I am updating this post from last February. I think it is even more relevant now than then.
Did you know we Capitalists had our own Capitalist Angel? Kind of neat don’t you think?
Every since I was a little Kid, I knew that I was going to be a millionaire when I grew up. I always liked money from the standpoint that I had figured out that if you have it, you could get to do the things that you enjoyed. For me, this was to buy Popular Science and Popular Mechanics magazines and to buy items for my experiments that I constantly had going on.
My Mom indulged me in this and my bedroom was a constant disaster in that I usually was trying to grow some type of new yeast under the bed or tearing apart motors, or other mechanical devices on dresser and in the dresser. or on the floor. It was really an enter at your own risk environment.
I also noticed that the grown-ups that had it seemed to be happy and the ones that did not, seemed pretty miserable. I noticed this pretty much everywhere from the grocery and hardware stores, to my own extended family. If you listened closely, the vast majority of unhappiness came from the lack of money. So I never fell into that stupid socialist trap that money is the root of all evil because in fact I knew that it was the exact opposite. I knew those people that said that were secretly lying which put me on edge and gave me a bad feeling that at that age I recognized but could never quite put my finger on. In my own observations it brought happiness and peace to peoples lives.
As I grew older I wanted to figure out how to make and keep it money so economics and investing became some of my hobbies. I always worked from about 6 years old on either mowing grass, selling Christmas Cards door to door, on my Grandparents farm, or in my Dad’s Hay and Feed business. Throwing around several hundred 75 lb. bales of hay a day when you are 14 will give you the incentive to figure out how to make money a bit easier than that.
At 17 I purchased my first Stocks and made money on the transaction. As I did not have a mentor in this arena, it was a learn as you go process, so I devoured every book that I could get my hands on about making money. I made mistakes though… arghhh and went broke several times after making it per say. But, those mistakes later served me well. I soon realized that there was a lot of contradictory information out there about making money and there is even more of it today!
Then I started to read the likes of really smart Economists like Ludwig von Mises, Friedrich Hayek, Milton Friedman, and Thomas Sowell among others. Through them I found out that while economics was a big, big issue, in essence it was pretty easy to understand.
Capitalism is the only system in History that we have found in thousands of years that works every time. The only time it does not is when the government steps in, period. Socialism and Communism does not work. Government intervention caused the Great Depression and every single recession and depression before and after including this one.
One of the main causes was the Community Reinvestment Act in which the Government forced banks to lend money to people that could not afford it along with a bunch of other large and small government interventions. The cause is the Politicians in office right now.
Do you see them taking the blame for it? Of course not. They try and point it toward Corporate greed when it is just another case of Political stupidity. But alas, complaining about it won’t fix things, but knowing what is going on can help you profit from it.
Now I am getting a bit off track here but if you don’t know the rules of the game, how do you ever expect to win? The answer is you may for a while but sooner or later you will get bit on the butt and lose and you won’t know why.
I will give you some reading to do in the future if you are interested that will help you understand what the real rules are and you will be ahead of billions other out there that are clueless.
Capitalism is the only system that functions in a way which rewards rationality and penalizes all forms of irrationality….It is capitalism that gave mankind its first steps toward freedom and a rational way of life. It is capitalism that broke through national and racial barriers, by means of free trade. It is capitalism that abolished serfdom and slavery in all the civilized countries of the world.”
After 30 years of study of making money and investing, I have come to the conclusion that the following are the 3 best investments period.
1. Invest in your own Education constantly, but filter out whom you listen to and get a mentor who has been there and done that and has the scars to prove it. You now have me but you will want to pick up more.
2. Invest in your own business or other peoples businesses. This is not stocks on Wall Street that you have no control over. I am talking about putting money into your own business or going out and finding other businesses whereby you can invest your expertise, money, or both. You can get returns in the 1,000% on a regular basis. If you live in America, you can do this in a Roth IRA that you control. You can blow away any returns your Broker or Investment Adviser is doing for you if you do just a little bit of homework.
3. Well, anything that allows you to get your money of of the US dollar and into something real. Right now I would say silver, or even real estate as long as it is in places like Argentina or some other country that does not have inflated prices. I used to say Real Estate for sure. But I have to add a big caveat, especially now. Real Estate prices could still end up being corrected another 20 to 40% downward. Especially commercial real estate. The dollar looks like it is going to be worth less and less and inflation is starting to kick in big time. So, your money in the bank is could be worth a whole lot less.
But I still thing that #1 is your best bet for now.
OK, so on to Capitalism and why you need to make as much money as fast as you can. (and no it is not just because of what is happening to the Economy now that the Democratic Socialists have taken control). Just in case you forgot, they have been in control of the Congress since 2006. The Economy sure has done grand with them in charge so far huh? But this is another issue that we will discuss later from a purely economics standpoint. But I think a lot of the bad things were done on purpose.
But that is another long conversation best suited for another time and another venue. But just got check out the Ludwig Von Mises Link and check out Casey Research for what is really going on in the world of money. I suggest you sign up for their free daily dispach at the bottom of the page.
A Primer On Capitalism
I am going to include the following excerpt from “Atlas Shrugged” by Ayn Rand a Russian immigrant (legal) that came to America in the 20’s to escape from Communist Russia
This book was given to my by a friend exactly at the right time for me a few decades ago. Rand was the first writer-philosopher-thinker that thought like I did about money and she also named several types of people that I had run into over the years on a constant basis due to my family’s heavy involvement in politics… Namely Moochers… For that, I am forever grateful because when you can name something, it gives your power over it.
If you have never read or listened to “Atlas Shrugged” I highly suggest it as a primer in Capitalism as it will give you a better understanding about what is going on in the US and around the world as a whole. Plus she defines my idea of Capitalism to a T. Now she goes to some extremes to prove her points, but even though it was written nearly 60 years ago it has an eerie resemblances to what is currently happening.
The following is an excerpt from Atlas Shrugged.
This is called the ” Money Speech” and is from a character in a book. This will not spoil the book for you if you want to read but give you a taste of what it is all about. Hope you enjoy it.
This is why I want each and every one of you to make as much money as fast as possible and this is what drives me each and every day.
“So you think that money is the root of all evil?” said Francisco d’Anconia. “Have you ever asked what is the root of money? Money is a tool of exchange, which can’t exist unless there are goods produced and men able to produce them. Money is the material shape of the principle that men who wish to deal with one another must deal by trade and give value for value. Money is not the tool of the moochers, who claim your product by tears, or of the looters, who take it from you by force. Money is made possible only by the men who produce. Is this what you consider evil?
“When you accept money in payment for your effort, you do so only on the conviction that you will exchange it for the product of the effort of others. It is not the moochers or the looters who give value to money. Not an ocean of tears not all the guns in the world can transform those pieces of paper in your wallet into the bread you will need to survive tomorrow. Those pieces of paper, which should have been gold, are a token of honor–your claim upon the energy of the men who produce. Your wallet is your statement of hope that somewhere in the world around you there are men who will not default on that moral principle which is the root of money, Is this what you consider evil?
“Have you ever looked for the root of production? Take a look at an electric generator and dare tell yourself that it was created by the muscular effort of unthinking brutes. Try to grow a seed of wheat without the knowledge left to you by men who had to discover it for the first time. Try to obtain your food by means of nothing but physical motions–and you’ll learn that man’s mind is the root of all the goods produced and of all the wealth that has ever existed on earth.
“But you say that money is made by the strong at the expense of the weak? What strength do you mean? It is not the strength of guns or muscles. Wealth is the product of man’s capacity to think. Then is money made by the man who invents a motor at the expense of those who did not invent it? Is money made by the intelligent at the expense of the fools? By the able at the expense of the incompetent? By the ambitious at the expense of the lazy? Money is made–before it can be looted or mooched–made by the effort of every honest man, each to the extent of his ability. An honest man is one who knows that he can’t consume more than he has produced.’
If you liked this excerpt, go buy the book and read it. You can get is used for less then $7 or $8 dollars sometimes, although I hear it is hard to come by in England for some reason LOL. Socialists don’t like it and I can see why. It shows how utterly bankrupt their ideas are. You can also just splurge and buy a new copy. I know I dig mine out every few years and read it again and I get something new from it each time I read it. Anyway, if you read it or have read it, I would love to hear your comments on it. I am going to dig my out again this week.
Now in the next few weeks, I am going to be concentrating on how you can get your business up and running and making a profit online as easily and quickly as possible.
I am going to be giving you some of my best tips on SEO and why you should be using WordPress for you site and how to use it to start bringing in money right away.
Have a profitable day.
Andrew $ Anderson