Why Financial Education?

Kia Ora,

First alittle housekeeping. May of being misleading in saying on previous blog that outlined was path to riches. As Robert Kiyosaki points out each person must find the path (or genius) that excites them & they understand. For Robert it started with property, but though he remains anchored in property he uses the education he has to ensure he is in the right area at the right time. Warren Buffett focussess his path on control of companies through understanding financial accounts. Richard Branson relies a lot on his intuition & his personal brand.

They all make mistakes but learn from them. They don't wait until it is all perfect.

So why bother with financial education?

Because despite what the 'experts' say things are almost certainly about to get very bad. If you do the research you will find that all that is happening is history is repeating itself & all the advice we are getting worked for the last depression, but is unlikely to be right for this one.

Why? Because bascially the worlds economy is controlled by a group of families who know this is part of a cycle, so they position themselves to ensure they benefit. How do we know they control the economy. Well it will surprise people but the top 50 plus central banks of the world are actually privately owned instituitions. Top of these is of course the US Federal Reserve, which is not federal, not a bank, has no assets & is essentially not owned by Americans.

Each time the cycle hits a depression these groups ensure that more wealth & control are transferred to them.

Again why bother with financial education? To find out what those that control the economies are doing then set yourself to be ahead of the game.

Currently there are four scenarios being floated.

Everything to continue as normal after recent hiccup. Almost certainly the most unlikely path due to actions taken to keep economies going.

Deflation: What the last 'Great' depression was. Why governments threw so much money at this recent hiccup to stop deflation. Possible as things are much more unstable that people realize. Deflation causes everything to loose value.

High Inflation: Likely due to amount of currency printed to not only bail out during last hiccup but also to 'grow' economies. The printing of fiat currency history shows causes inflation & in the end the currency becomes worthless. Inflation will cause prices to rise though not neccesarily in value. It means your savings become worth less. For every dollar printed it causes all others to loose value. Hence you may hear people say a dollar today is worth more than a dollar tomorrow.

Hyperinflation: Very likely as US in particular has being printing so much currency & if there is another deflation threat then the head of the Federal Reserve has said he will throw money out of Helicopters to the people to stop it (hence his nickname in US as Helicopter Ben). This is when your currency will become really worthless. In 1923 hyperinflation hit Germany due to all the currency printed during the war. There is a story of a woman with a wheel barrow full of cash going into to see how much the loaf of bread was that day. On coming out she found all her cash on the ground as someone had stolen her wheel barrow as it was worth more.