I love measuring my thoughts against great new ideas and challenging my thought processes. Especially those thoughts that I inherited from my culture, my parents, my experiences, and finally those based upon my assumptions. Have you ever thought about the origin of your thoughts? As LIFE Founder Orrin Woodward often says, “ideas have consequences.” So how did we come up with our current ideas about very important LIFE areas like family, faith, and finances to name a few? Chris Brady recently produced a CD entitled “Three Bubbles”, on the newly launched Freedom Series, and I thoroughly enjoyed the ideas that he eloquently articulated on that title. The idea that our world financial system is being manipulated by some very smart people who understand the consequences of a populace fixated on inherited ideas. Finances is the most mis-understood aspect of freedom in our world, and Chris Brady did an excellent job of simplifying our current mess in a way that helps us formulate new ideas… Let’s see if the following story captures the message of this fabulous freedom CD…
Bubble #1 – Once upon a time there were 10 hard working men that decided that they were going to save their money and start investing in real estate. The men saved various amounts of money ranging from $20,000 – $60,000, but one man name Fred, managed to save $200,000 in anticipation of the annual real estate tax auction. At this auction the public is allowed to bid on properties that have been seized for tax purposes, and each man looked forward competing in the open market for the real estate. On auction day, cash in hand each investor arrived early to register. Obviously, everyone knew that Fred had the most leverage and buying power entering the room because he had sacrificed more than the other investors. Unbeknownst to Fred, at registration the other nine investors were each given extra cash by a secret group of bankers, so that the each now had $200,000 entering the room just like Fred. When the auctioning begins Fred is amazed that his competition is able to spend the same amount of money that he is spending and just about every property is selling for double of what Fed had calculated; because of the extra cash flowing through the room. In the end, Fred’s $200,000 buys only one property because someone was able to pump unearned money into the market.
Bubble #2 – The story continues…Fred’s is now disheartened and his newly acquired property is a complete rehabilitation project. With the few dollars he has remaining, Fred needs to purchase, lumber, drywall, copper wire, and windows to repair his home. He gets bids from the local hardware store, and begins the same process of sacrificing and saving that earned him his initial seed money. After 6 months Fred returns to the hardware store to fulfill his order, and for some strange reason, the price of lumber, drywall, copper wire, and glass has doubled. Fred is perplexed because there has been no mention of disaster or shortages of these commodities on the news, the prices just doubled over night! Unbeknownst to Fred, the same secret group of bankers have gotten a new partner named Sam, and Sam gave them special access into the commodities market as a “speculator”. The bankers can now go around buying up all of the things that the public needs on speculation, and they are able to make that into an investment product for their bank. With both hands in the cookie jar, these bankers control both supply and demand. The bankers can now control the amount of the commodities in the marketplace, therefore causing shortages and sky-rocketing prices. Again Fred is being fleeced by forces unseen and he has no choice but to seek a loan in order to finish his rehab project.
Bubble #3 – The loan officers at the bank know that Fred is bankrupt and holding a property that is in disarray. It makes no sense to extend this loan to Fred, but the bankers have worked out another secret deal. Their plan is to package Fred’s and others sub prime loans with legitimate loans and make an investment product out of the mostly bad loans. They know full well that the loans are not stable, but they are going to make billions of dollars before the whole things comes crumbling down. In order to cover their bases the bankers get in bed the the insurance companies that write policies covering the potential collapse. And the bankers make an investment product out of the insurance policies as well! Fred now has his loan, his property was purchased way over market value due to purposeful inflation. The materials used to finish the property were overpriced on purpose by the “speculators”, and the adjustable, high interest loan is eating away at Fred’s equity like a cancer.
But that’s not how the story ends…Eventually the bubbles pop, as we saw in 2008, when millions of citizens began to crumble under the burden of real estate debt. The “pop” then causes the investment products to go south, and the insurance companies have to start paying billions to policy holders. The banks and the insurance companies run to the Government asking for a bailout before the entire nation collapses. The Government in bed with banks and insurance companies, pardon the crooks, sacrifices a couple of companies as good public relations, and rewards the schemers with billions of dollars. Meanwhile there is old Fred…holding on to worthless cash, being gouged at every purchase, left holding properties that are upside down, and to top things off, the government raises Fred’s taxes to cover the cost of bailing out the very people that caused his situation.
Now I am no conspiracy theorist, nor am I an alarmist, but I am a realist, and I want to measure my thoughts against yours. Is it possible that we are pawns in this game? How can we get off of this chess board? If we could get off, what should we do? The questions are simple, but the answers are complex. Every few years a new crop of politicians come along promising answers, but they only seen to repeat the con. I believe that the answers lie in the minds of our citizenry, and LIFE provides information that at least let’s us know we are being duped, because you can’t fix a problem unless you know there is a one. Is your name Fred?