Neither a borrower nor a lender be.
– Polonius (Advice to his son Laertes. Hamlet: Act-I, Scene-III)
You are a slave. “How so?” you ask. “I have no shackles. I’m a free man. I have rights protected by the constitution!” Not like the slavery which ended mostly in the 1800’s, but a form of modern day metaphorical slavery in the 21st century. If you do not pay attention, you will be enslaved. A slave historically was someone who had no say in the way they made use of their time, skills, and what happened to the fruits of their labor. They were owned or indebted to a master either by birth, or capture. In some circumstances, a slave could buy their freedom with money through physical labor to pay back their debt. Slavery has been used to build empires, and parts of that world still exists today. You could even make the gross oversimplified observation that most of history is just the story of tribes conquering, and enslaving other tribes.
In 1776, from a US perspective, we were given freedom from a ruler or king. In 1865, all slaves were emancipated. By this point, a person would only go back to bondage in slavery by choosing to be in debt to someone. The borrower would become slave to the lender. You were also free because money in an economy was gold or silver or a tangible bartered good like food or land, and nothing else. It was a simpler time. Money wasn’t credit created out of thin air. Gold had no risk from a counter-party on its worth to the rest of the world, and was used universally across the globe for millennia. It wasn’t until banks started over issuing claim checks on gold stored, or governments overspending their accounts, that extra risk was being created out of thin air. This lead to public distrust, bank runs, government “regulated” control, and the world eventually left the use of gold as money to an ex nihilo (out of nothing) debt-credit monetary system. The US dollar became a US treasury note, which is debt issued by the US Treasury backed by absolutely nothing but fear of violence.
This system would require more and more debt-credit creation to solve economic slowdowns or trade deficits, to keep the economic wheels spinning. Banks or governments would need to issue loans or pass legislation to create debt-currency into the economy. This would lay the foundation of monetary enslavement, and an economic debt blackhole in the 20th century.
“If you go down through the horizon of a black hole, at the center, you don’t find a tunnel that leads you to some other place in the universe.”
– Kip Thorn PhD (Nobel Physicist)
Debt has to be paid somehow, whether it was through increased taxes from a productive workforce, or the extra issuing of a countries currency or bonds, which eroded its value through an increased supply. The hard earned capital created would get eroded year after year due to monetary inflation, and currency devaluation. In 1970, the average American made $9,700 per year, which was in a currency backed by gold at a ratio of 35 to 1. For every $35 treasury notes issued, the US government would need to have 1 ounce of pure gold on its balance sheet. This kept government overspending in check, (though banks could still over issue and over lever their balance sheets.) At $9,700 this was the equivalent of about 277 gold ounces through hard earned production per year, in 2022 dollars this would be the equivalent of making about $485,000 per year. Due to government overspending and growth of offshore Eurodollar banking, the US had to leave the gold standard, which lead to inflating the US money supply with more treasury notes. Today in 2022, the average American still works the same amount as they did in the 1970s, but makes $53,000 per year, which is about 30 gold ounces. The average American made (give or take) 9x more in purchasing power per year in 1970 than they do now 50 years later. There is a reason why Americans are having a difficult time affording the American dream, fiscal and monetary irresponsibility over creation of debt. The currency will be devalued and taxed away, and we spend almost every day dedicated to accumulating what banks and governments have been poor stewards of. We have become Sisyphus condemned to push a rock up a hill forever, never reaching the top and reaping the reward of hard work.
There must be a better way. There must be unspoken rules to this debt-credit system, and how to get out of it.
The 10 Unspoken Rules of Money
#1. Money/Currency is debt.
You are in the matrix, stuck inside a financial system. Debt/notes/bonds are bondage, slavery. The monetary system is a slavery based system. By decree, The World is enslaved to the dollar.
#2. Debt makes Slaves.
The unspoken rule of the rich (elite ruling class): If you have slaves, do not teach them how to not to become a slave. Destine them to become slaves. Get them to borrow, get in debt, high interest rate debt. Lower interest rates to buy assets, then sell at the highs. Raise interest rates (the price of debt) to drop asset prices. Peasants sell when they lose their job, panic, and lose everything. Then we (the rich) buy. Those washed out take on more debt. Repeat cycle. Keep the peasants poor. Rich people don’t teach others to build wealth.
#3. Society is not your friend.
Average advice keeps you average and a slave, like crabs in a basket pulling each other down. Every second is programming you. Its an invisible jail. Society wants you to make milk. It wants you on their farm, making milk for them (the rich). Make them just smart enough to run the machines, but not too smart. Keep their money slow in a bank with a mortgage, invested in bonds. Keep them reliant on the system through debts (bondage). Take away their ability to defend their self through each crisis.
#4. Programming is your Superpower.
Selective programming is your superpower, choose who programs your mind. Only accept the programming you want. Be the average of the 5 friends you want to have outside of the system. Your network is your net-worth You are the average of the 5. Who is programming you?
#5. Money buys freedom.
Perspicacity: Acuteness of perception, discernment, or understanding. You need to pay detailed attention to every single time you spend money. You cannot make money out of thin air (like a bank). All of us take money from other people. Everything is owned. Money is everywhere. The rich don’t work for money, they work for assets. The rich live off the backs of the poor. The poor pump the gas, build roads. Money buys your freedom from the state of survival through cashflow. You do not want to just be rich, you want to be wealthy. Cashflow is the new gold.
#6. Generate money.
Money in motion, should stay in motion. You can only play so much defense by saving money. Focus on offense to win the game. Cashflow from business gets you out of a debt slavery system. The world is going to keep getting worse, and money gives you options. Money is always moving, it is a jealous lover, and will go where it’s treated best. What attracts money to you or your businesses? Focus on what is generating cash around you, and where your money is flowing. Cashflow is the new gold.
#7. You can be Self Made.
You don’t need money to make money. 88% of millionaires today are self made. You do not need to be born into money to create wealth. You do not need debt to create a business or make money.
#8. Only focus on the right thing: Your business’s Cashflow.
Where is money flowing? It doesn’t matter how hard you dig if you’re searching for gold where there is none. Pareto found that only 20% of all the actions lead to 80% of the results, so find the 20% of the business that makes 80% of the cashflow and double down. If you are investing, look for low price to cashflow, high consistent year over year growth, with consistently high margins, high return on invested capital (ROIC), low debt, and is ideally paying high dividends if there is no better use of the left over capital. Essentially, does the cashflow produce even better cashflow. Compounding cashflow is the secret to wealth. Cashflow is the new gold.
#9. Last Generation.
This is the last generational chance at assets. Have yachts, and have nots. The matrix will be solidified with a central bank digital currency system(out of nothing/real slavery). A digital currency will enslave everyone. Politicians through banks will dictate how you can spend their money. They will physically detain you if you do not comply. Cash, privacy all going away, and compounded wealth is just growing too fast. You need protection, land, agriculture, water and energy reserves far away if this system does not work. Just look at all the bunkers the rich are buying across the globe. Central banks are buying gold at record levels, but telling you it is a relic. The peasants will try to revolt, and fail just like the Chinese Communist Party has imposed on it’s citizens. The grip will keep tightening.
#10. The World has changed, and why you are not rich.
There are only 3 reasons why you are not wealthy: Lazy, stupid, or arrogant. This is harsh, but the majority of people are not the one they think they are. This is how you fix not being wealthy. If you are lazy, focus every second be working on the business, and making money from cashflow. If you are stupid or a slave, do not fall for societal traps like bonds, mortgages, jobs or careers, etc. Dumb people hurt themselves or others by these traps, and don’t make money, whereas smart people help themselves and others, and make money. The main reason why people are not wealthy is arrogance. Remember, you do not know everything or whats coming. Do not be so arrogant to think you do not need to become wealthy. Be humble, and realize you need more. You could be helping the people around you even more with your wealth.
There are people who make $10k/mo without having to be a slave working +40hrs a week and commuting +2hrs a day. Online is the future due to physical limitations. Do the $10k/month math. Ie. Charge $1000 for a product or service, per month, with 10 customers. Or $100 for a product or service, per month, with 100 customers. Or $25 for a product or service, per month, with 400 customers. Tim Ferriss says build your loyal 1000 customers, and you will become apart of the new rich.
“The Matrix is everywhere. It is all around us, even now in this very room. You can see it when you look out your window, or when you turn on your television. You can feel it when you go to work, when you go to church, when you pay your taxes. It is the world that has been pulled over your eyes to blind you from the truth.”
– Morpheus