THIS IS NOT FINANCIAL ADVICE, PLEASE DO YOUR OWN RESEARCH
Group Economics, do we really know what it is????? Most people think it Is just buying black, so our so-called leaders in the community make us feel good by saying “buy black”, and we can feel good and go home because we bought black. Then we just go home expect things to change, then we complain and say well we have been buying black for the last 3 years nothing has changed in my neighborhood…. Poverty is an interesting phenomenon and has a lot of moving parts. Here is a fun fact contrary to what people believe, most millionaires were not born into wealth or inherited their wealth. According to research, only 12% of them inherited their wealth. How did they become wealthy? well, I’m glad you asked!!! most of them live very frugal lives. One very good example is Warren Buffet, who still lives in a house he purchased for $31,000.00. 88% of millionaires are self-made. The average millionaire is 61 years old with $3.05 million in assets.
Warren Buffet doesn’t spend more than $3.17 on food outside, meanwhile, his house valued today is $260,000.00 in 2014 he bought a Cadillac XTS for $45,000.00, which was an upgrade for him from his 2006 Cadillac DTS this is because his daughter said it was embarrassing, now let us go to Mark Zuckerberg, he drives an Acura TSX which he bought for $30,000.00 he also has a VW Golf, not bad for a billionaire huh….then we have Alice Walton, she has a net worth of $68 billion and still drives her 1979 ford F150, Bill Gates wears a $10.00 watch and Jeff Bezos still drives his Honda Accord, did I say it was a 1997 Honda Accord?? frugal lives I tell you
The main thing I want to talk about is group economics. One part of it which we fail to realize is money pooling. Most of “us” have no idea how capital is created and passed around. A few who understand what this is have become scammers, and they will take the money from the community and enrich themselves with it. I like to call this the church phenomenon for there is no other industry that is engaged in money pooling and wealth transfer than the church. This happens in every community, anyone remembers Enron? The system itself functions on money pooling, this is why gofundme has become like a lottery ticket to most people. Below are some of the institutions that help with the way the system functions.
- 1. Banking system
- 2. Hedge funds
- 3. Investment funds
- 4. Gofundme
- 5. Business organizations
- 6. Churches
- 7. Insurance Companies
The interesting thing about “our” people is we don’t know when to be individuals and when to be in a group. Before we go any further let me say this “ If you spend all you have and all you make you have a poverty mentality. Ladies and gentlemen, there is a way to go about things. According to research, there are a few different types of money, lets focus on a few, shall we?
Fiat Money
This is regular cash that we use in everyday life, the government prints a lot of it, paper money not backed by anything.
Commodity Money
They say this is the oldest kind of money, the stock market thrives off commodities, value from this is from the commodities themselves. eg, Gold, Silver, Coffee, Cocoa, Oil.
Commercial Money
This works because of the Fractional Reserve Banking, Banks now lend out more than they have or money they don’t have, so this is basically debt because the banks don’t have the money in the first place.
Here is where the money pooling takes place, pay attention. Banks collect deposits and lend that money out through loans and at an interest, therefore they pool money in order to create capital, note that a bank doesn’t say they have cash, its money is in assets, as a matter of fact, if every customer went to the bank at the same time to withdraw their money in cash, the bank will shut down, they don’t have it. Banks pool other people’s money to finance assets based on debt.
Insurance companies collect premiums over time to be able to pay their claims functions a little bit like a bank,…there is another kind of insurance where people don’t even pay attention to because it has lost its part of its name so many people don’t know that some of their taxes go into a money pool and its paid out to people who don’t lose their jobs, it is called unemployment insurance. This is how important money pooling is, if it is done right, now one has to suffer, but we live in a world where personal interests are first, and everything else is second
Hedge funds are pooled investment funds by the wealthy, State Governments pool money by way of taxes to invest, like an investment club. Employer benefits are also a type of money pooling, that companies make a profit from and they have enough despots like 401K to pay out retirement funds with interest, After all, everyone doesn’t retire at the same time. Churches like I said pool money a lot through offering and tithes, the catholic church has a wealth of approximately $10 billion.
Private banking services for the high net worth individuals which means rich people pool their money together to create capital some of these banks are
UBS Global wealth management
Morgan Stanley wealth management
Bank of America Global wealth investment manager
Credit Suisse, Private Banking and Wealth management
JP Morgan Private Banking
Citi Private Banking
Goldman Sachs Private Wealth management
Raymond James investment banking companies
Remember the buying black thing I was talking about ?? yes, Money starts in a bank and ends up in a bank, if you buy black and it doesn’t end up in a black fund or financial institution, you might as well give your money away. Wealth transfer happens right under our noses and we have no idea it is happening, most of our neighborhoods don’t have banks or have banks that don’t belong to us, so in other words, there is no money pooling in ” our” communities so if we buy black and at the end of the day the storekeeper or restaurant owner doesn’t bank black well I said it already, ( might as well throw your money away) but there is a way out, do we know about the CRA? Community Reinvestment Act or CRA is a way to hold banks accountable to reinvest in the area they are in. It is up to us to explore this but we hardly do so. We claim we do a lot of research but we don’t talk about things like this.
Before I end this I will like to talk about a traditional system which has worked through the ages. That system is the “susu” system, the system was good in ancient times, and it worked very well, it is a good way to come up with capital. The thing about “susu”is it may not work in the modern world. Like everything else, it should be dynamic and change with the times. These days we have credit and the federal reserve bank. We have fractional reserve lending and fractional reserve banking, which means banks can lend money they don’t have in order to gain more assets. “Susu” industry doesn’t take the credit system into consideration. . So “susu” is good for what it was but the banking system is more sophisticated than that.
Some of the worlds Wealth funds
- China Investment Corporation
- Abu Dhabi Investment Authority
- Kuwait Investment Authority
- National Council for social security fund
- Norway Government Pension fund Global
- Investment Corporation of Dubai
- University of Texas Investment Management company
- Texas Permanent School fund
- Alabama Trust Fund
- Ghana Heritage fund.
- Harvard University endowment fund
Black lives matter????? that was just a funny joke giving that Black lives matter made 10 billion last year and have yet to give Mike Brown’s family anything at all, Black Lives Matter is a movement, it is not a wealth fund. (Laughing)
By Anthony Mills and Jesus Kotei
