Ah, to be of the privileged and cultured class – butlers, trust funds, planes, yachts, and race cars. What’s it like to have all that money? Dudley Moore, in the 1981 film Arthur, a comedic flick about a cavorting socialite and heir to a massive fortune put it most succinctly – “It doesn’t suck.”
Wealth Doesn’t Just Happen
While it certainly helps to inherit millions, according to Forbes, an astonishing 67% of the world’s billionaires, made it on their own. And the majority started out as either middle class or downright poor.
Likewise, most of America’s wealthy didn’t win the lottery or inherit their money. Many current millionaires have earned their fortunes in tech, finance, fashion, and media, while prior affluent generations took advantage of the rapid advancements of the industrial revolution by investing in railroads, oil, steel and land.
Mayer Amschel Rothschild, the founder of one of the world’s most storied banking dynasties, was an orphan from a Jewish ghetto in Frankfurt. He went to work at 13 with little formal instruction in money or finance and taught himself the intricacies of collectible coins.
John D. Rockefeller, the oil tycoon and America’s first billionaire, grew up middle class. His father was a traveling salesman who sold a tonic and elixir called “Rock Oil” that he claimed cured cancer. The younger Rockefeller went to work at 16 as a bookkeeper earning 50 cents a day.
The forefathers of these influential families shared common traits of hard work, discipline, and principled investing.
Their rise to power and prosperity was neither haphazard nor accidental. Rather, it was part of a careful plan that involved the strategic growth and preservation of wealth
[Read more…] “Inside Mayer Rothschild’s Secret Counting House: How to Live Like the Rich Do”
People often confuse me – Pamela Yellen – with Janet Yellen, the former chairman of the Federal Reserve.
I can understand the confusion – we share the same relatively rare last name (“Yellen”), we’re both women in finance (a male-dominated field), and we’re only six years apart in age. But that’s where the similarities end.
Janet Yellen is the former head of the Fed, while if I were nominated, my first course of action would be to abolish the Fed. I’ll tell you why in a moment…
Alas, I am not hopeful about the future of the economy with Ms. Yellen or Mr. Powell at the helm. The Fed is still printing money 24/7, forever blowing asset bubbles (and the inevitable bursts that follow), and throwing seniors and savers under the bus by keeping interest rates artificially – and dangerously – low.
Of course, if this strategy works so well, why did we experience the slowest rebound from a recession in memory (if not in history)?
There are a lot of reasons I’d abolish the Federal Reserve…
For starters, it’s not federal, nor are there any reserves. It was conceived in 1910 during a secret meeting on Jekyll Island in Georgia of seven wealthy and well-connected bankers who controlled one-fourth of the total wealth of the entire world. Its purpose was to birth a banking cartel to protect its members from competition. (A fascinating book on this topic is The Creature from Jekyll Island, by G. Edward Griffin, available here on Amazon.com.)
A widely publicized new report from the Federal Reserve shows Americans’ wealth plunged by nearly 40% between 2007 and 2010, due to the collapse in home values and the stock market.
There’s one big problem with the Report, which reveals that the net worth of U.S.families has been reduced to a level not seen since 1992 – it’s one of the biggest lies ever perpetrated on the American public!
Here’s why: You can’t eat a number on paper!
Those statistics about how much Americans’ wealth had ballooned prior to the financial crash were pure fiction. Unless and until you sell your assets and (hopefully) lock in your gains, you have nothing more than a bunch of eye-popping numbers on paper that have lured most Americans into believing they have real wealth and financial security, when they do not.
At least that’s the case for Americans who save and invest the way the conventional wisdom tells us to. But it’s not true for people who use the Bank On Yourself method.
[Read more…] “They’re lying to you, again..”