Tag Archives: rich

Why Rich People Hate Trump


From Bill Bonner, chairman, Bonner & Partners: It’s back to Europe. Back to school. Back to work.

Let’s begin by bringing new readers into the discussion… and by reminding old readers (and ourselves) where we stand.

Small and Lonely Group

As a Diary reader, you join a small and lonely group.

But we know something others don’t.

We—and apparently only we—understand the real cause of our economic malaise.
What malaise, you ask?

Well… how could the richest, most technologically advanced, and most scientifically sophisticated economy stop dead in its tracks?

The rate of economic growth has gone steadily downhill for the last 30 years. By some measures, after accounting for the effects of inflation, we’re back to levels not seen since before the Industrial Revolution.

And how could such a modern, 21st-century economy make the average person poorer?

When you measure actual inflation, rather than the government’s crooked numbers, the median U.S. household income is 20% lower today than when the century began.

And why would our modern economy concentrate wealth in the hands of so few, so that only the richest 1% make any real progress?

You may also ask a question with an obvious answer: Why are the richest and most powerful people in the country overwhelmingly supporting Ms. Clinton in the presidential race?

You find the answer to all these questions the same way: Follow the money.

Record Haul

Ms. Clinton is raising record amounts of money—$80 million in a single month.

Big corporations, banks, military contractors, rich people—all are pitching in to make sure Hillary is our next president.

Why?

Because she promises to protect the status quo.

That, of course, is what government always does. A free economy is a precarious place for wealth. It is despised by nearly everyone—especially the rich.

In a truly free market, the process of “creative destruction” can’t be controlled. New wealth is born. Old wealth dies.

Naturally, people with wealth and power try to use government to get more wealth and power… and to stop the creative-destructive process. They want to protect what they’ve got already. That’s why the real role of government is to look into the future and keep it from happening.

Hillary stands like King Canute, promising to stop the tides of economic history.

What’s this got to do with money?

Let’s ask another question instead: What is the source of Ms. Clinton’s campaign pile? Whence cometh all this lucre?

“It comes from rich people,” you will say.

But where did the rich get so much money?

Ah… that’s where it gets interesting.

We remind you of the context: So far this century, only the rich have gotten wealthier. Naturally, they are keen to see the system that gave them—and them alone—such great wealth continue.

Old Money, New Money

The key to understanding it all is the money system itself.

The money you spend today is the money that President Nixon inaugurated on August 15, 1971.

That’s when he reneged on America’s promise to convert foreign creditors’ dollars to gold at a fixed price of $35 per ounce… and broke the last link between the dollar and gold.

Nixon’s new money looked, for all the world, like the old money. It seemed to work just like the dollar always did. And the most distinguished economist of the era—Milton Friedman—advised Nixon to put it in place.
Subtle… slippery—the difference between the old dollar and the new one went unnoticed for 40 years.

Old dollar? New dollar? Who cared?

Even now, most of the world has no idea what happened. But we, dear reader, are beginning to connect the dots.

Here’s the basic difference: The old gold-backed dollar represented wealth that had already been created. You got more dollars as you created more wealth.

Money was real wealth.

But this old money was hard for the authorities to control. They said it was uncooperative. Intransient. And stubborn. They wanted a new kind of money… and a dollar they could manipulate (to make a better economy, of course).

So, the new dollar was created. And this new dollar was not based on wealth, but on debt.

It was not backed by gold. And it was not connected to the real wealth of the economy.
Instead, it was brought into being by the banking system—as a credit. It increased as people borrowed and went further into debt, not as they grew wealthier.

The more they borrowed, the more they could buy. This gave the economy the appearance of growth and prosperity. It allowed millions of Americans to increase their standard of living, even as their salaries stalled.

But every purchase put people further into debt…

Between 1964 and 2007, credit expanded 50 times.

And in 2008, the credit bubble burst.

More to come…

Reeves’ Note: The big corporations, banks, military contractors, and rich people backing Hillary Clinton are just apparatchiks of what Bill calls the Deep State… a nebulous group of elites who have infiltrated the far reaches of the American government.

Bill exposes this unelected group of insiders, and offers a “prep guide” to protect your wealth and privacy from its intrusion… in this urgent warning.

How to Be Rich (2016 Edition)

The best way to get started is to get started. Life rewards action…not reaction. Wait for nothing. Attack life.” – Kekich Credo #81

How to Be Rich (2016 Edition)

By Mark Ford
“Contrary to popular modern belief, it is still quite possible for the successful individual to make his million — and more.”

J. Paul Getty wrote these words in 1965 in his book How to Be Rich. I first read it more than 10 years ago and liked it very much. I read it again recently and was equally inspired. It’s a quick and easy read (it was written as a series of essays for Playboy magazine), but it’s loaded with practical advice for anyone who wants to build wealth: business owners, professionals — even superstar employees.

Getty was a very rich man. I’ve heard it said that in today’s dollars, his wealth was greater than Bill Gates’ and Warren Buffett’s combined.

Getty made his fortune by buying oil businesses at bargain prices just after the Great Depression. A small portion of the book is devoted to telling this story. The rest of it presents Getty’s thesis: that the best way to become rich is to own or work for a growing business and that business growth is dependent on following a dozen or so common-sense strategies.

“Although there are no sure-fire formulas for achieving success in business,” Getty says, “there are some fundamental rules to the game, which, if followed, tip the odds of success very much in the business man’s favor.”

Those rules include:

  • The best way to make a fortune is to own your own business.

  • The central aim of every business is to produce more and better goods (or more and better services) to more people at a lower cost.

  • A sense of thrift is essential for success in business.

  • Legitimate opportunities for expansion should not be overlooked.

  • The business owner must run his own business. He cannot expect employees to run it for him.

  • The business owner must be constantly alert for new ways to improve his products and services and increase his production and sales.

  • Nothing builds confidence and volume faster than a reputation for standing behind one’s product.

Another chapter talks about real estate. Getty was a big believer in real estate as a secondary investment. He made millions that way. He also talks about investing in fine art. In the course of his business life, Getty acquired one of the greatest private collections of art in his time. He left much of that collection to various museums, including what became the Getty Museum in Malibu, California.

In discussing employee compensation, Getty’s ideas belied his reputation for being a penny pincher. He was a believer in paying his employees well — as well as or better than the competition. He also believed in treating his key employees as partners, by giving them incentive-based bonuses and, in some cases, shares of profits. (More than a few of his key employees became rich as a result.)

As the author of The Reluctant Entrepreneur, I was delighted to note that Getty disputed the notion that entrepreneurs should “think big and take big chances.” His success, he says, came from “thinking small” (i.e., paying attention to details) and avoiding risk at every juncture.

How to Be Rich also has a chapter devoted to passive investing. Most people don’t realize it, but Getty’s record as a buyer of stocks was stellar. What was his strategy? To buy great companies with distinct competitive advantages when their shares were cheap.

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Getty wrote How to Be Rich when I was about 15 years old. America was a very different country than it is now, so you might wonder: Do those same rules apply today?

If you are at all familiar with my thoughts on wealth building, you know my answer. Let’s review just a few of the rules to see if they hold up:

  • “The best way to make a fortune is to own your own business.” I made that observation in Automatic Wealth and in a half-dozen books since, including Ready, Fire, Aim, The Reluctant Entrepreneur, and most recently The Big Book of Wealth Creation (more details on that next month).

  • “The central aim of every business is to produce more and better goods (or more and better services) to more people at a lower cost.” That should be the aim, but too many young entrepreneurs today believe their purpose is to create something that they can sell to a larger company for billions of dollars. Still, this is the best way to build a lasting relationship with customers.

  • “A sense of thrift is essential for success in business.” I haven’t written much on this. Perhaps because I don’t have a natural “sense” for thrift. Unlike some business people I know, I don’t enjoy quibbling over nickels and dimes. But I do know that thrift in business is important. If you neglect the cost side of your business, your profits will eventually disappear.

  • “Legitimate opportunities for expansion should not be overlooked.”Legitimate is the key word. I take it to mean “realistic” — that expansion and/or acquisition is good for business only if the chances for success are very good. My rule on this, which I’ve explained in Ready, Fire, Aim, is to enter arenas only “one step removed.” In other words, expand only into areas about which you are already at least 80% knowledgeable.

  • “The business owner must run his own business. He cannot expect employees to run it for him.” I’ve made this point many times. When a business gets big, the owner will be tempted to do the “easy work” of making speeches, attending functions, and writing inspirational memos to employees. But if you spend too much time doing that, you will lose the knowledge and skills you once had to do the “hard work” — developing marketable products and selling them.

  • “The business owner must be constantly alert for new ways to improve his products and services and increase his production and sales.” Again, this is something I’ve covered in many essays and all my books on business building. The strategy I recommend is “incremental augmentation.” It’s the opposite of “if it ain’t broke, don’t fix it.” It’s based on the belief that if you aren’t always improving your product, a competitor will eventually create something better. This was always true, but in today’s electronic, information-based economy, it is essential.

  • “Nothing builds confidence and volume faster than a reputation for standing behind one’s product.” Again, this is critically true today. Unless you have a virtual monopoly like the cable companies, you can’t get away with treating your customers badly.

So, the answer is yes: The wealth-building ideas in How to Be Rich are as true today as they were in 1965. And they seem to be as true for big companies, like Getty Oil, as they are for smaller, entrepreneurial companies — the ones I write about.

If you read How to Be Rich, you will like it. But you may find yourself wanting more — more specific examples, more instruction, more detailed guidance. You can get that from some of the books I’ve written on this subject. (Yes, me!) I recommendReady, Fire, Aim, Automatic Wealth, and The Reluctant Entrepreneur.

Why You Can Never “Get” Expert Status In Your Marketplace

“You either believe, like me, that because 1% of the people are rich that ANYONE can get rich, or you believe that because 1% are rich that NO ONE can get rich. Don’t let self-limiting beliefs hold you back.” – Dan Kennedy

Why You Can Never “Get” Expert Status In Your Marketplace

By Jason Leister

Most of the assets “expert advisors” seek out in the marketplace aren’t really items that can be “gotten.” Take, for example, trust, credibility, authority, and expert status. These things aren’t treasures to be seized. These treasure are gifts that must be given to you.

So let’s say you want to achieve expert status in your marketplace. My recommendation is that you stop trying to grab it. Stop seeking that out. Start behaving in a way where that status is granted to you.

Trust must come before this status is granted, however. How do you generate trust?I’ll tell you. For the sake of this exercise, let’s say you’re in a service business where you work with clients.

The Three-Step System For Being GIFTED Everything You’ve Ever Wanted From the Marketplace

Step #1… You need a source that provides a consistent flow of leads; people who have problems you solve. Get clear about who you are going to serve and figure out where these folks already are. Good leads make everything better. You don’t want leads that “come by chance.” You want to build a system that finds them — a system that you control.

Step #2… You need a leveraged way of earning a spot in the hearts and minds of your leads. My preferred method for this is a media platform. A media platform is a podcast, newsletter, video series etc. published on a consistent basis that everyone is made aware of. And it’s something that is strategically aimed at the people you are trying to attract. It is designed to be inherently interesting to them.

Step #3… You need “open doors” to the other things you offer (services, products etc.). These need to be well thought out in terms of presentation so your prospects are naturally attracted to them. A “pushy” advisor isn’t someone people respect for too long.

Now here’s the interesting part…

Step #1 generally takes the most work.

Step #2 generally takes very little work but ends up doing most of the “heavy lifting” over time, even though it does take time.

Step #3 becomes the easiest step of all if you’ve done Step #1 and Step #2 well.

And one more tip: start with Step #2 FIRST. Get your media platform created and start publishing even before you’re talking to anyone.

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The most challenging part of this whole system is finding the patience to let it work for you. This takes time. Why? Is there some flaw with this system that some marketing guru could solve so we could have instant results?

Ha! Despite what anyone says, doesn’t your heart tell you there’s no shortcut to trust, credibility or authority? Of course there isn’t. I’m sure someone will try to sell you one however.

Trust is earned; so are authority and credibility and expert status. Ultimately, these are given to you by others. So you have to wait until someone decides to offer you these gifts.

Trying to wrestle them from a prospect’s hands just ends up making you look stupid.

The “Four-Letter Word” That Supports This Approach

So where does that leave you while you’re waiting for these gifts of trust, credibility and authority to be offered to you by the marketplace?

Well, the answer leads us to a topic that most people would rather not talk about.

It’s a little thing called “personal responsibility.”

This is where a lot of people jump off and go searching for an easier path. So if you’re still reading, then congrats, you’re in the minority.

When you fully accept responsibility for everything in your sphere of being, you realize there’s only one person to blame for everything.

You can’t blame the Republicans, or the Democrats, or the schoolteacher who shamed you, or the “government,” or the banks, or your parents, or all those “lazy” people that aren’t pulling their weight around you. Ha!

This is the secret. In fact, from where I sit, it seems to be the biggest secret of them all!

Want to kill fear? Then accept responsibility. Want to stop chasing things other people think you’re supposed to chase? Then accept responsibility.

Want to become the respected expert in your marketplace? Then accept the responsibility for conducting yourself in a way that is deserving of such a position.

With that simple act, you are granted unlimited power. You are also granted limitless responsibility. And for many people, that’s a deal breaker.

When respect, authority, credibility, and expert status aren’t things you can hunt down and take, that leaves you with only one asset to create them.

That asset is your own conduct. That includes what you think, speak and do. Fortunately, you are in control of this asset.

And while it’s not so smart to go around telling the world how great you are, it does seem to be effective to allow your clients and customers to spread that message for you. Do you have your happy clients and customers speaking for you? Do you have them telling your story? Helping that to happen is just one of the many things that you control.

You also control your ability to serve more people, better, through your media platform. This is a one-to-many publication. So serving a million people is no harder than serving a handful.

Each day you wake up, you look at the things that are in your control, and you figure out how to add value to the world using those things.

When you offer these gifts to the marketplace, the marketplace can respond with gifts of its own. And the list of possibilities includes things like trust, credibility, authority and more.

About the Author: Jason Leister is a direct-response copywriter, the founder ofIncomparableExpert.com, and editor of the daily e-letter, The Client Letter, where he empowers independent professionals who work with clients. He has seven kids and lives and works in the mountains of Arizona.

The Truth About Money

by Craig Ballantyne, editor

Deep inside the SLS Hotel in Las Vegas lies a cavernous, and carnivorous, restaurant called Bazaar. Helmed by the celebrity chef, Jose Andres, you can order the finest charcuterie, rib eye steaks 2.5 inches thick, and if you call a day in advance, a whole suckling pig delivered to your table (recommended for groups of 6 or more). It’s not cheap, but it’s worth the visit. Last month, my friend and business partner Bedros Keuilian and I went to Bazaar and brought along our friend Andy. Young Andy was in awe of the restaurant, and the prices. He’s just getting started in his career and hasn’t yet built a proper money mindset. The right money mindset doesn’t mean throwing money around to show off, or wasting it on frivolous purchases. The right money mindset means that you know how to attract opportunity and properly allocate your capital. Bedros and I are good stewards of our money. Bedros has built several multi-million dollar businesses, and as a result, he lives the good life. Sure, he has treated himself to a couple of toys, a Nissan GTR and a few nice watches, but other than that, he wisely reinvests his profits back into his rapidly growing business, invests in rental real estate, and supports his family of four. More importantly, the good life also allows him to be a servant to others. He’s donated over $200,000 to Shriners Hospital, and he’s coached thousands of personal trainers to grow their businesses and, in turn, help tens of thousands of men and women transform their bodies and their lives.

Bedros has also built a franchise, Fit Body Boot Camp, where each week over 49,000 clients visit a location for a workout. Think about that for a moment. Bedros is directly responsible for helping almost 50,000 people lose weight, look great, and get healthy — all because he has the right money mindset and was willing to take action on his big ideas. Having the right money mindset has also led to our Mastermind Group. Bedros and I know that we need to celebrate our success by giving back and coaching others. We help people build businesses similar to ours. This month, we’ll have our annual Information Marketing Workshop in California with over 100 attendees, including several ETR readers, where we’ll teach people to make money — and how to have the right money mindset. The right money mindset starts a virtuous cycle. When you have it, you make more money, invest more money, and have more money. And doing all of that brings more opportunity back to you so that you can make more money. That was the big lesson we wanted to teach our young friend Andy in Vegas. “When you serve others,” I told him, “You attract the opportunity to make a lot of money.” “And if you have the right money mindset,” Bedros said, “You’ll deliver value and receive value in return. You’ll grow wealthy and be able to help more people, and that is a good thing, despite what you hear in the news and despite the negative talk you hear from other people, or worse, in your own mind.” “Plus, having the right money mindset allows you to make the right decisions with your money once you’ve earned it,” I said to Andy, who was getting excited at the prospect of getting rich. “Basically, the right money mindset guarantees that you will continue to grow your wealth, rather than losing your fortune, as has happened to so many others.”

“So how do I get the right money mindset?” Andy asked? It’s a great question. Everyone needs help with getting the right money mindset. Bedros and I have slightly different approaches, of course, because while the right money mindset is a general concept, the details are specific to each individual. The help you need for getting the right money mindset is unique to your situation. Some folks need help making money, others need help saving money, and some folks need help spending money. It’s tough to wrap up a generic money mindset lesson, but I’ll do my best. In my opinion, the best approach to a healthy Money Mindset is… To not need a lot of money… You must be able to overcome the power that money has over most people. If you can agree with the following statement, then you have the right relationship with money. If the world was to take all your earthly possessions and ask you, “What do you have left?” and you could truthfully reply, “Everything,” with a calm smile on your face, knowing that you have your family, friends, and integrity, then you, my friend, have lived the right way and won the game of life. Count your riches in relationships. Now all that being said… We’re here to make money. But if you can truly live by the statement above, then you will make the right decisions right now for your right life and your future. You won’t take short-term gains that sacrifice long term wins. To make money, you must have Big Ideas and you must add value to the world through the implementation of your ideas. You need to surround yourself with others that think big, like you, and that will support you on your quest to add value. This is why it’s so important for people to get out of their bubbles and attend events, connect outside of the industry, and hang around people that play up a level. If you only talked to your neighbor in your hometown, then you’d think that making $40,000 was good enough and getting a $1,000 tax refund every April was a big bonus. It’s not. But if you hang around Go-Givers, generous people that are wealthier than you, then you will see what is truly possible when you have a BIG IDEA that adds value to the lives of millions. That’s when the Money Game is ON. So it comes down to this. The truth about money is… “Your wealth is the average of the wealth of the five people you spend the most time with.” The No. 1 thing you can do today to improve your money mindset is to play UP a level. That might mean taking a millionaire to lunch, joining a Mastermind group, or hiring your first business coach. You need to attend seminars and be in the room with Bedros, Mark Ford, Tim Ferriss, Dan Kennedy, Oprah, Sara Blakely, Tony Robbins, and so on and so forth. Your money mindset, your habits, and your ability to generate big ideas are all greatly influenced by other people. Fixing your money mindset starts with choosing the right external factors — your friends and your environment. Go to good places. Spend time with good people and you will get the right money mindset on your side so that you’ll attract great opportunity into your life.