FAKE

1. Fake money, teachers, and assets are eroding the middle class

"The rich do not work for money."

The widening wealth gap is largely due to the proliferation of fake money, teachers, and assets. Since 1971, when the U.S. dollar was taken off the gold standard, central banks have been able to print money at will, leading to inflation and the devaluation of currency. This has benefited the wealthy who own real assets, while eroding the purchasing power of the middle class.

Fake teachers in the educational system and financial industry often promote strategies that keep people trapped in the rat race, such as:

• Focusing solely on earning a high salary
• Saving money in low-interest accounts
• Investing in mutual funds with high fees
• Buying a home as your primary investment

Fake assets, like 401(k)s and other paper investments, often benefit financial institutions more than individual investors. The wealthy, meanwhile, focus on acquiring cash-flowing assets like businesses and real estate.

2. The global financial system is built on a foundation of debt

"After 1971, the U.S. dollar became debt."

The fractional reserve banking system allows banks to create money out of thin air by lending out more than they have on deposit. This has led to an explosion of debt in the global economy. Some key points:

• For every $10 deposited, banks can lend out $90 or more
• The U.S. national debt has surpassed $30 trillion
• Global debt reached $303 trillion in 2021, or 351% of GDP

This debt-based system benefits those who understand how to use debt as leverage, while trapping many in a cycle of consumer debt. The ultra-wealthy and large corporations can borrow at near-zero interest rates, while average citizens pay high rates on credit cards and student loans.

3. Real assets put money in your pocket, fake assets take it out

"Assets put money in your pocket. Liabilities take money from your pocket."

Real assets generate cash flow and increase in value over time. Examples include:

• Rental properties
• Businesses
• Royalties from intellectual property
• Dividend-paying stocks

Fake assets, on the other hand, often cost money to maintain or come with hidden fees that erode returns. Examples include:

• Your personal residence (costs money for mortgage, taxes, upkeep)
• New cars (depreciate rapidly)
• Mutual funds with high expense ratios
• Timeshares

The key to building wealth is to focus on acquiring assets that generate passive income, rather than working for a paycheck or relying on capital gains from market appreciation.

4. Financial education is the key to breaking free from the system

"The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what seems to be an instant."

Traditional education focuses on preparing students for jobs, but fails to teach essential financial literacy skills. This keeps many people trapped in the rat race, working for money rather than having money work for them.

Key areas of financial education include:

• Understanding income statements and balance sheets
• The difference between good debt and bad debt
• Tax strategies used by the wealthy
• How to evaluate investments and business opportunities

By gaining financial intelligence, individuals can learn to see opportunities others miss and make better decisions with their money. This education is an ongoing process, not something that can be learned in a single course or book.

5. Gold and silver are "God's money" and a hedge against inflation

"Gold and silver will be here long after you, I, the elites, and the cockroaches are gone."

Precious metals have been used as money for thousands of years due to their inherent properties:

• Scarcity
• Durability
• Divisibility
• Portability

Unlike fiat currencies, gold and silver cannot be created out of thin air by central banks. This makes them a reliable store of value and hedge against inflation. As governments continue to print money and devalue currencies, the purchasing power of gold and silver tends to increase over time.

Owning physical gold and silver provides insurance against economic uncertainty and potential currency collapses. It's recommended to keep 10-20% of one's wealth in precious metals, stored securely outside the banking system.

6. Debt can be a powerful tool for wealth creation when used wisely

"There is good debt and bad debt. Good debt makes you rich, bad debt makes you poor."

Good debt is used to acquire income-producing assets or increase your earning potential. Examples include:

• Mortgages on rental properties
• Business loans for expansion
• Student loans for high-ROI education

Bad debt is used to finance consumption or depreciating assets. Examples include:

• Credit card balances
• Car loans
• Personal loans for vacations

The wealthy use leverage to amplify returns on investments. By borrowing at low interest rates and investing in assets that produce higher returns, they can accelerate wealth creation. However, this strategy requires financial education and discipline to manage risk effectively.

7. The coming economic crisis will reshape the global financial landscape

"Humanity is moving ever deeper into crisis—a crisis without precedent."

The current financial system is unsustainable due to:

• Excessive money printing by central banks
• Ballooning government and corporate debt
• Underfunded pension liabilities
• Growing wealth inequality

A major crisis could lead to:

• Currency devaluations or collapses
• Bank failures and bail-ins
• Stock market crashes
• Social unrest and political instability

To prepare, focus on:

• Building multiple streams of income
• Owning tangible assets like real estate and precious metals
• Developing valuable skills and relationships
• Maintaining financial flexibility and liquidity

8. Spiritual wealth and awareness are as important as financial wealth

"The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function."

True wealth encompasses more than just money. It includes:

• Physical and mental health
• Fulfilling relationships
• Personal growth and self-actualization
• Contributing to something greater than oneself

Developing awareness through practices like meditation can help:

• Reduce stress and improve decision-making
• Cultivate gratitude and contentment
• Identify limiting beliefs and overcome them
• Align actions with deeper values and purpose

Balancing material success with spiritual growth leads to a more satisfying and well-rounded life. It also provides resilience in the face of financial challenges or setbacks.

9. Real teachers come from real-world experience, not just academia

"In school, students are taught that mistakes make you stupid. In real life, making mistakes makes you richer."

Traditional education often relies on theory and memorization rather than practical application. Real teachers have:

• Firsthand experience in their field
• A track record of success (and failures to learn from)
• The ability to simplify complex concepts
• A passion for empowering others

Seek out mentors and role models who have achieved what you want to achieve. Learn from their successes and mistakes. Be willing to pay for valuable knowledge and experiences that can accelerate your growth.

Continual learning is essential in a rapidly changing world. Attend seminars, read widely, and actively apply new knowledge through real-world projects or investments.

10. Success requires shifting from employee to entrepreneur mindset

"The rich don't work for money. They make money work for them."

The traditional path of getting good grades, finding a safe job, and saving for retirement is becoming less viable as technology and globalization disrupt industries.

An entrepreneurial mindset focuses on:

• Creating value for others
• Building systems and teams
• Leveraging other people's time and money
• Continuous innovation and adaptation

To make the shift:

• Start side businesses while employed
• Invest in developing business and financial skills
• Build a network of like-minded individuals
• Take calculated risks and learn from failures

Remember, the goal is not just to accumulate money, but to create freedom and options in life. This often requires thinking differently than the majority and going against conventional wisdom.

Last updated: October 2, 2024