The powers that be are waging a war on your wealth.
Many fail to notice it, though it’s hiding in plain sight.
It’s not a war of bullets. It’s a war of numbers.
A war disguised as a casino.
It’s useful to think of some of these things as large scale “money games.” But never forget, these games aren’t meant for fun. They’re meant to steal your wealth.
It’s an attack on your labor, and that of your children.
Greedy Hands Make For Loose Waist Bands. You May Not Feel It, But Your Sons Surely Will.
This big nasty casino isn’t necessarily corrupt by default.
The markets themselves are a force for good. They help improve the quality of human life.
Believe or not, money is the same way. It allows you to transport your labor across time and space.
Unfortunately, the games have been perverted.
Everyone has their hand in the cookie jar (aka. your piggy bank).
The government. The banks. The big corporations. Even your own money manager!
The net result is that your buying power gets absolutely crushed over time.
[PBD Spending Power Stats]
It’s a slow leak, lost by percentage. That makes it hard to detect, especially over generations.
We’re like frogs in a pot of boiling water.
There used to be a simpler time…
When a man could graduate 10th grade and start working the farm. From the sweat of his brow, he could save up enough money to move to a place of greater opportunity. He could repeat the cycle. Work, save, and buy a house for his family. Again. Work, save, start a business. And again. Work, save, buy a rental house. Again and again, until he possessed one rental house for each of his grand children.
That man was my grandfather, the greatest Papaw that ever lived.
10th grade education. Picking tobacco. Delivering newspapers. Walking power meters. Cutting grass.
Sure, it was hard. And he also had some help (from the greatest Mamaw that ever lived).
But there was a time when good men didn’t have to try so hard to provide for their family.
I’ll tell you more about how Papaw did it in a bit.
But first, let’s talk about…
How They Bleed You Dry
Imagine a game of cards.
Let’s call it:
Texas Hold Your Future Hostage
Texas Hold The People Down
Texas Hold Up
Whatever you want to call it, you’re getting screwed.
The rules have been rigged. The dealer’s been bribed. The house are cheats. And all the other players are looking to hustle you.
You must see the problem:
If you don’t even know you’re playing, you will lose every time.
Fortunately, you don’t have to know all of the games to avoid busting out.
Understand the big picture. Then pick a game and master it.
First, the drains on your wealth.
- fiat currency
- central banking
- rent seeking
- crony capitalism
- market manipulation
- financial derivatives
All of these things and more impede your ability to make a living.
Sure, you can still achieve “financial freedom.” You could even become insanely rich. But it’s harder than it should be.
Everyone wants a piece of your stack.
And they’ll get it too, unless you do something about it.
Fiat Currency – Variable Value Chips
Money is meant to be one thing:
A representation of your productivity. It’s the grease that oils the gears of our society. It allows you to put in work today and pay for something with it tomorrow. Likewise, it allows you to put in work in one location and pay for something with it elsewhere.
At it’s best, sound money makes it easier for human beings to improve each other’s lives.
Unfortunately, world governments have all but destroyed sound money.
Instead we use fiat currency.
The more they print, the less each dollar is worth. You perceive it as prices going up. But they’ve actually just devalued your labor.
The dollars in your bank account represent your time and energy. Central banks and governments have the power to make them worth less. That’s how our pennies, nickels, quarters, and dollars became so worthless.
It’s kind of insulting.
“Oh, that hard work you put in? Today we decided it’s not worth as much as you thought it was. We don’t care what price you agreed to exchange your labor for. Yeah, maybe we’re interfering with the employer-employee contract by lowering everyone’s wages across the board at once. So what? We’ll give you some free stuff if you’ll just forget about it.”
Imagine playing your way to the final table at the World Series of Poker. When you get there, the house decides to devalue your chips based on what country you come from. That’s basically what happens to our buying power in the global economy when they print new dollars.
“Gas prices went up.”
No, your dollars got devalued.
“Rents are rising.”
No, your dollars got devalued.
“Food is getting more expensive.”
No, your dollars got devalued.
It’s (usually) a slow leak. But it erodes the stability of our system at a fundamental layer.
If our money is corrupt, so is every transaction we make with it.
Money is the language of reciprocity, after all.
When I’m not sure you worked as hard for your money as I worked for mine, it causes resentment. This kind of resentment doesn’t bode well for society (as we’ll talk about later).
Variable value chips make this the default state of local economics.
Perhaps that’s why the Founder Fathers established gold and silver as the only money.
If only the illogic stopped there.
Unfortunately, there’s much more eating away at your wealth.
Central Banking – The Dirty Dealer
It’s bad enough that we let them get to our chips…
But guess what?
They did ya’ one worse.
They put the power to print new chips in the hands of a third party. And that third party doesn’t even try to pretend to be independent. In truth, the Fed is clearly a part of the big “bread and circus” machine.
DO NOT TAKE THIS LIGHTLY!!!
Oh wait, you have been your whole life; it’s the status quo.
Nevermind, maybe we’re just fncked.
Some say the corruption of true money is what brought down Rome [fact check]. If you want an immortal empire, it’s gold standard or bust bro. Duh.
But even if we need to manipulate the money to protect our quality of life, please DON’T GIVE CONTROL OVER TO A G–D–M- UNREGULATED ENTITY THAT IS BASICALLY ABOVE THE LAWS.
It’s been game over since 1910.
We’re definitely fncked.
This dealer demands interest on every hand you play. Most people have no idea that our debt is monetized. Americans pay interest to the Federal Reserve for every dollar they print [fact check].
Yet few understand how the Federal Reserve works. Fewer still understand the full significance.
Is it really surprising?
Born in the casino, it’s easy to think “the game” is all life offers.
Every time they print money, we should revolt.
It’s like getting mugged.
Except they do it to us everyday… in broad daylight… whenever they please.
It’s gotta’ be a racket.
And still, it gets worse.
When they print new money, whoever gets to spend that new money first is at an advantage. Essentially, their dollars begin circulation at the same value as all other dollars. But as soon as they enter the total supply, all other dollars lose value.
They do you dirty every time they print money and hand it over to the bank or airlines as a “bail out.” And even when they send you that stimulus check, they fund government entities and corporations first [fact-check].
It’s all robbery.
But we let them get away with it.
For the Poker Players…
Imagine you enter a $500 tournament with 10 of your friends.
You get down to the last 3 and the pot is split pretty evenly, at about $1500 apiece.
You go back and forth for a few hands and no one is really making much headway. The guy throwing the tournament (who is also one of the final 3) announces that he is going to buy himself in another $1500. The dealer lets him, over your objections. Then raises the blinds, as if he is colluding with the house.
It’s something like this scene from “The Sting” when Mr. Lonegan stacks the deck and buys back in to put Mr. Shaw all in…
…except it’s worse, because it’s your government doing it to you. And of course, the fact that he stacks the deck before doing so makes it an even better analogy for what happens to our money real life.
No matter what they do to the money supply, few stacks grow more quickly than those of the system’s chosen few.
We plebes just let it ride, trusting our politicians. Meanwhile, half of them have no idea how this stuff works—and the other half are in on the take.
So tell me, what do the gangsters do when they’re conned out of their money in cards?
Or if you’re not a fan of gangsters, how about the founding fathers?
Taxes – The House Gets 35%
Let’s keep it 💯.
Taxation is theft.
35% is an insane tax rate [fact-check].
Revolutions have been waged for less. The Boston Tea Party happened in protest of a 3% tax increase.
You know the casino is extorting you but you’re forced to play anyway.
What a terrible predicament.
Again, our generation just accepts this as the status quo.
Meanwhile, the rules aren’t the same for everyone.
Some players don’t have to pay the same way. Reducing your taxes is a crucial strategy to defending your wealth. Unfortunately, the best tax breaks are reserved for those who can find the loopholes. Most of us can’t afford a team of lawyers and tax professionals to help us work it out.
And true, not all of us need to go to such great lengths anyway.
Nor do I blame those that do.
It’s your labor after all. There’s nothing wrong with you defending against the government’s grubby paws—even if you’re a big business.
Perhaps it would be better if we abolished all of the complicated codes that lead to this imbalance. Or better yet, we should just abolish half of our taxes outright. We accept taxation as the status quo. In reality, the United States hasn’t always had a federal income tax (and some states still don’t have one).
[pbd taxes video]
Fair enough. But the road to legislation is a long one (and probably an even more rigged game). So the only real solution is to build wealth and use the tax codes for your advantage.
For some players at the highest levels, lobbyists are a better investment than any asset.
Such is the game the big boys play.
You can either b!tch about it or try to become one.
Once you do that, you can often just sit on your money and it will multiply for you.
Rent Seeking – Renting Your Seat at the Table/Rigged Machines
For the wealthy, the investing vehicles are diverse and powerful.
Plus, they tend to be easier.
Well, that kinda’ depends on how you define “easy.”
But at the very least, their profits are more guaranteed. This allows them to create long-term financial strategies they can count on.
Unfortunately, such “rent seeking behavior” contributes very little real economic activity to the global marketplace. Instead, it acts as a leach and contributes to long-term economic instability. For example, our massive credit industry plays a major role in our “boom and bust” cycles. Meanwhile, it allows the banks to virtually manufacture profit (and receive bail outs when they screw up).
Now, I’m not saying we should abolish loans and landlords. Our system of home rental and ownership has obvious advantages. It’s better than every man having to build his own home from the ground up, obviously. Interest on loans isn’t inherantly bad either. It allows us to buy things we couldn’t afford today in exchange for the promise of tomorrow’s labor.
However, maybe we should abolish loans and rent.
In all seriousness, “fake economic activities (aka. money games) don’t actually contribute anything to society. Yet the games are being played, whether you like it or not. You can’t escape it. All you can do is learn to play. In all honesty, trading and investing aren’t any more “real,” but they’re crucial tools for the average man.
The banking cartell that acts as “stakeholders” of the Federal Reserve are probably the biggest culprits. Not only do they control the game, they’re allowed to skim off the top of what our labor produces. Their whole function as an “entity” is to make profit, and there’s probably no easier way to do so. Plus, whenever they begin to lose control of the game, they simply lean on the house to change the rules.
By no means are we saying the big banks are the only guilty parties. They’re just the most guilty parties.
rent seeking also happens at the corporate level
Crony Capitalism – Card Counters & Rigged Machines/Inside Players
the big players
can lean on the dealer at your table
state-funded horse races/cock fights/cage fights
Market Manipulation – Whale Games
what if i told you some entities’ chips were worth more than yours… it’s because variable value in the moment… leverage is one hell of a drug
another poker example… what if everytime your opponent bets, some guy in galley triples his bet… like a personal credit line or some such
hedge funds holding the market hostage…
market making and high frequency trading
Derivatives – Monopoly Money
[the big short scene from the restaurant]
In this casino, the big players
create financial instruments for the hedge funds and inside players
(tools for the layman like robinhood come from entrepreneurial innovation… aka real economic activity)
derivatives… not fair to monopoly but the point it is just made up…
just a big fat betting market on top “the real” market… unfortunately, lots of the whales and others use these to protect their massive nest eggs so if they’re on the verge of busting out, not only can they call in favors to the dealer, they hold the whole casino hostage by saying we’ll take our money and leave now… and so they print chips and raise house fees to buy the whales’ bad bets to keep the house from going under… the practical result: prices of stocks and other assets are no longer tied to their real values
and what if i told you the chip-making-dealer bought the bad bets to support the gambling… because they just want more chips in circulation because they get paid out first
BONUS: Ocean’s 11 – Black Swans
it’s rare but sometimes the casino gets their sh!t jacked too… like what the us did with brenton woods
decentralized finance the answer
Papaw’s Rental Houses
The racket is nothing new.
They were running this scheme before Rome.
Getting mad about it won’t do you much good, unless that anger helps you decide to do something about it.
After all, a good man can still build his own empire.
That’s what Papaw did.
His legacy will live on through his children and grandchildren… a legacy of wealth, land, and knowledge.
And through our actions, all of that will compound for own children and grandchildren.
This is how you build that mythical…
That average man can’t build a legacy of financial freedom in one generation anymore.
Don’t get me wrong:
The self-made millionaire is still a viable dream. We’ve got copious examples to choose from. In fact, you can find examples of self-made billionaires.
However, the days of working an average job, saving, investing, and then thriving are mostly gone. At least, that’s true for most people born in this country.
The sad thing is, the American Dream is still alive and well in most immigrant populations.
It’s not an issue of opportunity. It’s an issue of culture. If you consume media that encourages you to spend money on dumb things, you’re less likely to make responsible financial decisions. Hip hop. Reality TV. Social media.
At least if you buy into the culture… steve jobs talked about ramen noodles every night and elon musk went on a dollar a day… immigrant culture
unbroken families and good parenting are incalcuably important variables
systems and mindset… culture
american culture is rich with opportunity but the erosion of our money is a major problem… you can build an empire but it won’t be as stable as it used to be… so the knowledge becomes even more important… as does the entrepreneurial spirit, because you need a money machine more than you need a fat stack of money
how’d he do it?
Savings Are Dead, Long Live Saving
Saving may be the #1 skill holding back our wealth creation today.
As modern humans, it’s a skill we’ve lost. As individuals, it’s a skill we never learned.
Some of us hardly even realize it’s a thing… much less the key to building wealth.
We live in a day of entitlement and instant gratification. We have everything we want at our fingertips. What’s worse, we assume the government will take care of us when things fall apart (no matter how irresponsible our behavior).
Well, actions have consequences.
And these ‘lil chickies seem like they want to come home to roost during our generation.
Hand’s down the most important thing:
save dem dojos
read the richest man in babylon
warren buffet, don’t lose money, don’t lose money
what papaw did is still possible, it’s just harder… one of the things that made it possible for him was resistance to consumerism… today, we’re so fast to spend our money on useless things… like a casino with the prize… too busy spending our tickets to
Eat Shit & Keep Your Word
REAL economic activity/value
other self sufficieny… some of that coming from developing the skills of being a landlord
community – having a guy for everything
Make Your Dollars Work for You
That’s what this site is really about
Unskewing?/Skewing the Gini Coefficient
we’ve had a MASSIVE explosion productivity but they’ve siphoned it off for themselves… we all should have 100xed (they’d still be “proportionately”–define right–ahead)… instead we 10x and they 10000x
the number of zeros is the difference… the top being 1,000,000 versus 1,000,000,000,000
What To Do About It
talked about abolishing loans, taxes, and more… not so much a call to action as something to make you think
(though understanding/monitoring macroeconomics is important)
we need gold back… fiat currency is a leach
greedy hands on your money… siphoning off your value at every point they can…
like a casino, rigging the odds so that they always win over time
it doesn’t matter if you like it. It doesn’t matter if it’s right.
jim rohn big ol thing going up and down clip
these people employ PHDs on PHDs all to screw you out of your wealth/money