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Old Wolf Economics 101

The Old Wolf's answer to the conflicting and acerbic discussion of the economic situation.

(The script, or a reasonable fac-simile thereof, is reproduced below.)

A lot has been said on the YouTube about the Quantitative Easing. I still do not understand what is going on. Can you help me?

That is not surprising. The Economics is damned near impossible for the average person to comprehend. The John Nash who won the Nobel Prize for the application of his theories to economics was so smart that he understood it, but he also became the paranoid schizophrenic. Thinking about the economics will do that to a creature.

I am the average person, and I do not want to become the paranoid schizophrenic and be like the Glenn Beck or the Bill Maher. What shall I do?

There is very little the average person can do in the current economic landscape to impact national economic policy. One thing is certain: The Fed must be made accountable to the people, either directly or indirectly, whereas now the Fed is answerable to nothing but itself. You can write your representatives and promise to vote their asses out of office if they do not do something about the way the Fed is raping us all.

Will that bring me more of the money?

Not in your lifetime, yet it must be done for the survival of future generations. And, there are things that you can do to increase your own financial strength.

What things shall I do?

Many are the books written by the experts - if you want to make the million dollars, write the book about the money. Some are the rankest self-serving horsehockey, written only to get more of the money for the author. The most reasonable say many of the same things. The most important principles can be called 10-10-80.

What is that?

It is a simple strategy. Take everything you earn, and give the first ten percent of it to the source of your spiritual strength or your moral center. This places you in the position of gratitude, where you recognize that nothing you have is truly yours, and that the money must be a constant flow, coming in and going out to raise the human condition. Take the second ten percent and put it away for your future. Many are the experts who call this "paying yourself first." The remaining 80 percent you live on. And beyond reasonable need, avoid the debt, for it is the prison from which few escape without much pain. These are principles which the government would do well to follow also.

It sounds good. What else can I do?

Learn to manage the time. You have the 168 hours in each week. Use the hours for the things that will bring you increase and move you forward.

I like to watch the TV and play the World of Warcraft.

It is the choice. Every moment is the choice. Every choice has the price and the benefit. You must choose. But choose wisely.

What more?

Managing what you have is only one part. Developing the additional sources of income is also important. Even the second job that you do not like is the increase, and the stepping stone to your ultimate goal. The home-based business can save you thousands of dollars in the taxes that would otherwise go to the government. The proper use of corporations and trusts can keep the money in your hands and those of your family.

These things are complicated. I do not understand most of them. Whom do I trust?

Over time, you shall build the team of the investment counselor, the accountant and the attorney. Working together, they will assist you in building a strategy for your future and those of your children.

These people are expensive.

If they are honest, they will be no more expensive than their services are worth, and in the long run, far cheaper than trying to do everything yourself. Be willing to work until you have found the right team for you.

Your advice is good. Do you have any last recommendations?

I do. Read the book called "The Soul of Money", (by Lynne Twist) and I am not being paid the endorsement to say these things. The new version of "Think and Grow Rich" by the Napoleon Hill is also very worthwhile. And lastly, read "The Ultimate Gift" by the Jim Stovall. These things shall give you the perspective.

Thank you.

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Nov. 18th, 2010 12:39 pm (UTC)
....In this life, one thing counts, in the bank - large amounts.
I'm afraid these don't grow on trees, you got to pick a pocket or two, you......
got to pick a pocket or two, boooooy, you gotta picka pocket or two......


The Old Wolf

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