a lifestyle you prefer, and next your earnings are protected as you store them not in a bank, but as accounts receivable, credit extended, to your customers.
There it is, the future, if you want it, but all this politic-econ biz talk is with one aim, calming the vast swathe of rentiers in usa, people who have nothing but malcredit, who've never really earned any money because their entire careers were built on a false economy, and expect to have a retirement as well based on, well, nothing.
Don't be like them. Give up nothing, and build something.
Feel free to forward this by email to three of your friends.
Now in our economy, we use nearly no money, since bad money has driven out good, malcredit has driven out benecredit. We buy and sell on malcredit, that is mere promises to pay, indeed, we are legally obliged to, and so people who accumulate excess credit seek to invest it to gain more. We are a nation of rentiers who actually own no assets, but expect a return on nothing but putative capital.
When you got paid, you were paid in credit, not money. You may have invested this credit in assets. There is no money backing your bank accounts.
As to assets backing investments to which you may have some title:
The idea behind asset allocation is simple: when one market struggles, it’s OK because an investor can jump into another that is thriving. Not so in 2015.
In fact, if you judge the past year by which U.S. investment class generated the largest return, a case can be made it was the worst for asset-allocating bulls in almost 80 years, according to data compiled by Bianco Research LLC and Bloomberg.
So the overbidding is peaking out, and we see the ball appearing to hang in the sky for a moment before it comes back down.
You assets are totalled based on the nominal price of your investments. Bondholders have first claim, although the hegemon has learned he can abrogate rights with impunity. On top of your claim on the asset base of USA is the political promises, actually a higher priority to the hegemon, on those same assets you putatively own. The hegemon understands, ultimately, they have first call on your assets in an emergency.
Emergency!
There is one asset class in which you may thrive. Start your own business and your first asset is a lifestyle you prefer, and next your earnings are protected as you store them not in a bank, but as accounts receivable, credit extended, to your customers.
There it is, the future, if you want it, but all this politic-econ biz talk is with one aim, calming the vast swathe of rentiers in usa, people who have nothing but malcredit, who've never really earned any money because their entire careers were built on a false economy, and expect to have a retirement as well based on, well, nothing.
Don't be like them. Give up nothing, and build something.
Feel free to forward this by email to three of your friends.
2 comments:
So if one has assets in a 401K would you recommend cashing out and taking the 10% plus tax hit to invest in a business?
I did.
But you need a license to give financial advice in USA, and I don't have one, so I don't make investment recommendations, only to say, start a business! What is in the 401k is only what the hegemon says you can put in there, things it controls.
Check back after the next crash, and let me know how the 401K looks, and say a year later too....
John
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