Viresh Amin

Money Managin

viresh amin — Tue, 19 Jan 2010 23:46:00 GMT

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Money Managing

by Viresh Amin

Thanks to the Federal Reserve and our government for their chase for a strong dollar policy, middle income workers are now forced to become money mangers. A strong dollar cannot come from government or the Feds, only from the private sector; although elected officials have unlimited power to destroy it. It used to be that you can work, get paid, then allocate your money to a bank and let it sit without worrying. But now, in addition to a career, we work harder preserving wealth than creating it. Since the inception of the Federal Reserve the dollar has lost in 97 years over 95% of its value. It is reasonably certain the next 95% won’t take as long, and is more likely to occur in our life time.

Middle income retirees, long before retirement have to risk handing their money over to “professional” money mangers in order to at least preserve their lost purchasing power. The days of letting the money sit under the mattress are long over and it’s the race to stay even. They say that the moment you drive a newly purchased car off the lot is the moment the car starts losing its value. With that in mind, the moment you receive your paycheck it will have long before started losing its own value. Knowing this many will have to become money managers in order to preserve wealth in which they have already labored for.

The ripple effect coming from coerce monetary policy reaches each and every one of us. It is the money nexus that allows for a complex economy to evolve and allows unfortunate men and women today to live in a better manner than historic kings. Without a sound medium of exchange, it is a one step digression to barbarism. This is what makes a sound, worthwhile, medium of exchange especially significant and allows us to step away from primitive economies.

If the markets were allowed to function those middle income retirees could have retired long before they originally planned. Instead, they are delayed from retirement or the already retired are now forced into an extremely competitive job market. A free market currency preserves wealth, and from this our elders would be allowed to retire, and can free up jobs for the jobless.

It’s a disgrace that a person who goes to college, gets a job, then gets paid will soon have to enter the stock market in order to keep up with inflation, as if life wasn’t already tough. With government and Fed central planning, inflation will only get worse and life with it. Once serious inflation gets underway, money managing will get only rougher, and for those who cannot manage to keep up will join an already large club.

Sound money allows the free markets to become more efficient, productive and speedier than most can understand. Sound monies are a natural human process that comes as naturally as a plant from a seed. For those who are misguided into believing that only government can fix economic disasters that government created, they are in for a surprise. They will also be surprised to find that money, and law comes from individual men and not government. Sound money and free markets is the shortest path to inevitable progress.

Raining on the Parade

viresh amin — Tue, 12 Jan 2010 19:40:00 GMT

The Lew Rockwell dot com and the Ludwig Von Mises institute have and continue to do a fabulous job at raining on the government’s parade and all the fallacies that are floating around in today’s world. They have time and time again become a place for minds to create great ideas, theories, articles, and books to show us just what this world has come to. Government has for far too long suppressed the best efforts of productive men and steals tax payer money to produce nothing productive for our end; all the while they tell us that they are working diligently for our best interest. One of these days that rain will turn into hail and a wrath the likes of hurricane Katrina will send a destructive backlash to all those “legalized” crooks and criminals living off the successful efforts of the productive minds.

Allow yourself to wonder if one can keep the four months of salary that you work hard for but instead have to pay in taxes involuntarily. Feel the amount of stress that will be lifted off one’s mind come April, imagine that you can reinvest it into your business and produce more efficiently to meet the consumers desires and of yours, or simply take a long needed vacation and you will just begin to envision what might be possible. Forced voluntary compliance is no friend of a man that wishes to be the most efficient and productive being that he can be and keep what is strictly his. Once taxes are implemented, man’s best efforts, become submarginal.

Boil it down to the simplest terms and you will get the idea. Man A has forced upon man B to pay him every year. Man A states he will insure that he will use that money to look out for the man B’s best interest. In a truly free market man B would be allowed to decide if he would gain from paying man A. If the results are no good, man B can stop anytime. Replace the “men” with “group”, hence if group A in a free market threatens group B to pay for the services, this would be called in modern language, government. It sounds harsh, but simply true. Ask any taxpayer why they pay their taxes and they will say “because you have to”. They “have to” because otherwise they will be charged with tax evasion and sent to jail for not forking up their money that they did all the work for.

Perhaps the best example is the greatest investor of the lost decade, Bernard Madoff. This man ran a multi-billion dollar Ponzi scheme (PS) and got caught. To clarify, this man was supposed to have been caught years before, but due to our efficiently working tax (thanks to Group B for their taxes) funded Securities and Exchange Commission, they seem to have fumbled when they received a tip about Madoff years before. Now let’s see, if all Madoff wanted was to steal money he could just as easily gotten a government job, or better yet, if he loved PS’s so much he could have applied for a managerial position at the Social Security Administration and he would have been amongst people of his kind. To sum up PS’s: run a PS privately and you will, if caught go to jail, but run a publicly funded PS and you will, if caught, keep your job. If you run an “inefficient” PS privately, you will fail and go to jail; if you run an “inefficient” PS publicly, you will fail and receive more taxpayer dollars.

Profit Incentives

viresh amin — Tue, 12 Jan 2010 19:40:00 GMT

Historically, it has long been a self-evident truth that the most efficient, productive, and fastest, way to produce goods and services to best serve the consumer desires is to allow a entity to have a profit incentive i.e., unhampered markets. Without such an incentive all three (efficiency, productivity, and speed) will deteriorate and will become submarginal i.e., public education, Amtrak, and the U.S. Postal Service to name just a few. In many cases without a profit incentive, the only incentive today is the bailout incentive i.e., Fannie and Freddie, etc.

If entrepreneurs are not allowed to, from free market business activity gain profits when they have the foresight to take advantage of it and to incur a loss when their judgments are proven faulty, it becomes impossible to decide upon how to best serve consumer desires. In a free market, if consumers see no gain from buying goods and services from one entrepreneur, they have the right to buy from another. If their desires are not meet businesses will more than likely go bankrupt or incur losses and produce less and the land, labor, and resources which would have been used up unprofitably, will become available for another entrepreneur who may serve consumers better than one who cannot. To survive you must be the fittest!

Government thinks otherwise. Advocates of public education fail to realize that education was far better before government believed they had to take control it. Literacy rates were much higher from privately schooled children than publicly school ones, and still are. Many presidents of the past promote public education, yet hypocritically their own children attend private institutions. All one has to do is look at the fault lines and they will realize that Chinese and Indian children are far better equipped going into college than American children are. If only the education system had a profit incentive in which meeting consumer (in this case, children and their parents) desires, schools can compete with one another and tout that “my school offers better education than another”. If competition is allowed, institutions will go out of their way to insure quality education with an affordable price; otherwise consumers will be happy to shop around, which gives all the more reason to offer better services. Since parents hold quality education for their children close their hearts, a firm offering education would be particularly sure to offer better quality than another. Checks and balances do in fact work.

Many would worry that the free market education system would turn into a monopoly, profit greedy business. This wouldn’t be possible under a free society, monopolies theoretically can only exist with government aiding them, and if education becomes unsatisfactory, the parents could turn to another institution. The possibility of a one firm providing all the education is not likely. There is no way of telling if public education funds are efficiently put to use due to no profit incentive. If the schools aren’t properly financed, throwing more money at it doesn’t solve much, and how much would to too much or too little be? The margins for wasted taxpayer money are incalculable. Under private institutions, they will have to offer and maintain quality education first before major profits are realized, rather than public education with no incentive, rather forcing children to attend.

Money is not the root of all evil. It’s surprising that many people fall into this type of deception; these same people would have us also believe that guns kill innocent children or that since money was created by men, all men must conclusively be evil also. Money certainly isn’t “everything”, but it is quite important. If there ever were another better way to produce goods and services in more efficient, productive, and speedier manner, the profit incentive will fall to the way side and a new system will emerge, so long as government does not suppress it. If one reads history thoroughly, they will find out that many problems of the past are present today.

Trivial or Fundamental?

viresh amin — Tue, 12 Jan 2010 19:39:00 GMT

One of America’s great men on Capitol Hill has repeatedly stated that the issues at hand are dealing with the trivial and not the fundamental. Ron Paul, has many times raised the question why do the terrorists in the Middle East hate us? He always gets the typical answer. The Administration, being the caring politicians they are, tell us that these terrorists hate our freedom, prosperity, and our democratic way of life, thus government concludes that they hate everything America stands for. Americans fall into this belief because they have a feeling that if they do not agree with the government, or agree that people who hate America are bad, they would somehow become an unpatriotic Americans. Nothing can be further from the truth. Those same Americans should ask the Founding Fathers how America came to be, it would be a true eye opener for them.

When it comes to the unconstitutional war in the Middle East the hot topic issue among the administration is, should we increase troop levels by 30,000, withdraw some, or keep it the same? Being the trivial question it is, Ron Paul would ask, should we even be at war in the first place? The simple and short answer without going into the unjust war that it is, is no.

Parting ways with the terrorism, we can apply the trivial and fundamental question to almost anything. For example, the Federal Reserve would ask should we higher, lower, or leave the interest rates unchanged? (Perhaps the question should be clearly stated in a proper manner: how should we, the central bank, continue to implement our ‘inflationary hidden tax’ policy this time around?) Ron Paul, would ask should we have a Federal Reserve to begin with? Asking this, therefore rules out the trivial question and leaving us with a rather clear approach to the real issue at hand. The answer obviously is we shouldn’t have a Central Bank.

Global warming alarmists have been promoting all kinds of end of the world scenarios in order to scare us into believing that sea levels will rise to extraordinary heights due to the melting of the polar icecaps, which will lead to land reduction and cause the weather to be more violent than ever in history. All the while, Ron Paul has been stating that these alarmist views are nonsense and it is nothing more than a scare tactic in order to implement new laws with coercive taxes which ultimately lead to one thing: more power for government and less for us. Many scientists have fallen into the globe is warming due to carbon emissions camp and have stated that the science can’t be wrong! Unless of course they measured the degree to which the earth has been warming wrong or lied about it, which is exactly what has happened. The trivial minded will ask, but what about the polar bears? And the fundamental minded would state, they are superb swimmers.

Trivial or Fundamental can also be applied to the most mystical question of all. What is the meaning of life? Maybe, it was a designed question asked not to be answered, but a question to mystify the trivial minded into thinking there is an answer, much like our global warming alarmists. Once the trivial minded are trapped into thinking there is a true answer, the person who asked the deliberate question will apply some form of despotism onto the answer seeker or purposely answer the question in such a way as to flow authority to him i.e., divine kings stating their power comes from the gods. What would be more gratifying to a person to know he can control the minds of people coercively, and still know that these very same followers can change their mind anytime?

What is the meaning of life? More importantly is can the human mind be able to ask a question to which there is no way of attaining an answer to? If we were to find a non-coercive answer, how would that change our world? There is no correct answer to this ultimate question but it is important to be open- minded about it. The possibilities are endless.

Majority Rule

viresh amin — Tue, 12 Jan 2010 19:31:00 GMT

Most people are oblivious for a correct justification for the perpetual rise in all that can be priced i.e., oil prices rising to ungodly digits. For Americans, oblivious would be an understatement, though some are waking up to meet reality face to face, but not enough. Over the longer term horizon the general consensus among the public is that the price of everything will continuously rise, and so my wage will rise with it. It’s practically hard wired into the uninformed American mind and time and time again they fall into a myth.

When it comes to finding the fundamental reason, inflation gets the blame. Inflation has become to be known as something that will always happen and will never go away, much like death and taxes. In fact it’s become typical for many soon-to-be-retirees to factor in inflation when deciding upon how much money they would need to retire and live in Florida. Those very same people blaming inflation have no clue where the roots of inflation come from; they are at a loss of words. The administration ideally refers to the trivial fluctuations as some anonymous incident or their favorite, blames “greedy” businesses for raising prices and keeping all profits for themselves, which in some cases leads to a coercive higher tax for that particular industry or a congressional hearing before congress to explain their greedy behavior. This has during this last depression become all too common. When the Central Bank talks of inflation they speak of it in the same light as the administration and blame some unknown phenomenon that has to do with prices, thus they establish a “war on inflation”, and like all wars in modern America, they seem to never end. They purposely blame prices, in order to lure the public into a dead end road where they leave them with a confusing and complex answer. It’s just smooth talk that keeps the public ignorant of the truth.

The culprit is the Central Banks i.e., Federal Reserve. They purposely inflate and expand credit in order to finance unconstitutional budgets and agendas and push back the realization of their unsound fractional reserve banking that is a scheme that has been climbing a wall of worry from the very beginning; along with public and private debt, and unfunded liabilities. When they can push no further, they will divert to pumping the printing presses quicker than before one more time and the markets will roar bull, although when this too fails, they smooth talk and blame the unknown and how this unknown couldn’t have been possibly seen, after all if a central bank didn’t see it, who could of? (How can you argue with that kind of logic?) They act as if they are working for your sake (after all they went to war with “inflation” for us) while their actions speak a different tone. More importantly is when all else fails, there soon comes the collapse of the currency itself. The process will occur so quick that most people won’t know what hit them. One day the ignorant are living on a massive credit bubble that sprouts infinite prosperity and the next they are using their dollar bills as toilet paper.

If it comes down to the hyperinflationary state that destroys the facilitator of all transactions in a complex economy, most will be ill prepared, and will suffer accordingly; it will wipe out all with no real wealth. For those who have come to find out that the dollar bill is not true money, but only a money substitute will have preserved their wealth into true money i.e., gold and silver.

Most people today do not look at their money as if it can lose its value like an asset can. It simply does not cross their mind. For example when the price of movie tickets rise from under a dollar decades ago to over seven dollars today, they do not connect the dots and see that it’s the money losing its value which leads to the price to go higher.

In America they say the majority rules. Today, the majority only speak the trivial and not the fundamental issues. When the day ticking time explodes, most Americans will be thrown into a world of poverty and will come to realize who the true terrorists are. On that day, America and its majority will no longer rule.